The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-21
SCHOOL FUND PROBLEM.
Provisions of a ELL Drawn by Sem
ator Albert ID. OgbOrn.

Senator Albert ID. Ogborn, of New Cas-
tie, has prepared bill touching the school
fund problem, which he will introduce in
the Senate this week. In speaking of its
provisions, he said:
THAT some relief must be given to the
counties Of the State which have some por-
ton of their school fund on hand and UNI
loaned, is generally conceded, but how
this relief is 10 be given without inJuring
the school interests of the State is a puz-
zling question. In July, 1900, ninety-one
counties in Indiana had portions of their
common school fund on hand and unloaned,
amounting to over 1858. 600, and eighty coun-
ties had part of their Congressional town.
ship school fund unloaned, amounting to
over Sos, 900. AS the law makes the coun-
ties responsible to the State for the inter-
est on these funds, ii will seem that these
counties had to raise by taxation, or from
other sources, about $4,000 TO make good
the deficit caused by this money remain
ing idle in their treasures.
Many people have urged that the rate
OF interest on loans from these funds be
reduced from s per cent. TO per cent.
per annum. AS these two funds common
ly spoken of collectively as the school
fund.-, now amount to over SIC, $50. IL
will be seen that a reduction of l per cent.
in the interest rate would make the an
nual school revenue arising from this
source over 100000 less than IL is now, and
when we take into consideration the fact
school tax levy has been reduced from 10
cents to IL cents on the 800. and the rate
of interest on loans from these funds has
been reduced from per cent. to per cent,
Ii will be seen that further radical re-
duction of the school revenues by more
than 100000 annually will seriously impair
the common schools of the State, and will
make 1t impossible for many townships
TO have six months of scnool. as is now
provided by law.
ITO meet this emergency. have drafted
bill providing that the interest on loans
from these funds shall be paid at the end
of the year, instead of in advance; that the
amount which may be loaned to any per-
son company shall be raised from 81, 900
to $1,000; that the fees charged in cases of
mortgages shall be paid out of the interest
on the loans. instead of by the borrowers.
as now; that the borrower may have the
right to pay not less than 10 per cent of
the principal sum loaned to him at the end
of any year during the maturity of the
loan; and that where loans are made In
other counties than that to which the
funds belong. 40 per cent of the appraised
value of the premises offered as security
may be loaned, instead of Is per cent, as
now provided.
I'm order that the gulf which would be
created by changing the time of payment
of interest from the beginning to the end
of the year on all loans from these funds.
have drawn the bill TO apply only to loans
hereafter made; and as there are now only
less than per cent. of the whole, IL will
be readily seen that violence will be
done temporarily to the school revenues
by the change of time of payment of inter-
est, because the change will be gradually
made, as the loans now in force mature"