The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-27
DON'T HAVE TO WAIT.
Facts About the Payment of Bonds
Owned by State.

The controversy over the Smith Cen
ter bonds which Secretary of State
Burrow sold to the state school fund
commission. and whether they can be
refunded or paid before they become
due, is bringing to light a number of
interesting things.
For instance although it has been
asserted that they cannot be paid I'M
til they are due, because they are city
bonds and not county, township or
school district, the fact remains that
the state authorities have frequently
allowed city bonds to be Dald before
they are due and that it continues to
be done. If it is illegal to do this,
the state treasurer has been guilty of
frequently violating the law in this
respect.
The State Journal argued that if
those Smith Center bonds should be
paid or refunded before they begin to
draw interest for the state on August
L, 1905. the state school fund would
not receive a cent of interest on the
bonds which Mr.. Burrow bought for
the state from himself, and on which
he made good sum from clipped cou-
pons. The statement was made that
the Smith Center officials could pay
or refund these bonds. and this state
ment was made on the authority of
persons in a position to know. and also
on the statement that Smith Center
intended to do this very thing. 1t
was disputed and Attorney General
Coleman was quoted as saying it could
not be done. Mr.. Coleman says, how
ever, that he was enormously quoted,
The fact is that city bonds belong
ing to the state school fund are fire.
quentIy paid before they become due.
Here are a few instances:
The city of Hutchinson issued bonds
aggregating $50, 900, due in 1917. On
March 81, 1901, the entire issue was
paid.
The city of Winfield has out a bond
issue due in 1918. Thus far it has
paid $4,000 of them.
The city of Jetmore owes a batch
of bonds due in 1916. 1t has paid
three of them.
The city of Nickerson has a late is
sue due in 1917. 1t paid some of
them on February IL, 1904, under the
present administration.
The city of Salina issued $32, 900 in
bonds due in 1913. It paid $4,000 of
them on July 90, 1903, under the pres
ent administration.
The city of Wellington has out a
$3e, 900 bond issue, due in 1919. 1t
has paid at various times $500. The
last bonds were taken up July 8, 1903.
These are only few instances
where this has been done. 1t is un-
derstood that since the Smith Center
bond deal has been aired the idea of
refunding them has been given up. =
There is no law specifically
stating that city bonds can be paid
before they are due, although it is
stated that nearly all other classes of
bonds can be thus paid when held
by the state school fund. Whether
this is legal seems to be a matter in
voIving the construction of the law
The law is as follows:
IF at any time any board of edu-
cation, chool district, township or
county shall have accumulated in the
treasury sinking fund sufficient to pay
in full any bond or bonds issued by
such board of education, school dis
trict. township or county before the
maturity. the state permanent school
fund, state normal school fund, or the
university permanent school fund, or
agricultural college endowment fund,
being the holders thereof, such board