The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-10-17
SHANNON TELLS
HOW MISSOURI BONDS WERE BOUGHT.

position Of the Triisd States bonds was not
optional with us. except as tn time. Wnen
could We sell to the best advantage and
get most gu; of the difference OF premium
between the two classes of bonds. To which
we Were limited. was the only question 10
be considered.
Why Changed to Stnte bonds.
In view of the fact that the United States
would soon take from Us the bonds We held
and give us cash for the prin, lal. the hold
ing of these bonds being impossible after
they Were cailt that part of the charge
Of acknowledgement in dispoSins of them
becomes At once ridiculous and clearly par
tisln unsCrupulousness.
The State Eoard of Education. in the
administration Of Governor WooGsOn. had
foreseen the impending nect ssty uhe un-
avOidableress, OF q change. at Il time when
n greater gain would have been realized
from a change. of the securities from
United States to State bonds and made
an effort at conversion by sending the State
Treasurer. Major S:lmon-than S whom the
State has not had an abler financier--to
New York 10 purchase Missouri bonds. But,
unfortunately. Major Salmon WAS fore
stalled and defeated by news of what was
pending evidently reaching New york
ahead of him. for h tells In his ofiicia
report that Missouri bonds advanc. d sharp
ly in price on his arrival. and that he could
not purchase them witho,n . sacrifice to
the School Fund
With the knowieG,,. Of this effort before
me. and believing that in so delicate busl-
ness az dealing in large financial transac-
uons the utmost caution and secrecy Were
demanded, secured tn, services OF 4 shrewd
ST. l.cu:s banker as Il confidential agent. TO
l'3rn for Whd; ihe desired bonds could 10.
purchased. and ii, ::ninc,l that no one else
should have the slightest int:mation Of what
/ intended until | should be ready TO con-
ciude a purch.ss. and must have the sup
port OF the Board When this time arrived
| revealed my plans. ard what had been
done. to General Hockaday, who unquaE-
iiedly inGorscd them, told me TO proceed to
the completion of my effort On the lines laid
down. and he would sustain me.
With this agreement ] soon purchased.
through my agent. of Kohn & Co. 81. 30
Geo in Missouri State bonds u0-2o per cent,
all they ow wned-at Is of l per cent above
par. the then market value being x Of
above then called the state board or
Education together and invited doVernnr
Hardin and Treasurer Mercer to meet with
ua NV report was made. officially indofsed
and hnartiiv commended by the two officers
attending the meeting. The next day Secre-
ta-v NcGrath and / succeeded In purchas-
ing from Colonel j. II. Britton *""Vv Oh
the sam. bonds At l. OF per cent apoVe
psr. subsequently twiihin few days, We
bought a few others at very nearly the
same figures.
After This by direction of the Board and
ON request Of the curators Of the tn.ver-
sity. I converted the United states bonus
In the eeTninary fund tslOsc@ into state
bonds (sla30c0 | also sold. by direction OF
the State Board of Education, but on pro-
test against taking so much Individual re-
sponsibility the United states bonds IN the
School Fund. .
The length Of this article forbids Comment
ON this last transaction. because its essen
tial details were fully given In my Official
report i'm January. 1876. and in that OF the
state Auditor Suffice it to say ii was emf
nentlv successful. and that as Auditor Sell
b.rt shows, nearly $4,000 was added to the
State School Fund
The Giobe-DemOCrat. so soon as II
learned of the transaction. editsriaiiy pro-
nounced 1t an admirable deed. Three years
afterwards. in 1873. when ] WAS again a
candidate. IL pretended. for purely partisan
ent,s to discover fraud and theft. and made
fas now ii does) an unscrupulous attack on
those who so splendidly managed sacred
trust fund.
The Globe plays upon the phrase cash
.ndnly:nent" knowing full well that the
fund did Mt have any cash. as ordinarily
,r.cr.tood In its endowment; that il Only
bad what II still haS-bonds certificates OF
Indebtedness. 1t knows that there is not
IN. shadow Of essential difference between
sc-callad State bonds and certificates or
Indebtedness; that these certihcates are
bonds. and fully meet the requirements OF
the Constitution
nor any other Democratic aum.nistfation
ever received. as revenue. dollar from the
sale Of the United states bonds; that tne
State bonds purchased did not belong. TIL
purcha-sd to the State. and that hence the
State could rot get q dollar ot the cash
paid for them R. u. SHANNON.