Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1893-02-17
AND NOTHING CROOKED
The Committee to Investigate Alleged
Irregularities in Investment
of State School Funds,
Find Little Foundation for the CHARGE
and the Burke Administration
10 Vindicated.
Investments Found to Be 0ilt-Edee
and No Collision Between Treas
urer and Booksellers.

The State Gan Dispose of Every Sc
curity Purchased at Price Paid
and Accrued Interest.
A Thorough investigation Made.
To the Legislative Assembly, State of
North Dakota:
GENTLEMEN: The committee appointed
by his excellency, Governor Shortridge, in
accordance with concurrent resolution of
your honorable body, ITO investigate the
facts relating to the investment of all
moneys received from the sale or rental of
school lands within this state," beg leave
to submit the following report, viz: This
committee finds that the total amount of
money received from the sale of school
lands is 1871 ,SS9.75. That the funds were
first available for investment on or about
July 1, 1891.
That on the 10th day of June, the
minutes of the board of university and
school lands, show ::'e following entry;
"That the state treasurer, be, and is
hereby requested to purchase for the use
ofthe permanent school fund, bonds of
school corporations, in amount not exceed
ing $4,000 within this state, that will net
not less than 4 per cent. per annum, and to
report his purchases from time to time, to
this board; and the auditor is hereby
directed to draw his warrant in payment
of such purchases. This resolution sub
ject to repeal with thirty days notice to
the state treasurer"
That the minutes Of August 18th, 1891,
show the approval of the purchases of
school bonds Of the face value of $685. $50
from F. r. Fulton & Co., on q basis of 4 per
cent. net, with guaranty of legality of is
sue. Minutes of same meeting show the
following motion: "That we instruct the
state treasurer to invest the balance of the
permanent school fund in school district
bonds on the same condition and terms as
heretofore, with the same guaranty as to
the legality of ISSUE" Also on May 31st,
1892, we find the following:
"Be it resolved by the board of univer-
sity and school lands that the state treas
urer be. and he is hereby directed to i'll
vest the funds Of this board, available for
investment, in state bonds or in bonds of
school corporations of this state, and to
make purchases as soon as possible to
The end that the funds be drawing interest
and that he make::such investments so that
the net rate of interest shall be not less
than 4 per cent. per annum, payable semi
annually, and that he report his purchases
from time to time to this board, for ap-
proval, and that the auditor is hereby di-
rected to issue his warrants or orders in
payment of such purchases, on the proper
funds. on the presentation of vouchers,
properly approved by said treasurer" At
the same meeting it was resolved shat all
communications filed with the board in
reference to the sale of school district
bonds be referred to state treasurer"
Acting under these several resolutions
his committee finds that the state treas
urer has purchased bonds of the school
districts Of this state of face value to the
amount of $S28, 784 10, of which bonds so
purchased there has been redeemed bonds
in the sum of $500, leaving a net face
value of 1926 ,99S4. 10, upon which there has
been paid a premium of $71, 854.55.
We find that every purchase of bonds
made by the state treasurer, has been rati-
fed by the board of university and school
lands. This committee has carefully ex-
amined all the bonds in the hands of the
state treasurer, belonging to the permanent
school fund, has computed the premiums
thereon, and found the correct amount had
in all cases been paid. OF the $71, 854.55
paid as premiums, there has been SIS, 1886
and the balance, $16.125.19, has been paid
out of the permanent school fund. This
committee has also carefully examined the
coupons, and find but a very small per
centage overdue, and these are in process
of collection. After a careful examination
of the correspondence on file, this COM
mittee is of the opinion chat the board of
university and school lands has purchased
all bonds offered, with the exception Of the
normal school bonds amounting to $40
OOO.;a question having arisen as to the
legality of their issue, although there is an
opinion on file from the assistant attorney
general asserting their legality. Charges
have been made to this committee that
certain school districts, desiring to dispose
of their bonds to the board of university
and school lands, were referred by said
board to Messrs. F. r. Fulton s. Co.. instead
of purchasing bonds direct. This com
mittee has been unable to find any refer
ence of this nature, but on the contrary,
this committee finds that all correspondence
Of this nature was referred to the state
treasurer, as agent Of the board of
university and school lands and said dis
tricts were by him furnished with informa-
ton as to the proper mode of procedure.
The attention of this committee has been
called to an editorial appearing In the
North Dakota Independent, under date of
January IL, 1893, headed, school Fund
Desp0ilers." Presuming that this CON-
mittee had been created on account of said
editorial, 1t has carefully investigated the
various charges made therein. The first
charge In said editorial has been construed
that the hOarA NJ nnivaraikv and schOnl