Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1930-04-14

EDINBURG, April 14-Comment-
ing on the temporary injunction
granted by the 93rd district court
restraining the board of trustees of
the Edinburg Independent school
district from purchasing bonds from
the city OF Edinburg. and enjoining
the Edinburg State Bank and Trust
company from paying vouchers is
sued for that purpose. <. M. Hoop
er. business manager of the district,
gave out the following statement:
This was merely an effort on the
part of the board and myself to
secure sufficient funds to pay the
teachers their back salaries, due for
the month OF March. amounting to
SIT .444. and TO have on hand enough
money 20 meet such future obliga-
tons as might accrue before the
close OF the scholastic year. Reports
that teachers have received no sal
aries for several months are
founded. and the fact that two
teachers left the employ of the local
schools lust after receiving their
salarTs in full because they feared
they would not be able to collect
for their services for the remainder
OF the year are also unfounded.
since these two teachers left for
other reasons. here has been some
difficulty. however. in meeting the
payroll. and efforts TO borrow the
money from the depository 10 meet
such obligations failing. the board
met In special session and adopted
a resolution authorizing the invest
ing OF 100000 Of cash on hand In
the county depository 70 the credit
OF the interest and sinking fund TO
be invested in equal amount Of
bonds are held BY o. .. Norwood.
The order was signed by y. NJ. Jet
ton. vi~ce-president of the board. and
John L. Box. A. Cavazos Jr.. Jose
Guerra. trustees and attested by II.
G. Baker. secretary Of the board Of
trustees.
$4,000 On Deposit
The school board merely wished
to use the sinking fund for the pur-
chase Of securities with the under
standing that the purchaser was TO
loan the district $50. 900 to make
the payroll for the remainder Of the
scholastic term, which was done
after the Edinburg State Bank e.
Trust Company refused either to
TO loan the money TO US or carry
the vouchers in their warrant ac-
count. This 100000 surplus actually
exists and is on deposit in the bank
10 the credit Of the Edinburg
School district. and in addition,
there Is sufficient funds remaining
IN the various interests and sinking
funds TO meet all interest require
ments to January 1st.. 1881. And,
besides. the district has 1888 900 70
its crtdit or interest and sinking
funds on delinquent tax rolls. The
depository pays the school district
interest az the rate OF two per cent.
on the average daily balances in
the school fund. The board would
have paid. and has always paid.
eight per cent. for sufficient money
10 meet its requirements. and the
law specifically provides the man
ner IN which sinking funds may be
invested BY school districts and its
Was 10 6IdDle SGIlOOl us
tricts receiving a low rate Of inter-
est on deposits to invest their funds
in certain securities bearing a
greater rate OF interest. Sixty
thousand dollars IS the actual
amount in the District sinking fund
that is to be held to retire the
principal on the bonds as they be-
come due and none OF 1t would be
taken out. OF course. only in some
unusual circumstance such as this.
For Tax Payer
"A temporary injunction Is not
to be taken too seriously" Mr.
Hooper said. "but II Is my belief
that this will be made permanent.
in which case other steps must be
taken to secure the required funds.
I am acting for and not against
the taxpayers and shall continue to
do SO as long as I am in this posi-
ton. This controversy Is really a
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