The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-09-05

continued from rage One-)
Comanche county bonds which were not
salable on the open market when they
were drawing 8 per cent interest a good
investment for the state at par when
they were drawing but four and a half
per cent INTEREST," Was il such deal
as any good business man would have
made for himself? The commission can
not get away from the fact that the
COmanche county bonds were Offered
TO them when they were drawing 6 per
cent interest, Notwithstanding their
statement. The records show that they
were bought when they were drawing
but four and a half per cent.
The State Journal is prepared to
prove that II. B. Kelly offered the Co
Inanche county bonds to the state
school fund commission on March 5.
1904, more than two months before his
option expired.
1t is prepared to show that A. A. God
ard. who acted as the broker in the
deal. either had an understanding that
he could dispose of the bonds before he
had the bonds refunded, or else he did
something which no one with any fin
ancial judgment would think of doing.
1t is prepared to show that every eff
fort was made to keep the deal a Sc
cret. even to the extent of having the
bonds registered out of business hours.
The facts are these:
H. b Kelly on March last. made
a written offer of these bonds to the
state school fund commission. A few
days later T. ]. Hays, bond clerk in the
Office of the superintendent of public
instruction, told Mr.. Kelly that the Of
fer had been received and would be
considered by the commission at its
next meeting. On March Il Mr.. Kelly
gave A. A GODDARD the same offer and
authorized him to present it to the
commission. believing that Mr.. GODDARD
might have influence with the commits
sion in disposing of the bonds Four or
five days later H. B. Kelly called Mr.
-
about the matter. Mr.. Kelly says Mr..
GODDARD replied that he did not believe
he could sell the bonds. for he did not
think the school fund commission would
accept bonds on a basis of valuation
fixed by the state board of equalization.
but to leave the offer with him for a
while and he would see about it later.
On March "a State Treasurer I. T.
Kelly telephoned H b. Kelly to come
to his Office. H. b. Kelly had previous
" told the state treasurer he had some
Comanche county bonds to sell 7 Il.
Kelly told II. 3. Kelly that Mr. Cedar q
said he could sell the bonds and that
GODDARD had asked him. T. T. Kelly, to
help locate the owners of the bonds.
IL B. Kelly's option on the bonds then
expired on April Is. but he Immediately
got 1t extended another thirty days. On
May IA H B. Kelly wired asking that
the option be extended for ninety. days
longer. to which the agent for the hold
ers of the bonds replied that the option
could not be extended as the holders of
the bonds had raised the pricA but that
an offer of 9Siz would be considered.
On May IS Mr.. GODDARD proposed to the
county commissioners of Comanche|
county to refund the bonds at ~ per
cent, giving him a bonus of $4,000 for
doing it Early in June H. b. Kelly
offered the holders of the bonds to pay
more than any other offer below par
and also to divide the profits which
would be made by selling the bonds ut
par. H. d. Thompson of Des Moines. j.
agent for the owners OF the bonds. re-
piled that the offer had come Just too
late as the bonds had just been sold.
Would Mr.. GODDARD ever have pur-
chased those bonds and then agreed to
cut down the interest on them from 6
per cent to Az per cent If he had not
had an understanding that he could sell