The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-15
BANK GOUGE
REVEALED ON
SCHOOL FUND
5 Per Cent Charged on
Loan by City FinanCiers
Who Demand Budget Cut.
8 PER CENT IN CHICAGO
Taxpayer Group, Chamber
of Commerce Want Slash
Made Somehow
BY DANIEL NJ. KIDNEY

II OA4NALA VA AIONE
How five Indianapolis banks COM
bined and charged the indianapolis
school city per cent on a ninety
day loan of $150,000, where formerly
the money was borrowed in Chicago
at 3 per cent, was cited as an ex-
ample today of why the school city
budget can not be cut from the
proposed $101.
The episode was related by Rus
sell Wilson, president of the school
board, in defending the new budget
before the state tax board.
Attack on the budget was
launched by the Indiana Taxpayers
Association, which took an appeal
to the state commission, and by
Chamber of Commerce committee.
Arthur V. Brown appeared as a
member of the Chamber of Com
merce committee and urged that
the budget be cut somehow" to "a
cents.
Banking Deal Cited
1t was in answer to Brown that
Wilson cited the banking deal. He
pointed out that it is high interest
rates on bonded debts and such
fixed charges" which prevented the
school board from making any rate
reduction this year.
Browns own bank was one of the
five charging 5 per cent, and
Brown, as bank president, told Will
son that cash reserves at the time
were as large as at any time in the
history of the institution, Wilson
said.
There is no use of coming here
and talking platitudes," Wilson
challenged. This is the sort of
things that we are up against in
operating the school system eff
cinetly. It's the sort of thing that
you don't see in the newspapers
when they are crying out for budget
cuts"
Every seat in the house of repre-
sentatives was filed Nand many
women. members of parent-teacher
associations, were standing.
Corporations Seek Cut
Wilson pointed out that not
single protest against the budget
came from taxpayers generally, but
only from such organizations as the
Chamber of Commerce and the In
diana Taxpayers Association.
Corporations don't send any chill
dren to school, he declared. But
Of course they are interested in
cutting taxes, because any cut
means saving of money to them.
But just how that can be considered
a program of pro bono publico' is
somwehat obscure.
Our board intends to carry out
its election promise and keep the
city schools efficient. If a single
cent is cut from this budget, 1t will
stulify the schools, and we are not
to be responsible for it."
j. j. Daniels, attorney for the
school board, pointed out that no
definite objections or program were
propounded by the Chamber of
Commerce and, therefore, it's pleas
were worthless and should be ig-
nored.
Miesse Submits Plan
A program of definite cuts was
set out in detailed plan submitted
by Harry Miesse, secretary of the
Indiana Taxpayers Association.
1t provides for reduction of
$750,000 and would cut the rate by
IL cents.
The budget is to be gone over
item by item, beginning this after
noon, and Miesse will seek to sub
stitute his budget for that drafted
by the school board.
Only salary cuts suggested are the
superintendent, now $4,000, and
business manager, now $4,000.
Other cuts would be made BY
Miesse in the sinking fund, auto
mobile maintenance, equipment and
fro iT7c11roY7oo