The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-05-03
LOANS FROM
BOOK SYSTEM
FUND SCORED
State Accountants Move to
Halt Practice at
Shortridge.
URGE BETTER RECORDS
Ask School Board Action to
Recover Money Given
Teachers.

The Indianapolis school board
was called upon today by the State
board of accounts Immediately to
halt the practice of making loans
to teachers from the funds of the
Shortridge book exchange and to
install a better system Of book
keeping in the exchange.
These requests were embodied in
letter and report sent to Albert
Walsman, business manager of In
dianapolis schools, which showed
that there is a total of $2,352.85
loaned to school people, of which
$2,340 was loaned to G. M. Cross
land, bookkeeper and manager of
the book exchange.
The letter called attention of the
school board to a letter sent the
board Nov. %, 1927, in which I'VE
called attention to the practice of
making loans to individuals, stating
that we could find no statutory au-
thority for the same, and it appa-
rently is illegal, and at least against
public policy" the letter said.
Move 10 STOP EracCIce
1--WE note that several loans of
this character have been made dur
ing the period covered by the report
Nov. IA, 1927-March 81. 1928, show
ing that this practice has not been
discontinued.
ut is necessary that immediate
steps be taken to stop this practice
and recover the money now due on
account of these loans having been
made"
The audit and report made by
State Accountants Ross Teckemeycr
and Edward Major showed that a
total of $4,395.56 had been loaned
teachers from Nov Is, 1927 to March
81, 1927, and Of this amount
$2,852,85 was still outstanding. The
exchange was to receive 6 per cent
interest for the loans, it was said.
Loans due were those made c. C.
Shoemaker, SIS; F. L. Ranch, SITS;
j. E. Moore, 500; S. F.. Jenkins,
$40; Hope Bedford, $40, and G. M.
Grassland, $2,340.
The report showed that the funds
of the book exchange include those
of the lunch room, Daily Echo and
the operation of the book exchange.
These funds we're deposited with the
exchange as a trust and were not
Jumped with the receipts of the ex-
change, but there has been no sep
arate bookkeeping and money from
all three of these funds have been
loaned.
The audit of the books Of the eX-
changes of the Shortridge High
School, Manual High School, Tech
nical High School and Washington
High School was made at the re-
quest of the school board.
They show that the Manual High
School exchange has deposited to
its credit in cash, certificates of
deposit, reserve accounts and special
gift certificates, $23,095 Technical
has $44,481, and Shortridge, besides
the money loaned has a net cash
balance of $4,580.
Shortridge officials, according to
Teckemeyer, complained that the
profits from the exchange and lunch
room were used to keep the Daily
Echo from laundering.
There must be some official
recognition of the quasi-public en-
terprises and funds together with
legislation towards the regulation
of these funds" Lawrence Orr,
chief of the board of accounts, de-
clared.
Bill to Be Framed
Orr said ne will frame bill to
be introduced in the 1927 Legislature
regarding the regulation of these
enterprises.
Condemnation of the practice of
making the loans by the Short
ridge Book Exchange will probably
be voiced at the meeting of the
school board Tuesday when the re-
! port will be read, Walsman said.