Waterbury evening Democrat., 1894-12-22
OLNEY'S REPORT.
Attributes the school Fund Losses I
the Hard T mes.

Attributes the school Fund Losses to
the Hard mes.
School Commissioner Olney has pre-
scented his report to Governor Morris for
the two fiscal years ending September 80,
1894. He says:
The securities held by the school fund
department are, as a whole, in a sound and
healthy condition. but have felt more or
less the effect of the general depression in
financial matters throughout the country.
and conse quently in some instances values
have been impaired and foreclosure pro-
csedings instituted. though it's believed
that ultimately no losses will be realized
through them. but on the contrary an ill.,
crease in the aggregate in future value.
The amount OF unpaid interest on the
30th day OF June. 1894. was sl6,S76 Is.
which is being reduced by voluntary pay
ments and urgent requirements. OF the
above amount, So. 50O.52 has since been
paid. The largest proportion of over due
interest is on loans made in this state.
The net gain to the principal of the
school fund at the close of the fiscal year
ending September 80, 1898, was 81. 279.S7.
The net loss for the year ending Septem-
Der 50, 1891. is y, 6SS.l3 Among the
losses for this year is the sum of 81. 900 Al
arising from the sale of the so called Mum
van lot, which has been held for nearly
twenty years.
In my first official report to the general
assembly, January 4, 1882. l stated the
amount loaned on real estate, foreclosed
and now belonging to the state, to be
s2U2 COZ SO. and was from loans made
prior to July / 1881. l also stated that
careful appraisal of the real estate so
taken had been made. which showed a de-
probation on the cost Gncluding accrued
interest and expensesl OF S95. 667.96.
The net amount of losses on real estate
sold during my official term. to the close
of the fiscal year ending September 80,
1894, has been SO, 1890.
The real estate now actually held is
yielding an average revenue of over per
cent per annum.
In July, 1898, one L. L. Gum of Lima.
o, who had. the agent for the appli-
cants and borrowers, solicited loans from
the school fund in Allen county, Ohio,
and vicinity. unexpectedly disappeared
and left for parts unknown. leaving some
of his clients who had obtained loans from
the school fund through him IN a condi-
ton which involved losses. Three or
four of those parties have resisted pay
ment of their dues, which has caused liti-
cation, but of the amount involved there
will probably be comparatively light losses
to the school fund. One case of forged
and fraudulent papers will involve SIS. 600.
aud two other cases OF fraudulent certi6-
Gates of title with an aggregate of a less
amount. A small loss from collection of
interest by Gum may be realized. In
Defiance county few complicated mat
tiers. for which this department is not at
fault are being legally Investigated. and
but for the always uncertain results from
suits at law. should be confident of no
loss.
1t is in that county that some fore
closures have been had because of delin-
quent interest. owing to short crops and
the financial depression. but from investi-
cations and general Information, l am we'll
satisfied that there will be in the end an
aggregate gain derived from these securi-
ties. The loans made in Ohio are, as n
rule. on excellent security. paying not less
than six per cent annual interest, in semi
annual payments.