The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-06-23
Does Not Know Missouri Pacific
Bonds From Southwest Branch
Pacific Bonds.
BUNGLING BLUNDER IS EXPOSED
Man Who Made "Damning Charge"
Simply Published His Own Ig-
norance of the Financial
History of the State.


oil HHiohN VI "VhcIAOE DpChelE NHC STATE
Auditor has submitted a statement regard
ing the assertion Of ]. A. Parkes. the f.
nancial expert" to the effect that 81, 9iS,-
90 Of Missouri Pacific bonds had been paid
twice. or charged up as paid. by the State.
Auditor Allen shows that Parkes does
not know the difference between two sets OF
bonds. Parkes took the Missouri Pacific
bonds to be the same as Southwest Branch
frisco Pacific bonds. The bonds msn-
toned in the ordinance of 1915 were South
Auditors Office show that not one OF the
bonds described in the ordinance Of 1875
was ever paid or charged as paid. Auditor
Aliens statemen: follows:
Treasury Department OF Missouri. Office o,
State Auditor. City Of jefferson. June q. 1902
Honorable A. N Dockery. Governor OF Missouri.
jefferson City. No.: Dear SIr-Arswering YOUR
inquiry. whether am OF the State bonds described
in the ordinance adopted by the Constitutional
Convention in 1915. referred TO by Mr.. J. A.
Parkes in his statement recently published in the
Globe-Democrat. have since been paid by the
State. I beg to say that I have carefully exam
ined the records and find that no double pay
ment OF State bonds has been made. The facts
are as follows:
Under the acts OF 1855 and 1857. the Pacific
Railroad for its southwest branch was author
lied to ssue/sLsoO.ON : per cent bonds. guar
aIteed by TIE State. to aid IL the construction
Of that branch NOW known as the Frisco. and
s3.so9.OO bonds we're accordingly Issued and guar
anteed. numbered from I to $3.50. Inclusive.
Tie act Of November ls. 1857. supplemental to
the acts above mentioned. provided that such Of
the Z per cent bonds IS had then been guaranteed
by the State. in the possession or under the con-
troll OF the Pacific Railroad Southwest branch.
should be surrendered and exchanged for 6 Per
cent bends issued by the State. The records show
that about one-half OF such =! per cent bonds
were brought in and exchanged and are listed
In the convention ordinance OF 1875 as having
been paid.
Under the acts Of 1851. 1852. 1855 and 1851 the
State issued 100000 of 6 per cent bonds 10 aid
in the construction of the Pacific Railroad now
known as the Missouri Pacific. numbered from
l to 1000. inclusive
The bonds issued to the Pacific Railroad for
the construction OF the Southwest branch were
known and described in the State Auditors print
ed reports as Pacific Railroad Southwest branch
bonds" or Southwest Branch Pacific Railroad
bonds" and the bonds issued to the Pacific Rail-
road. as 'Pucihc Railroad bonds" or Missouri
Pacific Railroad bonds"
BY reference to pages = to p OF the state
Auditors report for 1sTs-sO. mentioned by Mr.
Parkes. 1 find a list OF s2.e7i.Wo 6 per cent Pa
cinc Railroad Missouri Pacific bonds outstand-
ing and counted as part OF the State debt On
January 1. 1851. and among them some of the
same number as the I per cent Southwest Branch
Pacific Railroad bonds mentioned IN the eonven-
ttcn ordinance.
Mr.. Parkes has apparently overlooked the fact
that there were two separate bonds. one Issued.
as heretofore stated. in behalf Of the Missouri
Pacific Railroad and the ether In behalf OF the
Southwest Branch Pacific Railroad NOW Frisco.
Each series began with No. l. the Missouri Pa
ciac numbers reaching 7.ce9. and the Southwest
Branch 10 a.sp. Consequently there were two
- ,or-a-ro-lfr- -r-ha- e. -. o,ta,, -
:ke Southwest Branch Pacific Railroad issue. The
.9Is bonds noted in the convention ordinance
and deposited In the State Treasury prior 10
1856, were never paid a second time. and the
bonds OF corresponding numbers. which MIR
Parkes lists in his statement. are Missouri Pa
cidc 6 per cent. and not Southwest Branch Pa
ciac Railroad 7 per cent bonds. As claimed by
him.
In fact. the records Of my office show clearly
that no part Of the bonds described in the con-
vention ordinance OF 1875 have since been paid
by the state. 1 have the honor to be. veEy re-
HILBERT o. ALLEN.
State Auditor. |
Governor Dockery's Comment.
Governor Dockery was asked to-day |
he had anything to submit in ad- |
to the official statement of State Au-
iitor Allen in reference to the reports of
The alleged experts" which recently ap-
tdACN III nv L
lor replied:
II have never seen a more farcical per-
rormance than the antics Of these Globe
Democrat experts No two of the five So
allied experts agree in their findings. They
should get together and reconcile their
differences before the ask other people to
seriously consider their statements. Their
exhibits are out OF balance. each with the
,ther, by more than sO.tOO.eOO. as was clear
" and forcefully shown by The Republic
IN its editorial of last Thursday.
Some months ago this administration EN-
oloyed a firm of experts of national reputa-
lion for ability and integrity. and had a
searching investigation made OF the States
for the past thirty-six years. 1t
weeks of hard work for the four
Experts to go through all the accounts COW
,ring this long period, When the work had
been concluded. it was found that every
1ollar OF the State funds nae been honestly
accounted for during the entire period of
control.
2 Globes Experts Muddled.
The Globe-Democrat. which had been
unwarranted assault upon the DEM
,cratic management of Missouri's financial
Iffairs. was invited to inspect the books and
given the assurance that every assistance
would be afforded to enable It to ascertain
III the facts. The Republican organ. how
'ver, refused to accept the invitation, but,
instead, has secured the services of a num-
Ter of individuals. who have furnished that
,aper confused and contradictory accounts
4 alleged discrepancies
"'The new accusation. that 1915 bonds had
zen paid twice, is in keeping with the other
ensational and incorrect statements which
partisan organs have been making
oncerning the financial affairs OF our
tate. Because bonds of a similar number
nut OF an entirely different series. bearing
different rate of interest. and in no wise
onnected with each other. nave been paid.
ne of these experts jumps at the conclu-
ion that these bonds, aggregatipg $,sls, 0GO,
ave been paid twice.
Every allegation they have made con-
erning these alleged discrepancies is
roven to be absolutely false by the search
ng Investigation and report of the corps
( national experts. made only a few
lonths since. The State books balanced to
cent. There had been no overpayment.
ither of bonds or OF interest, on the public
ebt; no juggling of accounts. or any other
official act which would m
he reputation or impeach the honor Of the
ing line of Democratic State officials, both
wing and dead"