The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-02-26
GREAT SAVING TO STATE.
$5oO,oOO.OO Saved to the State in Re-
funding Its Municipal Indebt-
ednezs

During the past year attention has
frequently been called to the extensive
business being conducted by the firm of
Kelly, E'OOte q Co, of this city, in re-
funding Kansas bonds, and readjusting
the states municipal Indebtedness. but
it was not until inquiry was made into
the details of the operations of this firm
that knowledge of the immense volume
of business transacted was secured
About three years ago ex-State Sen
ator H. b. Kelly began a critical in
vestigation of all laws relative to the
issuing of bonds in this state. and the
refunding of outstanding municipal in
debtednesS, and to the gathering of sta
tistics in connection Herewith. AS
result, he decided that there was a
large portion of the states Indebtedness,
which was created by voting aid to the
construction Of railroads, that was
made optional by act of the legis-
lature in 1881 Many lawyers, however,
construed that law to apply only to the
payment of railway aid bonds where
the municipality had raised the money
by taxation, but the senator decided,
that under this act, municipalities could
issue refunding bonds for the purpose
of securing money with which to take
up and cancel the old original issue.
Having full confidence in his fnterpre-
tations of the law, Mr.. Kelly associated
Mr.. Geo. NJ. Noble with him and pro-
ceeded to refund $100,000.0O of jackson
cOunty's c., K. & N. SIS, taking from
the county an equal amount of 5 per
cent refunding bonds in lieu thereof, by
which the county saved 81, 10000 per an
mum in interest.
About the time this deal was closed
hostilities broke out between the Unit
ed States and Spain, which suspended
further operations along this line
At the close of the war, and after the
financial circles of the country became
quieted, Senator Kelly succeeded in in
teresting Judge c. E. Foote in his plan
of readjusting municipal Indebtedness.
which resulted he Of
Kelly, FOOte & Co. that is now known
throughout the bond and investment
circles of the entire country. A num-
Der of the leading financial papers of
New York have called favorable atten-
ton to the extensive operations of this
new firm and the State Journal is glad
to make mention of this as well as 9TH
er enterprises in Topeka.
When this firm began operations, no
township in the state had ever sold its
bonds at a better rate of interest than
s per cent and in many instances had
issued and outstanding Z per cent and
8 per cent bonds. Investors had de-
clined to take Kansas township bonds
at lower rates. but by Offering refund
ing bonds in large blocks. nelly, FOOte
& Co. succeeded in placing $500 100000
by which the state has been saved dur
ing the first year over $15,000.00 in in
tereSt and in the aggregate about $780,
900.
In this refunding business the munich
lowering their interest rate, but have
had the privilege of issuing their new
bonds on an optional annual INSTALL
ment basis, thus enabling them to pay
off their debt in annual payments in
stead of creating a large sinking fund
to lie idle in the treasury awaiting
distant maturity of the debt. This
change is not only a great convenience
but in the end an additional saving.
During these operations the firm has
met a more or less fiuctuating money
market, hence, has in some instances
handled the business on a very small
margin, while at other times it has
been more fortunate.
In addition to establishing the cor
rectness of Kelly, Foote & Co.'S inter
probation of the Kansas refunding laws
and in conducting the large volume of
business above recited, this firm of
lawyers and brokers has acquired a
knowledge of the bond laws of this and
other states, together with the various
decisions of state and federal courts,
which doubtless makes the firm one of
the best qualified as bond attorneys in
this country.
This firm, which is now composed of
H. B. Kelly, c. E. Foote and K G.
Kelly, is not combining its operations to
the bond business, but has for some
time been investigating and investing
in the rich zinc lands of Kansas and
Arkansas, and is now negotiating for
extensive interests in Galena and Joplin
mines. The firm has associated with
it, and in its employ, a number of
prominent men over the state.
NnDVTTT TnnTNK