xt7prr1pgs6d https://exploreuk.uky.edu/dips/xt7prr1pgs6d/data/mets.xml Lexington, Kentucky University of Kentucky 19351331 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, 1935-13-dec31-ec. text Minutes of the University of Kentucky Board of Trustees, 1935-13-dec31-ec. 1935 2011 true xt7prr1pgs6d section xt7prr1pgs6d

Mtinutes of the Mleeting of the Executive Committee of the Uni-
versity of Kentucky, Tuesday, December 31, 1935.

The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President McVey's office at 11:00 a.m.,
on December 31, 1935. The members of the Committee present were
Judge Richard C. Stoll, Chairman; Judge Robert C-. G-ordon, and J.
B. Andrews. President Frank L. McVey and Secretary D. H. Peak
were also present.

1. Minutes Approved.

The minutes of the meeting of the Executive Committee of Oc-
tober 31, 1935, were approved as published.

2. Bids on Bonds

President IMIcVey stated that in accordance with Resolution
No. 3, Section 12, passed by the Board of Trustees on November
7, 1935, the bonds of the University had been offered for private
sale in the sum of 8600,000 par value and that three bids for the
bonds had been received in due course.

a. These three bids were:

1, J. J. B. Hilliard & Son of Louisville, Kentucky, joint-
ly with Almstedt Brothers, Fidelity and Columbia Trust Company
(Bond Department), Stein Brothers & Boyce, The Bankers Bond Compa-
ny and the Security Trust Company of Lexington, Kentucky.

Price offered for the bonds - par.
Coupon interest rate 3.75% per annum.
Bonds to be annual serial.
Purchase to be suibject to the approval of the law firm
of Chapman and Cutler of Chicao,Illinois, as to form and legal-
ity.
Transaction to be completed by February 1, 1936.

2, Charles A, Hinsch & Company and the Wetil, Roth and Irv-
ing Company, both of Cincinnati, Ohio,
Price offered for the bonds - par.
Coupon interest rate 3.501 per annum,
Bonds to be annual serial.
Purchase to be subject to the approval of the law firm
of Chapman and Cutler of Chicag-o, Illinois, as to form and legal-
ity.
Transaction to be completed by February 1, 1936.

-3. W. E. Hutton & Company of Louisville, Kentucky, and
J. D. Van Hooser & Company of Lexington, Kentucky,

Price offered for the bonds to be "a sum equal to an
interest rate of 3.40% computed on the average maturity of-the
bonds according to the standard tables of bond values."

Coupon interest rate 3% per annum.
Bonds to be annual serial.
Purchase to be subject to the approval of the law
firm of Chapman and Cutler, Chicago, Illinois, as to form and
legality.
Transaction to be completed by February 1, 1936.

After the reading of these three bids, there was a
general discussion of the matter and the representatives of Groups
No. 2 and No. 3 were called separately before the meeting. Group
No. 1 was not represented.

It was the opinion of the Committee that probably the
transaction could not be completed by February 1, and the repre-
sentatives of Groups No, 2 and No. 3 were asked if they would ex-
tend the time to February 15 and both consented to such extension.

b, Resolution:

Thereupon Mr, Robert G. Gordon, seconded by Mr. J. B. An-
drews, offered the following resolution:

Resolved, that the bid of W. E. Hutton-& Company and J.
D. Van Hooser & Company be made a part of these Minutes and that
said bid with the date of the completion of the transaction
changed to February 15, 1936, be and is accepted by this Commit-
tee, subject to the approval of the Board of Trustees of the Uni-
versity; that representatives of the bankers, whose bid is hereby
designated as the lowest and best bid submitted to this meeting,
together with their legal advisers, shall confer with Dean James
H. Graham and that they jointly prepare a resolution, or resolu-
tions, wherein the terms and conditions of the sale of the bonds
are set forth in accordance with bid herein made by the bankers
and accepted by this Committee and that said resolutions shall be
presented to the Board of Trustees, at its next meetings for ap-
proval as to the action of this Committee, for the consideration
of said resolutions and for authorizing the sale of said bonds.

c, Bid Accepted:

Following is a copy of the bid accepted:

Cincinnati, Ohio

December 31, 1935

To the Honorable Board of Trustees,
University of Kentucky
Lexington, Kentucky.

Gentlemen:

We are informed that you have taken action prelimi-
nary to the issuance of Building Revenue Bonds under au-
thority of Chapter of the Acts of the General Assembly of
Kentucky 1934 to aid in financing the cost of constructing
and equipping three additional University buildings and
a central heating plant.

We propose that such bonds bear date of January 1,
1966, or such other date as may be preferred by you, ma-
ture serially on an equalized amortization basis, com-
mencing three years from the date of the bonds and ending
not more than thirty years from such date; be of the de-
nomination of $1,000 each with both principal and inter-
est payable at the office of the Treasurer of the Board
of Trustees of the University, or at the option of the
holder at some bank in the City of New York as may be
designated by you in the bonds. For such bonds bearing
interest at the rate of 3% per annum, payable semi-annual-
ly, when delivered to us at a bank of your selection in
the city of Cincinnati, Ohio, we hereby propose and agree
to pay you a sum equal to an interest cost basis of 3.40%
computed on the average maturity of the bonds according
to the standard tables of bond values.

We are informed that present plans contemplate the
issuance of bonds in the principal amount of six hundred
thousand dollars ($600,000), bearing interest at the rate
of four per cent (4%) per annum, and that amount of bonds
maturing as aforesaid would require an annual payment for
principal and interest of more than thirty-six thousand
dollars ($36,000). Under this proposal bonds in the
principal amount of approximately $705,000 can be issued
with an annual principal and interest charge of the same
amount, namely, thirty-six thousand dollars ($36,000).
This bid is for any part of 8705,000.

Upon the acceptance of this proposal, as hereinafter
provided, we agree to retain at our own expense, the firm
of Chapman and Cutler, of Chicago, Illinois, as bond
counsel, to cooperate with your counsel in working out
the procedure for the issuance of said bonds, it being
understood, however, that we shall not be obligated to
take up and pay for said bonds until a mutually satis-
factory basis shall have been agreed upon for the

security of the payment of principal and interest of
the bonds and also unless we have procured at or before
the time of such delivery of bonds to us the unquali-
fied approving opinion of said Chapman and Cutler as to
the validity of said bonds and the enforceability of
the security for their payment.

It is contemplated that this transaction should
be fully carried out by February 15, 1936, and by rea-
son of the uncertainty of economic and financial con-
ditions, which may seriously affect the marketability
of these bonds, we reserve the right to withdraw from
our commitment hereunder on notice to you at any time
after that date.

Acceptance of this proposal wil' be evidenced by
execution of a copy hereof by the authorized officers
of the Board of Trustees, pursuant to resolution, where-
upon this proposal shall constitute a contract for the
sale of said bond~s to us as aforesaid.

Respectfully submitted,

(Signed) W. E. Hutton & Company,
by S. A. Fetter, Manager,
Louisville, Kentucky, Office.

(Signed) J. D. Van Hooser & Company
by J. D. Van Hooser, President

3. Members of the Staff -- Out of State Fees.

By unanimous vote the following resolution was passed;

Resolved -- That members of the University staff who come
from other states will not be required to pay out-of-state fees for
tuition of their children who may attend the University or training
school of the College of Education.

4. Bill for Interest of Warehouse Lease.

The request for payment of $1250,00 interest due on warehouse
property lease was approved and ordered certified to Auditor of
Public Accounts in usual form.

5. Alumni Trustee.

The secretary of the Board reported that he had notified Gov-
ernor A. B.Chandler of the selection of nominees for Alumni Trus-
tee.

Notice

December
Nineteenth
1 9 3 5

Hon. A. B. Chandler
Governor of Kentucky
Frankfort, Kentucky

Dear Governor Chandler:

At meeting of the Board of Trustees held on : Dccember
17th, count of the votes in the alumni election was made
to determine the name to be submitted to you for appoint-
ment as alumni member of the Board of Trustees to suc-
ceed Louis Hillenmeyer whose term of office expires De-
cember 31, 1935. The count of the vote showed the
three highest numbers of votes to be cast for the fol-
lowing parties:

Louis Hillenmeyer, Lexington
Arthur Bryson, Ashland
Mrs. Thomas Underwood, Lexington.

Report of the count was made to open session of the Board
and order was thereupon made that the Secretary of the
Board certify to Your Honor the result of the election.

Very truly yours,

D. H. Peak,
Secretary of Board bf Trustees.

President McVey then stated that he had been informed by Gov-
ernor Chandler of the receipt of the notice above reported, and that
the Governor stated that he expected to reappoint Mr. Hillenmeyer,

6. Municipal League Rooms.

The President suggested that the Municipal League had asked
for a room or rooms at the University of Kentucky for offices.
The Executive Committee deemed it inadvisable to permit organiza-
tions not connected with University work to be housed on the camp-
us and suggested that the President notify the Secretary of the
Municipal League that rooms are not available.

On motion the meeting adjourned.

D. H. Peak
Secretary of the Board of
Trustees