Omaha daily bee., 1905-07-01
SCHOOL FUND Is DISSIPATED
Many Counties Have Borrowed Money and
Loaned it on Poor Security.
MORTGAGES ON LAND IN MISSOURI RlVEF
state Auditor VIII Call Attention of
legislature to the Matter and
Ask that Body 10 In
vestigate.
lrrnm a star CorrespondentO


DES MONIES, June S0.-(Special,) )-What
has become of a large part of the school
fund of the state which has been loaned
to the counties will likely be a subject foI
legislative investigation when the general
assembly comes together next January
The counties have in their possession A,i5L'
900 of the school fund of the state. J. f
Wall. chief revenue clerk of the auditors
office, has been on trip over the state tC
collect some Of the back taxes and he mas
discovered that there is from 900 &c
$780, 900 of the funds that has been lost. II
has been the practice of the counties tc
borrow the money from the state and re-
loan il. The counties pay the state AZ pei
cent and reloan 1t for higher rate, pocS
citing the difference. 1t has been discov
cred that while the counties have regularly
paid the interest due the state the origina
fund has been lost through loaning 1t or
insufficient security. In Pottawattamie ant
Woodbury. counties there has been a grea
deal Of money loaned on land that is nov
the bottom of the very changeable channe
of the Missouri river There is some sligh
suspicion that in some counties along The
Missouri money from the school fund hai
been loaned on land after 1t became th'
bed of the river. In other places II is dis
covered that loans have been made on per
sonal security only for political friends
and in one or two cases IL was discovered
the security was nothing but the note Of th
person borrowing the money and wa
worthless.
Some of the counties have reported 70
some years a portion of the fund as beinl
in judgment. 1t is now discovered that ii
a majority Of the cases the Judgment 1
worthless. The plan of loaning the schoo
fund to the counties is in accordance witt
a law passed many years ago. The interes
paid by the counties is regularly appor
toned to the counties on the basis of tn
number of children of school age in tn
county.
State Auditor Carroll will call the atten
tion of the legislature to the condition o
the school fund when the Legislature con
venes and will ask that the matter be in
vestigated.
GaIbraith Promoted.
Major j. G. Galbraith, Eleventh Unite
States cavalry, and detailed as recruitin
officer at Des Moines, has been detailed a
assistant inspector general for four year
| by a War department order, and will leay
at once for Washington to report to the II
| spector general of the army. Major Ga
braith has been at Des Moines for abor
a year, but was recruiting officer here b,
fore the Spanish-American war. His su,
| cessor has not been named.
Cerro GordO shows Gain.
| The population OF Cerro Gordo county,
shown by the official figures given ol
today, shows a gain over the census OF flV
years ago, making six counties out
thirty that have made a gain. The popul
1 ton is 21,5A and five years ago 1t was q
672 The population of Mason City, II
largest city in the county is $3.50 and fl
years ago the government census gave
6746, gain Of over % per cent
| Putting in Phone System.
A complete system of telephones is beir
put in on the state fair grounds. The
will be twenty-four phones in a priva
system, so that communication can be hf
with the different buildings on the ground
Governors Chautauqua Dates.
Though the executive council will me
| July 10 to take up the matter of railroi
| assessments Governor Cummins has a
| ranged for several Chautauqua dates to
filled during the month of July and
| August. The dates for the two montl
are: Malvern, July 4; Sac City, July !
Iowa Falls, July 21; Bloomfield, July Z
Pennington, july %; Glenwood, August
Atlantic, August 10; Clarinda, August 15
Decision on Antitrust LAW.
Judge A. II. McVey of the district cou
said today that he had his decision al
opinion on the constitutionality of the AM
trust laws written and would deliver It
the meeting of the bar tomorrow mornin
when court assignments are made. The 1
surance men are confident he will hold Il
law unconstitutional.
PostOfHce Growing.
The receipts at the Des Moines postoffi
for the month of June, 1905, were $4l 1888
and for the same month last year $37, ,099
For the year ending June 80, 1905 there is
gain in the postal receipts of $l5,9729O.
Defnulting In Question.
The defalcation of Assistant City Gle
Fred II. Sales, which was followed by /
suicide. is now causing a question with [
legal authorities 1t was Sales business
collect paving assessments and the lii
The money he appropriated and gave I
ceipts. The question now is whether I
property owners must pay the amour
again. The annual collection is now d
and this gives rise TO the matter T
property owners produce the city receip
but the city books show no credit.