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     Minutos of the Mleeting of the Executive Committee of the Board
of Trustees of the University of Kentucky, January 6, 1950.


     The Executive Committee of the University of Kentucky met in the
President's Office at 10:35 a.m., Friday, January 6, 1950.   The fol-
lowing members were present: Guy A. Huguelet, Chairman; J. O. Ever-
ett and H. D. Palmore.  Absent: Harper Gatton and R. P. Hobson.
President H. L. Donovan and Secretary Frank D. Peterson met with the
Committee.



     A. Minutes Approved.

     The minutes of the Executive Committee of November 19, 1949,
were approved as published.


     B. Comptrollerts Report.

     The Comptroller submitted financial report for the period July
1 to December 31, 1949, inclusive.   The report included the balance
sheet and supporting statements of fund and budget operations.   The
statements were examined, and upon motion duly made, seconded and
carried, were received and ordered filed.


     C. Purchases Approved.

     President Donovan submitted the following letter from the Comp-
troller} detailing State requisitions, advices of emergency purchases,
special purchase orders, food contracts and departmental purchase
orders,   He read the letter.

                                         January 5, 1950

    Dr. X. L. Donovan, President
    University of Kentucky

    M1y dear President Donovan:

          I submit a list of state requisitions, advices of emer-
    gency purchases, special purchase orders, food contracts
    and departmental purchase orders which have been made by
    the purchasing division from November 1, 1949, through
    December 31st.    These purchases have not been approved
    by the Board of Trustees.    The listing below gives
    the numbers of the documents requesting the purchase or
    actually issued as purchase orders, which documents are
    made a part of this record and are held in the Office of the
    Comptroller subject to inspection.    The purchases have




 




2



        been made on properly drawn documents at the request
        of the various departments and have been charged
        against available funds.   The list follovrs:

           State requisitions numbers..........  537 through 666
           Emergency purchase orders numbered.  201 through 315
           Library departmental orders ....... 2372 through 2489
           University departmental orders .e.. 1176 through 1262
           Special purchase orders .    .......... 4162 through 6427

             The foregoing record of purchases is respectfully
        submitted with the request that they be approved by the
        Executive Committee of the Board of Trustees, thereby
        ratifying the action of the Comptroller in making such
        purchases.

                                    Respectfully submitted

                                    (Signed) Frank D. Peterson,
                                            Comptrc ller.


     President Donovan recommended that the purchases as outlined be
ratified and approved.

     Upon motion duly made, seconded and carried,

     StatGe requisitions numbered... 537 through 666
     Emergency purchase orders numbered. 201 through 315
     Library departmental orders numbered.2372 through 2489
     University departmental orders ....  1176 through 1262, and
     Special purchase orders ............ 4162 through 6427,

were approved, and the action of the Comptroller in making the pur-
chases ratified.



     C. Sale of Surplus Eguipment Approved.

     President Donovan stated that he had received a communication
from the Comptroller recommending the sale of some property which the
University does not need.   He read the following letter:




 








January 4, 1950



          Dr. H. L. Donovan, President
          University of Kentucky

          M-y clear President Donovan:

               The Department of Geology has a 1939 half-ton
          Dodge canopy truck wrhich is of no further use to the
          Department.   The truck is in such a condition that
          it will be of great expense to the University If kept
          any longer.   I would like to request authority to
          sell this truck and apply the proceeds to partially
          pay for the new Jeep station wagon recently acquired
          by the Department of Geology.

               There are also two pianos that are beyond further
          use or benefit to the University.   One of these pianos
          is in the Department of l;iusic and the other in the De-
          partment of Physical Education.   Piano specialists
          from the Music Department and from down town have in-
          spected these pianos and have informed me that they
          are worn and damaged to such an extent that they could
          no longer be used.   I would like to have authority
          to sell these two pianos.

              Miss MIackie Rasdall, Director of the Student Union,
         has requested that we sell the Student Union Beauty Par-
         lor furnishings and equipment that is now stored in
         Johnson School,  \Ve can see no further use for this
         equipment.   I would like to have authority to sell
         t his equipment.

                                           Sincerely yours,

                                        (Signed) Frank D, Peterson
                                                 Comptroller.

     Upon motion duly made, seconded and carried, the Comptroller
was authorized to dispose of one 1939 half-ton Dodge canopy truck,
two pianos, and Student Union beauty parlor furnishings and equip-
ment, determined to be surplus to its needs.




 








     D. Approval of Contract with the Cincinnati, 1 ew Orleans and
Texas Pacif iC RLailgay Company.

     President Donovan presented contract between the Cincinnati,
New Orleans and Texas Pacific Railway Company (Southern Railway Com-
pany) and the University of Kentucky for right-of-way over pit near
the Central Heating Plant.   He stated that this is the same con-
tract that the Committee approved at its meeting on October 15, 1949.
The contract was executed and forwarded to the railway compalny as ap-
proved.   The attorneys, however, declined to accept the contract on
behalf of the rail-vway company, stating that a provision they had sug-
gested was not in the contract as approved.   It. Frank M11urray, of
the College of Law, advised that the clause desired by the railway
company did not do any harm to the University and appeared tlo be
more favorable in the contract, and he recommended that the contract
be corrected and re-submitted.

     The change in the contract would add the following:

          Page 2, Item 5. 11. . . provided that this clause
     shall have no application to such loss, injury or damage
     caused by or resulting from the sole negligence of the
     railway company, its servants, agents, or employees."

     M.1embers of the Committee discussed the contract and proposed
change, and upon motion duly made, seconded and carried, the contract
was authorized executed, with the change on page 2, item 5.



     E. Report on Patterson Will.

     President Donovan submitted the report of the Security Trust
Company concerning the Patterson estate which w-as left in trust on
behalf of the University.

     The members of the Committee discussed the advisability of se-
curing legal counsel to advise on the rights of the University, and
after some discussion, the matter was referred to the full Board for
further consideration.



     F. Reorganization of the Aeronautical Research Laboratory.

     President Donovan stated that operation of the Aeronautical Re-
search Laboratory since its erection had been self-sustaininng, and
that during the '.t.ar period, the Laboratory had aided materially,
through research projects, in carrying on America's war effort.




 







     He said that it now seems advisable to reorganize the Laborato-
ry and bring it into the College of Engineering, serving t'he follow-
ing purposes:

     1, Teaching--instruction for undergraduate students.

     2. Research--of a nature to fit into the instruction -program.

     3. Graduate training in the field--aircraft power plant design
        and operation.

     The President stated tha.t it was possible, under the new organ-
ization to have more research problems offered, and that the Labora-
tory would be in a position to choose the ones most suited to the
purposes for which it now exists.   He submitted a detailed plan of
reorganization submitted by A, J. Meyer, Director, and Dean D. V.
Terrell.   The reorganization reduces the staff of the personnel to
six people and outlines courses that will be taught in the Labora-
tory as a part of the general curricula of the College of Engineer-
ing.

     President Donovan recommended that an annual budget for the
Laboratory be provided, that a distribution of income to the Labora-
tory be made as recommended in the plan of reorganization, and that
an appropriation of $13,250 for the period January 1 to July 1, 1950,
be made out of unappropriated surplus.   The entire plan of reorgan-
ization of the Laboratory was read to the Committee, and upon motion
duly made, seconded and carried, was approved, the appropriation
authorized, and the reorganization plan filed with the Secretary.



     G. Applied Music Fees.

     President Donovan stated that the College of Arts and Sclences
has reconmmended the following policy for late registrants and writh-
drawals in Applied i.usic.


     T.rithdrawals prior to deadline: Full applied fee less
     .,cl.40 for each lesson given or each week since school
     b e gan.

     Late registrants (after legal day for regular students):
     Full applied fee less W`1.40 for each week since regis-
     t rat ion,

     Students who register within the regular "late period"
     are to be charged the full fee.

     The non-University fee for applied music is not to be
     refunded at any time.




 




6



       PHe stated that this policy had the approval of Dean 'Whitc and
 Doctor Stein, head of the Departmonz of iMiusic, and recommended that
 same be approved.

      Upon motion duly made, seconded and carried, the policy for
 late registrants and withdrawals in Applied Music was approved.



      H. Appropriation for Founders Week.

      P iesident Donovan stated that he had requested the committee
 working on Founders iWeek to plan a program, and that the committee
 had requested an appropriation of $2,500 to defray expenses of the
 various programs.   He stated that he had gone over the plans and
 desired to recommend an appropriation of Q2,500 from the urva.ppro-
 priated surplus of the University budget.

      utton notion duly made, seconded and carried,the recomrmendation
 of the President was concurred in.



      I. Fee for Organ Practice and Charge for Instruction.

      President Donovan stated that Dean White requests that the
practice fee for organ students be reduced to 36.00 per semester,
because the cost of operating the organs in the Fine Arts Building
will be less than the charges involved in M.emorial Hall, where we
were compelled to hold all organ practice heretofore, and because it
is desired to build up this phase of the music work, it seems desira-
ble to hold the fee to a minimum necessary to meet expenses inci-
dental thereto.

     He also suggested that some provision should be made for the
ratefor summer school as against the rate for the regular semester
work. After some discussion and upon the recommendation of Presi-
dent Donovan, motion was made, seconded and carried that (1) the
practice fee for the use of an organ shall be $6.00 per semester,
effective at the beginning of the second semester of the current
school year; and (2) the charge for instruction in all applied music
during the summer term shall be such as to provide for the same rate
as is in effect for the regular school year.    This charge will pro-
vide for eight hours of instruction for the term, for a fee of
:25.O.




 




7



     J. Transfer of Bound Volumes of Newspapers Approved hr Court
of Appeals.

     President Donovan submitted for the record an order of the Ken-
tucky Court of Appeals, fall term, December, 1949, and suggested
that same be placed in the minutes.   He read the following order:


          tThe University of Kentucky having requested the
     Trustees of the Legislative and Law Library for per-
     mission to remove the bound volumes of Newspapers now
     contained in the Library at the State Capitol; and
     upon being advised that the said University of Kentuckxy
     proposes and agrees to preserve same in the Library
     of the University of Kentucky, microfilm same and furnish
     the Legislative and Law library a copy thereof without
     charge; when arid as such are available,

          "IT IS HEREBY ORDERED that the University of Ken-
     tucky be authorized to obtain all of said Newspapers,
     except those for the past twenty years.

                                 (Signed) Porter Sims
                                      Chief Justice

                                 (Sizzed) A. E. Funk
                                     Attorney General

                                  Trustees of the Legislative
                                       and Law Library.

     COPY ATTEST:

           (Signed) Charles K. O'Connell
           CLERMK OF COURT OF APPEALS.


     Upon motion duly made, seconded and carried, the above order
was autlihorized made a part of the minutes.



     K, Gifts.
                        From Mr. Louis 7are, Chicago, check for
                                  $l,000.00.

     President Donovan reported receipt of a check for 1,000 from
Mr. Louis ;',are, president of International Minerals and Chemical
Corporation, in Chicago, "for whatever use you may decide."




 




a



     The President stated that he is always happy to receive proof
that the University retains the love and esteem of its alumni, and,
after much thought, had decided to recommend to the Executive Com-
mittee that the Department of Music be allowed to invest the gift
in a reproducing machine and some very fine records) for the use of
students in that department.   In this wiay, he continued, many stu-
dents would be able to hear the world.'agreat music who, otherwise,
might nevsr have this opportunity, and M4r. 'Ware would have the
pleasure of knowing that the benefits from his gift w.ould go on and
on.

     After some discussion, and on motion duly made, seconded and
carried, the Committee concurred in the recommendation of the presi-
dent, and ordered that the gift of $1,000 by  ir. Louis H7are be used
to purchase a reproducing machine and records, and requested Presi-
dent Donovan to thank the donor in their behalf.


                             From The Algernon Sydney Sullivan Founda-
                                  tion, gi2,500.

     President Donovan reported receipt of check for $2,500, payable
to the University of Kentucky, as a gift from The Algernon Sycdnrey
Sullivan Foundation, to be used for scholarships for the scholastic
year ending June, 1950, and stated that this fund would be acdainis-
tered in accordance with the terms of the Deed of Trust dated Novem-
ber 5, 1937, established by the above Foundation.

     The President stated further that this grant would be a bless-
ing to many boys and girls in Kentucky who, otherwise, might be u~n-
able to obtain an education, and recommended that it be accepted.

     Upon motion duly made, seconded and carried, the recommendation
of the President was concurred in, and he was requested to write a
letter of appreciation to The Algernon Sydney Sullivan Foundation.



     L, Sale of University of Kentucky Journalism Building Revenue
Bonds.

     The Secretary presented an affidavit from the Advertising Clerk
of The Bond Buyer, a daily and weekly newspaper, printed and publish-
ed at 3T7 earl Street, City of NEW York, County of New Yor]k and State
of New York, to the effect that, pursuant to authorization of the
Board of Trustees of the University of Kentucky, Q225,000.00, Uni-
versity of Kentucky Journalism Building Revenue Bonds would be sold
upon receipt of competitive bids filed with the Secretary of the
Board.



The Secretary reported receipt of the following bids:




 




0



From Bear, Sterns and Company, 1 ,,a11 Street, New York 5,N.Y.

   Bonds numbered 1-88, consecutively, maturing 1951-58, in-
           clusive, at 2.
   Bonds numbered 89-225, consecutively, maturing 1959-70,
           inclusive, at 2-3/4S.
   The sum of $225,000 plus accrued interest.
   The average net interest cost of this bid is 2.7087.


From Walter, Woody & Helmerdinger, 403 Dixie Terminal, Cincin-
           nati 2, Ohio.
   Bonds numbered 1-189, consecutively, maturing 1951-1967,
           inclusive, at 3j-.
   Bond.s numbered 190-225,. consecutively, maturing 1968-1970,
           inclusive, at 3%.
   The sum of Wp227,260.00 plus accrued interest.
   The net interest cost is 3.0953.


From Bankers Bond Company
     Almetedt Brothers
     O'Neil, Alden & Company
     Russell, Long & Burkholder
     Security and Bond Company
     Stein Bros. and Boyce
     J. D. Van Hooser & Company,
           all of Louisville and Lexington.

     Bonds numbered 1-77, consecutively, maturing 1951-1957,
           inclusive, at 22/.
     Bonds numbered 78-165, consecutively, maturing 1958-65,
           inclusive, at 2-3/4,f0.
     Bonds numbered 166-225, consecutively, maturing 1936-70,
           inclusive, at 3%.
     7Illl pay Q227 ,499.75, plus accrued interest.
     This is an average interest cost of 2.72.


From Doll & Isphording, Inc., 3C14 Provideent Bank Building, Cin.1
           cinnati 2, Ohio.

     Bonds numbered 1-33, consecutively, maturing 1951-53, in-
           clusive, at 217$.
     Bonds numbered 34-225, consecutively, maturing 1954-1970,
           inclusive, at 2-3/4.,
     ;Jill pay the sum of 'j227,250.00 plus accrued interest.
     Average interest cost of 2.649.




 








     A certified check in the amount of $5,000 was attached to each
of the above bids in compliance with the terms and conditions of the
bond sale.

     The bids were considered, and after some discussion, upon motion
duly made by tIember H. D. Polmore, seconded by Mlember J. C. Everett
and carried unanimously, the following Resolution was presented and
unanimously adopted:


          17T..HEAS, the Board of Trustees of the University of
     Kentucky, at a regular meeting held on December 13, 1949,
     adopted a Resolution authorizing the issuance of Two Hun-
     dred Twenty-five Thousand Dollars (225,000.00) principal
     amount of "University of Kentucky Journalism Building Rev-
     enue Bonds," dated January 1, 1950, and directed that the
     Executive Committee of said Board advertise the sale there-
     of and authorized said Executive Committee to receive com-
     petitive bids for said bonds, to accept the best bid
     received and to establish the interest rate or rates to be
     borne by said bonds in conformity with the accepted bid;
     and

          71HEREAS, advertisement of said sale has been duly
    published in THE BOND BUYER as directed by the Board of
    Trustees, and by means thereof public notice was given that
    sealed comDetitive bids would be received in the office of
    the Comptroller of the University until January 6, 1950,
    at 11:00 am., and said date and hour have now arrived.,
    and the Chairman of the Executive Committee has declared
    the bidding to be closed, and the Comptroller of the Uni-
    versity has produced, opened and read all of the competi-
    tive bids received in his office prior to such date and
    hour, and the same are listed as follows:

    Ncame of Bidder        Price Offered         Interest Rate or
    _-             -............. ..         .-__ _      lRatesStipulated

    BearSterns & Co.,  $225,000 plus ac-    Bonds numbered 1-88,
    1 Vlllall St.,N.Y.5,  crued interest     consecutively~maturing
    N.Y.                                     1951-58, inclusive. at
                                              2BU.
                                              Bonds numbered 89'225,
                                              consecutively, matearing
                                              1959-70, inclusive, at
                                              2-3/4,g.
                                              Average net interest
                                              cost 2.7087.




 







Name of Bidder



Price Of'f'ered



Interest Rate or
Rates Stipulated



VWalter,Tioody & Heimer-
dinger,403 Dixie Termi-
nal, Cincinnati 2, Ohio






Bankers Bond Company
Almstedit Brothers
OtNeilAlden & Co.
Russell,long & Burk-
   holder
Security and Bond Co.
Stein Bros. & Boyce
J.D. Van Hooser & Co.,
   all of Louisville
   and Lexington.



Doll & IsphordingInc.,
   314 Provident Bank
   Bldg., Cincinnati 2,
   Ohio



'n227,260.00 plus
accrued interest







$227,499.75 plus
accrued interest











$227,250.00 plus
accrued interest



Bonds numbered l-139,con-
secutively,maturing 1951-
67,inclusive, at 3-t5
Bonds numbered 190-225,
consecutivelymaturing
1968-70, inclusive, at
3 o.
Net interest costs 3.0953.

Bonds numbered 1-77, con-
secutively,maturinq 1951-
57,inclusive, at 2K.
Bonds numbered 78-155, con-
secutively, maturing 1958-
65, inclusive, at 2_5/4,5.
Bonds numbered 166-225,
consecutively, maturing
1966-70, inclusive, at
3%.
This is an average interest
cost of 2.72.

Bonds numbered 1-33, con-
secutively, maturing 1951-
53, inclusive, at 2z$o.
Bonds numbered 34-225, con-
secutively, maturing 1954-
70, inclusive, at 2-3/4%.
Average interest cost,
2.649.



and



     MiERFAS, it appears to the Executive Committee that the best
bid received for the said bonds is that of Doll & Isphording, Inc.,
314 Provident Bank Building, Cincinnati 2, Ohio, offering a price of
$227,250.00, and stipulating interest rates as follows: Bonds Numbered
1-33, consecutively, maturing 1951-53, inclusive, at 2-%1% per anuum.
Bonds numbered 34-225, consecutively, maturing 1954-70, inclusive,
at 2-3/45 per annum:

     NOW, THEREFORE, THE EXECUTIVE CO14ITTEE OF THE BOARD OF TRUSTEES
OF THE UNIVERSITY OF KENTUCKY RESOLVES AS FOLLOWS:



11




 




12



         Section 1. It is hereby determined and declared that the
    highest and best bid received for $225,000.00 principal amount
    of "University of Kentucky Journalism Building Revenue Bonds,"
    dated January 1, 1950, is the bid of Doll & Isphording, Inc.,
    314 Provident Bank Building, Cincinnati 2, Ohio, offering the
    sum of W227,250.00, plus accrued interest,and stipulating in-
    terest rates as follows: Bonds Numbered 1-33, consecutively,
    maturing 1951-1953, inclusive, at 2-% per annum.  Bonds number-
    ed 34-225, consecutively, maturing 1954-70, inclusive, at 2-3/4%
    per annuma   Said bid is hereby accepted by the Executive Commit-
    tee for and on behalf of the Board of Trustees of the Univorsity
    of Kentucky. It is hereby determined that said bonds shall bear
    interest in conformity with the provisions of said bid, and the
    printer shall immediately be directed to prepare the bonds ac-
    cordingly.

         Section 2. As soon as the finished bond blanks have been
    received from the printer, they shall be executed as provided in
    the authorizing Resolution adopted by the Board of Trustees of
    the University on December 13, 1949, and shall thereafter prompt-
    ly be tendered to the purchaser named in Section 1 of this Reso-
    lution, and delivered to said purchaser upon payment of the bal-
    ance of the purchase price as set forth herein.

         Section 3. The certified or bank check of the purchaser,
   in the sum of Five Thousand Dollars (4'5,000.0o), shall be held
   uncashed and the amount thereof (but without interest thereon)
   shall be allowed as a credit upon the purchase price when the
   bonds are delivered and paid for.   The checks of all other bid-
   ders shall immediately be returned to them.

        Section 4. This Resolution shall be in full force and ef-
   f ect from and after its adoption.



     I.. Veterans Administration Ruling to Deduct from Cost of Irstruc-
tion Compensation Federal Funds Received from Morrill-Nelson and Banks-
head-Jones Acts.

     President Donovan made the following statement to the Comrittee:

     "The University of Kentucky, along with a number of other land-
grant colleges, is in a serious controversy with the Veterans Adminis-
tration.   I should like to incorporate into the minutes of the Board
a copy of a brief prepared by the Association of Land-Grant Colleges
and Universities giving the factual background of this controversy,
that the Trustees may be aware of what is involved in this dispute be-
tween the land-grant colleges and the Veterans Administration.

     "The land-grant colleges were established by the Congress in 1862
by the passage of the Morrill Act.   The University of Kentuoky was
designated by the Kentucky Legislature to be the land-grant college
for this state in 1865.  Subsequently, the public lands granted by




 




13



the Congress to endow the Institution were sold and a principal sum
of Q144,075 deposited. with the state treasurer as an endovnnent fund.
From this fund the University continues to receive interest at 6 per
cent.

      "Subsequently, the second Morrill Act, the INTelson amendclent to
 the Iiorrill Act, and the Bankhead-Jones Act provided additional annu-
 al grants for each of the land-grant colleges 'for their further en-
 dowmentf.   Our annual grants under these enactments total $87,617.87
 a year.

      "Now, three and one-half years after our first contracts with
 the Veterans Administration covering compensation received for the
 training of veterans under the so-called GI Bill, the Veterans Admin-
 istration has arbitrarily ruled. that these HIorrill-Nelson and Bank-
 head-Jones endowment funds should be deducted from payments mlade by
 the Veterans Administration to the University of Kentucky, and to the
 other land-grant colleges.

      'Riecently ve have been audited by the General Accounting Office
and the Veterans Administration is demanding that the University of
Kentucky repay approximately 3O00,000 because wee had previously not
deducted the IUlorrill-Nelson funds received by this institution in
the whole period during which students have been trained under the
GI Bill.

      "In a letter from General Gray, the Administrator, written on
December 12 to the Land-Grant College Association, he states that the
VA will require the deduction of these funds which have been kmnown as
endowment funds by the land-grant colleges before institutions will
be paid for the education of the veterans.

      `Thie whole situation is preposterous.  There is no relationship
whatever between the M4orrill-Nelson grants and the education of vet-
erans.  IIorrill-Nelson monies wvere received by this and other land-
grant colleges over a long period of years prior to w7orld War II.
The amount of annual grants has not been increased since 1935.    It
certainly was not the intention of the Congress that iMorrill-ilelson
funds be deducted from the compensation received by the land-grant
colleges for the training of veterans.   These funds are used to en-
dow the educational training of all students at the land-grant col-
leges and universities and not just veterans alone.   The position
of the Veterans Administration w-ould be more tenable if its payments
covered the entire cost of training veterans.   However, that is not
the case,   The formula under which this institution and the other
land-grant colleges are compensated takes into consideration only
part of the cost.   In Kentucky, it has been necessary for the State
of Kentucky to supplement the amount received from the Veterans Ad-
ministration for each student veteran.

     "Since no relief can be gained through further negotiations
with the Veterans Administration, the only solution would seem to be
an action by the Congreas.   Indeed, General tray says as much in his
letter of December 12.   Such relief, we suggest, should take the




 




14



form of specifically exempting Mi'orrill-Nelson endowment income from
the jurisdiction of the Veterans Administration, and providing that
the affected institutions may retain such endowment income as was re-
ceived in the period under dispute.

      "I will be in Washington most of this next week meeting with the
Executive Committee of the Land-Grant College Association, of which
I am a member.   W'e hope to introduce in Congress a bill asking that
the Veterans Administration be forbidden to take the endowment funds
of the land-grant colleges and credit them to the instruction of vet-
erans.

      "If the University does not receive these funds, it will be fi-
nancially embarrassed."


     The following statement is inserted herein for the record, and
to give a further account of the controversy with the Veterans Admin-
istration over the use of Federal endowment funds and the action of
The Association of Land-Grant Colleges and Universities.


      "1. Background

      "The integrity and proper use of certain funds granted to land-
grant colleges and universities by the Congress under Acts long ante-
dating '7orld Wlar II have been gravely endangered by actions of' the
Veterans Administration in connection with the veterans education
program.   The 53 member institutions of the Association of Land-Grant
Colleges and Universities, which, as a group, enroll more than a
quarter of all the college students in the nation, are greatly aroused
by this state of affairs.

     "Wrte believe that the action of the Veterans Administration has
grave implications for the relationships of the federal government
with all of education.   'Je feel that a fundamental principle is in-
volved.   In our conviction that the Veterans .Administration is wrong
in principle we are supported by the American Council on Education
(which represents all types of institutions, public and private), by
the National Association of State Universities, by the Department of
Higher Education, National Education Association, and by the Advisory
Committee to the Adminnistrator of Veterans Affairs.

    n1The history of this controversy is complex.   The issue is sim-
ple.   The issue is whether the Administrator of Veterans Affairs,
exercising powers e.xMressly rejected by the Congress when requested
by VA, shall nevertheless so interpret them as to permit the confis-
cation of funds coming to educational institutions for other purposes
than the veterans program.   The Solicitor of the Veterans Adnmnistra-
tion has ruled this is within the legal powers of the Administratbr.




 



15



     "since wide discretion is given the Administration under the
lavr to administer a complex program, and there is no provision for re-
course to the courts, it is difficult to establish the legality of
an action of the Administrator.   Our case is, however, not based on
this point,   It is our contention that the position of the Adminis-
trator is unsound, arbitrary, in violation of the intent of Congress,
and a grave threat to confidence of educational institutions in the
integrity of the federal government as represented by VA, in its deal-
ings with them.

     "The history of the controversy is this:

     "tIn the passage of Public Law 268, 79th Congress, first session,
the Congress provided that for public institutions whose customary
tuition charges were insufficient or inadequate compensation to carry
on the veterans educational program, the Administrator might contract
to pay on a "'fair and reasonable" basis for such education, but not
to exceed the estimated cost of teaching personnel and supplies.

     "The Veterans Administration had asked the Congress for authori-
ty to include in its estim