The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-08
MR.. RUSS BIU III.
Mayor of Wichita Brought State
Officers TO Time.
They Didn't Want TO Buy His
Bonds.
FOUND A FEW FACTS.
Then He Broke Bond Brokers'
Combination.
the Deal and Went Home
Happy.

mayor FIndIey ROSS, OF Wichita, who
was in Topeka Thursday, succeeded in
'persuading'' the state school fund com
missioners to buy S45, GOO worth of 4 per
cent refunding bonds from his town.
It has not been customary for the school
fund commissioners to buy per cent
bonds from anyone except c. z. Foote
or Kelly & Kelly, the Topeka bond
brokerage firms.
The board does not consider 4 per cent
bonds of much aecount-unless they are
offered by Kelly & Kelly or C. f. Foote.
It turns down many offers Of such
bonds because it is able to invest all of
the state money at AZ or 5 per cent, If
it desires to do SO. The reason assign
ed in such cases is that the rate of
interest is too low
When the city of Wichita came up
with its offer of $4,000 worth of refund
ing bonds at 4 per cent the members Of
the board of school fund commissioners
used the same old stOry-the rate of IN
terest was too low. They didn't want
Wichita bonds at per cent. They said
the bonds were all right, and everything
nice and regular, except the rate OF in
terest.
But Mayor Findlay Ross is something
of an investigator himself. He makes
a speciality Of saving money for his
"
ty He commenced TO do some digging.
He discovered that the board or scnool
fund commissioners had purchased $50
900 worth Of Rice county refundlng
bonds at 4 per cent-fIom Kelly & Kelly.
He called this fact to the attention OF
Messrs. Burrow, Coleman ana DaShoA'
members of the board.
He made note that the board had
purchased SIS, go worth OF Douglas
county refunding bonds at per cent,
from G. z. Foote. And he asked the
board how about that. -
recently invested in $4,000 worm OA
Norton county 4 per cent reIunolIlg 11s
bonds. offered by Kelly & Kelly. ne
mentioned this to the board.
It was also shown by Life fecofus
that the little togs1se of Holtons about
one-tenth the size of Wichita, had sold
the board, through Albert Sarbach, a
man of considerable political Inflsenee'
its issue of $4,000 school board pohds'
bearing 4 per cent. ,-.
Such instances as these were brought
to the attention of the state scnool
fund commissioners by Mayor t1nolay
Ross. the shrewd little chief executive
of wichita. Then he said to the board
in substance:
plenty of money lying idle, ready and
waiting for investment You admit
that my bonds are good, valid bonds.
Now if you can afford to buy RICE
county, Douglas county and Norton
county refunding bonds, and Aolton
school bonds, at 4 PEI cent, you can
certainly buy Wichita city bonds at
the same rate
The board of school fund commits
sioners hesitated, conferred, squlrmed
Il little and decided that it would be,
on the whole a good plan to buy the
Wichita bonds.
It would look a little as though the
Kansas City board of education might
have a kick coming. The school fund
commissioners rejected $4,000 worth
Of the Kansas City per cent bonds
because the frate was too low
The board also rejected $4,000
worth of Great Bend board of educa-
ton bonds because the rate was too
low''-and the rate on this issue was
4 per cent.
The state board of school fund COM
missioners seems to have placed itself
in a hole from which there is no es-
cape. It has bought the per cent
bonds offered by Kelly & Kelly and c.
Z. Foote: how can it decently refuse
to buy any other 1 per cent bonds
equally as good. offered direct by the
people who issue them? Is it neces-
sary that bonds should be offered to
the school fund commissioners through
some bond broker or influential poll
tician to make it an object to the
school fund commissioners to invest?
Cities and counties throughout the
state which have been so foolish as to
issue bonds at 4 y or per cent will no
doubt regret their action. The city of
Wichita, through Mayor Ross. has
showed the state how easy it is to ''per-
suade' the school fund commissioners
to buy per cent bonds And Incl
dentally, Mayor Ross has saved five or
ten thousand dollars to the cjtv Of
Wichita by his wonderful persuasive"
powers.