Annual report for 1932 from the regents of the University System of Georgia to his excellency honorable Eugene Talmadge governor [Jan. 17, 1933]

Annual Report
for
1932
from Regents of the University System
of 9eorgia
To His E xcellency HONORABLE EUGENE TALMADGE
Governor January 17th, 1933

To His Excellency Honorable Eugene Talmadge, Governor of Georgia, State Capitol, Atlanta, Georgia.
Dear Governor Talmadge :
The Regents of the University System of Georgia have just completed their first year in office, and in accordance with law, are submitting to you an annual report as required by Section 60 of The Reorganization Act.
The Regents are twelve-one from each of the Congressional Districts, the Governor, ex-officio, and a member from the State at Large.
The personnel of the Board, as now constituted, is as follows:
Eugene Talmadge, Governor, Ex-Officio, McRae. Hughes Spalding, Chairman, Atlanta, 5th District. Cason Calloway, Vice-Chairman, LaGrange, 4th District. R. B. Russell, Sr., Winder, 9th District. M. D. Dickerson, Douglas, 2nd District. A. Pratt Adams, Savannah, 1st District. W. J. Vereen, Moultrie, 8th Distr.ict. T. F. Green, Athens, lOth District. E. S. Ault, Cedartown, 7th District. George C. Woodruff, Columbus, 3rd District. W. Elliott Dunwody, Macon, 6th District. Philip Weltner, State at Large, Atlanta.
The Board organized on the first day of its existence, January 1st, 1932. All of its members were present. W. D. Anderson, of Macon, Georgia, was elected Chairman; Philip Weltner, Vice-Chairman; Charles M. Snelling, Chancellor; and Erie Cocke, Secretary-Treasurer. Mr. W. D. Ander-
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son served as Chairman until he regretfully resigned last June, due to pressure bf his exa'Hing business. Mr. Anderson's great executive ability and his prodigious capacity for organization was and still is of great value to the Board. Hughes Spalding was elected to succeed Mr. Anderson, as Chairman, and W. Elliott Dunwody was appointed to the Board of Regents from the 6th District to serve in his stead.
Miss Martha Berry, of Rome, Georgia, one of the original appointees, resigned in October, 1932, and E. S. Ault, of Cedartown, was named to succeed her. Miss Berry is recognized as being in the first rank of educators in the Southeast and her loss, due to the demands of her own great institution, Berry School, has been greatly felt.
At the first meeting, and immediately thereafter, the Board adopted a comprehensive set of rules and regulations, for its own guidance and for the Government of the Institutions under its control.
When the Board is not in session, it functions through its Committees, which are as follows:
Committee on Education: Philip Weltner, Chairman.
Committee on Organization and Law: Thomas F. Green, Chairman.
Committee on Finance: W. J. Vereen, Chairman.
Committee on Visitation: R. B. Russell, Sr., Chairman.
The Board holds regular meetings,. when occasion demands, upon the call of its Chairman, usually once each month. Regular meetings have been held upon the following dates: January, 1-2; February, 12-13; March, 24-25; April, 29; May, 10; June, 3-4; June, 17; October, 14; November, 25; December, 17, 1932; and January 13, 1933.
Our Committees have power to act when the Board is not in session, but all important Committee action is brought up for ratification at the next meeting of tlie Board. It
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may be truly said that the Board, through its Committees, is almost continuously in session. ...
The following institutions are units in the University System:
1. University of Georgia, Athens, Georgia. 2. Georgia School of Technology, Atlanta, Georgia. 3. The Georgia State College of Agriculture and the
Mechanic Arts, Athens, Georgia. 4. The Georgia State College for Women, Milledgeville,
Ga. 5. Georgia State Teachers College, Athens, Ga. 6. Georgia State Woman's College, Valdosta, Ga. 7. South Georgia Teachers' College, Statesboro, Ga. 8. Medical College of Georgia, Augusta, Georgia. 9. North Georgia College, Dahlonega, Georgia. 10. Georgia State College for Men, Tifton, Ga. 11. Bowden State Normal & Industrial College, Bowden,
Ga. 12. State Agricultural & Normal College, Americus, Ga. 13. Georgia Industrial College, Barnesville, Ga. 14. Middle Georgia College, Cochran, Ga. 15. South Georgia State College, Douglas, Ga. 16. Tenth District Agricultural & Mechanical School,
Granite ,Hill, Ga. 17. The Georgia Vocational & Trade School, Monroe, Ga. 18. Fourth District Agricultural & Mechanical School,
Carrollton, Ga. 19. Seventh District Agricultural & Mechanical School,
Powder Springs, Ga. 3

20. Eighth District Agricultural & Mechanical School,

Madison, Ga. .

..

21. Ninth District Agricultural & Mechanical School, Clarkesville, Georgia.

22. The Georgia State Industrial College for Colored Youths, Savannah, Georgia.
23. Agricultu~al, Industrial & Normal School for Training Colored Teachers, Albany, Georgia.

24. State Teachers & Agricultural College for Negroes, Forsyth, Georgia.

25. Georgia Experiment Station, Griffin, Ga.

26. Georgia Coastal Plain Experiment Station, Tifton, Ga.

IMPORTANT ACCOMPLISHMENTS
Survey
A comprehensive survey of the institutions in the University System has never been made. Few citizens of Georgia knew that we have 26 institutions in our University System. Still fewer knew where they were located. No one person, nor group of persons, knew how all of these institutions were operated, nor what was taught at each, nor of the duplications in courses, the waste in time, effort and tax money. They all knew that our University System was overexpanded, but no one knew exactly what should be done about it, nor how to approach the task. We thought the best thing to do was to find out what disinterested expert educators and economists thought, and what, in their opinions, we should do to make it more efficient from an educational viewpoint and more economical from a taxpayer's point of view. We welcome the opinions of trained egucators and economists, but expect to apply them only to the extent that they will serve the best interests of the young men and
4

young women of Georgia. The General Education Board granted us $20,000.00 for starvey pur,>oses, and when this tedious work is completed, we expect to find it a very great help in enabling us to reach just and sound decisions of the many problems, which we must solve.
Financial Plans and Policies
On January 1, 1932, the finances of most of our institutions in the University System were in a very chaotic condition. These institutions had large amounts owing to them by the State of Georgia on unpaid appropriations for the years 1929, 1930 and 1931. In order to keep the schools open and operating properly the former Boards of Trustees of the various institutions, through no fault of theirs, had been compelled to borrow money from banks and to contract other debts in order to meet expenses for current operations. Both borrowers and lenders had every reason to believe that conditions would improve and that the State would be able to meet the unpaid appropriations for those years. All parties concerned were doomed to disappointment, and when the Regents took office, the various institutions in the System owed the teachers, merchants, banks, and others $1,074,415.45. By economical management, and in spite of the fact that we have received only 86 per cent of the State appropriations for the year 1932, the Regents have reduced this debt by the payment of $371,913.10, leaving the indebtedness at present against the institutions in the System at $702,502.35. Of the amount paid on debts during 1932, approximately $233,000.00 was derived from funds received from the State on account of the discount of W. & A. rentals.
The amounts given above are correct, according to the books of the various institutions. However, we found that some of the institutions in the System were carrying December, 1931, operating expenses into 1932. Such items as salaries, supply bills, etc., for the month of December, 1931, were not recorded on the books of the several institutions
5

antil <:.iter December 31, 1931. In other words, some of the institutions were "kiting" opel"'!lting expenses from one calendar year into the next calendar year, and were running one month behind. This will probably add to the indebtedness above specified the sum of approximately $150,000.00.
At one of our meetings, in the early part of 1932, all institution heads were called into conference, and furnished us with statements of their financial condition. These statements were studied and a full discussion was had with the head of each institution. A system of budgeting was installed, and after great effort, a satisfactory budget was received from each institution, and all institutions lived within their respective budgets during 1932.
All amounts, which have been paid to us by the State on account of unpaid appropriations for previous years, except 3 per cent, which was used to defray the expenses of the Chancellor's office, have been applied by all institutions, which were in debt towards the payment of debts which had been contracted prior to January 1st, 1932. This plan of liquidating debts is strictly followed, and when an institution owes several debts, the payments are made to its creditors upon a pro rata basis.
Each institution is audited annually by the State Auditor, and the institutions are checked up at least once each quarter by our Treasurer's office. In addition, we require from each institution a detailed monthly statement of receipts and disbursements.
All employees of the Board, and of each institution, who handle funds, are compelled to make a surety bond to protect the institution against loss. The bonds are payable to the Governor.
Banking Arrangements
All banks, no matter how large or small, in order to secure deposits of any of our institutions, must either give a surety
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bond, or make a deposit of United States bonds, State of Georgia bonds, or municipaJ or county bonds, approved by the Secretary-Treasurer of the Board. Notes of institutions in the System are also accepted, from banks holding them, to secure the deposit of an institution which executed the note or notes. This caused a good deal of complaint and requests for special dispensations, but we have stuck to this rule without exception. During this year two banks, where our funds were deposited, were closed. In each instance we had United States bonds to secure the deposit. These bonds were almost immediately sold, and after deducting the amount owing us, the balance was turned over to the liquid~ting agent of the closed bank. If it had not been for this protection two of our institutions would probably have been forced to suspend temporarily.
Insurance
All insurance (fire, truck, steam boiler, burglary, etc.) was consolidated, and by the intelligent and helpful cooperation of the insurance companies, we have been able to secure more protection at greatly reduced rates. Insurance is placed with local agencies and we attempt to give each agent a fair share of the business.
Pa8senger Automobile8
All passenger automobiles, from Lincoln to T. Model Fords, formerly owned by institutions in the System, which were operated at the State's expense, have been sold. This practice of furnishing passenger automobiles for the convenience and pleasure of the personnel of institutions has been permanently discontinued.
Cooperation
We have had the hearty cooperation and support of all the departments and agencies of the State Government, of
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the bankers, to whom the System owes a large sum of money, and of our other creditors. It ii proper to say here that the heads of all institutions have worked faithfully and hard, and that they and their faculties and the administrative officers, have shown a spirit of devotion, and even of sacrifice, which has stirred our admiration and aroused our respect.
Borrowing
We are happy to report that we have not borrowed any sum whatever from any source for the operation and maintenance of any institution under our control, although we were given liberal borrowing privileges by several of the banks with which we do business.
Integration
We have made a beginning towards integrating the three separate institutions at Athens into one institution, which will hereafter be known as the University of Georgia. This step has resulted in considerable financial savings to the State, and increased efficiency in the teaching. It will make possible still greater educational efficiency and economy for the next scholastic year, which will begin July 1st, 1933. This movement is not yet completed and should, and will, be carried to a logical conclusion. As an instance of the work done at Athens, the three institutions there were conducting three separate farms and three separate dairies. Each had dining halls and dormitories under different managements. One farm and one dairy are now being operated. The dining halls and dormitories are now under one efficient management. The three institutions in Athens were also competing in educational matters, each conducting, or attempting to conduct, like courses in the same subjects. We have made a good start towards correcting this and similar duplications, and our efforts will continue until we develop an integrated institution at Athens, which we hope will result in a great State institution.
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Election of Faculties

.

....

At some of the institutions in the System the custom of

automatically reelecting faculty members had grown up so

that if a faculty member had been satisfactory for two or

three years, he had a life-long job. This did not work for

efficiency, and this practice was immediately discontinued.

The heads of institutions and their faculty members are

elected for one (1) year only. Faculty members are recom-

mended by the heads of the respective institutions to the

Chancellor. The salary of each person is also recommended.

The Chancellor approves or disapproves these recommen-

dations, and the Board has the final say-so, and in the last

analysis elects all personnel and fixes all salaries.

Salaries of Faculty Members
It had been the custom to elect all personnel at a stated fixed annual salary, and if the State was unable to pay its appropriations, then the institutions would be in debt to the members of the faculty for such unpaid amounts. We provided in all salary contracts that if the State did not pay its appropriation in full to us, that all salaries of faculty members would be automatically and proportionately decreased. Inasmuch as the State appropriations fell short by 14 per cent in 1932, all salaries contracted to be paid by the University System were automatically reduced 14 per cent unless the institution had saved sufficient funds from other sources to pay in full. This automatic reduction in salaries was in addition to general salary reductions, some as high as 20 per cent, which were put into effect last year in order to balance the various budgets. Supply bills must be paid in full before salaries, which causes heads of institutions to be very careful of these expenditures. This general plan, however, is working a hardship on the personnel of some of our institutions, but it has kept us from going any further into debt. Should the State appropriation for the maintenance of higher education be made in a lump sum to the Regents, these inequalities could be immediately and easily corrected.
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Visits to Institutions
...
Separate committees, composed of at least two members of the Board, have visited each of the 26 institutions in the System. Some institutions have been visited by practically every member of the Board. These visits have really amounted to something and have more of the flavor of inspections than visits. Written reports have been filed with us covering these visits. In this way we were able to secure a vivid picture of the various institutions and have before us facts that otherwise would not be available.
Financial Savings in Operation
During the calendar year 1932, the 26 institutions in the System were, in our opinion, operated more efficiently than in 1931, at a cost of $507,739.84, less. This is due almost solely to the advantage which naturally flows from centralized control and not to any peculiar abilities of the members of this Board. The former Boards, which we succeeded, considering the handicaps under which they labored, accomplished much, and should have the sincere thanks of all Georgians for their patriotic and unselfish devotion to their rarely appreciated tasks.
Duplication of Courses.
We find that there are many unnecessary and wasteful duplications of educational courses in the various institutions in the System. We have made a start towards consolidating some and eliminating others. The lOth District A. & M. School, at Granite Hill, has already been closed. We have discovered that there is no plan of standardization of courses between units in the System. For instance, a young man or young woman might take a course at one of the schools in the System, and want to transfer to some other school, and would then discover that credits for work done at one institution in the System would not be accepted by another institution. This is all wrong and should
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be corrected, and will be, effective July 1st, 1933. The courses given by the different institutions in the System must be so arranged and such a standard maintained that a student transferring from one institution to another will be entitled to full credit for work done.
Harmony Prevails
This Board has worked hard and harmoniously. All important decisions have been practically unanimous. No misunderstandings nor breaches of any kind have occurred. We have avoided politics. Anything that would so involve the Board, would be disasterous to the University System. Education must be kept out of politics.
Our rules provide that all teachers and other personnel must handle all grievances, complaints, etc., with the head of the institution, where employed. No Regent is permitted to recommend anybody for a position with any institution in the System.
We have taken the attitude that the head of each institution must run his institution in a manner which is satisfactory to the State and to the Regents, and if he is unable to do so, then we will get somebody who can. This places each institution head on his metal. The result has been very gratifying.
Each institution must also settle its internal difficulties, and its own local politics, and no member of this Board will hear complaints from faculty members or students until remedies are exhausted with the institution heads, and then complaints made to the Regents, through the Chancellor, must be reduced to writing. As a result there have been but two appeals made to us, and in both instances, the rulings of the institution heads were unanimously sustained. We make it a practice not to go over the heads of the constituted authorities of any institution. Each institution head, each Faculty member and each Administrative Officer must hold his job on merit.
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.. Secretary-Treasurer
The Board has its offices at the State Capitol. Its business affairs are managed by a Secretary-Treasurer. It is the duty of this official to keep all records and books; to control and manage all endowment and trust funds belonging to all of the institutions in the System; to invest and reinvest these funds; and to generally supervise and look after the financial affairs of the Board and of each institution in the System. All of his acts, except those which are purely ministerial, are controlled and directed by Board action. This office is well run and the records admirably kept.
Purchasing
The State Supervisor of Purchases has been of considerable benefit to us in securing a list of the lowest prices at which commodities, supplies, etc., can be secured. In this way, we ascertain what prices the institutions in the System should pay for supplies, commodities, etc. It is our practice to patronize local merchants and to afford them every opportunity to supply the needs of our institutions locally. In practically every instance, local merchants have met the schedule of prices furnished us by the State Supervisor of Purchases. It is, therefore, unnecessary and undesirable for the Board, or its Treasurer, to make central purchases for all of the institutions. We expect to continue the practice of giving the business of each institution to the local merchants as long as lowest prices are met and quality is maintained.
Personnel of Institutions
We cannot praise too highly the loyalty and devotion to duty of the Chancellor of the University System, the heads of institutions, their faculties and administrative officers. Without exception, they have worked hard and diligently, and have, and are, giving to the institutions and to the
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young men and young women of the State the very best that they have. We are !flOre thau pleased to extend to them our thanks and appreciation for their cooperation and support. They have won our affection and earned our respect.
Conditions Existing in the System
1. It is perfectly plain, after a year's experience, that we have too many institutions in the system. There are 25 now operating, counting the two Experiment Stations. The expense to the taxpayers of properly maintaining these 25 institutions, with their Presidents, Principals, Directors, Deans, Teaching Staffs, Registrars, Treasurers, Clerical Forces, Dining Halls, Dormitories, and with all the other personnel and equipment necessary to carry on these widely separated and distinct units, is prohibitive and wasteful. All of these institutions are not necessary to properly educate and train the young men and young women of this State, which is a1ter all, th-e only thing that justifies the existence of any of these institutions. We will deal with this problem further and at length under the subject of "Recommendations."
2. The physical properties of many of .the institutions in the System have been permitted to deteriorate. Many buildings are in a bad state of repair. Others are unpainted and we know of one, at least, which is <>n the verge of collapse, and which we have been advised to abandon until it can practically be rebuilt. Unkept buildings disintegrate very rapidly, and something, if possible, should be done to keep them painted and to keep the roofs in repair. This is one of our chief difficulties, as practically all funds, appropriated by the State, are used to pay administrative officers and teachers, and to provide necessary teaching equipment, fuel, power, light, and other like items.
The larger institutions in the System are suffering from inadequate financial and moral support. There is a tendency to enlarge the smaller institutions and to allow the
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larger and better known Units to shift for themselves. For instance, the StatQ has not ~ppropriated any funds for permanent improvements at the University of Georgia for about 30 years, and if it had not been for the unusual loyalty and generosity of its Alumni, it probably would have almost ceased to function several years ago.
3. There is too much competition between our institutions for numbers of students, for the size of appropriations, for expansion of educational courses, and too little competition in learning, scholarship and general excellence of work done. There is a great but natural tendency for local communities to treat our educational institutions as belonging to them rather than to the State.
4. The multiplication of institutions, and their multiplication of courses, has reflected seriously in the quality of their work. This was inevitable and could not have been prevented. It is the natural result of creating 25 State supported institutions. It is worthy of comment, that these schools have maintained some semblance of unity, one to the other, although there was practically no contact between them, and no Board or other agency, whose duty it was to weld and hold them together.
5. Some of the smaller institutions in the System are too ambitious. .Instead of being content with a moderately sized institution, which should be a credit to the community, in which they are situated, and be a feeder to the larger institutions, each wants to be a College and to have power and authority to grant degrees in one or more courses. This is encouraged, of course, by local communities, and the result is that as the smaller institutions expand and multiply their courses, they enter into direct competition with the larger institutions in the System, which already have the facilities for giving these courses. When these smaller institutions expand and grow and multiply their courses, they demand new academic and administration buildings, more dormitories, larger dining halls, larger
14

teaching staffs, and new and additional equipment. The State cannot permit this practice tQ continue, especially as it is already providing adequate facilities elsewhere. Unless this is stopped, it will either bankrupt the State or result in closing all, or practically all, of the Units in the University System.
Recommendations
We make the following recommendations in a spirit of humility, knowing our limitations and the tremendous task before us.
The whole State is facing a grave financial crisis. If the University System and our other departments of State Government are to survive, all of them must practice rigid economy and make our institutions as efficient as those of well managed private corporations.
The University of Georgia, out of which grew our University System was established by legislative action in 1785. Since that date education has been considered a public function in this State. The Act creating the University of Georgia clothed its trustees with power to create a System of public education in Georgia in all of its grades from Grammar School through the College Courses.
During the 148 years which have elapsed since Georgia led the way in establishing the first State supported University in these United States, Governmental Subdivisions of our State, such as Counties, School Districts, Cities and Towns, have assumed the responsibility of public education through the high school grades. It is now generally recognized that grammar and high school education is not a function which the State should perform.
It is our conviction schools should be locally maintained and managed, except where the special type of education, proposed to be given, draws a student body from a territory in the State far larger than the Governmental unit,
15

which is supplying the needs of local education; and where the type of education involvesexpenditures beyond the power of the local Governmental unit to defray.
1. We recommend that instead of the General Assembly making appropriations to specific institutions for support and maintenance, that a single appropriation be made to the Regents of the University System of Georgia with power in the Board to consolidate institutions, suspend and/or discontinue their operation, merge departments, inaugurate or discontinue courses, abolish or add degrees.
Discontinuance, suspension or consolidation of schools will be much less drastic, if done by the Regents than by Legislative action, and affords time and room needed for readjustments in personnel, services and properties. Only by this method may many faithful public servants, long connected with these institutions, be employed elsewhere in the System. We must take adequate care to carry all schools forward to a point where suitable transfers of students can be made to other institutions. Time must also be afforded to put the discontinued properties to some constructive use.
It will be the purpose of this Board to discontinue as of July 1st, 1933, such schools as are doing only high school or substantially only high school work, and to eliminate high school work from all other institutions. This will not apply to all three of the negro ischools in the System because negro high schools in Georgia have not progressed sufficiently to make this possible; whereas, we have in this State a large number of very effective local white high schools. In fact, one or more is found in nearly every county. It will be our further purpose to possibly discontinue, merge and/or consolidate other schools, depending upon the educational needs of the State and the condition of its finances. Regents of the University System are now responsible for the higher educational institutions of the State and should be given powers commensurate with their responsibilities.
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2. We recommend that the Regents be given power and authority to allocate and/or distribuJie the State appropriation made to them in such way and manner and in such amount or amounts among the institutions in the University System, as they see fit, having in mind a well-coordinated and integrated University System, conducted efficiently and economically.
Some institutions have more funds at their disposal than their necessities require, while others are in want. It is impossible for the Legislature, in the press of important matters, to make the necessary investigations and to ascertain the needs of these institutions, whereas, the Regents are in a position to learn by experience and constant contacts with the institutions, just what should be done for each. Acceptance of these recommendations will have the additional virtue of stopping undue pressure for appropriations on behalf of these twenty-five (25) institutions before the Legislature.
3. In view of the unexampled financial depression, we recommend that the appropriation for the support and maintenance of the University System be reduced from $1,900,500.00, annually to the sum of $1,500,000.00 annually. We are dealing frankly and fairly with this situation, and we cannot operate on this amount unless the recommendations set out above are accepted. If the appropriations continue to be made to the institutions separately, they cannot be efficiently and economically operated and the present appropriation should not be reduced.
The State maintenance appropriations for all of the institutions in the System for the past three years aggregated the following sums:
1932 --------------------$1,900,500.00 1931 -------------------- 2,301,118.00 1930 -------------------- 2,377,782.67
It has been suggested that we ask for $2,000,000.00 and
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then compromise with the Legislature at $1,500,000.00, upon the theory that we won't J!et what we ask for in any event. We are not doing business that way, and have no hesitation in saying that if the Legislature fails to appropriate the amount which we are asking for, our University System will be badly crippled and some units which we consider necessary to the System will be forced to discontinue.
4. We urge an appropriation of, at least, $100,000.00 for necessary repairs to buildings where most needed at the various institutions. Failure to receive this minimum sum will, we fear, necessitate the expenditure of a much larger sum later on. Nothing proceeds as rapidly as disintegration of buildings, unless halted by intelligent repairs and replacements. This sum is a minimum requirement.
5. We recommend that the fiscal year for the Regents of the University System and for the institutions under their control be changed, effective July 1, 1933, so that in the future their fiscal years will begin on the first day of July in each year and end on the 30th day of June in the following year. This will avoid the necessity of each institution in the System being forced to make two annual budgets-one for the calendar year and one for the scholastic year. All contracts with teachers and with other personnel begin on July 1st in each year and extend to June 30th of the following year.
6. Should the above recommendations be accepted, we urge that the appropriation made by the General Assembly for the first six months of 1933 remain as it is, but that beginning July 1st, 1933, the annual appropriation to the Regents of $1,500,000.00 become effective. This plan cannot become sooner effective because existing contracts for teachers, supplies, etc., were made upon the faith of existing appropriations. We have not made any contracts, however, which extend beyond June 30, 1933. Adoption of this recommendation will mean the repeal of the appropriations
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made to the different schools in the University System as of July 1st, 1933, and approximately $20'0,000.00 can be saved to the State Treasury for the last six months in 1933. In other words, we recommend that one-half of the appropriation to each institution previously made for 1932 be paid, and that beginning July 1st, 1933, subsequent appropriations' be paid to the Regents in monthly instalments, if possible, based upon the annual rate of $1,500,000.00. This will enable our program of economy and contraction to become effective July 1st, 1933, instead of January 1st, 1934.
7. As previously stated in this report, the present indebtedness against the various institutions in the System, as shown by-the.ir books, is $702,502.35, plus such additional amount as may be necessary to absorb the so-called operating expenses for December, 1931. The total indebtedness of the institutions in the System, which were contracted prior to the time the Regents took office, to-wit, January 1st, 1932, is probably in the neighborhood of $855,000.00 principal besides interest. This amount should be accurately determined, and in order that this may be done, we recommend that the heads of institutions, the State Auditor and the Secretary-Treasurer, of this Board, be directed to definitely ascertain the same.. When the amount is determined, provision must be made for the payment of accrued interest and for interest which will accrue in the future.
We are in sympathy with your Excellency's desire to reduce unpaid appropriations to the extent necessary to pay the amount of the actual debts incurred on the faith of such appropriations ; provided, that such reduction apply to all departments of the State Government. The only thing that can be said against this plan is that those institutions which were financially mismanaged and ran heavily into debt will reap the benefit of their extravagances, whereas, those institutions which lived within the income received, or nearly so, will be penalized. In order to carry out your Excellency's plan, it will facilitate the handling
19

of these debts to have unpaid appropriations for previous years paid directly to this Board for pro rata distribution among the creditors of all of the institutions in the University System. Some few institutions are so fortunate as not to owe any debts, and payments to these institutions on account of unpaid appropriations could not be used to pay debts of other institutions in the System.
Conclusion
We realize that this report is long, but believe that every word in it is necessary for you to reach an understanding of our problems. It has taken us twelve mpnths to gain even a general knowledge of our Higher Educational Institutions, which should bear good fruit hereafter.
We state emphatically that it is not our purpose to aggrandize any institution without due regard to all of the others. It is, however, our plain duty to mold the institutions in the University System into an Educational System, in fact, as well as in name. It must comprise a group of separate institutions, under common control, and no two should pursue dominant purposes of the same character so as to duplicate each other's services and efforts.
Each school, of course, must offer such courses as are fundamental in their educational processes. Our aim is to encourage diversity of educational effort because of the diversity of human needs.
The young men and the young women of the State are entitled to every reasonable educational opportunity so as to promote the public interest, but we do not subscribe to the idea of multiplying courses and taking on new fangled educational ideas because some great university, with millions of dollars of endowment funds, is experimenting in these fields.
Our institutions should imbue their students with patriot-
20

ism and with a sense of obligation to their State, so that they will employ their talents for the..good of the State and of our institutions.
It is essential that local pride must give way to the best educational interests of the whole State. We cannot indefinitely continue to reduce salaries, postpone repairs and curtail supplies. Every one must recognize that not all of our schools, nor all of the departments in any one of them, are necessary from the puglic viewpoint.
It is only through this lump sum appropriation to the Regents that we will be able to preserve the integrity of such institutions as are absolutely indispensable.
We realize that we are asking for large powers, but they are necessary to make us equal to our task. The danger of their abuse is slight. The danger from their absence cannot be calculated.
Respectfully submitted,
REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA,
By HUGHES SPALDING, Chairman. ERLE COCKE, Secretary-Treasurer. January 17th, 1933.
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Ruralist Pl'ess, Inc. Atlanta, Ga.
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