The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-25

Ias
Al low valuation the district now
owns buildings worth So. GA and land
worth $-37tso, white it has sh on hand
sSo'oH. which. under the new law, is only
available Tor paying current expenses
ana interest on bonded debt This makes
ths total assets <752es and the total
aeoi, Including interest on warrant debt.
IS @oout S'Ss,eo. so that assets and la
oiIitlcs are about equal The cash on
mana Is now being drawn upon to pay
teachers salaries and other expenses. and
Win the taxes due Ola the present levy
VIII, y Is estimated, be sufficient TO run
fhe schools on a cash basis untll next
years taxes are due. The district now
employs li2 teachers. has over 9.00 per
sons OF school age. of whom over GOO are
earotled IN the schools. and the monthly
expenses, exclusive OF interest on bonded
doGot, are about sIs0D
When The board incurred the debt which
the voters are now asked to ratify. IL had
serious alternative presented TO H.
" nile the constitution forhids the crcs-
tion OF debt In excess of IL per cent
on the valuation OF the taxable proper-
" OF the district, without a three-nfths
vote. no means had been provided IN tin
the last session OF the legislature author
izing such an election to lie held The tax
able valuation OF the district was anuu-
ally shrinking, and the limit OF debt was
shrinking with Il. Notwithstanding This
fact had the delinquent taxes been paid
as the board had a right to suppose, the
constitutional limit would not have been
exceeded more than s25000. If at ali. Tn
der these circumstances, when the Umi:
was reached the board had two courses
open 10 H. one WAS TO close the schools
until the funds were available to reopen
them: the other was TO continue the
schools and depend upon the legislature
70 pass the needed legislation. and then
10 submit to the people the question Of
validating the debt I'm excess Of the legal
limit The latter alternative was chosen
and FOR this purpose. for the purchase
of school sites and lie erection OF build
lnSs- and through the large AMOUNT OF de-
hnquent taxes. the warrant debt Of 1851
Sb.es was incurred.
The board now submits 10 the people the
question whether they viii ratify the
floating debt and thus enable the board
to fund IL by the Issue Of s per cent.
twenty-year bonds, the proceeds OF which
must under the new law be applied TO the
payment of the warrant debt and to no
other purpose. II the people vote TO ratf-
Is, the outstanding warrants bearing (
and 10 per cent. interest VIII he replaced
by bonds bearing not more than PER
cent. interest with the result that the
district will save about Sls0a a year In
on a cash basis. The law provides that
the annual expenses ot the district shah
not exceed the annual revenue. and tha.
any officer who shall knowingly aid IN
violating this provision shall he guilty
OF a misdemeanor and be fined not over
S5'u for each offepse.
y the debt Is not ratified al this cleo
tion. for the law allows the question 20
Dee submitted only once 20 the voters. the
district must continue 70 pay : and -
per cent. interest on the Warrants and
levy a special tax Of mills on the dolla~
each year uatil the debt Is cxtiuguishe..
The tax provided for by the bare
foot schoolhoy hiI Will amount
90 % l{trie over mills ana
while the Seattle diciTivt viii raL eoma
ching over SiueA under a.. y Win get
back only about s55 @0 This levy and a
special Tax 80 pay the old debt. together
with 4 levy Sufficient re continue the
schools for ten months in the year woul1
aggregate between u and - mills Th.z
would be 50 heavy = burden mat there
are hat two remedies. Either t0 validate
school term from ten 10 six months.
T'he law provides that the bonds shall
~, sold ny the ccuntv treasurer iu blocks
~ rot less than their par value and f.
he does Tot succeed In sailing them. the
warrant holders may exchange warrants
for Them or the same terms Judging hv
she prsoe Tor similar bonds in other couu-
ties az This state. it is believed that E
re~ cent bonds could - floatct and would
command premium.