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     Minutes of the Board of Trustees, University of Kentucky, July
19, 1946.

     The Board of Trustees of the University of Kentucky met in a
called meeting in the President's Office at 10:15 a.m., Friday, July
19, 1946.   The follo'!ing members were present:  Judge Richard C.
Stoll, Vice Chairman; Mrs. Pa'il G. Blazer, R. P. Hobson, T. H. Cut-
ler, Elliott Robertson, John Fred Williams, Harper Gatton, Robert
Tway, and Grover Creech.   President H. L. Donovan md Comptroller
Frank D. Peterson, Secretary of the Board, were also present.


    A. Called Meeting Agenda.

         Pursuant to the request of Dr. H. L. Donovan, Presi-
    dent of the University of Kentucky, I hereby call a
    special meeting of the Board of Trustees to meet in the
    office of the President at the University of Kentucky at
    ten o'clock a.m. on July 19, 1946, for the purpose of
    considering the following items:

         1. Receive and consider bids for the construc-
             tion of a Service Buildings

         2. Consider issuance of bonds for completion of
            Service Building and notice of advertisement
            for sale of bonds.

         3i Consider budget changes 1946-47 budget.

         4. Consider relief housing for faculty members and
            students.

         5, Consider federal tax on student tickets to ath-
            letic contests.

         6. Consider transfer of contracts by the University
            of Kentucky and industry for research work to the
            Kentucky Research Foundation.

         7. Consider speed limit for cars on University
            property,

         S. Reconsider location of Fine Arts Building,

         9. Appointments and other staff changes.

         10, Consider contract with Central Kentucky Natural
            Gas Company.

        11. Miscellaneous business.




 





2



       In view of the Importance of the subject matter to be
       considered, it is important that each member of the
       Board be present.

                                    Sincerely yours

                               (Signed) Simeon Willis, Chairman
                                         Board of Trustees




     B. Consideration of Bids for Construction of Service Building.

     President Donovan announced that bids for the construction of
the Service Building had been received, opened and tabulated.   He
requested the Comptroller to submit the report on the bids.

     The Comntroller stated that, in response to advertisement for
the construction of the building, three bids were received up to
10:00 a.m, Central Standard Time, on July 16, 1946.   The bids were
opened in the presence of the oublic, and are as follows:

     Struck Construction Company, Louisville, Ky. 9...$848,600.00

     Leo C. Miller, Louisville, Ky..    ,         ...... a, 889,873.00

     Whittenberg Construction Company, Louisville, Ky, 939,600.00.

     The tabulation sheet was presented, recording lump sum base
bid, unit prices and bids on alternates.   The low bid was consider-
ed and, upon the recommendation of President Donovan, the following
action was taken:
          *             4i~~~ * * * * * * X * *

          1. Upon motion duly made, seconded and carried,
             all bids are ordered rejected, because the
             low bid is too high in relation to the archi-
             teot's estimate, and President Donovan and
             Comptroller Peterson are directed to re-adver-
             tise for construction of the Service Building
             at such time as, in their judgment, is most
             favorable.



* * * * * * * * * *




 




3



      C. Renewal of Underwriters' Commitment for Bond Issue.

      At the request of President Donovan, Comptroller Peterson re-
 ported receipt of renewal of underwriterst commitment for an addi-
 tional thirty days on such bond issues as the Board might author-
 ize, up to 4g1,100,000.00, at an interest rate not to exceed 2o.

      The commitment contained an offer permitting the Board of
 Trustees to cancel the contract on written notice to the syndicate,
 If the members of the Board of Trustees so desired.   The commit-
 menrt iws accepted and ordered filed.



     D. Expenses for Conferences with Prospective Faculty Members.

     President Donovan stated that it was very necessary at times
 to bring prospective faculty members to the campus for conferences
 with various persons, and it has been exceedingly difficult to get
 the expenses, as such,.paid through the regular state procedure,
 because the prospective faculty members (re not employees of the
 State,  He recommended that the Haggin-Keeneland budget be amended
 to provide, by appropriation, a Lund for such travel expenses. The
 Board discussed the recommendatjon and took the following action:


                        * * * * * * X * * *

              2. Upon motion duly made, seconded and carried,
                 the Haggin-Keeneland budget is ordered amend-
                 ed, and the sum of $400 is ordered appropriated
                 to pay expenses of prospective faculty members
                 who are requested to come to the University
                 for conferences.
                        * * * * * * * * * *



     E. Cancellation of Contract with the University of Kentucky
Athletic Association.

     President Donovan stated that, under present arrangement with
the University of Kontucky Athletic Association, there might be a
misinterpretation as to Federal taxes, and stated that, since the
University had approval on student Federal taxes as formerly operat-
ed, he said he believed it best to void the existing contract.
He stated that he had an opinion from Professor Paul Oberst and Pro-
fessor Frank Murray, of the Law College, starting that such a pro-
cedure would avoid any misunderstanding or misinterpretation, and
recommended that contract made between the University of Kentucky
and the University of Kentucky Athletic Association, dated November
24, 1945, be cancelled.   The members considered the question in-
volved and passed the following resolution:




 





4



                        * * * * * 45 * * * *

              3, It is moved, seconded and carried that

                      WHEREAS a contract wats entered into
                 on the 24th day of November, 1945, between
                 the Board of Trustees of the University
                 of Kentucky and the University of Kentucky
                 Athletic Association which provided that
                 the Athletic Association would furnish
                 to the University student tickets to ath-
                 letic games, and, in consideration of
                 which, the University agreed to pay to the
                 Athletic Association quarterly, certain
                 sums "out of the student activity fee
                 received for this purpose, but not other-
                 wi se 11.

                      WHERE.AS no stiudent activity fee has
                 been established at the University of
                 Kentucky and it is not now desired to es-
                 tablish such a fee or to make a special
                 charge to students for the privilege of
                 attending athletic contests on the campus,
 1              in which University teams participate.

                      THEREFORE BE IT RESOLVED that by and
                 with the consent of the University of
                 Kentucky Athletic Association, the above
                 contract dated November 24, 1945, in
                 regard to student tickets and the payment
                 therefor shall be and is rescinded and
                 terminated.
                        * * * * * * * * * *


     F. Transfer of Contracts to Kentucky Research Foundation.

     President Donovan explained that the Kentucky Research Founda-
tion, a corporation existing under the laws of Kentucky, has as its
object the purpose of promoting scientific is estigations,research
and humanitarian studies, of aiding in the education and training
of persons for the conduct of such investigations, research and
studies, and the aid and maintenance of fellowships, scholarships,
etc.

     He stated that the Kentucky Research Foundation offers to
alumni of the University and to its many other friends, opportunity
to assist in the promotion of research and public service, and that
it was his desire that many of the research contracts which are
received from time to time be performed by the Kentucky Research
Foundation as is done in many other universities throughout the
country having research foundations.   He also recommended the




 








transfer of some of our existing research contracts to tie Kentucky
Research Foundation, and stated that he had requested opinions of
Professor Frank Murray; College of Lawi, and Attorney General Dummit
as to the right of the Board of Trustees to assign such contracts
to the FoundAtion.  Attorney General Dummitts opinion was read:



                    Commonwealth of Kentucky
                 OFFICE OF THE ATTORNEY GENERAL
                           Frankfort


                                         July 18, 1946

    Dr. H. L. Donovan, President,
    University of Kentucky,
    Lexington, Kentucky

    Dear Dr. Donovan:

         We have your request for an opinion as to the right
    of the Trustees of the University of Kentucky to assign
    to the Kentucky Research Foundation its rights, obligations
    and duties under certain research contracts entered into
    with different branches of the Federal Government and in-
    dustrial organizations which, according to the opinion
    of Hon. Frank Murray, Professor of Law at the University,
    consists of some six contracts.

         Under the general law of assignment of amntracts
    these contracts are assignable unless there is an express
    prohibition in the contract against assignment, or the
    contract is of such a personal nature as requires the
    personal service by the contracting party which is not
    as signable,

         Now the power of the Trustees of the University,
    Section 164.160 KRS, as a corporation it is authorized
    to receive, hold, and administer subject to conditions
    attached, revenues from endowments, appropriations1
    allotments, grants, requests, etc.   You wvill note that
    this is subject to the conditions attached.   So in an-
    sw'er to your question, if the conditions attached to these
    research contracts prohibit an assignment or are made with
    a clear undertaking that the University itself, through
    its departments, shall carry out the contracts, they
    are not assignable,

         WVe have not the contracts before us but from the
    opinion of Mr, Murray we assume that there is no prohi-
    bition against assignment nor is there such a personal
    feature of the contract as would require that the Universi-
    ty itself carry out the contract, and not through any
    other agency as by assignment,




 





6



          Predicating our opinion upon the above fcts, we
     are of the opinion that these contracts can be assigned,
     but of course, the University would not relieve itself,
     and could not relieve itself from any of the burdens or
     obligations of the contract, and the contracting parties
     such as the Government or industries making the contracts
     can look to the University for their faithful performance.
     This is recognized in the contract of assignment drawn
     and attached to M1r. Murray's opinions

          Under this contract of assignment the Kentucky Re-
     search Foundation obligates itself to hold the University
     harmless from 11 obligations and liabilities in the fu-
     ture performance of the contracts.

          The simplest solution of this matter would be to
     get the contracting parties with the University to agree
     to these assignments as no doubt the Kentucky Research
     Foundation can carry out these contracts perhaps more
     thoroughly and expeditiously than the University.   This
     w'ould simplify and prevent any future questions that may
     be raised on the legality or propriety of the assignment.

          These are our views of the matter which we will sum-
     marize by saying that the contracts are assignable unless
     there is an express provision prohibiting assignment or
     the contracts were made with the view that the University
     itself, and the University alone, carry them out.

                                 Yours very truly,

                                 (Signed) Eldon S. Dummit
                                            Attorney General.

     The members considered the recommendation of President Donovan
,and the opinion of Attorney General Dummit, and took the following
action:


                        * * * * * v * * * *

              4, Upon motion duly made, seconded and carried,
                 the following research contracts are assigned
                 to the Kentucky Research Foundation:

                      1. Contilact No. W.-33038 ac 98.36 (14193)
                         with the Army Air Corps, Wright Field,
                         dated June 9, 1945, as amended by
                         change orders dated Sept.130 1945 and
                         April 8,, 1946 and various letter
                         amendments.




 




7



                      2. Contract with the Steel Founders
                          Society of America, dated April
                          6, 1946.

                      3. Contract with Pratt & Whithey, but
                          applicable only to the separate
                          additions to and extensions of said
                          contract which are not complete at the
                          date of this assignment.

                      4. Contract with Joseph E. Seagramts,
                         dated May 16, 1946.

                      5. Contract No. WV-36-039 sc-32365 with
                         the United States Signal Corps dated
                         June 10, 1946.

                      6. Contract with the Army Air Corps,
                         Wright Field, resulting from a pro-
                         posral No4 H-46-1604/45883 dated May
                         14, 1946.

                  The assignments are authorized executed by
                  the Chairman of the Executive Committee, and
                  attested by the Secretary of the Board, in
                  accordance with the opinion of the Attorney
                  General.
                         * * * **4* * * * *


     G, Faculty Housing.

     President Donovan stated that the housing problem for staff mem-
bers was still acutes   He asked Mr. Peterson to report on what had
been done6   Mr. Peterson reported on his efforts to purchase land
to be used As a building site for development into a housing project
for the faculty memberst on purchase of apartment houses and rent
of individual houses; meeting with AAUP housing committee, and va-
rious local contractors and builders; efforts to secure federal
houses for faculty; and a variety of plans and proposals used by
other schools.   He read a communication from Dr. J. R. Schwendeman
concerning his efforts and those of Comptroller Peterson, Doctor
Dawson, and an AAUP committee to help solve the problem.



                                            July 5, 1946

    Mr. Frank D, Peterson
    Comptroller
    University of Kentucky

    Deter Mr. Peterson:

          This request for help on a prefabricated housing project
     is not proposed by the housing committee but by those of the




 




8



faculty who need housing, either for themselves directly
or for staff members they are employing aend are willing to
undertake Rs much obligation as they can afford.

     I f eel I can speak for every signa"tory to th s pro-
posal in saying that wre have no desire to embarrass the
Administration, and we understand that the Administration
many find it difficult or undesirable to approve this re-
quest,  WNe are making it because we simply have found
no other way to solve the problem.   We appreciate the ef-
fort you and President Donovan have made to help us. Per-
sonally, I know everyone understands the difficulties of
our local situation and I have heard only expressions of
appreciation for your efforts.

     I think I should add that the men who have signed
this request are doing everything possible to solve their
owtn problems.  The fact that Dr. Dawson and I personally
leased a house for A year for incoming staff and paid
$180C is proof of this.

     Dr. Dawson and I have asked for your- assistance in
financing this lease but this was done only to ascertain
to what extent and bya what procedure low rate money is
available to the average staff member in financing housing
projects.   Either Professor Dawson or myself can easily
finance our lease at six per cent And wre have Plready made
the necessary provisions if cheaper money is not available.
In the meantime wve have paid the lease from our own ac-
counts.

     May I ask your opinion in thus leasing property?
If funds were made available for leasing and some student
who knows Lexington well were employed part-time (half day)
to seek out prospects, do you think it would be a desirable
and effective endeavor? I knots I went out on a limb in
leasing the property At 544-546 East Main, but it did solve
my Department problem for housing and I now have a place
for Dr. Tuthill vwho will arrive September 1 With his family
--atife and tw~o children--and Dr. Dawson for Dr. Holley who
-ill arrive next fall,

     Mr. Peterson, I hope you and President Donovan feel
that every effort I have made in my position as Chairman
of the A.A.U.P. Housing Committee has been made to help
you in this housing emergency.

     If our present proposals do not meet with approval I
plan no further propositions but will use my position only
to pass housing information along to those in need.   The
duties of my Department will not allow further activity.

                                Cordially yours,

                              (Signed) J. R. Schwendeman




 



4



                                                                   9



    He also rend P. letter signed by 14 faculty members, submitting R
specific proposal for the, leasing of land and construction of prefab-
ric.ted houses by the University of Kentucky.


                                         July 1, 1946


   Mr. Frpnk D. Peterson
   Comptroller
   University oufL Kentucky

   Dea-r Mr. Peterson:

        zayrd we, the undersigned, request that you please submit
    the following proposal to President Donovan and the University
    Board of Trustees:

         (1) That the Administration undertake the leasing and
    development of the lot of the Trinity Methodist Church on
    South Limestone (size 4001 x 1451) as a faculty housing site,
    and construct on it fourteen prefabricated houses in order to
    provide emergency housing for the University faculty in need.

         The Reverend T. W. Beeler and the Board of the Trinity
   Methodist Church offer their lot.for lease for a period of
   not less than five years.   They request as a consideration
   that they be allowed to retain free of charge, the utility
   installations and the right of refusal to purchase the houses.
   The rental has not been decided upon.    The Reverend Beeler
   a.nd his Board have tentatively suggested R monthly rental of
   0200,00,   In view of the eventual advantage accruing to the
   Trinity Methodist Church; the undersigned feel that a monthly
   rate of $125,00 may be considered equitable.

        The undersigned have concluded that the Steelcraft Mvlanu-
   facturing Co,, Cincinnati 16, Ohio, offer the most useful
   house.   We have observed these houses at Berea College where
   14 of the two bedroom type are being erected at an estimated
   overall cost of $2500, including all utility installations.

         (2) The undersigned agree individually to:

             a) .viake an initial deposit of ten per cent of the
                overall cost of providing a house and lot.

             b) Rent from the University a house and lot at a
                monthly rate which would pay the lot rental and
                amortise in five years the balance of the over-
                all cost of the house with a reasonable service
                charge.




 





                                                                  10



            c) Take full responsibility for transfering hiS
               obligation to another person acceptable to
               the University in the event he cannot complete
               his five year contract,

            d) Take full responsibility for further disposition
               of the house after the expiration of the five
               year period ...hen the house becomes his property.

                                    Respectfully submitted;

                  (Signed)      J. R. Schwendeman
                                 Lyle R, Dawson
                                 J. R. Meadow
                                 J. V. Hendricks
                                 Harold R. Binkley, Agr.Ed;
                                 John B. Roberts
                                 WV. J. Ke('gan
                                 W. R. Walker
                                 E. T. WVightman
                                 Glenn D, Iimorrow
                                 C. Arnold Anderson
                                 J. De Boer
                                 Paul Oberst
                                 Sallie Pence.


     Comptroller Peterson recommended that President Donovan and the
Board consider assuming a lease on property at 544-546 East Main
Street, made by Doctor Schwvendeman and Doctor Dawson.  He recommend-
ed that the Haggin Fund be used to finance the obligation at an
interest rate of 3,Z   He also recommended that the Board consider
the request of the 14 faculty members if the proposition submitted
could receive legal approvals

    Members discussed the problem and recommendation and took the
following action:



               5. Upon motion duly made, seconded and carried,
                  the Comptroller is directed to assume the
                  lease on property at 544 and 546 East Main
                  Street in the sum of $1,800.00 for a period
                  of 12 months from September 1, 1946, using
                  the Haggin Fund for the investment.   The
                  Comptroller is directed to lease the apart-
                  ments to fpculty members, Dr. Tuthill and
                  Dr. Holley, at a rental that will equal the original
                  outlay of money plus 3% on same for the
                  time in use.



* * * * ** * * * 1*



4




 





11



                         * * * * * * * * * *

               6. Upon motion duly made, seconded and car-
                  ried, the request of 14 faculty members
                  is denied because the members of the Board
                  of Trustees are of the opinion that the
                  Bop.rd is without .authority to enter into
                  such an arrangement, but, If faculty mem-
                  bers will find space upon University-owned
                  land that can be approved by the Board,
                  the Board will buy and erect these houses.




     H. Lease of 246 South Limestone Property.

     Comptroller Peterson reported that Derin Sarah B. Holmes and he
had looked at a house located at 246 South Limestone belonging to
Mrs. Lavinia E. Graves.   He reported that the house consisted of
five furnished apartments varying in size from one, two and three
rooms with kitchens and bathroomsi   The property is being consider-
ed for use by a sorority, as overflow for girls from the dormitories,
and as apartments for faculty members.   He stated that the property
could be leased for an amount not to exceed $250.00 per month, plus
cost of all utilities

     The members discussed the question and took the following ac-
tion:

                         * * * ** * * * * *

               7, Upon motion duly mnde, seconded and car-
                  ried, the C6mptroller is directed to lease
                  246 South Limestone, If possession can be
                  secured by September 1, 1946, to be used
                  as apartments for faculty members. The
                  Comptroller is authorized to execute the
                  lease.



     I. Site for Fine Arts Building,

     President Donovan stated that the University had been unable
to negotiate the purchase of the land owned by the Miller heirs,
situated back of Maxwelton Court, and that it soemed desirable to
re-locate the Fine Arts Building.   He recommended that the building
be located on the west side of niose Street between Maxwell Place
and Stoll Field. The members considered the recommendation and
took the following Fction:




 




12



               8. Upon motion duly made, seconded and car-
                  ried, the proposed Fine arts Building is
                  ordered located and constructed on the
                  west side of Rose Street between Maxwell
                  Place and Stoll Field.



     J. Sale of Maxivelton Park.

     President Donovan reported that Dr. Kenneth B, Bowen, president
of the College of the Bible, requested permission to appear before
the Board.  Permission was granted, and Doctor Bowen and Mr. W. C.
Lnawwill entered the meeting.

     President Bowen explrined that it was necessary for the College
of the Bible to Expand, and that Transylvania College had its own
expansion program and could not sell the College of the Bible land
necessary for its expansion.   President Bowen further stated that
the College of the Bible and Transyrlvania College were in accord and
that the relations were of the best.   He stated that the Brother-
hood--Disciples of Christ--desired to purchase from the University
Maxwelton Parks and that the College of the Bible might acquire
other property nearby and build some very fine buildings for the
new College of the Bible.   He also stated that it was desirable to
be near the University of Kentucky so that students of the College
of the Bible could supplement their training'received in the College
by taking graduate courses in the University.   To make it possible
for the College of the Bible to locate on tlis side of Lexington,
it would be necessary to acquire .Makwelton Park and he requested
the Board, if it would sell the Sparks   to appoint a committee to
confer with representatives from the College of the Bible and arrive
at a fair purchase price for the property in question, and to report
back to the Board of Trastees or Executive Committee at a future
meeting.

     Members of' the Board of Trustees discussed the problem and asked
President Bowen and Mr. Lnwwill questions and, after due considera-
tion, took the following action:



               9. Upon motion duly made, seconded and carried,
                  a committee consisting of President Donovan,
                  Comptroller Peterson and Mr. T. H. Cutler,
                  member of the Board of Trustees, is appointed
                  to confer with the Lexington Real Estate
                  Board, appraise Max'velton Parkl Property,
                  give to the College of the Bible an option
                  on the property at the agreed purchase price,
                  and report to he Board or the Executive
                  Committee at a future meeting.
                         * * * * * * i * * *




 





13



     K. Recess for Luncheon.

     The Board recessed for luncheon at 1:00 o'clock.  Luncheon was
served in the Student Union Building, and the Board reconvened at
2200 o4clock and continued with the business on the agenda.


     L. Use of Gymnasium and Bleachers.

     President Donovan stated that many requests are received for
the use of the bleachers and the Alumni gymnasium, and it was not
possible to permit the use of the gymnasium and hold physical educa-
tion classes scheduled.   He stated that the bleachers had been lent
on some occasions and the handling, hauling, and re-erecting had
wep.kened the timbers.  He read two letters written by Mr. Bernie
Shively, Athletic Director, to Dean Leo M. Chamberlain# and Dean
Chnmberlaini8 letter of transmittal and recommendation; as follows:



                                        June
                                        Twenty-first
                                        1 9 4 6


     President H. L. Donovan
     University of Kentucky
     Lexington, Kentucky

     Dear President Donovan:

          Attached are tw7o recommendations from Mr. Shively
     relative to the use of the Gymnasium and the bleachers.

          Mr. Shively has suggested to me that these two recom-
     mendations be considered by the Executive Committee and,
     if possible, approved in order that we may have a definite
     policy to guide us.   1 too think it might be well to have
     both of these matters given the approval of the Executive
     Committee or the Board of Trustees, unless you see some
     objection to this procedure.

                                       Sincerely,

                                (Signed) Leo Ix. Chamberlain
                                          Dean of the University
                                              and Registrar.




 




14



June
Twenty-one
1 9 4 6


Dean Leo Chamberlain
University of Kentucky

Dear Dean Chamberlain:

During the past two years we have had a great many re-
quests for the use of the men's gymnasium.   I feel that
in the future all requests for this building made by or--
gInizations not connected with the University, should be
turned down.

Because of the increased enrollment, the gymnasium is used
constantly by either the Athletic Department or the Physical
Education Department.   Since the Gym Annex burned some time
agos the women's physical education classes as well as the
mend classes must meet in this one building,    In addition
to the physical education classes, intramurals take up all
the nights with intramural basketball and volleyball. This
intramu ral league is composed mostly of returned veterand
and I do not feel it is right to let outside organizations
use the gymnasium and deprive them of a place to play their
contests.   The faculty uses the gymnasium during the noon
hour for faculty volley ball, the year round.

In view of the above I am recommending that no outside
organizations be allowed to use the gymnasium.

Respectfully yours,

(Signed) Bernie A. Shively
          Athletic Director.





June
Twenty-one
1 9 4 6


Denn Leo Chamberlain
University of Kentucky

Dear Dean Chamberlain:

gre have a great many requests from organizations here in the
city atnd nearby towns for the use of our football and basket-
ball bleachers.




 





15



     Te have had these bleachers for R number of years and they
     have reached the point where they tear up very easily. At
     the present time we are bhaving these bleachers repaired at
     a great deal of expense.   I feel it would be unwise if
     ,re loan or rent these bleachers to any organization.

     I am recommending that any requests be turned down in the
     future for the use of any bleachers that we have.

     Respectfully yours,


     (Signed) Bernie A. Shively
              Athletic Director.


     TMr. Robertson stated that the State Fair Board had been seeking
temporary bleachers to be used in connection with the State Fair,
twhich would be held in Louisville in the month of September.   He
requested the use of the bleachers for this purpose, stating that he
was in accord with the recommmndption of Mr. Shively but that, since
the State Fair was a state agency, he fe