The log cabin Democrat., 1916-01-03
SCHOOLS MAY BE
FORCED TO CLOSE.
MASS MEETING THURSDAY
BOARD CALLS PATRONS TO
CONSIDER MEANS OF KEEP
ING SCHOOL GOING.

That grave crisis in the financial
affairs OF the Conway school district
has been reached and that the schools
will have to be closed unless the stu
alton is Immediately relieved, is the
substance of a statement issued by
the board of directors today, which
concludes with a call for a meeting
OF the citizens of the district Thurs
day night to consider the matter.
According to the statement of the
board, the district, which has been
running behind in its revenue for
several years, has now reached the
point where the receipts from the
taxes of the current year will not
pay off the outstanding warrants for
the preceding year, and with this con-
dition the local banks, which have
been carrying the deficit, will no
longer do so, unless means can be
provided to increase the revenue The
district, in addition to a bonded in
debtedness of $48, 800, now owes Sill
295 In outstanding unpaid warrants.
Besides, interest and bond payments
amounting to $3.50 and salaries and
expenses amounting to $500 are vet
to be paid this year. This means a
total outlay of $20,705 for the year,
against which there is an estimated
revenue of $4,000, leaving a deficit
at the close of the school year of $10,-
705.
The discontinuance of state aid, the
decrease in assessment in the district,
together with increased expenses of
operation, the board states, accounts
for the present condition. Several
possible remedies are suggested, but
the one which is apparently favored
is the voluntary payment of an ad-
ditional five-mill school tax.
The boards statement in full fol-
lows:
To the Patrons of the Conway Public
Schools
The school district of Conway is
facing the greatest crisis in its his
tory. So serious is it that, unless
some solution of the financial prob
lem now engaging the thought of the
school board be speedily found we
shall be obliged to close the free
schools
The financial situation may be
summed as follows: When we hoated
bonds to finance the building of the
annexes, we took up the second issue
bonds floated to build the original
building, thereby effecting a saving
of four per cent in the interest rate.
There remains of the original bonds
the sum of $50, 800, of which there
will be due during the year 1916, the
sum of $1,000 principal and 81 ,230
interest. In addition to this, the en-
tire amount of the bonds issued for
the building of the annexes (and for
taking up the ten per cent bonds
mentioned above) is outstanding.
This amounts to $2S,0OG. The prin-
cipal of this issue does not begin to
fall due until 1929, which is five years
after the first issue is to be paid out;
but $1,6S0 of interest will fall due
during the present year, 1916. 1t will
be seen that we must pay on our
bonded Indebtedness during this year
the sum of $3,910.
The operating expenses of the
schools-teachers' and janitors' sal
aries, fuel, insurance, repairs and
other necessary eXpenses-is, in round
numbers, 81 100 month. BY the
close of the present term this will
amount to $500. The outstanding
warrants at the present time amount
to $11, ,295. At the close of the term,
this will total $16,795.
And what of the revenue to cover
these amounts? 1t is impossible at
this date to state just what the rev.
enue of the district will be, but it
will approximate $4,000. Last year
we received from the various sources
$40, ,651 %, but the amount will be
less this year as result of shrink
age in the assessed value of property
in the district The exact figures will
be available in few days. But the
following tabulation will give a fair
ly accurate idea of the conditions as
they will be at the en- dof the present
year:
Principal of first bond is
sue, due in 1916 ......$ 100000
Interest on first bond is
sue, due in 1916 .... 10000
Interest on second bond is
CONTINUED on Last Page)