The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-04-17
A DEFICIENCY OF FUNDS.
The School Board Financially Embar-
raised and in a Predicament.
Unable to Pay the Teachers Their Salaries and
the Schools Must Suffer from the Def
cheney in Some Way.

Another spirited meeting of the ordinarily
Commissioners was held last night. Eight of
the members were present. and in the absence
of President Merritt, Commissioner Bingham
was called upon to preside
In the opening proceedings, Mr.. Frenzel, as
treasurer, reported that he had received ST.,
400 SO as the city's school apportionment of the
Cog tax.
The committee on finance and auditing offered
resolution authorizing the president and secre-
tary of the board to sign note for $4,000,
dated April 80, 1886. payable to Hiram W. Mil
Ter June 80, 1886, to bear per cent interest,
which was adopted.
Mr. Greenstreet then, as chairman of the
finance and auditing committee. made the fol-
lowing somewhat startling report, upon the
question of paying the teachers their back pay:
'The committee on finance and auditing esti-
mate that the receipts of the board for the cur.
rent school year. ending June 80, 1886, will not
be sufficient to pay the salaries and other ex-
penses, amounting to about 1000, and as it is
now desired that the school year should not be
shortened, and as the back pay of teachers,
amounting to $4,000, will be due June It, we
recommend that the teachers be asked to credit
the board for the amount of their back pay un-
til July g. 1886, at which time we can legally
borrow the money to pay them. We, therefore.
recommend that the committee on finance and
auditing assist the secretary to prepare and send
copies OF the accompanying form to eacn
teacher.
"Under the working of the new law, enacted
February, 1885. the Board of School Commission
ers will be deprived this year OF one-half of the
amount OF revenue they have been accustomed
to receive annually from the city tax levy, and
will be thereby rendered unable to pay the
teachers the amount which will be due them
June 10, on account of back pay, until July 3,
1886. Please signify in the blank accompanying
whether or not you are willing to teach to the
end of the school year, and wait until July 3,
1886, for your back pay, and return it to the
Office at your earliest convenience" IA blank to
be signed by the teachers agreeing to continue
work on the condition stated here follows.
Mr.. Greenstreet stated that the committee
had carefully considered the question, and had
concluded that the most feasible plan to recon-
mend was the one mentioned in the report.
Mr. Bamberger said that it was, to his belief,
the best plan which could be adopted by the
board. and added, that if there were any of the
teachers who not willing to comply with
the wish of the report. they had better quit
teaching.
Mr. Frenzel, in rather vehement speech, said
that he was strongly opposed to concurrence in
the report for the reason that it would deprive
the teachers of their monthly pay until July 8.
He wondered why it was that the committee
should have wanted to deprive the teachers Of
what was due to them by their hard laborS, and
why it was that the committee willing for
the board to 60 back upon the contracts which
it had made with the teachers and not 60 back
upon the contracts made with other
persons: He mentioned the allowance
Of IN af tha mo ubera
who might just we'll have been asked
to wait for its payment, as to re-
quest the teachers to wait for the payment of
the wages due them. Mr.. Frenzel said that the
violated the laws of the board in negotiating
loans. They had been guilty of gross mis-
management, and he had confidence what
ever in what they might do or say. The com
mittee had not performed its duties as it should.
He was sure that they could have obtained
loans as a matter of charity if upon no other
consideration, from persons in the city,
If they had applied for them,
to make up the amount of deficit caused by the
passage of the new law. He, for one would be
willing to loan the board $40, 900 for that pur-
pose
Mr. Greenstreet asked Mr.. Frenzel what rate
of interest he would charge upon the loan, and
was told that it was none of his business at that
time, but If the board made application for the
loan they would easily find out.
Mr. Bamberger said that he was willing for
Mr.. Frenzel to be friend of the teacher, but
he was not willing that he should be such at the
expense of the finance and auditing committee.
1t was mistake of Mr.. Frenzels that he con-
sidered the committee responsible for all the
financial transactions of the board.
Mr. Conner said he thought some definite and
prompt action should be. taken upon the matter,
but that it could hardly be done at this time
until meeting early in next week, to be
called by the president of the board. The mo-
ton was adcpted%
Mr.. Greenstreet then read another report of
the financial condition of the board which also
elected some unfavorable comment from Mr..
FrenzeL The report was as follows:
The committee on finance and auditing report
the condition of the boards finances at the close
of the current school year, ending June 80, 1886,
and estimates of receipts and expenditures for
the following year. ending June 80, 1887. The
Indebtedness will be: Permanent loan, payable
at Salem, Mass, $4,000 note in favor of Mrs
Sproule for schoo. property No. 3. $38, 808 96;
Total Indebtedness, July, 1885, sSoe' sos. IS
The 100000 payable at Salem, Mass,
is our permanent loan, and covers
the maximum amount of such loan
as fixed by law. The $40, 900 is debt due Mrs.
fore, is considered neither permanent nor tenn
porary loan. This note will not become due un-
til 1890 The $3S, 500. 90 building notes were is
sued in 1884 IS for the material use in the cree
ZION OF tho TWO school buildings and the
annex to No. 6, and will become due July l,
1886, and unless the holders of these notes will
extend the time of payment, they must be paid
at the time of maturity In their present condi-
tion they are considered as a debt the same as
the 900 note to Mrs. Sproule, but if they
are paid, the debt created in paying
them becomes temporary loan. If we pay
these building notes at maturity and borrow the
$500 with which to pay the balance of this
years salaries, we will begin the next school
year, July l, 1886, with temporary loan of $67,-
600. This unfortunate state of our finances is
brought about by the provisions of the new law,
known as the Winter bill. under which the taxes
are payable one-half in April and one-half in No
vember and for which the county treasurer set
ties with US in January and June. Under
treasurer was required to settle with
US monthly. Our school year closes June 80.
and the effect of the present law is to perma-