<pre style="white-space: pre-wrap">xt7jq23qvw5h https://exploreuk.uky.edu/dips/xt7jq23qvw5h/data/mets.xml Lexington, Kentucky University of Kentucky 19320113 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, 1932-01-jan13-ec. text Minutes of the University of Kentucky Board of Trustees, 1932-01-jan13-ec. 1932 2011 true xt7jq23qvw5h section xt7jq23qvw5h 


     Minutes of the regular monthly meeting of the Executive
Committee of the University of Kentucky, Jsauary 13, 1932.


     The Executive Cormittee of the Board of Trustees of the
University of Kentucky met in regular monthly session in the
office of President MoVey at 10:30 a. m.e Wednesday, January
13, 1932.   The following members were present: Judge Stoll,
Mr. Park, Mr. Andrews, and Mr9 webb.   Meeting with the Com-
mittee were Frank L. McVey, President of the University, and
Wellington Patrick, Secretary of the Board.

     1. The minutes of the previous meeting were approved add
published.

     2. Insurance.   Mr. Thomas Scott of the firmn. of Klair and
Scott, appeared before the Committee to make a statement regard-
ing the insurance carried by the University.   He stated that
the five-year contract for insurance carried by the University
expires March 14, with the exception of the insurance carried
on McVey Hall which expires January 25, 1932.   He also sug-
gested that a revaluation of the buildings and contents be
made.   The matter was discussed and a motion was made, second-
ed, and carried, authorizing the President of the University
and the Business Agent to have a valuation placed immediately
on buildings and contents of the University and Experiment Sta-
tion; this appraisal to be for the purpose of insurance and to
be made by such person as may be determined.     It was also di-
rected that the President and Business Agent be authorized to
place insurance on McVey Hall at their discretion,

     3. Report of the Business Agent.  The report of the Busi-
ness Agent was read and ordered incorporated into the Minutes,
The report was as follows:


                                     EXHIBIT "B"


           Statement of Income and Expenditures
                 Month of December - 1931


                          Previously      Current      Fiscal
                          Reported        Month        Year
                                 _______  __________ _  To  Date

General Fund Income
  Fed. Appropriation     429 750.00                 42, 750.00
  State Tax             350, 662.25    37,654.12   3883316.37
  Int. on Lib. Loan
     Bonds                  850.00                      850.00


2.


Int. on Endowment
  Bonds                 47322.25
Student Pees           76,814.33
Student Fees - Surmaer
  School               46,844'.15
Student Fees - Un.
  H. S.                 6,430.00
Student Fees - EEl. Tr.
  School                6,581.05
Student Fees - TJniv-
  ersity Extension     14,s428.00
Misc, Receipts         14, 745. 14-
Rentals                 1,610.90
Men's Dormitories      12,133.38
             Total    578-171.45


           4 ,322. 25
 (172.35) 76,641.98

          46,844.15

          6 430.00

1 125. 00  7,706.05


1,9 19. 29
1, 089. 13
   291. 50
   374 70
41.944. 39


1S6347.29
15Y834.27
1, 902.40
12, 171. 08
22.,21584


Expenditures
   Instruction
   AdrM. Exp. & Maint.
   Additions and Better-


ment s


Total


Excess of Ex~.r over
   Income


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

Expenditures
   :xpense
   Acde. & Betterments
                Total

   Excess of Income over
     Expenditures

General Fund Income
General Fund Expend.


378,577.26
198,911.50


83,352.70
27,443.16


92,423.21    3, 167. 08
669',9,11.97  113, 962.94


(91,740e 52)


33, 514.48
   147. 20
 4,, 777. 75
 38,439.43


 18,315.55
 8,844- 25
 27,159.80


 _,3279.63-

616,610.88
697,071.77


4L61,929.96
226, 354.66

95590S 29
7832874,91


(72m.018 55)(163, 759.07)


   216.00   33, 730.48
     7.15      154.35
             4 777.75
   223.15   38 662.58


 5 305.56   23 621.11
              8S844.25
 59305,56   32,465.36


 ( 5, 0828 41-)  6y197.22

 42 1674 54 658,778.42
1191268i50 81-6,340.27


Excess of General Fund
Expenditures over In-
come                 (80,460.89)

Excess of Receipts over
Expenditures fox General
Ledger Accounts       ?\21, 426.,45


(77,100. 96) (157,sa501e85s)


93,416b90  314,843.35


3.


Excess of Receipts over
E4xpend. for the fiscal
year to date - General
FuLd


140,965.56     16, 315.94  157,281.50


Excess of Receipts over
Expenditures for the fis-
cal year to date - General
Vu-d
Cash in Bank July 1, 1931 -
General Fund
Cash in Bank Dece-mber 31, 1931 -
* General %-nd


Trust Fun.d Income
Student Loan Yund
  Student Notes Paid
             Total Receipts _


Expenditures
Expense
  Student Notes
             Tot al

 7xceqs of Receipts over Ex-
   penditures


  848.18
1 A 847, 32
2.695.50


  295.05
,2 300.00
2.595.05


100.45


445:. 10
684e83


157,281.50

(107,858.56)

  49,422.94:


1 293.28
2. 532. 15


1" 129e 93  3 825.43


   44.00      339.05
   551.00    23851.00
   595.00    3 190 05


   534. S3     635.38


Excess of Receipts over Ex-
penditures for the fiscal
year to date - Trust Fund
Cash in Bank July 1, 1931 -
Trust Fhmd
Cash in Bank December 31, 1932 -
Trust Fund


Experiment Station Income
  Hatch   Federal Appro.
  Milk and Butter - Cash Rec.
  Beef Cattle Sales
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales
  Farm Produce Sales
  T-orticultural Sales
  Seed Test
  Rentals
  Hi scellaneous
  Fertilizer - Fees


7 , 500. 00
5, 291. 88
  4:02.00
  86.45
  20 32
  154.38
1,474.22
  370.01
11,031. 55
   1.7.00
   746. 35
   996. 33
4,820.00


  635.38

1,4 17.64


2,053.02


1,043. 36
  350. 70
  29. 58
  285.00
  282.51
  170. 73
  105. 18
  42. 50
    2.00
2, 159, 67
  919.05
  10. 00


7,500.00
6 ,335.24
  752.70
  116.03
  305.32
  436.89
1, 644.9 95
  475.19
1,074.05
   19.00
2, 90b. 02
1,915.38
4,830.00


4.


Public Service - State
  Appropriation
Public Service - Mise.
Feeding Stuffs - Fees
Adams - Federal Appro.
Serum - Sales
Seruim- Virus Sales
Serum - Supply Sales
Serum - Misc. Receipts
State Appropriation
Creamery - License Fees
Creamery - Testers Lic.
Creamerv - Glassware
  Tested
Robinson - State Appro.
Robinson - Misc, Rec.
West Ky.- State Appro.
West Kr. - Misc. Rec.
Purnell - Federal ApDro.
State Appro. - Patterson
  War-m Pur.
Nursery Inspection -
  Fees
Nursery Inspection -
  State Appro.
Poultry Improvement
Cream Grading
Blood Test
              Total    _


Expenditures
  Expense
  Adeitions and Better.
                 Total


Excess of Expend. over
  Inc ome
1930-10931 accounts pay-
  able liquidated during
  current year


3s 666.66
    38. 0
14 495. 60
7, 500. 00
1,9 54-8. 43
    62.90
    68. 75
       41
 6,9687. 84
 5,442. 50
 1, 658. 00

    117. 07
 3 038. 02
    420. 34
 4,523.88
     43. 31
30) 000.00

25, 000.00

1,200.00

    554. 85
 1, 230. 00
 4,850.00
    751. 75
136 0,099.40


177, 866.4-3
  1, 454, 39
179 , 320. 82


2 775. 25

  210.00
  11. 70
    4.25
    1.00
    49. 50
    54. 00

    30.21

    79,75


    55.00


    161.75
83 832. 69


29,564.66
   145.06
29, 709 72


(43,221.42) (20,877.03)


(12, 223.80)


37 68 .66
    38. 60
17, 270.85
7, 500. 60
1, 758.43
    74. 60
    73.00
    1. 4-1
 6, 967. 84
 5, 492.00
 19 712. 00

   147.28
 3,038.02
   500.09
 4,523.88
    43.31
30, 000.00

25, 000.00

1 255.00

    564.85
  1 230.00
  4,850.00
    913.50
144,932.09


207, 31.09
  1. 599.45
209,030. 54


(64,098.45)


(12,223.80)


Excess of Expenditures
  over Receipts         (55,-45.22) (20, 877.03)
Excess of Expenditures
  over Receipts for the
  fisca-l year to date -
  Experiment Station
Cash in Bank July 1, 1931 -
  7xperiment Station
Cash in Bank December 31, 1931
  - Experiment Station


(76,322.25)


(76,322. 25)

60.174.95

(168,147. 30)


5.


Extension Division Income
  Federal Smith-Lever     74,155. 27
  Federal Add. Co-op.     15,500.00
  Bederal Supplementary   26, 545.87
  Federal Gapper-Ketcham  18,400.59
  Urban Gardens Fund       2, 500.00
  gounty and Other           898. 17
                Total   137,799.90

iExpenditures
  Expense                177,921.49

  Excess of Expenditures over
    Income               (40,121!59)
  Excess of Expenditures
    over Income for the
    fiscal year to date -
    Extension Division
  Cash in Bank July 1, 1931
  - Extension Division
  Cash in Bank December 31,
  1931 - Extension Div.


   375. 36
   675. 36


39, 511. 63


(38,836.27)


74, 155. 27
159500.00
26, 545.87
18 , 400. 59
  2, 500. 00
  1 ,373. 53
138, 475.26


217,433.12


(78,957.86)


(78,957.86)

6.905.79


(72,052.07)


Summnary
  General Fnd Income
  Trust Fund Income
  Experiment Station izn.
  Extension Div. Inc.
                Total


616, 610. 88
    848.18
136F 099.40
137 799.90
891, 358. 36


General Fund ExpEnd.   697,071.77
Trust Fund Expend.         295.05
Experiment Station Ex-
penditures           179,320.82
Extension Div. Zxpend. 177,921.49
              Total 1.QE5A41 609. 13


42,167.54
  445.10
  8,832.69
  675.36
52. 120.69


119,268.50
     44.00

 29, 709. 72
 39 511, 63
188,533.85


658, 778.42
   1, 293.28
 144,932.09
 138j.475.26
 943 479.05

 810 , 340.27
      339. 05

 209, 030.54
 217., 433.12
1, 2e34 12. 98


_     ~ 1.4..42.9


Excess of Expoenditures over
   Income,-'-,-,   . - -( 3;350o 77)
1930-1931 accounts payable
  liquidated during Cur-
  rent Year            (12,223.80)

  1xcess of Receipts over Ex-
  penditures for General Ledger
  Accounts               221,426.45
  Student Loan Fund -


Notes
Excess of Receipts over
Expend. for the f iscal
year to date - Comnbined
Fund


(4 52. 68 )


(136,413.16)


(299,663.93)


(12,223.80)


93),416.90


314,843.35


133.83      (318.85)


1 (4,3862.43)  2 ,636.77


J


45. 4993. 20


Excess of Receipts over
Txpenditures for the fis-
cal year to date - Com-
bined Fund
Cash in Bank and on hand July
1, 1931 - Combined Fund
Cash in Bank and on hand De-
cember 31, 1931 - Conmbined
Fund


2,636.77

to37 ,360.18)


(34 -723.41)


Abstract of item shown on
Statement of Income and
Expenditures as "Excess
of Receipts over Expendi-
tures for General Ledger
Accounts $314, 843. 35"


           Debit


Accounts Receivable

Insurance Paid in Ad-
   vance


Credit

32, 524.19


3, 706.13


Sundry


Notes Payable


3, 706.13


11,025.29

275,000.00

318, 549. 48
  3 .706. 13
314,Y843.35


     4* Financial Situation at the Present: A special report
from the Business Agent giving an estimate of expendituTes for
the Univerpity until July 1, 1932, was presented and on motion
ordered received and filed.

     5. Payment of Note,   The action of the Business Agent and
Chairman of the Executive Committee in borrowing $40, 000 from
the First National Ba-nk and Trust Company of Lexington on de-
mand,dated January 5, was approved and the cante ordered paid
on this date January 13, 1932.

     6. Tax on Warehouse0   A report from Mr. J. Pelhan Johnston
regarding the tax on the warehouse owned by the University was
presented and on motion duly seconded, ordered incorporated into
the minutes.   The report was as follows:


7.


                              'I January, 1932


Hr. D. H. Peak
University of Kentucky
Lexington, Iy.

Dear Sir:

     In compliance with your request in regard to the
taxes on the warehouse property purchased by you from
the Central District Warehousing Corporation, I have
examined my files and find that, under the terms of
the contract with said warehousing corporation, you as-
sumed and agreed to pay as a part of the rental of said
property all taxes assessed against the same, and paya-
ble during the year 1931.

     The small piece of property which you purchased out-
right at the time this deal was made seems to have been
omitted from taxation for the year 1931.  YWe arrived a.t
this conclusion in the following manner:

     The total consideration paid for said property was
approximately 124,000.00.   Property is generally as-
sessed at eighty per cent of its value, which would make
the property assessable for approximately 390X,000.  You
paid for the piece purchased outright, the sum of
$25,000, eighty per cent of which would be $20,000; de-
ducting this $20,000 from $90,000 leaves a total of
;7o,000, at which the property is at present assessed.

     There are two possible ways to obviate this-heavy
taxation,   First, if the University could pay a suf-
ficient amount under the terms of its contract to procure
a deed to the same from said warehousing corporation:,
this property would no longer be subject to taxation.
If this can not be done, the same could be taken up
with Mr. C ;rpenter of the said warehousing corporation
and with Mr. William White, Tax Assessor of Fayette
County, and have the assessed value of said property
reduced.

     Hoping that this will answer your inquiry in a
satisfactory manner, I am,

                          Yours very truly,

                             J. P. Johnston


JPJ*HA


8.


     7. Campus Book Stores  A recommendation was presented from
the Faculty Committee on the Campus Book Store, recommending
the continuance of the agreement with Mr. Je E. orris -for a
period of three years on the same basis.   The motion was car-
ried.

     8. Grantin& of Degreeso   A committee of the Board consist-
ing of Judge Stoll and Mr. Park was appointed with power to act,
for the purpose of passing on degrees for the mid-year commence-
ment.

     9. Opinion of Attorney General -  Borrowing honey.   The
following opinion from the Attorney General of the State regard-
ing the borrowing of money for the University a.s read and or-
dered incorporated into the minutes;


                                    October 28, 1931


     Judge Rainey T. 'Tells, President
     Murray State Teaclhers College
     Murray, Kentucky

     Dear Judge:

               Your 'letter of October 8, 1931, received and
     is copied in full herein.

               "In the maintenance, management and opera-
          tion of the State Teachers Colleges you -ill
          kno-7 by past experience that at certain periods
          it is necessary for the Boards of Regenits to
          borrowr certain sums of money to meet the operat-
          ing expenses until the sheriffs settle with the
          State Auditor at the end of the year. -In order
          that .Je may be able to present this matter in
          legal form to our banks,  I will be pleased to
          have you write me an official opinion that the
          Board of Regents has powier to borrow money for
          the operation and maintenance of this institu-
          tion, limited only by the revenue set apart by
          the State and wrhich -Nill be received by it dur-
          ing the fiscal year.


9.


          "We would not consider extending such in-
     debtedness beyond the hevenue that will be re-
     ceived on or Ibefore July first of the budget
     year.   Probably this indebtedness might be ex-
     tended so far as the millage tax is concerned,
     but I only desire your opinion as to the revenue
     which is provided for this purpose for the fiscal
     year, including any annual appropriation made
     for that purpose and the millage tax which is
     set artvt generally for this object.

          "'ay I refer you to the Acts of the General
     AsseYbly of 1924, creating the Board of Regents
     for this institution.   The language of this Act
     provides, tSaid Boards shall be bodies incorpo-
     rate with perpetual succession and power to con-
     tract and be contracted with, to sue and be sued,
     to plead and be impleaded, etc.I   This act has
     been amended two or three times since this col-
     lege has been established, but this language re-
     mains the sane in each amended Act.   As you know,
     this is the general phraseology used for incorpo-
     rating bodies and empowering them with full author-
     ity to operate, manage and control the business
     or institution placed in their charge and in all
     acts necessary for this purpose.   The courts
     have held that if the incorporating Act undertakes
     to specify the particular powers designated to
     the governing body, that the authority would be
     limited to the specific powers designated; but,
     when general authority is given as in the above
     language, then the governing body has full power
     and authority to do all things necessary for the
     successful operation of said institution or bus-
     iness.

          "If you will please Krite me in order that
     I may present it to the Board and our bank advis-
     ing that under this corporate authority they have
     the power to contract for the loan of maoney, I
     shall appreciate it.   Will you please get me this
     information immediately, as it is necessary to
     have same at the earliest moment.-'

     Section 4535b-4a, Kentucky Statutes, Carroll's 1930
Edition, provides that the governing body, the Board of
Regents of the Murray State NTormnal School, shall be a
body "incorporate with perpetual succession and power to
contract and be contracted with, to sue and be sued, to
plead and implead, to receive by any legal mode of con-
veyance property of any description, to have and to hold
and enjoy the same in their official capacity, to pur-
chase or sell and convey property necessary for the prop.-
er Management of their resoective institutions, and to


10.


conde.-in real estate in t he sanme manner as 7rovided by
law lin the condemnation of lands for railroad purposes
to have nower to adopt by-laws, rules and reguiations
for the government of their nembers, officials, agents
and employes; and with full power to make and adopt all
rules and regulations for the efficient management and
control of their respective schools."

     Said section further provides that the "Imanagement,
control and supervision of the Hurray State Normal School
is hereby vested in the board of regents of the M.urray
State Normal School.11  This section of the Kentucky
Statutes vests in the Board of Regents of the Murray
State Normal School broad general corporate powers in ad-
dition to the express Powers conferred by said section.
All other corporate powers ordinarily exercised by oorx
porations which are not limited or prohibited by either
statutory or constitutional provision, which are reason-
ably necessary in the performance of the duties of said
Board in the management, control and operation of the
Murray State Normal School, are implied from the broad
language used in said section of the statute.   In the
absence of any constitutional or legislative limitation
or prohibition, said Board, in the exercise of its gen-
eral corporate powers, would have the r ight and authori-
ty to borrow money.   There is no legislative act limits
ing or Prohibiting the exercise of such power of the
Board of Regents, except that the Board must not incur
obligations during any fiscal year in excess of the
money appropriated and allocated to s aid Board by the
General Assem-nbly for that fiscal year and which it is
reasonably certain will be received during the fiscal
year.   Section 1992a-185, Xentucky Statutes, Carroll's
1930 Edition.   Therefore, the question is narrowed down
to a consideration of whether tShere is any constitutional
limitation or prohibition on the authority of the Board
to borrow money in anticipation of the revenues which
have already been levied by the General A.\sembly and
specifically appropriated to said Board and which it
is reasonably certain will be collected during the fis-
cal year which will end June 30, 1932.

     hnile the Board of Regents of the Hurray State
Normal School is a separate corporate entity, it is
nevertheless an agency of the Commonwealth of Kentucky
and its acts, within the scope of its authority, are
the acts of the Oomnon.vealth of Ke-ntuckyo


II,


     Each department of the State government is required
to conduct its business on the basis of the revenue pro-
vided by the General Assembly and appropriated to that
department, and which it is reasonably certain will be
received during the fiscal year.   State Highway Commission
v. Coleman, 236 Ky. 444$ 33 S. W. (2d) 318; Billiter &
Wiley v. State Highway Commission, 203 Ky. 15, 261 S. W.
855; Section 1992a-18, Kentucky Statutes, Carrollts 1930
Edition; 1928 0. A. G. No. 68.

     In the case of Rhea v. Newinan, 153 Ky. 604, 156
S. .7. 154, 158, the Court of Appeals of Kentucky stated
that:,

          "Revenues of the State assessed and in process
     of collection may be considered as constructively
     in the State treasury, and may be appropriated
     and treated as though actually and physically there;
     and an appropriation of them by the legislature does
     not constitute an incurring of indebtedness within
     the meaning of Section 49 of the Constitution."

     Section 49 of the Kentucky Constitution provides that;

          "The general assembly may contract debts to
     meet casual deficits or failures in the revenue;
     but such debts, direct or contingent, singly or in
     the aggregate, shall not at any time exceed five
     hundred thousand dollars ( $SsBOO00o.) and the
     moneys arising from loans creating such debts shall
     be applied only to the purpose or purposes for which
     they were obtained, or to repay such debts; Provided,
     The General Assembly may contract debts to repel in-
     vasion, suppress insurrection, or, if hostilities
     are threatened, provide for the public defense.I

     Section 50 of the Kentucky Constitution provides that:

          "No act of the general assembly shall authorize
     any debt to be contracted on behalf of the Common-
     wealth except for the purposes mentioned in Section
     49, unless provision be made therein to levy and
     collect an annual tax sufficient to pay the interest
     stipulated, and to discharge the debt within thirty
     Years; nor shall such act take effect until it shall
     have been submitted to the people at a general elec-
     tion, and shall have received a majority of all the
     votes cast for and against it: Brovided, The gen-
     eral assembly may contract debts by borrowing money
     to pay any part of the debt of the state, without
     submission to the people, and without making pro-
     vision in the act authorizing the same for a tax to
     discharge the debt so contracted, or the interest
     thereon."


12.


     Section 171 of the Kentucky Constitution provides in
part that:

           "The general assembly shall provide by law
     an annual tax, which with other resources, shall
     be sufficient toc efray the estimated expenses of
     the Commonwealth for each fiscal year."

     The Court of Appeals has uniformly held that Sections
49 and 50 of the Kentucky Constitution apply only to in-
debtedness created in excess of the revenues of the State
and which are assessed and in the process of collection,
and which it is reasonably certain will be received into
the State treasury during the fiscal year or biennial
period in which the obligations and debts involved are cre-
ated.   In other words, it has been uniformly held that
debts or obligations may be created in any fiscal year in
anticipation of the revenues already assessed and appropri-
ated and which it is reasonably certain will be collected
during that fiscal year.   Billiter & Wiley v, State High-
way Commission, supra; James v. State University, 131 Ky.
170, 114 S. W. 767; Rhea v. Nmeman, supra, and nu~merous
other cases which are cited in the annotations under Sec-
tions 49 and 50 of the Kentucky Statutes as compiled in
Carroll's 1930 Edition of the Kentucky Statutes.

     Since there is no doubt as to the authority of the
Board of Regents to incur contractual obligations and
debts in anticipation of revenues already appropriated
by the Legislature and which it is reasonable to antici-
pate will be collected during the fiscal year, there can
be no distinction between other classes of contractual ob-
ligations and obligations issued in thre form of notes ex-
ecuted for borrowed money in so far as the question here
involved is concerned.

     Therefore, we are of the opinion that the said Board
of Regents may borrow money in anticipation of the revenues
which have already been appropriated to that Board by the
General Assembly for the current fiscal year and which are
sufficiently definite and certain an to come within the
rule above quoted from the Rhea v. lTew-man case and the
Billiter & Wiley case as to anticipating revenues.

     By section 43 of Chapter 164 of the Acts of the Gen-
eral Assembly of 1930 there was appropriated to the Murray
State Teachers College "the funds now authorized by law,
or that may hereafter be authorized by law, in distribution
of the state revenues for the maintenance and operation of
said institution."


     There was also appropriated by said section for the
fiscal year beginning July 1, 1931, and ending June 30,
1932, "forthe use and benefit of said institution for the
payment of the construction, heating and equipment of a
library and/or boyst dormitory, and the extension and in-
stallation of the water, light and sewerage systems and
other capital investments and improvements at said insti-
tution" the sum of $l25, 000.00*

     By Section 4019, Kentucky Statutes, 1931 Supplement,
bing Chapter 152 of the Acts of the General Assembly of
1930, the Legislature appropriated two per cent of the
ad valorem taxes imposed by said section 'plus six and
one-fourth per cent (ej%) of the inheritance taxes, for
the support and erection of buildings for the Murray State
Normal School and Teachers College at Hurray."

     By Section 4535b-42, Kentucky Statutes, the Legisla-
ture has impliedly granted to the Normal Schools all mon-
eys which may be derived from tuition or other fees paid
by students.

     By Section 4535b-5, Kentucky Statutes, there was ap-
propriated by the General Assembly of Kentucky of 1922 the
sum of 830,000.00 annually and this appropriation not
being repealed was expressly recognized and continued
by the General Assem.tbly of 1930 by the enactment of Sec-
tion 43 of Chapter 164 of the Acts of the General Assembly
of 1930.

     The foregoing revenues are all that have been appro-6
priated by the General Assembly to said School, and by
virtue of said appropriations said Board of Regents may
obtain from the Auditor of Public Accounts Warrants upon
the State treasury during the present fiscal year which
will end June 30, 1932, for the following amounts, less
amounts already drawn, to-Vit.:

     (a) Two per cent of the estimated amount of ad valorem
taxes levied under Section 4019, Kentucky Statutes, which
it is reasonable to anticipate will be collected and paid
into the State treasury prior to June 30, 1932.

     (b) The amount of $125,000.00 appropriated by Section
43 of Chapter 164 of the Acts of 1930.


13.


14.


     (c) $30 000.00 appropriated by the General A sembly
of 1922 by CHapter 10 of said Acts, being Section 4535b-
5, Kentucky Statutes, Carroll's 1930 Edition, recognized
and contimned in effect by the 1930 session of the General
Assembly as Section 43 of Chapter 164 of the Acts of 1930.

     (d) Warrants for six and one-fourth per cent of the
inheritance taxes as and when collected and paid into the
State treasury.  The amount of inheritance taxes can not
be anticipated in advance of collection because of its un-
certainty and the rule as to anticipated revenues assessed
and in the process of collection can not be applied to
the inheritance taxes.   Overall v. City of 1adisonville,
125 Ky. 684, 102 S. W. 281, and Billiter & Wiley v. State
Highway Commission, supra.

     The revenues authorized to be received by the Board
of Regents during the present fiscal year as stated in
clauses (a), (b) and (c), next hereinabove, and all mon-
eys -,which may reasonably be expected to be collected dur-
ing the present fiscal year as tuition or other fees paid
by students may be anticipated in arriving at the amount
of obligations and indebtedness which said Board of Regents
may incur during the present fiscal year.   Some considera-
tion may also be given to the inheritance taxes which will
be received by the Board, but the aanount thereof is too
indefinite and uncertain to estimate with any degree of
certainty.

                          Very truly yours,

                              Clifford Eo Smith
                              Assistant Attorney General.


Approved:

J. W. Cammack.
Attorney General


CES: AD.


15.


    10. Opinion of the Attorney General -- Free ScholarshiPsp
The following from the Attorney General regarding the free schol-
arships was read and ordered incorporated into the minutes:


                                  October 21, 1931.


     Dr. H. L. Donovan
     Richmond, Xentucky

     Dear Friend:

          Your letter of October 19 received and Is copied
     hereint

               t"The question has frequently arisen since.
          I have been here relative to our awarding scholar-
          ships Covering free board and root rent, to worthy
          students who might like to attend this institutions
          This request has been put to me on several occasionsi
          I have answered it by saying that the State provided
          free tuition to all Kentuckians but did not permit
          the College to spend the revenue it receives for
          defraying the cost of board and room rent for those
          who desire to attend.

               "I should like your opinion as Attorney Gene-
          eral, on the legality of awarding scholarships that
          would cover the cost of board and room for students.
          Would it be possible -  if it seemed expedient
          for the Board of Regents to award a number of schol-
          arships out of the revenue which we receive from the
          State?"

          You have submitted an important question and I -Till
     endeavor to answer it by calling your attention to the
     following provision in Section 4019, Kentucky Statutes,
     1930 Edition, viz:

               "Sixty-nine per cent (69 p) shall be used for
          the support of the common schools;
               "Three and five-sixths per cent (3 5/6&,o) for
          the use of the sinking fund;
               "Six and seven-tenths Der cent (6 7/lOb;o) there-
          of, plus fifty per cent (50Qo) of the inheritance
          taxes collected, for the support and erection of build-
          ings for the University or' Kentucky, at Lexington;


16


          Tw.vo and one-third per cent (2 1i/,z'o) thereof,
     plus twelve and one-half per cent (12-2-ao) of the inn-
     heritance taxes, for the support and erection of
     buildings for the Eastern Kentucky State Yormal
     School and Teachers College, at Richmond;"

          "Two and nineteen-thirtieths Per cent (2 19/3CFo)
     thereof plus twenty-five per cent  25%/) of the inher-
     itance taxes for the support and erection of build-
     ings for the Vestern Kentucky State Normal school
     and Teachers College, at Bowling Green;
          "Two per cent (2%o) thereof, plus six and one-
     fourth per cent (6 4,bo) of the inheritance taxes, for
     the support and erection of buildings for the Murray
     State Normal school and Teachers College, at Murray;
          t`Two per cent (2CI) thereof, plus six and one-
     fourth per cent (6j') of the inheritance taxes, for
     the support and erection of buildings for the Kore-
     head. State Normal School and Teachers College, at
     Morehead, *****"


     You notice the paragraph referring to the University
of Kentucky and the four Kentucky State Normal Schools
uses the identical language "for the support and erection
of buildings."a  It is evident to my mind that the word
tsupport" means to maintain, cond.uct and operate the insti-
tution.  There is no provision of law which authorizes
the trustees of the Kentucky University or the regents of
either of the Kentucky S</pre>