The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1862-02-20
r. F p O r II
Of the Special Committee apfoiated by the
HOsss Of Representatives. to inres-
ti1ate tie accounts of
Auditor and Treasurer of State,
Sale of Bonds OF the State of Kansas, &C.,
JANUARY 30rH, 1862.

Sale of Bonds OF the State of Kansas, &c,
| JANUARY 3orH. 1862
h The Special Committee, to whom wa:
entrusted the duty Of investigating the sale
of Kansas State Bonds, and the accounts Of
the State Auditor and Treasurer, beg leave
to submit the following report:
! On Thursday, the Goth day of January,
1862, the House Of Representatives adopted
the following Preamble and Resolution,
from which your Committee derive their
authority, to-wit:
WHEREAS, 1t appears from the reports
of the Auditor and Treasurer of State, that
certain amount of the Bonds of the State
have been disposed of; and Whereas, said
reports do not fully Sc. forth a detailed
statement Of the facts in relation thereto ;
therefore,
Resolrea, That Special Committee OF
five be appointed BY the Chair, to examine
and investigate the accounts of the Auditor
aud Treasurer of State, and to ascertain all
the facts connected with the sale of Bonds
of the State Of Kansas, the disposition of
the proceeds thereof, what amount of scrip
there has been issued, what amount re-
deemed, and what amount has been bonded,
what amount Of bonds are remaining on
hand and unsoid, and whether or not State
officers have been specializing in the in
debtedness Of the State of Kansas, with full
power and authority to send for persons
and papers, with instructions to report at
an early day.
Before proceeding to call testimony touch
ing the subject matter of inves.i CATION, it
| was deemed best to make careful exami
nation of the different statutes Of tue State
in relation thereto. They find that an act
was passed By the last Legislature and
approved May Sd, 1861, authorizing certain
persons to-wit: Austin NJ. Clark and james
| G. Stone, to negotiate the sale Of one hun
dred and fifty thousand dollars Of the Bonds
Of the State, and report to the Legislature
within seventy days, their acts in the prem
ises. BY reference to the journals of the
last session, and on page aS2 it will be seen
that they did report that any attempt at that
time to negotiate the sale of Kansas Bonds
would be utterly useless and unavailing.
After receiving the report Of said Commis-
sioners, an act was passed the Legislature,
and approved june {, 1861, supplementary
to the FIRST named act, authorizing the sale
/ of one hundred thousand dollars Of the
Bonds Of the State for not less than seventy
cents On the dollar, This act gives authority
to the Governor, Secretary Of State, and
Auditor to negotiate the sale Of these Bonds,
a majority cf whom can act, This law pro
vides that the Treasurer shall prepare Bonds
to the amount of one hundred thousand
dollars, with coupons attached, bearing in
terest at the rate of seven per cent. per
annum. and to be made payable in fifteen
years. The interest to be paid semi-annu
ally.
Another act was passed BY said Lcgisla
ture, which was approved June I, 1861,
providing for the issuance of twenty thou
sand dollars of the Bonds of the State.
bearing ten per cont. interest, and made
payable in two years.
These are the only acts that your Com
mittee have been able to 6ud bearing upon
the matter Of the sale of Kansas State Bonds
With regard to Bonds issued by the
State during the year 1851, under the acts
referred to, your Committee would state
that the total issue of Bonds Of every de
scription amounted to $3.50, 400. Of these,
$4,000 were ten per cent. Bonds, issued
under the act of May 7tb, and known as
War Bonds. $4,000 Of these ten per
cent Bonds have been sold by the Treas
urer to II. S. Stevens, for forty cents on
the dollar; the balance are in the Treas
urer's hands. 1t appears on evidence be-
fore us that q large portion of these Bonds
(s26,000) we're sold by Mr.. Stevens to the
Interior Department at Washington for
ninety-fvc cents on the dollar Of the
seven per cent. Bonds, $4,000 were used
in taking up State Scrip, and sS7 200 were
delivered to Il. S. Stevens, for which sixty
cents on the dollar was to be accounted for
by him to the State. 1t appears from evil
dcnce before Us that these Bonds were sold
to the Interior Department at Washington
for eighty-ive cents on the dollar. The
evidence before your Committee regarding
the sale of Bonds is quite lengthy, and will
be placed before your body in printed form.
The conclusions arrived at by your Com
mittee arc such as to warrant them In the
belief that this House will take decisive
measures, and deeming fair and full ex-
animation of ali the evidence proper IN the
premises, would commend it to the attention
of the House.
OF the $40, 900 issued under the act Of
May 7ih, your Committee are clearly of the
opinion that $4,000 are illegal, and the
House should take some action regarding
them.
Your Committee also are clearly Of the
0nln IL OF had ant hQrlfE