St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-13
A STRENUOUS KICK.
The Board of Education Making
One.

The Board of Education Making
One.
eThe members of the board of eiuca-
ton are an angry set of men, the cause
for which disturbed feeling lies with
the recent action of the board of county
commissioners In regard to the DISPOSE
ton of the sinking fund so-called,
which the board of the county has the
handling of.
The commissioners passed a resou-
ton Tuesday by which this sinking
fund, amounting to 81, 400, was loaned
to the Irlsh-American bank at per
cent interest At the time the action
was taken nothing was thought of the
matter, as the bank gave good bonds in
double the amount, and the resolution
went through without dissenting
voice, even MIR. Dwyer, who is forever
on the lookout for a woodchuck, evil
IDENTIFY being satisfied with the measure.
The board of education, however,
makes strenuous kick, and condemns
the commissioners in unmeasured
terms. 1t appears that the board has
made elaborate arrangements for some
new school buildings to he erected the
present year, and in order to secure
payment for the work 1t was necessary
to make provision for some funds. Last
year money was procured from the
county at So per cent rate of interest.
This year it was thought best to make
arrangements again, and overtures were
made to the county board for the loan OF
this sinking fund. One of the members
of the school board claims that he spoke
with member of the county board
about the matter, and it was agreed that
the school board should have the money
at the same rate as last year.
In the face of this promise the school
board feels more than hurt at the action
of the county board in loaning the
money to the bank. and is making quite
loud talk about the matter. 1t is
claimed that the board depended upon
the money to help in building the
needed schools, and now they are all at
sea Oh the financial question. 1t is also
asserted that the county has lost of
per cent per year on the loan by not
leaning the money for school purposes
1t is likewise asserted by the school
board that one of the commissioners is
a director of the bank in question.
which, they say, accounts for the easy
manner in which the school board was
given the worst o. it.
The board of education may have
been placed in an awkard position by
the action of the county commissioners,
but. according to M. w. Nash, the lat
ter had no other course to pursue. The
law under which the sinking fund of
the court house is raised specially pro-
vides that the money shall not be
loaned, but that it may be invested in
any bank in Minneapolis. NJ. w. Nash,
speaking to the GLOBE, said:
''he court house act provides that l
Percent shall be raised annually by
taxation to create fund to pay off tile
court house bonds ON their maturity.
This is what they call the county sink
ing fund. 1t cannot be loaned to any
one in the sense we use the word loan.
1t should never have been loaned to the
school board, but it may be be invested
in state and city bonds or temporarily
invested in any bank in Minneapolis on
certificate of deposit bearing interest.
The fund was, therefore. OH the motion
of Mr.. Egan, deposited by the commits
sioners in the Irish-American bank.
That bank offered per cent interest,
which is = per cent more than was
given by the school board. They also
furnished bond over double the aIneAAt
deposited"