The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-16

urer. The boards attorney tells US the county
| treasurer has the legal right to hold our funds
until the legal distribution is made, and that we
have the legal right to borrow money from the
county treasurer, the same from other parties.
With this decision before US, and being charged
with the duty of negotiating loans and providing
funds for the use of the schools, we, the finance
committee, had only the interest of the schools
to guide in work, and this interest we feel
we have carefully and conscientiously guarded. ,
Mr.. Bingham wanted to know if this statement
was offered by Mr. Greenstreet in justification
of the course pursued by the finance committee.
Mr.. Greenstreet replied that it was not offered
n justification. but it was more in the nature Of
an explanation, In commenting on the state
ment, Mr.. Binghsm spoke at considerable length.
THE chairman of the finance committee says
the loans that have been made thus far were
authorized" he said, ''by the following resolu-
ton of the board, adopted Ang. 81. 1885;
" The finance committee asks to be authorized by
the board to advertise for proposals for loans and to
make temporary loan for such time and amount OF
money as in their Judgment, win he required to cover
any dehcit that may during the current year,
keeping within the limits of the law
II now venture the assertion that the commit
tee, in making the temporary loans that have
been reported, have not complied with single
requirement of the resolutions. To sustain this
position l appeal to the law and the
advertised. 2. A temporary loan for such time
and amount of money as in their judgment will
be required to cover any deficit that may occur
during the current year has not been made
The committee has not kept within the
limits of its authority, by failing to comply with
the rules for the government of the committee,
in the following particulars: The finance CON-
mittee is thus limited in its action: This COM
mittee, In connection with the treasurer, shall
negotiate the permanent and temporary loans,
subject to the approval of the board The
treasurer was not consulted ia regard to making
the loans that have been made, nor were they
subject to the approval of the board.
Otherwise the members Of the com
mittee have repeatedly said that the
party or parties from whom the temporary loans
were made, and the condition of the loans must
be kept locked up in their bosoms, and hence
were not subjected to the approval of the board.
of the board governing the authority of the
finance committee was in full force, and it is yet,
and no effort has been made at any time to re-
peal or suspend it. as the rules provide. What
authority had the president of the board
to sign the bonds or obligations which were
given for the temporary loansY In the
article prescribing the duties of the presi
dent, the following appears: Sign all bonds
notes, agreements, deeds, mortgages and other
documents ordered to be executed by the
board The records of the board fail to show
that the president has been ordered to sign
execute the bonds. The finance committee claim
that its action in making the loans is sustained
by presidents. The reverse is the fact. Here
tefore the rule of the board has been complied
with in subjecting proposals for loans to the
board for its approval, and if approved, the
president has been ordered and authorized to
execute the obligations for the same.
The Board Of School Commissioners
is not, or, rather, should not attempt to be a
close corporation. An important public trust
has been con6ded to them and their security in
retaining public confidence is to let all their
proceedings and actions be as open as the sun
light. It is dangerous precedent to permit a
violation of the law, the rules and restraints to
which the board is subject. Every member of
the board has the right to know the official
actions of the other members of the board or its
committees, and any attempt at concealment
or secrecy can not fail to excite sus-
picion of evil doing or unlawful acts
The members of the board who have taken excep-
ton to the action of the committee in making
the loans have not questioned, and do not ques-
ton, the integrity of its members, their in1en
ton to do the best for the interests concerned,
but when good men disregard the restrictions
placed upon them, and the rules by which their
official acts are to be governed. it is dangerous
precedent and example to influence evil men,
and. if not corrected its tendency will be to un-
dermine public morals"
Mr. Kuhn said that the attorney upon whose
advice the committee had acted in negotiating
the loan from County Treasurer Miller is the
regularly retained attorney. of Mr. Miller, and
he doubted, therefore, if this attorney was capa-
BILE of giving unprejudiced advice to both sides.
The county treasurer is simply loaning the
School Board its own money, and charging per
cent. for the use Of it. He would like to do the
same thing himself.
Mr. Bamberger defended the course of the
finance committee. 1t had, he said, honestly
endeavored to get the money needed at the low
est possible rate of interest and he believed it
had done this. Certainly they had secured the
money at lower rate than had ever been loaned
to the board before.
CHARGES AGAINST TREASURER FRENzEr.
At this point in the discussion, Mr. Green.
street arose and presented to the board the fol-
lowing additional statement, which was already
prepared and had evidently been held in reserve
The committee on finance and auditing. in derer-
ence to the feelings of every member and de-
sire for harmony in the board has up to this
time! made no reply in defense to the severe crit
icsms which have been made, but since the
treasurer of the board has on more than one oc-
casion made complaint to the board of discour-
teous treatment by our committee in not
having been consulted in the negotiations
for loans, the committee desires to say that the
treasurer was not consulted, for the following
reasons:
"First-Iti is the treasurer's interest that large
amount of money should be placed in his hands,
while it is the interest of the schools that tie
smallest possible amount of idle money should
be in his hands, since we must borrow and pay
interest on every dollar of money we have.
Herein were conflicting interests.
"Second-Our treasurer informed us more than
once during pending negotiations that he had
seen Mr. Miller, the county treasurer, and that
we could get no money from him.
"Third-When we applied to our treasurer in
August for loan of S. 600 or $2o00 to
carry us over for few days.
he took the occasion to remark
that he had tried to get US to entertain his offer
of loan of $l00 900 east and as we had declined
it. and now found ourselves out of money, we
might extricate ourselves from the difficulty if
we could, and dismissed with the remark
that money was tightening and rates of inter
est advancing, and that we were too slow in
getting our money, and were likely to fail
altogether unless we followed his advice, to bor-
row the $4,000 at once. 1t was the persistency
with which he urged this upon us that first
caused us to doubt his loyalty to the interest of
this board and the schools
.Fourth-We were informed at the time,
and believe it true that during our
negotiations with Mr. Miller. the