Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1894-04-12
RECKLESS BOND BUYING.
ANOTHER SCANDAL FROM POPU
LIST OFFICIALS.
The State School Fund Mulcted Of
Several Thousand Dollars Through
Purchase Of Worthless Bonds D.
D. Hornaday Explains His Con-
nection With the Deal.
from Saturdays Daily |

The State school fund commission
crs have purchased twenty-sevcn
thousand dollars worth Of Hamilton
and and Kearney county bonds, which
have been declared fraudulent or at
least were rcpudatcd some years ago
by the counties which issued them.
Governor Lcwelling and the State
school commissioners have been
greatly worried for the last few days,
but IL was not known till late this
afternoon just what this new trouble
was.
The story in brief Is as follows:
The state commissioners In charge
Of the school fund are Attorney Gen
cral Little, State Superintendent
Gaines and Secretary ofStatc,Osborn.
About five years ago Geo. w. Crane
secured some Hamilton county bonds
in two lots o. five thousand dollars
each
Later he placed the bonds in the
hands OF the Bank of Topeka, Central
National and Kansas National bank
as collateral.
Some years after the Hamilton
county seat was removed and the
county rcpudiatcd the bonds.
Some DAYS ago Major n. d. McGin-
lev and Mr.. Hornaday. who former
~ worked In the State department,
told Mr.. Crane they had purchaser
for some of the bonds.
Crane sold them one lot Of five
thousand dollars for three thousand;
and afterwards made similar sale Of
the second lot.
Mr.. Crane supposed Mckinley was
selling them to some bond spectators
who were continually making offers
for such bonds.
Great was his surprise when he
learned the school commissioners had
bought these bonds at par and nc
crucd interest.
The first money he had turned over
to the bank, but the second $4,000 he
returned to the State treasurer.
The discovery that the commits
sioncrs had purchased repudiatcd
bonds has caused a sensation in the
State house that has not been equallcd
in many day.
The rest of the twenty thousand
dollars shortage by reason Of bad
bonds is through a similar purchase
Of Kcarney county bonds made few
days ago.
The Press PopulisD tells the same
story and says:
When presented to the school fund
commissioners the past due coupons
had been clipped and the negotiator
of the bonds represented that the in
terest had been paid up, and the bonds
showed the fact on their face.
MIR. HoRSADAY EXPLAINS.
Considerable excitement was
caused in the city by the publication
Of the above, particularly because Of
the residence here of ID. ID. Hornaday,
cX-bond clerk Of the the supcrin-
tendents Office, whom the report
shows to be implicated in the mat
ter.
Mr. Hornaday was seen by RE-
FLECToR representative this morn
ing and said; III secured the bonds
to sell on commission through Maj.
N. ID. Mckinley, about three weeks
ago. There was $4,000 worth.
had confidence In them because Me-
Ginley said he was getting them
from the First National bank and
know they were all right. When
negotiated for them / expected to sell
part OF them to other parties, not
knowing the State had any funds ia
buy bonds. l expected to keep 81 500
worth of them for my wife and
daughter rs an investment. Had the
State not taken them | should hay,
made a thorough investigation befor,
paying for them. Iplaccd the bonds oil
file with Supt. Gaines awaiting bone
meeting, In the meanwhile Attorney
General Little looked at them anC
said they were all right. When Mr.
Gaines returned he said the purchas,
could not be made that day, Marcl
Path, and they had better lay owe
until the next week when a regula
board meeting would he held. ! haC
no conversation with Crane or anyone
else except Mckinley, outside of tn,
members OF the board, concerning tn
bonds.
''On the the following Tuesday
owing to the rejection OF some othc
bonds there were funds on hand 70
bond purchase and these bonds wer
purchased and supposed they hO,
been Investigated and found correct
When | took the warrant to treasur
or's Office | had long conversation
with Asst, Treas. Seward about thes
bonds. He questioned the limit G
purchase by the board but told hir
the board had looked it up ahd ioun
1t all right.
Several days before this was /
the auditors office and McGinlc
and Attorney General Little wer
talking about bonds and told me tn
State had just purchased $4,000 {
the Hamilton equity bonds and woul
take the other 5000 but lacked fund,
l then, thinking them a good inves