xt7j3t9d5k6d https://exploreuk.uky.edu/dips/xt7j3t9d5k6d/data/mets.xml Lexington, Kentucky University of Kentucky 19330419 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, 1933-04-apr19. text Minutes of the University of Kentucky Board of Trustees, 1933-04-apr19. 1933 2011 true xt7j3t9d5k6d section xt7j3t9d5k6d 

   Minutes of the regular Quarterly meeting of the Board of
Trustees, University of Kentucky, Wednesday, April 19, 1933.

     The Board of Trustees of the University of Xentucky met in
regular quarterly session in the President's office at the Uni-
versity on Wednesday, April 19, 1933, at 10:30 a.m.    The follow
ing mnem-bers were present: Governor Ruby Laffoon, Judge Richard
C. Stoll, Eugene T. Flowers, Commissioner of Agriculture, Dr.
W. W. Wash, Louis E. Hillenmeyer, Judge Robert G. Gordon, J. B.
Andrews, J. R. Rash, 0. 0. Graves, Miller Holland, G. 0. Wells,
E. 0. Robinson and Dr. George Wilson.    Meeting with the Board
were Frank L. McVey, President of the University, and D. H. Peak,
Secretary of the Board.

     1, Minutes Approved.

     The minutes of the meeting of the Board of Trustees of June
4, 1932 (No meetings were held September 20, 1932, and December
13, 1932, quorum not being present, but Executive Com.aiittee meet-
ings were held)and the minutes of the following meetings of the
Executive Committee, June 23, 1932; July 13, 1932; September 20,
1932; October 27, 1932; November 29, 1932; December 13, 1932;
January 18, 1933; February 21, 1933 and March 20, 1933, were ape
proved as published.

        President's Report.

     The Presidentts report was read and ordered to be recorded
in the minutes,   Referring to that part of the report relative
to the Alumni Association, the President was authorized to work
out the plan desired and refer it to the Executive Committee for
approval.   Report is in words and figures as follows:

          This meeting of the Board of Trustees is the regular
     meeting of the spring quarter.    As in previous meetings
     at this time of the year, there are a number of important
     matters to come before the Board, of which the budget is
     the outstanding one for consideration.    The other ques-
     tions are in part routine matters.    The affairs of the
     University are in as good condition as could be expected
     at a time like the present.    There axe no debts against
     buildings, except the amortization charges contracted for
     the erection in 1927 of two dormitories for men and the
     purchase on an annual payment basis of the warehouse on
     Limestone facing the main campus.    As these obligations
     are financed by annual payments they are not counted as
     a debt obligation.



     In 1930-1931 the income of the University f rom
State taxes reached a high point.  The amount was
61,137,000.  The following year this sum fell to
(P894,000, or a drop of 21.45a,  This year, 1932-33, it
is estimated that the amount coming from State taxes
will fall to $675,000, or a decline of 40/o since 1930-
31.   To meet this great decline three things have been
done: (1) Reduction of salaries 105;, (2) The increase
of fees 50%, and (3) the cutting of expenditures for
maintenance, repairs and equipment.

     The budget of this coming year 1933-34, must be
made on a still further drop in income, both from State
taxes and student fees.  From the best figures avail-
able State taxes will go down to $605,000 and student
fees to $195,000, possibly lower.   To keep the Univer-
sity abreast of its obligations and responsibilities is
a difficult problem.   I see no way of doing it other
than to withhold 55; of salary payments until the end of
the year.  If the University incom-e exceeds expectation,
the amount withheld can be paid to the members of the Uni-
versity staff.   I make such a recommendation reluctant-
ly, in view of the failure to pay salaries in part in
1932-33 and the cut of ten per cent now in effect.

     It will be recalled by those on the Board last year
that it was necessary to withhold payment of salaries
for two months and to pay but Mtl0 on each salary per
month for an additional two months.   This left the Uni-
versity for that year '495,000 in arrears and owing to its
staff that sum.  For the information of those who were
not on the Board at that time, and for the purpose of
refreshing the memories of those who were on the Board,
let me recall the facts.   The amount expected from the
State as budgeted in the year 1931-32 was eS930,000.  The
actual amount received was BS94,000, a difference of
$36,000.   In addition to this there was a general fund
overdraft on July 1, 1931-32, of v58,485, *09, and there
was also a note due the bank for $100,000, a loss in the
sale of college warrants of 4, 000, making a total of
!1202,485.O9.  In previous years the bank has been carry-
ing an overdraft running several years back.   At this
tLime conditions were such that this could no longer be
done in the matter of the note and in the imatter of the
overdraft.   Consequently, it was necessary to make pay-
ment of these specific items, resulting in the failure
to pay salaries described in the previous paragraph.
Conditions due to two things forced the bank to call for
payment.   One of these things was the change in the law
governing University income, and the other the general
financial situation in tbe country.   It became apparent
by February, 1932, that the University could not continue
to pay salaries as provided in the budget, so action was
taken to cut salaries 105-.  This action was followed
by tlOo on each salary for March and April and no salary



in May and June.   There is a solemn obligation to Pay
these back salaries.

Changes in the Board

     There are five new members on the Board of Trustees
appointed by Governor Laffoon.    They are: R. Miller Hol-
land, of Owensboro, to succeed H. M. Frohman, of Lexington,
for a tern ending in 1938; E. 0. Robinson, of Fort Thom-nas,
to succeed James a. Utterback, deceased, for a term end-
ing in 1934; G. 0. Wells, of Paintsville, to succeed
James W. Turner, for a term ending in 1938; G. 0. Graves,
of Georgetown, to succeed J. w. Finch, for a term ending
in 1938; Dr.George H. Wilson, of Lexington, to succeed
E. B. Webb, for a term ending in 1938.


     From time to time inquiries are made as to the nuhn
ber of employees at the University and the salaries paid
to them.   There are at the University, 1 president, 8
deans, 3 general officers, 97 professors, 21 associate
professors, 57 assistant professors, 88 instructors, and
203 other employees, including assistants, clerks and la-
borers.   The president has received a salary of 'l1,000
until 1931-32,   The amount now paid him is 510,000.   There
are three deans who receive between six and seven thousand
dollars ($6,000 and $7,000); four who receive between
*Q5,000 and 16,000, and one who receives $3,000.    The pro-
fessors' salaries range from $,3,000 to '4250; associate
professors from $2,500 to $3,500; assistant professors
from 02,000 to $3,000; instructors from 11400 to $2,200.
There is one professor on a twelve months basis who re-
ceives $5,000.    These men and women are payers of tax-
es.   Fifty-five per cent of them own their homes.   All
of them contribute to community chests and respond to
the different calls for money to finance charitable and
church efforts.   They are high type, hard-working, ef-
fective citizens.    In age this group ranges from 20 to
69 years, with the median between 35 and 39 years.    One
retires at the end of the year, Dean C. R. Melcher, and
two more reach the retiring age the following year.

Federal Relations

     Ruinors have been coining to me for the past week
that the federal appropriations for the support of exper-
iment work, the vocational education and agricultural ex-
tension, would be struck out of thre federal budget.   This
is alarming and disconcerting news to those who regard
these activities of high value to the State.     I asked



Governor Laffoon to write to the President.    I also
asked Mr. Richmond to do the same and I wired the
United States senators from Kentucky to use their good
offices to secure reconsideration of these matters.
It is inconceivable to me how an administration seeking
to do things for the people under farm relief bills
could destroy the very agencies that are needed to car-
ry on the work.   For fifty years the government and
the states have been working to develop the experiment
stations and for twenty years agricultural extension
has been conducted in the United States with very great
benefit to agriculture.   I have no plans to suggest as
to the future,   We do not know what action   will be
taken, but the mere suggestion is sufficient to raise
great anxiety about work that has had so much money,
intelligence and planning put into it.


     The budget of the coming year is a limited budget.
Little or no provision is made in it for repairs to
buildings.   Many of the buildings have not been painted
for seven years.   In view of such a situation, is it
possible to make contacts with the R. F. C. for money to
employ men to do painting? The interior of many of the
buildings should be painted.    The walls of McVey Hall,
the Chemistry building, the School of Education and Memo-
rial Hall should be painted. The cost of such work
would amount to about $6,000.    The exterior painting
which ought to be done on about twelve buildings would
amount to about $4,000 more.   We need a place for the
band and the radiQ station.    The space for these ac-
tivities exists in the warehouse, but the University has
no money with which to finance the work.    I am told it
would require q9,000 to provide room for the band and
the radio.   Is there any way to get the money from the
Reconstruction Finance Corporation? I hope the experience
and knowledge of members of the Board can give an an-
swer to this ouestion.

TrLps to Eastern and Western Kentucky

     I completed on Saturday the second oft wo trips I
have made into the State.    In the first trip to eastern
Kentucky I made twelve speeches in eight towm and spoke
to 3,000 people.   In the western nart of the State I
visited ten towns, made sixtbeen speeches to about 3,000



    people.   The purpose of these expeaitions was to
    carry a message to the people urging them not to
    injure the public schools by cutting the expendi-
    tures to such a point that the schools would be
    hurt.   In carrying out this purpose I came in con-
    tact with many alumni who are finding the Universi-
    ty a growing force in the State.   In the fifty-eight
    years of the University history 7,000 men and women
    have graduated from the University.   Of this number
    800 graduated during Doctor Patterson's administra-
    tion, a similar number under President Barker and
    the remainder, 5,400, received their degrees since
    1917.   This statement is very interesting, since
    it means that three-fourths of the graduates are
    22 to 37 years of age and just beginning to come in-
    to important places in their cormmunities.

          I found great interest in the University
    wherever I went, but the organization we now have does
    not function effectively.   The Alumni Association is
    not strong enough to carry the work and I am crlite sure
    the best way to dcal with the ruestions arising out of
    alumni relationship is for the University to carry on
    the work of making contacts and leaving the matter of
    class reunions, the organization of clubs to an asso-
    ciation.   The University would look to the associa-
    tion for advice and suggestion, but the responsibility
    of publicity contacts and leadership would rest with
    the University.   Here is a problem that should be care-
    fully considered and provision made to deal with it in
    the near future.

    3. The Financial Report.

    The Financial Report for March was received and ordered to
be recorded in the minutes:

                                             EXHIBIT 'EB"

               Statement of Income and Expenditures
                        Month of March 1933

                          Previously      Current        Year
                          Reported        Month          To Date

general Fund Income
Federal Appropriation    42,750.00                   12,750.00
Spec. Agr. Appro.        17,846.87                   17,846,87
Vocational Ed. Board     14,800.55          960.14   15,760.69
Bur. of Mineral and Top.
   Survey - M.isc, Rec.      696.41          1.25.03     821.44



Bur, of Mineral and Top.
  Survey - State Appro.    3,
State Tax                459,
Int, on Endowment Bonds    8,
Int. on Liberty Loan Bond8s
Student Fees             175,
Student Fees - Sum.Sch.   14,
Student Fees  U.H.S.       7,
Student Fees - El.Tr.Sch.  7,
Student Fees - Un. Ext.   18,
Misc. Receipts            15,
Rentals                    1,
Men's Dormitories         10,
              Total      799,

Instruction             541,
Adm. Exp. and Maint.    174,
Add. and Betterments       7.
              Total      72
Excess of Income over
Expenditures              75,

Patterson Hall Inco-me
  Board                    28,
  Misc. Receipts
  Room Rent   Sum. Sch.     1
                Total      29.;

 Expense                  20,
 Add. & Betterments        2  
                Total      22
  Excess of Income over
    Expenditures            7

General Fund Income       829,
General Fund Expend.      746
  Excess of General Fand
  Incoime over Expend.   82,
  Accounts Payable liqui.  (3~
  Excess of Exp. over Rec.
  for General Ledger Ac.   6,
  Excess of Rec. over Exp.
  for the fiscal year to
  date - General Fund     85,
  Excess of Receipts over
  Exp. for the fiscal year
  to date - General Fund
  Cash in Bank July 1, 1932
  - General Fund
  Cash in Bank March 31, 1933
  -- General Fhmd

279, 52
940, 04


  130.00   3,409.52
.0, 433.19 500,227.52
           8a, 644. 50
3,434.14 179,374,18
  510.00   7, 785.80
  115.00   7,296.25
2,268.35  20,863.69
2, 151.21 17 567.09
  231.10   1,926.36
  139.00 10.358.69

403, 98      50 497.16 849, 01;14

241.49       70,034.02 611,275.51
,910,50      16,679.28 191,589.78
715,16          699 76   8,414.92
867.15       87,413;06 811,280,21

,   _    _ (36,915.090) 38,620.93

520,26          905.00  29,425.26
172.64                     172.64
261_50    _              1726150
;954,40-        905.00  303859240

0472 44       2,755,54  23,225.98
080_12                   2_080.12
,552856-      2,153,-54  25, 306,10-

,401.84      (1,848.54)  5,553,.30

,358.38      51,402.16 880,760.54
419 _71      9,0166860 836,586.31

938.67      (38,764.44) 44,174.23
999.09)                 (3,999.09)

,193.24     (25,99o.08)(19 796,84)

,132.82      (64.754.52) 20,378.30

20, 378.30

(12, 274,36)




Experimlent Station Income
Hatch - Federal Appro.      11,250.00
Milk and Butter - Cash Rec.  6,268.33
  Dairy Cattle Sales             284.27
  Beef Cattle Sales
  Sheep Sales                    397.17
  Swine Sales                    274.05
  Poultry Sales                1, 678.38
  Farm Produce Sales           1,480.87
  Horticultural Sales            299.32
  Seed Test                      404.14
  Seed Inspection             10,292.75
  Rentals                      3,132,36
  Miscellaneous                  583.67
  Fertilizer - Fees            6,313.50
  Public Service - State Ap.  12,076.02
  Public Service - Misc.Rec.      13.14
  Feeding Stuffs - Fees       21,009.56
  Adams - Federal Appro.      11,250.00
  Serum - Sales                1,034.27
  Serum   Virus Sales             62.82
  Serum - Supply Sales           104;'55
  Serum  Misc. Receipts.          60.00
  State Appropriation         34,037.36
  Creamery - License Fees      4,490.00
  Creamery - Testers' Lic.     1,362.00
  Creamery - Glassware Tested    253.99
  Robinson - State Appro.      7,917.00
  Robinson - Misc. Receipts    3,444.54
  West Ky. - State Appro.      7,862.01
  West Ky. - Hisc. Receipts    3,553,88
  Purnell - Federal Appro.    45,000.00
  Nursery Inspection - Fees    1, 270.30
  Blood Test                     728.25
             Total           198,088.50

  684, 12
  14. 73
  831. 42

  (345 46)
  144. 67





   305, 20

   108. 50
14, 421,.26

   2991 00
 1, 549. 95
15, 613.72
3, 277.03
   593. 67
10, 078. 50
11, 250.00
    67. 02
  1, 412.00

Additions and Betterments
 Excess of Income over Ex-
   Excess of Expenditures ove
   Receipts for General Ledg
 Excess of Receipts over Ex
   Excess of Receiptw over Ex
   penditures for the fiscal
   year to date - Experiment
   Cash in Bank July 1, 1932
   Experiment Station
   Cash in Bawk Margh 31, 19,
   Experiment Station

180, 911, 57

17, 176.93
   1, 676.75 -


22,684.41 202,759.96
   586 50   1,42252-
23, 270.91 204,1 82,48

(8,849.65) 8, 327.28

(3.085,16) L1,A-08.41.)

(11,934 81) 6,918.87







Extension Division Income
  Federal Smith-Lever        148,:308.76
  Federal Add. Co-op.         31,000.00
  Federal Supplementary       53,091.04
  Federal Capper-Ketcham      36,800.98
  State Smith-Lever          80,366,18
  County and Other             1,881.56
                    Total   351,448.52

  Expense                    245,716.21

         53,091,. 04
  117.66   1,999.22
  117.66 351,566.18

32,317.55 278,033.76

Excess of Income over Ex-

Excess of Income over Ex-


pend. for the fiscal year
to date - Extension Div.
Cash in Bank July 1, 1932
Extension Division
Cash in Bank March 31, 1933 -
Extension Division

trust Fund Income
Student Loan rund
Student Notes Paid
              Total Receipts

Student Notes
 Excess of Expenditures
   over Receipts

17 35, 38

1,982. 75
2. '026. 05

(32,199.89) 73,532.42




      95.61    716.43
      157.85  1?891.23
      253.46  2,607566

      41l00    384.30
      278.00  2,260.75
      319800  2,645.05

      (65.54)   (37 !39


Excess of Expenditures over
Receipts for the fiscal year
to date - Trust Fund
Ca sh in Bank July 1, 1932 -
Trust Fund
Cash in Bank March 31, Iq33
- Trust Fund

  General Fund Income       829,358.38
  Experiment Station Inc.   198 ,088.50
  Extension Div. Income     351,448.52
  Trust Fund Income             620.82
                    Total 1,379S5162 22

General Fund Expend.
Experiment Sta. Expend,


1.308. 58


51,402.16 880,760.54
14,421,26 212,509.76
   117.66 351,566.18
   95.61     716.43
66.036,6tL445. 552.91

90,166. 60 836,586.31
23,270.91 204,182.48



Extension Div. Expend.
Trust Fund Expend.

Excess of Income over

Accounts Payable licui-

  Excess of Expend, over Re
  ceipts for General Ledge

Student Loan Fund - Notes

245,716.21  32, 317.55
      343.30       41.00
,173.390.79 145,796.06

206,125.43 (79,759.37)

(3,99 .09)

  7,869.99  (29,075.24)

  (249.37)   (120.15)



(3,r-9*. 09)



Excess of Receipts over Ex-
pend. for the fiscal year
to date - Combined Fund 209,746.96 (108.954.76)

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined

Cash in Bank and on hand July
1, 1932 - Combined Fund
Cash in Bank and on hand March
31, 1933 - Combined Fund

I 100, 792.20

100, 792.20

(6.611. 53)

94. 180.67

Abdtract of item shown on statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts 221 ,205.25.,"

Accounts Receivable

Insurance Paid in Advance

Sundry Accounts




30, 768.18


14, 358.94

14. 358.4  _
21, 205.25





     4. Sale of State .Varrants.

     The sale of state warrants reported below was approved:

                  Warrants Sold          April 4, 1 33

Face Vplue   No.   Per Cent 93    Date   Interest  Total

'1291. 33  F7893  $1178. 35     3/2/33    $5,74 %$184o09 Rob, Substa.
1325.31  F7894    1209.35       3/2/33     5.89 1215 .24 i.Ky. R
14143. 006  7821  12095.53       2/28/33   66.78 12372.31 Exten.@'
3241.21  F7823    2957.61       2/28/33   15.30 2972.40   Ex:Station
1833.33   F7824    1672.90      2/28/33   8.66   1681.56 Pub.Ser.

                                                *?20 6, 10
                  Warrants Sold          April 7, 1933

'34, 42QS. 2  F?822  o4,032.56   2/28/33 .22.75 ,.?4,062.31 Spec.Ag.
7,650.00 F7825     6, 980.63    2/28/33  39.32   7,019.95 Book Staqk.
                                                %~1, 082. 26

     5. Walter K. Patterson Beouest.

     At a regular meeting of the Board of Trustees of the University
of Kentucky, held in the City of Lexington, Kentucky, on the 19th
day of April, 1933, the following preamble and resolution were, on
motion duly made, seconded and unanimously carried, adopted, nane-

    Whereas, Walter K. Patterson, by Clause 16 of his last will
and testament  duly probated by the Fayette County Court in the State
of Kentucky and now of record in the Clerk's office of said Court,
bequeathed to the Trustees of the University of Kentucky in trust,
the sumn of Five Thousand Dollars (745000.) which became due to his
estate from the University of Kentucky at the time of his death; the
said Clause reading as follows:

          "To the Trustees of the University of K ntucky I
    bequeath in trust the Five Thousand Dollars (M$5000.)
    that will be due to my estate from the said University
    of Kentucky at my decease.   The income from this bequest
    shall be administered by the Student Loan Committee of
    said University for the use and benefit of needy and worthy
    students '-atriculated therein.  The sum herein bequeathed
    is fox permanent endowment and shall be invested by the
    aforesaid Trustees through the Business Agent of the Uni-
    versity in some good, safe, productive security, to be



     approved by my Executor, and only the accrued interest
     or income therefrom shall be loaned.   The interest or
     inco'me that accrues from loans of this fund to students
     shall be added to and augment the endowment fund.

         "Only such students as iseet the following recuire-
     ments shall be eligible to receive the use and benefit
     of thishecuest:

         "First: They must be members in good standing in
     evangelical churches.

         "Second:  They must be matriculated in and pursuing
     courses of study that lead to degrees either in the Col-
     lege of Agriculture or the College of Arts and Sciences
     or the College of Engineering.

         "Third:  They maust maintain in all their classes at
     least the graduation standard recuired by the University.

         "This becuest shall be forever known as 'The Janet
     Kennedy Patterson Memorial Student Loan Fund, founded
     and endowed by Walter Kennedy Patterson in remembrance
     of his rmother.fm

     And Whereas, the Executor of his will requires as a condition
precedent to the payment of said legacy, the acceptance thereof by
the Trustees end their agreement to hold the same in trust and to
administer the said fund and the inco-mne therefrom as directed in
said will:

     Be It Resolved, by the Trustees of the University of Kentucky
that they do now and hereby accept the said legacy under the terms
and conditions specified in the will of Walter Kennedy Patterson
and agree that the income shall be administered by the Student Loan
Co,.lrlmittee of said University for the use and benefit of needy and
worthy students matriculated therein and that the principal sum
shall be held for permanent endowment and shall be invested by the
Trustees through the Business Agent of the University of Kentucky
in some good, safe, productive security to be approved by the Exec-
utor and that only the accrued interest or incom.^e therefrom shall
be loaned.   The interest or income that accrues from loans of this
fund to students shall be added to and augment the endowment fund.

     Be It Further Resolved, t hat only such students as meet the
reQuirements specified in the above quoted Clause of the will of
Walter Kennedy Patterson shall be eligible to receive the use and
the benefit of this bequest.

     Be It Further Resolved, that this bequest shall be forever
known as the "Janet Kennedy Patterson Memorial Student Loan Fund,
founded and endowed by Walter Kennedy Patterson in remembrance of
his nother. "



     The Secretary of this Board is directed to certify a copy of
the foregoing preamble and resolutions under the seal of the Uni-
versity and to deliver the same to the Security Trust Company of
Lexington, Kentucky, as Executor of Walter Kennedy Patterson in
evidence of the Rcceptance by this Board of the aforesaid legacy
and its agreement to administer the same as above set forth.

     6. Unpaid Salaries 1231-1932 -  Attorney General's Opinion.

     The following opinion of the Attorney General in regard to
unpaid salaries, 1031-1032, was ordered incorporated in the min-

                               April 17, 1933

     The Honorable J. Dan Talbott,
     Auditor of Public Accounts,
     Frankfort, Kentucky.

     Dear Mr. Talbott:-

          I refer to your letter of March 27th, 1933, enclosing
     a letter from Superintendent James H. Richmond calling atten-
     tion to the fact that the unpaid salary account of the Uni-
     versity of Kentucky amounts to .915,23O.51, this deficit
     having occurred prior to July lst, 1 32 the actual deficit
     on that date being, as I understand,, .197,545.22, which
     was reduced by adjustments made after July 1st, 1932, to
     the sum of 195,230.51 as noted.    It is further stated
     in the letter that no funds for the operation of the Uni-
     versity for the year 1932-1933 have been applied to the
     payment of the 1931-32 unpaid salaries.

          Your letter of the 27th reads:

               "The report of the University of Kentucky
          shows that it is carrying quite a balance in
          unpaid salaries.   Enclosed is a copy of a let-
          ter written to Jim Richmond that gives me quite
          a bit of concern.

               "The administration is undertaking to live
         within its income and from bills presented we show
         that we are about doing it.    But, if the differ-
         ent departiments are allowed to present indebtedness



     created above their appropriations as a legal
     claim, it seems that everything that we might
     have done has been set aside.

          "I called Jim Richimond this morning and
     I learned that he will not be in town until
     Thursday.   I feel that he, you and I should
     meet and discuss this matter as soon as possi-

     We discussed this matter and it was my opinion verbally
expressed to you that the University could not expend a
greater amount than it received in any one year; in other
words, it could not exceed the appropriation made to it by
the Legislature.

     I now have your letter of the 14th of April which
reads as follows:

          "Mr. D, H. Peak, Business Manager of the
     University of Kentucky, was in to see me yes-
     terday and requested that I furnish him with
     your opinion pertaining to the balance that
     the University of Kentucky is carrying as an
     obligation against the state.

          "I informed Hr. Peak that I would reouest
     that you send me a written opinion regarding
     this matter so that I could send it to him,"

     It is provided in Section 401  of the Kentucky Stat-
utes, 1930 7dition, that a certain percent of the taxes
derived from real estate, franchises, personal property,
etc., and fifty percent of inheritance taxes be appropri-
ated for the use and benefit of the University of Kentucky.

     The University can expend only the amount derived
by it from the sources mentioned.    The exact amount of
income to which the University is entitled can not, of
course, be determined accurately until the close of the
fiscal year.   If the University has any surplus left at
the end of the present fiscal year, it may apply that sur-
Plus towards reducing the indebtedness created by it dur-
Ing the last fiscal year, inasmuch as it is not operating
upon a budget appropriation and in view of the faot that
it is appropriated a certain percentage of taxes derived
from real estate, personal property, etc., which it does
not have to turn back into the Treasury and which it may
expend before the close of the fiscal year.

                           Very truly yours,
                                (Signed)  Bailey Wootton
                                           Attorney General



     President HoVey was authorized to act in payment of such sal-
aries in his discretion, special conditions and circumstances war-
ranting such action.

     7. Audit.

     President McVey presented a letter from the State Inspector
and Examiner in regard to the audit of University books and ac-
counts.   The question was referred to the Executive Commuittee.

     8. Gross Sales Tax -- Campus Book Store.

     At the meeting of the Executive Committee, March 20, 1933,
the Business Agent was directed to take up with the State Tax Com-
mission the question of gross sales tax in Campus Book Store.
This was done at once and Commissioner Seldon R. Glenn referred it
to the Attorney General.   The opinion is as follows:

                                    April 4, 1933

     Hon. S. R. Glenn, Mlember
     State Tax Commaission
     Frankfort, Kentucky

     Dear Senator:

          Enclosed find letter which I have received from
     Mr. Peak, Business Agent, University of Kentucky.

          From the information contained in Mr. Peak's let-
     ter, I an of the opinion that MIr. Morris, the manager
     of the Campus Book Store, should pay sales tax to the

                                     Yours truly,

                                       S. H, BRO17N
                                       Assistant Attorney General

     The manager of the book store had previously made report and
sent check for amount of tax, so after the opinion was rendered,
the matter was closed.



     9. Fire Damage to Dwelling on Graham Avenue.

     There was a small fire in rented house at 132 Graham Avenue,
loss amounting to '%50.11.  The loss was entirely covered by in-
surance,   The insurance company has repaired the damage.

     10. Investment of Waddy Funds.

     It was ordered that the funds now on deposit in the Ftst Na-
tional Bank and Trust Company to account of Treasurer of University
of Kentucky, Robert D. Waddy Fund, amounting to .;2161.76, be in-
vested in state warrants.   The statement appearing in the mixiutes
of the Executive Committee of March 20, 1933, is in error.    The
total on deposit was inserted as amount of second deposit; the
checks received are as follows, .270.45, deposited December 3, 1932;
31891.31, deposited March 14, 1933 -- total -2161. 76.

     11. Bud