The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-15
STATE UNIVERSITY FUND
PRESIDENT SWAIN MAKING INQUI-
RIEs AS TO STATUS OF TT.
Counties Opposing the New Law Re-
quiring Them to BE RespOn-
sible for 1t.

DR.. Joseph Swain. president of the State
University was yesterday making an in
quiry in the offices of the auditor and treas
urer of state as to the status of the per-
manent endowment fund of his institution.
The last Legislature passed a law directing
the state treasurer to call in the loans
made from this fund by the auditor of
state, but no provision was made for the
transfer of the mortgages and records of
the loan from the hands of the auditor to
those of the treasurer. This oversight has
made the law imperative thus far, as
Treasurer Scholz has not seen fit to as
sumo the responsibility of carrying out
law the construction of which is open to
question. The attorney general is expected
shortly to render an opinion as to the duty
of the treasurer in the matter. The fund
which amounts to about S500,00O was orig
inally loaned to individuals by the state
auditor on loans running for five years but
as fast as they fell DUE instead of their be-
ing renewed, they were allowed to run so
long as the interest was met. The fund is
therefore, in a condition making it possible
to call it in most any time, and if the at
torney general considers the law explicit
enough to warrant it. the treasurer will
probably have about half Of the fund in the
States vaults before May. At present only
about $12, 900 of the fund is in the treasurer's
hands. Hlt1NN
The law provided that the treasurer shall,
as fast the loans are called in, apportiun
the amount received among the various
counties of the State, to be loaned out by
the county auditors in the same manner
that the permanent school fund is loaned
The counties are responsible for the interest
on the school fund to the State, and the
object of the law is 10 make them also re-
sponsible for the interest on the endowment
fund of the university. Under the present
arrangement by which the fund is managed
by the state auditor, the State is not re-
sponsible for the interest, and, although the
university has lost very little the fund hav-
ing always been administered with great
care, the friends of the institution have
aimed through the law to secure an abso-
Lutte guarantee against any loss. doubt
has arisen, however, as to whether the
counties can be compelled to receive the
fund. The State Constitution provides that
the permanent school fund shall be loaned
by the county auditors, the counties to be
responsible for the interest but whether
this section can be construed to compel the
the acceptance of a fund the proceeds of
which do not accrue to all the public school
children of the State, but to only the few
that attend the university, is a question
that will likely require an opinion from the
Supreme Court to settle. 1t is known that
a number of the counties intend to resist
the turning over Of the fund to their charge
The State University this year has an In
come of about $150.000 1t received over $780,
600 as its share of the educational tax be-
side the interest of per cent. on the per-
manent fund of 1000, the interest of
per cent on the college fund of $13S, co., and
the interest of per cent. on the $144 900
owed by the State TO the institution.