The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1902-12-12
CAN BUY BONDS
Court Approves Purchase Of
Massachusetts Securities
DECISION is VA sHoRT
WIN Create Revelation in Methods
Board Of Educational Lands and
Funds Welcomes the Decision
WIN Invest In Securities

With the sanction OF the supreme
court the Nebraska board OF education
al lands and funds will revolutio nize
investment methods by buying $500. 600
state Of Massachusetts, bonds De-
partment No. 1 Of the court, compris-
ing Commissioners Hastings. KirkDat-
rick and LObingier, Wednesday last
gave decision granting a writ Of
mandamus requiring State Treasurer
Steufer to pay out not TO exceed $780,
600 for Massachusetts, bonds in accord
ance with an order Of The board.
The remarkable thing about this
transaction is that Nebraska viii be
the only far western state TO hold Sc
curities Of one Of the old and rich
states Of the far east The board does
not disguise the fact that they do not
care to buy the bonds Of any and every
state in the union An opportunity re-
Gently offered for the purchased Z Ten
nessee bonds but il wis permitted to
pass unnOticed- If the board uses good
judgment in the future II is believed
the decision Of the court viii result in
nothing btu good for Nebraska
The decision came as the result Of a
test case fled by the board, comprising
Land Commissioner FOllmer. Secretary
PrOut and State Treasurer Steufer- The
4
agreed to buy the bonds which were Of
fered by a firm Of brokers Of Topeka,
Kelly & Kelly. Attorney. General Prout
gave the board an opinion in which he
said the right Of the board to buy the
bonds Of any other state could not be
successfully denied under the cOnstitu-
ton In order to secure a decision Of
the court Treasurer Steufer declined
TO pay out the money for such a pur-
pose and a mandamus suit was fled by
the attorney general
The petition Of the attorney general
states that on November II the board
accepted the following proposition sub
mitted by Kelly & Kelly. I'VE here
with offer you $500, 900 state Of Massa-
chusetts bonds bearing 31z per cent
interest to net you 3 per cent. If there
should not be sufficient funds on hand
to take up all at once we viii carry
them at q bank in Lincoln where they
can be delivered and taken up as the
funds come in All bonds offered will
run from thirty to forty years without
option, making a very desirable invest
ment'
The decision Of the court is very
brief In substance it holds that the
wording Of the constitution regarding
investments in United States bonds
and state securities and registered
county bonds Of this state means that
not only United States bonds may be
purchased, but that the securities of
any state may be bought
AS a result the uninvested educa-
tiOnal funds Of Nebraska will be in
vested Immediately. The sources Of in
vestment are growing scarcer all the
time and are so limited by the cOnsti-
tuition that money is constantly &C
cumUlating The decision Of the court
will give much relief but it may be
only temporary. About $500 900 Of edu-
catiOnal funds are now on hand and by
the first Of the year there will be
enough more to take up the $500. 600
bonds offered The state already holds
many county bonds but these are be
ing paid on rapidly with money which
is accommodating in county treasures.
Maturing land contracts are also bring
ing in a great deal Of money. Treas
ureT StUefeT already feels for his sue
cessOr who IS to be the custodian OF
this increasing fund. He believes the
board viii be called upon 10 invest
S12,OOO,OOO during the next five years
All attempts have failed TO amend the
constitution so as to permit invest
ment in school district bonds NUM-
cipal securities will also be favored BY
some when the time comes to amend
the constitution.