The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-12-29

the lunQ at THIS OaL6 IL 6b IOllOWes
Cash balance, reported for q years.. $50 ID
Due from the general fund Tor coupons
OF internal improvement bonds re-
6ssmed h5em shs 9aisd d states baio E5
to this fund according to lawn, lOS.2OS 60
Due from the general fund as amount
enormously Ill with IL March 2,
522s 81
....................flI8,Is asa 50
This, If paid, would place this fund in con-
dition to pay the residue of long standing
appropriations to counties, and keep faith
with the United States by applying the
money received to the purpose for which 1t
was given.
THE COLLEGE FUND.
This fund, the treasurer claims, has been
augmented by another process that does not
seem to be supported by law as well as the
operations provided for by sectional amend.
ments- For instance, section 80 of the act
of June IL, 1852, provides that no greater
sum than $500 shall be loaned out OF such
fund to any one person, nor shall the loan
be for longer period than Eve years.
Section 90 OF the same act provides that
when any tract of land bid off
by the state is sold on q credit on the execu-
ton aud delivery OF note and mortgage for
the proper amount, as in other cases re-
quired, the purchasers shall be entitled to a
deed for the same to be made as prescribed
in the preceding sections; and the trans
action shall be entered and appear on the
auditors and treasurer's books as a payment
of the sum bid and a relosn to
the purchaser. He finds that
OF the sale-principal, interest, damages,
and costs-have simply been substituted
upon the college loan ledger for the origi-
nal loan, bearing the same number, and no
receipts or warrants passed with the trans
action whatever, so far as the state was
he =
auditors reports of q number OF current
loans, each In amount far exceeding the
limit allowed by law. This is augmSntine
the college fund, principal and loan account,
at the expense Of the accumulation accounts
that are intended by legislators to support
the current expense of the college. The in
terest thus transferred to the principal has
been S3.27S 90. This fund, however, as a
rule, has been kept in much better condi-
ton than the other trust funds.
COMMON SCHOOL FUND.
After quoting article of the state con-
stitution, declaring from what sources the
common school fund shall be derived and
the various sanctions treating of its collec-
ton and management, the treasurer men,
tons the act approved March 6, 1865, levying
tax of Is cents on each 500, and poll tax
of so cents. After some remarks on the d.
rection OF this fund, not neces-
sary here to repeat, he calls attention
to the official note he received
soon after the publication of his last annual
report from the Hon. James FL. Smart, su-
perintendent OF state education. 1t reads as
follows:
SIR: In your annual statement of the
condition of the state treasury for the year
ending October 81, 1875, you show a deficit
OF Sl7, 1862 43 In the account of the common
school fund revenue for tuition. By refer
80 No. S0ff L.
pears that there should have been in the
treasury at that date q balance OF
Sis, 5l2 SO to the credit of said ac-
count. If the various amounts
which constitute the school revenue for tut
ton, and which were due that account in
October, 1875, as shown by our books have
been properly credited thereto, there should
be the balance to our credit as indicated
above. / respectfully request that you make
a thorough examination of the case, that the
facts may fully appear in your forthcoming
report. The books and records of this office
are at your disposal for examination and
comparison. JAMES III. SMART.
Prompted by this note Col. Shaw
proceeded at once to examine
the constitution of the state and
the laws made In pursuance thereof from
time to time. Among the first things he
bad in pursuance of sec. lis of an act
approved March IL, 1861. This provides
that the superintendent of public instruc-
ton, on certain days fixed for his appor-
tionment OF said revenue, add to the sum
total of said revenues in readiness in
sum Of $4,000 A pf the state sP S
indebtedness to the schools, which additions
shall continue to be made at each appor-
tionment until the whole OF said indie bted-
ness, together with ak per cent. interest, is
paid. Now, he finds by the report of the
In dab M
owed the schools is placed at 1903 ,92l 6S
This was subject to distribution at the pleas
ure of duty or the superintendent. AS the
fund balance in disregard of the cons.itu-
ton had been diverted to other
uses than tuition, law was
ruptcy of the treasury by the sudden
distribution of the school fund balance. In
pursuance of the law OF 1861, the school
superintendent added S25, 900 of this bal
ance or debt to the apo rtionment for the
spring distribution OF 1862, but omitted it
| from some cause in the October apportlon-
| ment. In the next year and each succeed
ing year he did apportion SIS, 900 at each
semi-annual distribution, as the records
show, until October, 1867, when the records
show that after enumerating the
various sums and their sources
added from the states Indebtedness
balance of principal due) the sum OF
SIS, 573 Sc. Now, this being the balance OF
the principal, and there having been in all
spportioned s265 ,573 So. and distributed, it
would evidently appear that the principal
OF the states Indebtedness was paid, in
stead of the gradual payment. This princi-
pal was really a balance belonging to the
fund. and mad been accredited to the fund,
and to no other fund whatever. But the in
terest that the state had contracted to
pay the schools was Interest on balances on
the fund. Accor Ling to the records, the
Therefore, any further amounts added to
apportionments, on account of the states
indebtedness, were made to pay the inter-
ests, aud the record shows that In 1868, $50
and 20 the regular additions, SIS, 900. were
made to each May and October apportion.
Ir.,n icutlx hox-o hoox a ca.,f 1nl IL