The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-19
BOND ISSUE is
HELD TO BLAME
FOR HIGH COSTS
Business Director Shows
Enormous Interest on
Present Plan.
DAILY RATE IS $3.50
Points Out City Pays $3.50
on ST in Bonds From
1900 to 1862.
DAILY RATE is $3.50

ISUU TO l96Z.
When in 1862 indianapolis gets
through paying off $12,441 900 school
bonds issued since 1900, the city will
have paid $3.50 principal and inter-
est for every dollar of bonds issued,
according to figures prepared by Al
bert w. Walsman, school business
director.
Interest on the $12,441 900 bonds
will reach the staggering total of
$11, 282, 867.50.
Walsman, in the opening gun of a
campaign to build school buildings
by direct taxation instead of bond
issue, in order to save burdensome
interest charges, today mailed copies
of his figures to 200 of the city's
largest taxpayers, business men,
Chamber of Commerce civic affairs
committee members and other prom
inent citizens.
Interest Would Do Building
Direct taxes equal to the amount
of interest we pay on school bonds
would pay the cost of all our new
grade buildings from year to year
were it not for the heavy bond is
sues of past years." Walsman said
Interest on bonds issued since
1900 practically equals the amount
of the bonds.
1.-THE law making provision for
such bond issues was not intended
for taxing units large enough to
finance such works by direct taxa
ton.
I'm a small community, where a
new $4,000 school once in forty
years is an event, bond issue is
necessary to avoid an increase in
the levy of more than a dollar. Here
such a building would mean about
a one and one-half cent levy"
Daily Interest $3.50
In his letter, Walsman pointed out
interest charges average about 81 $50
daily.
81 am preparing to fight this sad
ding of an increasing burden on
taxpayers of this community" he
wrote.
"A careful study of the city'S
school needs and financial resources
discloses that after the next year
OF two, no further bond issues should
be necessary fol elementary schools,
nor need tax levieS be raised. In fact
it will be possible to lower the school
levy, if all interested act honestly
and unself1shly.
He explained that the debt service
this year requires ST ,029 958, of which
S537,833 is for the sinking fund and
S492,125 for interest, or 1873 cents
on each hundred dollars taxable.
Raps Miesse'S Plan
Walsman severely criticised rec
concentrations of Harry Miesse,
Indiana Taxpayers Association sec
rotary, to the State tax board that
new buildings be provided for by
bonds rather than in the school
levy, to keep the levy at a low
figure.
Such procedure merely IS post
poning the inevitable payment, as
well as nearly doubling the cost to
the helpless taxpayers" he said.
''Since 1900, we have issued $12,-
AL, 900 bonds, of which only 1894, 900
has been paid in the past twenty
eight years, leaving $11,557, OoC yet
to be paid.
1.-THE worst of the situation is
that instead of being alleviated it
is being aggravated by constantly
increasing issues.
Present Bonds Due 1862
"The school city has heavy bond
payments, in addition to interest,
due every year from now until
1956-1957. In 1961-1962 the last
$4,000 of bonds already issued will
be paid
In 1910, Walsman continued,
taxpayers will be hard hit with the
necessity of retiring $4,520,000, part
of the bonded debt incurred in 1920
The year 1938-1939 calls for pay
ment of $3.50, 900, and in 1954-1955
the school city must pay $767,000
principal.
Since 1919, the school city has is
sued bonds for $10,221 900, compared
with only $2,O7O,OO0 issued in the
previous nineteen years.
The issue by years since 1919 has
been: 1919, $1,s0O,OOO; 1920, $4,736,-
900: 1921, $1,75O,OOO; 1923, 100000;
1925 81 O6O 600 and 1927. 81 200 000