VI. FINANCIAL REPORT

The controversy between the University and the state authorities on the question of the interpretation of the amended mill tax act approved March 10th, 1913, still remains unsettled. This act, increasing the millage tax levied for state educational institutions, provides that the proceeds of the tax levy when available "shall constitute the total amount to be paid out of the treasury of the state to said institutions for any purpose thereafter and all acts and parts of acts in conflict with these provisions are hereby repealed, provided that nothing in this act shall affect in any way any endowment or permanent fund or funds that may belong to or may have been appropriated for either Indiana University or Purdue University." The University claims that the above cited proviso saves the statutory appropriations of $75,000 annually to the Experiment Station, approved March 8, 1900, and $30,000 annually to the Extension Department, approved February 27, 1911, and any other statutory appropriation made prior to March 10, 1913, and that these appropriations are payable from the general funds of the state and not from the proceeds of the tax levy. The state authorities on the other hand, contend that these appropriating acts are repealed and that the amounts thus appropriated are henceforth to be paid from the proceeds of the mill tax.

Further, certain specific appropriations, particularly the appropriation of $30,000 for a greenhouse included in the appropriation bill approved March 13, 1913, and therefore subsequent to the enactment of the tax levy, it is claimed are also payable from the general fund of the state and not from the proceeds of the educational tax levy. After numerous conferences on this subject, it was mutually agreed that a friendly suit should be entered into between Purdue University as plaintiff and the State as defendant to settle the question in controversy. Such a suit was filed in the Marion Superior Court, Room 1, in the June term, 1915.

The decision of the court, handed down in October, 1915, sustained the complaint of the University in every particular and issued a mandate to the defendants, the State, to pay out of the General Fund the following sums which, under the construction of the state

officials had been wrongly paid out of the proceeds of the Educa

Following this decision, appeal was taken by the defendants to the Supreme Court where the case is now pending.

The income of the University and its various departments is derived from a number of sources, principally as provided by Federal and State statutes. A list of these various funds with a brief description is as follows:

A. Income for the Maintenance of Departments of Instruction.

1. Educational Mill Tax. Act of legislature approved March 10, 1913, levying 2.8 mills on the dollar for the benefit of Purdue University.

2. Interest on Endowment under an Act of Congress approved July 2, 1862, conveying public lands to Indiana to establish a college of agriculture and mechanic arts. The proceeds of the sale of this land, $340,000, the State holds in trust on the condition of paying 5% interest annually.

3.

Federal Appropriations, $50,000 annually from the United States Treasury, Acts approved August 30, 1890, and March 7, 1907. 4. Miscellaneous Fund, derived principally from student fees and sales of miscellaneous products.

B. Income for the Maintenance of the Agricultural Experiment Station. 1. Federal Appropriations, $30,000 annually from the United States Treasury, Acts approved March 2, 1887, and March 16, 1906. 2. State Appropriations, $75,000 annually, Act approved March 8,

1909.

3. Swine Diseases, $15,000 annually for the study and suppression of animal diseases, Act approved March 7, 1913.

4. Creamery License. For the inspection and licensing of commercial creameries, $1,000 and fees, Act approved March 13, 1913. 5. Stallion Enrollment, no appropriation, funds derived from fees. Act approved February 24, 1913.

6. Feeding Stuff Control, no appropriation, fund derived from fees. Act approved March 2, 1909.

7. Miscellaneous Fund, no appropriation, fund derived from fees for the supervision and inspection of the sales of commercial fertilizers. Act approved March 11, 1901.

C. Income for the Maintenance of the Department of Agricultural Exten

sion.

1. Federal Appropriation. Smith-Lever Fund, $28,731, increasing

2.

annually. Act approved May 8, 1914.

State Appropriation, $30,000. Act approved February 27, 1911. 3. Dairy Extension. No appropriation, fund contributed by private parties for dairy extension.

4. Miscellaneous Fund. No appropriation; fund derived from miscellaneous sales and fees.

D. Special Funds.

1.

2.

3.

Smith Bequest, legacy of Wm. C. Smith, cash and Minnesota lands. Moses Fell Annex. Gift and legacy of Moses Fell Dunn of lands and securities.

Memorial Gymnasium, subscription fund for the erection of the

Gymnasium.

4. Building Fund, the balance of the Educational Mill Tax at the end of each fiscal year transferred to a fund for "physical improvement." Act approved March 10, 1913.

5. Vocational Education.

6.

Under act approved February 22, 1913, the University disburses salaries paid by the State to county agents.

Athletic Fund. Receipts from athletic contests administered by the University.

7. Student Loan Fund. Trust funds donated for loans to needy stu dents, administered by a committee of the Faculty.

FINANCIAL REPORT

Condensed Statement of Receipts and Disbursements for the Year 1915-1916.

1 For twelve months ending June 30, 1916

2 For twelve months ending September 30, 1916

* In addition to this amount there was received from the Auditor of State $618.04, to cover vouch

ers against the Building Fund unpaid on September 30, 1915