The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1901-08-27
KANSAS Is LOSER
State Permanent School Fund
Decreased by 100000.
B00MS CAUSED TROUBLE
And Now Western Counties
Can't Pay Up.

Topeka, Kan, Aug. Boy reason Of
the boom in western Kansas during tho
eighties, the state permanent school VII
suffer los sof about 100000. Attorney
General Goddard has finished an investi.
cation Of the value of the bonds held IL
the fund and has come TO the conclusion
that all but about this amount will in
the end be paid. At the present time there
are $4,000 in bonds upon which payments
have lapsed but the counties in most in
stances have not attempted to repudiate
them and win pay up as soon as their
finances win permit. The bonds, which
are delinquent, were all issued during
boom days by counties in the western
portion of the state and at that time
were thought to be good. Since the
boom collapsed and the majority Of the
people left the country it has nearly been
an impossibility for the counties to even
keep up the payment Of interest on their
Indebtedness. When the present admin
istration came into power, something like
three years ago, there were delinquent
nearly 100000 in bonds. This amount has
been steadily cut down and is still rapidly
being diminished.
Were it not for a provision Of the con-
stitution that says the permanent school
fund shall never be diminished, many
of the bonds would have been comprom-
ised years ago. It is thought now, how
ever, that a way has been found to get
around this clause. It is argued that the
fund was inavoidably diminished by the
investment of a portion of the funds in
bad securities and that if a compromise
is affected the fund will be increased
rather than diminished. T is probable
that some action Of this sort will be
taken in the near future and the remain
der Of the outstanding delinquent bonds
cleared up.
Notwithstanding the fact that the state
VIII suffer a loss Of at least 800. 900
through bad investments. It is claimed by
some Of the state officers that the state
is really not a loser through the transac-
ton. During the time Of the boom,
thousands Of acres of the state school
land in western Kansas were sold at
fancy figures. A portion Of the money
was paid cash down and payments were
kept up on the remainder for several
years. In the end most of the land re-
verted to the state and since has been
sold to actual settlers for something like
its real value In this way much of the
school land has really been sold twice,
it is averred, has realized much more
than its losses through investment in bad
bonds
It is possible that bill will be intro
duced in the next legislature to amend
the law providing that all charter fees
above a nominal sum be placed to the
credit Of the permanent school fund. The
claim is advanced that the school fund
is not in need of the money while the
general revenue fund is. The amount re-
ceived from charter fees aggregate about
100000 year and practically all of it
goes into the school fund.
When the permanent school fund was
established the intention was to assist
the maintenance of public schools by the
counties Of the state. There is now seven
and one-half million dollars in the
funds and the interest upon it yields
about so cents per year for each child
of school age IN the state. The fund, it
is averred, is now large enough and there
is no need Of it being further increased.
The counties of Kansas are now in such
a position that the support of public
schools is no longer a burden.
Instead of being for the purpose of sup
porting schools. the real use of the fund
at the present time. it Is averred. is to
furnish municipalities Of the state an op-
portunity TO dispose of their bonds at
q low rate OF interest. The result Of the
use Of the fund in this manner. 1t is
claimed, has been the placing Of Kansas
securities at par and opening UP a market
for them in every part of the country.
The purchase Of the bonds by the school
fund commissioners has also rendered it
impossible for dishonest officials to sell
bonds at a good figure and then report
that they have sold them for consider
ably less and pocket the difference.