The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-23
RECORDS BARE
SCHOOL FUND
LOAN TO GRAY
GroSSart Approved Mort
gage on Lots He Once
Owned, Books Disclose.
DEBT IS OVER LIMIT
City Man Purchased Land
on Which Taxes Were
Delinquent.

"a nine OF MS parcels OF ldIlQ 10
Mark r. Gray, for 81 and other
valuable consideration" County
Auditor Charles A. Grossart sp-
proved a 1910 county loan on
the lots and took a mortgage on the
same lots as security, official W
ion County records disclose today
Indiana laws, regulating loans
from the school funds, provide that
loans shall not exceed one-half the
assessed valuation of the property
on which the loan is made.
According 70 records in the
County Assessors Office, the aggre-
gate assessed valuation of the nine
lots in 1888, 1894 and 1885, was
s272O.
The $3.50 loan is $3.50 more than
One-half the aggregate assessed
valuation of the lots and s137.50
more than one-half of the ap-
praised value of the lots as shown
by records in the Auditors Office.
Purchased in December, 1888
The lots upon which the school
fund loan was made were decided to
MIR. Gray by Auditor Grossart on
Dec. 10. 1888.
They are the same lots which
County Treasury records show were
delinquent when the 1882 sale of
lands for non-payment of taxes was
held. and which did not appear in
the list Of delinquent land offered
Tor sale published in 1882. Seven of
The lots did not appear in the 1882
list published in The indianapolis
Times.
The state law governing school
fund loans have provided, since 1928,
that the sum loaned shall not ex-
coed one-half of the assessed value
Of the premises proposed TO be
mOrtgaged as such premises were
last assessed for purposes of tax
alton
July 81. 1884, the Marion County
Commissioners reported to Floyd l.
McMurray. State Superintendent of
huAlN AAAsAA AACbAOAAs hAldb bAAC 1OtnL "a
the Congressional Township Funds
safely invested was S19,12878. and
the amount of the Common School
Fund safely invested was 81, 406,
1851.
Cost Approximately $4,000
According to the same report,
Congressional Township funds in
vested during the year was 1910 and
of the Common School fund, $46,-
IT'S.
Funds loaned to Mr. Gray are
shown as coming from the Indiana
University Permanent Endowment
Fund and the Congressional Town
ship Fund.
Mr.. GroSSarts deed to Mr.. Gray
bears two 81 Federal documentary
revenue stamps. The Federal tax
laws require a 5O-cent stamp on
transactions between 500 and $500
and a 50-cent stamp for each ad-
ditional $500.
The Federal stamps on the Gros-
sart deed, therefore, would indicate
a consideration for the property of
approximately $4,000
Deciding of the lots by Mr.. Gross
art to Mr.. Gray was revealed after
The Times had learned Mr. Gross
arts lots did not appear in the lists
published in advance of the 1892
tax sale.
Tax Sales Voted Illegal
Mark r. Gray is listed as publish
er of the Indianapolis Commercial.
Jan. II, of this year, Mr.. Gray
presented a statement to the County
Auditor for 14.172 proposed 1885 tax
sale items at 80 cents each. totaling
S426l6O. This was approved that
Gay and submitted TO the County
Commissioners.
Jan. Is a check was issued to Mr.
Gray covering the legal advertising
claim.
On that day also, Mr.. GroSSart
left for Florida. On the day before
the General Assembly had passed
a law making such tax sales illegal
in 1885
A check of proofs submitted later
by Mr.. Gray was said by John New
house, County Commissioner. to
show only 1850 items.
Mr.. Gray rendered the Commits
sioners a check for sl06O.SO. the diff
ference. The commissioners refused
to accept this in settlement of the
matter.
THE Times Knows"
Mr. GroSsart declined today to
discuss the loan to Mr.. Gray when
invited TO DO so by The Indianapo-
lis Times.
The Times evidently knows what
t. law is because they have printed
it on the front page today" Mr..
GroSsart declared.
Before making this statement he
had told other persons that several
of the lots decided TO Mr.. Gray were
worth $4,000 each, The Times was
informed.
The highes. assessment on record
on any one Of them was $3.50.
TnnhX'C WEATuEP