Proceedings of the Board of Regents (1939-1942)

JANUARY MEETING, 1942

S61

The Board shall be responsible for the business management of all activities
under its jurisdiction. To facilitate its business affairs, the Board may form a
corporation to be known as "The Board in Control of Intercollegiate Athletics of
the University of Michigan."
(In this section the Board is given the specific power to appoint the University representative in the Western Conference. The appointee serves at the pleasure of the Board,
but his appointment is to be approved by the University Council.)
Sec. 28.11. Funds. All moneys received by the Board from any source shall
be deposited to the credit of the Board in a bank or banks approved by the
Board. No withdrawals shall be made from such deposits except upon vouchers
which shall bear the signatures of the Director of Physical Education and Athletics and the secretary of the Board in Control. Any surplus funds from intercollegiate operations shall be devoted (1) to the further support of the various
programs and activities carried on within the Department of Physical Education
and Athletics, and (2) so far as possible to permanent University improvements,
particularly to the upbuilding of facilities for participation in all forms of physical exercise.
During the spring of each year, as early as may be feasible, the Board shall
prepare a schedule of salaries for the members of the staff of the Department of
Physical Education and Athletics, in so far as those salaries are paid out of funds
administered by that Board; and as early as possible after the opening of college
each year it shall also prepare a schedule of allotted funds, with appropriate contingent funds, for the support of the various activities under its jurisdiction. Both
of these schedules, upon their adoption by the Board, shall be reported to the
Board of Regents for approval.
(The principal change in this section is contained in the last sentence, in which it
is provided that the budgets of the Board in Control must be appro.ved by the Board of
Regents prior to becoming effective.)
Sec. 28.12. Rules and Regulations. Rules and regulations relative to the use
of the properties devoted to Physical Education and Athletics shall be prepared
by the Director of the Department and submitted to the President and Board of
Regents for approval. Regulations shall cover such matters as access to Ferry
Field, the use of Palmer Field, the extent to which athletic coupon books shall
entitle holders to admission without further charge to athletic events, and similar
matters.
In accordance with a communication from the Board of Governors
of the Lawyers Club, accompanied by an opinion of Dean Stason
upon the proper interpretation of the will of the late William W. Cook,
the donor, the Regents voted to approve admission to the Lawyers
Club dormitories for the duration of the emergency only both pre-law
students and also special student groups sent to the University for
training purposes in connection with the military program, it being
understood (1) that law students should always be given first choice,
(2) that the condition in Mr. Cook's letter, of gift relative to summer
use shall not be violated, (3) that the additional special group hereinabove referred to shall be subject to the regulations of the Board of
Governors of the Club concerning conduct and discipline, and finally
(4) that they shall be accommodated only by opening to them such
sections of the Club property as would otherwise remain vacant and
unused.
The Secretary having notified the Board of a ruling by the United
States Commissioner of Internal Revenue to the effect that the Michigan Union and the Lawyers Club are subject to federal social security
tax, with assessments dating back to 1936, and further that it was the
opinion of Mr. George J. Burke, counsel for the Regents, that this
was basically an incorrect ruling and should be contested, the Regents
authorized appropriate proceedings to contest such ruling.