xt7hdr2p628s https://exploreuk.uky.edu/dips/xt7hdr2p628s/data/mets.xml Lexington, Kentucky University of Kentucky 1937053 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, 1937-05-jun3. text Minutes of the University of Kentucky Board of Trustees, 1937-05-jun3. 1937 2011 true xt7hdr2p628s section xt7hdr2p628s

Irregularities

Minutes of the Regular Meeting of the Board of Trustees of
the University of Kentucky, Thursday, June 3, 1937.

The Board of Trustees of the University of Kentucky met in
President MoVeyts office at the University June 3, 1937, at 10:30
a.m., this being the regular June meeting, continued from Tues-
day, June 1, 1937. The members of the Board present were Judge
Richard C. Stoll, Vice-Chairman; Louis Hillenmeyer, J. B. An-
drews, Judge John Cooper, Dr. George Wilson, R. Miller Holland,
James Park, J. C. Newcomb and H. S. Cleveland. 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, April 6, 1937,
and Executive Committee meeting, May 3, 1937. Corrections were
ordered made in the Minutes of the Executive Committee of Febru-
ary 24, 1937.

2. President's Report,

a. 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:

THE PRESIDENT TO THE BOARD OF TRUSTEES

June 3, 1937.

Building Program

A member of the University staff met an old man in McVey Hall
not so long ago, who remarked, after commenting on the extensive
building program going on at the University: "This program would
bankrupt the State." I am not taking this remark seriously, but
it does indicate an attitude of mind toward University expendi-
tures. The fact of the matter is that the University has re-
ceived for building purposes by legislative appropriation no money
since the construction of the Agricultural Engineering Building
in 1930. In the last ten years approximately $3,000,000 worth
of buildings have been put up with little or no direct cost to
the State. This last phase of the building program now coming to
a close is financed by a federal grant and the issue of bonds by
the University, There were eight buildings projected in this
program: of this number, four are approaching completion, three
are under construction and one is now being planned, Bids will

be called for its construction about the middle of June.

The erection of these buildings necessitates considerable
planning in the rearrangement and placing of departments. There
is no agreement as to where departments shall be placed, but the
matter will be worked out as agreeably as possible to all con-
cerned. At the present, the C.and P.Building will be used by
the Department of Physics, and the northern half and upper story
of the Mining Building will be given over to the Department of
Botany. It is likely the Dispensary and Public Health DeDart-
ment will go into the old Law Building, and the Patterson HIbate
will be used for the University Club when the Y. W. C. A. enters
its quarters in the Student Union Building. Other adjustments
will be made when the time comes for departments to move into the
new Science Building.

The construction of these new buildings necessitates the
acquirement of equipment in the form of furniture and laboratory
fixtures. Some of the space can be fitted up with the furniture
now in use. The Student Union Buildihg, however, will require
a considerable amount of new furniture and new equipment. It
is expected that some of the money raised for the building pro-
gram can be used for that purpose. How this can be done and
what amount can be so used should be determined in the near future.

Land Purchases

As the University grows, the movement of the campus and build-
ings is toward the South, with the ultimate purpose of uniting
the University campus with the Experiment Station grounds. The
University now has the opportunity to purchase three lots, one
on South Limestone close to-Memorial Hall. There are also two
lots on Graham Avenue. These lots can be purchased for approx-
imately $14,000. Information concerning these lots will be
brought to the attention of the Board at this meeting. Arrange-
ments can be made for the purchase of these lots, if in the opinion
of the Board, it seems wise to do so.

Landscaping

The Department of Horticulture and other members of the Uni-
versity staff are much disturbed over the landscaping on the campus.
The system now prevailing fails to produce the results it should,
due to failure to make plans for the future. The ambition of the
present is to take care of what we have and to make the campus
fairly presentable. According to an authority, under such a sys-
tem, the area will steadily go down, due to the age of trees and
the failure to carry on a systematic planting of trees and shrubs.
Sometime ago a botanic garden was started on the campus in coop-
eration with the Garden Club. In this garden are many kinds of
plants and wild flowers, and the garden makes a good whowing, but

I am told there are fewer plants in the garden now than there were
three years ago. The method of planting at the present time is a
hit-or-miss one that does not meet the situation adequately. It
has been suggested that a landscape plan be made for the entire
campus, including the Botanic Garden. This is, perhaps, diffi-
cult to do on account of the placing of future buildings, which
have not yet been determined. However, this matter should be
given adequate consideration; otherwise the campus appearance is
bound to go down,rather than up, in the course of the next few
years.

Future Buildings

I was asked the other day whether the University had practical-
ly completed its building program. This can be answered quite
positively in the negative, for there are many additional buildings
needed before the University can meet the demands now placed upon
it. An illustration is the need for additional dormitories.
The pressure grows and if the University reaches the 5,000 mark in
the course of the next half dozen years, the city will not be able
to house the students, and the price of rooms will rise according-
ly. Consequently, the demandfor dormitories to meet the present
need grows each year. A comparatively small dormitory for men
would cost approximately 8150,000, and a similar one for women
would cost a corresponding amount.

The building housing the College of Commerce is wholly inad-
equate, and the Department of Home Economics also should have a
building of its own. There is need for an Armory and an intra-
mural athletics building. The offices of the University are in-
adequately housed, so again there is need for an Administration
Building. These buildings ought to be on the campus at the
present time. It will be some years before these can be erected,
so we may say we have not yet reached a point where the orogram
is fairly completed.

Support of the University

For the past two years the University has received from the
State for general support $712,000; this is less than received in
the two previous years and very much below the high point of 1931.
The amount of general maintenance, *660,000, should be increased
to approximately 8820,000; the repairs appropriation to $10,000;
and the summer session to 820,000. For the reconstruction of
old buildings to make them available for new uses there should be
an appropriation of 830,000; and for equipment, furniture and
shelving $75,000; for the purchase of books for the Library,
$50,000. The 872 ,000 for the Experiment Station and Public Ser-
vices Laboratories should be increased to $80,000, and the State
appropriation for Agricultural Extension should meet the funds
provided by Congressional action. Necessarily the State could
not construct the number of buildings referred to in the above

section of this report, but it should be asked to do something in
the way of providing for a Home Economics Building and the con-
struction of new dormitories.

A new item is appearing in the budget; this item is called
amortization and interest and amounts to 863,000 annually, So
far, the University has been able to meet the payment required
without much difficulty. It is expected that this will continue,
but it is an item that will be reduced in so far as the earnings
of buildings may be applied to it.

While I am reporting upon financial matters, may I call at-
tention to the grant made by the Carnegie Corporation to the Uni-
versity of Kentucky for an extensive and detailed study of commun-
ity music problems in this state. Dr. Willem van de Wall has
been designated by the American Association for Adult Education
as the person to carry on this study. Great value should come out
of it, and possibly a new slant on the music program of the Uni-
versity.

The Budget for 1937-38

In making up the budget for this coming year I have found
greater difficulty in bringing it together and meeting the larger
needs of the departments than I have had in previous years. In
reading the reports of the departments one is impressed with the
requirements set up by the heads in the matter of materials, sup-
plies and equipment. There is hardly a department that is not
asking for more money to meet its needs, and in most instances
there is full justification for such requests. I hope that this
situation may be relieved in another year, though it will be neces-
sary to go through the coming budget period with little or no ad-
ditions for expenditures to meet departmental needs. Such a sit-
uation cannot continue long without resulting in a decline in
stocks and a lessening of equipment. It is hoped that at the
next legislative session something may be done to meet this situ-
ation.

There have been many requests, some of them more than urgent,
to increase salaries, Here again disappointment must ensue, as
a consequence of the inability of the University to meet such re-
quests. In many instances requests are justified: in the long
run the University cannot hold its staff together if it does not
pay adequate salaries. This is especially true of the younger
men and women. The University has been under the necessity of
continuing the same salary schedule that has been followed the
past five years. Again, it is hoped that there may be relief,
as a consequence of the session of 1938.

I said in the beginning of this section of my report that
never before had it been so difficult to formulate the bidget.
Never before has the so-called "cushion" between income and ex-
penditures been so small. Since adopting the present state

system of financing it has been possible to reduce the reserve.
Now it has reached the low point of 89,000, and new demands are
made every day for additional expenditures. If there is an in-
crease inthe student body the fees may take care of the expendi-
tures if contingencies arise that are not too extensive.

Boarding Department

The University does a business of apnroxim tely $200,000
yearly in the feeding and housing of students. This business is
carried on in the dining hall of the women's residence halls, the
University Commons, the Training School Cafeteria, and in the
Sandwich Shop operated for the convenience of the residents of
the men's dormitories. The Commons, Training School Cafeteria
and the Sandwich Shop are under one direction, and the women's
dining hall is under another. According to the report made by
President Hughes, the University should be earning a considerable
sum of money for the maintenance of equipment and the pos sible
construction of dormitories. Under the present dire'tion of
these enterprises, the University meets the expenses of them
taken as a whole.

The opening of the Student Union Building, in which a large
cafeteria is to be located, further complicates the situation.
Just what should be done in operating the different eating places
is not fully determined, but I venture to suggest (1) that there
should be a central management for the different eating places,
(2)that there should be a common storage place, and from this
storage place all daily supplies for food should be drawn on
requisition, (3)that there should be a dining hall for the men's
dormitories. Such a suggestion is a wide departure from our
practice. This needs careful consideration. At this particular
moment I am unable to say that room is available. If this plan
is followed it will mean some readjustment of the cafeteria in the
Union Building. I hope to be more definite later on, but I am
mentioning these matters now so that the Board may have them in
mind.

While I am discussing this I may say that the cooperative
house, known as Shelby Hall, and owned by the Miller estate, has
been operated as a residence hall for 22 young women. The cost
to these young women for the first semester of last year was
$14.00 a month per student. This is a very low figure and indi-
cates that the plan has worked out to the great satisfaction of
the sponsors. The building used for the cooperative house is an
old one and quite unsatisfactory for the purpose. The committee
in charge of the cooperative house has recommended that the lease
be given up and that a new building be erected to provide for the
cooperative housing of students. With that in mind, the committee
has proposed to erect a building on the campus for the use of stu-
dents to be financed by the sale of bonds, at a cost of approx-
imately $20,000. The building might be made to care for more
girls than are now in Shelby Halls It is also believed that the

costs of amortization and interest can be met by the earnings of
the house. This, too, I am bringing to the attention of the Board.

b. Student Enrollment, 1936-37.

May 31, 1937

Memorandum for President McVey

Concerning enrollment for the year 1936-1937:

Total number of individuals enrolled for the regular
session - 3859

Number in first semester - 3455
Number in second semester - 3298

Average in regular attendance - 3376

Number enrolled in 1936 summer session ------------ 1936

Number in first term - 1655
Number in second term 924

Total number of individuals for the full year, in-
cluding the Summer Session ------------------ 5218

Total number of graduate students for regular year- 360

Total number graduate students in the 1936 Summer
Session -- 838

Number in first term 695
Number in second term ---- 381

Total number graduate students for the full year,
including Summer Session 1084

This is the largest enrollment in the history of the
institution. The largest next to this was in the year
1930-31, when the enrollment was 3682 in the regular ses-
sion. During the depression the enrollment dropped to
2841. Since that year it has increased 1010 students.

(Signed) Ezra L Gillis
Registrar

3. Financial Report for April, 1937

The financial report for April was presented by the Business
Agent. It was examined by the Board and ordered inserted in the
Minutes. The Business Agent stated that the financial report
for May was not ready for presentation.

EXHIBIT nBR

Statement of Income and Expenditures
Month of April 1937

Previously
Reported

Current
Mionth

Fiscal
Year
to Date

General Fund Income
Federal Appro.-IMorrill-
Nelson 28,500.00
Vocational Ed. Board 15,017.87
State Appro.-Sum.Sch. 8,000.00
Special Agr. Appro. 17,994.59
State Appro.-(General 494,565.93
Int.on Peabody Endow. 2,205.56
Int. on Endowment Bonds 21,611.25
State Appro.-Repairs to
Buildings 5,672.56
Federal Appro.-Bankhead-
Jones 17,889.84
Student Fees 228,128.61
Student Fees - Sum.Sch. 56,035.84
Student Fees - U.H.Sch. 8,685.00
Student Fees - E1.Tr.Sch. 7,805.00
Student Fees - Un. Ext. 12,721.07
Misc. Receipts 4,285.80
Rentals 1,864.00
Men's Dormitories 17,175,20
Total 948,158.12

4,750.00
1,790.16

2,455.77
63,739.22

648.41

2,981.64
11,553.86

540.00
280.00
2,032.83
969.82
170.00
854.38
92,766.09

33,250.00
16,808.03
8,000.00
20,450.36
558,305.15
2,205.56
21,611.25

6,320.97

20,871.48
239,682.47
56,035.84
9,225.00
8,085.00
14,753, 90
5,255.62
2,034.00
18,029.58
1.040.924.21

Expenditures
Instruction 611,153,30
Adm.,Exp. and Iblaint. 208,712.14
Additions & Betterments_ 14,598.65
Total 834,464.09

Excess of Income over Ex-
Denditures

72,372. 18
18,917.55
1,602.44
92,892.17

683,525.48
227,629.69
12,3251.09
927,356.26

11.940 (1_26.8 _ *567.

113.694.03

(126.08) 113.567-95

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

Expenditures
Expense
Additions & Betterments
Total
Excess of Income over
Expenditures

42,749.50
239.89
3,920.10

12,597.05
2.00

55,346.55
241.89
3.920.10

46,909.49 12,599.05 59,508.54

27,445.72 3,388.78 30,834.50
640.3? 30.00 670.37
28,086.09 3,418.78 31504.87?

18,823.40 9,180.27 28,003.67

General Fund Income 995,067.61
General Fund Expenditures 862,550.18
Excess of General Fund
Income over Expendi-
tures 132,517.43
Excess of Expenditures
over Receipts for Gen-
eral Ledger accounts (90,223.27
Excess of Receipts over
Expenditures for the fis-
cal year to date - General
Fund 42_294_16
Excess of ReceiDts over Ex-
penditures for the fiscal
year to date - General
Fund
Cash in Bank July 1, 1936 -
General Fund
Cash in Bank April 30, 1937 -
General Fund

105,365.14 )10C,432.75
96,310.95 .958,861.13

9,054.19 141,571.62

5,759.44 (84,463.83-)

14,813.63

57,107.79

52,785.93

109,893.72

Experiment Station Income
Hatch - Federal Appro.
Milk and Butter - Cash
Receipts
Beef Cattle Sales
Dairy Cattle Sales
Sheep Sales
Swine Sales
Poultry Sales
Farm Produce Sales
Horticultural Sales
Seed Test
Seed Inspection
Rentals
Miscellaneous
Fertilizer - Fees
Public Service - State
Appro.

11,250.00

7,772.56
1,025.09
982.39
1,147.74
2,378.69
2,420.04
3,246.73
82.55
731.80
18,932.04
3,259.78
2,169.66
30,738.88

15,564.38

3,750.00 15,000.00

844.19 8,616.75
1,025.09
982.39
1,147.74
535.40 2,914.09
107.95 2,527.99
16.90 3,263.63
3.75 86.30
99.25 831.05
4,343.25 23,275.29
141.67 3,401.45
15.45 2,185.11
L3,835.00 44,573.88

1,653.98

17,218.36

Public Service - M,11isc. 344.10
Feeding Stuffs - Fees 50,049.32
Adams - Fed. Appro. 11,250.00
Serum - Sales 1,574.41
Serum - Virus Sales 85.40
Serum - Live Stock 31.57
Serum - Supply Sales 89.76
Serum - Misc. Receipts 17.00
State Appro. 37,932.55
Creamery - License Fees 8,193.04
Crsamery - Testers Lic. 3,059.50
Creamery - 'lassware Test. 689.90
Robinson - State Appro. 11,228.10
Robinson - Misc. Rec. 3,514.49
West Ky. - State Appro. 9,560.94
West Ky. - Misc.Rec. 11,850.55
Purnell - Fed. Appro. 45,000.00
Bankhead-Jones - Fed.Appr.29,601.76
Nursery Inspection -
State Appro. 1,499.96
Nursery Inspection - Fees 1,575.00
Total 328,849.68

5.00
*7,446.66
3,750.00
207.48
9.90

4.63
10.00
4,166.84
24.00
68.00
79.00
1,131.42
220.51
1,508.62
276.01
15,000.00
9,867.26

166.66

69.288.78

349.10
57,495. 98
15,000.00
1,781.89
95.30
31.57
94.39
27.00
42,099.39
8,217.04
3,127.50
768.90
12,359.52
3,735.00
11,069,56
12,126.56
60,000.00
39,469.02

1,666.62
1,575.00
398,138.46

Expenditures
Expense
Additions & Better.
Total

273,273.91 31,017.71
17,247.48 1i136.26
290,521.39 32,153.97

304,291.62
18,383.74
322,675.36

Excess of Income over
Expenditures
Excess of Receipts over
Expenditures f'or Gen-
eral Ledger accounts

Excess of Receipts over
Expenditures

38,328.29

37,134.81

30.887.99 (16,866.79)

69,216.28

20,268.02

Excess of Receipts over
Expenditures for the
fiscal year to date -
Experiment Station
Cash in Bank July 1, 1936 -
Experiment Station
Cash in Bank April 30, 1937 -
Experiment Station

89,484.20

(7,585.,30)

81,899.00

Extension Division Income
Federal Bankhea.d-Jones
Federal Smith-Lever
Federal Add. Coop.
Federal Supplementary
Federal Capper-Ketcham
State Smith-Lever
County and Other
Total

328,290.30
148,308.76
12,500.00
39,818.29
36,800.97
85,465.37 11,681.10
16,228.92 122,21
667,412.61 illX0231

328,290.30
148,308.76
12,500.00
39,818.29
36,800.97
97,146.47
16 351 13
679,215.92

75,463.10

14.021,20

_ 89,484.30

10.

Expenditures
Expense

49(,234. 14

58.517. 67

557 ,751.81

Excess of Income over
Expenditures

168,178.47

(46,714.36)

121,464.11

Excess of Expend, over
Receipt s for General
Ledger accounts - (47,102.16)

Excess of Receipt s over
Expenditures l1

21,076.31

(46.714,36)

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Extension
Division
Cash in Bank July 1, 1936 -
Extension Division
Cash in Bank April 30, 1937,
Extension Division

Trust Fund Income
Student Loan Fund
Student Notes Paid
General Ledger accounts
Total Receipts

Expenditures
Expense
Student Notes
General Ledger accounts
Total Expend. _

3,130.18
2,874.72
2Q 801. 70
8,806.60

124.71
481.68

606.39

15.00
267.75
13,000.00
13 .282. 75

74.361.95

74,361.95

48,500.09

122,862.04

3,254.89
3,356.40
2, 801, 70
9.412. 99

15.00
267.75
13,000.00
13,282.75

Excess of Expend. over
Receipts

(4.476.15)

606.39

(3.869.76)

Excess of Expenditures over
Receipts for the fiscal
year to date - Trust Fund
Cash in Bank July 1, 1936 -
Trust Fund
Cash in Bank April 30, 1937
Trust Fund

3,869.75

7,472,75

3,602.99

(4?.102.16)

11.

Summary
General Fund Income
Experiment Sta. Inc.
Extension Div. Income
Trust Fund Income
Total

General Fund Expend.
Experiment Sta. Expend.
Extension Div. Expend.
Trust Fund Expend.
Total

995,067.61
328,849.68
667,412.61
3.130.18

105,365.14
69,288.78
11,803.31
124.71

1,100,432.75
398,138.46
679,215.92
3.254. 89

1,994,460.08 186,581,94 2,181.042.02

862,550,18 96,310,95 958,861.13
290,521.39 32,153.97 322,675.36
499,234.14 58,517.67 557,751.81
15.00 . 15 00
1,652,320.71 186,982.59 18

Excess of Income over Ex-
penditures 342,139.37

(400.65) 341,738.72

Excess of Expenditures over
Receit s for General Ledger
accounts (116,635.74)

Student Loan Fund Notes 2,606,97

Excess of Receipts over Ex-
penditures for the fiscal
year to d ate - Combined
Fund 22

8.110.60

(11,107.35)

481.68

(11,026.32)

(127,743,09)

3.088.65

217.084.28

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 April 30,
1937 - Combined Fund

217,084.28

320;4L6,25

Abstract of item shown on Statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $127,743.09".

Accounts Receivable

Sundry Accounts

Insurance Paid in Ad-
vance

Debit

92,393.87

35,335.72

13. 50
$127,743.09

Credit

12.

4. Recuisition Committee Report.

The Requisition Committee filed written report of its action
each week from April 1, 1937, to May 26, 1937, inclusive. The
report showed orders 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. 5628 to No. 6853.
The report was examined, and on motion and second the orders
named therein were ratified and approved and oayments on said or-
ders were authorized and approved.

The following additional budget appropriations were approved
and allowed: 8348.50, Buildings and Grounds; $229.94, repair of
railway switch; $159.00, Physics Building; q92.00, planting;
$1099.00, Physics Building; 8286.25, McVey Hall elevator; $190.00,
Music, paid to John Richardson; 846.70, supplies, Buildings and
Grounds.

Other budget additions shown in these Minutes
Johns Coal Company, 8608.80; Purnell Property, 83250.00;
DeHore Property, $6715.00.

5, Audit of Accounts.

The Committee appointed at the meeting of December 23, 1936,
to confer with Governor Chandler on the question of audit of Bus-
iness Office accounts stated that it was not ready to report, and
requested that time for report be extended to the June meeting of
the Executive Committee. At the request of Mr. James Park,
Judge R. C. Stoll was asked to substitute on the Committee for Mr.
Park.

On motion and second, It was ordered that College Requisition
No, 544, Order No. 5121, Division of Purchases, made to W. A. Hif-
ner, Jr., Lexington, Ky., Audit of Business Office LQc-
counts, year 1935-36, be cancelled because the character of audit
requested by that order is not deemed sufficient and satisfactory
by the Governor and the Board of Trustees. The Business Agent
was directed to give notice of this order of cancellation to the
State Division of Purchases.

13.

6. Election of Executive Committee and Officers of the Board.

This being the meeting at which the Executive Committee and
officers of the Board are elected, Mr. Hillenmeyer, seconded by Mr.
Cleveland, put in nomination to succeed himself, each of the present
members of the Executive Committee; namely, Richard C. Stoll,
Robert G. Gordon, James B. Andrews, James Park and R. Miller Hol-
land; Richard C. Stoll, to succeed himself as vice-chairman of the
Board; John Skain to succeed himself as Treasurer and D. H. Peak
to succeed himself as Secretary.

The Chairman requested Mr. Hillenmeyer to put the motion to
the Board. The vote thereon was unanimous, and record of the
election was ordered made in the Minutes.

7. Campus Book Store Report.

President McVey presented the report of the Campus Book Store
for six months ending December 31, 1936. It was ordered inserted
in the Minutes. Copy follows:

REPORT OF THE CAIVPUS BOOK STORE

July 1, 1936 -- January 1, 1937

Respectfully submitted,

(Signed) James M-orris
Manager.

SALES

July -- 3,746.84
August -------------------------------- 688,85
September ----------------------------- 33,781.11
October ------------------------------- 5,413.58
November ------------------------------ 2,688.66
December ------------------------------ 2,388.90

$48,707.94

14.

COMIISSION APPLIED

Gross Sales Commission ---------------------- $ 4,870.79

Exemptions and deductions --

Law Textbooks -------------- 883.77

American Library Association 4.72

Dr. M. M. White ------------ 61.90

Young and Averitt ---------- 19.50

Mr. P. K. Whitaker ------ 14.58

Dr. F. T. McFarland -------- 15.74

Dr. H. B. Holmes ----------- 5.36

Ike. B. L. Schick ----------- 10.45

Dr. E. Z. Palmer ----- --- 12.30

Dr. Harry Best ------------- 5.76
234.08

Net Cash Return to University 84,636.71

8. Campus Book Store Contract.

President McVey stated that a meeting of the Campus Book
Store Committee was held on Mvsay 4, 1937, and that at that meeting
an order was entered recommending to the Board of Trustees the re-
newal of the Campus Book Store contract with James E. Morris at
the expiration of the term of the present contract, December 31,
1937. Renewal was recommended for a term of three years, with
the following changes from the present contract; Mr. Morris is to
be permitted to pay students one-half original cost price for used
books and to sell the used books at 66-2/3 per cent of original
cost price. The present purchase price is 40 per cent of cost
and the present sale price is 66-2/3 per cent of cost. As this
change will result in a saving to students and a consequent loss
to Mr. M1Iorris, it was recommended further that the Commission on
Gross Sales paid the University by Mr. Morris be reduced from 10
per cent to 7- per cent.

The President then presented copy of the contract drawn ac-
cording to the recommendations of the Book Store Commaittee. The
contract was approved and the Business Agent was authorized to
sign the contract when properly signed by Mr. Morris.

15.

The contract authorized reads as follows:

THIS AGREEMVENT, made this 22 day of May, 1937, by and
between The University of Kentucky, party of the first part,
and James E. Morris, party of the second part,

WITNESSETH: That the parties hereto, in consideration
of the mutual covenants and agreements hereinafter set forth,
to be kept and terformed by the parties hereto, agree as
follows:

FIRST

The party of the first part agrees that he will, on
the 1st day of January, 1938, place the party of the
second part in charge of the operation of the store, here-
inafter called the "Book Store" which is located in McVey
Hall, on the campus of the University of Kentucky, and
shall cause to be turned over to the said party of the
second Part all of the stock and fixtures which are now
located in said store, subject to sales made subsequently
to this date and prior to said 1st day of January, 1938,

SECOND

The party of the first part further agrees, subject
to the provisions hereinafter contained, that the party
of the second part shall, for a period of three years,
retain control of said store and the sale and rental of
books, supplies, gowns, etc., in and from said store, and
to furnish to said second party the space now occupied,
or other suitable space for the operation of said store.

THIRD

The party of the second part agrees that he will
keep an accurate record of sales and inventory of said
store, and will, on the first day of each October and
January

(a) Pay to the party of the first part seven and one
half (7-1/2%) per centum of the gross revenue derived from
sales, rentals, etc., made through said store:

(b) Pay to the first party a sum of money equal to
the de