The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1903-05-23

The Nevada State Board of Education
recently negotiated an exchange of $780,.
600 in United States bonds, belonging tc
the Nevada State School Fund, for Massa'
chusetts bonds. The transaction has
provoked a great deal of comment, pre-
and con, in the western part Of the State,
and the officials directly involved are
just now in the public eye. The Winnie
mucca Silver State and the Carson City
News are devoting considerable space to
the subject, the latter on The defense.
Nothing has yet been printed as an Of
fetal statement from the Board, or any
member thereof, despite the fact that the
Silver State of April % in an editorial,
entitled Information We're After,''
asked the Board to make public the de-
tails of the exchange of securities, in the
following
Pertinent Questions.
First-Where can the authority of law
for the sale Of such bonds, belonging to
the State School Fund, be found?
Second-What was the market price Of
those bonds at the time the swap was
made?
Third-What was the market price OF
the Massachusetts 3 per cent bonds when
they were purchased?
Fourth-Did this State have all the
4 per cent government bonds in exist
ence at the time of the sale?
Fifth-Did Mr.. Kelly, representing the
Kansas City syndicate of capitalists,
have all of the Massachusetts 3 per cent
bonds in existence at the time of the
purchase?
Sixth-How did the State Board of
Education know that it wouIdpot have a
more advantageous opportunity for in
vestment of the $4OO, 900 belonging to the
School Fund at the expiration of the life
of the bonds it sold?
Seventh-Who was the member of the
Board who went East to investigate the
securities offered this State when did he
go, and who paid his travelling and other
expenses? y
Eighth-If, az claimed, the Senate and
House Committees on Education, were
called in and made acquainted with the
details OF the proposed exchange, and
gave it their approval and the Board Of
Education considered it a "good business
DEAL" what was the occasion for sending
a man East to find if it would be advisable
to make the trade?
Wants Thorn to Explain.
On May II, can investigator, weary Of
waiting on our Board of Education, }" did
a little figuring himself, with the follow
ing results:
Winnemucca, May II, 1908.
Editor Silver State II, with many
other friends of our public schools, have
been looking anxiously for explicit and
satisfactory answers to your pertinent
questions put to our State Board of Edu-
cation and their newspaper apologists
concerning the swap Of $500, 900 in U. S.
bonds, drawing an annual interest OF A
per cent, for a like sum in Massachusetts,
bonds, drawing 8 per cent interest.
These gentlemen are OF high standing
and are, doubtless, experts in arithmetic
or the science of numbers and could, If
they would, figure out the profit or loss
received or incurred by the respective
parties to the transaction but it seems
that they are also skilled in the political
science OF silence, as no reply to your
questions has been made.
Since figures, based on certain facts
and considered according to the rules
laid down in arithmetic, are as truthful
as the "Father of His, Country" was,
| will give you the profits and losses in
volved in the deal, basing my figures on
the facts as given in the Carson News
| and on the reports of the value OF the
two sets OF bonds quoted in the New
| York stock exchange on the date OF the
bond swap.
The News says that the deal was maoe
in the following manner: "United
| States 4 per cent bonds to the amount OF
$500, 900, were sold at $1.1O and the pro-
ceeds invested in Massachusetts 3 per
cent bonds at $1.024.
The reported market value OF the US
4s at that time on the New York stock
exchange was $1.114, Massachusetts %
atpar.
The sale of the U. S. As at $l.lC
amounted to $3.50 $1,000, but they could
have been sold at $1.114 on the stock ex'
change in New York for 1857 500. The
SIS, $50, the difference between the
amount sold for and their market value
in the New York stock market gives Mr.
Kelly that sum as profits.
The Massachusetts So, being bought a
81. O24, market value being par Mr.. Kelly''
profits were augmented by $l1 ,25O by ou'
purchase. The profits SO far aggregate