The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-01-22
The school Runa-A Timely InquiIy.

10 the condition OF the School Funo-the
so.called irreducibls School Fund OF the
State. We regard this resolution as al
t,gether timely, considering the facts that
seem to exist In regard to the manner In
which this fund ia being used.
The theory Of the School Fund is that
It constitutes sacred and inviolable
flpd for the exclusive benefit Of the sdu'
cltional interests Of the State. The inten'
ton in setting apart such fund was that
It should never DO diverted in any way 10
any purpose outside Of It's distinctive
scope aud character, 1t was 10 be pei
manent interest bearing fund, the usu'
tract OF which should annually inure 10
the schools OF the State, In other words,
the dividends and interest acCruing from
It's investments should be distributed
every year along with the school tax 10
tho various counties for the sustenRnCe
and fostering OF their schools, and the
principal should not be lnIringOd upon tor
any purpose Whatever
The question involved in Mr.. Watson's
resolution OF inquiry Ia, has this theory In
regard 10 the School Fund been carried
outP Has 1t been so invested as to pro-
duce a certain annual return for the use
and benefit OF the schools, and for that
purpose alone?
Page slxty.fve OF the Auditors report,
Just issued for 1870 80, shows that the "in'
vested school fund" OF the State amountH
to $i23,9SS So. II further shows that $780,
900 OF II is invested in the stock OF three
banks in the State, viz: $4,000 in the First
National Of Fairmont, $4,000 in the
P4rkersburg National, and $50, 900 in the
National Bank OF West Virginia, at Wheel
Ing, 1t also shows that $37 900 OF 1t Is In
vested in "U. S, registered Central Pacific
Railroad bonds" $4,000 in ~. 8. regis
tered Union Pacific Railroad bonds"
"$lS,5OO in ~. S. registered $40 bonds"
$i5,SOO 10 Certificates Of U. s, stock
5.9OS," and lastly that $l27,5l 4S has been
borrowed from the fund by the State Of
West Virginia.
The schedule referred 10 shows that
$1,000 was borrowed on the Goth OF 0Cto.
Der, 1873, the amount being specified as
an investment 10 the bonds Of the State
Of West Virginia" IuaSmuCh as III we'll
known that there are no bonds Of the
State Of West Virginia in exlstenCe, this
item simply means that the School Fund
holds tho promissory note Of West Vir'
ginia Tor that amount. And q like char
acter Is the item oil s35 900, borrowed Au.
gus. 10, 1870, aud $ll 900 borrowed Sep.
TENDER %, 1875, and $l6,54l IS borrowed
June 10, 1877,
Then comes the item Of $4,000 as q
Temporary loan to Slate for Hospital for
Insane"
This last item is made up OF several
amounts discussed to the Insane Hospital
in 1870 SO-viz: Sc. 900 In April 1876, $50 900
in May Of that year, $4,000 more in July,
$4,000 In August, 5000 in September,
aud $1,000 in June, 1880.
These state items amount in the aggre.
gale, az we have said, to $l27,6ll As.
We do not understand that they are
producing or have produced single dol.
lar OF interest to the school fund, but on
the contrary that the interest which they
would have produced, had they been In.
vested In accordance with the theory Of
the fund, OF Ia accordance with the wish,
expectations and intentions Of the people
OF the State, has been lost to the schools.
They represent amounts, as we Under
stand II, which have been diverted from
the fund into other channels, mainly, II
we are not mistaken, to bridge over tenn.
porary deficits Ia the revenues Of the
State, and to enable 1t to meet appropria.
tons made in other directions, for which
there was no money 10 the Treasury.
BY referring 10 the act Of February Goth,
1870, making an appropriation for the
further construction Of the West Virginia
Hospital for the Insane" II will be seen
that the second section provided that
''should there be- q deficit In the revenue
sothat the appropriation herein made can.
not be paid as required, 1t shall be lawful
for the Auditor 10 borrow Of the School
Fund that may at the time be uninvested
such sum as may he necessary TO supply
the deficit, and without any specific ap.
preparation therefor he shall pay to the
School Fund interest al elk per cent per
annum on any sum he may so borrow.
He shall also in like manner pay out
Of any moneys which may 1t be other.
wise appropriated, the whole, or from
time to time any part, Of the sum be may
so borrow as he may deem proper and
consistent with the public interest"
1t will be seen by this quotation that
the payment Of interest and also install.
ments Of the principal are contemplated
by the act Of 1879, but II seems by actual
inquiry al the Auditot's Office that neither
interest nor principal have been paid on
these loans. This fact is also shown by
the amounts received from the invested
fund as credited in the Auditors report
The school fund being 1923 ,9SS IS, II shonld
produce at SIX per cent, s25, 4S9 SO, Some
Of Is invested In bank stocks that pro.
duce more than elk per cent, bat counting
IL all at six per cent II should produce
about S95, 800. Instead Of this, however,
we find only the following credits
for the fiscal year Of 1880, viz.
50 800 from the stocks and $500
from the bonds belonging to the
iund-making a total Of $500, or
only about ihtsehIthS Of the amount that
the fund should produce at six per cent