Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-03
fairfax to Ask State
For Aid on Schools
Banker Urges
Assembly Help
In Bond Trouble

Fairfax County is preparing to
ask the State Of Virginia for
direct assistance in financing its
school construction programs.
In a separate development, q
leading investment banker.
Walter w. Craigie of Richmond.
today called for a special session
of the General Assembly Ito
clear UP the smog" surrounding
school bond issues.
Mr.. Craigie called for a posi-
tive declaration by the State that
it would stand behind the issues
sold by the political subdivisions.
The Fairfax School Board last
night decided to set up COM
mittee to draft a request to Gov.
Stanley, asking State assistance
to make school construction
financing "less difficult and less
expensive"
81 Million Bonds Sold
The county has sold ST million
of $22 million in school bonds
approved by the voters about q
year ago.
Faced with drastically in.
creased costs of selling school
bonds, the county may ask the
State to underwrite future
county bond issues OF to borrow
the money for local school con-
struction on its own credit and
then issue the money to local
Jurisdictions.
The first block OF bonds, 81
million worth, was sold last Feb
ruary at an interest rate of 2.99
per cent. But when the school
board opened bids two weeks ago
on a second block of So million.
the lowest bid. which it accepted.
was 4.74 per cent.
During last summers special
session of the Legislature, Mr..
Craigie warned that Gov. Stan.
lley's plan to Withhold State funds
and automatically close schools
that integrate under court order
would have an adverse effect on
the sale of bonds.
In the case of Fairfax
County" the head of the Rich
mond investment firm said. I'VE
estimate S318,940 twas spent)
in additional cost over what they
would have sold for, even in
the present tight money mar
ket."
/ Mr.. Craigie recommended that
the General Assembly extend Ia
towns and cities the coveragc OF
a State law that now applies
only to counties. At present, the
law makes it mandatory for the
State to Withhold certain funds,
such as alcoholic beverage prof.
its, from any county that de-
faults on interest OF principal
Of bonded debt.
Fairfax School Supt. w. #.
Woodson said last night, I'VE
are facing a critical situation,
with our growing enrolment. of
financing needed expansion with
out bankrupting our people"
Board Delays Action
4 The board deferred any de-
cision on what interest figure
should be contemplated for an
So million bond issue which it
expects to offer in April, in the
fiscal 1858 budget which is now
being prepared. Assistant Supt.
Robert Walker suggested the
board approve in advance a
figure of 4 per cent as the max
imum allowable interest rate on
the So million issue. for budget
purposes.
But board member Clyde
Gleason asked, What reason
has anyone to believe that we
can sell any bonds in the future
for less than the Ala per cent
this last issue is costing ns?"
MIR. Walker replied. We've got
to budget on some figure"
Fears Arbitrary Limit
Mr. Gleason asked the board
if it was ready to say that, if
bond buyers bid more than 4
per cent, I'VE would let the
school building program stop,
just because We had set an arbi-
traly limlt?"
In last years budget the
School Board allowed for an an
ticipated 3 per cent cost in SELL
ing bonds. That figure proved
to be accurate for the February
issue. But the Ala per cent
cost of the most recent issue was
the highest Fairfax County had
ever paid and one Of the high
est ever recorded in the State.
Following the acceptance Of
that bid, board members ques-
toned the position they we're in
OF apparently having to accept
or reject bids at the time they
were open rather than giving
them longer consideration.
School Board Attorney John
Alexander later submitted his
resignation, saying the board
apparently had no confidence"
in him or his legal advice in the
matter.
Resignation Regretted
The board last night accepted
Mr.. Alexander's resignation
"regretfully" and with appre-
citation for his conscientious
services" during the six years
he served the board. They
asked Supt. Woodson to NOM
mate successor as school board
attorney before the sale of the
last bond issue is completed in
New York on January Is.
School Board Chairman Hills
Lory said that he was sure Mr..
Alexander has the confidence
of the entire school board"
Both he and Mr.. Gleason said
any question they may have
raised about the boards legal
nnsitinn in having to accept or