Seattle's School Board Votes $400,000 in Bonds—and Pockets the Audit Demand
The board funds a debt, hears charges that thousands were mismanaged, then lets an audit resolution die for lack of a second.
The school board last evening ordered the issue of $400,000 worth of bonds to meet the outstanding debt, and also adopted a resolution ordering the employment of ten men to take the next school census.
The bond resolution was prepared by W. H. White, attorney for the board, who read it section by section for such corrections as the board might suggest. It recited that the issue was in accordance with the wishes of the people, who at an election had voted to ratify the debt of school district No. 1. It set forth that the unpaid debt of the district, incurred for strictly school-district purposes, did not exceed 5 per cent of the value of the taxable property, and it authorized the board to borrow money to fund the debt and to issue negotiable coupon bonds bearing interest not to exceed 6 per cent per annum, payable semi-annually. The county treasurer was directed to offer the bonds for sale, to require bidders to deposit 5 per cent of the par value of their bids, and to publish notice of the sale in at least one weekly newspaper in Seattle and also in the New York Times. No commissions were to be allowed, and the bonds were not to be sold below par.
The resolution brought out little discussion. Mr. White attempted to amend it by making payment for the bonds in gold instead of United States currency, but his amendment found no second.
Dr. Churchill then read the following resolution:
"Whereas, grave charges are being constantly made that the funds of Seattle school district No. 1 have in the past four or five years been badly mismanaged; and
"Whereas, several prominent attorneys have given it as their opinion that many thousands of dollars have been lost to the district which may be and should be recovered; therefore, be it
"Resolved, That an expert examination of all books, vouchers and accounts of this board from January 1, 1891, to the present date be ordered made and a report rendered to this board as soon as possible."
Dr. Churchill said he felt satisfied the board had faithfully and conscientiously performed its duties, but there was one item in the adjustment of the old bond issue of 1889 with which he was not satisfied. He claimed there had been a double payment of interest—$10,000 paid on bonds for one year while the bonds were still in the possession of the board—and he thought an effort should be made to recover the amount for the credit of the school district.
Mr. Crockett said the books had already been overhauled at a cost of several hundred dollars, which resulted in finding that a small sum had been paid twice, and he was not in favor of ordering another such inspection. Further discussion developed the fact that the funds in question, instead of being in the hands of the school board, were really in the hands of the county treasurer. This ended the discussion, and no one seconded Dr. Churchill's resolution. That gentleman quietly returned it to his pocket.
Mr. White called attention to the law recently passed by the legislature giving honorably discharged soldiers of the Civil War preference when applying for positions in public employment. It was thought doubtful whether a position under the school board could be construed as a public office; no action was taken. Applications for positions as census takers were read and ordered filed, and the board arranged to take a census of children from June 1 to June 21. The county treasurer's April report was received. The secretary was directed to notify the telephone company to remove its instruments by the first of the month. On motion of Dr. Churchill, the board agreed to confer with the university committee with a view to reconstructing the high-school course so as not to duplicate the university course and to shorten the high-school course by one year. Plans were ordered bought for the T. T. Minor school and the new school. The question of renting the old university building for a high-school building was discussed, but no action was taken.
“Grave charges are being constantly made that the funds of Seattle school district No. 1 have in the past four or five years been badly mismanaged.”
School bond issues and audit fights are still regular features of Seattle civic life; the question of whether public money was stewarded well—and who gets to examine the books—remains a live argument. The 1895 meeting shows how easily a demand for accountability can be buried by procedure.
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