Newark evening star and Newark advertiser., 1910-09-08
ORANGE PAID HIGH
INTEREST, SCHOOL,
PROBERS LEARN
Loaned Money at z Per Cent,
Borrowed at 5 Per Cent,
Is Evidence.

The Senate school investigating COM
mittee today took up its WORK at Or
anee and discovered some facts that
Will probably result in some sweeping
changes being made in the methods
of handling school funds by the differ
ent municipalities.
City Treasurer Frank S. Goughtry,
as custodian of the school funds, ex-
planned that the deposits Of the school
board were kept in the Second Ma
tional and Orange National banks. He
told the committee that the board re-
ceived per cent, interest on funds de-
posted, and for loans paid AZ per
cent, and at times as much as per
cent.
He told of $4,000 being borrowed last
year at Az per cent, and then said
tnat during the last half of 1908 the
school board had borrowed $4,000, for
which per cent. interest was paid.
At this time Mr.. Coughtry declared
the school board had deposit of $110,-
900 in the banks, due to the sale of 4 n
issue of school bords to that amount.
For this money the school board was
receiving per cent interest, while at
the same time it was paying the banks
per cent. for borrowed money. In eff
feet the county board was paying 3
per cent for the use Of its own money
William q. McCurdy, secretary of the
Orange School Board. was the first
witness called. He told the committee
that the Orange schools had at the
present time $500 pupils. and then said
that the site of the present High
School was originally intended for the
site of the City Hall, and had cost the
city $4,000.
Mr.. McCurdy was then asked about
the buying of supplies for the schools,
and said that supplies had been bought
in rather haphazard ~ for many
years. He told that j. L. Hammett &
Co. and another New York house had
responded to requests for bids and that
most of the supplies had been bought
through these houses.
The board had never asked for
itemized bids, it developed. All bids
received were in a lump sum for the
amount of supplies estimated to be
needed by the schools.
Bids Puzxling.
Commissioner John b. Belts, one of
the members of the investigating com
mittee, then asked to be shown one
of the bids received for supplies. He
looked it over and then remarked, ''I
can't make head nor tail out of this,
and l don't believe any one else can
I can't see how the School Board ever
kept any track of the material it was
buying or where it went to-"
There was no comment made on this
point, and Secretary sIcCurdy went OH
TO explain to the committee that the
per capita cost for the grammar schools
at the present time was $685. for each
pupil, while in the High School the per
capita was $685.
Mr.. McCurdy explained. that there
had been a change recently in the sys-
tenn of buying supplies and in the
handling of the school funds and that
in the future itemized bids would be
required before any contracts were
awarded.
James G Riggs, superintendent OF
schools, was another witness called
He was not asked many questions but
the line of inquiry developed the fact
that he had little to say about the
appointment of teachers, although
matters in that respect weer not as
bad now as formerly. He told the com
mittee that the teachers were appoint
ed on his recommendation but had to
be approved by the school board.
Any Of your cppointees turned
DOWN." he was asked by Chairman
Frelinghuysen.
Not by the present board" was<the
reply. "Other boards have failed to
appoint teachers l have recommended
a A Il.