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. 2. 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 3. 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. Personnel 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 a, 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. Repairs 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 5. 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 Fiscal 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 6. 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, Expenditures 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.; Expenditures 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, 52 794.33 644.50 850.00 940, 04 415.54 275.80 181.25 598.34 415,88 695.26 219.69 4 130.00 3,409.52 .0, 433.19 500,227.52 8a, 644. 50 850.00 3,434.14 179,374,18 14,415.54 510.00 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) 8,103.94 7. 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 10.00 (345 46) 69.08 5.00 111.50 5,320.97 144. 67 10.00 3,765.00 3,)064,00 56.40 4.20 3.00 23.00 50.00 21.33 69.60 305, 20 95.00 108. 50 14, 421,.26 11,250.00 6,952.45 2991 00 831.42 397.17 284.05 1,232.92 1, 549. 95 304.32 515.64 15, 613.72 3, 277.03 593. 67 10, 078. 50 12,076.02 13.?14 24,073.56 11, 250.00 1,090.67 67. 02 107.55 60.00 34,037.36 4,513.00 1, 412.00 275.32 7,917.00 3,514A14 7,862.01 3,859,08 45,000,00 1,365,30 836.75 212,509.76 Expenditures Expense Additions and Betterments Total Excess of Income over Ex- penditures Excess of Expenditures ove Receipts for General Ledg accounts Excess of Receipts over Ex penditures Excess of Receiptw over Ex penditures for the fiscal year to date - Experiment Station Cash in Bank July 1, 1932 Experiment Station Cash in Bawk Margh 31, 19, Experiment Station 180,075.55 836.02 180, 911, 57 17, 176.93 r er 1, 676.75 - 18,853.68 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 6,918.87 (5.303.43) 1,535,44 - 8. 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 Expenditures Expense 245,716.21 148,308.76 31,000.00 53,091,. 04 36,800.98 80,366.18 117.66 1,999.22 117.66 351,566.18 32,317.55 278,033.76 Excess of Income over Ex- penditures Excess of Income over Ex- 105,732,31 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 Expenditures Expense Student Notes Total Excess of Expenditures over Receipts 620.82 17 35, 38 2.354.20 343.30 1,982. 75 2. '026. 05 (32,199.89) 73,532.42 73,532.42 7,737968_ 81,270.10 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 28.15 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 Summary 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, 746,419.71 180,911.57 (37.39) 1.308. 58 1,271.19 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 9. Extension Div. Expend. Trust Fund Expend. Total Excess of Income over Expenditures Accounts Payable licui- dated Excess of Expend, over Re ceipts for General Ledge accounts 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) 278,033?76 384.30 1.319.186.85 126,366.06 (3,r-9*. 09) (21,205.25) (369.52) 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 Fund 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 Surplus Credit Debit 30, 768.18 383.01 14, 358.94 4,413.00- 35;564.19 14. 358.4 _ 21, 205.25 14,358.904 - 10. 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- ly: 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 11. 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. " 12. 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- utes: 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 13, 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- ble." 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 14. 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 State. 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. 15, 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