The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-18
KANSAS LEGISLATURE.
ASBad Practice Which Has Re-
suited in Many Scandals
To Be Investigated by the Pres
emit Legislature.
Will Look in the Records of the Sale
of 500. 900 Bonds Issued by Cow
ley County, to the School
Commissioners.

The first investigation ordered by the
house of representatives and for which
Brown of CowIey. Graves of Leaven-
worth. CPop) and Johnson Of Nemaha,
(RepO were designated as special
committee is now in progress at the Of
fee of the attorney general
The committee, of which Attorney
General Boyle is a member, being auth
orized to conduct the investigation, is
going into the records of a sale of $780,
600 in refunding bonds, issued by cow
ley countyto the state school fund COM
nisSioners for the state permanent
school fund. The purchase was made
by Attorney General Dawes. Secretary
Edwards and State Superintendent
Stanley, the members of the commission
under Governor MOrriIs administra-
ton.
The investigation began at 4 o'clock
yesterday afternoon and was resumed
again this morning at 10 O'Clock u W.
Pierce, chairman of the commissioners
of Cowley county, was the first witness
examined His testimony developed the
fact that the bonds had been sold TO
the school fund commissioners by E z
Greer editor Of the Winfield Courier,
who had entered into a contract with
the commissioners of COwley county to
dispose of the bonds. The bonds draw
5 per cent interest The contract which
has been introduced as evidence, shows
that the commissioners had agreed to
pay Mr.. Greer the difference between
the IA te which the bonds were drawing
a s interest and the amount at which he
succeeded in selling them
The school fund commissioners de-
clined to purchase the bonds at per
cent from the county commissioners
but afterwards took them from Mr.
Greer at four and one-haf per cent
His commission therefore amounted to
about SIS, 900.
Mr.. Pierce testified in substance as
follows, before the committee yesterday
afternoon: After the bonds had been
6l6
commission from the county commits
sioners. They declined to pay it. claim
ing that it had been agreed that the
commission should be paid in thirty in
StaIImentS and at such time as the in
terest was due. Mr. Greer, however, in
sisted upon receiving the whole amount
and employed Madden and Buchanan,
Winfield lawyers, TO bring suit to re-
cover upon the contract the amount
which he claimed The suit was COM
promised and Mr.. Greer accepted SSH
rendered by the commissioners. but not
until after the house of representatives
had ordered the investigation
The testimony further showed that
the school fund commissioners had is
sued warrant for 800 900, the face val
ue of the bonds. which was paid by the
state treasurer August 1, 1896
The new bonds were delivered and
the bonds to pay which the refunding
series was issued, were cancelled Aug
ust 10, ten days after the bonds had
been paid for by the commissioners The
details pertaining to this transaction.
the evidence tending to prove the claim
that Mr. Greer had prOhted largely by
the venture, although not in excess or
in any other manner than provided by
the contract.
However, there is one important
question which obtrudes from the mys-
terry surrounding the proceedings dur
ing the ten days which elapsed between
the purch base and cancellation of the
old bonds. The suggestion has been
made that there was -'slush fund
somewhere and the question arises, if
that be true, who got it2 Mr. Dawes,
Mr.. Edwards and Mr. Stanley telegra phi
| ed from Port Arthur. Tex. Counting a
full and complete investigate but
/ this did not satisfy the Populists- Some
I of the Populists assert that there is
/ crOOkedneSS somewhere and they pro-
pose to ferret it out if possible
/ Whether or not this investigation will
/ develop it remains to be seen, but one
/ fact Is already assured that the school
/ fund has been large contributor to the
/ financial welfare of numerous fndivid-
uaIs who have acted as gO-between.
I The manifest injustice of this practice
/ has been responsible for an order from
| the PopuIist commissioners that here
[ after no bonds will be purchased
| through an intermediate or third party.