xt7sbc3svf7f https://exploreuk.uky.edu/dips/xt7sbc3svf7f/data/mets.xml Lexington, Kentucky University of Kentucky 19410321 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, 1941-03-mar21-ec. text Minutes of the University of Kentucky Board of Trustees, 1941-03-mar21-ec. 1941 2011 true xt7sbc3svf7f section xt7sbc3svf7f 

    Minutes of the Regular Meeting of the Executive Committee of
the Board of Trustees of the University of Kentucky, March 21,

     The Executive Committee of the Board of Trustees, University
of Kentucky, met in the President's Office of the University Friday,
March 21, 1941, at 10:30 a.m.   The members of the Committee present
were Judge Richard C. Stoll, Chairman; Robert P. Hobson, H. S.
Cleveland arnd Lee Kirkpatrick.  President Thomas Cooper and D. H.
Peak, Secretary of the Board, were present.

     1. Approval of Minutes.

     The minutes of the meeting of the Executive Committee of Febru-
ary 21, 1941, were approved as published.

     2, Financial Report.

     The Business Agent submitted the financial report for February,
1941.   The report was ordered filed, and the summary thereof, or-
dered published in the minutes, reads as follows:

                      GENERAL FUND

FEBRUARY 28, 1941

Operating Accounts

Budgeted Income - - - - - - - - - - - - - -
Estimated Reduction in Budgeted Income  - -
Balance - - - - - - - - - - - - - - - - - -
Salaries and Other Commitments - - - - - -
Available for Expense, Supplies & Equipment
Expended to February 28, 1941 - - -  
Unencumbered Balance  - - - - - - - - - - -

- - - - - $1,495,673.74
- - - - -     13,000.00
- - - - -  1,482,673.74
-  - -6--  1,113X260.19
- - - - -    369,413.55
- - - - -    270-621.92
- - - - -     98,791,63

Patterson Hall

Budgeted Income -  
Salaries and Other Commitments - - - - - -
Available for Expense, Supplies & Equipment
Expended to February 28, 1941 -   - - - - -
Unencumbered balance  - -  




ExDeriment Station Fund

Budgeted Income - - - - - - - -
Salaries and Other Commitments
AvAilable for Expense, Supplies
Expended to February 28, 1941 -
Unencumbered balance - - - - -

- - - - - -
- - - - - -
& Equipment
- - - - - -
- - - - - -

- - - - 8470,078.22
- - - - 310,7841,00-  
- - - - 159,294.22
- - - -  82,827.45
- - - -  76,466.77

Agricultural Extension Fund

Budgeted Income - - - - - - - -
Salaries and Other Commitments
Available for Expense, Supplies
Expended to February 28, 1941 -
Unencumbered balance  - - - -

- - - - - - -
- - - - - - -
& Equipment -
- - - - - - _
- - - - - -   -

- - -  758,720,00
- - -  634.196.00
- - -  124,524.00
- - -   76,392.54
- - -   48,131.46

                     Special Appropriations

Library Equipment               - - - - - - - - - - - - - -
Expended to February 28, 1941 -
Unencumbered balance  -  

Scientific Equipment  - - - - - - - - - - - - -
Expended to February 28, 1941 - - - - - - - - -
Unencum-,bered balance - - - - - - - - - - - - -

Home Economics Equipment - - - - - - - - - - - - -
Expended to February 28, 1941    -
Unencumbered balance - - - - - - - - - - - - - - -

Engineering Equipment  - - - - - - - - - - - - - _
Expended to February 28, 1941 - - - - - - - - - - _
Unencumbered balance  - - - - - - - - - - - - - - -

- -   lO,000.00
- -    9,907,36
  - -     g92.64




     3. Requisition CommLittee Report,

     The Requisition Committee filed written report of its action
each week from February 13, 1941, to Mvarch 19, 1941, inclusive,
The report shows that orders were made by the Business Office on
authority of the Requisition Committee in the manner prescribed
by the Board of Trustees and state laws, running from No. 6742 to
No. 7810.   The report was examined, and on motion and second the
orders and budget additions named therein were ratified and ap-
proved, and payments on said orders were authorized and approved,

_ _
_ _
_ _



     4. Budget Discus sion.

     The President stated that he is preparing the Budget for the
year 1941-42 to be presented to the April meeting of the Board of
Trustees.   He stated that there would be a probable reduction of
inco.me in the General Fund, compared to this year, due to the un-
certainty of' student enrollment, and stated that it is necessary to
control expenditures so as to keep them within the income that miay
be realized,   The Executive Committee concurred with him in the
plans for budget as outlined.

     5. Refunds to Students.

     The President stated that a voucher for reimbursement to Betty
cash of refunds made to students on fees, board and room rent had.
been returned to the Business Agent, by the State Division of Ac-
counts and Control, noting certain requirements that heretofore
had not been made in the instance of such refund vouchers, among
these being the approval of the Attorney General.    He presented
a statement of the Business Agent giving the facts in the case
presented, and explaining in detail the system and rules of the
University in regard to student refunds.

     After discussion of the questions raised, the President, Regis-
trar and Business Agent vere directed to revise the rules for making
refunds to students and to present the revision to the Board of
Trustees at its April meeting, 1941, for approval.

     6, Out-of-State Travel.

     a. Dean Taylor's Request.

     The Business Agent reported that he had submitted to the State
Department of Finance for encumbrance and payment the request of
W. S. Taylor for expense incurred in attendance at a meeting of the
American Association of School Administrators, held at Atlantic
City, February 22-27, 1941.   This was done in compliance with the
resolution passed by the Executive Committee at its February
rieeting, 1941, which resolution "granted, approved and ordered"
attendance of the meeting and payment of the necessary expenses in-
curred,   The request for payment was made to the State Division of
Accounts and Control on MKiscellaneouE Encurfbrance Requisition, In
answer to that request, following letter was received:



                     DEPARTIENT OF FINANCE
                            Frai-dff ort

                                     M11arch 13, 1941

     IMir. D, H. Peak, Business Manager
     University of Kentucky
     Lexington, Ky.

     Dear Mir. Peak:

               I have your miscellaneous encumbrance seeking
     to encumber money to pay Dean William S. Taylor for ex-
     penses incurred in attending meeting at Atlantic City.

               It will be necessary for you to submit to
     this office an out-of-state travel request.   I shall be
     glad, however, to make the information which you have
     already submitted a part of the out-of-state travel

                                   Yours very truly,

                                   (Signed) Frank D. Peterson
                                            Division of accounts and

     The Business Agent was directed to submit out-of-state travel
request, according to the suggestion made in said letter of the Di-
rector of the Division of Accounts and Control.

     b. W. A. Price - Central State Plant Board and North Central
        State Entomologists meeting, Columbia, Missouri,

          The President requested approval of out-of-state travel
expense of Dr. W. a, Price, head of the Department of Entomology
and Botany, Experiment Station, in the amount of 854.OO, to a-tend
a meeting of the Central States Plant Board and North Central State
Entomoloc'ists to be held at Columbia, Missouri, M.1arch 25-29, 1941,
The President stated:

          This Board consists of representatives of eleven
     states, of which Kentucky is one.  It meets to de-
     termine the terms and requirements of inspection of
     plants and their interstate movements.   The Board de-
     velops the rules governing these activities and the
     requirements basic to interstate movements of these im-
     porta.nt oroducts.



          The movement of plants inter-state affects a good
     many people in Kentucky and I feel it is of the utmost
     importance that Kentucky should have a representative of
     the Board present to deal with matters which may arise.
     Dr. W.A. Price is administrator of the Kentucky Nursery
     Inspection Act.

     On motion and second the following resolution was passed:

          President Cooper having recommended approval of the
     request of Dr. W. A. Price for expense to be incurred in
     the amount not to exceed $54.00 in his attendance at the
     annual meeting of the Central States Plant Board and North
     Central State Entomologists to be held at Columbia, Missouri,
     March 25-29, 1941, and the Executive Committee being advised
     as to the necessity of the Agricultural Experiment Station
     of the University of Kentucky having a representative at
     said i:eeting in order to protect the interests of the
     state in determining terms and requirements of plants and
     their inter-state movement, and the development of rules
     ,overning such activities, the Executive Committee deems
     such attendance a necessary part of the business and op-
     oration of the University of Kentucky.

          Therefore, the request for the expense of Dr. W. A.
     Price in attending then meeting aforesaid in the sum not
     to exceed $54.00 is granted, approved and ordered and the
     Business Agent is directed to submit to the Attorney
     General for his approval the usual request for item of
     state travel required by the Division of Accounts and

     c. D. H. Peak - Central Association of University and
        College Business Officers, University of Wisconsin.

     The President presented request of D. H. Peak, Business Agent,
for permission to attend the Annual Meeting of the Central Associa-
tion of University and College Business Officers to be held at the
University of Wisconsin May 11, 12, and 13, 1941, and recommended
approval by the Executive Committee of travel and other necessary
expense to be incurred in attending the meeting in the amount of

     The President stated that the University has been a member of
the Association since about 1917, and that the Business Agent has
attended most of the annual meetings during the period of' member-
ship.  lvleiabership in the Association and attendance of the meetings
have proved of great value to the Business Administration of the Uni-


     One of the studies to be reported at the comaing, meeting is
that of "Financing Plant Additions from Borrowed Funds", assembled
and compiled by R. B. Stewart, Controller of Purdue University,
the data for the State of Kentucky having been assembled by D. H.
Peak.   The Droblem of National Defense in relation to schoolsa-nd
especially to State Universities, and the question of student enroll-
ment during the coming year of political unrest and defense activi-
ties need the most careful attention of administrative Officers of
dolleges and universities.  These and similar questions will stake
up much of the time of 'the meeting, and the University of Kentucky
should benefit by having a representative -sit in on such discussions.

     President Cooper having recommended the act roval of the request
of D. H. Peak for Permnission to attend, and allowance of expenses
iJo be incurred in the amount of $60.00, in attendance, the annual
meeting of the Central .Association of University and College Business
Officers to be held at the University of Wisconsin, Miay 11, 12 and
13, 1941, and the Executive Comci:-ittee being advised as to the necessi-
ty of the University of Kentuc1:y having a representative attens the
meetin- in order that the im-portant reports and studies to be made at
that meettin- may inure to the benefit of the administration of the
University,   the Executive Committee deeirs such attendance a neces-
sary puart of the business of the University of Kentucly;

     Therefore, the request of D. 1i. Peak to attend the aforesaid
meeting is granted and his expense in attending the meeting in *the
sum not to exceed 860.00 is granted, sproved, and ordered.  The
Business Agent was directed to submit to the Attorney General of the
State of Kentucky the formral request by the State Department of Ac-
counts and Control for approval of out-of-state travel.

     7. Insurance - Fire and Tornado.

     The President presented schedules of Fire and Tornado Insurance
on all Uni.vorsity property as revised by the State Division of Insur-
ance.   it appeared from the statement of the Business Agent that
a revision of these schedules may be necessary.   The President and
Business A-ent were authorized to make investigation of the schedules
and to submit to the Board of Trustees at its April meeting their
suggestions as to changes.

     8. Gynasium Note.

     The report of the Business Agent, copy of which follows) was



                    GY1ASIUM NOTE

      Following orders of the Board of Trustees heretofore
 made, I paid on March 14, 1941, from Grants-in-Aid Funds
 on the Gymnasium Note due the First National Bank and
 Trust Company, Lexington, Kentucky, $500.00 on principal
 and $162.'75 interest.  A renewal note for the balance
 due was executed in the sum of $4,925.00.

                             (Signed) D. H. Peak
                                     Business Agent

9. Change of Enrollment Fees - Law Students.

The President presented following correspondence:

a. Letter of Dean Evans.

                                  February 17, 1941

President Thomas P. Cooper
University of Kentucky

My dear Prosident Cooper:

The law school staff desire to have the current issues
of the Law Journal in the hands of students.   The reasons
are obvious,   This cannot well be done vwithout expense.
It has been very difficult for the student business man-
ager to collect the $1.50 subscription price from students.
Therefore, it is desired that the $1.50 be added to student
tuition,   The students themselves desire this arrangement
to be made.  A request of this sort was presented to the
President last year, but a somewhat different method from
the one suggested was pursued, namely, it was provided that
the $1,50 should be taken out of the breakage fee.   There
is some objection to this metshod because: (1) the business
office forgets to t-ke it out; and (2) the sun is not re-
ceived from the business office until after school is out.

Professor Moreland and the editor of' the Law Journal wish
to discuss the Latter with you and see if it will not be
convenient to put the 1.l50 on the tuition and have it
collected in the regular way, as other fees are collected,

                                 Very truly yours,

                                 (Signed) Alvin E. Evans



   b, Recomnendation of Dean Eovans.

                                      LMarch 27 , 1941

   President Thomas P. Cooper
   University of Kentucky

   My dear President Cooper:

   In order that the Kentucky Lew Journal may be distributed
   to the students of the Law College without loss, I hereby
   recor.mmend that a 1 charge be added to the regular tuition
   fee.   The result of this would be that $1 would be added
   to the $53 tuition for students from Kentucky, making the
   total ^354,and the same amounti would be added to the $83
   for out-of-state students, making the total $84.
                                      Very truly yours,

                                        (Signed) Alvin E. Evans

    c. Recommendation of the President.

        "in accordance with the recommendation of Dean Evans,
    members of the staff and students. I recommend that the fee
    for the Collic,;e of Law shall be set at %54.00 per semester
    for state and $84.00 for out-of-state students, 75 cents
    of which from each student will be available through
    the budget of tile Colleoe of Law for the purpose of covor-
    ing, student subscri-p)tions to thne La.w Journal, effective
    for the cornin, school year 1941-4''."

    On notion, seconded and carried, it was ordered that the enroll-
ment fee charged students in the College of Law be increased her
semester for state students to $54.00; for out-of-state students to
$84.00.   It was further ordered that seventy-five cents of the
increased fee shall be allocated each semester to the budget of the
College of Law, to be used in assisting to pay the costs of publica-
tion of the Kentucky Law Journal, the student being entitled to
copies of the Law Journal during his period of enrollment.

     10. Deeds to Tathan. Springs Property to be Sent to Secretary
of State,            _

     The Business Agent was directed to send the Deeds to the Ta'zharn
Springs property and such other papers as the law requires to the
Secretary of State for record.



     11, Paris Newspaper Files __ Offered as Loan.

     The President presen-ced for consideration on the suggestion of
Professor T. D. Clark a proposal to place in the University Library
on an agreement loan, files of the Kentuckian-Citizen and Bourbon
News. Consideration of the proposal was deferred for purpose of
making changes and corrections therein.

     12. Buell Armory - Request for Use,

     The President submitted following:

                                     I:larch 10, 1941

     Dr. Thomas Cooper, President,
     University of Kentucky,
     Lexington, Kentucky

     Dear Doctor Cooper:

          The commanding officer of the Lexington State Guard
     Company, Captain J. Cabell Breckinridge, requests your
     permiission to drill and train his unit In Buell Armory
     until it is organized, and until better weather permits
     his training out-of-doors,.  It appears that the armory
     on Henry Clay Boulevard is unsuited for training foot
     troops in drill.

          I recommend that permission be granted him.

                                      Sincerely yours,

                                      (Signed) Howard Donnelly,

     President Cooper asked for approval of the Executive Corniittee
of the request of Captain Brec]tinridge.  The President was authorizet
to permit the use of Buell Hall for the purpose stated in the request,
it being recommended by Colonel Howard Donnelly.    It was suggested
that, due to the problem of national defense, requests for use of
the Armory and equipment under control of the Military Department
may be granted by the President if deemed advisable by him and if
approved and advised by the Comriandant.



13, Eni-Aneerinp Courses - National Defense.

a. Dean Grahamls Statement.

                                   March 13, 1941

President Thomas Cooper
University of Kentucky

My dear President Cooper:

     I invite your attention to the attached "plans for
short engineering courses of college grade", prepared in
due form and authorized in preliminary form by the United
States Commissioner of Education for this College.   You
will note that we have designated Professor D. V. Terrell
as Institutional Representative.

     I can state that Professor Terrell has carefully
prepared the proposed courses, to-wit:

     Applied Mathematics
     Heating and Ventilating Engineering
     Fundamentals of Electricity
     Engineering Drawing
     Concrete Technology

and I have checked the estimates of costs therefor, which
I believe to be ample to cover all expenses,    These costs
are to be paid to the University by the United States of
America, by and through the Commissioner of Education in
due course and are to be disbursed by and through the bus-
iness Agent of the Unirersity.  Furthermore, the required
quota of matriculation has been secured.

     Therefore I request and recommend that these courses re-
ceive your approval on behalf of the University.

                              Yours truly,

                                 (Signed) James H. Graham

b, Presidentls Recommendation.

     "At previous meetings the Executive Committee had au-
thorized the undertaking of special educational efforts that
would contribute to defense. The College of Engineering has
had under consideration a plan for engineering courses of
collerge grade in connection with national defense. Follow-
ing the recommendation of Dean Graham, I have approved the
offering of the courses and have signed this plan for the
University of Kentucky.   Through the Office of Education
certain contributions of funds are made so that the work may
be carried without cost to the State. I ask approval."



     On motion, seconded and carried, the "Plan for Short Engi-neer-
ing Courses of College Grade", authorized and approved for this
College by the United States Commissioner of Education, are .7-)roved
and the action of the President in signing the form of acceptance
of the said Commissioner's plan is ratified and approved.  The
funds received from the Federal Government for costs of conducting
these courses are to be carried on the books of the Business Office
as Federal Trust Funds and disbursed by the Business Agent, on cer-
tific;ation a-nd approval for payments made by the Dean of the College
of Engineering or the Institutional Representatives nmried in the

     14. Survey of Facilities of R.O.T.C. Unit by the United States
_ar Department.

     The President presented to the Executive Committee a request
of tiie War Department to obtain information for possible use of
R.O.T. C. facilities during summer months.  lie informed the Executive
Committee that, subject to its consent, he had approved of the Pro-
fessor of ililitary Science giving this information to the War Depart-
ment.   It was understood thatv this does not commit the War Depart-
ment nor the University of Kentucky, nor are commitments implied.

     The action of the President as stated above Was approved.

     15, State-wide Eusic Prolec   W. P. A,

     President Cooper presented following letter from Dr. Capurso,
the President stating that this is a sub-project under the State-
wide W.P.A. Recreation project heretofore granted.

     February 25, 1941

     Dr. Thomas P. Cooper
     fcting President
     University of Kentucky

     My dear Sir:

     I are inclosing the ProJect Proposal submitted by Miss
     Grace F. Whitney, State Supervisor of the State-Wide Mu-
     sic Project, to the effect that the Mlusic Department of the
     University of Kentucky is co-sponsor of the project designed
     to service the army camps and defense areas with musicians
     and music teachers who will have charge of the music, recre-
     ational, and educational activities in this project.    You
     will note that there is included in the Sponsor's Certifi.
     Cato and Agreement the following statement:



         It is understood that the University of Kentucky
         will not be responsible for any cash contributions,
         but will be able to furnish consultative services
         from time to time by its Department of h;usic.

    Since this statement has been written into the agreement
    and the University is under no financial obligation to the
    project, I feel that the Music Department of the University
    could cooperate with the W.P.A. in this undertaking.

    Sincerely yours,

    (Signed )Alexander Capurso
             Executive Director.

    On motion, seconded and carried, President Cooper and Secretary
D. H. Peak were authorized to sig'n for the University the agreement
to sponsor proposed project named above with the following clause
inserted therein:

     "It is understood that the University of Kentucky will not
     be responsible for any cash contributions, but will be
     able to furnish consultative services from time to time
     by its Department of I.t1usic."

     16. Contract for Pilot Training.

     The President presented the contract for Pilot Training. Pres-
ident Cooper was authorized to sign the contract by order made at
tbe meeting of the Executive Committee February 21, 1941 (Sec. 12,
Minutes of that meeting).   The contract with accompanying instruc-
tions was ordered copied in the minutes.

                     Department of Commerce
740 (CPT-4o-C)            Washington
Revised January 1,
                                          January 27. 1941
                                          (Date of Order)

                                          Order No. 41-1248o

       University of Kentucky
       Lex-ington, Kentuckl y

       Contract Number Cca-  9394  , for Eround instruction
       under the Private Course, Collegiate Phase (Soring
       Session) of the Civilian Pilot irainin, Progra   is
       accepted and one fully signed duplicate of the contract
       is enclosed for your files.


    It is imperative tha . when subriittinj vouchers (Forrm
    1034) for payment under this contract you clearly in-
    dic,-te thereon the contract num.iber as well as the
    order number and date shown above.

                                (Signed) L. W. Lawrence
                           Assistant Chief, Office Service Division

     Fori.-.i ACA-724 (CPT-40)
     Revised January 1, 1941

                    DEPAR.T1MNT OF CO`1RERCE

                                         Contract No.CcaQ- 8934

                     (Ground Instruction)
                        (SPRING SESSION)

     THIS CONTRACT, entered into this 27th day of January, 1941,
by the United States of America, hereinafter called the Government,
represented by the contracting officer executing this contract,
and University of Kentucky, a corporation organized and existing
under the laws of the State of Kentucky,

a partnership consisting of

an individual trading as_

hereinafter called the Contractor, xwhose place of business is lo-
cated at Lexin-gton, Kentucky, v'itnesseth that the Parties hereto
do mutually agree as follows:

     ARTICLE 1. Services to be    rfo2 od.  The Contractor shall,
in accordance with the procedure to be specified by the Ad-minis-
trator of Civil Aeronautics, or its duly authorized represent;ative
(hereinafter referred to as the Administrator), select for partici-
pation in the pilot trainin,, progriax, pursuant to the Civilian
Pilot Training Act of 1939 (53 Stat. 855) such number of qualified
students not to exceed ten, as nay be allocated to the Contractor
by the Government.   The Contractor shall exercise general sup-
ervision over each such student in all matters pertaining to his
participation in such program except at such tines as such student
may actually be receiving instruction from his flight instructor.
The Contractor shall provide and umaintain a ground school course



consistin,; of seventy-t;7o (72) classroom hours of instruction
which shall include twenty-four classroorm hours in each of the
subjects of Navigation, ieteorology, and Civil Air Rerulations
in accordance with the curriculum: prescribed in the "Outline For
Controlled Private Ground School Course (College Phase)" attached
hereto and made a part hereof, and shall provide in connection
therewith such textbooks and other informative material as are
not sv.pplied by the administrator, such instructors a-pproved by
the Al-ministrator,and such classrooms and other facilities and
equipment as r.may be necessary adequately to conduct such course
of instruction,

     ARTICLE 2. Student payment,   The Contractor may require
each student participating in the pilot traininE programi to pay
an amount not exceeding ten dollars ($1.oo) as a course fee,

     ARTICLE 3. Insurance and M.,edical Examination.  It shall
be the responsibility of the Contractor, prior to the beginning
of instruction under this contract; (a) to ascertain that each
student has purchased insurance coverage in the amount of $300o.00
accidental death and dismemberment and     oo1000,00 hospitalization
and medical reimbursement for injuries sustained by the student
as a student pilot under the requirements of the Civilian Pilot-
Training Prograr.. while flying, Coing directly to, being at, or
returning directly fror. classes, airports, or places of forced
landings, ;hich coVerage shall rer.main in force for one year or
until the student completes the courses and receives a Civil
Aeronautics Private Pilot's Certificate, or is discontinued,
whichever occurs first; (b) to ascertain that each student 1s1as
taken the recuired Civil .ieronautics flight physical exwiination,
driven by the flight surgeon approved by the Administrator, Band
possesses a student pilot certificate of corametcial CPT grade,

     The Contractor shall be responsible for filing with the Ad_
ninistrator, prior to the initiation of instruction under this
contract, evidence, in such form and ranner as the Governoent
may require, that the above provisions havGe been coraplied with,

     ARTICLE 4. Transportation. The Contractor shall make suit-
able arrangements for the transportation of the students from the
campus to and fron the airport .!here the flight instruction is to
be given.

     ARTICLE 5.  Procedures and forms,  The Contractor shall con_
ply with such procedures, make such reports to the administrator,
and submit to such inspections and exa-uinations by officers or
employees of the Government as the Admiinistrator shall require,
and shall comply witth all applicable rules or regulations  roor.ul-
gated by the administrator pursuant to the Civil Aeronautics act
of 1938 (52 Stat. 973) or the Civilian Pilot Training; Act of 1939
(53 Stat, 855).

     ARTICLE 6, Duration. All services under this contract shall
be completed on or before June 30, 1941, unless the contract time
is extended by the Government,



    ARTICLE 7. Payment.  (a) The Government shall pay the Con_
tractor forty dollars (,340.00) for each student successfully com.-
pleting the ground school course subjects of navigation, rmeteorol-
ogy, and Civil Air Regulations and passirng the final Civil Aero-
nautics written examinations in these subjects.

                          (b) In the event that a successfully
enrolled student is inducted into the military services of the
United States during the course of instruction, and in the event
that sufficient time is not available, previous to such induction,
to allow fTor the corpletion of the course and the required CAA
final written exaxination, then the Contractor shall be paid at
the rate of $.55 for each hour of instruction the student received
prior to his withdrawral from the course.  Provided that, in no
event shall the payment exceed the sumr of $40.00.  This basis of
settlement shall not apply to students withdrawing from the course
for any other reason.

     Except as provided in Article 2, the Contractor shall not
receive any other compensation for the performance of this contract.

     ARTICLE 8. Disputes.    Except as otherwise specifically pro-
vided in this contract, all disputes concerning questions of fact
arising under this contract shall be decided by the contracting
officer, subject to written appeal by the contractor within 30
days to the Administrator, whose decision shall be final and con-
clusive upon the parties hereto.   In the mieantime the contractor
shall Diligently proceed with performance as directed,

     ARTICLE 9. Covenant Against Contingent Fees: The Contractor
Warrants that he has not eimployed any person to solicit or secure
this contract upon any agreement for a commission, percentage,