The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-22
Says His Action in Matter Was
Straightforward.
HIS DEAL WITH KELLY
Claims He Acted HOnorably
With Broker.
Administering Board to Increase
County Valuation.

exposed by the State Journal Saturday,
has written a statement attempting to
Justify the deal It is as follows:
Last evenings Journal contains a
piece of fiction regarding a bond deal
that is monumental in it's infamy.
The history of the entire transaction
Is this: Some time last winter Mr.. H.
B. Kelley wrote me a letter asking me
If 1 would assist him in selling Conan
che county bonds TO the amount of
$4,000 to the state. The proposition
involved the clipping of coupons. 1
spoke to a member of the school fund
commission about the bonus and was
told that they did not care to purchase
the bonds with coupons detached as
they had been criticised for so doing
Il told Mr.. Kelley over the telephone
that I had failed to sell the bonds
Some time later. 1 do not recall the
time, but il must have been about two
months thereafter I concluded that If
Mr.. Kelley had not sold the bonds,
could handle the transaction so as to
avoid the necessity of clipping coupons.
j then started out to find who held the
original bonds 1 asked the state treas
urer to ascertain from the fiscal agency
in New York who collected the interest
on them He reported that he could
not get the information and 1 then OBJ
tanned il from another source.
Il then entered into negotiations with
the owner of the bonds and secured an
option on them The next step was to
make a contract with the county for re-
funding them, which I did. When the
state board of equalization met went
before them and asked them to make
the equalization ofComanche county as
high as it had been previously made.
saying TO them that 1 was interested
in the bonds of the county At that
time not a single member of the board
knew anything about the transactions
] had with reference to these bonds.
The board made the assessed valua-
ton of the county about $1,000 higher
than it was last year, though the in
crease of wealth is much greater than |
that Subsequently 1 offered the new
bonds to the school fund commission, |
giving them a full and correct state |
ment Of the financial condition of the |
county, and stating to them that 1 be- |
lieved this to be the last time the state |
will ever have an opportunity of pur-
chasing a large block of good county |
bonds bearing as high rate of interest |
as four and one-half per cent. 1 con-
WINGED them that the bonds were a |
desirable purchase but was told that |
letters had been written to the mem |
bers of the board Offering them the old |
six per cent bonds at par, and they said |
it would not look well for them to buy |
AZ per cent bonds when they had been |
offered the same at 6 per cent. 1 in |
ouired when the offer was made and |
they said just a few weeks previously.
I satisfied them that 1 had neld a con- |
tract for the original bonds for more \
They then stated to me that the offers |
were made after I had the original |
bonds purchased and decided that they |
could not have been made in good faith. |
They then decided after considera BILE I
delay to purchase the bonds.
knowing that the auditor of state /
sometimes exercised an independent |
judgment about the registration of l
bonds, 1 went to Mr.. Wells and talked |
the matter over with him, saying that !
l was clear in my opinion that the /
right to buy and he said that if the /
school fund commission bought the /
bonds he would register them.
Il did not at any time meet with any |
state officers in the auditors office or /
anywhere else over this matter, and |
there was no occasion why anyone /
should have been closed there, no one |
laid down on Mr.. Wells to have the reg
istering done. The transaction was an /
open and straight one from beginning
TO end
"Comanche county has been reducing
its Indebtedness for a long period of
years until its bonds are as safe as any,
The owner of the old bonds told me he I
had been offered par and accrued in
terest for them before he sold to me-
The county has. by moneys raised
from taxation, paid more than $4,000 |
of its bonded debt in the past four
years. Its interest charges are 50 500
per annum less than they were a few
years ago. The taxes are promptly
paid and its officials are clean and
capable. Inc state OF Kansas mas Sc
cured a choice investment. and its Off
GERS should be commended for what !
they have done.
THE whole transaction was clean
and straight from beginning to end
The published story seems to result
from conspiracy started for political
purposes.
with the falsehoods taken out of the
story. the remainder is entirely credit
able to the officers concerned
"A. a. GODDARD"
The State Journal is able to agree
with Mr.. GODDARD in a number of in
stances: For instance. in his first para
graph he refers to the bond deal as
monumental in its infamy." That IS
exactly what the State Journal believes
about 1t. 1t is so infamous that the
there is any law on the statute books
by which they can be reached Mr.. God
ard may not have intended to say just
this, but he said it.
Concerning some other matters Mr..
GODDARD attempts to cover up the truth
In an exceedingly adroit manner. He
would have people believe that H. B.
kelley'S option on the bonds had expir-
ed and that he had himself secured an
option before Mr.. Kelley offered the
bonds to the school fund commission to
net the state per cent. Yet Mr.. KEEL
ley says that as soon as State Treasur-
er Kelly Informed him that Mr.. GODDARD
was trying to find who was the owner
of the bonds, he made his offer 60 the
board, and that it was before Mr.. God
ard had even located the bonds. That
is a question between Mr. GODDARD and
H. B. Kelley which future developments
will have to prove.
Mr.. GODDARD openly confesses that he
went to the members of the state board
of equalization and asked them to raise
the assessment Of Comanche county as
high as it was the year before, because
he was interested in the county's bonds.
This was an excellent reason from a
standpoint of graft, but how about the |
taxpayer? And the board seems to
have followed MIR. Godard'S wishes,