Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1893-02-16
SCHOOL FUND MONEY.


The Report of the Investigating
Committee Completed.
The committee appointed by Gov.
Shortridge to investigate the facts re-
lating to the investment of all moneys
| received from the sale or rental OF school
lands within this state, has submitted its
report. The committee finds that the
total amount Of money received from the
sale of school lands is 1871 ,389.75. That
the funds were first available for invest
ment on or about July l, 1891. On the
10th Of June, 1891, the treasurer OF the
state was ordered to purchase for the
permanent school fund, bonds OF school
corporations not to exceed $4,000, with
in the state, the securities to net the
state not less than per cent per year.
| By August Is, OF that year. purchases of
school bonds from F. r. Fulton & Co.,
Grand Forks, amounting to $66, $50 had
been made, with the per cent guaranty.
BY various resolutions of the board of
school lands other sums were ordered
invested in the same way and school
district bonds to the amount of $685.
9S4.lO have accordingly been purchased
and upon which there has been paid a
premium of s71 ,854.55. OF this amount
paid as premiums which is very large
and which has been the subject of the
most criticism there has been $50, ,72936
paid out of the interest and income fund,
and the balance, SIG, 10, has been
paid out of the permanent school fund.
The committee find that the charge
that the board of university and school
lands, after collecting the interest upon
the bonds purchased from F. r. Fulton
& Co., paid over to said +. r. Fulton &
Co. all interest collected on said bonds
over and above per cent lis not
true, as the state retains
the entire amount of interest so received
the bonds having been purchased by said
board of university and school lands 80
as to net the state per cent per annum
on the entire amount invested; that Is to
say, the face value of bonds with the
premium paid, added thereto the entire
amount of bonds purchased from said
Fulton & Co. is S204.7OO; premium
thereon paid to said Fulton 4 Co. is s51.-
$685."
The commute find that the bonds we're
purchased from districts within the state
aud exclusively from Fulton l. Go. Also
that Fulton & Go. paid heavy premiums
on s116,90O OF bonds to eastern holders
based on the eastern rates OF interest
this applying to all bonds dated prior to
June IL. 1891, and after that date bonds
bought by Fulton & Co. for sale to the
state we're at premiums ranging as high
as Is per cent.
The amount OF excessive clerk
hire which the board allowed is
admitted and seems large, but whether it
could have been done with less help the
committee does not pretend to know.
Deputy State Superintendent Cathro
received 96OO in addition to his regular
salary of $500. Gov. Burke, president
of the board, also claimed $1,000
had been paid out Of his own pocket for
clerk hire over the amount allowed by
law for the executive office. He was
allowed 500 by the school board OF
which $3.50 he considered a proper por-
portion on the school land boards work
IRREGULARITIES.
The committee says that funds have
been improperly used to defray the ex-
penses of selecting lands, advertising,
ETC., such sums having been taken from
the interest and income fund. us no other
funds we're available. A recommends
ton that the legislature reimburse this
fund is made.
Also a large proportion of the
sums paid for premiums was taken
without authority from the in
tereet and income tax. The report says
"The amounts so paid should be
charged as part OF the investment to the
permanent school fund and credited TO
the interest and income fund, and as the
interest falls due and is paid q proper
tionate amount sufficient TO llquidate the
premiums paid should be credited to the
permanent school fund, 20 that when the
bonds become due the amounts 60 cred.
tied will equal the premiums paid at
dates Of purchase"
The committee justifies the board in
investing in the bonds above referred %
rather than letting the money remain idle
and says that no evidence of collusion
between the board and Fulton 4 Co. was
I ko,,msl