<pre style="white-space: pre-wrap">xt7vt43hxw44 https://exploreuk.uky.edu/dips/xt7vt43hxw44/data/mets.xml Lexington, Kentucky University of Kentucky 19320418 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1932-04-apr18. text Minutes of the University of Kentucky Board of Trustees, 1932-04-apr18. 1932 2011 true xt7vt43hxw44 section xt7vt43hxw44 


    Minutes of the regular quarterly meeting of the board1
of Trustees, University of Kentucky, for Monday, April 18, 1932.


     The Board of Trustees of the University of Kentucky met in
regular quarterly session in the President's office at the Uni--
versity on Monday, April 18, 1932, at 10:30 a. m.    The follow-
ing memifbers were present:  Dr. W. W. Wash, Mr. Louis E. Hillen-
meyer, Mr. Robert G. Gordon, Mr. J. B. Andrews, Mr. James Park,
Judge Richard C. Stoll, Mr. E. B. Webb, and Mr. J. R. Rash*
Meeting with the Board were Frank L. McVey, President of the Uni-
versity, and Wellington Patrick, Secretary of the Board.

     The minutes of the meeting of the Board for the month of
December, 1931, and the minutes of the Executive Committee for
January, Febmuary ald March, 1932, were all approved as published.

     (1) Report of the Business Agent.  The report of the Business
Agent for the month of March was presented and a motion was made,
seconded and carried that the report be entered in the minutes.
The report was as follows:


                                                EXHIBIT "B"


  Current
  Month


14,390.69


State of Income and Expenditures
        Month of March 1932


                            Previously
                            Reported


General Fund Income
Federal Apprtpriation   42,750.00
Vocational Ed. Bd.        5,879.62
State Tax               761,768.42
  Int. on Liberty Loan
  Bonds                      850.00
  Int. on Endowment Bonds  8,644.50
  Student Fees            146,373.88
  Student Fees - SumS.ch. 46,861.90
  Student Fees - U.H.S.   10,180.00
  Student Fees - El.Tr.Sch.ll,871.05
  Student Fees - Un. Ext.  20,918.63
  Misc. Receipts           18,596.13
  Special Agr. Appro.       2,253,26
  Rentals                   2,590.40
  Men's Dormitories        17 395.74
              Total     1,096,933.53


  Riscal
  Year
  To Date


42, 750.00
  5,879.62
776,159.11


                85QQ00
              8,644.50
1, 683.96  148, 057.84
             46,861690
    30.00   l0,210.00
1,165.00   13,036.05
4,226.99   25,145.62
1,979.20   20,575.33
              2,253.26
    246,50   2,836.90
    219.75   17.615.49
23 942.09 L,120,875.62


Expendit ures
  Instruction
  Adm. Exp. & Maint.
  Add. & Betterrments
              Total
  Excess of Income over
  Expenditures


639, 852.15
271,126.57
106,508. 67
1,017 487.39

   79,446. 14


6, 798.60   646,641.75
15,893.67    287,020.24
1,038.95    107 547. 62
23,722.22  1,041,209.61


219 87


-   .796.01


Patterson Hall Income
  Board                     48,068. 33
  Misc. Receipts               154.35
  Room Rent - Summ-ner Sch.  4, 777. 75
             Total          53_ 000. 43


Expenditures
  Expense
  Add. & Betterments
             Total


34 718. 78
8,844.25
ds3,s563. 03


2, 362.20
   58. 55 .

2 420. 75


5, 824.10

5. 824. 10


Excess of Income over
Expenditures


General Fund Income
General Fund Expend.


     9,437.40

1,149, 933. 96
1,061,050.42


(3,403._35)

26,362.84
29,546.32


   6,-034.05

1,176,296.80
1 090,596.74


Excess of General
fund Income over
Expenditures            88,883.54
Excess of Receipts
over Expenditures for
General Ledger accounts 89,522.15
Excess of Receipts over
Expenditures for the
fiscal year to date -
General Fund           178,405.69


(31,183.48)


(33$167.95)


(361 351. 43)


85,700.06


56,354.20


142,054 26


Excess of Receipts over
   Expenditures for the
   fiscal year to date -
   General Fund
Cash in Banlk July 1, 1931
   General Fund
Cash in Bank March 31, 1932
   - General Fund


142,054. 26

(107, 858. 56)

  34, 105. 70


50 430.53
   212.90
 4, 777. 75
 55,421.18


40,542.88
8,844.25
49. 387. 13


.


3.


Trust Fund Income
  Student Loma Fund
  Student Notes Pa.id
      Total Receipts

Expenditures
  Expense
  Student Notes
      Total

Excess of Receipts over
  Expenditures
Excess of Receipts over
  Expenditures for the
  fiscal year to date -
  Trust Fund
Cash in Banfk July 1, 1931
  - Trust Fund
Cash in Bank March 31, 1932
- Trust Fund


2,057.15
3,449.80


149.11
256.63


5,506.95      405.74     5912.69


  425.57       42.00       467.57
4,300.00      728.00     5,028.00
4,725.57      770.00     5,495.57


  781.38     (364.26)      417.12


2,206.26
3.706.43


  417.12

1. 417. 64


1.834. 76


Experiment Station Income
  Hatch - Fed. Appro.
  Milk and Butter - Cash
  Receipts
  Beef Cattle Sales
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales
  Farm Produce Sales
  Horticultural Sales
  Seed Test
  Rentals
  Miscellaneous
  Fertilizer - Fees
  Public Service - State
    Appro.
  Public Service - Misc.
  Fed.ding Stuffs  Fees
  Adams - Federal Appro.
  Serum - Sales
  Serum - Virus Sales
  Serum - Supply Sales
  Serum - Misc. Receipts
  State Appropriation
  Creamery - License Fees
  Creamery - Testers' Lic.
  Creamery - Glassware
    Tested
 Robinson - St. Appro.
 Robinson - Misc. Rec.


11, 250. 00

8 326.08
1 076. 35
   198. 81
   424.93
   710.14
 2, 151. 30
 1,679.69
 17 180. 05
    22.00
 3,203.36
 2,641.86
 8 191. 00

 5 499.99
    39. 60
22 242. 15
11 250. 00
2 181. 13
   100. 35
   123. 55
   53.41
12,340. 03
5, 555. 00
1 9 812. 00

   211. 44
 5, 202. 16
   500. 09


   873.92


   50. 62
   179. 37
   39.76
   19.70

   171.57
   338. 51
10,473.00

1,833.33

2,212.76

   185.82
   11.10
   21.25

 5,673.37
    49.50
    46.00

    36.29
 1,529.28


11 250. 00

9,200.00
1, 076. 35
   198. 81
   424. 93
   760. 76
 2,330.67
 1 , 719. 45
 1 ,199. 75
    22. 00
 3 374.93
 2,980.37
 18,664.00

 7 333.32
    39. 60
24,454.91
11 , 250. 00
2,366.95
   111. 45
   144. 80
   53.41
18, 013. 40
5, 604. 50
1, 858. 00

   247. 73
 6,731.44
   500.09


4.


West Ky. St. Appro.    5,581.28
West Ky., Misc. Rec.     208.49
Purnell - Fed. Appro. 45,000.00
St. Appro. - Patterson
Farm Pur.            25,O00.00
Nursery Inspection -
Vees                  1,430.00
Nurse~ry Inspection -
St. Appro.              682.96
Poultry Improvement    1,630.00
Cream Grading          6,150.00
Blood Test             1.126.25


Total      194,975.45


Expenditures
  Expense
  Add. & Betterments
            Total


261, 950. 06
2,409.39
264a 359. 45


1 576.86
  249. 59


115.00

352.90

300. 00
109.25


79158.14
   458. 08
45, 000.00

25,000.00

1,545.00

1,035.86
1,630.00
6,450.00
1.235. 50


26, 448.75   221X424.i20


293,162.05  291,112.11.
    234.96     2,644.25
 29,396.91   2932756.36


Excess of Expdndi-
tures over Income   (69,384.00)
1930-1931 Accounts Pay-
able liquidated during
Current Year        (16.511.37)
Excess of Expenditures
over Receipts       (85 895.37)
Excess of Expenditures
over Receipts for the
fiscal year to date -
Experiment Station
Cash in Bank July 1, 1931 -
Experiment Station


(2 948.16)


(2,948.16)


Cash in Bank March 31, 1932 -
Experiment Station


(72,332.16)


(163 51137)

(88 ,84353)


(88,843.53)

60,174.95


(28,668. 58)


Extension Division Income
  Federal Smith-Lever
  Federal Add. Co-op.
  Fed. Supp.
  Federal Capper-Ketoham
  State Smith-Lever
  State Capper-Ketcham
  Urban Garden Fund
  County and Other
          Total


148, 310.55
31, 000.00
53 091.74
36 801. 18
18, 793. 12
3,920.07
5 000.00
1, 624. 19
29,  085


17,726.59


   138. 76
17,8-65. 35


148,310.55
31, 000. 00
53, 091.74
36 , 801. 18
36 519. 71
  3,920.07
  5, 000.00
  1,762. 95
316, 406.20


Expenditures
Expense


324,550.76


286.529.t88


38,0J20. 88


.010.97


5.


Excess of Expenditures
over Income             12,
Excess of Expenditures over
Income for the fiscal year
to date - Exten.Div.
Cash in Bank July 1, 1931
- Extension Div.
Cash in Bank March 31,
1932 - Exten. Div.


Summary
General Fund Income   1,149,933.96
Trust Fund Income         2,057.15
Exper. Sta. Income      194,975.45
Exten. Div. Income      298,540.85
             Total      1, 645,507.41

 General Fund Expendi-
 tures                1,061,050.42
 Trust Fund Expend.          425.57
 Exp. Station Expend.    264,359.45
 Exten. Div. Expend.     286,529_88
             Total      1,l612365.53


(20. 155. 53)


(8144.56)


(8,144.56)

6, 905. 79

(1 . 238. 77)


26 362. 84
   149.11
26 448.75
17,865.35


1x,176 296.80
    2,$206.26
  221,424.20
  336,406 Q20


70, 826.05  1a716,3335.46


29,546.32   1,090,596.74
- 42.00           467.57
29,396.91     2935 756.36
38,020.88      324,550.76
97,006.11   1 709.371.43


Excess of Income over
Expend.                 335142.09
1930-1931 accounts Pay-
able liquidated during
Current Year           (16Y511.37)
Excess of Receipts over
Expenditures for General
Ledger AccoUnts         89,522.15
Student Loan Fund-
Notes                     (850. 20)
Excess of Receipts over
Expenditures for the fis-
cal year to date - Com-
bined Fund             105.302.67


(26,180.06)


6,962.03


(16,511.37)


(33rl67.9S)
   (4'?1.37)


(59.819.38)


56, 354. 20

(1.321.57)


45,483529


Excess of Receipts over
Expend. for the fiscal
year to date - Combined
Fund
Cash in Bank and on hand
  July 1, 1931 - Combined
  Fund
Cash in Bank and on hand
March 31, 1932 - Combined
  Fund


45,4-83.29


(37.360.18)


8,123.11


(8- 144. 56)


6.


         Abstract of item shown on Statement
         of Income and Expenditures as "Excess
         of Receipts over Expenditures for Gen-
         eral Ledger Accounts $56, 354.20."


                             Debit                Credit

Accounts Receivable                             32,524.19

Insurance Paid in Advance   3,682.27

Sundry Accounts                                 27,512.28

                             3,682..27          60,036.47
                                                 3,682.27

                                                 56,354.20


     2. Agreement -Tith Lexington City Schools for Training
School.  President McVey presented to the Board a communication
from Dr. H. H. Hill, City Superintendent of Schools of Lexington,
making a proposed modification in the arrangement for the instruc-
tion of Lexington City pupils who are assigned to the Training
School.   The matter was considered and referred to the President
and Executive Committee with power to act.

     3. Professional Services Rpndered hZ Dr2. W. W. Dimock. A.
communication was read from Dean Cooper indicating that at a
meeting of the Executive Committee last year arrangements were
made whewreby Dr. W. W. Dimock, Head of the Department of Vet-
erinary Science should receive compensation for certain types
of professional services rendered by him, the compensation to
be paid by persons receiving such service, it being distinctly
understood that such service shall not interfere with Doctor
Dimockts official duties at the TJniversity.  A motion was made,
seconded and carried that the privilege be contined for the year
1932.

     4. Pament to Combs Lumber Company.   A bill for $600.00
to Combs Lumber Company, for preparing a schedule of sound values
on all University buildings and the buildings of the Experiment
Station was read, and on motion duly seconded, ordered paid.


7.


     5. Dr. A. C. McFarlan Appointed Director of Mineral and
Topographical Survey. On recommendation of President McVey,
Dr. A. C. McFarlan, Head of the Geology Department at the Uni-
versity, was appointed Director of Mineral and Topographical
Survey, in accordance with the recent act of the General Assembly
creating such a department and placing it at the University.

     6. Purchase of Coal. A communication was read from Mr.
M. J. Crutcher, Superintendent of Buildings and Grounds, as fol-
lows:


          Tne total coal tonnage delivered to the University
     Experiment Station and Dormitories amounts to approxi-
     mately 4000 tons per annum.   Under our present arrange-
     ment we are paying two profits on this coal, first, the
     dealerts profit on the mine price, and second, the deal-
     erts charge for hauling.   These amounts are as shown:

          Dealer's profit on 4,000 tons @ .60    ;92400.00
            "t     hauling charges on 4,000 tons
                   @ .75                            3000. 00
          Total savings                            $5400. 00

    Now that we have our own siding I feel that we can
    contract directly with the mines and handle our own
    deliveries without any difficulty.   This scheme will
    also give us absolute control over every lump of coal
    from the time it leaves the car until it is thrown in-.
    to our bins.   I have never been quite satisfied with
    our present system of coal handling.   There are too
    many wide open opportunities for substitution, leaks
    and losses.

    In order to place this scheme in operation it would
    be necessary to purchase two two-ton second-hand or
    slightly used dump trucks.   I khow where two such
    trucks can be purchased for a sum between $1,000.00
    and $1400.00.   A statement of our cost for the first
    year would be approximately as follows:

         2 2-ton used dump trucks  ........    51400.00
         Hauling cost on 4000 tons @ .30 *       1215.00
                                                 $2615. 00
         Net saving for the year approximate-
             ly ...........................     $2785.00


8.


     The matter was discussed by members of the Board and
on motion duly made and seconded, referred to the Executive
Committee with power to act.

     7. Sale of Warrants. Mr. Peak reported sale of warrants
as follows:

          The following warrants have been told, three at
     ninety-four and one-half and the last named at ninety-
     two and one-half per cent and accrued interest:

     No. 3384 -   $ 283.33 - Nursery Inspection, Experiment Sta.
     No. 4014 -    1,399.49 - Western Ky. Sub-Experiment Station
     No. 5160 -    1,392.55 -    II    it   it    St         i
     No. 1076 -    1,234.67 - Robinson Sub-Experiment Station

     Will you have the Board approve these sales?


On motion, duly seconded, the sale was approved and ordered record-
ed.

     President McVey reported to the Board that the University
College Section has approximately $93,000 in State warrants and
an additional amount of Experiment Station warrants which have
been placed at the Security Trust Company, Lexington, Kentucky,
as collateral for a loan for the payment of operating expenses.
The matter was discussed and a motion was made, seconded, and
carried, authorizing the Business Agent of the University, with
the approval of the President of the University and Chairman of
the Executive Committee to sell warrants at the current market
price when it seems desirable to do so.

    8. Renewal of Loan at Security Trust Compgu*    President
McVey reported to the Board that it had been necessary at a
previous meeting of the Executive Committee to borrow from the
Security Trust Company $100,000 to meet necessary operating ex-
penses of the University.   He stated that the note will soon
fall due and that the Security Trust Company now holds as collat-
eral state warrants considerably in excess of the loan,   He
stated that it is necessary to have some authority from the Board
to renew the loan.   The matter was discussed and the Business
Agent of the University was authorized to renew the note for
the loan either in whole or in part.

    9a Granti1g of Degrees.  At the end of the first semester
on February 1, the University Senate recommended that degrees be
conferred on a number of persons finishing their courses at that
time.   Authority for conferring the degrees was passed on by
a special c ommittee of the Executive Conmmittee, consisting of
Judge Stoll and Mr. Park.   A motion was made, seconded, and
unanimously adopted that conferring degrees on the following
persons be approved,


COLLEGE OF ARTS AN D SCIEWOES

Candidates for the Degree of Bachelor of Arts


Margaret Louise Alexander
Mary Susan Armstrong
Nannie Louise Best
Malinda Owsley Bush
Richard Coleman Carr
Milton James Ca~vana
Ellen Langino Goode
Fred Morgan Gross
Sarah Lillian Jones
Robert Joseph Kee


Alvin McGary
Pearl Louise McIntyre
Kermit Allen Pack
Mabel Aleene Palmore
Rosena Catherine Rogers
Lizzie Mary Shipley
Thomas Lee Smith
Charles Thomas Stewart
Mary Frances Young


Candidates for the Degree of Bachelor of Science

    William Paul Haller
    Claude Lynn Nesbitt
    Travis Bun Pugh, Jr.


COLLEGE OF AGRICULTURE

Candidate for the Degree of Bachelor of Science in Agriculture

     Noble Everette Bailey

Candidates for the Degree of Bachelor of Science in. Home Economics

Martha Juanita Chapman
Julia Ann Dugan
Mary Hood Gillaspie
Eudenah Hamby
Sarah Jane Wheeler


COLLEGE OF LAW

Candidates for the Degree of Bachelor of Laws

Oliver Lander Bright
William I'iapier Dixon
Martin Richardson Glenn
Harry Ligon Green
Rufus Lisle


9.


10t


COLLEGE OF EDUCATION

Candidates for the Degree of Bachelor of Arts in Education

Vivian Mae Burke                    Katherine Robert Shivell
Lucille Genevieve Finneran          Sonis Dee Smith
Ada King Fishback                   Benjamin Stark
Frances Cunningham Herndon          Kathryn Elinor Watson
Adelia Williamson Jackson           Helen Dorothy Weber
Sallie Joe Bodkin Lawrence          Hadalyn Ruth White
Jane Lyle Rhorer                    George 'Vallace Whitlow


COLLEGE OF COMMERCE

Candidates for the Degree of Bachelor of Science in Commerce

Elden Edwin DuRand, Jr.
Vilbert Wesley Holtzclaw
Philip Michael Minor
Corinne Cassell Moore
Douglas Druin Iunn
Glenn Frederick Weinman


GRADUATE SCHOOL

Candidate for the Degree of Master of Arts

English - Sam Jackson Denney
Education   Albert Robinson Evans
Education - Thomas Neville Warwick Fincel
Education - Hallie Katterjohn Griffin
English - Cora Katherine Megibben
Education   Clarence Nickell
Political Science - Pemberton Johnson Ross, Jr.

Candidate for the Degree of Master of Science

Agricultural Economics - Thomson Ripley Bryant

Candidate for the Degree of Civil Engineer

Elgan Brooks Farris

Candidates for the Degree of Mechanical Engineer

Robert W. Spicer
Ernest Allen Welch.

Candidate for the Degree of Doctor of Philosophy

Education - Oscar Fitzgerald Galloway


11.


     10. Report of the President.   President MoVey made the
following report to the Board wh-ich was read and ordered recorded
in the minutes:

     At the April meeting of the Board of Trustees the budget
for the coming year is usually presented.    The annual budget
is worked out in detail for tVery division and department of the
University before consideration by the Board.    I am unable to
make such a presentation at this meeting.    The situation dif-
fers materially from that of any other year in the history of the
University.   Declining revenues and complicated legislation
pointing to some uncertainty as to whether there will be any in-
come at all, leave budget making a very difficult matter.    It
is with that background I present the situation to the Board of
Trustees, under three headings; (1) The Present; (2) N\Text Year;
and (3) The Dilemma.

                          I. THE PRESENT
     In the year 1930-1931, the University of Kentucky received
from the proceeds of theiinheritance tax and general property
tax on real estate and intangibles, the sum of $1,137,000.    An-
ticipating a decline in the amount that would be received this
year, the estimated income was reduced $203,000, leaving the
budgeted income from such sources at $930,000, as compared with
$1,137,000 which had been received from the state in the year
before.

     Up to date of this year, the receipts from the sane sources
have amounted to approximately $800,000.    There may be some ad-
ditional amounts that will come in before the close of the year.
The University finished the previous year with a deficit of
$107,000, due to the building program that had been carried on.
As a consequence of the decline in revenues, the University was
brought face to face with a situation at the first of March as
to whether it could actually pay salaries for the remainder of
the year.   At the meeting of the Executive Committee, held in
February, it was decided to cut salaries ten per cent.     Since
then, upon my own action, full payments were made oil a:l salaries
of less than $100 per month, and $100 on all salaries above that
sum.   Money was forthcoming to meet this salary list.

     The University has borrowed $100,000 from the Security
Trust Company and deposited state warrahts with it as collateral.
It will be necessary to make payments on the loan, and the pro-
ceeds which may co-me from the selling of warrants will meet most
of this loan.   But the Division of Colleges owns $93,000 of
these warrants  which with the discount now running on warrants
will leave $15,000 to be found elsewhere.    The rest of the war-
rants have beer, issued to meet federal funds and:..tautt be used
to offset those funds.   This miay leave the University in a
position where it may not be able to pay salaries for the


12.


remainder of the year on a fifty per cent basis.

     The amount required to carry on the University in the form
of light, water, telephone and labor bills amounts to $45,000.

     The situation, therefore, may be recorded as follows:

     Loan, Security Trust Company............. . $100, 000
     Monthly operation costs, three months.      45,000
     Salary balance on April first ............  35,000
     Balance Salarier-, l0,1o cut, three months..  225.000
                                                 p45,000


To offset this sum there is as follows:

     Warrants on deposits...                      93,,626.93
     Balance in bank................      .       17, 000.00
     Expectations of incom-ne f rom state --
     April, May, June ...................650 000.00
                                                 $160, 626w 93

     This sum is inadequate to meet salaries.    The Security
Trust Company loan and operation costs will take $145,000
leaving $15,000 for salaries.   Borrowing is the only way out,
if bcro~wing can be resorted to.


                        A CREDIT UNION

     The failure on the part of the University to pay salaries
due Ma.rch first, even in part, left members of the staff in a
difficult situation.   Some of them were reduced to no funds at
all.   I presented the situation at a meeting of the staff on
March 30.   The way in which this dis-spiriting news was re-
ceived was a matter of great comfort to .me personally.  There
was a fine spirit a' cooperation and understanding manifested
by all the members of the staff.   At that time I told them    -
that the University might not be able to pay salaries due
April first.   On April 2, the situation had changed somewhat
and I was able to tell the members of the staff that those re-
ceiving ?S100 or less per month, would be paid in full for March
and that all others would receive $100 of their salaries.   Recog-
nizing the necessity of rendering some assistance to members who
might be in need of it, a conference was called the evening of
March 30, and the conclusion was reached that some provision
should be made to organize an agency by which loans could be
made to members of the staff.   A second conference, with twenty
citizens outside the University added to the committee, was
called Friday evening, April 1.   A plan f or a credit union was
presented, and after discussion, adopted, and $10,000 raised
at the meetings   A committee of the Board of Commerce called a
meeting of citizens at the Phoenix Hotel, where the plan was
presented,   At this meeting the amount previously subscribed


13t


was increased to $25,000.  Since then an agree-ent has been
drawn up, forms and blanks provided, and a loan cormi-nittee
formed consisting of Messrs. Peak, Gillis and Melcher.  The
Board of Commerce has appointed J. E. McFarland and Fred Bryant
trustees of the fund.  The fund is expected to reach $40,000
or $5o,0oo.  A number of applications has been received by the
co0m.nittee.  This credit union will undoubtedly prove very help-
ful, though it necessitates the pledging of salaries now, due or
due in the future, as collateral for loans.


                      II. TE INEXT YEAR
     It is unnecessary to review the legislative situation in
detail, but certain phases of it ought to be pointed out, so that
the position of the University may be clearly understood.    In
the Budget Bill, known as ouse Bill No. 378, provision was made
for the purpose of operating the University during the biennium
by appropriating for-the general University fund $970,000.00
annually, for agricultural instruction "25, 500.00 annually. The
Summer Session had an appropriation of $10, 000.00; library stacks
gz~ono             r0%jdbextdae Experiment Station, $50,000.00.
F  qre    sa            ncgton and Quicksand there was appro-
priated $25,000 each, for the construction of an abattoir,
$14, 000; for the agricultural extension work, $19 531.00. This
bill passed both houses and reached the governor, because of the
failure of the legislature to provide adequate revenue, struck
out the amount appropriated for the general operation of the
University, cut out the Summer Session appropriation of $l0, 000;
reduced the amount for library stacks to $15,000; reduced the
amounts for the substations at Quicksand and Princeton to
$20,000 each; struck out the amount for the abattoir and reduced
the appropriation for agricultural extension to $120,000.  The
position taken by the Governor was that if the main item fox the
University was stricken out the University would return to its
previous support which was from the inheritance tax and 6.7f of
the tax on real estate and intangibles.    There was left in the
bill, however, under Section 112, a statement which says, "All
annual and or continuing appropriations not provided for in this
Act and all other laws and parts of laws in conflict herewith
axe hereby repealed." I shall leave this section for further
discussion.

     Item 46 (k-l) provides that "In addition to the various ap-
propriations made to the University of Kentucky out of the gen-
eral expenditure fund of the state, there are hereby appropriated
to the University all fees, rentals, and other operating receipts
of %erious units as now, or as may hereafter be provided by law.
All fees, rentals and receipts of all kinds of the University,
the Experiment Station or the Extension Division shall be paid
into the State Treasury and credited to the department or divi-
sion from which received and paid out only upon warrants of the
Auditor of Public Accounts as needed from month to month and
when proper vouchers have teen presented to and approved by the
Auditor."


14.


     The fiscal year of the State begins July 1 and taxes are
not paid in any amount until the following Jenuary anCd February.
The expenses of tihis -period have been met in the past by borrow-
ing from the beak in anticip.tion of future i.no!ome.  If the Uni-
versity goes back to th-e inherita,-nice tax and mill tax very
little in the form of receipts will be received by the State and
conseauently, the question Prises as to how expenditures will
be met between the first of July and the nay-rmient- of taxes.  Will
the auditor be authorized to set up an estimated sum for the--e
institutions and. issue to them the check of tT e State on vouchers
in anticipation of these incomes?  Or, if he issues warratts,
what pronortion of the warrmnts will the University receive when
sold on the market, or to what extent can banks accept these
warrants in return for actual cash?

     The section also provides that these expenditures shall be
presented to and approved by the auditor.   The auditor is thus
in a position to determine educational policies, matters of in-
come and other expenditures.   I think it may be said good sense
would indicate the wisdom of not doing this, but I bring this to
the attention of the Board of Trustees to show that the situation
is an extremely complicated one wad since the power of carrying
on the University has been placed in the Board of Trustees? it
should insist upon administering the University and determining
its policy9

     I am pointing out in an abbreviat~d form the possible income
of the University under the inheritance tax and real property
tax, and am also pointing out the reduced expenditures that may
be set up in the budget.   The inheritance tax is in a question-
able position.   Thus far the auditor under the direction of the
attorney general, has continued to pay the receipts from that
source, but if the tax is questioned in the courts and the prob-
lems of refunds raised it would be very difficult to determine
what the income of the University would be from this source.


                     III. TIM DILEMMA

     There is a definite dilemma in the situation in which the
University finds itself.   (1) If the amended Budget Bill is ac-
cepted and not questioned in the courts, what will the income
of the University be for this fiscal year? (2) Will the auditor,
treasurer and governor cooperate with the University in the full-
est degree in the payment of the inheritance tax receipts? (3)
If a case is brought into the courts on the question of refunds,
will these refinds be paid out of inheritance taxes or be made
a charge against the general fund of the State? (4) Is it likely
the auditor will pay to the educational institutions the receipts
arising from the inheritance tax, and the tax on real estate and
intangible property when there is a question as to the validity
of certain phases of the budget act? Is he not likely to raise
the question as to his power to pay out receipts to these insti-
tutions without jeopardizing his bondsmen?   He is likely, there-
fore, to ask whether he is authorized to make such a payment.


and it is quite likely we shall have to think of the University
and the teachers' colleges being without receipts of any kind,
as a resuit of the complications that have arisen.

     On the other hand, there is this phase of the matter,
namely; whether the amounts appropriated for the support of the
institutions under the Budget Bill can be sticken out and have
substituted therefor the inheritance taxes and the general prop-
erty taxes.   It will be recalled that Section 112 of the Budget
Bill provided for the repeal of all other appropriations and con-
tinuing appropriations.

     I am including in this discussion an analysis that has
been made of the/situation from the legal point of view.  This
analysis is not my own.   It was handed to -me as a memorandum and
I do not know who the author is, but it has such clearness of
statement upon the points involved that I am including it.

1     Section 88 - Ky. Cornstitution  Veto power.

                 "The Governor shall have power to disapprove
       any part or parts of alpr opriation bills embracing dfis-
       tinct Items, anld the part or parts disapproved shall not
       become laws unless reconsidered and passed, as in case of
       a bill. "
2.   Thg Governor of the Commonwealth vetoed Sec. 44-i.DoZ
     37  - (general appropriation bill) 1932 Ky. General As-
     sembly.

  Q. What is the status of appropriations for the Western Ken-
     tucky State Teachers College for the fiscal years ending
     June 30, 1933, and June 30, 1934?

  A. The Governor states that this institution will revert to
     the appropriation received for the fiscal year ending
     June 30, 1932, which is derived from the millage and in-
     heritance allotments.   He states that in his opinion the
     institution will receive that amount of money which millage
     and inheritance allotments will Field for each of the fiscal
     years next ensuing.   The Chairman of the Tax Commission
     expresses the same opinion.   The opinions of the Governor
     and the Tax CoQ.amissioner are based on an interpretation
     of Sec. 1992a-26 Carroll's IXy. Statutes which they have
     stated </pre>