xt7w6m332r3x https://exploreuk.uky.edu/dips/xt7w6m332r3x/data/mets.xml Lexington, Kentucky University of Kentucky 19350530 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, 1935-05-may30. text Minutes of the University of Kentucky Board of Trustees, 1935-05-may30. 1935 2011 true xt7w6m332r3x section xt7w6m332r3x

Minutes of the Regular Meeting of the Board of Trustees of
the University of Kentucky, May 30, 1935.

The Board of Trustees of the University of Kentucky met in
President McVey's office at the University May 30, 1935, at 10:30
a. mi. The members of the Board present were Governor Ruby Laf-
foon, chairman; Judge R. C. Stoll, James Park, John S. Cooper,
Louis Hillenmeyer, IMiller Holland, Dr. George Wilson, James Rash,
0. C. Whitfield, and W. C. Hanna. 1&,. Cooper, of Somerset, and
Mr. Whitfield, of' Madisonville, were appointed by Governor Laffoon
as members of the Board on the 17th clay of IMay, and this is the
first meeting of the Board that they have attended since their ap-
pointment.

1. Minutes Approved.

The Minutes of the regular meeting of the Board of Trustees
of April 2 continued and held April 16, 1935, were approved as
published.

2. President's Report.

The President made his regular quarterly report which was or-
dered to be recorded in the Minutes. The report is in words and
figures as follows:

At the last meeting of the Board of Trustees the budget for
the year 1935-1936 was presented and adopted as the basis of ex-
penditures for that year. It might be desirable to point out
that the expenditures for the year 1935-1936 are about the same
as they were this year. The University maintains four funds in
the operation of its financial matters: the General Fund, the Ex-
periment Station Fund, the Agricultural Extension Fund and the
Trust Funds, The General Fund is the largest of these and upon
it falls the heavy burden of maintenance of plant and the educa-
tional service carried by the University. The income for this
fund has been estimated at 81,204,174.50. The expenditures for
general purposes have been placed at $1,196,746.43. The ExDeri-
ment Station fund income has been estimated at $305,000.00 and
the budget calls for the expenditure of the entire sum. The Agri-
cultural Extension fund income is nlaced at $395,200, and the ex-
penditure at the same sum. The Trust Funds, which include income
from various sources, will amount to possibly $20,000.

In the analysis of the General Fund it appears that the Uni-
versity receives from the State 60%; from student fees, 23%; from
residence halls and dining rooms, 105%; from the federal government,
between 5% and 6%; and from miscellaneous sources about 1%. Ex-
penditures on the percentage basis are 615% for educational pur-
poses, 11% for maintenance of plant; dormitories and cafeterias,
11%; administration, 7%; libraries, 4%; University Extension, 3%;
insurance, and other miscellaneous items, 3%.

The budget presented to the Board of Trustees in April will
not be exceeded. In fact, when the final adjustment is made the
amount will be somewhat reduced.

The University of Kentucky has had a history of seventy years.
Without doubt, it will have a history running into the centuries.
Vhen this prospect is envisaged the responsibility of the Board of
Trustees can be seen in outline,at least, and possibly in some
detail. It is essential that in an institution that has a long
and honored history in prospect, as the University of Kentucky has,
that there should be planning and thinking for the future. The
plant of the University is partly old and partly new. Some of
the old buildings have been in existence more than fifty years and
will have to be replaced. Undoubtedly, new types of buildings
will be constructed based upon the progress that has been made in
architecture and in the knowledge of lighting and the use of ma-
terials.

A half century has gone by since the establishment of the Ex-
periment Station under the Federal act of 1885. The Station has
contributed for fifty years to the solving of the agricultural
problems of the people of Kentucky. It has done notable work,
and it is fitting that some recognition of that work should be made.
A committee is now preparing a program to celebrate the fiftieth
anniversary of its founding on September 25, 1935. I urge upon
the mermbers of the Board to keep this date in mind and to be pres-
ent, if possible.

A good deal of progress has been made from time to time in
instruction. We are now on the verge of rapid expansion in the
use of picture machines and the radio in teaching students. These
facilities can never be substituted for the personal contact with
the instructor, but they can be used to amplify and extend the ma-
terial brought to the student. The University of Kentucky has
very little equipment in these fields and,as the development of
the picture and radio machines goes on, the University will find it
necessary to secure such equipment, if it is to keep up with the
progrews made elsewhere.

In the look ahead you may be sure changes in curricula will
be miade and better methods of instruction will be found. New at-
titudes in learning are developing and more material must be avail-
able ih library and laboratory to secure the best results in these
more effective methods of teaching. More room will be required,
more extensive libraries, and additional materials of every kind
for classroom and laboratory purposes. It cannot be emphasized
too much that the standing of an institution in the field of edu-
cation depends upon the teacher. The University of Kentucky must
look more and more to the effective and able teacher and investi-
gator.

It may be desirable to report ft this point the recent meet-
ing of the Council on Higher Education. This organization was
cr'dated by the Legislature of 1934. Each State institution of
higher education is represented in the Council. The University
of Kentucky has five members, three of whom are members of the
Board. The other two are the Dean of the College of Education
and the President of the University. The members of this Board
who are on the Council are: Messrs. R. C. Stoll, Robert G. Gor-
don and Miller Holland. The next meeting of the Council will be
held in the office of the President of the University of Kentucky
on about July 15. At the meeting in Frankfort the Council creat-
ed two committees to study the problem of admission and of fees.
These committees will report at the next meeting of the Council.
In speaking of this Council it is important to point out that it
is expected to set up provisions by which duplication of courses
may be obviated and the field of institutions determined. It
also is called upon to present a budget for each institution to
the Budget Commission before the budget goes to the legislature.
The Council can be of great assistance to the cause of higher ed-
ucation if it takes its work seriously and brings to it a spirit
of good will, tolerance and a determination to work out an adequate
system of higher education.

At this meeting of the Board of Trustees a number of ratters
will be brought to the attention ofl the Board. These items are
of considerable importance and have to do with the re-arrangement
of some financial matters and the desirability of taking advantage
of the Federal Works Program, and with a statement relative to
Pasildon House, which has been before the Board of Trustees at
other meetings.

It has been suggested that the lease on the warehouse bo re-
financed on a different basis than the one at the present in ex-
istence, It is proposed by the Security Trust Company that it
pay the present indebtedness of $50,000, writing a new lease on a
ten-year basis, with the understanding that the University is to
make an annual payment of $5,000 plus 5% interest on the balance
which will remain. The cost of this arrangement would be the
same as the one now existing. The advantage would be that the
payment would extend over a period of ten years instead of five,
as at present. The saving each year in the reduction in the
budg et over the present payment would be in the neighborhood of
$7,000, but it would be pointed out that the payment of the
$7,000 would extend over ten years. In view of the necessity of
reducing expenditures as far as possible, it might be well for the
University to enter into this arrangement, if it can be dofte.

It will be recalled that the Y3oard of Trustees authorized
preparation of plans for a heating -lant. That has been done
and the preliminary plans are ready for your consideration. The

question is what arrangement can be made with the Federal govern-
ment to finance such an expenditure. I have no information or.
this subject. but I understand that the government will now make
a gift to the extent of 45% and loan the remainder at the rate of
3% per year. The problem, however, is making this arrangement
under existing state laws, which require the establishment of a
trusteeship. If this is done this plan which is based upon the
law passed by the State legislature,would run counter to the ar-
rangement referred to above in connection with the warehouse, and
it might be desirable also to ask that plans be prepared for a
Student Union building, and tile same submitted to the Federal Di-
rector for a loan. The advantage in having such a building would
be not only in housing student activities, but it would free the
top floor of YcVey HalI and make it possible to use that space for
the Art Department, which is badly hampered at the present time.

Whatever might be the attitude of the Board upon these mat-
ters, I think it would be well to present the request to the Fed-
eral Director so that we may get the details and requirements for
Federal assistance. I think I am within the facts when I say
that a grant of 45% with 3% yearly upon the balance could be fi-
nanced by the University from the savings in the operation of the
heating plant and in the income thatvould be derived from the Stu-
dent Union building.

I have also to report that the negotiations regarding the con-
struction of Basildon House taken up two years ago, have been re-
vived, and I have been asked to present to the Board of Trustees
the new proposal made by those interested in placing Basildon
House on the campus of the University. In this proposal it is
stated that the house can now be purchased for $100,000 and that
it can be moved and set up in this country and remodeled for about
$500,000 more. The building covers 809,000 cubic feet. The pro-
posal is that the University should apply to the federal government
for funds to finance the matter. On the basis of the loan re-
ferred to above, it would require a loan of 8275,000. Three per
cent on this and three per cent amortization charge would mean
that the University would be asked to pay about 813,500 a year in
addition to the cost of up-keep on the building. I bring this to
the attention of the Board with not much hope that anything can be
done with it, but in -view of their interest in the matter when it
came up two years ago.

A report upon-enrollment at any institution is one of the ma-
Jor ways of telling what it is doing. If it is properly done it
ought to give important information to the Board of Trustees, as
well as members of the staff. I am, therefore, giving some fig-
ures on enrollment for the year 1934-1935. The resident enroll-
ment, including the summer session, was 4,238, and for the summer
session, both terms, there were 1,434, excluding duplicates. To
the enrollment of 4,238 should be added the number of persons in
University Extension, 1,409, and 307 in the University High School,
making a total of 5,954. The considerabl number of students
touched by the University is shown, when Kttrings into considera-
tion the immense enrollment in the 4-H clubs scattered all over
the state, Their membership has now reached 25,000,

In the first semester of 1934-1935 there were 2,863 stu-
dents enrolled, in the second semester 2,709, and for the year
there were 3,214 separate persons registered. All the colleges,
with the exception of Engineering, had increases in their enroll-
ment this past year. In Engineering there was one more student
enrolled in 1934 than in 1935.

It is interesting, also, to note that every county in the
State was represented in the enrollment of the University. There
was a gain in 73 counties, a continuance of the same enrollment
in 16 counties and a loss in 31 counties. The largest increases
were in Jefferson, Fayette, Jessamine and Clark counties, The
gains in other counties were less than 20 students each. In
twenty".one counties in the State colleges are located. In three
counties, Warren, Knott and Whitley,there was a loss, but in the
18 other counties in which colleges are located, there was a gain.

It is interesting also to note the distribution of graduates
during the last five years. The University now has three com-
mencement occasions when degrees are awarded. These occur in
January, June and August. The total number of persons receiving
degrees in 1931 was 580, this number rose to 648 in 1932, fell to
609 in 1933, and fell still lower in 1934, when it dropped to
552, and rose again to 586 in 1935. The percentage of graduates
in each of the three commencements during the period 1931-35 is
as follows: 11.3 per cent in January, 61.2 per cent in June,
and 27.3 per cent in August.

In closing this report I wish to express my appreciation of
the confidence and good will of members of the Board during the
past year. It has been a difficult year -- not by any means as
serious as the one before, but, nevertheless, a difficult one.
I am glad to say the State has given the University every assist-
ance and met all the appropriations and allowances made by the
last legislature. The readjustment to the financial set-ups
occasioned by the establishment of the budget law has been made
without friction or any difficulty. The closing of the year
finds us with a small balance, all salaries and bills paid,and
indicates a rather happy situation in difficult times.

3. Financial Report.

The financial report for April was filed and ordered to be
recorded in the Minutes. It reads as follows:

EXHIBIT "B"

Statement of Income and Expenditures
Month of April 1935

Previously
Reported

General Fund Income
Federal Appropriation 42,750.00
Interest on Endow. Bonds 8,644,50
Interest orn Liberty Loan
Bonds 850,00
Vocational Education Bd. 16,180.26
State Appro.-Back Salaries 7,100,00
State Appro, - Repairs
to Buildings 3,613.24
State Appro, Summer Sch. 9,000.00
Special Agri. Appro. 18,999.55
State Appro.. - General 502,459.25
Student Fees 200,457.61
Student Fees - Sum.Sch. 40,636.99
Student Fees - UnH.S. 9,335.00
Student Fees - El.Tr.Sch. 7,344.00
Student Fees - Un. Exten. 19,724.65
Miscellaneous Receipts 8,916.64
Rentals 2,348.40
Men's Dormitories 14,904.65
Total 977,264.74

Expenditures
Instruction 573,005.49
Administration, Expense
and Maintenance 203,776.66
Additions and Betterments 11,072.78
Total 787,854.93

Excess of Income over
Expenditures

Current
Month

Fiscal
Year
To Date

42,750.00
8,644.50

850.00
223.00 16,403.26
71,100.00

3,556.62

4,374.58
64,243.00
3,395.57

420.00
10.00
1,039.50
77.57
391.30
529.80

7,169.86
9,000.00
23,374.13
566,702.25
203,853,18
40,636.99
9,755.00
7,354.00
20,764.15
8,994.21
2,739.70
-15434.45

78,260.94 )4055,525.68

68,352.25 641,357.74

18,591,40 222,368.06
1,57.59 12,230.37
88,101.24 875,956.17

-4.(9,840.30) 179,569.51

189,409 .81

Patterson Hall Income
Board
Miscellaneous Receipts
Room Rent - Summer School
Total

Expenditures
Expense
Additions and Betterments
Total

Excess of Income over Ex-
penditures

General Fund Income
General Fund Expenditures
Excess of General Fund
Income over ExpenditureE
Accounts Payable - liqui-
dated
Excess of Expenditures ovE
Receipts for General Led
accounts

Excess of Receipts over Ex-
penditures for the fiscal
year to date - General
Fund

34,918.73
179,10
1,326.00

8,553.65 43,472;38
7.00 186,10
1. 326.00

36,423.83 8,560.65 44,984.48

27,861.89 6,779.91 34,641.80
25.50 25.50
27,887.39 6,779.91 34,667.30

8,536.44 1,780.74 10,317.18

1,013,688.57 86,821,59 4100,510.16
815,742.32 94,881.15 910,623.47

197,946.25 (8,059.56) 189,886.69

(71,100.00) (71,100.00)

Lger
(81,568.46) 2,266.38 (79,302.08

45,277.79

(5.793.18)

Excess of Receipts over Expendi-
tures for the fiscal year to
date - General Fund
Cash in Bank July 1, 1934 -
General Fund
Cash in Bank April 30, 1935 -
General Fund

Experiment Station Income
Hatch - Federal Appro.
Milk and Butter - Cash Rec.
Beef Cattle Sales
Dairy Cattle Sales
Sheep Sales
Swine Sales
Poultry Sales

11,250,00
8,250.29
655.60
463.22
310. 51
467.95
1,199.37

39.484.61

39,484,61

-(429.65)

35,194.66

3,750.00 15,000.00
1,009.16 9,259.45
655.60
25.00 488.22
310,51
27.08 495.03
144.93 1,344.30

Farm Produce Sales
Horticultural Sales
Seed Test
Seed Inspection
Rentals
Miscellaneous
Fertilizer - Fees
Public Service - State
Appro.
Public Service - M1isc.

2,254.69
383.20
1,415.37
15, 129.76
5,301.03
981.56
21,808.71

15,460.44

Receipts 40.00
Feeding Stuffs - Fees 23,238.00
Adams Federal Appro. 11,250.00
Serum - Sales 732.49
Serum - Virus Sales 76.45
Serum - Supply Sales 113.05
Serum - Misc. Receipts 31.40
State Appropriation 37,499.81
Creamery License Fees 6,371.55
Creamery - Testers Lic. 2,177.02
Creamery - Glassware Test. 532.32
Robinson - State Appro. 8,653.75
Robinson - Misc. Receipts 5,793.93
West Kentucky - State
Appropriation 11,038.88
West Kentucky - Misc.Rec. 5,177.49
Purnell - Federal Appro. 45,000.00
Nursery Inspection - State
Appropriation 1,277.42
Nursery Inspection - Fees 1,610.00
Blood Test 20.75
Total 245,966.01

Expenditures
Expense
Additions and Better-
ments
Total

26.10

132 75
2,444.67
144.67
10.35
5,244.25

2,229.67

2,817.98
3,750.00
211.13
20.40
20.05
1.00
4,263.74
100.00
102.00
54.86
1,850.83
222.08

1,319.67
347.44
15,000.00

481.35
165.00

2,280.79
383.20
1,548.12
17,574.43
5,445.70
991.91
27,052.96

17,690.11

40.00
26,055.98
15,000.00
943.62
96.85
133.10
32.40
41,763.55
6,471.55
2,279.02
587.18
10,504.58
6,016.01

12,358.55
5,524.93
60,000.00

1,758.77
1,775.00
20.75

212,130.98 27,579.93 239,710.91

6,869.01 1,078.01 7 947.02
218,999.99 28,657.94 247,657.93

Excess of Income over Ex-
penditures 26,966.02
Excess of Expenditures over
Receipts for General Ledcg-

er accounts

Excess of Receints over
Expenditures

17,258.22 44,224.24

(13,286.52) (10,971.31) (24,257.33)

_13__679.50 6,286.91 19,966.41

45,916.16 291,882.17------

Excess of Receipts over Ex-
pendi-tures for the fiscal
year to date - Experiment
Station
Cash in Bank July 1, 1934 -
Experiment Station
Cash in Bank April 30, 1935
- Experiment Station

Extension Divasion Income
Federal Smith-Lever
Federal Add. Co-op.
Federal Supplementary
Federal Capper.-Ketcham
State Smith-Lever
County and Other
Total

Expenditures
Expense

Excess of Income over Ex-
penditures

148,308.77
31,000.00
53,091.04
36,800.97
94,500.00
5_186.75

12,822.70
985.87

148,308.77
31,000.00
53,091.04
36,800.97
107,322.70
6,172.62

368,887.53 13,808.57 382,696.10

292,083.20 36,781.63 328,864.83

76a804.33 (22,973.06) 53,831.27

Excess of Income over Ex-
penditures for the fiscal
year to date - Extension
Division
Cash in Bank July 1, 1934 -
Extension Division
Cash in Bank April 30, 1935 -
Extension Division

Trust Fund Income
Student Loan Fund
Student Notes Paid
Total Receipts

Expenditures
Expense
Student Notes
Total Receipts -

Excess of Expenditures over
Receipts
Excess of Expenditures over
Receipts for the Fiscal year
to date - Trust Fund
Cash in Bank July 1, 1934 -
Trust Fund
Cash in Bank April 30, 1935 -
Trust Fund

53,831.27

(585.04)

53,246.23

1,715.16
3.307.93

203.73
442.98

1,918.89
3.750.91

5,023.09 646.71 5,669.80

7,251.47 10.70 7,262.17
15.00 15.00
7,2-66.47 10.70 7,277.17

(2,243.38) 636.01 (1.607.37)

(1,607.37)

3.823.72

2,216.35

19,966.41

13.586.85

33,553.26

10.

Summary
General Fund Income
Experiment Station
Income
Extension Division In-
come
Trust Fund Income
Total

General Fund Expendi-
tures
Experiment Station Ex-
penditures
Extension Division Ex-
penditures
Trust Fund Expenditures
Total

1,013,688.57

245,966.01

368,887.53
1,715.16
1,530,257.27

815,742.32

218,999.99

292,083.20
7,251.47
1.334.076.98

86,821.59

45,916.16

13,808. 57
203.73
146,750.05

94,881.15

28,657.94

36,781.63
10.70
160,331.42

1,100,510.16

291,882.17

382,696.10
1,918.89
1.777,007.32

910,623.47

247,657.93

328,864.83
7,262.17
1,494,408.40

Excess of Income over Ex-
penditures 296,180.29

(13,581.37)

282,598.92

Accounts Payable - liqui-
dated (71,100.00)

Excess of Expenditures
over Receipts for Gen-
eral Ledger accounts

(94,854.98)

(8,704.93)

(71,100.00)

(103,559.91)

Student Loan Fund - Notes 3,292.93

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund 133.518.24

442.98

(21.843.32)

3.735.91

111,674.92

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined Fund
Cash in Bank and on hand July 1,
1934 - Combined Fund
Cash in Bank and on hand April
30, 1935 - Combined Fund

111,674.92

14.535.&5

126,210.50

- - -

11.

Abstract of item shown on statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $103,559.91"

Debit Credit

Accounts Receivable 108,777.11

Insurance Paid in Ad-
vance 1,229.46

Sundry Accounts 6,446.66

110,006.57
6,44.66

103,559.91

4. Statement of Income and Expenditures.

The Business Agent stated that it now appears that there will
be income sufficient in the General Fund to meet expenditures au-
thorized by the Board of Trustees by budget and special additions
to budget.

5. Paper Used in Printing Charged to University Account by
State Finance Board.

The Business Agent presented the following memorandum which
was ordered recorded in the Minutes:

The Auditor of Public Accounts on ADril 22d, sent in-
formation to the Business Dffibothat that office has
charged to the University appropriation 8321.92 for pa-
per used by the State Journal office and to the Experi-
ment Station appropriation $111.01 for paper used by the
Experiment Station,
The Busi-
ness Agent received another communication from the Sup-
erintendent of Printing dated May 27, 1935 in which he
states that he has ready for charge against the College

12.

appropriation the sum of $60,91; against the Experiment
5tation appropriation the sum of 822.53; and a further
sum of V716.04 for tags used by the fertilizer and feed
departments of the Experiment Station.

This statement is made in order that the attention of
the Board of Trustees may be called to what is being
done in regard to our printing orders, The reason ad-
vanced by the State Board of Finance for the charges
above referred to is that the allowance for paper has
been exhausted and that until July first it will be
necessary to charge the various departments with all
paper used,

6. Investment of Brent Fund.

The Business Agent reported that in paragraph six of the
Minutes of the Executive Committee of October 23, 1934, he report-
ed the payment of City of Madisonville bond of $500.00 which was
an investment in part of the Brent Fund, A remaining bond of
$500.00 matures August 15, 1935. The Business Agent further re-
ported that he has held the funds so received for investment but,
on account of not being able to find suitable investment, he was
unable to invest the funds until ADril 23, 1935, at which time,
with the advice of President McVey, he purchased the following
bond through the Security Trust Cor.pany:

Description Price Total

Lexington Water Co. 5-%.Due Aug. 1,
1940 102i 512.50
Int, from Feb. 1 to Apr. 23 6.27
518.77

The payment of this amount required that $18,77 be taken
from the income of the Brent Fund, After the deduction of that
amount, this leaves a balance in the income of that fund in the
amount of $92,84,

On motion and second, duly passed, the investment was ap-
proved,

7, Investment of Student Loan Fund,

The Business Agent reported that on May 2, 1935, he invested
82,077800 of the Student Loan Fund as follows;

Lexington Water Company 5-- due Feb,
1, 1940, price 1021- Total -$2050.00
Interest from Feb. 1 to Mlay 2 --- 27.30
$2077.80

13.

On motion and second, duly passed, the investment was ap-
proved.

8. Damage by Blasting.

The Business Agent reported that, following the direction
of an order made at the meeting of April 16, 1935, of the Board
of Trustees, he wrote to I.t J. A. Bracewell, Branch Manager of
the American 1Matual Liability Insurance Company, Louisville, Ken-
tucky, in regard to release of damage caused the Gymnasium build-
ing by blasting by the Northern States Construction Company No-
vember 29, 1934, and question of acceptance of check for $12.60
to cover that damage. On April 20th he received answer, as fol-
lows:

"Gentlemen:

"This will acknowledge receipt of your letter of April
17th.

"As was stated in our letter to you of April 8th, this
matter was taken up with our Home Office. We are at
this time in receipt of their reply.

"We regret to inform you that if you cannot give us an
unconditional release at this time we would prefer that
you return the draft to us until some future date.

Very truly yours,

American Mutual Liability Insurance Company

(Signed) J. S. Bracewell
Branch Manager".

Accordingly conference was had with Mr. Crutcher and Presi-
dent McVey6 Mr. Crutcher stated that he was unable to say that
the damage stated in the release would be the entire damage to
the building and, at that conference, it was decided that check
be returned as requested in above letter. The check was returned
April 26, 1935, and matter of settlement for the damage is till
open.

The action of the President, Superintendent of Buildings and
Grounds and the Business Agent stated above was approved.

14.

9. Student Deposit.

The Business Agent made the following statement:

The question of uniform deposit by all regular and full-time
students of the Univers.ity has been recently discussed with Pres-
ident McVey, and it is deemed desirable that the Board be asked
to fix such deposit at $6.00. So many small deposits are re-
quired of students that it is deemed wise to collect a uniform
deposit at the time of registration. Practically every student
has to make some deposit or other, such as military uniform,
$10.00; room, $5.00; laboratory, 82.50; key, $0.50, etc., and it
is deemed by President McVey and those consulting with him that
it will be necessary to make the deposit $6.00 in order to cover
fully all charges that may be assessed against the student*

President McVey having further advised the Board as to the
question involved, on motion and second, it was ordered that a
deposit of $6.00 be required of all regular students in the Uni-
versity of Kentucky, to be paid on or before the time of enroll-
ment of the student. This rule is to apply to such other stu-
dents as may be deemed advisable by the President and administra-
tive officers associated with him. This deposit is to be refund-
ed at such time as the student may have completed work in the
University for the year in which the deposit is made, when it ap-
pears from reports filed in the Business Office that the student
is clear of indebtedness in the University.

10. Construction of Sheep Barn.

The Business Agent reported as follows:

The Executive Committee, having approved at the March meet-
ing, the construction of a sheep barn on the Experiment Station
farm, request for bids was made and contract was awarded to McCor-
mick Lumber Company of Lexington, Kentucky, in the sum of $6,444.80.
The award of contract was approved by the State Board of Finanee
and the McCormick Lumber Company is now ready to begin work on
the barn. The question of bond having arisen, Mr. Leslie McCor-
mick asked whether or not the bond of the company signed by him-
self and Mr. Sam McCormick as surety for the company would be suf-
ficient to satisfy the University. The purpose of making person-
al bond instead of a surety bond is in order that the expense of
bond premium may be saved. If the personal bond is accepted, it
will reduce the cost in the amount of $87.00.

Contract was authorized to be made with McCormick Lumber Com-
pany and forwarded to Governor Laffoon to be signed by him. The
Board being satisfied as to the financial reliability of Messrs.
Leslie and Sam McCormick, the Business Agent was directed to ac-
cept them as guarantors on the bond of the McCormick Lumber Com-
pany for the fulfillment of the contract in lieu of surety bond.

15.

11. Rearrangement of Warehouse Lease.

President McVey reported that, in the agreement to purchase
the warehouse property on South Limeatone Street from the Central
Warehousing Corporation, a lease was made by that corporation to
the University on which certain payments are to be made at the
beginning of each fiscal year. It now appears there is a balance
of $50,000 and interest due thereon from July 1, 1934, and that
this balance of indebtedness may be refinanced at 5% per annum in-
terest, which is a lower rate thnm that now paid, and that there
may be in connection with such refinancing a saving both in insur-
ance premiums and taxes.

In addition to this saving, the lease may be extended over
a period of ten years, reducing the amount of payment by the Uni-
versity approximately by half at the beginning of each fiscal year.
This is expected to be a benefit to the University in that it will
lessen the burden by distributing