The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1904-10-20

agreement to remunerate him as
aforesaid. Mr.. Paul took the matter
up with the members of the state
commission, and, in the words Of the
complaint:
plaintiff succeeded in obtaining
such purchaser as employed to do, and
the city sold the entire issue Of said
bonds. to such purchaser at par, the
bonds bearing interest at three and
three-fourths per cent. per annum,
payable semi-annually, that in the
much and valuable time ana effort,
AND DID EXPEND CONSIDERABLE
SUMS OF MONEY in the payment of
the necessary hotel and travelling eX-
penses incurred while engaged In said
employment,
That without the services of this
plaintiff the defendant could not have
sold said bonds at par bearing a less
rate of interest than four per cent.
That the actual financial saving to
is $29.5O0. That the compound
interest upon the semi-annual pay
ments Of interest for the time the
bonds are to run will amount to at
least $4,000, and the total saving in
interest to the defendant by reason Of
plaintiffs said services is at least the
sum Of $47,500.''
a portion of the charges made by
Mr.. Paul are thoroughly borne out by
other officially recorded facts. The
state commission did make bid for
the bonds at par bearing 3A per cent,
and the same We're sold to them at that
price.
Later Mr.. Paul put in a claim to the
city for his commission of $500 for
the use of his Influence and money
with the state commission. But city
election was at hand and the MEM
bers of the council held the matter up
until after that event The question
of the justice of paying broker a fee
to influence state officials in their Of
fetal duty became an issue in the
campaign and two or three council
engagements were defeated. When the
new council came in no favorable ac-
ell. The claim was considered by the
new finance committee and the op1n-
ion of the corporation counsel on the
legality of the claim was asked.
The corporation counsel replied,
giving it as his opinion that the claim
was not a legal one, and not one which
the city was obligated to pay. The
matter thereupOn reposed in the hands
Of the committee while Mr.. Paul went
into the courts to compel the payment
of the claim
The Importance of the charge made
by Mr.. Paul against the state officials
can be appreciated when it is remem-
bered that the permanent school fund
now runs into millions of dollars, hav-
ing accumulated from the sale of lands
given the state for the purpose by the
national government, and from other
sources. Only the income on this fund
can be used, the principal forming a
permanent endowment for the public
school system of the state. Under the
laws of the state this fund can be
loaned only to the state, or to coun-
ties, cities and school districts in the
state The law contempates that coun-
ties, cities and school districts desir-
ing to borrow from the fund shall be
placed on an equal basis, and that the
officials handling the fund for the state
shall secure as good terms on the
loans made as are consistent with the
quality Of the security. To permit the
fund to be manipulated in any way,
so as to permit private brokers to col
lect brokerage for transactions con-
templatlng loans from the fund. is to
permit them to rifle the public school
income of the state for private pur-
poses.
Two other instances have come to
light in which the state commission
has acted strangely in the matter of
making bids for bonds One of these
was in reference to the water bonds of
Port Townsend, which the officials
of that city claim the state board Of
fered to purchase, but later neglected
to put in a bid, for what reason is not
explained. The other instance is in
reference to an issue of bonds bv the
Spokane school district where the
same thing occurred. Whether any Of
fers were made to the local authori-
ties by outside parties to secure ia
vorable action in those cases for a
commission, cannot be ascertained