Perth Amboy evening news., 1911-02-11
SCHOOLS LOSE
MUCH MONEY
BY The DELAY
Startling Testimony Pro-
duced at Final Session Of
investigating Committee.
STATE GETS z PER CEN1
SCHOOLS PAY 6
Especial CORRESPONDENCE. }

=
Trenton, Feb. 11:-Testimony OF
a rather startling nature was pro-
duced before the special COMMITTEES
of the Senate to investigate the ham
ding of the state school money at
its final session here yesterday af-
ternoon. 1t was shown that whila
the banks pay but two per cent In
terest on the portion OF the railroad
tax to be devoted to school pur-
poses while 1t is waiting to be dis
tributed, every school district In the
state pays about six per cent. inter-
est on money borrowed to tide over
until the railroad money Is received.
1t was also brought out that New
York broker could offer school
bonds Of Guttenburg to the trustees
Of the state school fund before he
even submitted bid for them to the
Guttenburg school board. Further
interesting testimony was given to
, the effect that on November /, last,
the Mechanics National Bank, Of
Trenton, which has a capital OF
$500, 900 and surplus OF 5000, ,G00,s
and OF which former Governor Ed
ward Casper Stokes Is the president,
had on deposit state funds amoHnt-
Ing to total Of s1,484. .425.31.
The Last Hearing.
The hearing Of yesterday will bo
the last held by the committee The
findings are to be submitted In re-
port to the present session of the
Legislature.
r. M. Grant, OF n. M. Grant &
Company, brokers. OF New York
city. In response to questions by the
special counsel, John p. Murray. Of
Greenville, told OF being awarded
the $4,000 bond issue by the Gut
tenburg school board. 1t WAS
brought out that on May "a, 1907,
Mr.. Grant offered to sell this issue
OF bonds to the state school fund
trustees before he had made any for
NAL offer to the Guttenburg board
| for them He got the bonds at par
and sold $4,000 worth OF them to
| the state fund for $11.079. When
asked IL he bought the bonds iii opeu
market, Mr.. Grant said he thoaxha
that he did. He said there WAS ssx,
4 clear title ia the hnnd aas6 IA
that reanon tins 4uI1 ifsusi u -
! deltyerad tA
II rts53ty fo EfS n - - 3s2
,l hs s.1l La andsrstand dim aa2] = =
s.s ms'a .ss ss* e tes ey;,tr sssts fsaa
| further said that the trustees did
not know that he had not made a
! formal bid for the issue
Told of Brick Sold.
Edwin M. Haughtalins, OF the iirEn
of Haughtaling & Wittpenn, the lat
ter of whom is Mayor HI. Otto Witt
penn, of Jersey City, was called to
tell of brick sold by his company for
use In the erection of public school
buildings. Mr.. Haughtaling said
that since his partner became the
mayor of Jersey City the firm had
been interested In two school jobs
He explained that when he was
elected the executive Of the city Mr..
Wittpenn insisted that no mora
bricks be sold for public buildings
Mr.. Haughtaling, however, objected
to this arrangement and said that 1t
was not fair that he should lose his
share Of the profits. So It was arr
ranged that Mr.. Haughtaling on
public work should bid on personal
responsibility and while he COM
peted on many buildings he ex-l
planned that he only got the two
| jobs.
The testimony Of L. X. Wiidriek.
of the State Treasurer's Office,
showed that s2,426,930.s1 was de-
voted to the school fund out of the
| railroad taxes last year. This money
Is paid quarterly by the railroads.
| beginning February 1, then May i,
August ] and October I5.
Get Two Per Cent. Interest.
The money as received is placed In
the banks and two per cent interest
is paid. In the following April the
money is distributed to the school
districts of the state. 1t was shown
that the interest which is received
| on this school money goes to the
general fund for state purposes and
| the schools do not get 1t. 1t was
further brought out that every
school district in the state borrowed
money In anticipation of this rail-
road money, and on the amounts
Continued on page 81