The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-20
SCHOOL BOARD FINANCES.
Mr.. Frenzel Displeased at the Finance
Committees Disregard of Rules.
A Disagreement Between Members Of the
Board and It's Treasurer-The Neces-
sity fer Making Loan.

There has been a disagreement between the
finance committee Of the Board of School Com
hissioners and their treasurer. Perhaps 1t stiH
exists but evidence obtainable yesterday Shoes
that the friction caused by difference * opinion,
in regard to loan that is to be made for school
purposes, has been alayed. To give an accurate
citing forth Of how the disagreement occurred,
il is not out of place to review the resources of
the board.
The county collects twelve cents on the hun
dred dollars as State school tax. This tax is
drawn back on basis of the number Of children
In each township. When the distribution is
made by the county auditor, it is at the
gate Of $142 per child OF the Marion
county collection on the State school tax
Center township paid in $S5, 2l3. 76 and on the
basis of 40 2S6 school children in the city. under
the last June distribution, DR.. Carey. the treas
rscr of the Board, drew ST., 206.12. In addition
to this. he got $10,869.16 of the $4,000 liquor
licenses. Also at this time there was an Incl
dental addition to the fund Of 1928. SO on judg-
ment which the Attorney general procured
against the county on the ground that school
officers who drew fees out of tho
State school fund had violated the law
There was also $118 16 derived from the con-
gressional school tax, making in all paid to the
treasurer of the board, under the last distribu-
ton, 500, 1928. In the coming January distri
button the board will get from the State school
tax about $4,000 and SIS, 1856 81 from liquor
licenses, in all So. 735, yielding for the year
from these two sources, $l26,856 Aside from
this is the revenue derived from the city tax es-
pecially for school purposes, viz, 20 cents on
the hundred and two cents additional for the
library. This is levied upon a valuation of $780,
COG, 600. yielding in 1884 STA 900 in round NUN
bers. This year $116.60 is expected part Of
which has already been distributed to the board
by the city treasurer, the total revenue being
an average yearly $243. 400.
It is claimed that it became necessary to put
up new buildings within the past few years,
among which were the two for the high schools
and one or two for the district schools This
was at an expense of $50, 600, one half of which
member of the financial committee says had
to be secured on the credit of
the board But it was necessary to
incur partly for building and partly for current
expenses another indebtedness of 800 00O which
ia represented by bonds to be paid in three years
at 5 per cent interest, thus making the total in
debtedness Of the board $lS0,000 Recently
the need of money in anticipation of
interest, portion OF the principal pal
finance committee. Under the most favorable
conditions of borrowing, it was said by mem
Der of the committee yesterday, that 1000 of
the debt represented by notes would have to be
renewed, but with the exception of this and the
bonded Indebtedness, it was expected to pay out
by securing loan.
Whether to get this money on loan or antici
pate the coming January distribution, or if a
loan how and where it should be negotiated, the
committee considered in manner to bring about
the disagreement with the treasurer. There is
o rule of the board governing temporary loans
that none shall be made without consulting
the boards treasurer. Some days ago
the finance committee went to County Treasurer
Miller and asked il the boards share of the
State school tax could be anticipated. This was
done by Messrs. Greenstrect, Hamburger and
Vonnegut of the committee. They said they
desired to have the transaction at home
II appears this step was taken with
out the knowledge Of Mr.. Frenzsl
Treasurer Miller told them that rs the county
had to borrow money for its own uses he did not
see how the school tax could be paid them in ad-
vance. He said, however, if he could find a
way to accommodate them he would do so. This
source for obtaining money being in
all probability closed, negotiations for
. temporary loan Of $50, 600. the amount
tion, were begun in another direction. 1t does
not appear that the matter has been fully con-
summated, but enough is know to establish the
fact that the committeeman, through ignorance,
u
transacted the business without consulting the
boards present treasurer, Mr. j. p. Frenzel.
Before giving the interview with Mr.. Vonne-
gut, It comes in course to state that the board,
to meet all tee requirements of the year.
in addition to the regular revenue viii
need about 100000 That is represent
ed as the dencit caused by building
and other extraordinary expenses outside
of the current ones. Mr.. Vonnegut
when approached by Journal reporter, yester-
Law NJ "a
about the matter, "as it will perhaps interfere
with the negotiations we expect to complete next
Tuesday"
What amount do you intend to borrowY"
Thirty thousand dollars will satisfy immedi-
ate wants, but we expect to arrange for further
loans as we need them"
do you have any objections TO state how and
where this money is to be borrowedl"
''Yes. 1t would do no good, and undoubtedly
lead to breaking UP our plan"
when this matter of the loan was consid-
cred at the meeting of the board as a committee
Of the whole on Friday night, Immediately after
the regular session adjourned, were not some
hot words passed between a member or mem
bers of the committee and Treasurer Frenzelw
There was no serious disagreement and do
not care to talk about it. Mr.. Frenzel, think.
is now satisfied with the course of the committee
Some things had been said outside which have
no doubt been magnifed. To tell you the real
cause of the deficit which we are try
ing to meet the extra expenses absolutely
necessary for new buildings must be considered
To pay the current expenses Of the schools and
the indebtedness thus incurred the 20 cent levy
on our city valuation of $50 600 600 is not suf-
fcient. Legislation should be had to increase it.
The total levy, of course is % cents,
but cents Of this goes to the
library fund exclusively. We cannot go
beyond this limit Indeed it was tried to cut
us down to 10 cent limit, and there is a Su-
preme Court decision years ago which says that
the school revenue should be restricted to the
IL cents State tax. But. after this. legislation
overcame the present want of the city schools.
One time the levy was high as As cents"
You do not desire then to give the fullness of
Friday nights meetings"
mo, think 1t is best not to say anything
about it. and wish that you would not refer to
it. 1t will dono good, and, very probably inter
fere with what is going to be done assure
you that Mr. Frenzel agrees with the committee,
and that there was no serious difficulty"