Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-27
SEEK RESTORATION
Of SCHOOL MONIES
WRONGLY INVESTED
Educators Ask Dixon for Leg
islation Calling for Replace
ment of Funds.

Helena. Dec. 26.-{By The Associat
ed Press. Request that Governor }.
NJ. Dixon aid in securing action by the
legislature to transfer $247.3O5 from
the state general fund TO the common
school interest and income fund has
been made by the Montana State
Teachers association.
The S247. 305 represents the interest
at g1a per cent paid by banks from
July. 1907. to December, 1920, on
monthly balances of state school funds,
which was placed to the credit of the
general fund of the state. The sum
should have gone to the credit of the
school fund and been distributed as
other incomes to this fund are dis
tributed, it is contended by the assocla-
ton.
"A letter to Governor Dixon from
II. J. Cunningham of Bozeman, who IS
secretary of the state teachers lsso-
citation and who was chairman of the
committee which prepared and present
ed resolutions on the subject Whlch
were adopted by the association at its
annual convention in Helena last
month. says:
THE state land board received the
interest at % per cent paid by banks
on monthly balances from July, 1907,
oLDecember, 1920. and placed it to the
credit of the general fund of the state.
This amounted to approximately S247,-
305. The association believes this
money should have been turned TO the
common school interest and income
fund to have been distributed as other
incomes to this fund are distributed
each year
S692, $50 diverted"
by the action of the state teachers
association at Great Falls in 1921 and
re-taken in Helena this year, the com
mittee on state lands was directed TO
bring to your attention these facts with
the request that you treat them in your
message to the legislature in its ses-
sion soon to be convened.
For many years the state land board
drew the expenses for conducting its
office and offices connected with the
boards affairs largely from the COM
mon school interest and income fund.
We do not have full data on the
amount thus diverted by years. but
data secured shows a total for the
1910 to 1920. inclusive, of $500, $50.
THE teachers association believes
the funds expended for land office ex-
penses should have gone into the cur
rent interest and income fund, as
should have the interest on bank bal
ances, and we respectfully request that
YOU ask the legislature to take steps
for the restoration of these funds.
1--WE wish also to call to the atten-
ton of the legislature through you the
following concerning common school
permanent funds invested in farm
mortgages:
"Up to November /. 1922. there was
due delinquent interest on these farm
loans to the amount Of S325, 900, or
about A per cent Of the net income
from all sources for the interest and
addition to this the state land board
has been compelled to pay S1O6,29
from this income fund for taxes on
delinquent loans in order to protect
titles, 100000 Of which was paid out
between June and November. 1922.
Income is Diminishing
Up to November i. 1922, the land
board had fereclosed on 10S loans. The
amount of these 1OS loans was 1902
600. Foreclosures are pending on 200
additional loans and 1877 more have
been recommended for foreclosure
proceedings. This makes a total of
40 out of approximately 2,1OO made.
The interest and income fund for |
the common schools is being diminished !;
each year over S200,000 through delin-
quent interest and costs on these farm :
loans, and II is coming at a time when
the impairment Of the funds is a seri-
Gus blow to the schools. II
The impairment TO the common .
permanent fund from these !
loans cannot be estimated at this time !
and for that reason the legislature will ,
not be called upon to consider it. 1t /
be remembered, however, that \,
this fund is held in trust by the state. {
and that any permanent impairment of !
II will surely have to be restored. {
December, 1913. to January l. {
~$2.143.900 were loaned on farms G
md during the same period over So |
100000 in sCSoo bonds were denied an c
Investment by the land board. &
The state teachers association {
it to be clearly understood that /
his appeal is made for the cause of
he schools of Montana. the boys and
Urls. many of whom are being denied y
heir rights to an education because of =
ack of funds. =
This appeal is made for the pur- i
'ose Of securing the restoration, TO the
school funds of that which was =
Inverted from them for purposes not v
provided in the federal land grant and \
he states enabling act. and for the n
urther purpose of settling that these
nnds are held in trust for a purpose j,
'leariy specified, and that no impairing d
" them will be permitted. aver if the "
ederaI authorities have to be asked II
9 intcrcede." h
WI. -. ~ g
"hen moving out from the curb. do y
g IN 4 gradual. diagonal line. When r.
swinging into a curb. do so gradually d