The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-31
81
Two fraudulent bonds. :. q
Total


The face value of the bonds above
| listed is $3.50. From time to time since
| the bonds came due, a few remittances
have been received and have been creii-
ted to the proper bonds, but the records
of the state auditor show that there is
| still due on these delinquent bonds the
sum of ISIS.
In addition to the S7,515 which the
| the state school fund has a total loss on
| two fraudulent Comanche county
bonds. These Comanche bonds were
issued in 1874 for $1,000 each, with inter
They were to come due in 1883. They
were registered in 1877, and purchased
| by the state school fund. In the eli
tors bond register, these Comancne
ter them is endorsed in pencil this
word: FRAUDULENT" So far as the
records show, no interest or principal
has ever been paid on these bonds. The
state school fund was simply out the
value of the fraudulent bonds. The fact
that the county has never made an eff
fort to square this transaction does not
seem to have injured it's credit with the
present school fund commissioners.
Most bond buyers look with great sus-
piciOn on any corporation which had
ever issued fraudulent bonds, or repudi-
ated it's obligations, but it seems to be
different when it is the state which is
paying for the transa ction.
Each year, it is required that the
auditor check up with the state treas
urer, and ascertain the amount of de-
linquent bonds and coupons. The fol-
lowing is the reading of the statute:
TT shall be the duty of the auditor
of state, on the first Monday in August
of each year to compare the register
kept by him with the bonds in the
treasurers office, and shall at the time
of comparing such register require the
treasurer to produce all coupons and
bonds remaining unpaid, which shall be
or ~a6 wit he iGf0
The work of making this comparison
is not yet completed, according to Au-
ditor Wells. When asked to show the
register today Auditor Wells made
was doing the checking was "too busy
and then that all his books were over
in the treaSurer'S office. Subsequently,
however, Mr.. Wells discovered that the
books were in his own vault, and that
the clerk could devote five minutes to
looking up the Comanche county bonds,
the checking of which had just been
completed. The figures herewith pre-
scented are therefore right up to date,
and are obtained through the extreme
courtesy of Auditor Wells himself. All
credits shown on Auditor Wells
books are subtracted from the amount
due on the face of the bond.
Auditor Wells was inclined to ridi-
cule the idea that there was anything
worth printing in the fact that all the
CoTnanche county bonds are in default.
the same way" he said. 1T does not
prove hat a bond is bad simply be-
cause it is delinquent. These school
districts are slow about paying their
debts, that's all.''
It ought to be considered in deter
mining the propriety of loading the
school fund up with $123,000 more in
bonds of the same county.
How School Fund Is Depleted.
According to the 1902 report of the
state auditor, which is the last one is
sued, the state school fund commits
sioners have been obliged to compro-
mise the interest and principal on the
bonds of a number of counties near to
Comanche. The compromises listed
in the 1902 report are as follows:
Greeley county; amount due, interest
s14790. principal s62, ,500;, compro-
missed for S2,456, with an agreement
to accept one-sixth of the interest
thereafter.
Seward county; principal due, $12,-
900; interest due, $3.240; compro-
missed for $40, with an agreement to
accept one-third of the interest there
after.
wichita county; principal due, $685.
900; interest due, $14.700; compro-