xt7c599z0q6k https://exploreuk.uky.edu/dips/xt7c599z0q6k/data/mets.xml Lexington, Kentucky University of Kentucky 19361423 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, 1936-14-dec23. text Minutes of the University of Kentucky Board of Trustees, 1936-14-dec23. 1936 2011 true xt7c599z0q6k section xt7c599z0q6k 










     Minutes of Meeting of Board of Trustees of the University
of Kentucky, Wednesday, December 23, 1936,


     In pursuance to a resolution passed at the regular meeting of
the Board of Trustees of the University of Kentucky December 8,
1936 (See Sec. 10, Minutes of that meeting), the Board of Trustees
of the University of Kentucky met in President McVey's office at
the University of Kentucky, Wednesday, December 23, 1936,    The
members of the Board present were, Judge Richard C. Stoll, Vice-
Chairman; J. B. Andrews, Judge John S. Cooper, H. S. Cleveland,
Judge R. G. Gordon;,Louis Hillenmeyer, R. Miller Holland, James
Park and Dr. George Wilson.   President McVey and Secretary D. H.
Peak were present.   Dean J. H. Graham was present, being asked
to sit in the meeting-during consideration of P. W. A. matters,


     1. Requisition Committee Report.

     The Requisition Committee filed written report of its action
each week from December 3, 1936, to December 16, 1936, inclusive.
The report shows that orders had been made by the Business Office
on the authority of the Requisition Committee in the manner pre-
scribed by the Board of Trustees and state laws, running from No.
3103 to No. 3316.   The report was examined, and on motion and
second the orders and budget additions named therein were ratified
and approved and payments on said orders were authorized and ap-
proved.

     The following budget additions, shown in the report, were ap-
proved: Kastle Hall, repairs, etc., $434.00; Administration Build-
ing repairs, etc., 8169.75; W. P. A. expense, $33.48; Law College,
books, etc., $158.63; Janitor's supplies, 8227.50.

     Other budget additions allowed in these Minutes:   Library,
Sabin Dictionary, etc., 405.00; Business Office, Calculator,
8405.00.


     2. Audit of Accounts

     President McVey presented a statement about audit procedure,
as follows:

     Method followed by Auditor; State requirements; methods fol-
lowed by Business Agent; and statement relative to law, prepared
by Dean Alvin E. Evans,   The statement is copied as follows:




 




2.



                          Re: The Authority of the Trustees to
                              Employ Accountants.


My dear President McVey:

     Your inquiry on the 9th inst. as to whether the 1936 Reorgan-
ization Bill passed by the legislature has taken away from the
Board of Trustees of the University the authority to select the
auditors of its accounts and has placed it in the State Finance
Division is received.

     The University of Kentucky is provided for by the constitu-
tion of the State adopted in 1891, sec. 184, according to which
the provision for the A & M College, originally made in 1863, was
carried forward.

     There is substantially no change made by the reorganization
act of 1936 respecting the government and control of' the University.
The previous provisions are apparently carried forward verbatim.

     Thus Sec. 4527-11 declares the recognition and establishment
of the University.   Sec. 4527-13 provides for its government and
control by a board of trustees and declares how the composition of
it shall be made up.   Sec. 4527-29 continues in force all prior
acts relating to the A & M College.

     Sec. 4527-18 is an important section in which it is provided
that the Board of Trustees shall be a body corporate with various
powers  such as the power to sue and be sued.1

     Especially important is the provision that the Board shall
have all the rights and privileges attaching to the governmental
bodies of Educational Institutions elsewhere (see earlier statute).
It has the power to receive, hold and administer all the revenues,
etc., and receive and apply all monies, etc.    It has the power of'
eminent domain, sec. 4527-19.   It does not seem that there is any
power reserved in the Finance Department to control its discretion
in this regard.

     This seems to mean that the Board has full discretion to make
contracts and expend University funds for educational purposes and
such other purposes as are incidental thereto.    This view is par-
tially confirmed further by sec. 4527-27, which denies to the full
Board power to reject a valid or authenticated expenditure of
money made by the executive coimnittee of the Board.



1. (just what the function of' the Division of Purchases and Public
    Property would be in the matter of approval or rejection if a
    Judgment were obtained against the University is not clear.)




 







     Sec. 4527-28 provides for a University Treasurer.    "He shall
pay out no money except on authorization of the Board of Trustees."
This clearly implies that he may pay out money on authorization
by the Board.   This act of 1934 is brought to the date of 1936
by incorporation by reference in sec. 4618-20 in the following
language:

     "The Uhiversity of Kentucky ........ with their govern-
     ing Boards ...... as heretofore constituted shall be
     included in the Department of Education but shall con-
     tinue to exercise all the functions conferred upon them
     by law in relation to their respective institutions."


                   The Reorganization Act

     Several sections of the act may be construed to affect the
University incidentally, but probably no immediate importance is
to be attached to them with reference to the present matter. Sec.
4618-89, however, Division of Purchases and Public Properties, is
the significant section in regard to the subject of this inquiry:

     "The division of purchases and public properties...
     shall purchase for the combined requirements of all
     spending agencies of the State all supplies, materials,
     and equipment except library books and scientific
     equipment, or shall control the purchase thereof."

     If it be granted at this point that the legislature intended
to take away from the Board its power otherwise apparently girant-
ed, "to apply for andon behalf of the said University all monies,
etc." it still seems that the power to employ expert accountants
does not come within the terms of this section so as to take such
power away from the Board.   Supplies, materials and equipment
have never been held to embrace such an item as services by an
individual.   A cdreful search of Words and Phrases shows no such
use by any court.    Moreover, the further language of this sec-
tion indicates that there was no intent on the part of the legis-
lature to go beyond the primary meaning of the terms here used.
The term "purchase" is not suited to an "employment" contract.
The section refers to inventories of "supplies and equipment",
to the transfer, salvage, exchange and condemnation of "supplies
and equipment".   "It shall sell all property"..... not to be
needed; fix standards of "quality and quantity"; maintain "records



2. (A legal definition of supplies has been given by the courts as
   " specified goods". It is a somewhat broader term than ma-
   terials. The term materials has been used to signify "that
   which goes into and becomes a part of a completed work, the sub-
   stance of which a thing is made."    Equipment has been defined
   to be visible, tangible items such as furniture, fixtures and
   apparatus).




 




4.



of supplies" for various classes of purchases.

      Perhaps comment should be made on the language found beginning
 in line twelve of this section.   "The division . . . may pre-
 scribe rules to govern purchasing . . . and no purchase or con-
 trag shall be binding on the state . . . unless approved by the
 division".   Bearing in mind (a) the broad powers elsewhere in
 the statutes accorded to the Board, (b) the fact that this section
 is entitled "Division of Purchases and, Public Properties" and (c)
 that this division admittedly has no authority to approve or dis-
 approve personal contracts with members of the faculty and other
 employees, it seems clear that "contract" as here used, means
 "contract of purchase" so that this section purports only to re-
 quire executed purchases and unexecuted contracts of purchase
 (contracts) to be approved.   No other use of the word contract
 would be germane to this context and no other use would be em-
 braced within the title.   "Contract" therefore means "contract
 of purchase".

      I understand that a six-fold classification of items of ex-
 pendLtures entitled "Definitions and Examples of Expenditure
 Classes" has been adopted.   This classification is., 1. Personal
 services; 2. Services other than Personal, e.g., postage, etc.;
 3. Materials and supplies; 4. Other current expenses, which class
 covers operating costs not chargeable under one of the other
 classes; 5. Capital Outlay; 6. Debt and Interest,

      I know of no way by which the state administrative officers
may add to the provisions of sec. 4618-89 so as to make any sort
of personal employment come under the terms supplies, material
and equipment.   If it does, then any employment of any person
such as a special employment for extension or other work would
also come within the terms of this section.

     Dated this 21st day of December, 1936.


                      .i Broader Principle

     It may be that a broader principle is involved which might
raise the issue whether sec. 4618-89 is applicable at all to the
University, in the event that the University has not by itd ac--
quiescence abandoned the right to raise the issue.

     On many occasions the legislature has indicated its intention
*to establish an institution with powers, privileges and rights
similar to those institutions of other states.    To discover the
extent of the Political control of the University in the premises
requires a study of the Constitution in the light of the constitu-
tional debates, and the constitutional and statutory bases of
other universities, after which the legislature purported to pat-
tern this one, and a precise study of the present practice in
those institutions.   It would then become necessary to study the
question to what extent the legislature intended to modify those




 







    provisions if at all, by this subsequent legislation.    Such
    an undertaking would require a good deal of research and
    checking.   It seems from the proviso of sec. 184 of our
    Constitution that narrow, political control was not contem-
    plated.

         I do not feel sure that a comprehensive study, involv-
    ing a great deal of time and effort, is warranted unless
    there is some prospect of raising the issue.    This is
    partly because I do not feel persuaded that the University
    ,has the constitutional support which would give it reason
    to question the acts of the legislature in this regard.
    Many of the states have a much more substantial constitu-
    tional authority placed in the board of regents than has Ken-
    tucky.   In fact, there is no mention of the method of con-
    trol of the University In the Constitution.    There is,
    therefore, considerable question whether such a study could
    prove fruitful,   If there is any reasonable prospect of
    the University raising the whole issue as to the intention
    of the legislature to include University affairs in sec.
    4618-89, such a study should be made.


      It appeared from investigations made by Chairman Stoll and
President McVey that the audits heretofore made are considered by
business concerns and accountants to be sufficient under usual
conditions, but it appeared that in many instances periodical de-
tailed audits are made.      Dean Graham corroborated this fact,
stating that the business concerns with which he had been connect-
ed made a detailed audit once in five years, considering the usual
audit sufficient in other years.    Wir. Hillenmeyer, seconded by
Doctor Wilm n, moved that the action of the Executive Committee
at the meeting of October 14, 1936, making selection of account-
ants (see Sec. 17) be rescinded, that the questions of employment
of accountant to make the audit and the character of audit to be
made be further Investigated and that the entire matter be re-
ferred to the Executive Committee with power to act.     The motion
carried.

     The chairman then appointed R. G. Gordon and James Park to
confer with governor Albert B. Chandler regarding the question
of where the authority of selection and employment of auditor
lies.   It was further ordered that the Secretary of the Board
write to Peat, Marwick, Mitchell and Company, of' Chicago, Ill.;
W. A. Hifner, Jr., of Lexington, Ky., and Humphrey Robinson and
Company, of Louisville, Ky., these being the accounting concerns
that presented the bids considered and acted on at the meeting
of October 14, 1936, calling attention to the orders of the Board,
of Trustees to rescind the action of the Executive Committee and
to reconsider the question of audit, and requesting these companies
to make new bids,   The right to make bids on the audit is ex-
tended to other accounting concerns.    The bids are to be made
on the basis of a detailed audit for the year 1935-36.     The bids
are to be made on charges per diem, together with a maximum charge.
It was further suggested that a minimum charge also be asked.




 




6.



       3. Report on Proposed Investments in State Warrants.

       The Business Agent reported as follows:

       I investigated the question of obtaining the new three per
  cent State Warrants.   The Treasurer, 11r. Buckingham, said that if
  I would leave with him the memorandum of the amount of warrants
  wanted he would be glad to purchase them for me at par as the war-
  rants are turned in after the call of January 11.

       Including the warrants called at that date and all other cash
  in the Student Loan Fund there will be about 124,000 to be invest-
  ed.   Also there are some other smaller amounts in Brent Fund and
  Waddy Fund that may be so invested if that is desired.   However,
  these funds should be made to yield a larger rate of interest, if
  possible.

       I have been informed that banks and investment companies are
  not dealing in these State Warrants because of a question of le-
  gality not yet passed on by the courts,


     On motion and second, it was ordered that investment of Student
Loan Funds and other trust funds may be made in three per cent State
Warrants.


     4. Boiler Insurance.

     The matter of Boiler Insurance was again presented on the ques-
tion as to acceptance of the new policy written to cover boilers and
all other pressure vessels at an increased cost of 8547.63 premium
for three years over the premium for a like period in the volicy
cancelled October 1, 1936, which wps written on heating boilers on-
ly,   It now appears that the renewal of the cancelled oolicy in con-
nection with the blanket policy carried by the state will cost only
$792.60 for three years, the cancelled oolicy carrying a premium of
S965.72.   President McVey was asked to confer with Dean Graham,
Superintendent Crutcher and the Business Agent, in regard to this
insurance and that they determine the proper policy to be accepted.


     5. Purchases Ordered.

     The following purchases were duly authorized on motion and
second, the budgets of the Library and the Business Office to be in-
creased accordingly:

     a. Books

     Set Sabin's Dictionary of Books Relating to America, 20 volumes,
at a cost of' $405.00 net, plus carriage.

    b. Calculator



    A calculator for use in the Business Office, cost not to exceed
S405.00,




 





7,



     6. Patterson Home Library Fund.

     President McVey reported the receipt of $400.00 from the Se-
curity Trust Company, Executor of the Estate of James K. Patter-
son, deceased, for maintenance of Patterson Library for 1936. It
was ordered that the fund be placed in Sundry Ledger account for
use according to terms of gift.


     7. Egalite-Wilson Fruit Company Claim.

     The Business Agent presented data relative to the action of
the Board of Trustees on this claim at previous meetings, and stat-
ed that he had written Mr. Leo A. Egalite on December 15, 1936,
again giving him the information that the Board considers the mat-
ter as having been closed.   No action was taken.


     8. Wages and Hours of Labor of Janitors and Firemen.

     President McVey submitted a letter from superintendent Crutch-
er, giving details as to wages and hours of labor of Janitors and
firemen.   The letter recommends an increase in wages so as to
make them comparable with what was paid before the necessary re-
duction was made a few years ago.

     The question was referred to the Executive Committee with
power to act.


     9. Printing.

     President McVey brought to the attention of the Board a com-
munication from Dean Alvin E. Evans regarding the printing of the
Kentucky Law Journal by the State Journal Company that has the con-
tract for state printing.   He made two complaints, first the de-
lay in getting work done, and second, bad printing.

     He also presented a communication from professor W. S. Webb
in regard to publication of a monograph, prepared in the Depart-
ment of Anthropology and Archaeology, asking whether or not the
printing can be let to some other concern than the State Journal
Company    Professor Webb states in detail the unsatisfactory work
done by the State Journal Printing Company on former publications
for the department.

     The Business Agent in a communication relative to Dean Evans'
complaint stated that he requests of the State Printers prompt and
satisfactory work.

     The President was asked to have Dean Evans investigate the
law on state printing, especially in so far as it relates to the
University.




 





8.



     10. Boxihng Matches at University -- State License.

     President McVey presented a communication from M. E. Potter,
head of the Department of Physical Education, regarding the ques-
tion of state license for conducting University boxing matches.
Mr. Potter asked that the Board consider the question raised in
the following letter from the State Athletic Board of Control:



                                 December 14, 1936


    University of Kentucky
    Lexington, Kentucky

                        Attention: Athletic Department

     Gentlemen:

     It has just been brought to our attention that you have
     been holding boxing and wrestling matches and charging
     ten cents to students and twenty-five cents to outsiders.
     This  is entirely against the statelaw and if this con-
     tinues, we will have to advise the authorities at Lexing-
     ton to stop all such matches.

     However, there is a clause in the law that makes it per-
     missible for the Commission to give an accredited school
     or college permission to hold these matches.   However,
     they must place a $2000.00 bond which is required by the
     laW in the form of a security or real estate bond with
     the Commission and also five per cent of the gate re-
     ceipts must be sent to the Athletic Director of the
     State as tax.

     I would suggest that if you intend to continue these
     matches, either wrestling or boxing, that you get in
     touch with me immediately.

     However, as stated above, if these matches are continued
     without the necessary requirements of the law, we will
     have to notify the authorities at Lexington to stop
     same.

     Very truly yours,

     STATE ATHLETIC BOARD OF CONTROL



Johnson S. Mattingly, Sr.




 



9.



     On motion of Mr. Hillenmeyer, seconded by Mr. Cooper, Mr.
Park and Ir. Gordon were requested to take up the question with
James W. Martin, head of the State Revenue Division.


     11. Report of Athletic Association.

     The following financial report was received and ordered copied
in the Minutes:


         ATHLETIC ASSOCIATION - UNIVERSITY OF KENTUCKY

     STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR MONTH OF
                         NOVEMBER 1936


Balance - October 31, 1936                            $21,340.60

RECEIPTS

     Football ----------------------- 820,996.34
     Football Programs ---              1,376.95
     Tax  ----------------------------      2.78
     Cold Checks Made Good --             125.77
Total Receipts -------------------------------------    22,501.84

Balance and Total Receipts ------------------------     43,842.44

DISBURSEMENTS

     Football Expense -  ------- $19,571.88
     Laundry -------------------------    365.31
     Doctors - Hospitals -------------     27.65
     Training Room -------------------    322.79
     Publicity -                           14.35
     Telephone and Telegraph --   --       37.47
     Labor      -        -        ---- 78.24
     Water ----------------------------    31.88
     Field --------------- --------       218.75
     Football Scouting ----     -   --    363.14
     Freight -------------------------      31.48
     Office Expense ------------------     54.29
     Office Equipment -----------------     9.80
     Football Programs ---------------    1,314.71
     Tax -------------------            3,249.85
     Track --     -     -----              421.63
     Tennis --------------------------    256.76
     W.P.A. --------           -   --      476.62
     Basketball --                         432.85
     Basketball Tournament -----------      23.35
     Boxing ------------------              30.31

Total Disbursements -----------------------------          33.10

                    (Continued on next page)         $16,509.34




 




10.



Insufficient Fund Checks                           -----     12.20

Net Balance ------------------------------------------ tl6,g97.14

Note - First National Bank & Trust Company  $17,975.00
       Due September 30, 1937
    Unpaid bills to date ................... I3,557,93.
    12. Domestic Allotment Act - Legislation.

    The following letter of Dean Cooper was ordered inserted in
the Minutes:


                                   December 22, 1936


     President Frank L. McVey
     University of Kentucky

     Dear President McVey:

          I have been giving a good deal of thought to the
     state legislation under the Domestic Allotment Act.

         As I understand the present situation, Governor
    Chandler indicated to you that it is also his view-
    point that congress would pass legislation deferring the
    necessity of state legislation; that he prefers not to
    include this item in the call for the special session,
    and that in the event state legislation becomes necessa-
    ry, he would arrange for a special session if essential.
    Would it not be advisable to have a written memorandum
    of this understanding perhaps somewhat as follows?

         Dear Governor Chandler:

               In accordance with our telephone conver-
         sation of Monday, December 21, 1936, regarding
         the general situation with reference to state
         legislation which, under the present congression-
         al act, would be required in order to maintain
         activities under the Soil Conservation and Domestic
         Allotment Act beginning January 1, 1938: It is
         my understanding that you consider it preferable
         not to introduce such legislation at the present
         special session, since you had many other impor-
         tant matters to deal with.   However that you
         are aware of the importance of this matter and
         if it becomes necessary you will arrange for
         a special session to consider the passage of such
         state act as may be required to insure to the
         farmers of the state the benefits of this Act.
         This as you know is one of the very important




 








1I.



          matters which confront the farmers and I am
          gratified that you are so thoroughly in sym-
          pathy with it and willing to provide for legis-
          lation when it becomes evident that it is re-
          quired.   I shall appreciate it if you will
          confirm my understanding of our telephone con-
          versation.


     It was further ordered that President McVey send a copy of
the memorandum contained in the letter to Governor Chandler.


     13. Transfer of CQC Buildings at Robinson Sub-Station.

     The President presented a communication from Dean Cooper
relative to transfer of CCC camp buildings at Robinson Station,
The communication reads:


                                    December 12, 1936

     President Frank L. McVey
     University of Kentucky

     Dear President McVey:

          The buildings of the CCC camp at Robinson Sub-
     station if transferred to us will not require a
     guardian, as we have looking after this property, 2 to
     3 men who live adjacent to the location of this camp.

          I do not know exactly what we would do with the
    buildings.   Undoubtedly we would wish to maintain some
    of them and use them for residences in place of the old
    structures which we now have.    Perhaps one of the larger
    buildings should be maintained for a sort of combination
    hall or place where groups or visitors may stay over-
    night if they wish.    Some of the other buildings will
    probably be wrecked and the material made available
    for such uses as seem most important.    The equipment,
    especially the water supply system, would be very use-
    ful to us, particularly if in future years we develop
    some activities at this location.



( Signed )



Thomas Cooper
Dean and Director




 




12.



     On motion and second, it was ordered that the offer to trarns-
fer the camp and buildings to the University of Kentucky for bene-
fit of Robinson Sub-Station be accepted, and Dean Cooper was au-
thorized to take the necessary steps in making the transfer.


     14. P. W. A. Construction - Experiment Station Annex, Docket


     a. Bond Payment

        The Business Agent reported:

          On December 1, 1936, $8,000 was paid from Experi-
     ment Station Bond Fund to the First National Bank and
     Trust Company on the $50,000 issue of bonds for con-
     struction of Annex, and interest at that time due on
     the bonds of $760.   This leaves balance due on these
     bonds up to December 1 of $30,000.


     On motion and second the payment was approved.


     b. Transfer of Funds

     Dean Cooper recommended that the following collections be
transferred to Bond Redemption Fund Experiment Station Annex:

     Collections made in July: Dairy $70.34.

     Collections made in August: Agronomy $9.90; Poultry $175.59;
Animal Industry  8108.59; Horticulture 826.75; Dairy 8903.85;
Administration $156.78.

     Collections made in September: Agronomy $76,91; Dairy
$1,036.97; Administration $155.97; Animal Industry $134.00; Poul-
try 160.44; Horticulture $12.00; Tobacco Cleaning $11.70.

     Collections made in October: Animal Industry q327.22; Dairy
$837.34; Administration $158.01; Agronomy $25.60; Poultry 8279.00.

     Collections made in November: Animal Industry t287.24; Dairy
8749.21; Administration $2,134.15; Poultry 8103.80; Horticulture
86.15.

     The totals amounting in all to :n7,947.51 were ordered trans-
ferred from the funds above indicated to the University of Ken-
tucky Experiment Station Annex Building Revenue Bond and Interest
Redemption Fund.




 





13.



     15. P. W. A. Construction - College Docket.

     a. Transfer of Funds and Payment of Interest on Bonds.

     On motion and second it was ordered that .19510.00 be set aside
from student fees from first semester 1936-1937 to meet require-
ments of the contract for sale of P. W. A. construction funds, and
that said amount be transferred to University of Kentucky Building
Revenue Bond and Interest Redemption Fund.

     It was further ordered that the amount of the interest coupons
due January 1, 1937, on the 8634,000 Building Revenue Bond, be
paid at the First National Bank and Trust Company, Lexington, Ken-
tucky, for payment of coupons as presented to that bank for collec-
tion.


     b. Current Financial Status of Docket Ky,-1013-R.


     Dean Graham submitted statement which was ordered inserted in
the Minutes.

     Letter submitting:


                                      December 22, 1936

     President Frank, L. IVloVey
     University of Kentucky

     My dear President MCVey:

          Last week we discussed the preparation of a state-
     ment indicating the current financial status and position
     of Docket No. KY.-1013-R.   in accord therewith and in
     order that the statement would comply with the auditing
     procedure of the Public Works Administration, I requested
     the State Director to give us the aid of a member of his
     staff during the preparation of the statement.    The Di-
     rector complied with this request on last Monday, Decem-
     ber 21, and I hand you herewith the results.


                               (Sig-ned)  James H. Graham
                                          Dean




 




14.



Statement:



STATUS OF DOCKET NO. KY. 1013-R
       December 22, 1036



x To be expended as follows:

  1. Pipe and fittings for connecting steam distribution system
     to heating equipment within present buildings.
 2. Purchase of apparatus and installing same within building
     for zone control of heat within buildings.
 3. Combustion control apparatus for regulating operation of
    Bros Boilers.



                     Estimate
 Classification     after           Allocated       Balance
                     Project
                     Change


1. Preliminary      $    500.00    $    463.40         3 56.60


2. Land


3. Construction      339,340.00     337,673.50      1,666.50


4. Engineering        20,360.00      16,640.00      3,720.00

                                                 q
5. Legal                 100.00         100.00



6. Interest            6,000.00                      6,000.00

7. Misc.                 200.00           43.86        156,14


     TOTAL          $366,500.00     !A354,920.76    9ll,579.24x




 






15.



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