A history of education in Indiana, Part 15

Author: Boone, Richard Gause, 1849-1923
Publication date: 1892
Publisher: New York : R. Appleton and Company
Number of Pages: 482


USA > Indiana > A history of education in Indiana > Part 15


Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).


Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37


// Mr. Jefferson's bill "for ascertaining the mode of locating and disposing of the lands in the Western territory," May 7, 1784, was, three weeks later, indefinitely postponed. Prac- tically the same bill was again reported, March 4, 1785, and referred to a committee of one member from each State, who, the following month, reported a new bill, with the essential features of the former, but including, as a new clause, the provision that there shall be reserved "the central section of every township for the maintenance of public schools, and the section immediately adjoining for the sup- port of religion, the profits arising therefrom in both in- stances to be applied forever according to the will of the majority of the male residents of full age within the same." This is substantially the provision of the ordinance as passed May 20, 1785, with the clause concerning the support of religion left out.


This reservation for schools marks the beginning of a regenerative policy, for the suggestion of which we are doubtless indebted to Colonel Timothy Pickering as much as to any one man. The sentiment, however, was not widely appreciated.


Under date of March 8, 1785, Colonel Pickering, in a pri-


170


UNDER THE NEW CONSTITUTION, 1851-'91.


vate letter, laments that the new bill of Mr. Jefferson makes "no provision for ministers of the gospel, nor even for schools or academies." On July 27, 1787, just two weeks after the passage of the now famous "Ordinance of 1787," the United States Government concluded a sale of land to the Ohio Company represented by Dr. Manasseh Cutler, in whose provisions was a reservation of one section for the support of religion, one for the common schools, and two townships for the support of a " literary institution."


In the enabling act of Congress, April 19, 1816, to which reference has already been made, proposition one, submitted to the Indiana Territorial Convention, required that every sixteenth section throughout the State be reserved "to the inhabitants for the use of schools,"* and one townshipt in the State for a university.


Article IX of the Constitution, subsequently adopted,; said in accordance with the above :


"It shall be the duty of the General Assembly to provide by law for the improvement of such lands as are, or here- after may be, granted by the United States to this State for the use of schools, and to apply any funds which may be raised from such lands, or from any other quarter, to the accomplishment of the grand object for which they are or may be intended. But no lands granted for the use of schools or seminaries of learning shall be sold by the au- thority of this State prior to the year eighteen hundred and twenty ; and the moneys which may be raised out of the sale of such lands, or otherwise obtained for the purposes aforesaid, shall be and remain a fund for the exclusive pur- pose of promoting the interest of literature and the sci- ences, and for the support of seminaries and public schools."


For the next quarter of a century no small part of the legislative care appeared in the frequent, almost annual be-


* None for religion.


+ One township had already been set apart in the State at the organiza- tion of Indiana Territory.


# June 29, 1816.


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 171


cause always tentative, enactments for the preservation of these lands, their improvement, their leasing, their final sale, and how judiciously to invest and make secure the funds arising and hoped for from this magnificently con- ceived endowment. Already, in 1808 and again in 1810, the courts had been empowered to lease school lands acquired under territorial organization. Land trustees had been ap- pointed, one to each township, who might let out the land, not more than one hundred and sixty acres to one man, and for a maximum period of five years.


The first State Legislature (1816) appointed a superin- tendent of the school section in each township, extended the lease to seven years, and, in order to the improvement of the property, required of the lessee that, in addition to the quota of clearing, he put out an orchard of specified size and selection. In 1821, persuaded of the gravity of the situa- tion, the facility of financial blundering among ignorant officials, and perhaps informed of waste of funds, the State Senate appointed a special committee to investigate the con- dition of the school lands, and to report a safe plan for de- riving a revenue therefrom. Various policies were consid- ered-cash sales, credit sales, short, long, and permanent leases, and forms of investment. The disastrous experience of Ohio with leases, as well as a shorter but equally unsatis- factory one in our own State, led to a recommendation of cash sales of land and the investment of the proceeds in State securities.


Three years later, in 1824, township trustees were substi- tuted for the superintendent of the school section, and au- thorized "to dispose of lands to the best interest of the schools." These local officers were thus left large discretion and the law was subject to great abuse. Nevertheless, it was a step nearer schools.


In his message to the Legislature, December 8, 1825, Gov- ernor Ray, in a presentation of the school question, reported the common-school lands at 608,207 acres, which, at two dollars per acre, would produce a fund of $1,216,414. In


172


UNDER THE NEW CONSTITUTION, 1851-'91.


that year the population of the State was about 250,000. It was just beginning to recover from the financial prostration of 1821, was looking forward to certain coveted internal im- provements, and had a small debt, a growing tax-list, but no schools. Indeed, so various was the official control that, while no lands could be sold,* almost every other possible management or mismanagement of them might find illus- tration somewhere in the State and at some time-the term of lease varying from five to ninety-nine years and the con- ditions changing with the locality. To correct the former evil the Legislature provided the year following (1825) that all leases thereafter should be limited to ten years. The time was subsequently still further reduced.


In 1827 the General Assembly, following the lead of Ohio, petitioned Congress for leave to sell the school lands. The request being granted, the State Legislature (January 24, 1828) authorized the sale of all congressional township lands held for school purposes, the proceeds to be loaned and the interest used as tuition. Prior to this the rents of such lands had already been so applied, under the school law of 1824. But the results were very unsatisfactory. The new law was only permissive. Many of the townships re- tained their superintendent of the school section, and much of the land still remained under lease. The proceeds of sales and leases were loaned in the township on local security, and the superintendent or trustees nominally held responsible for its preservation. But the moneys were far from safe. Negligence was common and perversion of funds occasional.


By the school act of 1831, in place of the local manage- ment was substituted a School Commissioner, who was finan- cial agent for the entire county and who held his office for three years. Moneys were to be loaned on real-estate mort- gage only. at six per cent, and for not longer than three years. Where lands were still retained the length of the lease was reduced to eight years. A State loan office was


* Prior to 1828.


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 173


established at Indianapolis, and, upon vote of the inhabit- ants of a township, the commissioners might, in place of local loans, deposit the proceeds of land sales in this central office, and so have the State's guarantee of security. This seemed a wise provision. Already within ten years of the first authorized sale of lands thousands of dollars had been lost. Other moneys remained idle and interest was unpaid. Nevertheless, official records show that less than half a dozen townships availed themselves of the provision and greater security. The State Treasurer's report for 1844 shows but two entries, these townships having deposited in the aggre- gate $837.27. The limit of lease was again reduced, this time (1833) to three years. Legislation was constant, but the dissipation of funds went on. Governor Bigger, in 1832, had said: "The returns from a portion of the counties show their school funds to be well managed. In others they may be safe, but the accounts are in so much confusion that no correct opinion can be formed. In some cases the whole fund has been totally and irretrievably lost."


In consequence of this condition of the school finances and to preserve the funds from further loss, the Legislature of 1843 ordered that all moneys should be deposited with the county treasurer and by him loaned ; providing, further, that " the several counties shall be held liable to the inhabit- ants of the respective congressional townships for the pres- ervation of these funds and the payment of the annual in- terest thereon, at the rate established by law."* This, in theory, was a real forward step. While, even under the first Constitution, the management of the congressional township land and fund was fairly productive, the proceeds were far less than should have accrued from 650,317 acres.


1. The administration throughout the period t was lack- ing in uniformity. The optional feature which left it to the voters of the township to sell or lease, to loan their money through the agency of the State, with the Commonwealth


* Seven per cent.


t From 1838 to 1852.


174


UNDER THE NEW CONSTITUTION, 1851-'91.


for security, or to local borrowers in small sums, and the frequent changes of policy through ill-considered legisla- tion, were a most fruitful source and occasion of incompe- tent public service, withdrawal of general confidence, and unequal interest.


2. Then the system was expensive. "The whole concern as it has been heretofore managed," said a member of the Constitutional Convention and a friend of free schools, look- ing back upon the history of these funds, "is utterly odious in every respect." It neither commanded respect nor in- vited confidence. "The funds have been intrusted to an army of officers," he continued, "whose fees and perquisites must necessarily consume a large part of the income of the various funds, if they be ever so well managed. ... Our present system is extravagant and wasteful, the manage- ment of our school funds costing us annually one third as much as that of the State government."


3. The management of the lands was partial and unequal. Vigo County, with 8,960 acres of school-section land, as against Johnson County, having 12,000 acres, has realized three and one third times as much in permanent funds. Randolph County received originally 11,520 acres, and has derived a fund of $32,354; Bartholomew, with one half the same grant, has a present fund therefrom of $55,115. The Lawrence County grant was three fourths that of La Porte; its invested fund is but one fourth as much. "In one town- ship," said State Superintendent Larrabee in 1853, in his first official report, "the school section happens to be valuable, and sells for a large sum ; in another it is worthless. In one township the section falls on the prairies of the Wabash, where the soil is the richest ever shone on by the sun or wet by the dews of heaven; in another it falls in the swamp or a lake, or on a rocky bluff, where six grasshoppers could not find a living. In one township the fund would support, without a tax, schools all the year; in another there would be little, if any, fund at all."


Such management, a loose and optional system, expen-


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 175


sive administration, and a glaring inequality of privileges, opened the way for losses, and invited peculation. Within fifteen years from the first sale the shortage had reached nearly $30,000.


A table is appended exhibiting the condition of the fund in the several counties at the close of the year 1856, imme- diately following the separation of the two funds, as required by the decision of the Supreme Court in 1854. The state- ment is made to include (1) the number of sections sold, (2) the average proceeds per section, and (3) the total fund from this source.


Table of Congressional Township Lands and Funds, 1856.


COUNTIES.


Sections sold,


Average yield.


Total fund.


1. Adams


11


1,771


$19.551 97


2. Allen.


17.5


2,446


44,027 78


3. Bartholomew.


....


....


14,826 92


4. Benton .


25,222 84


5. Blackford


4


1,728


6,903 47


6. Boone


.. .


.....


18,060 59


7. Brown.


.. ..


.....


30,751 50


9. Cass.


....


...


32,280 14


10. Clark.


....


1,234


6,526 80


11. Clay.


11


1,943


21,781 55


13. Crawford


7


1,312 1,404


16,808 30


15. Dearborn


11


1,707


19,506 30


17. De Kalb


12


1,474


17,684 00


18. Delaware


12


1,907


22,891 26


19. Dubois


·


12


3,346


40,158 13


21. Fayette


5


3,011


15,210 63


22. Floyd


3


4,645


13,963 55


23. Fountain


11


4,062


44,692 45


25. Fulton.


9


1,623


16,011 88


26. Gibson


12


2,557


30,688 54


28. Green .


9


2,319


22,072 47


30. Hancock


.. .


12,070 50


31. Harrison


...


20,194 76


32. Hendricks


...


26,628 58


.. .


15,557 30


12. Clinton.


9,876 00


14. Daviess


11


28,223 62


16. Decatur ..


7,925 80


20. Elkhart.


24,703 57


24. Franklin.


23,632 71


27. Grant.


17,690 84


29. Hamilton


....


.....


8,480 53


8. Carroll


176


UNDER THE NEW CONSTITUTION, 1851-'91.


COUNTIES.


Sections sold.


¡Average yield.


Total fund.


33. Henry


....


34. Howard.


7


2,621


18,430 60


35. Huntington


11


2,640


29,045 85


36. Jackson


16,419 55


37. Jasper


....


19,667 00


38. Jay ..


. . ..


39. Jefferson


10


3,016


24,891 23


40. Jennings


9


1,185


16,266 19


43. Kosciusko


14


1,812


25,377 96


44. La Grange


12


1,438


17,256 80


45. Lake


10


1,207


12,070 56


46. La Porte.


....


52,062 08


47. Lawrence


14


1,824


25,541 00


49. Marion


16


1,390


24,287 83


50. Marshall.


11


1,508


17,430 40


51. Martin


10


2,907


29,381 99


53. Morgan


11


2,685


26,619 98


55. Montgomery


13


1,656


21,118 72


56. Noble


4


3,841


14,928 09


58. Orange


9


1,727


15,960 00


60. Parke


12


2,798


33,580 58


61. Pike .


7,849 99


62. Perry


13


1,972


25,636 56


64. Posey


8,170 35


65. Pulaski


...


.


11,697 40


66. Putnam


15


1,556


24,345 03


67. Randolph


16.3


1,830


30,162 42


68. Ripley


....


.....


18,276 44


69. Rush


....


.....


28,680 91


70. Scott


9,731 87


71. Shelby


12


1,665


20,261 15


72. Spencer.


9


1,380


12,425 30


73. Starke.


5,849 14


74. St. Joseph


...


.....


21,686 67


75. Steuben


....


...


12,322 16


77. Switzerland.


9


1,666


12,266 96


78. Tippecanoe


·


6


3,790


8,642 48


80. Union


4


5,525


23,601 67


81. Vanderburgh.


7


2,727


18,497 35


82. Vermilion


12


2,586


31,047 50


83. Vigo


11.5


4,817


52,368 49


·


.


8,890 84


59. Owen.


·


.


14,281 08


63. Porter


.....


3,784 48


52. Miami.


14,101 77


54. Monroe.


17,756 25


57. Ohio


14,702 00


48. Madison


9,938 11


41. Johnson


17,706 87


42. Knox ..


...


.....


16,278 74


76. Sullivan


31,430 60


79. Tipton.


17,356 10


23,176 34


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 177


COUNTIES.


Sections sold.


Average yield.


Total fund.


84. Wabash


....


.....


15,057 31


85. Warren


22,288 21


86. Warrick .


13


1,510


19,635 28


87. Washington


1


1,036


27,500 73


88. Wayne


12


3,155


45,845 82


89. Wells


1


3,938


24,550 28


90. White


26,444 00


91. Whitley


.


. .


18,948 23


..


The total amount of Congressional Township Fund accu- mulated up to January 1, 1857, was $1,874,430.04, an average of $20,600 to each of the ninety-one counties, and $2,055 for each of the nine hundred and thirty townships. Four hun- dred and seventy-seven townships had sold all their lands at various rates, from $1,036, or $1.62 per acre, in Washington County, to $5,525, or $8.63 per acre, in Union County. In but eleven counties did the average proceeds of the sales exceed $3,000. In twenty-seven the average was less than $2,000.


Although the records are very incomplete, and the con- clusions from them more or less unsatisfactory, the few facts gained are both interesting and suggestive. In Allen County, having 19.5 sections, there had been realized from the sale of 17.5 sections $19,500, or a thousand dollars less than the average of all the counties, while Wells, having ten sec- tions, had sold but one, and yet could report an invested fund from rents and sale of $24,550, or four thousand dollars above the average. Again, Madison, Monroe, Vermilion, and Warrick counties had each left unsold one section only out of an average of fourteen sections, reporting but $25,710 to each county; while Washington County, having fourteen sections out of fifteen unsold, is credited with $27,500. The differences were very great.


The management of the funds and the lands being more or less optional, and always local, gave rise to great diversi- ties and inequalities, necessitating, after 1855, as will appear


178


UNDER THE NEW CONSTITUTION, 1851-'91.


elsewhere,* the proportionally unequal apportionment of other, or the common-school funds, to equalize the revenues throughout the State. As showing this inequality, the fol- lowing table presents, for ten representative counties, the amount of Congressional Township Fund held by each, per capita of the school census:


COUNTIES.


Amount of fund.


School census.


Per capita.


1. Marion


$20,852


51,512


$0 40


2. Vanderburgh


19,325


21,442


90


3. Clay


10,375


9,270


1 12


4. Floyd ...


18,611


9,528


1 95


5. Jackson


16,632


8,286


2 00


6. Benton


39,431


3,947


10 00


7. Union


28,625


2,532


11 31


8. Warren.


46,485


3,907


11 89


9. Jasper.


45,533


3,525


12 92


10. Newton


41,035


2,708


15 15


The difference in the amount per capita of this fund held by the various counties may be accounted for, according to Superintendent J. H. Smart,t in four ways : 1. In some counties the original value of the sixteenth section was greater than in others. 2. In some counties the lands were kept and sold at a time when prices were high, while in others they were disposed of at an early day. 3. In some counties the population has largely augmented since the congressional lands were sold. 4. In one or two cases the lands were held until large towns were built in or near them, and they thus became very valuable.


As early as 1876, townships in seventy-four counties had sold all their school sections, certain ones in the remaining eighteen ; counties holding 9,245 acres, valued at $90,369.


* Sce page 151.


t Sec Report for 1878. p. 88.


Bartholomew, Fountain, Fulton, Gibson, Huntington, Jackson, Jasper, Lake, Monroe, Newton, Posey, Pulaski, Randolph, Spencer, Starke, Vanderburgh, Wabash, Warren.


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 179


Of this, the two counties of Bartholomew and Vanderburgh alone held 944 acres, or one tenth of the whole, worth $53,- 120. Two years later but 8,039 acres remained; that is, there had been sold, in the forty-five years, 567,961 acres, at an average price of $4.18 per acre. By the State report for 1887-'88, 5,161 acres are reported from twelve counties, as shown in the table:


Table of Unsold School Lands, 1888.


COUNTIES.


Acres.


COUNTIES.


Acres.


1. Fountain


354


7. Pulaski


219


2. Fulton


80


8. Starke


240


3. Gibson


320


9. St. Joseph.


840


4. Huntington


320


10. Steuben.


100


5. Jasper


1,280


11. Vanderburgh.


308


6. Newton


800


12. Warren


300


As at present managed, the Congressional Fund is local- that is, township in its application-is received and disbursed by the county officers, the auditor loaning the money on real-estate security, and distributing the revenue to the ro- spective townships, keeping with each a separate account. The book-keeping, incident to this management of the fund, is complicated, and the occasion for losses frequent.


The aggregate fund for the State from this source is ap- proximately two and a half millions of dollars, representing a growth since 1852 of $700,000, or nearly 50 per cent. It constitutes about one fourth of the entire permanent fund, and yields a handsome revenue.


The accompanying table exhibits the annual increase of the fund since 1866, and such aggregates for the years prior to that date as can be accurately determined. Of course, the value of the unsold lands is only approximate, and has been variously estimated in successive years. These lands yield an annual revenue from rents, but not at all in proportion to the values set upon them:


180


UNDER TIIE NEW CONSTITUTION, 1851-'91.


Table showing Growth of Congressional Township Fund.


YEARS.


Total Congres- sional Town- ship Fund.


Estimated value of un- sold lands.


YEARS.


Total Congres- sional Town- ship Fund.


Estimated value of un- sold lands.


1850. . .


$1,764,853 45


$250,000 00


1878. . .


$2,372,175 41


$80,931 38


1854 ..


. .


1,676,717 35


1879. . .


2,372,085 72


133,960 29


1856 ..


1,874,430 04


1880 ..


2,372,285 69


76,857 00


1866 .. .


2,128,227 34


135,179 00


1881.


2,375,261 88


95,092 00


1868.


2,211,867 76


101,502 25


1882. . .


2,365,895 20


65,998 04


1870.


2,232,953 67


135,427 90


1883.


2,404,186 72


65,332 07


1871 ..


2,263,352 66


111,969 00


1884.


2,402,528 55


65,809 00


1872. . . .


2,281,076 69


94,245 00


1885.


2,404,936 82


65,788 00


1873. . . .


2,289,183 76


83,697 18


1886 ..


2,408,469 96


63,388 00


1874. . . .


2,295,778 63


102,293 40


1887.


2,487,806 39


60,802 00


1875 .. . .


2,330,823 37


105,177 25


1888.


2,502,125 27


44,646 3S


1876. . . .


2,351,732 18


90,368 71


1889.


2,450,671 79


45,000 00


1877. ..


2,370,657 94


82,278 88


1890 .. .


2,461,778 97


32,326 00


Of all the States of the Northwest, Indiana, being small- est, received least land; but, excepting Wisconsin, has real- ized also less per acre for it, the average proceeds in Ohio being $5.58 per acre; in Indiana, $3.69. Moreover, the esti- mated value on school lands remaining unsold in Indiana is about $30,000; in Illinois, $2,500,000. For the five States the aggregate proceeds from this congressional grant alone to elementary schools is something more than $20,000,000. This includes a conservative estimate put upon unsold lands, and is, perhaps, too small.


The following table, adapted from Dr. Knight's History of Land Grants for Education, will present other details for study by those interested:


Table of School Lands and Funds in the Northwest Territory.


STATES.


Grant.


Acres sold.


Proceeds.


Average per acre.


Ohio.


704,488


664,488


$3,720,000


.$5 58


Indiana


650,317


648,487


2,500,000


3 69


Illinois.


985,066


976,553


3,700,000


3 78


Michigan


1,067,397


715,761


3,300,000


4 58


Wisconsin


1,458,649


1,204,110


2,430,000


1 87


0.170


ORIGIN AND HISTORY OF THE COMMON SCHOOL FUND. 181


CHAPTER XIV.


SCHOOL FUNDS (Continued).


2. The Saline Fund.


THE enabling act of Congress, looking to the admission of Indiana as a State, provided that the salt springs within the State, and the lands required for their working, not to exceed 23,040 acres, should be granted to the State, subject to the directions of the Legislature. The same act pro- hibited their sale, or their lease for a longer period than ten years at any one time. Along with other conditions im- posed, the lands were conveyed and accepted, even in excess of the proposed grant-23,829} acres, or 37.24 sections.


Some of these properties were worked by the State in the following years, yielding a fair profit; but the proceeds were turned into the general treasury. In 1831 the total rents from the salt springs reserves reported to the State were $143.50; in 1835 they were $234.12. In 1832 Congress was petitioned by the State for the privilege of disposing of these lands. The request was granted, and at once the Legislature was empowered to sell them "at a price not less than public lands " (one dollar and a quarter per acre), "the proceeds to be applied to purposes of education." The year following, having been surveyed and formally appraised, the lands were put upon the market. The proceeds, by act of the Assembly, were to be paid into the State treasury, securely loaned, and ultimately "devoted to education." In 1834, by special act, the proceeds were regarded as a per- manent fund and the "income devoted to the use of com- mon schools." Not for ten years, however, were the moneys so applied to educational or other uses. They were merely allowed to accumulate in anticipation of a time when they might be sufficient in amount to justify their distribution.


Their aggregate accumulation up to 1835, including pro- ceeds of sales, rents, and interest on loans, amounted to $6,041.56, of which more than half ($3,800) was derived from


13


182


UNDER THE NEW CONSTITUTION, 1851-'91.


the Orange County reservation. This was loaned, generally in small sums ($60 to $100), to farmers throughout the State.


But the accumulation was slow. The land offered was not of the best. Much of it, indeed, was almost worthless, though parts were fertile and desirable for settlement. The grant comprised certain springs and the lands about them, chiefly in Washington, Orange, Jackson, Monroe, and Mor- gan Counties. French Lick (since famous as a health and pleasure resort), Royse's Lick, and Jackson's Lick were the best known, and environed by some really valuable land. This sold early, the proceeds being held in the State treas- ury, or loaned with other moneys with mortgage security. But there is a still better reason why the proceeds were withheld from active employment in the schools-there were no schools. This was in that dark decade in Indiana from 1830 to 1840, when, for a period, every year witnessed a more dangerous illiteracy and more discouraging promise. There was abundant legislation but little schooling.




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