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    Minutes of the Meeting of the Board of Trustees, University of
Kentucky, July 24, 1945.

     The Board of Trustees of the University of Kentucky met in the
President's Office at 10:10 a.m., Tuesday, July 24 1945, pursuant
to adjournment of meeting of Board of Trustees of Lay 28, 1945.
The following members were present: Governor S. S. Willis, Judge
Richard C. Stoll, Mrs. Paul G. Blazer, John Fred Williams, H. D.
Palmore, Grover Creech, H. S. Cleveland, J. 0. Everett, Robert Twar',
Harper Gatton and R. P. Hobson.  Absent were: T. H. Cutler, John
Cooper, Judge H. W. Walters and Elliott Robertson. President H. L.
Donovan Comptroller Frank f. Peterson, Secretary of the Board and
Mr. M. %T Sternberg, Assistant Attorney General, met with the


     A. Approval of Minutes.

     The minutes of the Board of Trustees of May 28, 1945, were ap-
proved as published.


     B. Budget Changes.

     President Donovan recommended that $3600 be added to the budget
of the Department of English; that $750 be added to the budget of the
Personnel Office to make possible a full-time clerk; and that $800
be appropriated from the Haggin Fund for additional work of the Uni-
versity of Kentucky Press.    The Board heard the recommendation and
took the following action:



             1. Upon motion duly made, seconded and carried,
                the sums of $3600 and $750 are ordered added
                to the respective budgets, and appropriated
                from unappropriated surplus of the general
                University budget, and $800 is appropriated
                from the Haggin Fund for additional work
                of the University of Kentucky Press.
                          * * * * * * * * * *

     C. Refunding of PWA Bond Issue of 1936.

     The Comptroller explained to the members of the Board of True
tees that J. J. B. Hilliard & Son and Armistead Brothers of Louis-
ville, Kentucky, had proposed to refund PWA bond issue of the Uni-
versity.   He stated that the bonds were originally issued in 1936
non-callable, and that it would be impossible for the Uriversity
to re-finance except for the fact that all of the unpaid bonds of




 





2



that issue were now in the hands of Hilliard & Sons and Arrmistead
Brothers.   The Louisville brokers had offered to surrender the out-
standing bonds now drawing 3% interest and accept in lieu University
Building Revenue Refunding Bonds, bearing interest of 1-3/4%. They
requested the price on the existing University Building Revenue
Bonds of $111, and agreed to pay all expenses incident to refunding.
It was further eXqained that a schedule had beensubmitted which
provided for retiring the remaining bonds in 1962 instead of 1965.
This would produce an increase in the annual payment of principal
and interest in the amount of $2,692.03 per year, raising the av-
erage annual payment of principal and interest from $32,312.50 a
year to $35,004.53 per year.

     It was further explained that if the bmds were refunded as
proposed, using the revised schedule of payment, the University
would effect 8 saving over the remaining life of the bonds of
$25;,472.5O.

     The membery of the Board fully discussed the proposal and
Member H. D. Palmore introduced and caused to be read in full the
following proposed resolution entitled "A Resolution authorizing and
providing for the issuance of University Building Revenue Refunding
Bonds for the purpose of retiring and refunding a like amount of
outstanding bonds and interest thereon issued for defraying the cost
of constructing University buildings, and providing for the collec-
tion and segregation and distribution of the revenues of said build-
ings for the purpose of safeguarding, protecting and paying said
bonds," and moved that all rules be suspended and that said pro-
posed resolution be adopted; which motion was duly seconded by Memo
ber Harper Gs.tton; and said motion having been duly considered the
Chairman put the question thereon,a and, upon the roll being called,
the following voted:

     Aye: Governor S. S. Willis, Judge Richard C. Stoll, Mrs. Paul G.
Blazer, John Fred Williams, H. D, Palmore, Grover Creech, H. S.
Cleveland, J. C. Everett, Robert Tway, Harper GrqttonardR. P. Hobson.

     Nay: None.


     Thereupon the Chairman declared said motion duly carried and
said resolution duly adopted.



Resolution:




 




3



          A RESOLUTION authorizing and providing
          for the issuance of University Building
          Revenue Refunding Bonds for the purpose
          of retiring and refunding a like amount
          of outstanding bonds and interest thereon
          issued for defraying the cost of construct-
          ing University buildings, and providing
          for the collection and segregation and
          distribution of the revenues of said
          buildings for the purpose of safeguarding,
          protecting and paying said bonds.
                  *     *      *     *1


    WHEREAS the Board of Trustees of the University of Kentucky,
as the governing authority of said University which is and at
all times hereinafter mentioned was a state educational institu-
tion, did heretofore pursuant to resolutions adopted on January
14, 1936, and under authority of Chapter 72 of the Acts of the
General Assembly of Kentucky 1934, issue the 3% University Build-
ing Revenue Bonr of said University in the principal amount of
$634,000 for the purpose of constructing University buildings
on its campus for the College of Engirnering, a central heating
plant, a Student Union building, and a building for the College
of Laws of which bonds in the principal amount of $134,000 have
been paid and retired and there are presently outstanding bonds
in the principal amount of $500,000, dated January 1, 1936,
numbered consecutively from 135 to 634, inclusive, of the de-
nomination of $1,000, with interest in the sum of $7,500 due
July 1, 1945, and principal thereof maturing serially on July
1 of each of the years 1945 to 1965, inclusive; and

     WHEREAS said bonds by their terms are payable only from
a fixed amount of the gross income and revenues to be derived
from the operation of said University buildings, and by reason
of presently prevailing low interest rates for public loans9
it is deemed advisable at this time that provisions be made for
the issuance of University Building Revenue Refunding Bonds to
the amount of $507,000 for the purpose of refunding at a sub-
stantially lower interest rate the principal of said presently
outstanding bonds and paying the interest to the amount of
$7,000 due thereon July 1, 1945, and it has been represented
to this Board of Trustees that the holders of said presently
outstanding bonds would be willing to surrender said bonds
and interest coupons representing interest due July 1, 1945,
in exchange for a like amount of new bornb which bear such
lesser interest rate and mature as hereinafter provided; and

     WHEREAS under the provisions of Section 162.340 et seq.
of the Kentucky Revised Statutes, this Board of Trustees, acting
for and on behalf of said University of Kentucky, is authorized
to issue revenue refunding bonds aw hereiniafter provided for
the purpose of refunding said presently outstanding bonds




 



4



and paying said interest to the amount cf $7,000, due July 1,
1945:

    NOW, THEREFORE, Be It and It Is Hereby Resolved and Omn .1
by the Board of Trustees of the University of Kentucky, as f -
lows:

     Section 1. That there are hereby authorized to be iisn.ied
five hundred seven negotiable coupon revenue refunding bonds by
the Board of Trustees of the University of Kentucky in the ag-
gregate principal amount of $507,000, each of which shall be
designated "University Building Revenue Refunding Bond", for
the purpose of refunding the outstanding bords dated January
1, 1936, and paying the interest to the amount of $7O000 due
thereon July 1, 1945, all as referred to in the preamble
hereof.

    Section 2. That said University Building R venue Refund-
ing Bonds shall be numbered consecutively from i to 507, in-
clusive, shall be of the denomination of $1,000, shall be
dated July 1, 1945, and shall mature in numerical order on
July 1 of the respective.years as follows:


    Year       Amount            Year             Amount

    1947       $27,000            1955            $32,000
    1948        27,000            1956             33,000
    1949        28, 000           1957             33, 000
    1950        29,000            1958             34,000
    1951        30.,000           1959             35,000
    1952        30,000            1960             35,0000
    1953        31,000            1961             36,000
    1954        31,000            1962             36,000

provided, however, said bonds shall be optional for redemption
on any interest payment date prior to maturity, in whole or from
time to time in part in the inverse order of their maturity (less
than the whole of a single maturity to he selected by lot), and
in the event of such redemption of any of said bonds it is agreed
that said University of Kentucky will pay to tile rztspective holders
upon surrender of such bonds interest in addition to that evidenced
by interest coupons maturing on and prior to the redemption date
in an amount equal to four per cent (4%) of the principal amount
thereof if called for redemption on or before July 1, 1948; three
per cent (3%) of the principal amount thereof if called for re.
demption thereafter and on or before July 1, 1951; two per cent
(2%) of the principal amount thereof if called for redemption
thereafter and on or before July 1, 1954; and one per cent (1%)
of the principal amount thereof if called for redemption thereafteo
and on or before July 1, 1957, and without payment of additional
interest if called for redemption thereafter and prior to maturi-
ty.  If and when such option of redemption is exercised notice
thereof identifying the bonds to be redeemed will be given by




 




5



publication at least once not less than thirty days prior to
the redemption date in a newspaper of general circulation in the
Commonwealth of Kentucky.  Said bonds shall bear interest from
date thereof until paid or until called for redemption at the
coupon rate of one and three-quarters per cent (1 3/4%) per arn
nun payable semi-annually on the first days of January and July
in each year.  Both principal and interest shall be payable.
in lawful money of the United States of America at the Louis-
ville Trust Company Bank in the City of Louisville Kentucky.
Said bonds shall be signed by the Chairman of the hoard of Trvi-
tees of the University of Kentucky and sealed with its corpora le
seal and attested by the Secretary of said Board, and the inter-
est coupons attached to said bonds shall be executed with the
facsimile signatures of said Chairman and said Secretary, and
said officials by the execution of said bonds shall adop-t as
and for their own proper signatures their respective facsimile
signatures on said coupons   All of said bonds, together with
the interest thereon, shall be payable only out of the "Uni-
versity of Kentucky Building Revenue Bond and Interest Re-
demption Fund.'" as hereinafter more specifically provided., and
shall be a valid claim of the holder thereof only against said
fund and the fixed portion or amount of the revenues of the
University buildings pledged to said fund,

     Section 3. That said bonds and coupons shall be in sub-
stantially the following form, to wit:


                       (Form of Bond)

                  UNITED STATES OF AMERICA

                  COMMONWEALTH OF KENTUCKY

                  UNIVERSITY OF KENTUCKY

           UNIVERSITY BUILDING REVENUE REFUNDING BOND

No.                                                       $1,000

     KNOW ALL MEN BY THESE PRESENTS That the University of Koi-
tucky, as a state educational institution and agency of the Comn
monwealth of Kentucky, acting by and through its Board of r'Lrus-
tees, for value received hereby promises to pay to bearers as
hereinafter provided, the sum of One Thousand Dollars ($lOOO1
on the first day of July, 19   , but with the option of prior
redemption as hereinafter provided and to pay interest on said
sum from the date hereof at the rate of one and three-quarters
per cent (1 3/4%) per annum, payable semi--annually on the first
days of January and July in each year until paid, except as the-
provisions hereinafter set forth with respect to redemption
may become applicable hereto, such interest as may accrue on and
prior to the maturity of this bond to be paid upon presentation
and surrender of the annexed interest coupons as the same sev-
orally mature, both principal and interest being payable in




 



6



lawful money of the United States of  Amcrica at the
                    Bank in the City of
Kentucky.

     This bond is one of a duly authorized series of bonds limitel
to an aggregate principal amount of $507,000 issued pursuant to
resolution duly adopted by said Board of Trustees for the purpo-e
of refunding a like amount of University Building Revenue Bon.ds
and interest thereon heretofore issued under date of January 1,
1936, for defraying the cost of constructing University building3
more particularly described in said resolution, and this bond has
been issued under and in.full compliance with the Constitution and
Statutes of the Commonwealth of Kentucky, including among othners
Sections 162.350 to 162.380, inclusive, of the Kentudky Revised
Statutes, 1942.

     The bonds of the series of which this bnrld is one are 1i'
Ject to redemption by said University on any interest paymeat
date prior to maturity in whole, or from time to time in part in
the inverse order of their maturity (less than the whole of a
single maturity to be selected by lot), and in the event of such
redemption said University agrees to pay to the respective hold-
ers upon surrender of such bonds interest in addition to that evi-
denced by interest coupons accrued on and prior to the redemption
date in an amount equal to four per cent (4%) of the principal
amount thereof if called for redemption on or before July 1, 1948;
three per cent (3%) of the principal amount thereof if called for
redemption thereafter and on or before July 1, 1951; two per
cent (2%) of the principal amount thereof if called for redemption
thereafter and on or before July 1, 1954; and one per cent (1)
of the principal amount thereof if called for redemption there-
after and on or before July 1, 1957, and. without payment of ad-
ditional interest if called for redemption thereafter and prior to
maturity.   Notice of any such redemption as aforesaid identifyinc'
the bonds to be redeemed will be given by publication at least
once not less than thirty days prior to the redemption date in a
newspaper of general circulation in the Commonwealth of Kentucky.
All of such bonds as to which said University exercises the right
of redemption and as to which hotice as aforesaid shall have been
given and for the redemption of which, upon the terms aforesaid
funds are duly provided, will cease to bear interest on the re-
demption date.

     This bnnd and the series of which it is one are payable
only from revenues to be derived from the operation of said Uri-
versity buildings, a sufficient portion of which revenues shad 1
be set aside as a special fund for that purpose and identifieel
as the "University of Kentucky Building Revenue Bond and Inter-
eat Redemption Fund", and this bond and the series of which it
is one do not constitute an indebtedness within the meaning of
any constitutional provisions or limitations, nor is the credit
of the Commonwealth of Kentucky pledged for the payment of this
bond.   Said Board of Trustees covenants and agrees that said
University buildings and appurtenances will be continuously




 




7



operated and that sufficient revenues will be collected and set
aside in said special fund to promptly pay the principal of and
interest on this bond and the series of which it forms a part
as the same will become due.   This bond constitutes and repre-
sents a continuation, extension, merger and renewal of a like
amount of the bnds and interest thereon refunded hereby and this
bond is payable from the same source and is of like obligation
as to payment as were the bonds and interest thereon refunded
hereby.

     It is hereby certified, recited, and declared that all
conditions and things required to exist, happen and be perfov..od
precedent to and in the issuance of this bond and the series of
Ends of which it is one, and precedent to and in the issuance
of the bonds refunded hereby, have existed, have happened and
have been performed in due time, form and manner as required
by law, and that the amount of this bond, together with all
other obligations of said University, does not exceed any limit
prescribed by the Constitution or Statutes of the Commonwealth
of Kentucky.

     IN WITNESS WHEREOF said University of Kentucky has caused
this bond to be signed by the Chairman of its Board of Trustees
and its corporate seal to be hereunto affixed, attested by the
Secretary of s aid Board, and the coupons hereto attached to be
executed with the facsimile signatures of said Chairman and
said Secretary, which officials by the execution of this bond
do adopt as and for their own proper signatures their respective
facsimile signatures appearing on said coupons, and this bond
to be dated the First day of July, 1945.



                                   Chairman, Board of Trustees
Attest:

Secretary              -  -
                     (Form of Coupon)

No.                                                      $

     On the first day of             19       ,the Universty of
Kentucky will pay to bearer
Dollars ($           ) out of its "University of Kentucky Building
Revenue Bond and Interest Redemption Fund," at the
               Bank, in the City of        _, Kentucky, as
provided in and being interest then due on its University Building
Revenue Refunding Bond, dated July 1, 1945, Humber



                               Chairman, Board of Trustees
Attest:



Secretary




 



a



    Section 4. That the provisions, covenants, undertakings,
and stipulations for the operation of the University buildings as
set forth in the resolution adopted on January 14, 1936, pur-
suant to which bonds herein authorized to be refunded were
issued, together with all other provisions, covenants, undertak-
ings, stipulatiom and resolutions supplemental thereto, shall
Inure and appertain to the bonds hereby authorized to the same
extent and with like force and effect as if herein set out in
full, except only in so far as same may be inconsistent with
this resolution.  The provisions in and by said resolution
adopted January 14, 1936, whereby there has been created aild
there is to be maintained a special fund to be known as the
University of Kentucky Building Revenue Bond and Idrrest
Redemption Fund and into which there is to be set aside and
paid a sufficient portion of the revenues of said University
buildings for the payment of the interest on and the principal
of the bcnds herein provided to be refunded, are hereby in
all respects ratified and nonfirmed, and all such provisions
and all sums remaining therein when the refinancing hereby con-
templated has been completed shall inure to and constitute the
security for the payment of the interest on and the principal
of the bonds hereby authorized, except however, that the compu-
tations to be made on a fiscal year basis commencing July 1
of each year and ending on June 30 of the next succeeding year
and the amounts to be set aside and paid into said fund in
equal monthly installmerB shall be based upon the bonds hereby
authorized and after the issuance of the bonds hereby authorized
said special fund shall be used and applied and is hereby
pledged to the payment of the interest on and principal of the
bonds herein authorized, and to accumulate a reasonable reserve
in said fund for that purpose.   The minimum annual amounts
to be so set aside into said special fund during each fiscal
year commencing July 1, 1945, in order to pay the interest on
and the principal of all of the bmds hereby authorized are here-
by determined and fixed to be as follows:

     During the year                  During the year
     ending June 30.     Amount       ending June 30e    Amoart

        1946             $ 8,875          1955          $369795
        1947              35,875          1956           37 235
        1948              35,400          1957           36,660
        1949              35,930          1958           37,080
        1950              36,440          1959           37,485
        1951              36,930          1960           36,875
        1952              36,405          1961           37,260
        1953              36,880          1962           36,630
        1954              36,340


     That exclusive of the amounts required to be set aside and
applied as hereinbefore provided to the payment of the principal
ofand'interest on the bonds hereby authorized the balance of the
revenues from said University buildings shall be used to pay the
reasonably necessary cost of operating and maintaining said




 



9



buildings or to purchase or retire bonds which by their terms
are payable from such revenues.

     Section 5. The said University and its Board of Truet"t,,Ws
hereby covenant and agree with the holder or holders of the ;' -nd
herein authorized, and any of them, that they will respectivoly,
faithfully and punctually perform all duties with reference to
said University buildings required by the Constitution and laws
of the Commonwealth of Kentucky, including the making and col-
lecting of reasonable and sufficient rates for services afforded
thereby, and will segregate the revenues and make application
thereof as contemplated by this resolution, and further covenant
and agree with the holders of said bonas that so long as any
of said bonds are outstanding and unpaid said buildings will
be continuously maintained in good condition and operated, and
that such rates and charges for services afforded thereby will
be imposed and collected so that the gross revenue will be
sufficient at all times to provide for the payment of the op-
eration, maintenance and insurirg of said buildings and to
make the prescribed payments into the University of Kentucky
Building Revenue Bond and Interest Redemption Fund, as provided
herein.

     Section 60 That for the further protection of the holders
of the bonds herein authorized to be issued and the coupons
thereto attached a statutory mortgage lien upon said buildings
and all properties connected therewith and belonging thereto,
is granted and cheated by Sections 162.350 and 162.200 of the
Kentucky Revised Statutes, which said statutory mortgage lien
is hereby recognized and declared to be valid and binding upon
said buildings as provided by law, and shall take effect ir.
mediately upon the delivery of any bonds authorized to be issued
under the provisions of this resolution.   Aiy holder of said
bonds or of any of the coupons may either at law or in equity,
by suit, action, mandamus or other proceedings, protect the
statutory mortgage lien hereby conferred, and may by suit, na-.
tion, mandamus or other proceedings, enforce and compel per-
formance of all duties required by law, including the fixing
and collecting of sufficient revenues for the services of said
buildings and the application thereof.

     If there be any default in the payment of the principal
of or interest on any of said bodds, or if there be any de-
fault in the provisions herein made for such payment, then
upon the filing of suit by any holder of said bonds or of any
of the coupons, any court having Jurisdiction of the action may
appoint a receiver to administer said buildings on behalf of
said University with power to charge and collect rates suffi-
cient to provide for the payment of any of said bonds, and for
the payment of the operating expenses, and to apply the income
and revenues in conformity with this resolution and the pro-
visions of said statute laws of Kentucky aforesaid.

     Section 7. That the bonis authorized to be issued hereunder
and from time to time outstanding shall not be entitled to




 




10



priority one over the other in the application of the income and
revenues of said buildings, regardles. of the time or times of
their issuance, it being the intention that there shall be no
priority among the bonds regardless of the fact that they may be
actually  issued and delivered at different times and that any
other obligations or indebtedness payable from the income or
revenues of said buildings shall be made subject to the priority
of the bonds herein authorized.

     Section 8. That the University hereby covenants and agrees
it will cause proper books and accounts with respect to the
aid buildings to be kept and that the holders of any of said
bonds sball have at all reasonable times the rignt to inspect
same.

     Section 9. That the bonds herein authorized be issued,sold
and delivered only when the bonds herein provided to be refunded,
together with interest accruals thereon to tho aggregate amount
of $507,000 are surrendered and canceled.   Upon the adoption of
this resolution the Secretary of the BoardL of Trustees is hereby
authorized and directed to cause notice to be published in the
Lexington Leader, a legal newspaper printed and published in the
City of Lexington, Kentucky, reciting in such notice that a reso-
lution providing for the issuance of the bonds as herein author-
ized has been adopted and that at a time and place stated there-
in, which shall be the time and place of a scheduled meeting of
the Executive Committee of the Board of Trustees, the matter of
issuing said bonds will be further considered and also that at
said meeting any one interested as a holder of the bonds herein
provided to be refunded may appear, and that any one holding or
representing the holders of the bonds herein authorized to be
refunded may appear and present proposals for any or all of the
bonds as herein authorized on the basis of simultaneously sur-
rendering a like principal amount of the bonds now outstanding.
Said Executive Committee Is hereby authorized and directed to
consider all proposals made pursuant to such published notice
and to award the bonds in the manner and for the purposes as
herein provided.

     Section 10. That the provisions of this resolution shall
constitute a contract between the Board of Trustees of the Uni-
versity of Kentucky and the holder or holders of the bonds
herein authorized to be issued and after the issuance of any of
said bonds no change or alteration of any kind in the provisions
of this resolution may be made until all of the bonds have been
paid in full as to both principal and interest or funds suffi-
cient therefor shall have been duly provided and deposited
for that exclusive purpose at the place of payment thereof.

     Section 11.  That if any section, paragraph, clause or
provision of this resolution shall be held to be invalid or in-
effective for any reason the remainder thereof shall remain
in full force and effect, it being expressly hereby found and
declared that the remainder of this resolution would have been
adopted despite the invalidity of such section, paragraph, clause




 




11



   or provision.
        Section 12.  That all resolutions aria orders, or parts ther'-
   of in conflict herewith are, to the extent of such conflict,
   hereby repealed, and that this resolution shall take Offct from
   and after its adoption.

        Adopted and approved, __, 1945.


                                              Chairman
   Attest:

        Secretary.




     D. Count Agricultural and Home Demonstration ALrents--Slary
Schedule and Salary Adjustments.

     President Donovan stated that the Federal Government had passed
a bill which had received the sign:tture of President Truman, in-
creasing the salaries of Federal employees.  He stated that this law
included. county agricultural and home demonstration agents.  He
further pointed out that Dean Cooper h.a)d soubmi.tted a classification
and salary schedule for county agricultural and home demonstration
agents which he was recommending for adoption.  The President read
the following letter and submitted the clas3lfication and salary
schedule for employment of county agrioultural andT home demonstration
agents in Kentucky.

                                 July 6,, 1945
     President Donovan
     University of Kentucky

     Dear President Donovan:

     Attached is a list of salary adjustments which I wish to rcicm
     mendto become effective July 1, 1945, for county agricultu-
     ral and home demonstration agents and for county soils as-
     sistants who are employed under cur agreement with the Tenn-
     essee Valley Authority.   This recommendation and the roster
     are accompanied with a statement in which I am sure you will
     be interested, regarding the salary schedules and classifica-
     tions for the employment of county agricultural and home
     demorntration agents in Kentucky.

     A recent Congressional appropriation makes it possible to
     rearrange the salary schedule and, for the first time since
     the initiation of Extension work, to place the salaries of




 



12



county agricultural and home demonstration agents on a ba-
sis somewhat comparable with the salaries of competing gov-
ernmental agencies that require men and women of similar
training or who find our agents, because of their training,
especially valuable in their f ield of work.

The salary schedules for county agricultural and home dem-
onstration agents have developed through the years and
originally were based on a fifty-fifty-payment arrangement
made with counties.   Under this arrangement, many counties
with substantial funds were frequently more liberal and
therefore the salaries of agents of equal ability were often
at variance, those employed in the poorer counties receiving
a much lower rate of pay.   In the process of tine, these
salary variances were very inconsistent. When the institu-
tion took over the payment of all salaries, about 1939.
funds were not available to make the equitable adjustments
which seemed necessary and consequently the whole matter
has been left until the present.

The proposed new set-up will provide that no man will be
employed to fill the position of county agricultural agent
at a salary less than $2800 a year and that no woman will
be employed for the position of home demonstration agent at
a salary less than $2400 a year.   Provision is made for a
suitable basis for promotions as the agent develops and
brings about accomplishment  in a county..  Provision is
also made to bring in, at a salary considerably less than
that provided for county agricultural and home demorstra-
tion agents, young men and women who may require training
and who we expect will develop into suitable staff members.

I hope that you will recommend acceptance of the proposal by
the Board of Trustees.   It is very Important that all of this
should be made effective July 1, 1945.   Au you know, compel
tition is very severe.   Congress recently passed a Federal
workers pay-raise bill, providing for an average salary
increase of 15.9 percent for Federal employees.   The in-
crease in the proposed schedule submitted herewith varies,
as there has been no fixed application but rather a method
of bringing about what we consider a sound salary adjustment
and relationship.   The over-all picture involves a trifle
less than 15 percent increase although the increase recom-
mended varies considerably with individuals, in order to
bring about what we believe to be a sound program.   The
salary adjustment program will not be completed this year
but we expect to complete it during the next two years.
We have frequently found it necessary, from the standpoint
of available fun