The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-12-26

trai1itr -L -4.ll As-"NA 'Ar ave- =
receipts during the year, 5000
/ l+|.,-l.
Total S26-75iI5S.
/ Disbursements during tae year. s.
. 5a4 l5G15.
Gap-e On h4la August 81 1895,
s.ag 1888 ..-
N- dc rTs- DON OF September. 1895.
.r.- -gg..4 SJ4I, $685. OF school
fund apportioned for the scholastic year
of 1916. This appOrtionment was
made in 1884, and as above demonstrate
ed. largely exceeded the receipts.
The available school fund is derived
from interest on State. county and ran,
road bond investments, interest on land
sales and school lands leased. ad valorem
tax leiveS. one-fourth of all occupation
taxes and one dollar poll tax.
On July 6, 1898, as required by law
ated from a portion of the territory EN-
braced within the boundaries of Preside
county. The act creating these
counties provides that each should
| bear It's pro rata share OF
the Indebtedness of Preside county le-
gally incurred prior to their creation.
Under chapter SO. act of 1891, the comp
troller apportioned these % bonds TO the
counties of Preside. Brewster. Buchel,
Foley and jeff Davis. on the basis pro-
! vided by law. tSee Sec. ,, Chap. IL,
laws of 1889 as follows:
| To Preside county. S9O26.69.
! To Brewster county, S6i96.l9.
To Buchel county, S4I63.I4.
| To Foley county. S2961O1.
| To Jeff Davis county, SjSJ2.3i.
Total. $29000.00.
The county of Preside has promptly
paid the interest due each year on the
amount apportioned TO it. The counties
of Brewster and JEFF Davis have never
paid any interest on their pro rata
share. and are organized counties;
Buchel and Foley are unOrganlZed. and
under the law. it became the duty of the
property in those two counties owned by
non-residents.
Under section >, laws of 1891. the rec
ords of this office show that the comp
troler has since then, annually assessed
and collected from nOn-reSldents, a tax
to pay the interest on the pro rata part
of said debt due by each of said coun-
ties.
The records of this Office further show
that there has been so collected and de-
posted in the State treasury to the credit
of the county issuing same. and when
ever opportunity offers to dispose of fund
ing bonds at premium it is quite natural
that they should avail themselves of the
same and redeem the bonds held by the
school fund. Consequently the amount OF
bonds held by said fund is decreasing in
stead of increasing.
By reference to table No. 3 for the his
cal year ending August 81, 1893, it will
be observed that only S130, $50 county
bonds were purchased by the school fund,
while during the same period S3l9. IDS
in bonds were redeemed, and Sl,O0S,-
65700 registered.
Now that these securities are in such
demand, counties issuing bonds to any
considerable amount generally advertise
for sealed bids for purchase, and the con-
sequence is that the bonds are contract
ed to outside parties before being pre-
scented for registration. These securities
should by all means be kept at home, and
the school fund should be invested in
them whenever there is money in the
State treasury that can be used in their
purchase. And especially is this true
while there is no other avenue provided
by law for the investment of said funds.
The following counties have defaulted
in the payment of their annual interest,
viz: Brewster Buchel, Foley, Jeff Day
is, King. Mitchell and Runnels.
The King county bonds aggregate
S950000, bear 8 per cent interest and
were purchased on the 9th day of June,
1893. No interest has ever been paid.
Mitchell county bonds bear I per cent
interest, aggregate 100000. and were
purchased in 1889. Interest for 1894 and
1895 unpaid.
interest, aggregate 81. 10000, purchased
February 18th, 1889. No payment of
interest since April 10, 1892.
The following statement is given in re-
gard to the Buchel and Foley county
bonds: On March 6, 1886. the records
of this office show that court house bonds
of Preside county to the amount of
$29,00000. issued under the act of Feb
ruary II, 1881. were purchased as an in
vestment for permanent school fund. In
the year 1887 the counties of Brewster,
Buchel, Foley and Jeff Davis were Gre
S130, S3TUU.
Total, $7.S9S, G67 10.
Bonds redeemed during the past year.
1919. 522.5S.
Balance on hand August 81, 1895, ST.
so, 144.52
| desire to call the attention of your
eXcellency to the condition of this fund.
Under the law the investment of said
fund is confined to the purchase of bonds
of the United States. the State of Texas
or the counties of this State. The law
further provides that not more than par
shall be paid for any county bonds so
purchased, nor shall funds be invested in
any county bonds bearing a lower rate of
interest than five per cent
Under the law approved April 20, 1895,
all county bonds issued subsequent to
said date are required to be examined
and approved by the attorney general,
and registered in this office. The passage
of said law has created quite a demand
for this class of securities from outside
capital, and quite number of counties
that had issued bonds under former laws.
redeemabe at the pleasure of the county,
have issued funding bonds bearing a low
er rate of interest running from 80 to 40
years, redeemable at the option of the
county in not less than FIVE, and in many
instances not less than ten years from
date, and these bonds have found a ready
sale at Il premium ranging from 1-2 to
IL per cent.
BY reference to the report of my prede-
cessor for the fiscal year ending August
81, 1894, it will be observed that the
school fund had invested in county bonds
the sum of S3.S51 ,913.10. upon which the
annual interest amounted to S237. 112.04.
Of the amount so invested S3,531 .6SS. 10
were 6 per cent, S40,725.00 were per
cent bonds, and $279,50000 were s per
cent bonds. \ large number of these
bonds were issued prior to the act of
1913, and are rcdeemable at the pleasure
an estimate of available school fund re-
ceipts for the year ending August. 1896.
was furnished the board of education by
this department as follows: