The St. Louis Republic., 1900-10-12
Democratic Nominee for State Au-
ditOr Discusses That "Serics
of Brazen falsehoods.'
FACTS FROM THE RECORDS.
Vigorous Reply to Editorial Which
MisquOtcd Figures and Dates
in Effort 10 Show Demo
Gratis ut fauit.
EFPvGLLr SPECIAL.

i;FFt Bt1r SPECIAL.
jefferson city. No. oct. II Regarding an
editorial in to-dly's Globe Democrat. con-
tinuinc the onslaught upon The Democratic
management of the state school fund, cap
tain Albert o. Allen, Democratic nominee
for state ATGitor. said to a Republic rep
r, sentative tonight:
Il have read in tc-!ay's Glohe-ne7ocrat
the editorial under the caption. a Series Of
Brazen F'alsehoods.' referring TO the State
school fund. If the expression had been ap-
LLied TO the series Of gross misrr2reeeHta-
tions which has lately appeared in the
Globe-pemocrat relative 10 this subject II
would no; have been risap3l.d
~: is all a tissue Of falsohood. but l wish
to notice particularly one portion. The cd
itorial. among other things. says: Demo
cratic State olfi,ers and Democratic Leg
islature took these cash assets belonging 10
the schools. spent the money as general
revenue, and. on July 1. 49,. issued the
first certificate of State Indebtedness
The records of the AUDITORS office show
that not a dollar Of tha school fund was
ever spent in paying the current expenses
of the State. I; Is necessary to go back 10
iS66 when the Republicans were in power.
to get al the bottom of this school fund
matter. An investigation Will show where
the looting occurred.
The Fund in 1863.
'In 1866 the state school fund amounted
TO s6dl.9s..s " in State Bank stock and s2oeOo
in Pacific Railway bonds In that year
Josiah Fogg, AS agent Of the State, sold
this bank stock 10 James Il. Eads for siIs.-
G35.2o. Eads paid Si2 premium for the stock.
but paid for it i'll matured coupons and
state bonds, which at that time were worm
20 cents. 1t Is easily seen at waat discount
he got them. These State bonus Received
from l.ads Were Cancelled and put In the
State Treasury. with mesEo,aEdum at
taCEed stating what tney were ana no"
tley had been Cancelled.
In 1910 the question came up as 10 who
was entitled to the dividends arising out OF
these shares Of stock Attorney General
Wingate then instituted suit for The diVl-
dends- An agreed statement OF facts be-
tween the attorneys was that the state OF
Missouri had received this amount of money
from Eads. The court decided that the sale
TO lads was not valid, but al the same time
the State bonds received from him We're ly-
ing. in the Treasury vaults Cancelled, and
had been there since 1856.
This was discovered in 1870. and an act
was passed by the LEGISLATURE next cunyen-
ing providing that the State Auditor, az
agent. should sell the stock TO Eads upon
the terms of the original contract, and au-
thorzing the State Auditor to receive IN
payment therefor the Treasurer's receipts TO
Eads for the bonds paid in by him.
These facts are taken from Auditor pra-
per's report. and show that the whole trans
action had been made with EadS four years
before, and that the bonds were lying IN the
vaults canceied Another instance Uhich
shows this is the fact that a member of the
House proposed as an amendment to the act
in question that the State hand back The
bonds and coupons to Mr. Eads.
Auditor Thompson's Report.
I'm the reports of Auditor Thompson N
1875 the amount of the school fund Is end
meraied. Nowhere, however. is mention
made 6f the Sis 1855. This amount appears
though in the statement of the bonded in
Gebtedness OF the State. This shows con-
clusively that the proceeds Of the sale ut
81, Il
$685.. was treated as Cancelled bonds by the
.sThe act of March %. 1S72 recitlus the
sale Of the bank stock TO Eads and the re-
ceipt Of the State bonds In payment, pro-
vided for the issuing of n certificate of in
debtedness for $4,000 in lieu of the princi-
ever, from the foregoing. that this Sis
235.2j had been paid by James B. Eads in
1866 for the school fund of sjj1,96..9 81. and
had been lying in the vaults Cancelled
bonds, and not in cash as contended by the
Globe-Democrat. The fact that the Interest
UP to is12 on the original amount OF Si6i,-
OF InGebtednesS shows tbs
The report of the AUDITOR in $50 is the
To the school fund, and then in the shape
OF the $9y0.oGo certificate OF indebtedness
which is the principal and interest in the
State bonds which James b. f ads paid for
the State Bank stock purchased by him in
1856. and which bonds we're Cancelled by the
Republicans.
Present Status of Fund.
'It Is useless to recount the growth of the
school fund of Missouri and It's Investment
IN State certificates Of indebtedness. This
has been done many times in this cam
paign. The school fund proper nov amounts
10 S,l.S,ee0 in State certificates Of indebted
ness, drawing and per cent interest.
That this is better investment than Uni
ted States or State bonds and yields the
school children much more Is apparent
THE editorial reclt-s. These certificates
are exclusively a Democratic invention and
there IS nothing like them In any other
State The writer Of the editorial betrays
his ignorance by this statement. The school
funds of Illinois. Wisconsin. Michigan and
Iowa are Invested In exactly the same man
ner. and are called certificates Of indebted
ness. bonds of the State being Cancelled an1
certificates OF Indebtedness issued In lieu
thereof
''in another editorial on How the Schools
Lost Their Bonds the statement is made
that sl0.5i2.5o in commissions was paid by
the Democrats in wining out the public
school fUnd. This Is another misstatement
The gentleman who received this big COM
mission was Attorney General Wingate, a
Republican, and IL was for collecting the
dividends accruing on the bank stock which
James II. Eads purchased. In his report the
late W. q. DaIlmeyer. VINO was State Treas
urer at that time. rccites the fact that |.
was paid to Mr.. Wingate over his protest"