The Beaumont enterprise. [volume] (Beaumont, Tex.) 1904-current, 1904-09-13

total OF sl52,4lb 81, at q result os lae
sale of The bonds 10 AZ, Floyd Sho, H.
A certified statsmelt by Hon, j, W
Stevens, comptroller Of state rela'
tive 10 the purchases OF JEFFERSON
county bonds. in my possession, snow .
that the said sl5O,OOO Jefferson eouh'
~ bonds were sold "a the state board
III education, for the permanent
school fund OF the state On the lstl
day Of June, 1902, for the sam ui I
Sl59,SlG5O. This leaves a net rrn'l
10 Mr., Floyd Shock and his aHsp'
ciales Of s7,3a9,97 out OF this trans,
action, which represents loss oi
said sum 10 Jefferson county Tor not
selling the bonds direct 10 the state
board OF education,
How did MIR, Floyd Shock get pos
session of these bonds 10 sell as his
own property al least two days be-
fore he paid Jefferson county dot
lar for said bonds
Why did County Judge Wheat per
init Mr.. Floyd Shock TO assume own
ership over said bonds ut least Nv"
days before the county received ANY
payment for said bonds. when the or
der Of the Commissioners Court spe'
officially stated that County Judge
Wheat be instructed 10 deliver said
bonds to Mr.. Floyd Shock upon the
payment of $ljl,O00,OO and the ac'
crued interest?
Should not County Judge Wheat
have made a ncilOrt 10 sell the bonds
direct to the state board of education
when II was at that time matter
- th.t nArmnnnnI school
fund of the state held SGO.OOO.OO worth
of jefferson county bonds which had
been purchased in various amounts
at different times directly from Jeil-
crsOn county?
If Mr.. Floyd Shock was the owner
of the bonds h. should have paid Tor
them upon receipt Of same. II ne
was acting as agent or broker, the
premium on said bonds Is the abSo'
lutte property of Jefferson county.
Follow me further and | will en-
dcayOr to make plain the history ol
the notorious $lOO,OOOOO six per cent
Jefferson County Road Bond tranSac-
ton.
On October 10. 1909, the commiss-
toner's court authorized the issuance
of $lO0.0OO.00 six per cent Jefferson
county road bonds. Reference BOOK
4. pages 63 and GA, commissioners
Minutes. This order further provided
that upon their approval by the attor-
ney general, that County Judge Wheat
take charge OF said bonds, negotiate
for their sale and receive Tor the
county the proceeds thereof. The re-
cords of the commissioners court are
absolutely silent as to whom the
county Judge sold said bonds, the
price paid for them or when they
were sold.
The county treasurer of Jefferson
county shows tina the county was
given credit on December list, 1903,
for 500. 900 90 and 10000 accrued in
terest for the sale of said bonds.
| have in my possession letter adj
dressed to me by the Hon. }. w.
Stephens. comptroller OF state. i'll
which he states: When the $780,
10000 six per cent bonds were regis
tered, November 14th. 1908, they were
delivered to Mr.. Floyd Shock upon an
order from County Judge.
"Mr. Shock spoke to some member
of the board on that date with refer
, cnca to the purchase of the bonds
! but at that time there was not SUI
fcient money on hand to consider
their purchase" and further stating
las far as | know there was no el-
fort made by other parties to neSotl-
ate the sale of said bonds to the
state board of education"
! On January 6. 1904. the state comp
troller's records show that said bonds
were sold by Floyd Shock to the state
board of education for the sum OF
$11S,47S.34. You will note by this
transaction that Mr.. Floyd Shock ana
associates cleared up the neat sum
of $l7,77S.34, making \ total loss 10
jefferson county on the two trahsac-
tiols of $25,17S.34.
| will ask you what relation does
Mr.. Floyd Shock hold to Jefferson
county that he should be entrusted
with its bonds. to negotiate their sale
in such manner so that he could car
nv out these transactions without IN
vcsting ole dollar in the enterprise.
No where on the records OF the
Commissioners Minutes does it show
that Mr.. Floyd Shock purchased the
$1OO. GOO six per cent bonds from the
county. Yet County Judge Wheat
authorized the attorney general to
deliver said bonds To this gentleman
on the l4th day of November, l9O3,
and the treasurers accounts OF Jen-
crson county show thar not untli
December /. 1909, was cent of SAID
money turned over to the county III
was an easy matter for these bonds
to be placed in any national bank as
collateral to raise SlOO.0OO.00 To turn
over Ia jefferson county, and wait un-
I'll such time as the permanent school
fund would have money with when
to purchase said bonds. II Floyd
Shock purchased said bonds from
jefferson county. he should have paid
the county the cash for them, NoNem-
Der lith. 1903. and further more, the
Commissioners Minutes of Jefferson
county should show 10 whom the
bonds were sold and the price paid
same. Il Floyd Shock was acting as
an agent or broker. the coudty should
hay, received all of the principal,
premium and accrued interest on
said bonds. and had il been neccssa-
~ 90 employ Mr.. Floyd Shock for
such a deal. TO have paid him a roas-
enable commission for his services.
n b. apparent thai through some
miSmaua.pmpnt and rank tayoritlsm
jefferson coulty has lost ON two al
it's bond transactions s2I.lIN.5A. and
thar this sum has gone into the
fr.Hru-FHHrH#- -ftHH Hf the