xt7k0p0wqj22 https://exploreuk.uky.edu/dips/xt7k0p0wqj22/data/mets.xml Lexington, Kentucky University of Kentucky 19380717 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, 1938-07-jun17-ec. text Minutes of the University of Kentucky Board of Trustees, 1938-07-jun17-ec. 1938 2011 true xt7k0p0wqj22 section xt7k0p0wqj22 Irregularities Minutes of the Meeting of the Executive Committee of the Board of Trustees of the University of Kentucky, Friday, June 17, 1933. The Executive Committee of the Board of Trustees of the Uni- versity of Kentucky met in President McVey's office at 10:30 a.m., Friday, June 17, 1938. Members of the Committee present were Robert G. Gordon, who acted as Chairman of the meeting, and H. S. Cleveland. President McVey and D. H. Peak, Secretary of the Board, were present. 1. Meeting of Board of Trustees Called for June 29, 1938. The Secretary of the Board was asked to call a meeting of the Board of Trustees for June 29, 1938. The object of the called meeting is to consider important business, requiring immediate attention. The call as sent out is copied as follows: A quorum was not present at the meeting of the Board of Trustees June 3. Neither was a quorum present at the meeting of the Executive Committee June 17. It is es- sential that business considered at these meetings be approved by a meeting of the Board of Trustees at which a quorum may be present. There is pending before the Board of Trustees the question of refinancing the loan now held by the Security Trust Company. It appears that quite a saving may be macde by such action. Also there is pending the question of fi- nancing further loans for the purpose of erection of an additional dormitory for girls; completion of the Science Building and other construction. There are other matters pending that need consideration. Because of the necessity for prompt action on such bus- iness, Mr. Gordon and Mr. Cleveland, members of the Executive Committee present today, asked that a meeting of the Board of Trustees be called for Wednesday, June 29, at 10:30 a.m. at President McVey's office. It is very important that a quorum be present at that meeting and, therefore, they wvish that you make every possible effort to attend. Your prompt answer to this letter will be appreciated. The business considered at this meeting set up in the forma of minutes (a quorum not being present), and the business considewed at the meeting of June 3, 1938, set up in the form of minutes (a quorum not being present at that meeting), were referred for approv- al to the called meeting of the Board of Trustees set for Julne 29, 1938. 2. 2. Financial Report. The financial report for May, 1938, was produced by the Bus- iness Agent. The report was examined and ordered inserted in the minutes. Statement of Income and Expenditures Month of May 1938 Previously Rep orted Current Month Fiscal Year to Date General Fund Income Fed. Appro.-Morrill- Nelson Vocational Ed. Board State Appro.-Sum. Sch. Special Agr. Appro. State Appro.-General Int. on Peabody Endow. Int. on Endowment Bonds State Appro.-Repairs to Bldgs. Federal Appro.-Bankhead- Jones Student Fees Student Fees - Sum.Sch. Student Fees - U.H.S. Student Fees - El.Tr. School Student Fees - Un.Exten. Miscellaneous Receipts Rentals Men's Dormitories Total L Expenditures Instruction Adm.,Exp. & Maint. Additions and Better. Total L Excess of Income over Expenditures Patterson Hall Income Board Misc. Receipts Room Rent - Sum. Sch. Total 39,993.31 26,588.77 8,000.00 20,000.00 550,996.15 1,000.00 8,644.50 7,981.73 27,474.93 259,801.91 62,445.15 10,290.00 7, 950.00 14,310.72 8,195.22 1,788.00 17.469.12 2,756.69 3,306.60 2,000.00 61,1 86.00 7,850.54 3,924.43 9.25 420.00 300.00 637.06 1,064.59 240.00 1.430.14 42, 750.00 29,895.37 8,000.00 22,000.00 612,182.15 1,000.00 8,644,50 7,981.73 35, 325.47 263,726.34 62,454.40 10,710.00 8,250.00 14,947.78 9,259.81 2,028.00 18, 899.26 072,929.51 85,125.30 1,158,054.81 747,311.97 81,830.13 829,142.10 266,507.11 20,241.92 286,749.03 21,185.24 3,238.32 24.423.56 035,004.32 105,310.37 I,140,34! 6l 37 ,925.19 (2018L.7 17 74. 60,690.22 768.26 61,458.48 56.77 16.00 72.77 1,932.56 __ 62,679.55 784.26 63,463.81 3. Expenditures Expense 36, Additions & Betterments Total 36. Excess of Income over Expenditures 26, General Fund Income 1,135, General Fund Expend. 1,071, Excess of General Fund Inoome over Expend. 64, Excess of Expenditures over Receipts for Gen- eral Ledger accounts Accounts Payable Excess of Expenditures over Receipts for the fiscal year to date - General Fund Excess of Expenditures over Receipts for the fiscal year to date - General Fund Cash in Bank July 1, 1937 - General Fund Cash in Bank May 31, 1938- General Fund 129.06 20.40 4,507.80 40,636,33 20. -10 149.46 4,507.80 40,657.26 530.09 (3,723.54) 22,8O6.55 609.06 85,909.56 1,221,518.62 153.78 109,818.17 1.180,971.95 455.28 (23,908.631) 40,546.67 20,568.97 89.788.13 81,269.7 6 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 Horticultural Sales Seed Test Seed Inspection Rentals Miscellaneous Fertilizer-Fees Public Service-State Appr. Public Service-Misc.Rec. Feeding Stuffs-Fees Adame-Federal Appro. Serunm-Sales Serum-Virus Sales Serum-Supply Bales Serum-Misc. Sales State Appropriation Creamery-License Fees Creamery-TestersILic. Creamery-Glassware Tested 15,000.00 8,905.64 450.95 1,380.10 889.60 1,237.59 1,463.23 2,827.74 1,063.02 1,309.47 27, 735.04 3,246.70 292.15 51, 533.50 17, 499.95 106.00 48,423.57 15,000.00 2,459.73 113.37 108.14 51.01 39, 598.62 8,765.00 3,344.40 758.74 964.66 65.47 8.11 213.61 93.71 69.50 1,107.63 2,119.67 93.62 10,466.25 1,686.11 3,469.63 254.20 15.75 4.40 26.40 3,968.65 43.50 41.00 50.48 15,000.00 9,870.30 450.95 1, 445. 57 8C7.7l 1,451,.20 1,556.94 2,827.'74 1,065.02 1, 37&3a 9r" 28, 842.6 to 5,565. 37 35 77? 7 61,999,75 1 9, 31. 5.D06 1 0 6. 00 51,593.20 15,000.00 2,713.93 129,.12 112.54 77.;1 43,'567.27 8,308.50 3,385.40 809.2,' 4. Robinson-State .ppro. 11,005.99 Robinson-Misc.Receipts 2,687.53 West.Ky.-State Appro. 11,873.48 West.Ky.-Misc.Rec. 10,935.84 Purnell-Federal Appro. 60,000.00 Bankhead-Jones-FedeApprO. 59,203.53 Nursery Inspection - State Appro. 1,800.00 Nursery Inspection-Fees 2,010.00 Total 413.079.63 Expenditures Expense 3 Additions & Betterments 8 Total 3 Excess of Income over Expenditures Excess of Expenditures over Receipts for General Ledger accounts Accounts Payable C Excess of Receipts over Expenditures Excess of Receipts over Ex- penditures for the fiscal year to date-Experiment Station Cash in Bank July 1,1937- Experiment Station Cash in Bank May 31, 1938- Experiment Station 22,921.59 .3.598.83 56, 520.47 76, 559.16 (4,393.35) 11.535.25) 30, 630.56 730.36 399.23 665.66 306.10 180.00 170.00 11,736.35 3,086,76 12,539.14 11,241,9= 60,000.00 59, 203.53 1,980.00 2,180.00 27,213.70 440.29.33 36,000.47 358,922.06 7,230.04 20, 823.92 43,230.51 379.750.93 (16,016.81) 60,542.35 (807.23) (5,200.58) (11,535.25) (3.6.824.04) 43,806.52 43,806.52 26,472.45 70, 27C. 97 Extension Division Income Federal Bankhead-Jones Federal Smith-Lever Federal Supplementary Federal Capper-Ketcham State Smith Lever County and Other Total Expenditures Expense 366,730.49 148,308.32 26,545.52 36,800.98 98,921.26 17,276.20 10,436.93 2.843.26 366,730,.-9 148, 308.32 26, 545.5' 36,800.93 109,408.19 20.119.46 694,582.77 13,330.19 707A9 1'96 -581,-022.72 -_60,109.08 641,1351.30 Excess of Income over Ex- penditures 113,560.05 (46.778.89)9)_6-,7e,16 Excess of Income over Expen- ditures for the fiscal year to date-Extension Division Cash in Bank July 1, 1937 - Extension D vision Cash in Bank May 31, 1938-Ex- tension D1vision 66,781.16 _2,672.O 69,453.16 = 5. Trust Fund Income Student Loan Fund 2,244.02 Student Notes Paid 2,784.81 Total Receipts 5,028.83 Expenditures Expense Student Notes General Ledger accounts Total Expenditures 31.00 440.00 5,000.00 5,471.00 Excess of Receipts over Ex- penditures (442,17) (4.287.08) Excess of Receipts over Ex- penditures forthe fiscal year to date - Trust Fund Cash in Bank July 1, 1937- Trust Fund Cash in Bank May 31, 1938- Trust Fund Summary General Fund Income Experiment Station Income Extension Div. Income Trust Fund Income Total General Fund Expenditures Experiment Station Expend. Extension Division Expend. Trust Fund Expenditures Total 1,135,609.06 413,079.63 694,532.77 2.244.02 85,909.56 27,213.70 13,330.19 93.84 1,221,518.62 440,293.33 707,912.96 2. 33 7.86 2,245.515.48 126,547.29 2,372.062.77 1,071.153.78 109,818.17 1,180,971.95 336,520.47 43,230.51 379,750.98 581,022.72 60,109.08 641,131.80 31.00 7.50 33.50 1,988,727.97 213,165.26 2,201,893.23 Excess of Income over Expendi- tures 256,787.51 Accounts Payable Excess of Expenditures over Receipts for General Ledger accounts (86, 617.97) (31,337.44) (59,225.17) 24,361.74 170,169.54 (31,337.44) (34,863.43) Student Loan Fund Notes Excess of Receipts over Ex- penditures for the fiscal year to date-Combined Fund 168.569.71 (62.044.65) 106.525.06 93.84 211, 58 305.42 7.50 2, p37, 36 5. 334. 38.50 440.00 400.00 (4,592.50) _ 878.50 4.,455 .75. 4, 455.75 8,723.28 2.344.81 211.58 2. 556.39 - 6. Excess of Receizts over Ex- penditures for the fiscal year to date-Combined Fund Cash in Bank and on hand July 1,1937-Combined Fund Cash in Bank and on hand May 31, 1938- Combined Fund 106, 525.06 125,400.11 231. 92 5. 17 Abstract of item shovm on Statement of Income and Expenditures as "Excess of Expenditures over Receipts for General Ledger accounts $34,863.43" Accounts Receivable Sundry accounts Funds for reinvest- ment Debit 19,927.28 19,536.15 Credit 4, 600.00 4,600.00 39,463.43 4.600.00 34, 863.43 3. Requisition Committee Report. The Requisition Committee filed written report of its action each week from May 27, 1938, to June 8, 1938. The report showed orders made by the Business Office on the authority of the Requi- sition Committee in the manner prescribed by the Board of Trustees and State laws, running from No. 8042 to No. 8385. The report was examined, and on motion and second, the orders named therein were ratified and approved and payments on said orders were author- ized and approved. 4. Allotments for Fourth Quarter. The Business Agent reported receipt from the State Department of Finance, Budget Division, of advice of allotment of appropria- tion for Division of Colleges showing a total of $666,731.32. This includes the original appropriation, $660,000.00, additional allot- ment by the Governor of $4411.32 for payment on P. W. A. con.,tIij-uc- tion, and additional allotment by the Governor of $2320.00 for publishing Kentucky Guide Book, being prepared under W. P. A. 7. project, under agreement with Department of University Exteni.on. 5. Investments. Report by Business Agent At the meeting of the Board of Trustees of June 3, 1938, I reported as follows: "The State Treasurer called for payment of State Warrants as of May 15. included in this call were the four $10,000 warrants in which the Peabody Fund was invested. This fund is being held subject to orders of the Board for investment thereof." The interest paid on these warrants was put to gen- eral expenditures fund, and $40,000 was put in a special account in the First National Bank and Trust Company of Lexington. This is held subject to orders of the Board of Trustees for reinvestment. It is suggested by Mr. W. H. Courtney, President of the First National Bank and Trust Company, that the funds be put in the hands of the Trust Company for investment. He suggests that it is possible to make safe loans on farm lands and tat these loans should be made at at least five per cent interest, and that the charge of the Trust Com- pany for its service will be five per cent of the incomie collected. There is on interest deposit in the First National Bank and Trust Company 818,432.74 belonging to the Stu- dent Loan Fund. Recently a warrant for $4,600 belonging to this fund was paid on call of the State Treasurer. In addition to this there is an open account of the Student Loan Fund in amount of $4,123.28, making total of $27,156.02. I suggest that in event arrangement is made with the First National Bank and Trust Company to act as trustee for the Peabody Fund that it also be authorized to act as trustee for investment of Student Loan Fund. (Signed) D. H. Peak June 17, 1938. Business agent It was ordered that further inquiry of the trusteeship pro- po ed be made, it appearing that the suggestions in the report of the Business Agent are worthy of consideration, and it was sug-est- ed that the First National Bank and Trust Company be asked to prepare articles creating trusteeship for purpose of consideratilon thereof at the next meeting of the Board of Trustees. 8. 6. Uncollected Fees. Report of Business Agent UNCOLLECTED FEES First Semester 1937-1938 --- 357.99 Second Semester 1937-1938 ------------- 2 c27p. 3,620.97 Collections, including activities, approximate $286,000 and this makes the per cent of uncollect- ed fees about .01* per cent of total fees. he balance of 1936-37 fees uncollected to date is W;)212.15. It was ordered that the amount of uncollected fees for the year 1937-1938 be charged off and not carried as an asset on the books of the University, and that any part thereof distributable to General Fund of University that may hereafter be collected, be set aside for payment on P. W. A. construction indebtedness. 7. Renewal of Fire and Tornado Insurance. Statement of Insurance now carried through State Division of Insurance. INSURANCE IN FORCE JUNE 15, 1938 FIRE FIRE COV- TORNADO TORNADO TOTAL PREM. ERAGE PREMIUM COVERAGE PREMIUM EXPER- $3,024.89 $398,755.00 $ 553.20 $84,871.00 $3,577.09 IMENT STATION COLLEGE 8,003.93 2,275,200.00 353.80 182,000.00 8,324.06 $11, 901.15 The condition and values of buildings and contents appearing to be practically unchanged, it was ordered that the schedules now in force in the State Division of Insurance for tornado and fire insurance shall be renewed, 9. B. Insurance on Men's Dormitories. Report of Business Agent At meeting of the Board. of Trustees April, 1933, an order was entered authorizing the payment of $90.46 to Davison and Kirkpatrick, Agents, on cancellation of policies written on the Kinkead and Breckinridge Fal.ls. These policies were written on the coinsurance plan and the bill of that agency has been paid as directed by that order. That order also authorized payment to be made to the Coleman Insurance Agency on the same basis. Two bills were presented by the Coleman Insurance Agency, one for $88.t32 (policy probably with coinsurance clause) and one for $224.02 (policy probably without coinsurance clause). These bills were sent to Division of In- surance for advice as to which one should be paid, in my letter dated May 27, 1938. To that letter, I re- ceived the following answer: Commonwealth of Kentucky DIVISION OF INSURANCE June 1, 1938 Mr. D. H. Peak, Business Manager University of Kentucky Lexington, Kentucky Dear Mr. Peak: After receiving your letter of May 27, en- closing two bills from the Coleman Insurance Agency, Mt. Sterling, Kentucky, I got in touch with this agency to determine which represented the amount due. I am now in receipt of information to the effect that this agency is due a balance of 80224.02. I am enclosing herewith this statement.andshall. ask that you give it your attention. (Signed) Sherman Goodpastor DIRECTOR OF INSURANCE 10. Mr. Cleveland stated that he desired to consult a member of the State Insurance Department in regard to the amount that should be paid the Coleman Insurance Agency, and tat he would rep.nort the result of his Conference to the Business Agent; Upon receipt of Mr. Cleveland's report, settlement is left to the discretion of the President and Business Agent. 9, Alumni Election, 1937 - Ballots to be Destroyed. The Secretary of the Board having reported as hereinafter set out, appointment and qualification of Mr. Marshall Barnes as 4luiini member of the Board of Trustees, following the alumni election of 1937, he was authorized to have the ballots of the said elaction destroyed. At December meeting of the Board of Trustees the ballots of the election for alumni member of the Board of Trustees were counted and the result duly recorded in the minutes of that meeting. Certification of the result was made to Governor Chandler, as directed by or- der made at that meeting. The Governor appointed Mr. Marshall Barnes, whose name was one of three certified to him, as alumni member of the Board of Trustees. Mr. Barnes has qualified as such, his first attendance being at the meeting of April, 1938. it is customary, after the appointee has qualified, that the ballots of the election be destroyed. i will appreciate action by the Executive Committee, authorizing the destruction of the ballots. 10. Advertising in Leader Special Edition. President McVey stated that he had been solicited to take a page advertisement in the Fiftieth Anniversary edition of the Lex- ington Leader at a cost of $200.00. He said that, because of the condition of finances of the University, and for other reasons, he had offered to take advertising space at a cost of $25.00. The representative of the Leader refused to accept his offer and insist- ed that a larger space be taken. He asked for the help and advice of the Executive Committee. The members stated that they agreed with the President in his conclusion, and they recommended that advertising space be taken in the Fiftieth Anniversary Edition of the Lexington Leader oat an approximate cost of 825.00. 11. 11. Library Expenditures - Shelving. The President presented a letter from the Librarian copied as follows and recommended the expenditures asked therein. June 13, 1938 President Frank L. McVey University of Kentucky My dear Dr. McVey: I have gotten quotations from Remington Rand for steel shelving for the basement of Memorial Hall. This will consist of deep bin-type metal shelving of a lower grade than that usually installed in libraries. The price includes eight ranges of six double sections for the center of the room and seven ranges of four double sections for one side. On the north side of the room I hope to install some shelving which is now in the Science Library and is not suited for general book purposes as it is too deep and takes up too much room. The total cost for the shelving for Memorial Hall, erected, is $2,755.88; for new shelving for the Science Library to take the place of the old which I would put in Memorial Hall basement $485.00. In addition I have asked for quotations for shelving, tables and chairs for the small room which has been assigned for library and secretary's office in the new Bacteriology Depart- ment. This has been estimated at $306.85. The total of these three installations will be $3,547.73, and the Remington Rand representative tells me that this is subject to a state discount of fifteen per cent which he allows to the State Purchasing Com- mission. I should be glad to have your approval of these items if they can be purchased out of the amount specially set aside for additional equipment from the $30,000 ap- propriation for books. (Signed) Margaret I. King Librarian 12. On motion and second the purchase of the shelving, chairs and tables was approved, the purchases to be made from the State Ap- propriation of $30,000.00 for library equipment and books, for the year 1938-39. The procedure required in making purchases to be charged to state appropriations is to be followed. 12. Property Line of Scott Street. The President stated that the line on the south (or Scott Street side)side of the property conveyed to the University by the City of Lexington (usually referred to as the Dump) was surveyed by the late Professor W. A. Newman and that the survey shows that adjacent property owners are occupying parts of the University property within the bounds of that survey. It is now desired that a fence be erected on the property line as surveyed. The Presi- dent asked for advice as to procedure to gain possession of the property occupied as aforesaid. The President was authorized to have notices given to each person encroaching on the property requesting and demanding that possession thereof be given to the University of Kentucky. Re- fusal of any one so notified to give possession shall be referred to the Executive Committee or Board of Trustees. 13. Petition - Cooperative House. The President stated that he had received a petition from women students asking for construction of a cooperative house. The petition was ordered filed. 14. Commons Equipment. At the request of President McVey, it was ordered that the equipment used by the University Commons be transferred to other departments of the University, as far as it may be needed and is practicable for use in such departments. The part of the equip- ment not practicable for use in other departments may be sold, the proceeds of sale to be turned over to the Business Agent. An inventory of the equipment, showing its purchase cost, its present estimated value, and the disposition of the items shall be made. This shall be reported to the Business Agent in order that he may clear the equipment account of the University Commons noN carried on the Sundry Ledger. 15. Rent of House - Girls' Dormitory On request of President McVey and the Dean of Women, rental of residence for use as an additional girls' dormitory from the Good Samaritan Hospital was approved and ordered. The property adjoins the Hospital mounds and is near Patterson Hall. It is to be put 13. in repair for mccupancy such as may be agreed upon, adding one room, by September 1, 1938, the date the rental period begins. The property is to be rented for one year at 10000 per month for ten months and $60.00 per month for the remaining two months. The Hospital is to furnish heat and water. 16. Lease of Shops in Student Union Building. Reference is made to Sec. 12, Minutes of June 3, 1938, for data on rental of barber shop and beauty parlor in Student Union Building. It is the opinion of the members of the Executive Com- mittee present at this meeting that the shops should be rented at flat rate per month. The rental contract shall stipulate that prices charged for work shall not be lower than the charges prevail- ing in the neighborhood and that the lessee shall not engage in cutting prices. 17. Financing and Construction of Buildings. President McVey informed the members of the Executive Committee of a proposal to refinance the loan on the men's dormitories, and, also, of a plan to ask for an additional P. W. A. grant, the plan being formulated by Dean Graham, He explained the proposals in some detail, after which the members present said that it is necessary that this be acted on at a meeting of the Board of Trus- tees. 18. General Education Board Grant - Agricultural Economics. The facts pertaining to the application to the General Educa- tion Board for a grant of funds for teaching and research in Agri- culture were stated at the meeting of June 3, 1938, as recorded in Sec. 13, minutes of that meeting. Infcrmation of action on the grant by the General Education Board is given in the following letter: GENERAL EDUCATION BOARD June 10, 1938 Dear President McVey: This letter is merely to confirm copy of telegram sent you today as follows: 14., "Am pleased to advise you informally that Trus- tees today voted forty thousand dollars over two years for your program in agricultural economics. Secretary of Board will send formal advice shortly. " It has been a real satisfaction to cooperate with you in these initial steps for the broadening of your educational facilities in the fields of agricultural economics. The Board has now made limited grants for the enln--'e- ment of personnel at Louisiana State University, the Uni- versity of Kentucky, and Virginia Polytechnic Institute. In view of the limited number of qualified men in the field, may I Just express the hope that the institutions will avoid competing with one another on the basis of assistance from the Board in seeking the additions to their staffs. With every good wish Yours sincerely, (Signed) A. R. Mann President F. L. McVey University of Kentucky Lexington, Ky. President McVey was authorized to accept the grant and to ex- press appreciation of the Board of Trustees of the University to the Board of Trustees of the General Education Board for favorable action thereon. 19. P. W. A. Construction - Colleg Docket. a. Arbitration on Contract No. 300 -- Whittenberg Construction Company. Proposal of Arbitration June 13, 1938 President Frank L. McVey University of Kentucky My dear President McVey: Under date of February 23, 1938, I reported to you the state of Contract No. 300 with the Whittenberg Con- struction Company of Louisville, Kentucky, wherein that Company was delinquent to the extent of seventy-one days in the completion of the Contract and recommended to you 15. that the Company be penalized for a totalof fifty days or in the sum of $2,500 in accord with the "Bonus and Penalty" clause of the aforementioned Contract. This recommendation was approved in due course by the Board of Trustees and the Company was duly notified of the findings and the action thereon, Under date of May 9 I received by letter a demand from the Whittenberg Construction Company for an arbi- tration of this question of penalty. This demand was predicated upon the arbitration clause within the af ore- stated contract and placed therein in accord with the regulations of the P. W. A. I attach hereto a co'cy of my reply under date of May 12 and especially invite your attention to the fourth paragraph thereof wherein I stipulate "that if arbitration be granted (by the Board of Trustees) then the present settlement be withdrawn and that the matter be arbitrated on the basis of assessing the full penalty or $3,550"; and further,-that "if my findings and recommendations thereon are to be rearbi- trated, then i desire that these be withdrawn and com- pletely discarded and that the arbitration demanded by you shall be confined strictly to the records as written, if and when the President and the Board of Trustees ac- quiesce to your demand." Subsequently, I have discussed this matter further with Mr. Whittenberg, President of the Company, as fol- lows: 1. That some part of the delay and delinquency was due directly to the acts of omission and commission of certain of the sub-contractors, engaged under this contract, and to some more than to others. 2. That the Whittenberg Construction Company would ac- cept the :resent offer of settlement, If it was not for the fact that certain of the most delinquent of the subcon- tractors refuse to accept any responsibility therefor or to be assessed any part of -the penalty. 3. Therefore, the Whittenberg Construction Company desires and needs to use every means approved and offered under the contract to establish a complete record of in- dividual and proportional responsibility for the delinquency. Since arbitration is the final step for accomplishing this end under the contract the Company now request this a'ction and is willing to arbitrate upon the basis of the f ul.l penalty or $3,550 as aforequoted from my letter of Uvay 12. 4. That Mr. Whittenberg is willing to agree with the University upon the selection of one arbitrator in lieu of' the usual three, and thus save expense. 16. Therefore, I now recommend that request of the Whittenberg Construction Company, that the question of delinquency and penalty thereunder shall be arbitrated, be granted and authorized in the full amount of the de- linquency and penalty or $3,550, in full and complete accord with the contract documents and within the written records of the work's progress. (Signed) James H. Graham Dean The recommendations of Dean Graham as set forth in the report copied were approved. The selection of arbitrators was left to President McVey and Dean Graham. b. Payment on Bonds and Interest. Report of Business Agent Following is statement of account of P. W. A. Con- struction Bonds: Bond due June 30, 1938 15,000.00 Interest for the year 18,570.00 33,570.00 Available Funds Balance on hand July 1, 1937 4,219.58 Fees, First Semester, set aside 9,285.00 Fees, Second Semester, set aside 9,285.00 Old fees, set aside 2,080.50 24,870.08 Balance necessary for payment 8,699.92 (Signed) D. H. Peak Business