i e n REPORT Senate Committee to Investigate the Methods and Practices, Expenses / ^ and Disbursements of the Public Schools MARCH, 1911 TRENTON, N. J. MacCrgllish & QuiGLBv, Statb Printers. v^ 4> C'^ \^^' REPORT. To the Senate of the State of Nezv Jersey: In 1909 the Senate appointed the undersigned Senators to act with the State Board of Education as a Committee to investigate the methods and practices, expenses and disbursements of our public schools. ' . In 1910 the Committee was continued. In both years the State Board of Education selected Samuel St. John McCutchen of Plainfield, William H. Morrow of Belvidere, and William G. Schauffler of Lakewood, to act as its representatives. In 191 1 the Senate continued the Committee, substituting, however, for the State Board of Education, Messrs. McCutchen, Morrow and Schauffler. Such Committee respectfully submits the following report : During 1909 numerous written questions were prepared and submitted to' the Principals, Superintendents and Boards of Edu- cation throughout the State. The object of these questions was to obtain information about: The revenues of the school districts, the sources from which they were derived, the objects for which they were disbursed and the care exercised in their management and disbursement. The land devoted to school purposes, the methods pur- sued in its purchase, the buildings thereon, the practices followed in and about their construction, their present condition and the insurance upon them. The character of text-books and supplies and the meth- ods employed in their purchase and distribution. The attention given to the physical condition of the children and to what extent, if any, they were examined by physicians. The character of the intellectual training and the courses of study and whether or not any kind of uniform- ity prevailed. The provision, if any, made for children who, because of physical or mental defects, are below the normal. The supervision given by school directors to Superin- tendents, Principals and Teachers, by Superintendents to Principals and Teachers, and by Principals to Teachers and pupils, and To secure suggestions from those who were in daily contact with our schools. The questions were framed sO' that in some measure the an- swers of Principals would serve as a check upon those of the Superintendents and Boards, of Superintendents upon Princi- pals and Boards and of the Boards upon Superintendents and Principals. One thousand one hundred and nine (1,109) ^^^^ of answers were received, the majority before March, 1910. Most of them were complete, and in many valuable suggestions were made. The information and suggestions so received were such that they, coupled with requests from different parts of the State, led the Committee to the conclusion that public hearings were necessary. Such hearings have been held in every county in the State and fifty-two (52) school districts have been publicly investigated. In almost all districts complaint was made that the State was gTjilty of undue delay in the distribution of funds. Thorough public examinations were therefore made of the acts of the State Treasurer and Comptroller and of the Trustees of the School Fund. The Committee also held public sessions, at one of which it examined twelve (12) of the City Superintendents; at another all of the County Superintendents and at another the State Su- perintendent and some of the members of the State Board of Education. In all sixty-two (62) public hearings have been held, and five hundred and sixty-three (563) witnesses sworn and examined. The testimony has been reduced to writing and consists of five thousand four hundred (5,400) typewritten pages. Such testi- mony is submitted herewith, as are also the one thousand one hundred and nine (1,109) sets of written answers received from Boards of Education, Superintendents and Principals. It is upon such testimony and written answers, supplemented by the per- sonal observation of the Committee, that this report is based. To give a detailed review of all the evidence would so extend the volume of the report that but few would have the patience to read it. It wi^ll, therefore, be our object to explain as tersely as possible, conditions as we find them, to- point out evils which exist or have existed, occasionally giving illustrations, and to make recommendations, the adoption of which we believe to be desirable. The school year commences July i , and closes with the follow- ing June. The amounts expended by the local Boards for gen- eral school purposes as distinguished from building and im- provement purposes during the year beginning July i, 1909, and ending June 30, 19 10, aggregated $12,259,8168.58. Of this amount $7,652,981.53 was paid over by the State, and the bal- ance represented moneys which were raised by the different school districts. Some few districts are now maintaining their schools with the funds which they receive from- the State. Nearly all, however, find it necessar}^ tO' raise additional funds. Some time prior to the close of the school year, the various Boards of Education estimate the amount which they deem necessary for the ensuing year. From this amount they deduct what they expect to receive from the State and they request their school district to raise the difference by local taxation, Tbe request is generally granted. Local taxes, however, are not collected until December, and it is January, and sometimes February, before moneys so acquired are paid to the local Boards. Usually the local appropriation is paid over with reasonable promptness, irrespective of whether the total tax has been paid or not. There is, therefore, little or no complaint by the various Boards that they do not receive moneys raised locally within a reasonable time after their collection. There is, however, al- most universal complaint that the State is undu,ly slow in the distribution of its funds, and that, because of its delay, the school districts find it necessary tO' borrow money, and generally at 6 per cent., to enable them to maintain the schools during the first six months of the school year. Such universal complaint, urged in some districts with considerable vigor, merits careful consideration. In view of the belief entertained by many that the sources from which the State derives the funds which it distributes for school purposes are sacred and inviolable, it may be well at the outset to call attention to the fact that this belief is not well founded. It is the duty of the Legislature to provide for the maintenance and support of a thorough and efficient system of free public schools. With one exception the Legislature may exercise its discretion as to what funds should be used in the performance of this duty imposed upon it by the Constitution. That exception is the income from the State School Fund. That income the Constitution commands shall be annually appro- priated to the support of the free public schools. Aside from such income the Legislature may, from time to time, make such changes in the sources of school revenues as to it may seem proper. The money annually distributed by the State among the school districts is made up as follows : A. Of at least $100,000 paid out of the Treasury. B. Of the State school tax, C. Of $200,000 derived from the income earned upon the State School Fund, D. Of a certain part of the Railroad tax, E. Of an amount equal to the funds raised in the districts for manual training. THE $100,000 APPROPRIATION AND THE STATE SCHOOE TAX. The $100,000 paid out of the Treasury and the State School Tax may be considered together. Section 177 of the School Law provides that there shall be annually appropriated from the State Treasury a sum not less than $100,000. which shall be apportioned among and paid to the several counties in the proportion that the ratables of each county shall bear to the total ratables of the State. The same section also provides that a State School Tax shall be annually collected, the amount to be such as will make, when added to the appropriation from the Treasury, a sum equal to 2% mills on each dollar of valuation oi the taxable real and personal property in the State. Prior to the ist of February in each year, the State Comp- troller appoTtions the tax among the several counties, and after action by the County Collectoirs and local Assessors it is assessed and becomes due and payable before the close of the year. By §178 it is made the duty of the County Collectors to pay to the State Treasurer on or before the 20th day of January following the assessment the quota of the State School Tax from his county. Section 179 provides that lOi per cent, of the State School Tax shall be known as a reserve fund and shall, on or before the 15th day of February in each year, be apportioned among the several counties by the State Board of Education equitably and justly according to its discretion. In the same section it is provided that the State Superintendent shall, on or before the 15th day of January next ensuing the apportionment, draw an order on the State Comptroller in favor of each County Collector for 90 per centum of the amount of the tax paid by him to the State Treasurer. In such section it is also provided that the State Superintendent shall draw his order in favor of each County Collector for such portion of the reserve fund as shall have been apportioned to his county, which order shall be payable when the total amount of the reserve fund shall have been received by the State Treasurer. The entire reserve fund is usually in the Treasurer's office on January 20th, because by §178, County Collectors are obliged to pay the entire tax due from their counties on or before that day. The State School Tax has been made the subject of attack in a few districts. In behalf of Weehawken a carefully prepared brief has been submitted to us. It is claimed that the law is complicated and difficult to understand. It is. At first it seemed to some of the Committee that it was not made the duty of any State official to disburse the tax until one year after it 8 was received. This opinion was formed, because it is made the duty of the County Collectors to pay on or before the 20th of January and of the State Superintendent to issue orders for the distribution of 90 per cent, on or before the 15th of January. On what theory it was made the duty of the Superintendent to issue orders for the distribution of a tax before it was paid, we do not know. On first reading, it would occur to many that January 15th meant in the year following- payment. A careful reading shows that such is not the intention. Even if there were ambiguity, the statute has received a practical construc- tion by State officials which results in the distribution of 90 per cent, of the tax immediately upon its receipt. The law might be made clearer in some respects, and doubtless will, when all our Tax Laws are made the subject of a careful and scientific examination. It is also urged that the Law is unnecessary, because the State turns back to the County Collectors substan- tially the entire amount received from them. If the Legislature was not charged with the duty of providing a thorough and efificient system of public schools, there would be good reason for insisting that each county, or in fact each district, should raise such funds as its citizens deemed necessar\^ for the kind of schools which suited them. The Legislature has no assurance that each district would raise for school purposes an amount equal to the State School Tax. In fact this Committee is con- vinced that some would not and that their schools would soon be anything but thorough and efficient. We cannot, therefore, recommend the repeal of the law. Home rule for each district as to amounts to be raised and disbursed and the kinds of schools to be maintained cannot well be urged without an amendment to the Constitution. Changes in the method of distribution are also suggested. No complaint has been made that each county does not receive back substantially all that it pays. Vigorous complaint is made that the method of distribu- tion within the county is unfair and that some districts receive much more than they pay and some much less. Weehawken furnishes a striking illustration. There is re- turned to it about 72 per cent, of the State School Tax which it pays, while the adjoining districts of the Town of Union, North Bergen and Guttenberg receive approximately i6o. 174 and 216 per cent, respectively oi what they pay. As complaints of this kind have been made by more districts in regard to the Rail- road Tax, we will consider the matter in that connection. Suffice it to say, in passing, that we do not believe that anyone ever has devised or ever will devise a system of taxation which will result in a pecuniary return to each community exactly commensurate with the amount paid. The problems of taxation are very difficult and no doubt will sooner or later be made the subject of scientific study in this State. For our part we are not prepared to recommend any change in the State School Tax or in the method of collectinp- and disbursingf it. '& In §iSi it is made the duty of the County Collector to receive and to hold in trust that part of the State appropriation and State School Tax apportioned to his county and to pay the same on the order of the County Superintendent to the custo- dians of the school moneys of the several school districts of his county. By this section it is within the power of a County Superin- tendent to delay the distribution among the local school districts even after the Collector of the county in which such districts are located has actually received the money. Complaint has been made to your Committee that in one of the counties of the State the County Superintendent has this very year delayed the delivery of orders upon the County Col- lector. Such delay, whether intended or not, accrues to the advantage of the bank which has on deposit the funds received by the County Collector. This Committee believes that it should not be within the power of the County Superintendent to favor a banking institu- tion to the extent which §181 permits. 10 First Recommendation. Section igi should be amended so that it shall be made the duty of each County Stiperintendent to deliver Orders in favor of districts that have paid their School Tax and have complied zvith the law as soon as his County Col- lector has received moneys from the State, and so that it shall be made the duty of the County Collector to honor such orders without delay. THE STATE SCHOOL FUND. With regard to the State School Fund, complaints were made to your Committee, substantially to the effect that when the Trustees of the School Fund purchased bonds directly from school districts, they paid only par, whereas to brokers they always paid more than par, and that certain brokers were unduly favored. These charges were carefully investigated. The State School Fund is under the control and direction of the Governor, the Attorney-General, the Secretary of State, the State Comptroller and the State Treasurer, who by § i66 of the School Law are constituted a Board of Trustees of the Fund. On October 31st, 1910, the Fund was invested as follows: Bonds, $3,942,480 00 Stocks, 146,500 00 Bonds and Mortgages 280,793 33 Riparian Leases, 459,516 63 Real Estate, 19,438 44 Cash in Bank, 472,779 98 Total ; $5,321,508 38 Section 170 of the School Law provides that moneys belong- ing to the School Fund shall be invested by the Board in the bonds of the several school districts of the State, or in bonds of the United States, or of this State, or in bonds of any county, city, incorporated town, township or borough of this State, the total indebtedness of which shall not exceed in the aggregate 15 per cent, of the total assessable valuation of all taxable prop- erty therein. II The Committee obtained a list of all bond purchases by the Trustees during recent years. With such information before it, three public hearings were held and we find that almost one-fourth of the bonds held by the Trustees at the close of the last fiscal year were sold to them within the past six years by or in behalf of two individuals. No doubt such sales were effected because their offerings were the best at the time of their acceptance. Whether, however, they made the best offerings because they had the most intimate knowledge as to when the Trustees would make investments, or because they had knowledge of the offerings made by other brokers, this Committee is not prepared to say. Some of the circumstances attending sales, however, were such that the pro- cedure should be entirely reformed. A few illustrations mav serve to indicate the character of the evidence which was adduced. Though we dislike to mention names in our report, still from our experience it would seem as though practices which to us seem improper can bg checked only by publicity. In 1906 the Board of Education of the town of Guttenburg advertised for sale $53,900 of bonds. Several bids were re- ceived, all slightly above par. They were rejected upon the ground that they were too low. In May, 1907, R. M. Grant & Co. offered to sell the issue to the Trustees at 110.79. I^'^is offer was made before Grant & Co. ever made any formal offer to the Guttenberg Board of Education tO' buy. The Trustees agreed to buy ten at 110.79. Three weeks later, Grant & Co. made a formal offer to the Guttenburg Board to buy the entire issue at par. Their offer was accepted. They never took the entire issue, but succeeded in obtaining ten, for which they paid only $9,101.00. Why only ten were delivered, and why less than par was paid, was not clearly disclosed, chiefly because those who must have known the reasons either could not, or what is more likely, would not, remember. What, however, was more surprising was that the Trustees waited from May, 1907, until December, 1907, for the ten bonds which they agreed to buy from Grant & Co. In December, 1907, the Trustees accepted the ten bonds, pav- 12 ing Grant & Co. $11,076, almost $2,000 more than they had paid to the Board of Education of Guttenburg. A few months later, the Mayor of Guttenburg tried to sell the balance of the bonds to the Trustees. The Trustees agreed to take and did take twenty, not, however, at 110.79, the price paid by them to Grant & Co., but at 106. During 1905 the Trustees purchased eight lots of School Bonds, the aggregate par value of which was $155,650. Two lots aggregating $28,500 were purchased directly from school dis- tricts and part paid therefor. Six lots, aggregating $127,100, were purchased from brokers and from a bank, and par plus pre- miums ranging from 2.15 to 11.8 paid therefor. One lot amount- ing to $20,000 at 102^ was purchased from a well-known bond house, Messrs. Parson Leach & Co. Two lots, one of $28,150 at 104, and the other of $18,000 at 105, w^ere purchased from W. E. Jackson & Co. Xo sale was made by this hrm prior to 1905, and none was made after 1907. We were unable to locate Mr. Jackson. It appears, however, that at one time he was an employe of Mr. Howard Stokes, and that he and Mr. Stokes were, during some period which the latter could not recall, engaged in business under the name of W. E. Jackson & Co. Of the remaining three lots, two were sales in the name of The Merchants National Bank of Newark, and consisted of $20,000 at 104.33, ^^'^^ $18,000 at 102.15; the third was in tlie name of Eisele & King, and consi-sted of $23,000 at 1 1 1.80. The bonds sold in the name of The Merchants National Bank, were bonds held by it as collateral for loans to Howard Stokes, and the proceeds of the bonds were credited to his account. The bonds sold in the name of Eisele & King were bonds of the Town- ship of Teaneck, which had been purchased bv W. E. Jackson & Co. Whether Jackson & Co. sold to Eisele & King, or whether the sale in the name of Eisele & King to the Trustees was for Jackson & Co., the Committee cannot say. It also appears that at some period Mr. Howard Stokes and Mr. R. E. Grant were co-partners. During 1905, '06 and '07, sales of bonds to the Trustees by Grant & Co., and of bonds in which Mr. Howard Stokes appears 13 to have had some interest, aggregate approximately $700,000. No sales were made by Mr. Stokes in his own name during those yiears, but comimencing in 1908 Jackson & Co. disappear from the list of vendors, and Mr. Howard Stokes appeared. If Jack- son & Co. had been a well-known bond house, and if it were the custom for banks to repeatedly make sales tO' the Trustees, their suspicion would probably not be excited by the fact that so many sales were effected by them. As, however, Jackson & Co.'s existence seems to correspond with the three years, 1905-06 and '07, and as it was not usual for banks to make repeated sales to the Trustees, it would seem; as though they should have made some inquiries. The fact is that a party in interest in such sales was a brother of one of the Trustees. We believe that it is the dutv of each Trustee to^ fully inform' himself about all purchases, and that he cannot leave the responsi- bility to some other member. If he could, there would be no advantage in having more than one Trustee. What inquiries, if any, were made by each of the Trustees we do' not know, as all were not examined. Whether incjuiries were made by any does not appear. During the years 1908, '09 and '10, purchases from Grant & Company, and from Howard Stokes, and from third parties, of bonds, in which the Committee believes Mr. Howard Stokes had somje interest, bring the total purchases from these two sources for the six years commencing with 1905 and ending with 19 10 to at least $1,000,000. It has not been possible to ascertain the profit made by the brokers, but from such figures as we have been able to obtain we estimate that it was at least $60,000. The Committee has been unable to find any satisfactory ex- planation as to why, when the Trustees purchased directly from th& Boards of Education, they paid only par, whereas when they purchased from brokers they always paid more than par. Neither has it been able to find any satisfactory explanation as to why SO' many sales were effected by or in the interest of two brokers. If the two were among the largest bond brokers in the country, we might assume that it was because they had many more issues to sell and naturally miade the largest number of sales. Such an explanation, however, cannot be made, especially as we find that one of them, for soiiie time past, has been devot- ing- a great part of his time to work other than the sale of bonds. Possibly the method in which inirchases of bonds are made may offer some explanation. It appears that the Clerk of the Trustees of the School Fund keeps a list of thirty-two (32) bond brokers. When money is ready for investment he sends notices at times to all and at other times only to some on his list. Bids are received by him' through the mail or personally. There is not and does not appear to have ever been s.ny definite and stated time and place when all bids would be opened so that all bidders could be assured that there was no' undue favoritism or that noi one bidder was able to learn the figures of those preceding him. It may well be that no bidder has received infoTmation as to what others have bid, and it may well be that it is through inadvertence that some bond brokers are not always notified when the Trustees are ready to invest funds. The practices which are pursued, however, are such as tO' lend themselves very readily to unfair dealing and naturally to excite suspicion. We cannot understand how it is that the Trustees, during the past six years, have always paid brokers more than par and school districts only par, and have made so many purchases from a few brokers without having had their suspicions aroused as to whether they were acting for the best interests oi the State. While we regret tO' say it, we l>elieve that the Trustees, during the past six years, have not exercised that care and caution which the ordinary prudent business man would in the management and investment of his own funds. Methods which lend themselves to favoritism, if people are in- clined to show undue preference, should be stopped. Second Recommenadtion. The Trustees of the School Fund should encourage sales directly by school districts so as to save the profit zvhich is usually made by brokers. It should be made their duty to buy directly from school districts whenever possible. When funds for investment amount to $100,000, it should be their duty to advertise in a leading financial paper to the effect that bids zvill be received at a certain time and place. All bid si should be received in sealed envelopes at such time, and all should be opened in the presence of the bidders and forthzvith posted so 15 that each bidder can see every hid. The Trustees should have a reasonable time to study the offerings and they should have dis- cretion as to zvhich to accept, but when they select one that is not the best in price they should briefly state in zvriting their reasons. In the event of any school district offering to sell directly, before the bid of any broker has been accepted, it should be zvithin the power and discretion of the Trustees to accept such offer if they deem it wise so to do. No purchase, except at par, from school districts, should be permitted unless there has been adver- tising for bids. All bonds zvhich may hereafter be purchased, as zvell as all bonds zvhich have been purchased, should be registered in the name of the Trustees, and the fact ihat the Trustees are the ozuners should be endorsed upon them, so that in event of loss they zmll he non-negotiable. Tvvoi hundred thousand dollars of the income of the State School Fund was distributed among the County Collectors in Februaiy O'f last year. Section i8o of the School Law provides that the State Comiptroller shall draw his warrant on the State Treasurer in favor of the County Collector oi each county for the portion of the income O'f the State School Fund to^ which the county shall be entitled whenever the County Collector shall present an order for the same, drawn by the State Superintendent of Public Instruction. We find no provision making it the duty of the State Superintendent to issue orders in favor oi the County Collectors at any stated tim..e or when the income shall amount to any given sum.' The time when the order shall be made by the Superintendent should not be left tO' his discretion. The State School Fund is now in such condition that $200,000 oi incom'e can be safely distributed in January of each year. Third Re;commbndation. Section iSo should be amended so as to make it the duty of the Superintendent of Public Instruc- tion to issue his order in favor of each County Collector on or before the fifteenth day of lanuary, in each year. i6 THK RAILROAD TAX. In 1906 the Legislature enacted a law (Chap. 146) wherein it is provided that after deducting a sum equal to one-half of one per cent, of the total valuation on the property described in Subds. I, 3 and 4, of section 3 of the Railroad Tax Act, the total tax on such property shall be devoted to^ the maintenance and sup- port of the schools, and that the same shall be appo' cent, of its capital and surplus, but in no event ex- ceeding its capital and surplus. Such excess over jj j/j per cent, should not be maintained for a longer period than one zveek. Among banks of equal strength, preference should be given to those zvhich zvill pav the best rate of interest. School moneys should be segregflted and placed separate and apart from State moneys zvithin five days after their receipt. The $2,41^,000 of the Railroad Tax nozv^ on deposit zmth various banks should be paid forthzvith to the schools. From our examination we find that the complaint is well founded that the State is unduly slow in the distribution of school moneys, and that, as a result, the school districts are com- pelled to borrow, usually at 6 per cent. The practice pursued by the State results in an annual interest charged to the dis- tricts of at least $125,000. What is worse, the schools have never been given credit for the interest on the Railroad Tax allotted to them. That interest, which amounts now to at least $30,000 a year, the State appropriates to its own use. The pres- ent system is an admirable one for the banks of the State, as it enables them to loan the school districts their own money. In the past, owing to litigation about the Railroad Tax, there was probably reason for delay in making a distribution. As there is no longer any reason for delay, distributions should l>e promptly made. The law should be framed for the benefit of the schools rather than the banks, and it is with that end in view that we have made the above recommendations. BOND ISSUES. The moneys received by the school districts from the State and those received from the District School Tax are devoted to general school purposes. To secure funds for the purchase of land, the erection and furnishing of buildings and for addi- tions, repairs, alterations or improvements, bonds are issued. In cities such bonds are issued by the municipality. In the major- ity of the school districts, however, i. c, in the towns, townships and boroughs, they are authorized by the legal voters at the annual or at a special school meeting held pursuant to public notice. When so authorized, they are issued in the name and under the seal of the district, and they are signed by the Presi- dent of the Board of Education and attested by the District Clerk. Such bonds as well as the school bonds issued by the cities may be sold at public or private sales at not less than par. In some districts, advantage is taken of the provision permit- ting private sales. In fact, some brokers when thev learn that a school district proposes to issue bonds, immediately commence negotiations for their purchase. It has been urged upon the Committee that purchases have been made by brokers who liaAe had reason to believe that the Trustees of the School Fund would in turn buy the whole or some part of the issue from them. From what we have heretofore stated, it is clear that brokers 23 frequently re-sell to the Trustees some of the bonds which they purchase from the districts. In some instances the dates o£ purchase and re-sale were sO' close as to excite suspicion. In the Guttenburg case, to which attention has heretofore been called^, the formal offer by the broker to sel^l to the Trustees actually antedated his formal offer to buy from the district. Where the purchase by a broker from a district was closely followed by his sale to the Trustees, it would seem as though, had the Trustees displayed as much zeal in the interest of the schools as the brokers displayed in the pursuit of their business, the income of- the School Fund would not have been depleted by the profits made by brokers. The Trustees had equal — in fact, better — means of knowing that districts proposed to issue bonds, because the proceedings relating to their issue are, in accordance with the law, always submitted for approval to the Attorney-General, who is one of the Trustees, and a certified copy of the proceedings filed in the office of the State Superintendent. There has been carelessness, we might even say gross negli- gence, if not actual dishonesty, connected with some issues of bonds. The evidence upon such and other matters connected with school moneys and their disbursement is striking proof that the people rarely receive any better government than they desire. In the majority of the school districts, bonds are authorized by the legal voters at the annual or at a special school meeting. It is fair to assume that if the voters do not take enough interest to vote at the school meetings for the election of members and the expenditure of moneys, they take no interest in the acts of the members. Throughout the State we find that comparatively few voters take any interest in school elections. It is not un- common for members to be elected at a meeting at which not five per cent, of the voters exercise their right to vote. Neither is it unusual for large issues of bonds to be authorized at 'a school meeting at which not even ten per cent, of the voters cast their ballots. By way of illustration O'f evils which it is very difficult to prevent by legislation and for the existence of whichi the legal voters are really to blame because of their indifference,, we will refer to the issue by West New York in 1907 of bonds; of the par value of $105,000. 24 In July, 1907, the Board adopted resolutions to the effect that $105,000 would be required for the purchase of land and for the erection and furnishing of a new school-house. A special meeting of the legal voters was called. At the time there were approximately 1,700 legal voters in the district. Only 131, less than 10 per cent., voted. Of that 131, 117 voted in favor of the proposed plan of the Board. In August, the Board advertised for bids on the bonds, the interest on which was 5 per cent. None was received, owing no doubt to the financial depression then existing, yet, in that very month of August we find that the Trustees paid to R. M. Grant & Co. @ 11 1.74 for $17,000 of borough of Avon-by-the-Sea 5 per cent, funding bonds. On September 17th, the bonds were approved by the Attorney- General, and on October 28th the Board resolved to increase the interest to 6 per cent, and to issue the bonds as of November ist. Inasmuch as no bids were received as a result of advertising, the Board, at the suggestion of the Clerk, Mr. Maehrlein, con- cluded that each member should try to obtain private bids. In November, 1907, W. J. Hayes & Sons offered par for the bonds. No attempt seems to have been made .to sell to the Trustees and no attempt to buy the whole or any part seems to have been made by the Trustees. In November, 1907, the very month when Hayes offered to pay par for the West New York 6 per cent, bonds, which offer the West New York Board resolved on November nth to accept, we find that the Trustees purchased three lots of bonds, to wit: $i3,5cx> of Little Ferry 6 per cent, bonds from R. M. Grant & Co. @ no, and $16,000 Matawan 5 per cent, school bonds @ 103.56, and $15,000 borough of High- lands 5 per cent, water bonds @ 106.50, from The Merchants National Bank of Newark, which credited the proceeds to Mr. Howard Stokes. The Little Ferry bonds were dated June 5, 1907, and paid for by the Trustees, November 12th. The Mata- wan bonds were dated November ist, 1907, and paid for Movem- ber 1 2th. The Highland water bonds were dated September 2d, 1907, and paid for November 19th. In November, the West New York Board of Education ac- cepted the office of Hayes to purchase the bonds at par. In December the Board passed a resolution to the effect that as 25 W. J. Hayes & Sons were transacting business as bankers and brokers in the city of Cleveland, the purchase price of the bonds should be left on deposit with them, subject to the orders of the Board. The Board also resolved that no accrued interest should be demanded from Hayes, and authorized the President and the Clerk to enter into a contract with him in accordance with the resolutions. The negotiations for the sale to Hayes seem to have been carried on chiefly by Mr. Maehrlein. the Clerk of the Board. On December 30th, 1907, Mr. Hayes met the Clerk and the President of the Board in a hotel in New York City and produced, for their signature, bonds which he had caused to be prepared. For some reason which is not clear — owing chiefly to the fact that Mr. Maehrlein, who was examined, declined to answer, on the ground that he was under indictment — the seal was not affixed to the bonds. A trip tO' Boston on the midnight train was suggested, and Mr. Hayes and the President of the Board and Mr. Maehrlein took that train to Boston, taking the seal with them. The following day, December 31st, the bonds were sealed and delivered to Mr. Hayes at his Boston office. There is some suggestion that, at the time of their surrender, $5,000 was paid by Mr. Hayes. The President of the Board testified that Mr. Maehrlein informed him that he had received $5,000, but that he had returned it. Whether Mr. Maehrlein actually received $5,000 and whether, if he did receive it, he returned it, has not been made clear, owing chiefly to his refusal to answer questions on the ground that he was under indictment. Oine thing is clear, the Board of Education of the Town of West New York never received any money for the $105,000 of bonds. In May, 1908, they retained counsel to institute proceedings for the recovery of the purchase price of the bonds, or in lieu thereof, for the recovery of the bonds. As a result of the efforts of counsel, thirty-eight (38) bonds were recovered. vSo far as the Committee could discover, there are outstanding $67,000 of bonds, presumably in the hands of bona fide purchasers for value. The Board of Education of West New York has ex- pended thousands of dollars in its efforts to recover the bonds or their value, and in addition to the outlay of such money, is confronted with the possibility, if not the probability, of having 26 to pay $67,000 of bonds and of having nothing whatsoever to show therefor. Some of the members were indicted, but so far as the Committee, has been able to learn, no one of them has ever been tried. It is unfortunate that the people of V\'est New Yorjc will sustain the loss of at least $70,000 because of the actions of the members of the Board whom they elected. Seventh Recommendation. No school bonds should be sold at private sale unless they have been first offered to the Trustees of the School Fund. The Trustees should not be per- mitted unthin one year after their refusal to buy directly from a district to purchase the ivhole or any part of the issue from brokers. No bonds shoidd be signed, sealed or delivered except zvithin the State. No bonds should be delivered to any pur- chaser other than the Trustees of the School Fund, except upon payment in cash or by certified check drawn to the order of Hie Custodian of School Moneys, for the full purchase price. In the city of Newark the Board of Education has been ad- vised that it cannot enter into contracts for the purchase of lands or for the erection and furnishing of school buildings unless the money to discharge the contracts is actually in hand. Such advice is followed, and as a result there had been accunui- lated in banks at the time of our investigation, $2,481,610.58. The difference betv^een the interest received on the proceeds of bonds and the interest paid on the bonds was a loss amounting to about $60,000. In every other district which we examined it was assumed that contracts might be entered into as soon as the appropriations were dul}- authorized and before the money had been actually raised. In a few districts complaints were made that boards liad made contracts before any appropriation had been made. Eighth Recommendation. The law should be made clear that no contracts shall be made before the money to meet them has been appropriated, but that they may be made at any time after the appropriation, even though the money appropriated has not actually been secured. 27 DEPOSIT OF DISTRICT SCHOOL MONEYS. In every school district where any considerable balance is maintained, interest is generally collected. In many, it is not uncommon for Boards to borrow at 6 per cent, for general pur- poses from a bank with wdiich the Board has a deposit of a building fund on which only 2 per cent, is allowed. In other words, we found frequent instances where banks were, in effect, loaning Boards their ow^n money and making a profit of 4 per cent, on the transaction. We think, especially in view of our recommendation for an early distribution of the Railroad Tax, that it would not be wise to allow a Board to use funds for any purpose other than those for which they were appropriated. If the State distributes funds as we recommend, it should rarely be necessary for the districts to borrow for current expenses. In all districts, the interest earned on deposits is credited to the schools. In one, however. West New York, one custodian re- tained all interest, giving as a reason that he could, if he so desired, keep all funds in his home, and that if, through keen business acumen, he deposited them with a bank which allowed interest, the fruits of his sagacity belonged to him. When, how- ever, he was confronted with the possibility of a resort to the courts, he refunded the interest which he had appropriated. In many of the larger districts, certain banks are selected in preference to others and such selection is not always based solely on business reasons. In Atlantic City, where a substantial bal- ance of general funds is at times carried, we found that a bank w^as selected as a depository, the President of which was also Vice-President of the Board, and that no interest was allowed upon balances. In many districts, particularly the smaller ones, wherein there are but few banks and in some only one, it is not uncommon for a member of the Board of Education to also be an officer or director of the bank with which the local school funds are deposited. In small districts where there is at times difficulty in securing men to devote time to the management of the schools, some of the best members of Boards would be dis- qualified if a law were enacted prohibiting deposits with any bank of which a member of the Board was an officer, director or stockholder. 28 Ninth recommendation. — In all districts no deposits should be made zvith any bank in excess of 33 >^ per cent, of its capital and surplus. Among Banks of equal strength, preference should be given to those zvhich will pay the best rate of interest. School moneys should be segregated and placed separate and apart from all other moneys. No funds should be deposited with any Bank of which the Custodian of School Moneys is an officer, director or stockholder. In cities, no funds shoidd be deposited zvith any bank of which either a member of the. Board or a member of the Board of School Estimate is an oMcer, director or stockholder. I.ANDS FOR SCHOOL PURPOSES. It was not possible for the Committee to examine every school district in the State. Judging- from those which were examined it is not uncommon in the purchase of land for Boards to be guided, not by the best interests of the schools, but by the desires of some member, or more frequently some one active in political life who desires to plunder the school fund. Men who acquire land for the purpose of reselling to a Board, which, at their request, will purchase at a price far in advance of the cost, are a disgrace to any community. That there are such men in the State admits of no doubt. That there are and have been Boards ready, willing and perhaps anxious to obey the order of a politi- can leader, or rather boss, is most unfortunate. That there are districts in which men are members of Boards, not because they are the best, but because they are the most acceptable to the political powers, is to us most disgraceful In one district the evidence seemed very clear that one mem- ber of the School Board exacted a promise of monev from an owner as a condition of a purchase by the Board. That at or after the purchase he received money seems also verv clear. Following the transaction there was some gossip, and one citi- zen did not refrain from speaking very bluntly. Imagine the calibre and character of a member who, instead of courting an investigation threatened, "You . why did you open your mouth about that place? If you don't shut up I'll shoot you down." And that member appears to have dominated the 29 Board and to have been one of the leading poHtical figures of the district. In another district there is a school site known and designated as the get-rich-quick school site. Bought by a well-known poli- ticial at $8,000, it was immediately resold by him to the Board at $13,700. In Atlantic City, serv^eral members of the Board acted as brokers in the sale of real estate to it. Naturally the higher the price paid by the Board, the higher the commissions. For ser- vices in and about the purchase O'f real estate and in other matters fees were paid to a lawyer in the office oi the Vice-President of the Board, some O'f which fees were actually traced into the bank account of a firm of which he was a m.ember. We will cite but another illustration of the practices in the purchase of land. In 1908 Henry Brill and his brothers and sisters owned a plot of ground in No-rth Bergen, consisting of about six acres, with a frO'ntage of about 375 feet on the Hudson County Boulevard. In or about the early part of June Mr. Brill entered intoi a con- tract with Mr. John J. McMahon for the sale of the property at $20,000, $10,000 in cash and $10,000 to be secured by mortgage. At the time, Mr. McMahon was the custodian of the school moneys of the district and coiitinued to be such for several years thereafter. On the 23d of June, 1908, a school election was held at which the Board was authorized to purchase, for $'10,800, eighteen lots described by certain numbers on "Map of Property of John Daly". Two hundred and eighty-three (283) votes were cast, i. e., about 10 per cent, oi the vote of the district. At the tim,e, John Daly did not have title to the property, the purchase of which the voters authorized. Mr. Brill did not even know at the time of the election and could not tell from the ballot that the eighteen lots were part of the tract that his family owned, and which he agreed to sell to Mr. McMahon. He knew of no prop- erty in the district owned by John Daly, in fact he did not know • who Daly was. A week later, i. e., at the closing of the contract of sale, he learned, much to his surprise, that the John Daly property was part of the Brill ])roperty. McMahon did not take title in his own name. Title was taken in the name of one John 30 Daly, who executed a deed for eighteen lots near the rear of the plot to the Board of Education and a bond and mortgage on the balance of the property to the Brills in the sum of $10,000. The Board of Education borrowed $10,800 and drew a check for that amount to the order of John Daly. Daly endorsed the check to McMahon, who deposited it in his bank and with the proceeds paid the Brills. In short, the Board of Education paid $800 more than was necessary to finance the transaction, and in addi- tion employed and paid the attorney who searched the title. It received eighteen of the worst lots. To those engaged in the transaction there was a profit of $800 in cash and 50 lots, includ- ing all on the Boulevard, subject, however, to amortgage of $10,000. Some tiuTC after, forty-six of the lots were deeded t» John J. McMahon, the custodian ; two to John Muller, the President of the Board, and one to Charles McElroy, the Clerk. It is true that the President and Clerk swore that they paid for the lots, but though afforded an opportunity they could not pro- duce any vouchers. The Committee subsequently discovered very suspicious cir- cumstances in connection with four other sales in the same dis- trict. Subpoenas were served on Mr. McMahon, who had admitted some connection with the transactions, and. also upon the members of the Board. All appeared by coimsel and declined to give any further information. The entire matter was called to the atten- tion oi the prosecutor of Hudson county, as was also the scandal- ous state of affairs in Secaucus. School affairs were made the subject of a very vigorous charge to the Grand Jury by Mr. Justice Swayze. Indictments were found against two of the Secaucus Board, but upon a trial the jury disagreed and no con- victions resulted. The Attorney-General advised the Committee that a failure of witnesses tO' obey subpoenas duly issued by it was a misdemeanor. Inasmuch as there was some doubt as t* whether a quorum of the Committee consisted of a majority of the Senators and representatives of the State Board or of a majority of the Senators and the entire State Board of Educa- tion, a hearing was held at Trenton, at which a majority of the Senators and State Board was present. Mr. McMahon, the members of the North Bergen Board and some North Bergen 31 contractors had been subpoenaed to attend. They did not attend. The facts were duly presented to the Mercer County Grand Jury, but no indictment was found. In Hudson county it was openly suggested that no redress would be found by a resort to criminal proceedings. It was also hinted that the political influence, though of a different complexion from that of the dominant party in Mercer, wo-uld malce itself felt even in Trenton. We do not know to what extent, if any, personal or political influence balked our attempts to have the laws enforced. We have learned by actual experience that laws are of no avail unless enforced. Far better laws by Lucifer to be enforced by Gabriel than laws by Gabriel to be enforced by Lucifer. We know of no better service that this Senate can render than to advise with the Governor so as to bring about the appointment of honest, fearless and able pro^secutors and the complete separation from politics of the selection of grand and petit jurors. We do not mean to suggest that the prosecutors of Mercer and Hudson counties did not try to help the Committee. While prosecutors can do but little, if grand juries fail to act, still if throughout the State they would actively strive fo-r the complete elimination of influence from; our criminal proceedings, tliey would place the State under great obligations to them. This Committee has earnestly striven to uphold the dignity of the Senate. Its efforts have been without avail. It now remains for this Senate to determine whether it can and will uphold its own dignity. It is now up to- this Senate tO' determine whether the failure oi witnesses toi obey subpoenas duly issued by one of its committees is a contempt. If it is, then those guilty should be punished. If the Senate has no power to punish for contempt then a law should be forthwith enacted giving it such power, so that in the future committees will re- ceive the respect which is due the Senate. Aside from those who were under indictment, the Committee experienced no difficulty with witnesses except those of North Bergen, and strangely enough the broker, Mr. Howard Stokes, who absolutely refused to answer any questions about his purchases of school bonds of that and all other districts on the ground that the Committee could not exact infoiTnation from him about any school bonds other than those which were purchased by the Trustees of the School Fund. Though it has seemed to the Committee that neither a member of a Board nor its custodian could legally retain any profits made by them in their transactions for or with the Board, still we know of no attempt ever having been made to recover ill- gotten profits. Neither do we know of any case when an at- tempt has been made to hold a member of a Board liable for damages for wrongful or negligent conduct on his part. Tenth Recommendation. Every purchase of land should he reported to the State Board of Bducation within thirty (^o) days after it is completed. The report shoidd contain a de- scription of the property, its assessed value, the name of the vendor, the date when he became the owner, the price paid by him, and by the Board to him<, the name of the agent or broker in the transaction and the commission, if any, paid to him. Pozver should be given to the State Board to require the Board in any district to cotmnence a suit against one or more of its members, past or present, or against its custodian or one who zi'as its custodian, or against its clerk or one who was its clerk, to accoiint for and pay over any profits which he may have made by reason of his position, or to pay damages for his wrongful or negligent conduct. If any local Board fails within thirty days TO commence such a suit it should be the duty of the Attorney-General to commence suit for and in the name of the local Board. school buiedings. Tlie plans and specifications for school buildings are required by law to be submitted to the State Board for suggestion and criticism before they can be approved by any district Board of Education. The law also requires the State Superintendent to procure plans and specifications and full detailed working plans, which must be loaned to districts desiring them, but he has never been provided with funds sufficient for the performance of this duty. Many districts have expressed a desire to have such plans and specifications. Notwithstanding the law, there do not ap- pear to be complete sets of plans and specifications which can 33 be loaned to the districts. Each district prepares its own plans and specifications and submits them to the State Board for ap- proval. In several districts we found that the plans and specifi- cations which had been approved by the State Board had been departed from in A^ery important particulars in the actual con- struction of the building. What was worse, we found that such departures, in at least one district, were not authorized by the local Board, but rather were sanctioned by one or two of the more influential members. The result of such departures was that the school district was called upon to pay and did pay for a very inferior building the price of a very good building. Such practices should be stopped. Here, again, though the facts were generally known, we find apparent indifference on the part of the legal voters, and no attempt on the part of any taxpayers to ascertain if any^, members of the Board reaped any profit as a result of the changes. There is no sense in compelling the submission of the plans and specifications to the State Board if, after their approval, the local district can make such changes in them as it may please. Eleventh Recommendation. No departure from the plans and speciUcat'wns of any school building, after they have been approved by the State Board, should be legal unless sanctioned by the State Board. The State Architect should prepare stand- ard plans and specifications for i, 2, 4, 6, 8 and 12-room school buildings, and the State Superintendent should cause blue-prints to be made of such plans and loan them to districts upon appli- cation. In many districts we found very old buildings, some without adequate exits, many with ordinary wooden staircases, and many without any special provision in the event of fire. Throughout the State we found that fire drills are frequently held, but ex- perience shows that actual fire is likely to cause a panic, and that as many lives may be lost through a panic as by the flames. The Committee held sessions in buildings in which, it must confess, it would not care to be upon the top floor, should a 3 34 fire actually break out. Many buildings are equipptd with fire- escapes of a kind which might be very satisfactory as a means of exit provided there was plenty of time to escape, and pro- vided that all the children realized that there was no need for haste. Some of the buildings and many of the fire-escapes seem to have been constructed in the belief that children would be just as calm and collected in trying to escape from the building in the event of fire as they are in fire drills. Fire-escapes should not differ materially in size of tread, step and pitch from the stairs to which the children are daily accus- tomed. What is more, they should be protected on the sides so tliat there will not be danger that children, especially the small ones, may fall through if there is any pushing or jamming. There are school buildings in this State which, in the opinion of the Committee, should be condemned. There are some fire- escapes which would probably be more dangerous if used thaw the stairs. Twelfth Recommendation. The State Board of Educa- tion should have authority to direct the State Architect to examine buildings, and should have authority after receipt of his report to direct the entire or partial abandonment of the\ building for school purposes or the making of such cJiangcs as to it may seem proper. No State school funds should he paid to a district until the order has been complied with. In some districts there are buildings which are really unsani- tary. We have in mind one, where some of the members of the local Board of Education admitted that they would not care to have their children as pupils in it. They disclaimed responsibil- ity for the condition because they said the people of the district were unwilling to expend money for a new school. There is no doubt but that there are many districts in the State where the people are very niggardly in their support of schools. The vState Board of Education has authority to compel dis- tricts to make all school buildings sanitarv and to direct the withholding of all State support until their orders have been complied with, but it has not had the means to ascertain what school buildings are unsanitary. In some districts we found that much money has been ex- pended in the construction of buildings on ornamental features. We doubt very much if in all districts as much would have beeii expended for such purposes if the legal voters took more interest in school affairs and exercised their right to vote at the school meetings. If any proof was needed that the affairs of some Boards are managed along political lines, the changes which are made in materialmen, mechanics and insurance agents whenever the political complexion of the Board changes, would furnish it. The purchase of material, the employment of mechanics and the distribution of insurance among agents seems to be considered in many districts as legitimate political patronage. In so many districts did we find members of Boards, or men connected with the local government, placing insurance upon school buildings and furniture, and thereby obtaining a commission, that it is difficult to single any few out by wav of illustration. In Atlantic City we found that a Board of Education, just before the expira- tion of its term, had directed the cancellation of all insurance and that new insurance be obtained for a term of years so that two of its members could derive a commission. In another district we found that policies were taken out only for one year and that the placing of insurance was distributed among agents in the different wards. If any more expensive system of ob- taining insurance could be devised it is not known to this Com- mittee. In strong contradistinction tO' this district, vv^e found a few where all property of the Board was scheduled and where competition was solicited with resultant saving. Thirteenth Recommendation. It should he made the duty of every district to schedtde all school property, to obtain in- surance covering a period of at least three years and to solicit bids and in all cities to advertise for bids. The Committee had hoped to be able to devise some plan whereby the State would create an insurance fund for the pro- tection of its own public buildings and of school buildings in the State. The finances at the present time are not such as to 36 warrant the creation of such a fund, but we trust that the State Board of Education will bear the matter in mind and possibly at some time in the future we will see such a fund created. We know that its establishment on a sound basis would bring about a saving- amounting to many thousands of dollars each year. In some districts we found that care had not been exercised in the selection of architects, and, as a result, some buildings are not what they ought to be. In some we found the heating and ventilating planned by men who were incompetent for such work, and that thousands of dollars have been wasted. In one, we found a school with eleven separate furnaces. Fourteenth Recommendation. The State Board of Bdw- cation should he authorized to appoint an Inspector of Buildings at a salary not to exceed $2,000. Such Inspector should spend- all his time during the entire tzuelve months in the year in visit- ing the schools in the State and in making a ihorotigh report with regard to each. No school buildings, two stories in height, with more than four rooms, should he erected in the future, un- less there are at least two stairways, one at each end or one at each side. All stairways and staircasing and all corridors should be fireproof. No btiildings three stories or more in height should he erected in the future unless it is fireproof throughout. Every building two stories or more in height, used for a school, should be equipped zvith fire-escapes leading to the ground, protected on the sides and corresponding in size of tread, step and pitch to ordinary school stairzvays. It shoidd he made the duty of every Board of Health in the State to examine at least once a year each school in the district throughout which its jurisdiction extends. Such examination should take place while the school is actually in session and with- out notice of any kind whatsoever to the school authorities. A detailed report should he Hied in the oifice of the Board of Health, and a copy sent to the State Board for each public school and for a private school to the authorities conducting it. The report should specify the changes or improvements, if any, to be made. Thirty days after such report is made, the Board 37 of Health should make another inspection zvhile the school is in session and zuithout notice, to ascertain if its recommendations have been complied zuith. Any inspector zvho fails to report an unsanitary condition in a school zuhich he has znsited should he deemed guilty of a misdemeanor. TK.XT-B(X)KS AND SUPPLIES. In every district which was visited we found evidence of the activity of the book-sellers. In some districts the same kind of books are used in all the schools. In some districts there ap- pears to be about as many different kinds of books as there are schools. The reason urged for such diversity is that it is advis- able for the principals and teachers to be satisfied with the books which they are using. We have been wholly unable to see why it would not be better for the children to have the books selected by the best educator in the district, rather than to have them dependent upon the whim of principals and teachers. It is bad enough when children move from one district tO' another to find that they cannot take up books which they had been using. It seems absurd, however, when they move from one section in a district to another, and are transferred to another school, that they must take up different books. We are not at all satisfied that the diversity in the books is caused solely by a desire of a principal or teacher to promote the best interests of the pupils. On the contrary, we feel that the diversity is caused in great measure, if not almost wholly, by book canvassers. We are disposed to believe that too much of the time of Superintendents, principals and teachers is taken up by the book dealers. We find that publishers send to some, if not to all, of the Superintendents in the State for information about the books which are being used, and for the names and addresses of the principals and teachers. One Superintendent admitted that shortly before our exami- nation of him he had given information to twenty different 38 publishers. To some publishers and employment agencies he had given the names and addresses of all his teachers. We have no recommendation as to what text-books should be used in the State. We have not even any suggestions to make upon the subject. We do believe, however, that the State Board of Education and the leading educators ought to try to deter- mine among themselves what are the best text-books, and come to some understanding upon the subject. It would certainly seem as though the leading educators of the State ought to be able to agree upon such matters. Apparently, according to the publishers, every new book that they produce is the best ever issued on the subject, and its selection in different districts seems to be dependent more upon the ability of the canvasser than upon its merits. In the great majority of districts supplies are purchased as a result of competitive bidding. In many of the districts, how- ever, supplies are purchased from local dealers, irrespective of the fact that better prices could probably be obtained else- where. In some districts it has been openly charged that very excessive prices were paid for supplies. Thus, the Board of Education in one district paid for certain items $1.50 instead of 40 cents ; for another, 75 cents instead of 50 cents ; for another, $6.00 instead of $3.00. It was not at all uncommon to hnd sup- plies purchased at prices exceeding the rates given to any school district. In some districts the charge was even made, though not clearly substantiated, that the Board had paid for supplies which it never actually received. In one district the Supply Com- mittee was characterized as the "Supply Gang," and in that dis- trict it seems to have been the practice for years to pay about double the regular price for various supplies. On one occasion, when the Supervising Principal undertook to purchase supplies, he was asked b\- the dealer whether he wanted them the same as others which had been purchased. Upon answering in the affirm- ative, the dealer asked him if he wanted the commission of 10 per cent. The Committee did not adduce any direct evidence that any member of a Board was ever paid a commission by any supply house. From the prices, however, which had been paid 39 in various districts, there is no doubt but that the members have not exercised the same care and caution in the purchase of sup- phes which they would have exercised if they were paying for them out of their own pockets. Neither is there any doubt but that in the selection of some of the local supply dealers political influence has played some part. Fifteenth Recommendation. The State Board should ap- point an Inspector of Accounts at a salary not to exceed tzuo fhousxind dollars per year. Such Inspector should spend all hi^ time during the entire tweh^e months in the year in the examina-< tion of the accounts of the several school districts. A uniform find simple system of bookkeeping should he devised for use and used in all school districts. MEDICAE EXAMINATION. Though it has been universally recognized that there is no greater blessing than a sound mind in a sound body, still, until within recent years, very little attention has been given to the physical condition of the children in the schools. In some few districts we find open hostility to any medical inspection. In the great majority, however, and more particularly in those where medical inspection has been fairly tried, we find that it is strongly approved. In the past, where a child has not progressed satisfactorily, blame has frequently been attached to the system, more frequently perhaps to the teacher. It does not seem to have occurred to the parents or to the public that possibly the condi- tion of the child was in great measure responsible for its ina- bility to make fair progress. Medical examination has been tried in very many districts in the State and to an extent which has enabled the Committee to form some opinion of its value. While it may seem surprising, still it is not open to dispute that at least one-half of the children have some defect of vision, or hearing or some trouble in breathing, or with their teeth, which affect' their ability to advance. It does not seem to be at all uncorrt mon for a child to be considered stupid and backward when, in 40 fact, it is retarded almost solely because of physical defects. In one district, where a careful examination was made, the hearing of 4 per cent, and the sight of 27 per cent, were defective. In that same district it was estimated that more than one-half the children had enlarged tonsils. In one industrial center among 5,031 children who were examined, 855 had adenoids and 341 had defective vision. In that district the Committee was greatly impressed by the fact that many parents were probably unable to bear the expense of an operation, and that there was no place where one could be performed without expense. We do not express any opinion as to whether operations are really neces- sary. The great majority of physicians, however, who were ex- amined by us, united in the opinion that in some, if not in many cases, adenoids should be removed. All, however, agree that where the use of glasses will improve vision tliev should ht pro- cured. Even more astonishing than the trouble with the eyes, ears and the throat are those relating to the teeth. In a district where the majority of parents can well afford to take not only ordinary, but the very best care of their children, an examina- tion revealed that only 37 per cent, had mouths in good condi- tion, that in the teeth of the 2,652 children who were examined there were 1,200 exposed nerves and almost 16,000 cavities, and that more than 2,000 teeth needed extraction. The result of the examination and of the recommendations which were made be- came apparent when, a year later, a second examination of 400 of the children was made. The number of mouths in good condi- tion among the 400 had increased 18 per cent., while the number of mouths in very poor condition had decreased 60 per cent. The number of cavities in permanent teeth were 20 p>er cent, and in temporaiy 23 per cent, less, while the number of teeth needing extraction were 75 per cent. less. It is needless to say that a child will advance more rapidly \vhen in good physical condition than ^vhen in poor. The people in adopting the Constitution made it the duty of the Legislature to provide for the maintenance and support of a thorough and efficient system of free public schools. If the system' is to be thorough and efficient, and if the best results are to be attained, some attention must be given to the physical side of the children. 41 There can be no doubt but that more time and energy are re- quired to teach children who are retarded by some physical defect than those who are not so affected. Some few witnesses sug- gested that all medical examination should be abolished. We cannot agree with any such recommendation. On the contrars^ we think that a medical examination of each child, at least once a year, is very reasonable and should be strictly enforced. We also think that the establishment o^f free clinics, includine: dental, for the treatment of children of the needy should be encouraged. Some objection has been raised on the ground that medical inspection is an interference with personal liberty. We do not suggest or advise that the medical examiners shall have any right to do more than to ascertain the physical condition of the children and to make recommendations. We believe that parents who realize that their children cannot make the most of their oppor- tunities if retarded by any physical defect, will welcome the recommendations and do their utmost tO' follow them'. THE STATE SYSTEM OF EDUCATION. One of the Superintendents was asked whether the system in each county was not what might be termed, in colloquial language, "go-as-you-please." - He replied that not only was that true of each county, but of each district in each county. Such would seem to be the fact. Each district in the State apparently desires to be absolutely independent and to pursue the tenor of its ways undisturbed by any outside influence. It is true that the various County Superintendents prescribe a course of study for the schools under their direction. Its adop- tion, however, is in reality dependent upon each locad Board of Education. It has been urged that a unifonn course of study would not be practicable throughout the State owing to the diversity which, exists in the needs of the different districts. We find, however. that not only is there no uniformity with regard to courses of study, but that there is also no unifo^rmity with regard to the principles determining promotions. In many districts pupils are advanced without examinations and solely upon their class stand- 42 ing, while in others the advancement of pupils is dependent in part upon class standing and in part upon examinations. In some districts admission to High School is dependent upon examination, while in others no examination of any kind is necessary. Some of the Superintendents have opposed examinations on the ground that children do not do themselves justice because they become nervous. We fear, ho\ve\er, that many of the Superintendents are opposed to examinations, not so much be- cause some of the cliildren may not do themselves justitc, but more particularly because they involve a little more work and also because they may lead to the discovery that the children are not making average progress and attaining the standard their superiors like to believe is achieved. We have heard no reason which convinced us that examina- tions ought to be dispensed with entirely in the pubHc schools. No one has suggested any substitute as a means to determine whether the Superintendents, principals and teachers are effi- cient, and whether the pupils are receiving a thorough, rather than a mere superficial training. It would seem as though in many districts the lines of least resistance are pursued. Superintendents are not as keen to dis- cover as they might be, whether the princi]>als are performing their duties ; neither are the principals as keen as they might be to determine whether the teachers are doing their utmost to advance the children. The little harm that may result from examinations, we think, are more than counterbalanced by the fact that children, if they knew that they had to take them, would study so as to remember, rather than study merely to pass the recitations the next day. Teachers, also, would be incited to better work, if they knew tliat there was a possibility of blame being attached to them, in the event of the failure of a large proportion of their classes. We are not at all satisfied that the system, which prevails in many parts of the State, was devised solely with the good of the pupils in view. In fact, the method of dealing with back- ward and defective children, hereinafter stated, impels us to the opposite view. The system, no doubt.- is conducive to the com- 43 fort and ease of mind of the Superintendents, principals and teachers. Children are sent to school to learn ; Superintendents, principals and teachers are employed to teach them, and to try- to make them learn. If examinations are to be done away with, some means must be adopted, sO' that the State can de- termine whether the children are learning, and whether those who are employed to teach them are performing their duty. Inasmuch as the education of the children is a State duty, and inasmuch as the people have charged the Legislature with the duty of providing a thorough and efficient system of education, there should be some means by which the State can determine whether or not a proper standard is being maintained. It is, perhaps, impracticable to establish a course of- study for the State. It would, perhaps, be unwise to make any hard and fast rules with regard to promotions. With but one exception, we are content to leave such matters to the State Board of Education. Sixteenth Recommendation. It should he charged with the duty of ascertaining zv^hether the system, of education in each district is thorough and eiUcient, and it shoidd have the power to direct that no State funds shall he paid to a district until its system is made so. The one exception that we have in mind is the graduation from our public schools and the admission to High Schools. The children in the public schools throughout the State should be. as nearly as possible,, on a par in essentials at the time of graduation. Every school district should be made to realize that, while it may exercise discretion as tO' the methods to be pursued, such methods must culminate so that in essential sub- jects which are taught everywhere, the children will be on a level with those of every other district. Seventeenth Recommendation. There should be a uni- form examination throughout the State for graduation from Grammar Schools, and for the admission to High Schools. Such examination shovld he confined to essentials, thai is, Arithmetic, 44 Writing, Spelling, English Grammar and Composition, History and Geography. The questions should be prepared by or under the direction of the State Board. The examinations should be open to all children of the State, whether they attend public schools or private schools. The times and places of holding them and the rules governing them should be prescribed by the State Board. The State Board should also designate the persons to conduct thou and shoidd have the pozver to direct Superin tendenis, principals and teachers of one district to conduct them in any other. We realize that a child may not pass a satisfactory examina- tion in one or more of the subjects, but we believe that the State Board can make equitable rules, prescribing either what general average must be attained or what average must be. attained in each subject, and possibly, in the latter event, providing for a re-examination at a later period. In view of the general desire expressed throughout the State, for an Inspector who will examine and criticize the different High Schools and point out wherein they are below the average and wherein improvements might be made, we cannot believe that there will be any serious opposition to a plan which will insure general uniformity of attainments in essentials at the time of the admission of the children. We are in sympathy with High School inspection and criticism. We would not approve it, how- ever, if we thought it would consist of perfunctory visits and general talk. Eighteenth Recommendation. There should be a High School Inspector, at a salary of $4,300 per annum, and his actual disbursements. He should be appointed by the State Board, and be subject to its orders and sxich rides as it may tnake. He should devote his entire time to inspection. He shoidd conduct tests of at least one-half hour each in at least three classes on each visit, and shoidd make a report to the State Board. We have no doubt but that the services of an Inspector will prove valuable to the State Board, and place it in a position to 45 determine to what extent, if any, our High Schools are mere preparatory schools for colleges. The High Schools should be conducted so as to afiford the greatest good to the greatest number, and too much time and expense should not be devoted solely for the benefit of the few who may wish to enter a college. The services of an Inspector will also enable the Board to de- termine whether there are, as is frequently charged, too' many small and weak High Schools. NiNSTEE^NTH Recommendation. A-o neiv High School should he established without the consent of the State Board. The State Board should have authority to direct the discontin- uance of any High School, zvhen in its opinion it is advisable. If districts cannot agree about rates of tuition iu High or Ele- mentary Schools, the State Board should have authority to fix the rate and to compel a district to receive pupils at such rate froifi other districts. It is well known that the great majority of children who at- tend school cannot possibly hope to earn their living in intellec- tual pursuits. In many districts we find that this fact is be- coming- more and more appreciated, and that manual, industrial and agricultural training is being given. In view of the fact that only 55^ per cent, of our children are in the High Schools, it has seemed to us that such training ought to commence almost with the school work. It is the children who never enter a High School and who, in fact, never complete the grammar course, who are most likely to engage in some industrial pursuit. It is they who would be most benefitted by manua,l and indus- trial training. In one district we find that a very large amount of money is being expended for a manual and industrial High School. We should have much preferred to have seen that amount of money expended on the development of manual and industrial training in the lower grades. The schools should be conducted upon the principle of the greatest good to the greatest number. It is the children who never reach the High School who are most in need of manual 46 and industrial training. The extension of such training- in the lower grades should be strongly encouraged. The State now contributes to industrial education an amount equal to the sum raised in each district for such purprise. not ex- ceeding, however, $5,000. During the last fiscal year $147,000 was distributed. How it was spent the State does not know, as no means exist for ascertaining. We find that there is a general demand in the cities and large towns for industrial education and in the rural communities for agricultural education. The amount to be distributed by the State will undoubtedly increase from year to year. Under present conditions no branch of education is more important or more desirable. The State should see that it is thorough and efficient, and that moneys appropriated for the purpose are wisely expended. Twentieth Recommendaton. There should be an In- spector of Industrial Education, including agriculture, at a salary of $4,500 per annum and his actual disbursements. He s tenure of service act should be made sub- ject to the Civil Service Lazv. It is easy to suggest statutes prohibiting unlawful practices. Oif what use are they if not enforced? In fact they are worse than none, because the failure to enforce law makes government a farce and an object of ridicule. Laws will not enforce them- selves. Honesty cannot be legislated into individuals. From our experience it would seem as though individuals with suffi- cient personal influence can ignore the law. If the dishonest could be kept out of our school system we would have little need for laws prohibiting corrupt practices, and the enforce- ment of such laws would give us no concern. How can such a result be attained? Many women have appeared before us and urged with vigor that they be afforded an opportunity to try to 64 bring it about. From aJl parts of the State women have petitioned us to recommend that they be g-iven the right to vote at all school elections and upon all school questions. We have been requested to recommend a joint resolution proposing an amendment to the Constitution to effect such result and a law- providing that where members are appointed, at least a certain proportion of them shall be women. We have concluded to recommend the joint resolution and an amendment to the law. In so doing we do not wish to be understood as expressing any opinion as to whether women should have a right to vote at any and all elections. We do express the opinion that they are as deeply interested in our school affairs as the men, and we do believe that they should have an equal voice, with men, in the selection of members of Boards and in the conduct of a system which is intended for the education of their children. Possibly only a small propor- tion of women will care to vote, even in school elections. Per- haps they Avill awaken interest among the men in the com- niunit}- and insist that they, too, should vote for members who can be trusted, and who will do their utmost to advance the schools rather than their own selfish interests. We have no doubt but that if all men would vote in school elections the char- acter of Boards would be greatly improved. The great majority of men, whatever may be their political beliefs, think that school affairs should be conducted, not on political lines, but on lines which will promote the efficiency of the system and the good of the pupils. In every district there are some worthy women interested in school affairs. We hope that they will awaken interest in school elections, and if they do, we believe that in the future better men will be elected to boards, and scandal and disreputable j)ractices will become as rare as they are now common. 65 TwENTY-XiNTH RECOMMENDATION, l^hc Legislature should adopt a concurrent resolution proposing an amendment to the Constitution zvhich zvill permit zvomen, to vote at any election for the purpose of choosing elective officers for School Boards. The lazv should he amended so that ziu'here members are appointed to constittite a Board of Education zjuomen shall be given repre- sentation upon it. There are many in the State who maintain that our school system now costs too much. Some of them, no doubt, will urge that the adoption of our recommendations will mean further expense. The increase, however, in our opinion, will be more than offset by the results. In interest alone there will be a saving to the districts of at least $100,000 before the end of the year. How much will be saved by the curbing of carelessness and dis- honesty and the promotion of strict business methods no one can tell. That the proper care and training of blind, backward and defective children will require additional expenditure we admit. Such expenditure has not been incurred in the past because we have all been sadly remiss, not only in our duty to such children, but to society. Payment of better salaries to teachers in the rural districts and to the County Superintendents, and the em- ployment of more principals will also involve more expense, but it should be incurred unless we are content not to afford the children in rural communities opportunities equal to those in the cities. The creation of the office of a Commissioner of Education, with his assistants and inspectors, to perform services which have never been performed by the State Board and Superintendent will require some additional outlay. The total expense of that office, however, will not equal one per cent, of the $8,000,000 the State is annually distributing, and who can say that the State should not spend one per cent, for the purpose of ascertaining whether its money is wisely disbursed and for the added pur- pose of promoting a thorough and efficient system of education in everv district in the State ? 66 In conclusion, we do not wish any one to infer that in no dis- trict is there a thorough, efficient and honest system of educa- tion. On the contrary, we found many, and, with them before us as standards, we made the foregoing recommendations. Dated March, 191 1. JOSEPH S. FRELINGHUYSEN, WILLIAM J. BRADLEY, GEORGE S. SILZER, WILLIAM G. SCHAUFFLER. I assent to all the recommendations except the Twenty-fifth. I do not agree tO' it because I believe that the State Board is effi- cient, and because I feel that if it has the powers proposed in the other recommendations, it will be able to administer the school affairs of the State as well, if not better, than a Commissioner, as suggested in the recommendation. WM. H. MORROW, S. St. J. McCUTCHEN. 67 The Committee is constrainecj, to record its tribute to the effi- ciency and power of Mr. John P. Murray, its counsel. His com- plete draft of the scope of the laws governing the educational system of the State ; his comprehensioii of the condition ; his keen analysis of these conditions, and of motives and practices have been oi incalculable value to- your Committee. He has been able to suggest lines of inquiry which were not present in the minds of members of the Committee, whO' for years have been intimately connected with the educational work of the State ; he has been invariably patient and courteous, but persistent. The value of his services to the Committee and to the S-tate cannot be measured b}^ anv approprianon which may be made by the State to him. JOSEPH S. FRELINGHUYSEN, WILLIAM J. BRADLEY, GEORGE S. SILZER, WILLIAM G. SCHAUFFLER, WM. H. MORROW, S. St. J. McCUTCHEN, Coriiniittcc. ^ LE M 'II REPORT Senate Committee to Investigate the IVIethods and Practices, Expenses and Disbursements of the Public Schools MARCH, 1911 TRF.NTON, N. J. MacCbeulish & QuiCLEv. State Printers. igi I.