The Topeka state journal., 1905-06-30
School Fund Commissioners
Won't Buy Refinery Bonds.
Member Says the Interest Rate
Is Too Low.
TO LOOK ELSEWHERE.
Governor Expected to Sell Them
to the State.
Board Meets Today and Buys
Some Bonds.

Though nothing official has been
given out, it can be stated on good
authority that the state school fund
commissioners will refuse to buy the
$4,000 in state oil refinery bonds,
even if the supreme court decides that
hte issue is valid
One of the members of the board
of school fund commissioners said to-
day: mo, the school fund commits
sioners don't want the refinery bonds.
We can buy bonds which afford US a
better investment. The oil refinery
ponds pay only per cent. Take the
average of our ithvestments of the
school fund, and the interest is about
y per cent. OF course when we get
chance to buy first class county
bond at 4 per cent. we do So but
there are great many school dis
trict bonds and township bonds which
are perfectly good, and which pay
better interest than this big block of
oil refinery bonds. We don't care to
per cent. bonds. because it will
shut off ca the purchase of more
profitable bonds
''The commissioners propose to go
ahead and invest the money which is
on hand as rapidly as possible. We
have been obliged to allow a large sum
to accumulate because our books have
not been ready to proceed under the
new law. The books are now open,
and there may be some extra meet
ings of the board to consider the offers
OF bonds which are on file"
This Will reopen the whole question
of the disposition of the refinery bonds.
At first Governor Hoch refused to sell
the bonds to the school fund, because
he wanted to give the people of the
state a chance to buy them. When bids
were received, it was found that none
but banks and bond buying companies
a TGd RI
panies all made il conditional that the
bonds should be given the O. K. of
the supreme court. When this state of
affairs developed, Governor Hoch con-
cluded that the best plan would be, af-
ter all. TO turn the bonds into the
school fund. and let the state pay it
self the interest
Meantime the whole question of the
validity of the bonds became involved
IN the legal proceedings which are now
pending. It is expected that the case
will be decided on July 8.
First Meeting Today.
Today the first meeting of the state
schoOlfund commissioners under the new
school fund law was held at the office
of State Superintendent Dayhoff. At
torney General Coleman, Secretary of
State BurroW and Superintendent Day
hOm were all present. A total of $40 900
worth Of bonds was purchased.
The new records showed that about 30
different tenders OF bonds have already
been made to the board. Under the law,
every municipal, county, township or
school bond must be offered to the school
fund before being disposed of elsewhere
The board voted to purchase $25, 900
worth of Douglas county 4 per cent
bonds and $35, 900 worth of Rice county
4 per cent bonds.
An issue of $4,000 worth of refunding
bonds from Linn county was also taken
up. OF this amount 5000 was repre-
sented by old bonds in the school fund
Regular meetings of the commission
ers are held only once a month but
owing to the fact that there is such
large sum of money lying idle in the
school fund, it is expected that more fre-
quent meetings viii be hss'P. The COM
TnissiOners will be very liberal buyers of
bonds. according to the present plans,
until the 100000 on hand is put into in
terest bearing securities.
The new records which have been
provided under the law passed by the
three books; one for recording the
bonds issued one to give a complete
description of the bonds purchased,
and one to give the minutes of each
meeting of the board
The records set forth the name and
residence of the person offering to sell
the bonds, the price at which the
bonds are offered, the name of the mu-
nicipal corporation for which the offer
| is made, a full description of the bond,
a. full description of what has been
done with any missing coupons. and
the opinion of the attorney general as
to their validity The new books con-
| tain spaces ruled for the insertion of
all this information and the law says
taht the books are omen to the inspec-
ton of the public during business
hours.