xt79319s254f https://exploreuk.uky.edu/dips/xt79319s254f/data/mets.xml Lexington, Kentucky University of Kentucky 1933096 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1933-09-oct6. text Minutes of the University of Kentucky Board of Trustees, 1933-09-oct6. 1933 2011 true xt79319s254f section xt79319s254f

Minutes of called meeting of the Board of Trustees, Universi-
ty of Kentucky, Friday, October 6, 1933.

The Board of Trustees of the University of Kentucky met in
called session in the President's office at the University of Ken-
tucky on Friday, October 6, 1933 at 10:30 a. m. The following
members were present: Governor Ruby Laffoon, Judge Richard 0,
Stoll, Louis E. Hillenmeyer, Miller Holland, G. Am Wells. J,=es
Park, Dri George Wilson, Dr. W. W. Wash, Eugene T. Flowers and E. 0.
Robinson. Meeting with the Board were Frank L. MoVey, President
of the University, and D. H. Peak, Secretary of the Board.

1. Presideit's Report.

President MoVey stated the object of the meeting and a memoran-
dum thereof was ordered to be incorporated in the minutes. copy
follows:

MEMORANDUM

ON PROPOSAL TO BORROW MOEY FROM THE FEDERAL GOVERNMENT

Under the provisions of the National Industrial Recovery Act
money can be borrowed from the Federal Government to construct built
ings and make repairs, providing such buildings and repairs are use(
for community purposes,

Conditions

The Act provides that ahe Federal Government will advance mon-
ey for construction or repairs on the basis of *385jo on the total
amount used. The institution must make applicato:on,indicating by
resolution its need and right to make such application. It must
show that the construction can be self-licuidated by the earnings
from the operations of the buildings. The steps provided in the
Act indicate the filing of resolutions, of plans, sketches of build-
ings,and indication that the earnings set forth will be sufficient
and continuous, so that payments can be made in accordance with the
conditions of the Act.

Specific Construction at the University of Kentucky

1. It is proposed under the conditions of the Act to erect:

A central heating plant, which would produce economies in
operation in sufficient amount below the present cost of operation
to meet the interest and amortization provisions.

2, It is also proposed to erect a student union building to
house student activities, cafeteria, offices for student organiza-
tions, etc, This building would be expected to earn enough to
cover the cost of its erection.- These earnings would be in the
form of rents and the operation of a store. Other institutions
find that the returns from such a building go a considerable way
in maintaining it.

3. There are some buildings on the University farm that should
be constructed, such as an abattoir, a sheep barn, green-house and
a dairy barn.

The repairs apply to certain changes that should be made in
Patterson Hall, a roof for the Gymnasium, the construction of a
band and radio room and other items of repairs.

Attitude toward Proposal

As set forth in the proposed resolution, it appears that the
contracting of this debt is not in any sense an obligation of the
State of Kentucky, nor a general obligation of the University, The
loan is arrived at by way of indenture and the indenture specifical-
ly reads that the sole security for the loan shall be the income
from the building as shown in rents, dues, etc. There is required
as evidence of the debt a bond or certificate of indebtedness by
way of indenture and the debt represented by an income bond. These
bonds upon their face disclose w~hat is back of them in security and
upon the back of the bond is stated in full the indenture,

It is required that the bond be made negotiable, therefore
it is made payable to the administrator or his assigns. In case
the building failed to produce sufficient income to take care of
the interest and sinking fund, it might be said the sole security
for the debt is the income; the government would have no recourse
in the event of the failure of income.

Charges for Construction

The Act provides that the architect may receive 4%a. An ad-
ditional 24% is allowed for supervision. The builders may receive
not more than 6% of the cost. The construction must be made, of
course, under the building code,

Attitude of state Toward Proposal

There are two questions that should be decided. The first
one relates to the legal phases of the matter and I am satisfied
that there are no difficulties in that, if I understand the propo-
sition. It might be well to secure the approval of the Attorney
General if the University enters upon this plan.

The other question to be considered is the attitude of the
people of the State toward such construction and the assumption
of a long-time debt in view of the demands for economy. Would
the University find itself in an embarrassing position if it en-
tered into such an arrangement.

2. Action Taken on N. R. A. Proposition.

The following resolution was offered by R. Miller Holland and,
upon being duly seconded, was unanimously adopted:

WHEREAS,there is dire need of certain necessary and essential
buildings at the University of Kentucky and,

WHEREAS, certain of the buildings now on the grounds of the
University are in great need of repair and,

WHEREAS, the University is without funds to so construct said
buildings or to make such repairs, and it appears that there is a
possibility of securing a loan and grant for such purposes from the
United States Government under the provisions of the National Indus'.
trial Recovery Act and,

WHEREAS, under sub-section e of Section 202 of said Act the
University of Kentucky believes that it is eligible for a loan and
grant for the purpose of erecting such buildings and making such re-
pairs,

NOW, THEREFORE, be it resolved by the Board of Trustees of the
University of Kentucky that the University apply for a loan and
grant under the provisions of the National Industrial Recovery Act
for the purpose of constructing a central heating plant, a student
union building and other buildings and structures upon the lands of
the University of Kentucky, including repairs and changes to Pat-
terson Hall, a roof for the Gymnasium and a Band and Radio Room.

BE IT FURTHER RESOLVED that the President of the University
be, and he is hereby, authorized and directed to request from the
Attorney General aef Kentucky an opinion as to whether the Universi-
ty of Kentucky has power under the law to comply with the require-
ments of the United States Government for obtaining said loan,

BE IT FURTHER RESOLVED that if in the opinion of the Attorney
General the University can so legally comply with the requirements
of the United States Government in obtaining such loan, that the
President of the University be, and he is hereby, authorized to ob-
tain from reputable architects and engineers plans, specifications
and estimates of costs of such buildings and the estimated savings
of a central heating plant over the heating plants now at the Uni-
versity, upon the condition that no charge will be paid therefor
unless the project is finally approved, the plans and specifications
so prepared are finally accepted and approved by the Board of Trus-
tees of the University of Kentucky, the loan obtained and the re-
spective structures for which plans and specifications are so

drawn are actually constructed, in which event the President is
authorized to agree with such architect, or architects, engineer,
or engineers, that the person whose plans and specifications are
so selected shall be employed by the University as its architect
or engineer for such particular structure.

3' Lease to CCC Co.547: Robinson Experiment Sub-Station,

On motion and second which carried unanimously the Chairman,
Governor Ruby Laffoon, was authorized to sign an informal lease
to CCC, Co. 547; which lease is in words and figures as follows:

INFORMAL LEASE

Lexington. Kentucky
(Place)

September 23, 1933

The undersigned hereby agree to allow the use of
premises a camp site on real estate of University of Ken-
tucky in Breathitt County, Ky., located about 41- miles
from mouth of Buckhorn Creek. Said site beginning 499
ft S. 89 degrees Es from junction of Breathitt County
Doscript ion
road and Clemons Fork of said Buckhorn Creek and extend-
in; in an easterl direction 1000t, Said camp site
of premises
is bounded on south by said. Buckhorn Creek and on north
by county road.-
by CcC Co. 547 at a rental of $00.50
(Designation of detachment)
per month, or proportionate part thereof for the time
of occupancy, From June 6, 1933 to June 30, 1933, in-
clusive.

UNIVERSITY OF KENTUCKY
(Signed by) Ruby Laffoon, Chairman, Board of
Trustees
(Signature of Property Owner)

I certify that I have this date entered into an
informal agreement with University of Kentucky covering
(Name of Property Owner)
rental of a camp site for acC Co. 547 located on real es-
tate of University of Kentucky in Breathitt County, Ky.,
located about 4A miles from mouth of Buckhorn Creek. Said
site be ininR 499 ft. S. 89 degrees E. from junction of
(Description
Breathitt County road and Clemons fork of said Buckhorn
Creek extending in easterly direction 1000 ft, Said camp
site being bounded on south by Buckhorn Creek and on north
of premises)
by country road. Same being reouired and absolutely neces-
sary for the successful operation of my detachment,

Fred J Barden
(Name)

Lieut. U. S. Ne
Commanding Co. 547 ccC
(Rank and Organization)
Sept, 23, .933

The Chkirman thereupon signed four copies of the lease in the
presence of the Board members and copy was ordered inserted in the
minutes.

4^ Coal Hauling

The following statement as to delivery of coal from cars to
bins on University grounds was made by Superintendent Crutcher:

Memo To: President F. L. McVey.

Re:- Coal Drayage.

The best bid we can get on hauling coal from Universi-
ty siding to our bins is fifty-five (,55), cents per ton, if
loaded by hand, and forty-five, (.45), cents if loaded by
conveyor, The highest bid ran seventy-five, (.75), cents
per ton for hand loading. We burned 3,600 tons last year
and on that basis the low bid on hauling will cost $1.,980.00
or $1,630.00,depending on which way we take it.

There is a Question in my mind about the ultimate suc-
cess and satisfaction of such an arrangement with itinerant
truck men using worn-out ramshackle equipment. Thoy are
the only ones,it seems,who are willing to take it on the
chance of making wages, It will be necessary to do a
large amount of night hauling to save demurrage charges. In
that case we will be forced to supply a checker and extra
labor to pull coal back in bins, If we fail to chect we

stand a good chance of losing coal before the season is
over. As long as thelauling is going to cost us $2,000.00,
I would like to recommend that we equip ourselves to do the
job, assume control of deliveries, and take full responsi.-
bility for the whole thing with our own labor and equipment.

The University needs a new and larger truck for gen-
eral freight deliveries. The one now in use is four, (4),
years old and is too small for the work it is called on to
do, Too many trips are reauired which means waste of time,
gasolene, and oil. if we could purchase a new truck to re-
place the old one, a dump body could be placed on the lat-
ter ready for use along with our two, (2), one-ton Fords
and the Yellow Knight. We already have the labor employ-
ed.

The outlay would be as follows:

1 New 1-1/2 ton truck ................. $ 865.00
1 Car Unloaded 300,00
1 Steel Dump Body (used) ..25,00

Total $1,190.00

The conveyor can be used for years to come for unt-
loading sand and rock from cars; dirt and other loose
materials on the grounds, This conveyor could also be
used in connection with a Central Heating Plant.

We hauled 300 tons of coal last year and a close
check showed it cost us about thirty-eight, (.38), cents
per ton to do it. I alt convinced after this experience
that the University would be money ahead at the end of
the year if it would equip itself to do the whole job and
not have to depend on uncertain outside help for such an
important undertaking,

The following list of bids on hauling is, shown for
your information;

Name Hand Loaded Conveyor

H. H, Davis .55 per to~i P45 per ton

Jean Chapman .,70 -.55 It .50 per ton

Arnold Bryson ,75 .50 per ton

Dept. Bldgs. & Grnds. .40 .30 per ton

Yours very truly,

C:JT (Signed) M, J. Crutcher
C:JT ~~~~~~~Supt.

On motion and second the purchase of a truck and a conveyor
was authorized. It was expressly stipulated that the purchase of
a truck be made at the lowest possible price and that a used truck
be purchased, if possible.

5. Appointments and Other Staff Changes,

Appointments

Miss Cynthia H. Smith, secretary in the Department of Physics,
beginning October 1, 1933, salary $70.00 per month.

A.Morley Harris, assistant county agent, effective September
28 to November 30, salary to be paid from Federal Supplementary
funds at the rate of $720.00 per year,

Resignations

Miss Dorothy Rominger, secretary in the Department of Physics,
effective September 30, 1933.

Leave of Absence

Forrest R. Black, professor in College of Law, was granted
sabbatical leave for year 1934-1935 on half pay, He expects to
do research work in Washington, D. 0.

On motion the Board adjourned.

D. H. Peak
Secretary, Board of Trustee