The Butler weekly times. (Butler, Mo.) 1881-1918, 1900-10-18
crH0OL FUND HISTORY
FROM STATE RECORDS.
r,otain Allen Replies to False Repub-
I;cau Charges With Some II ithertO
Unpublished Facts.

tHpubtlSHCu oNIo'
Jefferson City, Mo, Oct. 12.-An
.d;torial in Yesterdays GlObe-DemO-
erat continues the onslaught upon
tho mana cement OF the state school
und Regarding it, Captain Albert
d Allen. democratic candidate for
.tate auditor, said to a Times repre-
sentative this evening:
~ have read i'll tO-day's Globe
nomocrat the editorial under the
\ eantion. a Series of Brazen False
hoods, referring to the state school
nnd. If the expression had been ap-
nFied to the series of gross misrepre-
ontations which has lately appear
sd in the Globe Dem ocrat relative to
this subject it would not have been
misapplied. 1t is all tissue OF false
hood. but | wish to notice particu-
arly one portion OF it.
.sThe editorial, among other things
saws: Democratic state officers and
/ democratic legislature took those
/ cash assets belonging to the schools,
spent the money as general revenue,
/ and on july 1, 1872, issued the first
/ prtificate of state indebtedness.
"The records of the auditors office
| show that not dollar of the school
| fund was ever spent in paying the
! current expenses OF the state.
1T is necessary to go back to 1866
Ehen the republicans were in power,
| 10 get at the bottom of this school
/ und matter An investigation will
! show where the looting occurred. In
l 1866 the ateschool fund amounted
/ to $661 .967 SO in state bank stock
/ and $4,000 in Pacific railway
bonds. In that year Josiah Fogg,
| as agent of the state, sold this Bank
| stock to James B. Eads for $71S,-
4 23525. James B. Eads paid S3 per
cent premium for this stock, but
| paid for it in matured coupons and
/ state bonds. which at that time were
worth 20 cents. 1t is easily seen at
| what discount he got them. These
state bonds received from Eads were
cancelled and put in the state treas
| ury vaults with a memorandum at
tached stating what they were and
how they had been Cancelled.
In 1870 the question came up as
| to who was entitled to the dividends
arising out of these shares of stock.
Attorney General Wingate then in
stituted suit for the dividends. An
agreed statement of facts between
the attorneys was that the state OF
Missouri had received this amount |
ofmoney from Eads. The court de-
clded that the sale to Eads was not
valid, but at the same time the state |
bonds received from him were lying |
IN the treasury vaults. Cancelled, and
had been there since 1866. This was
discovered in 1870 and an act was
passed by the Legislature next con-
senlng providing that the state audi
Tor. as agent, should sell the bank
STOCK to Eads upon the terms OF the
| original contract, and to authorize
'Ae state auditor to receive i'll pay
nent therefor the treasurer's receipt
% Eads for the bonds heretofore paid
IN by him
The quotations are from State
aadltor Draper's report and show
| edat the whole transaction had been
made with Eads four years before
aad the bonds were lying in the
'aults cancelled. Another instance
'uicn shows this is the fact that
afthoer OF the house proposed as an
auendment to the act in question
'uat the state hand back the bonds
aau coupons to Mr.. Eads, showing
l'aFther that the 271S. 1858 were
I'aen IN the vaults as Cancelled bonds.
IN The report of State Auditor
thompson in 1868 the amount of the
Suool fund is enumerated. Nowhere
0Wever, is mention made of the
'io,225o.35. This amount appears,
aough, in the statement of the
0aoed indebtedness of the state.
'als shows conclusively that the pro-
's0s OF the sale of the bank stock to
'aas, or the S11S. .235.35 was treat
vas cancelled bonds by the repubh-
he act of March %, 1872, recit-
tne sale of the bank stock to
1us and the receipt of the state
.