The weekly herald. [volume] (Amarillo, Tex.) 1906-19??, 1908-06-25
OUR SCHOOLS
WILL SUFFER
Failure Of District Tax Law
Leaves City Schools With
out Maintenance
lFrom saturdayls paIlyD

II the schools OF Amarillo, and
schools all over the state are con-
tronted with the same problems, are
maintained more than very few
months next year, and then under
vastly uniavorable circumstances 1t
must be by some means that have not
yet been satisfactorily determined,
Not only does the decision on the
Independent school district tax law,
which was handed down this week
by the state supreme court, make It
impossible for the city TO issue bonds
Tor the additional buildings which
are 30 greatly needed here, but 1t
will take away the tax on which the
schools largely depend for mainte-
nance, and the only source OF reve-
nue. which will be available will be
the small amount apportioned from
the state school fund. Every posi-
bic means will, OF course be used TO
tide the schools over this year and
some means may be found to avoid
what appears now to be the inevitable
consequences of the failure OF the tax
law. but such relief is not apparent
nor very probable,
Inyalidates Bond Issue.
The decision handed down by the
supreme court is in accordance with
that reached some time ago by the
court OF civil appeals in a case car
ried APP from Snyder, Texas, which
attacked the constitutionallty OF the
tax levied in independent school dis
trlcts on the ground that the tax
allowed is in excess of the amount
allowed by the constitution. The
courts sustained this decision. As a
result the tax levied by the various
independent districts are now null
and void and the issues of school
bonds which they have made are in
validated, because there now remains
no way in which the interest and the
sinking fund on them may be paid.
About $3,500,O00 worth Of these
bonds have been sold. The state Of
Texas has purchased some of them
but a great part Of this amount has
been purchased by private individu-
ais and by trust companies. Repre-
sentatives of these bond holders will
exert every means to get a settle
ment for them and may succeed in
finding a solution but just at present
Texas school bonds are far from
gilt edge" Even when the state
remedies the condition that has been
brought about by the failure OF this
law and enables the districts to issue
bonds, the state will be heavily ham
dicapped in selling such securities
There has been good demand for the
bonds in the past and 5 per cent
bonds have sold at par or little
better. The failure of this law and
the difficulty which the holders OF
the present bonds will have in get
ting anything for them will make in
vestors critical Of future issues from
this state and is likely to cost heavi-
ly in the additional expense from
higher rates OF interest and broker
age which will be necessary in order
to market the bonds.
Pending Amendment Will Help.
The amendment now pending be-
fore the people OF Texas and which
will be voted upon in the November
elections will be the first means for
clearing up the confusion caused by
the failure OF the law and will do
much toward improving methods Of
school maintenance all over the state,
This amendment provides that COM
mon school districts may vote tax
levy up to so cents on 500, the
amount which the Amarillo indie
pendent school district has voted, for
school purposes. 1t also enables dis
trcts to carry an election for a tax
levy by a simple majority and not by
a. two-thirds majority which is re-
quired for school tax levies now.