The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-01-25
TO LOCK THE DOOR
Senate Would Put End to School
Fund Grating.
Provides for Check on Action Of
Commission.
MUST KEEP A RECORD.
Can Be No Clipping Of Coupons
by Brokers.
Bill Is Passed Without a Dis
senting Vote.
UST KEEP A RECORD.

N@o1CA4NAAA5 fOlCs passed lne Dill, intro
duced by Senator F. Dumont Smith.
which it is supposed viii stop grating
with the state permanent school fund.
The bill requires that a full and cor
rect account of all proceedings of the
board be kept and be open to examina-
tion. The measure provides that the
school fund commissioners shall pay no
more than par for bonds It REQUIRES
all Kansas municipalities to first ofrer
their bonds to the school fund commits
sioners. It also provides that the as
sessed valuation of counties be taken
GERS.
The bill so restricts and directs the
school fund commissioners that there
can be no scandalous Comanche county
deals. That is If the law is obeyed.
The bill provides, in part. that:
said commissioners shall keep in a
suitable book a full and correct record
of all their proceedings at every ses-
sion OF the board. which shall include
all of the matters required to be re-
corded as hereinafter specified in this
act, and which record, at the close of
each session, shall be signed by the
president and secretary.
They shall also keep such other
books as may be necessary to properly
register and describe all bonds offered
to them, or all bonds bought by them
for the benefit of the permanent school,
state agricultural, state normal and
record books shall be ruled so as to en-
able the board to register the name and
residence of the person offering to sell
any such bond or bonds, the price at
which bonds were offered, the name and
residence or location of the owner or
municipal corporation for whom such
offer is made, and a full detailed de-
Scrtption of every bond so offered, in
Guiding the date, number, series,
amount and rate Of interest of each
bond and when the interest and princi-
pal, respectively, are payable; and the
date, amount and number Of each eou-
pom, and when payable.
said board Of commissioners shall
have the power and it is hereby made
their duty, from time to time to invest
any moneys belonging to the permanent
school fund, State Agricultural college,
State Normal and State university
funds in the bonds of the United States,
or bonds of the state Of Kansas. or
bonds of any municipality Of the state
of Kansas. In making such investment
they shall not pay for any such bonds
any greater sum than par; and when
ever any municipality Of the state OF
Kansas shall offer its bonds for sale,
the state school fund commissioners
shall have the power to bid thereon the
same as individuals, such bids to be
made subject to the approval Of such
bonds by the attorney general; proVid-
ed, that the commissioners shall not in
vest in any other bonds which, together
with the other outstanding indebted
ness, shall exceed fifteen per cent OF
the assessed valuation Of said munich
pality as returned and fixed by such
municipality
amendment that in providing for the
investment of the funds by the school
fund commission in government, state
and other bonds the words except
city Improvement bonds be stricken
out which would allow the commits
sion to invest in city improvement
bonds.
fsThe object of this amendment"
said Senator Waggener, "is to enable
the commission to buy city improve
ment bonds. Such bonds are lien
upon the property improved and they
are selling at a premium and are the
best sort of an investment. They
are far better than bonds OF
western counties, especially COmanche
county"
ssThe city is pledged for the pay
ment of these Improvement bonds,
said Senator Getty, from Kansas City.
Senator Waggener's amendment was
adopted by unanimous vote.
Senator Young wished to amend
the bill to read that the school fund
commission shall not pay greater
shall first offer the bonds to the
school fund.
s'This is one of the most important
measures to come before us at this
session." said Senator Young. 1--WE
are bound by our oaths to protect the
sacred state permanent school fund.
1nere Is $1ZUsUOV OIL Ine ScnOOi IunQ
now not invested. Every cent of this
fund should be properly invested as
it brings in interest funds to the
schools. If these bonds are to be bid
upon some one else will offer q
quarter of a cent more and then the
commission will have to chase after
the bonds" Senator Young wished to
strike out the clause allowing for the
payment of a premium for bonds.
Senator Getty thought that If cities
can secure premium for their bonds
that they should do so and not sell
to the school fund for par.
Since prosperity struck Kansas the
municipal bonds of the state have
commanded a premium" said Senator
Smith, from Edwards. 1.-The result is
that under the present law prohibit
ing the paying of more than par the
pernicious custom of clipping coupons
been augmented, and this bill would
stop that, and the bill provides that
a proper record shall be made of the
premium paid. If any Kansas muni-
cipal bonds can be bought by the
school fund commission then the
bonds from all parts of the state go
into a hodgepodge and the bonds of
the eastern part Of the state would
be worth only the same as the bonds
from the thinly settled counties of
western Kansas
1.-The trouble has been in the past
that the good bonds were sold to
brokers' said Senator Noftzger land
the school fund got the poor bonds.
The trouble has been that the brokers
were acquainted with the officers of
the municipalities and got the good
acquainted with the school fund