The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-06-28
School Fund Commissioners
Strike a Snag Today.
Assistant Auditor Nation Stops
Purchase of Bonds.
is OVER THE LIMIT
Mr.. Nation Says Dodge City In
debtedness Is Too Large.
Mr.. Dayhoff Intercedes But to
No Purpose.

The state school fund commission to-
day purchased-at least, tried to-a
SAT 600 bond issue of Dodge City which
has been on the market for some time,
but when the bonds went to the state
auditors Office for registration, Assist
ant Auditor Nation ordered them held
up.
On the face of the records in the au-
itor's office the school fund commission
could not legally purchase the bonds
because the total Indebtedness of
Dodge City exceeds Is per cent of the
assessed valuation, and Mr.. Nation was
from Missouri-he had to be shown by
what course of reasoning the commits
sion made the purchase.
The deal was negotiated by D. q.
Dunn, a Wichita bond broker He is
accompanied here by Judge E. H. Mad
ison. When Mr.. Nation refused to reg
lister the bonds superintendent Day
hoff, who was looking after getting the
registration made, sent after Dunn and
Judge Madison to explain the matter
to the assistant auditor. Mr.. DayhoH
seemed to think it was all right.
On the face of the records in the state
auditors office, the bonded Indebtedness
of Dodge City is $4,000, and there is
also $4,000 of outstanding city war
rants. Up to last winter the school
fund commission was prohibited from
if the total Indebtedness of the munic-
ipaIity exceeded ten per cent OF the
total assessed valuation The last leg
islature raised this limit to fifteen per
cent. The total valuation of Dodge
CITY for 1903 was 5000, 025 Fifteen per
cent of that amount would be $46,353-t9 ..
According to the present law even, IL
the total Indebtedness exceeds that ng-
ure the school fund commission could
not buy any bonds of that municipality.
According to the records in the audi
tors office the bonded Indebtedness
alone is S57 GOO, and there is $4,000 ad-
ditional in floating debt
That is why Mr.. Nation refused to
register the bonds in the school fund
That is why the records are kept IN
the auditors office
It was explained to him that TINS
year the valuation has increased TO
S377.00O, and it was also stated that
the $4,000 of outstanding warrants is
a mistake and should be crossed Off
A certificate to this effect was pre-
sented to Mr.. Nation. He said, how
ever. that the county commissioners
might make some change in the valu-
alton, and that the auditors office had
to go by the certificates of the county
clerk. He said if a certificate should
be presented from the county clerk
showing that the bonds could be
legally purchased by the school fund
commission he would withdraw his
objection to them. All he wanted was
and the records in the auditors office.
The bonds are refunding bonds is
sued in 1902, due in 1882, and they
draw per cent. interest. They were
offered to the school fund commission
under the last administration but We're
turned down because they could not
be legally purchased. In addition to
these the city owes $4,000 of sewer
cent. interest, and $4,000 of refunding
bonds, due in 1901, and bearing per
cent. interest.
Just who owns the bonds is not
known.
''They are held by wichita parties, "
said Mr.. Dunn in reply to a question
by a State Journal reporter, but fur
Their than that he did not say.
What is the total assessed valuation of
Dodge City this year," he was asked
Nearly $4oo o 90 he replied oo Some
What about those $4,000 outstanding
city warrants2"
is my understanding that they have been
paid but they have been carried on the
county clerks records for several years,
but really ought not to be there"
In order to allow the school fund COM
mission to legally purchase the bonds the
assessed valuation of Dodge City will
! have to be at least sSSO,0O0 If it is. only
1877. coo, according to the certificate shown
through, even though it is shown that
those $4,000 of the city warrants should
notwithstanding this the state superin-
tendents office went ahead and issued
the warrant for the payment of the bonds
this morning before they were registered.
It has to be countersigned, however, by
the state treasurer. and it was held in
the treasurer's office until the auditor S
office receipted for the bonds.
In addition to the Indebtedness of Dodge
City as "A municipality, Ford county has
a bonded Indebtedness of $1S9,900. a large
portion of which would, of course, fall on
Dodge City
The city loses nothing if the school fund
commission can not make the purchase.
as the bonds seem to be in the hands of
spectators. It is said that the bonds We're
offered at less than par to some bond bro
kers and the Wichita parties represented
by Mr.. Dunn evidently took them up with
the idea of making this years assessment
show enough property to allow the school
ion tn 10