xt7hdr2p6251 https://exploreuk.uky.edu/dips/xt7hdr2p6251/data/mets.xml Lexington, Kentucky University of Kentucky 19511118 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, 1951-11-dec18. text Minutes of the University of Kentucky Board of Trustees, 1951-11-dec18. 1951 2011 true xt7hdr2p6251 section xt7hdr2p6251 Minutes of the Meeting of the Board of Trustees of the Uni- versity of Kentucky, December 18, 1951. The Board of Trustees of the University of Kentucky met in the President's Offiee at 10:15 a.m., Tuesday, December 18, 1951. The following members were present: Guy A. Huguelet, Mrs. Paul G. Bla- zer, Harper Gattorn, Dr. W. M. Coffee, Carl Dempewolfe, H. D. Palmore, George M. Cheek, Boswell B. Hodgkin, and Herndon J. Evans. Absent: Governor Lawrence W. Wetherby, Ben S. Adams, Paul M. Basham, J. C. Everett, R. P. Hobson, and J. Woodford Howard, President Donovan and Comptroller Frank D. Peterson met with the Board. A. Approval of Minutes. The minutes of the Board of Trustees of September 18, 1951; and the minutes of the Executive Committee of October 20 and Novem- ber 23, 1951, were approved as published. B. Report of the Comptroller. The Comptroller submitted the following report: UNIVERSITY OF KENTUCKY LEXI NGTON December 15, 1951 Dr. H. L. Donovan, President University of Kentucky Lexington, Kentucky My dear Doctor Donovan: I submit hereto attached the financial report of the Uni- versity of Kentucky for the period July 1, 1951, through November 30, 1951. The report consists of a balance sheet and related summaries, covering University fund transactions for the period of five months. The income realized during the period amounted to $4,093 817.43. This amount was 58.65% of the budget estimate of $6 980,054.6-4 General fund expenditures and encumbrances totaled ~2,928,076.87, which is 40.77% of departmental appropriations approved in the amount of $7,182,490.87. Plant fund expenditures and encumbrances amounted to $154,873.81 during the period, or 30.12% of the $514,171.21 budget estimate. The Restricted Fund balance, including investments of $703,251.49, amounted to $i,985,968.16. The funds were credited as follows:- Division of Colleges $1,740,152.86 Agricultural Experiment Station 92,485.80 Agricultural Extension 153,329050 Totals 68.16 Other fund balances amounted to $394,213.46, of which $290,081.q6 was invested in securities. These funds were credited as follows: Principal Income Totals Loan Fund $ 62,797.61 $ 22,940.70 $ 85,738.31 Endowment Fund 200,228.18 2,619.42 202,847.60 Agency Fund 105,627,55 105,627.55 Respectfully submitted, (Signed) Frank D. Peterson Comptroller. University of Kentucky BALANCE SHEET As of November 30, 1951 ASSETS Agricultural Experiment Station Agricultural Extension Division Current Funds: General: Cash in Bank $ Petty Cash Adv. State Allotments: Current Year Prior Year Revolving Funds I Receivables Inventories Deferred Chgs. Unreal.Income I Total General 3 Restricted: Cash in Bank $ 1 Petty Cash Advs. Investments Tot.Restrict. r Tot.Current 5 Plant Funds: Unexpnded Cash Tn Bank $ Revolv.Funds Rec eivables Unreal.Income Total Unexp. 7 Investment- In Plant: Construction Au- thorized Fixed Assets 28 Tot.-Invested Tot.-Plant Other Funds: Cash in Bank $ Notes Receiv. Investments Tot.-Other Funds Total Assets ~ 14,819.67 560.00 631,600.35 8,430.48 1,095,828.64 17,408.60 504,181.02 111,768.20 L,9598,618.97 3,083,215.93 1,045,717.09 12,802.60 688,251.49 ,,746.,7(1.15l ,,729,957.11 282,187.11 _23,:588 .44 30, :55 3 ,580.431.72 I., 5W60431.72 Loan 4,325.26 5,913.05 75,500.00 85j783 $ 82,358.45 175,233.83 541.02 302,742.41 41,693.00 $ 70,867.99 $ 81,087.03 765.78 168,046.11 560.00 887,921 .21 9,737.28 1,398,571.05 17 , 408 60 545,874.02 111,768.20 526,o68 55 738,161.25 2,862 ,848 77 $ 1 12, 3Z.26 $ 930,U2.05 PO273_2 $ 77,o85.80 $ 153,329.50 $ 1,276,132.39 400.00 13,202.60 15,OOQ 00 703,251,49 92,465-80 $ 153,329.50 ;$ 1,99.2 56.4" $1,221,S123.O $ 06 41,211F ,ELb $~ ~ ~~ ~~~~5 $ $,9.217: 105,015.63 $ 387,202.74 $ 105,-077 * $ -129L: $23907,416.L3 $ $3-,487848.45 12,90O7,416.73 $ ,3-4r. 4. ;3,012,432.~ 3-$ 31,d9b 439.6 Endowment Agency $ 3,265.64 $ 90,627.55 $ 98,218.45 199, 15,000-00 ~5,913.05 15,000.00 290,081.96 $ 202,84i.6o $ 105,627.~551 0,2844.81 i ' 6~40,287974,9 8i Division of Colleges Total University of Kentucky BALANCE SHEET As of November 30, 1951 LIABILITIES Agricultural Experiment Station Agricultural Extension Division Current Funds: General: Petty Cash Liability $ Res for Encumbrances: Current Year Prior Year Res.for Inventories Other Liabilities Unapprop.Surplus Approp. Bals. Total General $ 17,968,60 211,649.o6 59,550.70 504,181.02 111,768.20 467,705.81 2,610,392.e54 3,983,215.93 82 ,88810 6,724.85 41,693.00 241,575.54 7J55 55 77 $1,128,637.26 $ 2,616.36 888,265.69 $ 17,968.60 294,537.16 66,275.55 545,874.02 111,7068.20 711,897,71 4,254,414.00 $ 890,882.05 6 Restricted: Outstand.Cks. Restr.Bals. Total Restr. Total Current Plant Funds: Unexpended: Res.for Encumbrances Current Year Prior Year Surplus Funds Approp.Bals. Total Unexpended Investment in Plant: Bonds Payable Net Invested Total Invest. Total Plant Other Funds: Bal, as to Prin. Bal. as to Income ToteOther Funds Tot.Liabilities 6,618.32 $ $ $ 6,618,32 1,740 152.86 92,485.80 153,329-50 1,985,968.16 $1,746771018 $ 92,485.80 $ 153/ 32950 $ 1,992,586.48 $ 5,729-,9d7-:72-1, }12 06 1044,211n'55 -$ 742.87 $ 15,446.77 $ $ 16,189,64 6,482,87 6,482.87 23,780o25 4,841.02 28,621.27 281,052.43 18 J 4.97_ 359 297e40 $ 305?,575-55 $ 105-,2L5r63 $ $ 410,591.18 $ 2,822,500,00 2,8922,500.00 25,2757,931,72 $2,907,416-.73 $ $28,b65-z 49 $2,5o 43.1$,97,1673$ $31,487,848.45 007.27 32,3 $ Loan Endowment Agency $ 62,797.61 $ 200,228.18 $ $ 263,025.79 22 v 940 * 70 2 g 61Q 442 28 627581 $ ' 5 73' e31 $ 02 O76 $ ''1-0-5'bS7 25-3135-46 Division of Colleges Total $ University of Kentucky STATEMENT OF--UNREALIZED INCOME For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 General Fund Budget Estimate Realized to Date Unrealized Balance Division of Colleges: Educational and General: State appropria~tons Federal grants (through the state) Student fees Endowment income Sales & Services and rentals Subtotal Auxiliary Enterprises: Residence-halls Miscellaneous Subtotal Total Colleges Less-Income allocated to plant Net-Colleges $2,714,40oo.o 127,617,87 893,670.00 9-644.50 19 700 13 $ 327,874,oo0 116.*930 o 5O $4,209,837100 j$ 222'l8:oo $1,755,304.17 $ 959,095.83 92,316,15 574,087.24 4,832,25 9,515.65 35,301.72 319,582,76 4,812,25 10,184.48 $ 169,280.00 $ 158,594.0o 5,882,e57 111,,047 093 $ 175,lb2.57$ 2b)9l.bl.2 1e $22218,03 $1,598,6189 $ 222,18.0o 12~b,500O3 59.1%7 Agricultural Experiment Station: State appropriations $ 382,6o0o00 Federal grants (direct) 308,852.21 Sales and Services 49o,141.oo Total-Experiment Station 1l1 -2 Agricultural Extension Division: State appropriations $ 406,60000C Federal grants (direct) Total-Agr. Extension General income allocated Stores overhead Total-Plant Combined Total Plant Fund $ 222,7180.0 29,042,50 6980 054,64 $ 297,348,0oo 153 203.20 o04,973.46 55.b $ 246 600.00 _574,82068 $ b2l,420.bb 52b7 $ 222,718.00 4 093,88-7,43 52 5 $ 85,252,00 155,649.01 285,9167 X54 $ 160 s000 a,00 _578,i61 o25 $ a23 388.44 4 .36,43b .4 $2,886223.21 University of Kentucky STATEMENT OF DEPARTMENTAL APPROPRIATIONS For the Current Fiscal Period which Began July 1, 1951, and Ended Novembera 30, 1951 General Fund Depart, Appro.. Expendi- Encum- Approp. tures brances Balances Division of Colleges: Adm. & Gen r -Expe-nse: General:admi.offices Student welfare General expense Subtotal Instruction & Research: College of -: Arts & Sciences Engineering Commerce Agr. & Home Economics Law Education Pharmacy Graduate School University Research Library University Extension Other activities Subtotal Operation & Maintenance of Physical Plantetc,: General appropriation Special appropriations Work in progress General stores, etc. Subtotal Auxiliary Enterprises: Residence Halls Miscellaneous Subtotal Total-Colleges $ 202,186,95 6o, 556 o05 85.535 .06 $ 80, o46,,98 26, 313 ,70 37,001,91 $ 2,332,03 $ 2,807;44 6,718,46 119,807o94 31,434o91 41,81)4o69 $1,295,297.79 $ 490,923.23 $ 27,960.90 $ 776,413.66 350,300,78 123,498e24 5,928;.15 220,874-39 159,728,o00 62,083.86 696,75 96,947.39 211,687,54 81,583,87 -1,139,51 128;964.16 59,513,75 22,802.92 48,12 36,662.71 292,279e27 108,932,33 5,944,86 177,402.o8 76,269,00 25,310,95 5,473,36 45,484o69 9,430,00 3,943,29 11,40 5,475,31 24 000,00 30230Q34 349,20 20,420.46 223,185,51 90,464000 14,014,29 118,707.22 113,266,12 34o000,45 3,761,60 75,504,07 23,734.00 5 I695-35 6,307-.10 11,731--i5 39 16303 $ 684,393,00 $ 214,828,33 $ 89,617.69 $ 379,946.98 60,00oO0,0 696,77 2,982.00 56,321,23 25,000,00 36,591,58 11,591,58* 27 20000 25 214,66* 52j464.66- 3 $ 292, 2 ; 92, 59 $47 $ 285,767,00 $ 93,824,40 $ 34,197,75 $ 157,744,85 79,809,95 10,590o33 1,358o45 67 861 17 3 o 29% $4,349.91,8,77. 1527,14817 $2-11,649.06 $2,610,392,54 399 e *Negative number, University of Kentucky STATEMENT OF DEPARTMENTAL APPROPRIATIONS For the Current Fiscal Period which Began July 1, 1951 and Ended November 30, 1951 General Fund Agricultural Experiment S Depart. Approp, ,tation: Expendi- tures Encum- brances Administration Agronomy Animal Husbandry Animal Pathology Creamery License Dairy Dairy Cattle Improvement Entomology and Botany Farm Economics Feed and Fertilizer Home Economics Horticulture Markets & Rural Finance Poultry Publications & Library Public Service Labs. Regional Research Robinson Substation Rural Sociology Seed Stocks West Ky. Substation Library Social Security West Ky. - G.I. Total-Agricultural Experiment Station t * ,-170-473,00 202,454o00 78,490.oo 60,050 .00 9,291.00 50,335,00 15,000.00 79,330,00 61,685Q00 190,000o00 18, loo. o o 44, 1800000 79,331,00 35, 388.00 23,155.17 32, 250.00 8,325,00 22,400,00 32, v242.00 7,000,00 41,900.00 9,340.00 23 000 00 41,7-48.55 74,414,38 40, 502,36 22, 305 .33 3,608 72 18,506.87 6,355-31 30,381,43 24 516,28 38, 392 o72 6,513,23 16,455,63 33,241.90 14,451.08 3,230.81 11,861.45 2,968,64 7,414,72 12,253.47 2, 850.00 15,156.45 2,832.65 3,478,32* 1, 635,00 1, 273,719.17 $435,075)30 40,b7% $ 3,314e58 2,371 ,68 8,847,12 40,00 301o06 5,722o62 288.24 645 .88 38,412,70 294.62 37,19 595,14 881,90 74,25 1,988 .35 8.o5 14,330.48 1,083e95 3 650. 29 $ 82,s888 e 10 $ 105,409.87- 125,667.94 29,140.52 37,704. 67 5,.381.222 26,105.51 8,356.e45 48,302.69 37, 168.72 113, 194. 58 11,586.77 27,429.75 46,051.91 20,341178 19,042.46 20, 31430 5,356.36 12, 996.93 19,980.48 4,150.00 12,2413e07 5,423,40 3,2478.32* 17,Z14.71 $ 7551755,77 *Negative number. Approp. Balances University of Kentucky STATEMENT OF DEPARTMENTAL APPROPRIATIONS For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 General Fund Depart. Approp. Expendi- tures Encum- brances Agr. Extension Division: A iinistration $ Agr. Engineering Agronomy Animal Husbandry Clothing County Agents Dairy Farm & Home Conven. Farm Management Forestry Foods Home Dem. Agents Home Management Horticulture Junior Clubs Markets Poultry Publications Public Information Rural Sociology Social Security Adm.Res. 62,192,00 28, 988. oo 35,687,50 22,708.o00 12, 264. 00 703,011,52 21, 268 e00 1,500,00 14,904o00 10, 436,00 11,632.00 431,175.98 29, 840 o.o0 18,344,00 78,204o00 13,453,00 21,444.00 13,888,00 19,296o00 5,620,00 3,725.93 $ 23,029.83 9,791, 77 14,983.20 9,493,26 4,700,30 309,817.95 8,476,46 6,074.95 4,297,80 4,700,52 198,856,20 11,657.19 7,515 o76 31,362,75 4, 872.81 8,483,81 2,300,-Ol 7,521,82 2,611,70 768,15 d. $ 39,162.17 19,196.23 20,704 .30 13,214e74 7,563.70 393,19.3.57 12,791 a54 1,500.00 8,829-05 6,138.20 6,931.48 232,319.78 18,182.81 lo,828e24 46,841.25 8,580.19 12,96.0. 19 11,j587.99 11,774. .8 3, 008.30 768.15 31725 v93 Total-Agricultural Extension Div. $1,559,581.93 $ 671,316624 $ 888,265.69 43.04% O4e 77 Combined Total $7,182,490.87 2$ !437,16 4 2 4 .414.00 *Negative number. Approp. Balances University of Kentucky STATEMENT OF OTHER FUND TRANSACTIONS For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 Balance July 1,1951 Disburse- ments Balance Nov.30,1951 Restricted Funds: Div. of Colleges Agr. Exp. Station Agr. Ext. Division Subtotal $1,471,738.78 54 ,158 .96 150,152. 84 $f 6769050 58 $1,448,947.79 $ 640,266.85 $2,280,419.72 113,452.72 37,562.94 130,048.74 103-L34682i 50,o85,eo8 203,414.58 $1,665,747.33 $ 727,914.87 *2,6132883.04 Loan Fund: Principal Income $ 62,797.61 22,38519 Subtotal Endowment Funds: Principal1 Income Subtotal Agency Funds: Balances $ 199,928.18 2,645.67 $ 202,573.85 $ 69,-939-.86 $2,033_,747,09 $; $ $ 6-2,797.61 565,23 9.72 22,940.70 $ - -565.23 4 9J 2 $ 85,738,31 $ 300.00 $ $ 200,228.18 85.75 112.00 2,619,42 $ 385.75 $ 11200 4 $ 402S129.17 $ 183.220.74 t 288,848.29 $2oT 068,827,,48 _ 911,257.33 L3 121 1.24 Receipts combined Totals University of Kentucky STATEMENT OF COMBINED RECEIPTS AND EXPENDITURES For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 Receipts and Transfers: General Inc-ome Plant Income Restricted Receipts Loan Fund Receipts Endowment Fund Receipts Agency Fund Receipts $4,093,817.43 228,372.o6 1,665,747.33 565.23 385.75 402,129.17 Total Receipts Expenditures and Transfers (Including Encumbrances) General Fund Expenditures Plant Fund Expenditures Restricted Fund Expenditures Loan Fund Expenditures Endowment Fund Expenditures Agency Fund Expenditures Total Expenditures $2,928,076.87 154,873.81 729,914.87 9.72 112.00 183,220.74 13,996,20o8.1 University of Kentucky STATEMENT OF PLANT APPROPRIATIONS For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 Plant Funds Dept. Approp. Expendi- tures EncuM- brances Division of Colleges: P.W.A. First Bond $ 36,477.19 Issue P.W.A. Second Bond Issue 16,781.73 Dorm. Rev. Bond Issue 23,524.00 Audit-Fieldhouse IssuelO2, 648050 Lib. & Serv. Bldg. Bond Issue Stadium Rev. Bond Issue Dorm.Issue-Rose St. 456 Journalism Bond Issue 46,538,27 23,274200 4a 108.842 16,723e00 $ 641.65 $ 8,398.46 3,902.50 50,793.75 6,973075 $ 36,4125154 8,383.27 19 , 621.50 51,854.75 39,564.52 19,224.00 1,0o49.67 16,723.00 4,050,00 3,058.75 Dicker House Annuity Fieldhouse Norwood. Hall Fire Loss Bal. Purchase of Land & Bldgs. Serv.Bldg. Constr. Fine Arts Bldg. Dairy Center Journalism Add. to Col. of Ed. New Science Bldg. Dorm.Constr.-Rose St. 476 Lib.& Serv.Bldg. Clearance Sprinkler System 3,300.00 4,513.14 3,115,00 19,266.58 4,443-32 $402,4b 13872.1 3,300.00 1,398,14 19,266.58 4,443-32 --- . 1 $ 11 1111 2- 2 10 I Free Balance 230.68 30,250.27 15,911.25 230.68 30,250.27 11,000000 2,159,147 15,911.25 7,302.81 59,094,99 3,697.19 2,159)47 50,789.84 742.87 7,562.28 University of Kentucky STATEMENT OF PLANT APPROPRIATIONS For the Current Fiscal Period which Began July 1, 1951, and Ended November 30, 1951 Plant Funds Dept. Approp. Expendi- tures Encum- brances Agr. Experiment Station: Animal Path. Bldg. Repairs & New Equipment W. Ky. Tobacco Barn W. Ky. Water System $ 1,880,75 194.148 200.00 $ $ 245,00 $ 1,635.75 200.00 Agr. Engr. Bldg. Sheep Barns Brooder House Miscellaneous Subtotal Combined Total 2,500.00 17,856.oo 3,704 .83 $ 93,926.40 $514417-1.21 162.66 2,500.00 4,801,77 12,891.57 * _72.00 d4o0 14 1417683 $ 234.66 $ 15,446.77 $ 78,244,97 1 138,684.17 $ 16,189.64 $359,29140 30.12% *Expenditures and encumbrances in excess of appropriation or negative figure. Free Balance. 75,000,00 75,000.00 The report was read and examined, and upon motion duly made, seconded and carried, authorized received and made a part of the minutes. C. Cafeteria and Residence Hall Prices Increased. The Comptroller reported that prices were last raised in the Student Union Cafeteria in June, 1947. Since that year the retail food index has increased 33.5% and the wholesale food index, during the same period, has increased 21.2%. He stated that, during the last two months, case goods have advanced on most items 25/ to 75/ per case. The average cost per meal in the Cafeteria currently is 64/ per meal, based upon customers for breakfast, luncheon and supper. The Comptroller cited figures to show that the wage rate at the Cafeteria is much lower than that currently being paid by similar establishments in this vicinity, The rates in the Women's Residence Halls were raised in July, 1949, from $180.00 to $200.00 per semester per student, and the av- erage cost per meal to students residing in the residence halls cur- rentlyis .326 per student per meal. The Comptroller further reported that, during the current fis- cal year, many of the kitchen, dining hall and grill employees had left to take jobs elsewhere at higher wages, and that many trained and dependable wage earners were leaving for other jobs. He recom- mended that some price adjustments be made in the Student Union Cafeteria on food items; that room and board costs in the Women's Residence Halls be increased to $220 per semester per student, and that merit increases in wages of employees in the cafeteria, dining hall and grills be made. Members of the Board expressed the thought that the prices had been kept surprisingly low, and that students in the University have received good food at very low costs. Upon motion duly made, seconded and carried, the Comptroller was authorized to make merit increases of employees in the cafeteria, dining hall and grills, effective January 1, 1952; that line prices in the cafeteria be adjusted as of January 3, 1952, and that the cost of room and board in the Women's Residence Halls be fixed at $220.00 per semester per student, effective the second semester of the current year 1951-1952. D. Budget Changes, President Donovan submitted list of changes in the University Budget which have been approved subject to authorization by the Board of Trustees, He read the list of increases and decreases and reported that the net increases amounted to $2,926.89. He recommended that the budget changes be authorized. Upon motion duly made, seconded and carried, the recommendation of the President was concurred in, and the Comptroller was authorized to make the necessary budget adjustments. E. Or4anization and Administration of Athletics at the Uni- versity. President Donovan read a statement on the organization and administration of athletics at the University since 1945. In November, 1945, the Board of Trustees of the University of Kentucky entered into an agreement with the University of Kentucky Athletic Association, which had recently been incor- porated to "conduct in a careful and proper manner athletic contests with approved teams representing other colleges and schools". Since there are several of the Trustees on the present Board who were not members at the time of the agree- ment, I have thought that it is desirable to review that agreement in order that you may be thoroughly cognizant of the organization of the Department of Athletics at the Uni- versity of Kentucky. There was a public demand, and a very vocal one, that the quality of football at the University be improved, at least to such an extent that the University's teams could win a reasonable number of games in the Southeastern Confer- ence, For some years the Kentucky teams had been ranking at the very bottom of the list of the twelve universities in this organization. We took the position that if Kentucky was to participate in inter-collegiate football, its teams should be as good as the average team in the Southeastern Conference, There were probably a number of reasons accounting for the low rating. The principal one, however, was that in 1945 the salary of an employee of the University could not exceed $5,000, This was a Constitutional limitation which the Court of Appeals had only recently declared applied to the University. This limitation meant that it was impossi- ble to employ one of the well known, successful coaches of this country to take charge of our football team. In order 14i to overcome this handicap, as well as some other difficult problems, the members of the Board of Trustees and a number of other interested citizens at that time considered the desirability of forming an athletic association and incor- porating the same, as a nnumber of other prominent universi- ties had done, to take over the difficult assignment of managing and financing a desirable athletic program for the University of Kentucky. Much study went into the planning of this program. A corporation was formed consisting of eleven members, with the President of the University as Presi- dent of the Corporation. In order to guarantee that the athletic program would be left under the control of the faculty, the President of the University and five members of the Universi- ty Faculty should be on the Board. The Articles of Incorpora- tion also required that the President of the Student Government Association, one prominent alumnus and one member of the Board of Trustees should be appointed to serve on the Board. The Attorney General was asked to review the agreement between the University and the University of Kentucky Athletic Associa- tion and he gave it his legal sanction, The Athletic Association immediately entered upon a cam- paign to raise $100,000 for the purpose of carrying out this agreement with the University. The campaign was exceedingly successful and in a short period of time the Athletic Associ- ation had gifts and donations amounting to something over $112,000. Shortly thereafter the Association employed Coach Paul Bryant and the assistant coaches which he recommended. Coach Adolph Rupp had been eminently successful in basketball for a number of years and his services were continued uninterrupted. Mr. Bernie Shively was made Director of Athletics and he was put in general charge of the total athletic program as an employee of the University and not as an employee of the Ath- letic Association. He was given the responsibility of seeinig that an athletic program similar to the programs of other uni- versities of the Southeastern Conference was maintained, and that all rules and regulations of the Conference to which we belong were complied with, that the business of the Association was conducted in an efficient manner, and that the rights of the University were at all times upheld, In this agreement the University, for the sum of $1.00 and other valuable considerations, agreed to allow the Athletic Association to use property known as Stoll Field, McLean Stadium, the Alumni Gymnasium, and later Memorial Coliseum, where athletic events were held, The Athletic Association immediately installed lights on Stoll Field at a cost of $21,965.61 In order to provide 16 for larger attendance at football games, the Athletic Associa- tion purchased 8,000 bleacher seats and had them installed at a cost of $78,796.26, Attendance at athletic events be- gan to increase immediately as a result of an improved football team and gate receipts increased proportionately. Upon the recommendation of Governor Earle C, Clements and the approval of the General Assembly, an addition to the Stadium was built in 1948 at a cost of approximately $514,943.66. This addition to our athletic facilities was made from state funds. The attendance increased so rapidly at football games that there was a demand. for further extension of the Stadium and under considerable pressure brought upon the President, it was final- ly agreed. to expand the Stadium on the south side of Stoll Field for this purpose, A bond issue of $300,000o00 was au- thorized and the seating capacity of the Stadium was increased to 38,000, The University of Kentucky Athletic Association was requested to assume this indebtedness and pay off the interest and retire the bonds, which amounts to approximately $19,84100 per year for a period of twenty years. For more than a decade the public had demanded the building of a fieldhouse at the University that they might see the bas- ketball games. I was able to change somewhat the objective that had been in the minds of the alumni and general public and secured. a dual-purpose building instead of a fieldhouse. As you know, this building is a magnificent auditorium in which basketball and other physical education activities can be conducted. With practically no effort to secure these appro- priations, the General Assembly, under three Governors, made appropriations for this building, the total sum being approx- imately $3,100,000, Because of the increase in the cost of construction after the war, it was necessary to authorize another bond issue of $825,000 for the completion of this build- ing and the Athletic Association was directed to assume this indebtedness and pay the cost of the interest and bond retire- ment, which amounts to approximately $53,962.00 per year over a period of twenty years, In other words, the Athletic Asso- ciation is paying a total of $73,803.00 per year for interest and bond retirement and this must continue for the next seven- teen or eighteen years. In addition to the above financial obligations which the University of Kentucky Athletic Association has accepted, other improvements have been authorized; at the Stadium the rest rooms and toilets were insufficient to take care of the crowds and an expenditure of $10o071.45 has been made to provide proper facilities, a cyclone fence around the athletic field has been erected at a cost of $2,747 00 and tennis courts have recently been completed at a cost of $11,395.29, The intra-mural program in which thousands of students participate, including tennis, swimming, volley ball, fencing, rifle, golf, and track has been largely maintained by the Athletic Association. Since the formation of the Athletic Association, Kentucky has won 45 football games and lost 16 and tied 2. It has been invited to four bowls, having won in the Great Lakes Bowl and the Sugar Bowl, and losing in the Orange Bowl. On Jan- uary 1, 1952, it will play in the Cotton Bowl. During the same period Coach Rupp's basketball team has won 126 and lost 10 games. It has also won 5 Southeastern Conference championships and 3 national. championships. Its record, however, has recently been marred by the revelation that three of our former basketball players of national fame have pleaded guilty to the charge of accepting bribes for shaving points. This has been a humiliating experience which has brought much grief to all of us who have been associated with the University. The Athletic Association is a solvent corporation which has met all of its obligations and in addition has invested $250,000 in United States Government bonds in order to be prepared to meet a "rainy day" if such a time should come, and it undoubted- ly will come sooner or later. It has been our desire to have sufficient funds to take care of our obligations for a period of two or three years in the event of war that might eliminate athletics, or the failure of teams to attract an au- dience sufficiently large to maintain the cost of the program, In the agreement of the Board of Trustees, which was entered into in 1945, it is stated, "and, on demand of the party of the first part (Board of Trustees), to surrender and return the above described property to the party of the first part in as good condition as it was received, reasonable wear and tear and loss or injury due to casualty excepted." In other words, whenever the Board of Trustees should. desire to take over again full responsibility for directing the athletic pro- gram of the University, the corporation must turn back to it all of its facilities, Periodically, I think, the Board of Trustees should carefully review this arrangement and should determine whether or not to continue the policy agreed upon in 1945 when it requested the Athletic Association to assume the responsibility of directing the athletic program. I think the corporation has been a great success both from the standpoint of a high grade athletic program and also fi- nancially. I know the men who are on the Athletic Board have been conscientious in the discharge of their responsibilities.