The Leavenworth weekly times., 1875-12-30
From TIE CAPITAL.

Startling Facts for tas Peorle-Ths Great
schoo, Bond Forge-y-7lain History Of the
School Fund Mode Of Investment Inter
est on the Boaes-Growlh Of the Fund
It's Distribution, &C., &C.,
From Our Special Correspondent!
TOPEKA, KAN, Dec. q, 1879.
The unprecedented excitement through
out the State, caused by the explosion Of
the State school bond forgery, in which
Kansas, for short time, is out $4,000 in
her school fund, is still the theme of con-
versation in all circles, being discussed from
one end of the State to the other, and bv
all classes of c:tizeus. The school fund
question, find, is one that very few people
understand, and the residents OF the .'capi-
tai city, seem to be as ignorant OF it as
those in the most remote frontier districts.
In this letter, it is my intention to give
your readers brief but plain history Of
the school iund-a fund which has hereto
fore, and which, for all time TO come, ought
to be held sacred and kept inviolable.
HISTORY OF THE SCHOOL FUND.
The laws OF the United States, and Of the
State of Kansas, have provided for PEI
pe,ual or permanent school fund, which IL
is declared shall never be diminished, but
the interest OF which shall be inviolably al.
propriated for the benefit OF common schools.
The sources from which this fund should
come are the following:
First: The proceeds from the sales oi
sections 26 and Sc, in each township of pub
lie land in the Stale.
Second: The 100000 acres OF public
lands granted to the new States, under TIE
act of Congress of the 4!h OF September
lsil.
Third. The estate OF persons dying with.
out heir or will; and
Fourth. Five per cent. OF the sales OF
public land sold in this State since the &C,
| of admission into the Union.
The fund which has actually accunu
lated, has come mainly from the sales OF
sections l6 and 36, but in small part from
the estates of persons dying without heir or
| will, and from the five per cent. on the sale
of public lands. The 100000 acres granted
under the act of lS4l was, by act of the
Legislature, diverted from the common
school endowment, and was divided up ard
given to four railway companies in the
State, viz: The st. Joseph & Denver, the
Junction City branch of the NJ, K. Il I.
the L., l.. & g., and the Kansas City, For
| Scott 4 Gulf, each road getting l25, ,0Ot
| acres.
| COMMISS ONEES AND THEIR DUTIES.
The constitution provides that the STATE
Superintendent of Public Instruction, tn,
Secretary Of State, and Attorney General
shall constitute Board of Commissioner
for the management of the school fund
The law Of 1864 provides for the invest
ment of this fund in bonds of this State anC
of the United States. The law of lS6,
made it the duty Of the commissioners t.
give Kansas State bonds precedence ovel
bonds of the United States, SO long as they
could be purchased advantageously; at tn,
same time authority was given to invest il
notes secured by mortgage on real estate
within the boundaries of this State. The
act of 1872 authorized the investment in
school district bonds, as we'll as in United
States and Kansas State bonds.
In the discharge OF their duties, the Per
manent School Fund Commissioners, having
bargained for the purchase of bonds for in
vestment in the fund, draw their order
signed by the three Commissioners, or a ma
jority OF them, on the State Treasurer, who
on the presentation OF the order, take then
up, pays the money, and turns the orde
over to the State Auditor, taking his re
ceipt therefor. The bonds are, by the Com
missioners, turned over to the State Treas
urer for safe-keePins, the latter giving hi
receipt therefor to the Commissioners.
The State Treasurer, ii might be state,
here, is the custodian OF the Permanen
School Fund, as he is OF all the publ,
monies and securities belonging to tn
State. State Treasurer Lappin was re
quired 10. and gave his bond to the Stat,
for the saie-keeping OF the school funds il
the penal sum OF 81 100000 He likewIs,
gave a bond for $40 900 ior the safe-keep
ing of. all other public funds, and for TN,
faithful discharge OF his duties. 1t is thu
seen that the State regards the care an,
custody of the school funds as OF far great
er magnitude and importance than all o
the other duties and responsibilities OF III
State Treasurer.
| GROWTH OF THE FUND.
4 law was passed and went into effect j;
| 1865, authorizing the sale of school lands
and as the proceeds Of the sale of lands du
ring the year, the sum OF $50 found its wa,
into the State Treasury from A.chisoi
county, from sales made in that county. Ii
the following year, 1866, the amount re
ceived was SIG, $3.50; and during th'
year 1867, the sum total amount received
| aggregated S7U,50S.ll. Since that time tn,
yearly receipts have steadily increased
During the year 1874, the receipts amount
| ed 10 Sl32,772.7l. At the end of that yea
| Sl,0S5, 1867 was invested in bonds, leav
ing a sum of Sil, 1926 cash, uninvestet
and on hand, making a total accumulation
OF this fund amounting to 81 Ia, ,309.32.
| HOW INVESTED.
In the foregoing it will be seen how tn,
sales have gone on, and how the fund hai
accumulated. The first investment of thi
fund was in one mortgage note for S371 .56
on February !, 1866, authorized under the
| act of 1865. This mode of investmen: wa.
strenuously opposed to by Superintendent
McVicar, and this one single mortgage
note was the only one ever taken the Law
authorizing this mode OF investment being
repealed in 1865. On the Sd OF February
1866, the first investment in bonds wa:
made, that being in the purchase OF q
single Sl,tOO U. S. 80 bond. During that
year over $4,000 was invested in United
States and Kansas State bonds, and for sew.
eral years thereafter their investment was
wholly made in such securities.