The school was initially proposed by Chuck Leadman, business agent of the local branch of the
Textile Workers Union of America. Leadman solicited $1-per-week donations from his union members to pay for its construction. Leadman described Front Royal as a racial "utopia" free of violence, although the local white population fired live ammunition at a black church when its pastor opposed the project. When the Textile Workers Union international learned of Leadman's project, they froze the local's assets and seized the donations. A court upheld their actions and Leadman was subsequently removed from his position. With the union funding seized, tuition at Mosby was covered in part by state tuition grants. Grants to a "nonprofit, nonsectarian private school", even
segregation academies, were upheld by the
Third Circuit Court of Appeals. On March 9, 1965, in
Griffin v. State Board of Education state tuition grants to white-only schools were found to be unconstitutional. ==Enrollment and closure==