The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-27
CHANGES HIS Mind
Governor HOch AbandOns Re-
fnery Bond Plans.
Would Not Sell Them to Highest
Bidder.
INTO SCHOOL FUND.
Satisfied That Would Be the
Best Disposition.
Sorry That the Work Can Not
Go On.
NTO SCHOOL FUND.

Governor Hoch has changed his views
about the method Of disposing Of the
zEate oil refinery bond issue of $2l0,00O
&c no longer favors the plan of selling
&he bonds to the highest bidders ar
nhblic sale He said today;
Il have no official connection with
&hfs bond sale. but I win say this: If
the supreme court holds that the bonds
are good it would be my advice that
the state simply arrange to turn them
ever to the state school fund.- and not
solicit bids from outsiders.
The attempt which was mace 70 sIES
the public a chance to buy these bonds
was a disappointment, because all the
BIDS which were received were from
Banking Institutions They were an
conditioned upon the opinion OF the
courts that the bonds are valid, and it
ezas this situation which brought the
matter into the supreme court
II am very sorry that this refinery
proposition is tied up in this Way-Very
CORY. voa1Id like very much TO nave
things in such shape that we could 60
TfFhf ahead with the refinery, build the
plant, and do business. But as things
are now, suppose we viii nave TO wait
Cor the action of the supreme court.
sIf the court holds that the bonds are
good, and that the refinery can be bullt
bp the state then there Will be no
doubt that the bonds would be hrst-
class security to put into the school
fund That point will be gained by
decision from the court.
ssOf course by turning the bonds over
90 the state school fund, the refinery
proposition would sacrifice some money
Tor all the bids which were received on
the bonds before offered substantial
premium. What the oil refinery would
lose by the transaction the school fund
would gain by coming into possession
OF such gilt edged securities. am
a ~
place these bonds right in the hands
Of the people of the state, and thus give
them a tangible interest IN the refinery
proposition
When the matter of placing the state
refinery bonds in the permanent school
fund was first discussed some of the
board of school fund commissioners
were quoted as saying that such thing
would be impracticable, because the
school fund did not have enough money
on hand to swing the deal. At the pres
eut time such d condition does not pre-
vail There is in the uninvested funds
OF the schol fund commissioners the
SUM of 1928, 600 which is sufficient to
take up all of the refinery bonds and
still leave a balance OF $4,000 IN the
treasury. OF course it viii be possible
for the school fund commissioners to get
rid of a good deal of this $225.O0O be
tween now and the time the refinery
bond muddIe is Strengthened out, but II
advice of Governor Hoch, they will see
to it that they are prepared to take
over the refinery bond issue when the
time comes
IL is left entirely to the state treas
urer and warden of the penitenuary to
decide what disposition shall be made
Of the bonds They can do with them
as they please, just so they get $4,000
out of them, and turn the money into
the treasury. The law says;
ct of a
state treasurer and warden of the state
uenitentiary. is hereby authorized to is
sue and sell the bonds of said state in
denominations of $1,000 each, payable in
ten years from date, and optional with
the state of KaKnsas to pay the same
cit the end of five years from date, with
interest at rate not exceeding four
per cent per annum, payable seni-an-
nually."
When the state treasurer and the
warden were discussing the best means
for disposing of the big bond issue, Gov
ernor Hoch thought that it would be
possible to offer the bonds for bids, and
secure from q large number of individ-
ua1 capitalists throughout the state bids
on small lots of bonds. His idea was
that it was a good chance for a man
with a thousand dollars to invest to
pat it where it ould be safe. And this
method, according to the governors
plan. would have given a good many
people throughout the state a personal
Interest in the refinery proposition. But
when the bids were opened, there was
not a single proposition from small in
vestOrs. Bonds of the denomination of
$1,000 seemed too big for them to han
die. The bids, with one exception, were
All based on the entire issue of $21O, 00O