University of Virginia Library

ENDOWMENT FUND BILL BEFORE LEGISLATURE

The President stated that he had discussed with Mr. Gay a bill pending before the Legislature
to free endowment funds in state-controlled colleges and universities from inclusion in the
State budget. He stated that the bill had passed the House but had run into difficulties in the
Senate, where an amendment had been introduced which would have completely emasculated the bill.

Mr. Darden stated that he had discussed the matter with the Governor, who raised the
question of whether in the long run the University would be as well off as at present, since other
institutions in the State had been pressing for a uniform salary scale for their faculties, and
the State officials had defended the differential between the University and the other institutions
by stating that University endowment was sufficient to make up the difference.

On Saturday, February 23, the Governor called Mr. Darden from a meeting of the Association
of Virginia Colleges to discuss the bill. The Governor stated that he had just seen a delegation
from Virginia Polytechnic Institute, which group had stated that it was indefensible for a salary
differential to exist between V.P.I. and the University. Mr. Darden said that he had also talked
to Mr. Bradford, Director of the Budget, who was opposed to the bill. The question to be decided
by the Board was whether or not it should attempt to get the bill passed at this session of the
Legislature. Mr. Darden stated that he believed enough support could be marshaled in the Senate
to secure passage of the bill, and that the Governor had indicated he would sign it.

The President stated that the freeing of endowment funds from State control, plus the
recognition by the State of the pre-eminence of the University in the field of higher education
in Virginia, would make it possible to develop the University into an outstanding institution.

Mr. Gay stated that he had conferred with the Governor concerning this matter. He read
to the Board a part of the "Report on Higher Education in Virginia" which set forth what the committee
drafting the report believed should be the philosophy of the State towards endowment funds
of its institutions of higher education. He stated that he believed many donors would give to
the University if they were assured their gifts would not result in reduction of State support.
Such funds should be used to strengthen the institution rather than as replacement for State
appropriation.

Mr. Gay then referred to the Reorganization Act of 1927 which stipulates that all collections
of fees, revenues, etc., with the exception of the endowment fund, be paid into the State
Treasury. He stated that he had discussed this matter with Mr. Bradford who maintained that the
reorganization bill did not mean that endowment income should be excluded from consideration in
budgeting.

Mr. Gay stated that he had discussed with the Governor the matter of the salary scale
for the Faculty at the University in the light of its differential over that of other state institutions
and felt that the Governor was sympathetic to the view that in order to maintain its
position of eminence in the field of higher education it was necessary to maintain that differential.
Mr. Gay and Mr. Darden thought it was important, however, in considering what action the
Board should now take, that the Governor be considered as sympathetically behind such a differential,
or we might lose out in a fight before the Legislature. To sum up, Mr. Gay stated that
the members of the Board must make up their minds whether we should take the political risk involved
in pushing for passage of the bill at this time

Mr. Black stated that he feels in the long run we would lose if a fight developed,
because V.P.I. is a powerful force in the State Legislature.

Mr. Gay stated that he was not at all reconciled to the view that V.P.I. could maintain
its position before the Legislature for equalization in the pay of its faculty. He stated
that he would be willing to try to get this bill through at the present session.

Mr. Black said that he believed this was a bad time to attempt to press for passage
of the bill. He thinks we should wait until another Governor is elected. Mr. Gay stated that
what disturbed him was that if we do not secure passage of the bill now, two years hence we will
have a record of having failed to secure passage of the bill, and it will be even more difficult
to secure passage at that time.

President Darden said that he did not believe the political climate was suitable to
press for passage of this bill in the current session of the Legislature.

Whereupon Mr. Mears made a motion that we not press for action at this time. As
there was no second, the motion died.

Mr. Gravatt stated that if V.P.I. and William and Mary organized against us in the
Legislature he was sure the University would be defeated. Mr. Gay stated that the institutions
of higher learning in the State were supporting this bill and he doesn't see how after its passage
they could reverse their stand and use it as a basis for opposing the present salary differential.

Mr. Gay then moved that a resolution be adopted that it was the sense of the Board
that this bill should be passed at this session of the Legislature and requesting the President
to take such action as is appropriate to secure its passage. This motion died, as there was no
second.

Mr. Garnett then moved that the matter be left to the discretion of the President.
President Darden wanted the Board to understand that if the matter were left to him, he would
leave the bill in committee. Whereupon a motion was passed to leave the matter to the discretion
of the President.

Mr. Gay asked to be recorded as voting in opposition to this decision. However, he
stated that if the President should change his stand and press for the passage of the bill, he,
Mr. Gay, would vote yes.