xt7d513ttw65 https://exploreuk.uky.edu/dips/xt7d513ttw65/data/mets.xml Lexington, Kentucky University of Kentucky 1936138 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, 1936-13-dec8. text Minutes of the University of Kentucky Board of Trustees, 1936-13-dec8. 1936 2011 true xt7d513ttw65 section xt7d513ttw65 





     Minutes of the Regular Meeting of the Board of Trustees of the
University of Kentucky, Tuesday, December 8, 1936.


     The Board of Trustees of the University of Kentucky net in
President McVey's office at the University December 8, 1936, at
10:30 a.m., this being the regular December meeting.   The members
of the Board present were Governor A. B. Chandler, Judge Richard
C. Stoll, James Park, Louis Hillenmeyer, J. B. Andrews, John Coop-
er, G. C. Wells, R. G. Gordon, H. S. Cleveland, Dr. George Wilson
and J. C. Newcomb.   President F. L. McVey and Secretary D. H.
Peak were present.


     1. Minutes Approved.

     The minutes of the following meetings were approved as pub-
lished: Regular Meeting of the Board of Trustees, September 23,
1936; Executive Committee Meeting, October 14, 1936; Executive
Committee Meeting, November 7, 1936.


     2. President's Report.

     The President made his regular quarterly report which was
ordered to be recorded in the Minutes.   The report is in words
and figures as follows:


     QUARTERLY REPORT OF THE PRESIDENT TO THE BOARD OF TRUSTEES
                         December 8, 1936


                    I. POLICY OF THE UNIVERSITY

     From time to time questions have arisen relative to the Dol-
icy of the University -- has it, in fact, any policy at all? Neces-
sarily, a going concern, though it may not have an immediate goal,
must be directed by a policy, if it be nothing more than meeting
the problems that adse from day to day.   The University of Ken-
tucky, however, has had rather definite purposes that may be spok-
en of as a policy.

     The first of these purposes has been to maintain colleges and
a university organization on a high educational level.    The goal
of the colleges has been to give instruction thru effective teach-
ing and the use of modern methods, seen in collateral reading and
satisfactory laboratory procedure.   The University has attempted
to maintain professional schools and graduate work on a high level.
In order to bring this about departments have been strengthened
by additions to staff, the purchase of books ard the acquirement
of equipment.   Without doubt, this purpose has been limited by
income available for expenditure, but the history of some years
indicates clearly the definite purpose of strengthening depart-
ments to emphasize graduate work.

     Today it may be said that one of the things that should be




 




2.



done is to coordinate some of the departments, bringing them togeth-
er so that the lines of demarcation may not limit the purpose and
work of a department,   On this point it may be said that a good
deal of thought has been given to the matter but no specific step
taken, other than a better understanding between departments as to
the work which they are doing.

     The second purpose in the policy of the University has been to
encourage scholarship and research.   This is indicated in the
grant of leaves of absence from time to time, and In giving time
for study and research to those who have indicated their desire to
carry on some scholarly piece of investigation.   The University
has made grants for stenographic help, has provided additional
equipment with which research may be carried on, and in a number of
instances it has paid the expense of publication.   It is true
that the amount of money available for grants and equipment has not
been large, but the purpose has been there and the policy quite
definitely defined.

     It has been felt that the University of Kentucky ought
not to enter all the different fields of work, particularly in the
case of graduate instruction,   More courses are open to students
who are pursuing the Mlaster of Arts degree than in the case of
those who wish to do work in the fields offering the degree of Doc-
tor of Philosophy.   At the present time, eight departments have
indicated their purpose to offer courses leading to this degree.
These departments are Chemistry, Education, Mathematics, Physics,
History, Political Science, Economics and Psychology.

     A further policy of the University has been to provide hous-
ing facilities for the departments and to equip them with the
necessary materials, supplies and instruments.    The present build-
ing program does not definitely move in that direction, and it is
to be doubted whether the University will ever be able to meet all
the demands in this direction, since it is growing rapidly both
in numbers and the demands made upon the University for instruc-
tion.

     For many years the University suffered for lack of library
facilities.   Finally, out of savings made under the inheritance
tax law it was possible to erect a library building.    In twenty
years' time the number of volumes in the library has grown from
22,000 to 192,000,   This is a satisfactory growth, as measured
by numbers, but the University has been unable to purchase cur-
rent books, back numbers of periodicals, and foundation books to
the degree that it should.   The hope is that a much larger sum
may be spent annually for the purchase of books,    The Board of
Trustees has distinctly in mind that this part of the University
equipment must be expanded.

     Another policy of the University has been to enlarge and
strengthen the State services, as represented in the Agricultural
Experiment Station, the Division of Agricultural Extension, the
research bureaus, and the Department of University Extension,
Much success has been attained in these fields.    The demands that
come grow with the reputation and standing of the University, and




 




3.



It may be said that the University may look for an increase in re-
quests for work to be done by these services,

      Some years ago by order of the Board of Trustees, a series of
 monographs was set up for the purpose of publishing papers on the
 research and investigation carried on by members of the University
 staff.  The earlier series, that of th- social sciences, publish-
 ed four numbers.  The later series in the field of anthropology
 and archaeology has brought out a number of important findings in
 the State ar.d given a good deal of reputation to the Department
 for the work done.   The first series was interrupted by a lack of
 funds to carry it on, and the second series had an unsatisfactory
 printing of plates.   There was also a periodical called LETTERS,
 published by the University in addition to other publications.
 This periodical ran successfully for four years, but was discontin-
 ued due to a reduction in income.   The value of these publications
 has been fully recognized by the Board of Trustees, and no doubt
 when funds are available the publication of both monographs and
 periodicals will be continued.   Fortunately, the publications of
 the Experiment Station and Division of Agricultural Extension pro-
 vided for by federal funds have been published without interruption
 due to the general income situation.

     Along with the policies so far set forth has gone a definite
idea about courses of study and student performance in them.  The
study of these courses has not been carried along in a specific
organization, but studies have been made in different colleges,
and particularly in the office of the Registrar,   Just now two
experiments are being tried:   One in the College of Arts and Sci-
ences, where a supervisor has been provided to aid and assist
students who have fallen behind in their work.   The direction
provided has been helpful, but perhaps has not been extensive
enough.  In the College of Engineering freshman students who are
not keeping up with their work have been placed under tutors se-
lected from the senior class.   The results of this plan have been
very heartening.

     Finally, it may be said that the University has set up a meth-
od of government recognized in the direction of business and finan-
cial matters by the Board of Trustees, and the conduct of educa-
tional affairs by the Senate and administrative officers.   What-
ever may be said of administrative direction at the University of
Kentucky, there are facilities by which members of the staff may
express themselves about University policy, and it is my impression
after many years of service, that this is the feeling of the Board
of Trustees about the government of' the University.


                         II. BUILDING PROGRAIMI

     As you are aware, the University has entered upon a consid-
erable building program made possible through a federal grant and
the issuance of bonds.   This program has now started, and the
heatin- plant and Engineering buildings are well under way,    In
describing the situation I think I can do no better than to in-
clude in. this part of iwy report a letter from Dean Graham addressed




 



4.



to me under date of December 8.


                                    December 8, 1936

     President Frank L. McVey
     University of Kentucky

     My dear president McVey:

         You will recall that last January when the loan funds
    were assured in the sum of 9600,000, we set aside P201,O00
    of these funds to match the grant funds of P. W. A. in the
    sum of $165,000, thereby establishing Docket No. KY-1013-
    R for a total of 8366,000, thus leaving 8400,000 free and
    clear for future developments.   Also that we proposed to
    endeavor to design and to construct within this docket
    of $366,000 the Central Heating Plant complete, including
    the steam distribution system, the South Engineering Build-
    ing and the East Engineering Building.   With 90% of this
    program now under contract and with the remaining careful-
    ly listed and priced, we estimate that the total final
    cost of this program will be within a margin of one per
    cent of the sum of the docket for $8366,000,

         The present state of the construction under this
     Docket No. KY.-1013-R is as follows:

         1. The construction of the Steam Distribution System
     (Meyer contract) of the Central Heating Plant is complete.
     We are holding 5% of the contract price pending the making
     of a few adjustments.   Parts of this system are now in
     use in the distribution of steam.

          2. The concrete foundations for boilers and boiler-
    house and the structural steel for same are now in place,
    the boilers and stokers have been received and are in
    process of erection, -- and the forms for the concrete
    roofing are in place for pouring the roof of the pump-
    house.

         3. The South Engineering Building is now 90% complete
    and we believe it will be ready for use during the Christ-
    mas holidays.

         4. The brick work on the East Engineering Building
    lacks eight working days of being finished.    If the
    weather permits this brick work to be done within the
    next three weeks, then the building can be ready for ser-
    vice by the beginning of the nest semester.

         Under the new Docket No. KY-1013-2-D, the plans and
    specifications for the Law Building, together with contract
    documents, have been approved by the State Director P.W,A.




 




                               5.


     and the building has been advertised for contract bids
     to be received and opened in the office of the President
     on December 21 -- the building plans and specifications
     for the Student Union Building are practically complete,
     and we hope to have the approval of the State Director
     upon these before the end of December.  The planning"
     of the remaining buildings is progressing satisfactorily.

                              (Signed) James H.. Graham



                 III. DISTRIBUTION OF SPACE

     With the construction of new buildings and the moving of de-
partments into them, space will be available for other departments.
The University up to now has used every available room for instruc-
tion and other purposes.   Thus the basements of all buildings are
in use at the present time.   Even with that, departments are crowd-
ed, and some of them are in very unsatisfactory situations.   Per-
haps the ones that are the most inconvenienced are the Departments
of Art, Music and Bacteriology.   As said above, the construction
of buildings means the readjustment of space.   A great many appli-
cations have been received, and a great many suggestions made con-
cerning space that will be available.   It will be the purpose of
the deans and the President to use this space to the best advantage
of all concerned.   Whatever is done will require repairs and some
reconstruction to buildings.   Additional expenditures will be
necessary, and these needs will raise the question of appropria-
tions to cover them.   At this time I have no specific amounts in
mind.


                 IV. RECREATION FACILITIES

     The University now has 3,500 students in residence.   Recrea-
tion facilities for this large group are by no means as extensive
as they should be.   The grading and preparation of the grounds
around the College of Education will provide land for the activi-
ties of the Associated Schools, but the Department of Physical Ed-
ucation Is shut out of the general athletic fields and has been
compelled to rely upon the area in front of the Administration
Building and on the field east of the present gymnasium.   This
last space will probably be lost to the Department when the Student
Union Building is Erected.  Rather soon the University will have to
move over to Rose Street for additional recreational facilities,
This mtter has been discussed with Dean Cooper, and though no par-
ticular difficulty stands in the way of extending University facil-
ities in that direction, there must be a definite understanding
about it.   I hope to have some suggestion to make during the year.




 



6,



                     V. ATHLETIC SITUATION


     The University of Kentucky in the matter of' intercollegiate
athletics belongs to what is called the Southeastern Conference.
This conference is composed of a number of the larger institutions
of the South.   In it are excellent football and other athletic
teams that attract national attention.   The University of Kentucky,
on the periphery of the Conference with a much colder climate than
other members, has considerable difficulty in keeping up its
status and its place.   This conference has adopted a rather frank
policy for the subsidizing of athletes.   It maintains that ath-
letes may receive scholarships, provided that they are administered
by the institution.   In this competition the University of Kentucky
has given support in the form of board, room, tuition and books to
some members of the team, but it has not made payments of cash,
and I am of the opinion that no institution should do that.    The
expense of maintaining the situation has reached a considerable
sum.   While the Council on Athletics has been able to carry on with
much difficulty, the situation has improved this year.   How far
the competition for athletes will go in the securing of players
remains to be seen, and if it does go to the limits of competition,
I raise the question as to how the University can meet it, and
whether in the long run it Is advisable to try to keep up the compe-
tition,


     3. Financial Reports

     Financial Reports for October and November were submitted by
the Business Agent.   The reports were examined and the Report for
November (the reports being cumulative) was ordered inserted in the
Minutes.

                Statement of Income and Expenditures
                       Month of November 1936



Previously
Reported



Current
Month



Fiscal
Year
to Date



General Fund Income
Federal Appro.-Morrill-
  Nelson
Vocational Ed. Board
State Appro.-Sum. School
Special Agr. Appro,
State Appro.-General
Int, on Peabody Endow.
Int. on Endowment Bonds
State Appro.-Repairs to
   Buildings
Federal Appro.-Bankhead-
   Jones
Student Fees



  4,750.00
  4,6S9,46
  8,000.00
  6,472.43
196,788.21
  1,000.00
  11,720.80

  3,508.56

  2,981.64
100,421.82



4,750.00
2,043,80

2,472.43
73,665.75

1,131.48

    93.5,

 2,981.64
 6,940.03



  9,500.00
  6,743.26
  6,000.00
  8,944.86
270,453.96
  1,000.00
  12,852.37

  3,602.15

  5,963.28
107,361. 85




 





7.



  Student Fees -El.Tr.Sch.
  Student Fees - Sum.Sch.
  Student Fees - UHS
  Student Fees - U.Exten.
  Miscellaneous Receipts
  Rentals
  Men's Dormitories
              Total

Expenditures
  Instruction
  Adm.,Exp. & Maintenance
  Additions & Betterments
              Total
  Excess of Income over
    Expenditures

Patterson Hall Income
  Board
  Misc. Receipts
  Room Rent - Sum, Sch.
             Total



  3,960.00
  55,683.59
  3,930.00
  6,218.61
  2,061.13
    605.00
  ,164.73
421,966.07


240,890,68
77,918.78
  4,113.73
322,923.19

99,042.88



14,378.40
   182.25
 3,098.10
 17,658.75



2,



100.00    4,2i5 00
         55,6 3.59
285.00    4,215.00
017.00    8,235.61
330.62    2,391,75
455.00    1,060.00
753.60    9,918.33



98,019.94 519,986.01


72,446.53 313,337.21
20,451.95  98,370.73
~2146.99   6,260.72
95,045.47 417,968.66

  2,974.47 102,017.35


  12,548.80  26,927.20
               182.25
             3,028.10
 -12,548.80 30,207 55_



Expenditures
  Expense
  Additions & Betterments
             Total



  Excess of Income over Ex-
     penditures

General Fund Income
General Fund Expend.
  Excess of General Fund
    Income over Expend.
  Excess of Expend' over
    Receipts for General
    Ledger adcounts
  Excess of Receipts over
    Expend, for the fiscal
    year to date - Genieral
    Fund
  Excess of Receipts over
    Expend. for the fiscal
    year to date - General



  9,254.83       10,305.19  19,560.02

43S,624.82      110,568.74 550,193,56
331,327.11       97,289.08 428,616.19



108,297.71


(68,148.71)



40,149.00



13,279.66 121,577.37


(8,049.84)(76,198.55)



5,229.82  45,378,82



  Fund
Cash in Bank July 1, 1936
  General Fund
Cash in Bank November 30,
  1936 - General Fund



8,403.92

8,403.92



2,162.49
   81.12
2,243.61



10,566,41
    81,12
10,647.53



45,378.82

52,785. 93



98,164,75




 



8.



Experiment Station Income
Hatch - Federal Appro.    3,750.00
  Milk and Butter - Cash
  Rec.                    3,198.01
  Beef Cattle Sales           229.83
  Dairy Cattle Sales          120.66
  Sheep Sales                 307.44
  Swine Sales                 572.80
  Poultry Sales             1,369.50
  Farm Produce Sales          436.28
  Horticultural Sales          76.40
  Seed Test                   231.30
  Seed Inspection           7,538.20
  Rentals                     589.68
  Miscellaneous             2,047.46
  Fertilizer - Fees         9,018.25
  Public Service - St.Ap.   6,949,48
  Public Service - Misc.       75.00
  Feeding Stuffs - Fees    24,133.47
  Adams - Fed. Ap.          3,750.00
  Serum - Sales               616.38
  Serum - Virus Sales          32.30
  Serum - Live Stock Sales     31.57
  Serum   Supply Sales         35.14
  State Appro.             15,289.42
  Creamery - License Fees   7,993,50
  Creamery - Testers Lic.   2,718.50
  Creamery - Glassware Test.  393.32
  Robinson - State Appro.   4,365.78
  Robinson - hisc. Rec.     1,145,52
  West Ky. - State Appro.   4,554.04
  West Ky., Misc. Receipts  6,466.40
  Purnell - Fed. Appro.    15,000.00
  Bankhead-Jotes - Fed.
    Appro.                 9,867.25
 Nursery Inspection - St.
    Appro.                   666.66
 Nursery Inspection - Fees 1,090,00
            Total        134,659.54



3,750.00

1,173.62

  144.67

  820.60
  200.93

    6.15
  142.45
  319.78
2,119.67
   14.48
   731.25
1,599.98
   40.00
5,090.35
3,750.00
  214.57
  10.80

  10.00
4,142.33
   115.04
   132.00
   13.22
1,766.84
  269.08
  1,193.41
  1,128.19
15,000.00

9,867.25

   166.66
   190.00
54,123.32



7,500.00

4,371.63
   229.83
   265.33
   307.44
 1,393.40
 1,570.43
   436.28
   82.55
   373.75
 7,857.98
 2,709.35
 2,061.94
 9,749.50
 8,549.46
   115.00
29,223.82
7,500,00
   830.95
   43.10
   31.57
   45.14
19,431.75
8,108.54
2,850.50
   406.54
 6,132.62
 1,414.60
 5,747.45
 7,594.59
 30,000.00

 19,734.50

   833.32
 1,280.00
188,782.86



Expenditures
  Expense
  Additions & Better.
              Total
 Excess of Income over
    Expenditures
 Excess of Receipts over
   Expend, for General
   Ledger accounts
 Excess of Receipts over
    Expend.



111,078,89
  2,894.86


20,685. 8O


   (847.48)

 _1 ,838 *32



Excess of Receipts over
  Expend, for the fiscal
  year to date - Exper, Sta.
Cash in Bank July 1, 1936 - Exp.Sta.



42,245.89
   495.52
42,741.41

11,381. 91


8,235.12



19,617.03



Cash in Bank Nov. 30, 1936 - Exp. Sta.



153,324.78
31390.37
156,715. 15

32,067.71


7,387. 64



39,455.35



39,455.35
(7,585.30)
31.870.05




 





9.



Extension Division Income
  Federal Bankhead-Jones
  Federal Smith-Lever
  Federal Add. Co-.op.
  Federal Supplementary
  Federal Capper-Ketcham
  State Smith-Lever
  County and Other
             Total

Expenditures
  Expense

  Excess of Income over Ex-
    penditures



164,145.15
74,154.38
  6,250.00
  19, 09.14
18,400.49
37,862.81
  6,536.42



         164,145.15
         74,154.38
           6.250.00
           19,909.14
           18,400.49
9,278.09  47,140.90
2,732.04   9,268.46



327 258.39     12,010.13 339 268.52


215,620.51     58,866.89 274,487.40


111,637.88    (46,856.76) 64,781.12
                       - ---_



Excess of Income over Expendi-
  tures for the fiscal year to
  date - Extension Division
Cash in Bank July 1, 1936 -
Extension Division
Cash in Bank November 30, 1936
- Extension Division



64,781.12

48,500.09



Trust Fund Income
  Student Loan Fund
  Student Notes Paid
            Total Receipts

Expenditures
  Expense
  Student Notes
  General Ledger accounts
     Total Expenditures



1,496.30
1,486.68



299.18
431.62



1,795.48
1,918.30



2 982.98        730.80   3,713.78


    9.00          9.00      18.00
  72.75         50.00     122.75
8,000.00                 8,000.00
8,081.75         59.00   8,140.75



Excess of Expenditures over
  Receipts



(8,098.77)



671.80 (4.426.97)



Evess of Expend. over Receipts
  for the fiscal year to date
  -- Trust Fund
Cash in Bank July 1, 1936 -
  Trust Fund
Cash in Bank Nov. 30, 1936 - Trust Fund



Summary
General Fund Income
Exp. Station Income
Exten. Div. Income
Trust Fund Income
               Tot al



439,624.82
134,659. 54
327,258.39
  1,496.30
9(3_,039.05



110,568.74 550,193.56
54,123.32 188,782,86
12,010.13 339,268.52
    299.18    1,795.48
177,001.371 ,080,040.42



97,289.08  428,616.19



(4X426.97)

7, 47275
3,045.78



113,281.21



General Fund Expend.



331,327,11l




 




10.



Exper. Sta. Expend,
Exten. Div. Expend.
Trust Fund Expend.
            Total



113,973.74
215,620.51
      9.00



660.930.36



42,741.41
58,866.89
      9.00
198,906,38



156,715.15
274,482.40
     18.00
859,836.74



Excess of Income over
Expenditures



242,108.69



220,203.68



Excess. of Expend. over
Receipts for General
Ledger accounts      (76,996.19)



Student Loan Fund Notes 1,413.93



185.28    (76,810.91)



381.62      1,795.55



Excess of Receipts over
Expend. for the fiscal
year to date - Combined
Fund                 166,526.43

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund
Cash in Bank and on hand July
1, 1936 - Combined Fund
Cash in Bank and on hand November
30, 1936 - Combined Fund



(21.338.11)



145,188.32



145,188,32

103,373.47



248,561.79



Abstract of item shown on State-
ment of Income and Expenditures
as "Excess of Expenditures over
Receipts for General Ledger account
$76,810,91,|1



Accounts Receivable

Sundry accounts

Insurance Paid in
     Advance



  Debit

82,056.48



Credit



5,259.07



13.50



82,069.98
,, 5,259.07
76,810.91



5,259.07



(21,905.01)




 




11.



    4. Requisition Committee Report.

    a. The Requisition Committee filed written report of its
action each week from November 4, 1.936, to December 2, 1936, in-
clusive.   The report shows that orders had been made by the
Business Office on the authority of the Requisition Committee in
the manner prescribed by the Board of Trustees and state laws,
running from No. 2333 to No. 2981.   The report was examined, and
on motion and second. the orders and budget additions named there-
in were ratified and approved and payments on said orders were
authorized and approved.

    b. Budget Additions.

    Neville Hall Repairs, $242.00; Civil and Physics Building,
$600.00; Department of I.Iusic, i245.00.

    Other budget additions allowed at this meeting: Repairs to
Main Building, $101.00 (Sec. 14) purchase of land, Robinson Sub-
Station, approximately $5275.00 (Sec. 15); salary Placement Bureau,
120. 00; and salary, College of Education, stenographer, $60.00,
Sec. 17).

    5. Allotments.

    Statement of Business Agent:

         I asked Mr. F. D. Peterson of the Division of
    Accounts and Control to set up additional allottments
    to the various University appropriations so that the
    total will amount to fifty per cent for the first
    six months.   I felt it necessary to do this in your
    absence in order that we might be assured of funds
    enough in these appropriations to take care of Decem-
    ber pay rolls and expense.   I have not yet had an
    answer from Mr. Peterson.

    6. Bills Presented.

    a. Dental Bill -- Injury to Student.

    President MoVey presented a letter of student, Russell Bram-
lage, asking that a dental bill be paid by the University. While
in training in a Physical Education class, Idr. Bramlage's tooth
was broken by accident.   No action was tlaken by the Board as the
University does not assume responsibility in such cases. President
McVey was requested to communicate with the student.

    b. Egalite-Wilson Trust Company Bill.

    President MoVey presented a letter signed IEgalite Fruit Com-
pany, Leo A. Egalite", regarding balance of $492.24 claimed to
be owing to the Egalite Wilson Fruit Company in purchase purport-
ed to have been made by Dean F. Paul Anderson, presumably to be
paid for from the Johnston Solar Laboratory Fund.    For action
on this claim reference is made to the Minutes of May, July,




 




12.



September and October, 1934.   Mr. Peak stated that the accounts
of this firm are in the hands of a receiver, assignment for
benefit of creditors having been made.

    No further action was taken, but President MoVey ::1S authorized
to write Mr. Egalite, stating action of Board heretofore taken
relative to this claim,

    c. Bill Approved.

    The following bill for dues, Association of Land-Grant Colleges
and Universities, was approved and ordered put in line for payment:

                                      Lexington, Ky.
                                      December 5, 1936

    University of Kentucky
    Lexington, Ky.

         To Association of Land-Grant Colleges and Uni-
    versities, Dr. To dues for year 1937, as per vote of
    Houston Convention, November 1936 -$150.00

         Make checks payable to
         Thomas Cooper, Treas.
           Lexington, Ky.

    7. State Warrants Called.

    Report by Custodians of Securities:

    The State Treasurer has called the following warrants held by
the University:

    Warrant F-7619, $1897.26, calied for payment November 18,
1936, Patterson Student Loan Fund.

    Warrant E-4819, $969.90, called for payment November 18, 1936,
Patterson Student Loan Fund.

    8. Hoflick Case -- Result of Trial,

    Report of Business Agent:

         The case of Hoflick against the University of
   Kentucky was called for trial. on the 19th of November
   and Assistant Attorney General J. W. Jones called me
   in your absence and asked me to sit in court with him
   during the trial of the case.   This I did.   After
   the plaintiff's witnesses had been examined, counsel
   for the University asked for preemptory instructions
   and Judge Swope being advised, instructed the jury
   to find for the defendant the University not being
   liable for tort.   The jury returned the following
   verdict:




 





13.



              "We, the jury, find for the defendant
              Signed, D. B. Midkiff, foreman."

          The court then dismissed the case and gave judgment
     to the defendant for costs.

          Mr. James Parks then stated that a motion for new trial
     madc later ra's over-ruled.

     9. Boiler Insurance.

     The Business Agent presented a policy for insurance on Uni-
versity boilers written as of October 1, 1936 (at which date the
policy held by the University in the same company was cancelled)
in Hartford Steam Boiler Inspection and Insurance Company. The
policy was accompanied by a bill of the Agency, Woodall & Melton,
Paducah, Ky., that wrote the policy, premium $1513.35 for period
of three years, less $270.87, credit on policy cancelled.    The
premium on policy cancelled, for three years, was $965.72, making
an increase in premium of $547.63.   The premium increase appears
to be due to hot water heaters and hot water storage tanks not
included in the cancelled policy, and not heretofore thought
necessary to be insured.   The Business Agent stated that he had
discussed the policy with Mr. M. C. Howard, State Director of
Purchases, and that the latter said that it was not his intention
to have the new policy cover more than the old one covered, at in-
creased cost.

     The President, the Superintendent of Buildings and Grounds,
and the Business Agent were directed to take up the matter with
the State Director of Purchases and endeavor to have adjusted or
cancelled the unnecessary and unsatisfactory coverage in the new
policy.


     10. Audit of Business Office Accounts.

     President McVey stated that at the October 14, 1936 meeting
of the Executive Committee, an order was entered (Sec. 7S accept-
ing the bid of Peat, Marwick, Mitchell and Company, accountants,
of Chicago, Illinois, to make the annual audit of the accounts of
the Business Office, the Business Agent being directed to certify
to the State Department of Finance the action of the Board of
Trustees for approval of the charge ol' $600,00, the contract
price for making the audit.   He further stated that the Business
Agent had followed the direction of the order of the Board of
Trustees, but that he had received no direct information of action
by the Division of Purchases, to which Division the Business Agent
had been instructed by State officials to certify the action of
the Board of Trustees,   The President stated that, on account of
certain financial statements necessary to be made to organizations
in which the University holds membership, an Immediate audit is
necessary.




 




14.



     The President further stated, however, that he had been un-
officially notified by Mr. W. A. Hifner, Jr., that the State
Division of Purchases had informed Mr. Hifner that the contract
for making the audit had been let to him, but that Mr. Hifner
should first consult the Governor in regard thereto.  Governor
Chandler then stated that the Director of the Division of Pur-
chases considered that under the Acts of 1934, the authority and
duty to let the contract was placed in his department, and that
everything being equal, he had deemed it advisable and proper to
let the contract to a Kentucky auditing concern; consequently
the contract had been awarded to Mr. W. A. Hifner, Jr., whose bid
for the work was the same as that of Peat, Marwick, Mitchell and
Company, the Governor stated that Mr. Hifner had consulted him and
stated to him that an audit made in the manner of previous audits
made by Peat, Marwick, Mitchell and Company was valueless, inas-
much as it is not a detailed audit, stating that he, Hifner, pre-
ferred not to make such an audit.
     The question was then open for discussion, and the Governor's
statement that he did not wish to spend money for a valueless
audit, and his further statement that he believed a detailed audit
should be made in all events was approved by other members of the
Board.   In the course of the discus