Hutchinson gazette., 1898-10-13
THAT BOND SCANDAL.

THAT BOND SCANDAL.
Last February full statement an(
explanation Of this transaction was pub
llshed, but as the time is now nearing
when the people must by their votes ex-
press their approval or administer theil
rebuke, for such methods in the public
business, we print 1t again and ask your
candid perusal and consideration. The
facts are these:
In 1887 the county voted aud the COM
missoners Issued bonds In aid OF the
@. X. 81 N. now known rs the Rock
Island. by the terms OF the bonds they
were TO draw six per cent interest and
we're to run twenty years. But the leg
islature o! 1897, passed law, published
March 9th, part Of which Is as follows
SECTION !. All bonds hereafter is
sued by boards OF county commissioners
township board, or by the authorities OF
incorporated cities, TO railroad corpora
tons, shall be redeemable at the pleas
ure Of the board Of county commission
ere, or authorities issuing the same, al
any time after ten years from the date
Of their issue.
Section two, providing for the redemp.
ton, says:
And when II Is desired to redeem any
Of such bonds, the county, township OF
city treasurer shall cause to be published
for six consecutive Issues in the official
state paper notice that certain bonds,
by numbers and amounts Of certain
county, city or township, will be paid at
the place where payable, and at the ex-
piration OF thirty days from the date Of
the last publication such bonds shall
cease to bear interest.
The bonds issued were dated August
Is, 1887, and were therefore under the
scope Of this act. They we're made pay
able, like other bonds, at the fiscal
agency at New York City. The mat
ter Of taking up the old bonds and is
suing new ones was therefore a COM
paratlvely simple one. The old bonds
were due August 10, 1907. Anyone who
reads might know where they were pay
able. All that would be necessary
would be to find some party who would
buy new bonds at lower rate of inter-
'st than the old rate, and the exchange
,ould be easily made by the county
But about this time Mr.. Big
ger made a proposal to the board which
vas accepted. The following is a copy
II his proposal:
Hon. BOARD OF COUNTY COMMISSIONERS
RENO COUNTY, HUTCHINSON:
GENTLEMEN: As per conversation at
,our last sitting, propose TO advance
or Reno county $75,0O0 and deposit the
anne at the fiscal agency for the State Of
Kansas. New York City, for the use and
benefit OF Reno county on or before Feb
'uary Is, 1893, to be used by said county
exclusively for the purpose of rendering
md making payment for and taking up
md canceling seventy-iive bonds Of
II 900 each, issued in aid of the @. X.
Y N. r. II. am to receive said bonds
10 paid and same are to be by me held
10 security for such advance until the
county shall issue me in exchange there
or new relunding bonds Of Reno county
% run thirty years and to bear interest
1t the rate Of Il per cent interest per
.nnum, payable semi annually at the
said fiscal agency; said refunding bonds
% contain nm option giving the county
he right OF payment at any time after
,wenty years from their date. Any and
Ill county officers to assist in any way
required, by way Of giving information
from the records or as to the where
lbouts of said bonds, and to assist in the
of the transaction In general;
interest coupons to be attached to the
new refunding bonds in manner and
form to be by me designated according
to law,
Any excess of compensation to me over
one-iourth Of one per cent per annum
for time new bonds shall run to innure
to benefit of Reno county, compensation
to be allowed only on amount Of new is
sue of bonds. When new Issue Of bonds
are ready for sale commissioners reserve
the right to accept lowest offer for same
from other parties, IN WHICH CASE COM
pENsATIoN ABOVE STATED TO BE Az
LOWED TO ME.
Very respectfully,
L, A, BIGGER.
On December 7th, 1897, the board Of
commissioners passed the following res
olutlon accepting Mr.. Bigger's proposal.
The resolution was as follows:
Be it Resolved, That l.. A. Bigger is
hereby appointed agent for the county
Of Reno, State of Kansas, for the pur-
pose Of negotiating with the holders Of
sundry bonds in the snm Of seventy five
thousand dollars, (S75.000) issued in
aid Of the q. X. u N. r. r. and is au
thorized to tender payment for same at
the fiscal agency, New York, at their
face value and accrued interest thereon
as provided by law and to demand the
surrender Of said bonds and the cancel
lation of same. This authority to be