The Wichita daily eagle., 1896-11-27
FEE TN BOND DEAL
/ RD GREER OF WINFIELD SELLS TIE
FRISCO BONDS.

He Negotiated WITH the Castodians a the
State school Fund - The Agent for His
County and Makes > Commiasioa AEgse-
gssins Eiftssn Thossand DoElars-Ths
County Commisaissers Want 60 Kick
Oas Of the Contract Bscapse They
Consider s Too Hish-Gresr \ Alleged
to Have Said He HAD to Divy.
The Kansas City Times of yesterday
printed a communication from its To-
peka correspondent which il claims as a
sensation. II is as follows. omittinS the
date:
Attorney General +. B. Dawes Sec
retary OF State W. c. Edwards and SD
perintendent of Public Instruction Ed
nlond Stanley. comprising the state
school fund commission. lately purchas-
ed for the school fund 100000 of Cowley
county AZ per cent thirty-year refund
ing bonds. and thereby hangs "a tale
For the past year the board OF coun-
ty commissioners of Cowley county has
been negotiating for the refunding Of the
s1e), 900 bonds issued TO the Kansas City
and Southwestern railroad, now the
Frisco line. in 1855. The bonds were
'ten-thirtys' and drew s per cent inter-
est The Law requires that al the expira-
tion OF ten years from the date OF issue
sum equal 10 one-twentisth Of any is
sue of bonds shall be levied annually 20
be placed in a sinking fund for the pay
ment of such bonds The board felt that
would hs2 hasfaP IN r1f,,nd fna<a hA.,aS
than TO levy for a sinking fund at this
time.
The best offer made the board was
from Pitzer & Co. of New York They
proposed TO get in the old issue and ac-
cept IN exchange therefor refundins
bonds TO run thirty years, with only
hfteen-yesr option in which the county
would retire any of them. the refunding
bonds TO draw per cent interest. The
proposition was not accepted.
The board then employed L. A. Big
ser. Hutchinson financier. to see the
state school fund commissioners about
purchasing the bonds. In few days
Bigger reported that the school fund
commissioners would make no better or
er than that of Pitzer & Co.
The board then appointed Edward p.
Greer, editor OF the Winfield Courier. to
be its agent, TO refund the bonds. and
entered into contract with him. au-
thorizing him TO refund the old bonds
into bonds bearing a rate of interest not
20 exceed ) per cent, and reserving the
option to Cowley county TO pay any one
or more of such bonds at any interest
payment after two years from date
thereof For his services and all ex-
penses incurred of every kind and char
acter Mr.. Greer was 10 receive nothing
unless he should succeed in taking up
the refunding outstanding bonds into
two-thirty bonds bearing a less rate OF
interest than per cent. in which event
ne was to receive as his compensation a
sum equal 10 the difference between .
per cent and the rate at which he might
succeed in refunding such bonds.
Greer took w. c.. Robinson. president
of the First National bank of Winfield.
into the deal, and the succeeded in re-
t:ring the old bonds, bearing per cent,
and selling the new bonds, bearing AZ
per cent, 10 the state, securing to the
county the option of retiring the bonds
at any time.
when the deal was completed Greer
put in a bill for S15, 900, which the county
board refused to pay, and a committee
has been appointed TO ascertain the prop
er commission due Greer under the con-
tract. Greer declares that he will not
take a cent less than $4,000 and threat
ems to sue He says that he saved the
county SEC, 900 by the transaction.
"The part of the story which smacks
Of sensation is that Greer is quoted as
having said he would not make more
than 81 900 out of the deal, even II the
board would pay his bill In full. for the
reason that he had 10 divide with so
many fellows The action of the school
fund commission in taking the bonds at
Az per cent after having refused TO take
them at less than is regarded by some
with suspicion, in the light of recent de-
velopments.
But Secretary Edwards says that the
school fund commissioners did not refuse
u take the bonds at less than per cent.
we had only one meeting Edwards
said, and decided TO take the bonds at
Az per cent Mr.. Bigger had previously
come here to see us about the bonds. but
Dawes and Stanley were not in town.
He and l talked about a per cent rate.
but of course, no understanding was
reached. He promised to come back, but
saw nothing more OF him.
"'When next / heard about the bonds
Greer had charge of them. He said an
eastern firm had offered to take the
bonds at AZ per cent. and wanted US TO
take them AT that rate. Money was idle
in the school fund. and we decided TO
take the bonds. The bonds are gilt-edged
end I regard the investment as q good
one for the state.
Attorney General Dawes and Super
intendent Stanley are not in the city. and
their statements. therefore, could not be
obtained"