Rock Island Argus., 1920-01-31
BONDING co.
PAYS FUNDS
TO SCHOOLS.
Check of $4,000 Paid to
Representatives Of 8
School Boards.
James NJ. Johnston, Moline. rep

James NJ. Johnston, Moline, rep
resentative of the Royal Indemnity
company, surety for County Super
intendent of Schools Lou M. Harris
in the sum of $4,000, turned this
amount over to the representatives
OF the three townships involved in
the school fund controversy, at his
Office in Moline at IL o'clock this
morning.
The check for the amount was
received from the Royal Indemnity
company by Mr.. Johnston this /
morning, with instructions to make
payment. The check was made
payable jointly to r. M. Johnson.
treasurer for township No. II, TAX
ing in the South Moline board; G.
l.. Peterson. treasurer Of township
No. IS, taking in the Moline board,
and Harry B. Simmons, treasurer
of Rock Island township.
Due to the illness Of MIR. Sim
mons, ]. l.. Vernon. president OF
the Rock Island school board, rep
resented Rock Island township.
In statement to The Argus this
morning Mr. Johnston said that he
| did not know whether or not the
| $4,000 payment would liquidate all
Miss Harris Indebtedness. How
ever. he said that the bonding com
! pany had no interest as to this for
reason that once the company had
paid over the full amount of the .
bond, its responsibility had been
liQuidated.
Miss Harris original indebted
ness to the Rock Island board was
sl6,675.96, but approximately $10.-
800 was obtained by the board by
attachment of deposits of Miss
Harris in the Central Trust and
Peoples National banks of Rock
Island and the State bank Of East
Moline, according to Allan d.
4 Welch, member of the finance COM
mittee of the Rock Island school
board.
Miss Harris original indebted
ness to the Moline board was $S,
09975, and to the South Moline
board S1.405. according to l.. A.
Mahoney, Moline superintendent OF
schools.
1t was rumored today that even
with the $4,000 payment from the
bonding company there would not
| be enough money to liquidate all
Miss Harris Indebtedness today,
but that full settlement would be
made soon.
Other Money Received.
In addition to the bond money
paid over today the three town
ship treasurers will tender cash
ier's check from persons Interested,
/ for the sum of s1.9ll.
Still a Shortage.
Directly after the payment OF
! these funds statement was given
out that the money will be dis
tributed to the various boards pro
rate, and that there will still re-
main a shortage.
! This shortage is estimated to be
approximately $500 each for the
Rock Island and Moline boards and
about $500 for the South Moline
| board
Resignation RumOred.
Rumors were also prevalent that
Miss Harris would resign her po-
sition after all discrepancies had
been Strengthened out.
| Attorney Johnston would not say
today whether or not the Royal In
demnity company would prosecute
Miss Harris.
He said that c. E.-Trinder, New
York attorney for the company, and
! c. w. French, the cOmpany's Chi
cago agent, had made full investi
CATION of the case here and had
obtained information that it would
be necessary for the bonding COM
pany to pay over to the school
boards the full amount of Miss
Harris bond.
Welch Makes Statement.
Allan d. Welch, chairman OF the
Rock Island board, said that he is
not disposed to allow the matter
to end until all money due the
school board is obtained. In fact,
he said that the school board has
no other course to pursue.
Relative to possible prosecution
of Miss Harris, Mr.. Welch said that
he could not speak for the entire
school board.
He said that Miss Harris must
furnish another bond before she
can hold her position. He assert
ed that this would probably prove
difficult with a bonding company.
, However, he said that such matters
. were entirely in the hands Of the
board of supervisors.