The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-22
TIE SCHOOL BOARDS LOAN.
A Statement from Mr.. Greenstreet Regarding
the Negotiations for the Loan.

1t was learned yesterday that negotiations for
money begun by the finance committee of the
School Commissioners had come to naught.
Whether the publication detailing the differ
ences between the committee and the treasurer
had anything to do with it or not is not claimed,
but it is very probable that the money
expected from the State and county
treasurers will not be Forthcoming. The county
is already borrower of money for
its own expenses and it is claimed any arrange
ments with the State Treasurer would not solve
the difficulty so far as the supply of the pro-
posed loan in installments is concerned, since
the committee might want supply when the
State would have to 60 on the market for it and
pay higher price than it would get under the
agreement with the committee.
Mr.. Greenstreet was Intercepted by re-
porter yesterday in relation to the difficulty. He
said:
1.-THE statements published do not give all the
facts of the financial affairs of the School Board,
which are as follows: To meet current expenses
the board must make a temporary loan, antici-
pating receipts from the county and city treas
urers We estimate receipts from these sources
to be as follows: In January. $3.50 in June,
$l24, 900. Before receipt of these amounts, the
expenditures will probably amount to 500. 600.
This amount will be required in sums of
about $40, 1000 per month. The france
committee did not deem it good fnan-
cering to borrow pay interest and
carry large amount of money for which it
had no immediate use. Mr. Frenzel, the
treasurer, seemed to think a loan of 500 0O0 TO
run to June, 1886, should be made at once, and
insisted that it should be made on his prop
osition. without delay, and at the same time
lectured us sharply for our Interpretation of the
necessity for immediate action in the matter.
He said he could make the loan at 81 per cent.
If we would furnish legal opinion to accom-
pany the bonds. The committee suggested that
possibly some arrangement could be made by
which the money could be obtained in smaller
sums, as needed, and thus reduce the cost of in
terest. but Mr.. Frenzel said that such an
arrangement could not be made, and it was
folly to depend on it. The committee
it was the persistensy with which MIR.
Frenzel urged his plan upon the committee to
raise the 800, 900 that led US to believe that the
interest of Mr. Frenzel, as treasurer, and the in
terest of the School Board were not Identical,
and it was principally from this cause that the
treasurer was not asked to be party to the ne
gotiatons that followed and which resulted in
arranging for the money in such amounts and
for such length Of time as may be required to
meet current expenses, at 5 per cent interest
per annum. BY this arrangement we estimate
the interest on loans will be So, $780, The inter
est on Mr.. FrenZels plan including 800 for
the required legal opinion, would be 1858,
from which it is seen the finance committee,
acting as a committee in spirit as well as
name, has saved to the school fund 81. 1913 in in
terest. When Mr.. Frenzel so dramatically said
to the committee: You do not dare to tell
whore you got the money. and you know it, he
knew the committee had been asked by the party
with whom the contract was made to keep the
facts nearly as possible within the finance
committee as the party did not want his financial
affairs known to all. 1t may be further said, in
this connection, that at regular meeting of the
School Board, held on Aug. 81, the finance com
mittee were authorized by special resolution to
make such loans as might be required and as
Mr. Frenzel is not a member of the finance COM
mittee, he could not expect to be consulted"