The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-10-26
WAS 1T A RAKEOFF
That Induced the School Fund
commissioners
TO BUY WICHITA COUNTY BOHDS
10 the Amount or $4,000 Paying 400
Cents on the Dollar When They Are
vT0rla Only s. Cenfms

Cents ON the Dollar when They Are
Torta Only s. Centss
The Kansas state school fund commits
Eioners are res ponsI bIe for another bond
deal which looks very shady and which
in direct violation of the law Il
looks IS If some membe Or member OF
the board are Concerned IN a transaction
which suggests dark dealing IN the use
Of the states money.
After the purchase Of fraudulent bonds
last spring the men who constitute the
com % izslOn- Attorney General Little.
Secretary of State Osborn aud Superln-
tenc5nr Gaines laye been very ctref al
and several times, a leading hnancIer
who o17rsl binds Of western Kansas
counties for sale was told by the cJn-
missiOners that they did not purchase the
bonds Of any countles west Of Barton
In suite or that fact the c0nmiss ers
on October Is fought $500 Of the re-
funding bon As OF > icAisa county which
llestln the middle Of the state north aud
south and second from the Colorado iine-
aud thar TOO az par and wnen the law sx-
Ilci-ly fYrbi1s such purchase Inc
bJnds would not be worth over ~ cents
On the dollar It'd any market
The law provides that the school fund
commissioners shall not purchase bonds
when the amount OF rne bonds will
exceed 10 per cent Of the assessed val :
uatior-
Tie last state treasurer's report shows
thai the valuation Of the cOunty Is $50
90. and the inGebte 1ness shown By rue
Ias- auiitor's report IS $I41,2l09+ IAe
iaIe LteIneSs is c0nseq ueu-ly almost ~
per cent 81 the assessed Valuation, far
beyond The Limit allowed hy law within
which the school fund commissioners
may purchase bonds
1t IS rumorsd shat state Treasurer Bid
de when be found tnat the 5oa-s were
offered made vigorous protest against
their purchase The members Of the
board were determined 10 buy them.
however. and The man wh0 especially
urged their purchase was Attorney Cen
eral Little. The bonds were purchased
aad were regularly certified 10 the state
auditor. Dur the warrant for their pay
nent has not yet been drawn on the
state treasurer. probably owing to the
hostility Of the state treasurer 20 the ac
tion Of the commissioners When the
warrant IS pres enre1 be has no alterna-
tive bat 10 haaC. over the money.
Banker P l. B5nebrake, who handles
a great many bonds Of all kinds. was
asked what the market value Of the
bonds Of Wichita county should be.
-Ihey really have no market value out
side az the state" said lie. "prO54bly
commissioners in refusing to purchase
bonds az western countIes-7
The JOURNAL reporter informed Mr..
BonehraEe that the comm issiUners had
purchased bonds Of Wichita county, and
lie seemed greatly surprised.
us tnat truef They can't do it for the
Indebtedness exceeds Che limit and they
have refused Letter bonds many times
II they have really purchased those
bonds, their conduct - most outrageous.
the bonds wouA j be worth about S. cents
On the dollar"
State Superintendent Gaines said: 1--WE
bought the bonds because they are 4
good investment Tie state has the
money lying idle in the vaults. aud a
good six PER cent investment is a good
thing The bonds are better than four
per cent ShzH vince county bonds We
are 10 pay par for the bonds, because the
state cannot AT 'rd 10 de reciale It's own
securities Bonds are never bought for
less. These same bonds were 0argained
for BY the Republicans, but they did not
have the money to pay for them. and
they were afterwards Withdrawn am
tired Of having people come arOuud here
to try ID get people to 40 their duty when
thev are already sworn 70 20 it."
The law on tie point is clear aud the
commissioners are expressly forbf dden
to invest IN the bouds Of any county
whose bonded debteiness exceeds 10
per cent Of the assessed valuation
Section SO a Of the general statutes IS
as fOllOws. ''54i1 board Of com u1issiOners
shall have the power and il is hereby
made their duty, from time to time to
maneur school fund. ths state arricuI-
tural college. state normal and state uni
versity funds. in the bonds OF the state
CT Kansas or OF the United States. school
district bonds OF the several school dis
tricfs Of the STATE Of Kansas. bridge. court
house bonds or IN county. township or
city reiuuding bonds OF the several coun-
ties. townships and cities OF the state Of
Kansas. In making such Investment
they shall give preference to the bonds
0f the state If Kansas. school district
bonds. and reflnding bonds, when the
same can he procured most advantage
ously to the said fund; but they
shall not pay for any state. school lis
trlct or refunding bonds il any case 4
greater amount than the par value of the
same. nor shall they pay for any such
bonds any greater sum than the actual
market price thereof It the time of pur-
chasing the same Provided however
that the commissioners shall not invest
in any bonds which together with the
othsr outstanding Indebtedness shall ex-
coed ten per cent Or The assessed valua-
ton Of said Municipal corporation. and
provided further. that I'll refundIng
bonds herein provided shall be bonds re-
funded under the general laws Of the
state"