The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-06-15
THE SCHOOL BOARD ISSUE
PRESIDENT JORDAN PROTESTS
AGAINST JUMPING THE AMOUNT.
Other Members of the Board Of Educa-
ton Discuss the Matter Freely, Lay
ing Down Their Reasons for Changing
Former Conclusion.

Board OF Education, is ''agln" the issue Of
$1,000 school bonds in lump.
He has so expressed himself, in COM
munication to the School Board, which is
here appended:
81 request the Secretary to record my
vote against the motion to adopt the min
utes Of June A. for the following reasons:
Il. Because the said minutes >lcord the
action OF formermembers of the Board and
reN lived the action the Board had on that
subject, in the presence OF full member
ship OF the Board, after full discussion Of
the matter and no satisfactory reason given
Tor change OF the plan adopted originally
by the board, when all Of the members
were present.
'2. Because 1t appoints an agent to do
that which the Board itself should do as n
Board, or through lis officers, and is itself
reflection on the capacity OF the Board as
body, and its officers, and especially is
this true OF Mr.. Samuel ii. Dunscomb,
who is banker and treasurer OF the Board
OF Education oil the Memphis city schools.
70. Because 1t authorizes the sale Of
500, 200 OF bonds, when, as master OF
fact, the proceeds OF the bonds cannot. as
whole, be Immediately applied to tine
purposes for which the Board are author
iAcb Wy NhS dIt VI 10
said bonds, and in this particular the said
resolution is illegal and not binding on the
.. officers required by law TO sign said bonds.
"a. Because itauthorizes the said agents,
the German and Manhattan Banks, to
take the proceeds OF said bonds and place
all surplus, other than that that cannot be
Immediately applied, on deposit in New
York, or elsewhere outside OF tho State.
without security.
This is illegal. The law requires the
proceeds OF said bonds, like all other
school funds, to go direct into the hands
OF the treasurer OF the board, and any other
issue Of said bonds will be conversion of
the same, and will not sanction by my
vote any such unlawful act"
Bearing this protest an APPEAL reporter
called at the Office Of the School Board
yesterday afternoon. He found there
Messrs 5. j. Camp and James Degnan, of
the Board. and Superintendent g. ii. Col
ller All these gentlemen were aware OF
the protest against the contemplated pro-
ceedlng, had also heard the reports that
President Jordan intended restraining
them, by legal process, from carrying il
out, and had no objection to talking.
They repudiated the reports OF strained
relations between the Board members, on
any question. The policy against which
Mr.. Jordan interposed his negative vote
was unanimously adopted during the alb
sence OF Mr.. Jordan, and in consequence
OF mature deliberation OF tho whole
project. The Directing member merely
did what he would had he been at the
meeting, voted against IL, and, perhaps,
no i'll feeling would have been engendercd,
nor was there any over the course il had
taken.
'It's nothing bu! jealousy Of r. Dudley
Frayser," said Supt. Collier, growing out
OF the designation Of the German and Man.
haitian Banks as agents for the sale Of the
bonds, instead OF bis. Those banks, You
know, MIR. MADDEN IL interested in. That's
the secret"
That's my conclusion" said Mr.. Deg.
nan, from what Col. Frayser said TO me.
He remarked that il looked 10 him like
there was n trick in il, the Board playing
2into the hands OF MADDEN. | don't see
where his idea OF q trick comes in, though;
there isn't cent in the agency for any
one. But, taking another view OF 1t, be.
lieve the German Bank was entitled 10 H.
When the proposition was first made
about three years ago, | consulted with
the bankers here. Everyone OF them was
opposed 10 issuing bonds except the lac
Edward Goldsmith lie assured me that
II the bonds were issued the German Bank
D would floa, every one OF them for US. Mr..
Goldsmith was the acknowledged oracle
or all securities, and his sanction and en-
couragement was worth great deal
ut was, among other things, 10 remove
all liability Of the Board 10 the charge OF
trickery that We did not designate the
Bank Of Commerce rs agent, said Ne
Camp. "Our treasurer, Mr.. Dunscomb,
H. IL af..N A. u.
tons are most cordial, but We didn't want
any part Of the School Board mixed up
with tho money part OF tile transaction.
The other incentives TO the action by
which II was resolved TO issue all the bonds
at once were these: From our view OF the
case IL was far better 10 begin the erection
OF all the four proposed buildings at once,
complete them at once, or as nearly to-
gether rs practicable, and cut of our en-.
tire rentals, amounting 10 about 8, 500 per
year. do not believe anyone will dis
pute this proposition. Now, when We
contract for these iouHbuildings, involving,
say, $4,000 or $4,000, that money is APP
propriated, and business rules would
suggest that IL must be on hand,
subject 10 demand. For 80 much OF
the entire sum rs Is not disposed OF, We
get per cent interest, with all the secu-
4 lily desired. Inc cnnDlng act docs sup
4 ulatc that the bonds are to be issued only
rs needed, and Judge Walker. Gen.
Wright, Mr.. II. q. Warmer and other
legal gentlemen take the same view Of
when Il Is needed that we do, viz: when
II is approx rated under contract for new
buildings. There Is also another consid.
Grafton: Mr.. JoFdan thought $4,000
should be issued in July, the remaining
$4,000 in December. Ills idea was 20
save tho interest. lie further says the
board should act as agent for their sale.
Our view OF the former idea is, that money
being easier in the summer than in the
winter and business season, the bonds
would draw a better premium. We arc
reasonably certain they will sell for l0i.
In January we might strike a stringent
and bad market. Unless all the money
were ject 10 demand, tho Board
was acting rs agent and the demand
under contract came in, then we would, |
suppose, have TO take n few bonds, 70 out
into the mark\r and do tho best We could.
il isn't difficult 10 foreseo how this might
work. am, therefore, clearly OF the
opinion still that We took the wisest
course"
Mr.. NJ. L. Beers, the Chicago architect
who plannsl tho Linden Street School
building, Sin tho city, inspecting the
work OF the contractors aud builders. lilo
.~...a..l It..a.If vtaftnaH Nth gha snnrL