The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-07
SUE A. 4. GODDARD
Kelly & Kelly Revive Comanche
County Bond Deal.
Will Ask for the Profit on the
Transaction.
BIG SUM IS INVOLVED.
About $4,000 Is to Be Named in
the Suit.
Bond Brokers Claim That They
We're Betrayed.

Suit will be commenced in the ShaW-
nee county district court sometime this
week against A. A. GODDARD by the
bond brokerage firm of Kelly & Kelly
of Topeka, to recover the sum of about
$4,000 which it is claimed GODDARD re-
ceived as profits on the celebrated Co
manche county bond deal.
Ever since the trial of the libel suit
of c. G. Coleman against the state
Journal brought to light the testimony
of A. A. GODDARD concerning this Co
manche county transaction, H. 3. Kelly,
OF the firm of Kelly & Kelly mas Deen
collecting evidence and documents al
the state house preparatory to begin
ming the suit. He has now placed the
case in the hands of Quinton & Quinton
and Waters & Waters, and these at
torneys are drawing the papers.
We expect to have the papers ready
to file by the 10th of the month"; said
A. B. Quinton today. 4 am unable 10
say the exact amount which will be
claimed in the suit, as I have not I'M
ished looking over the papers which
have been placed in my hands but l
can say that the amount will be eight
OF ten thousand dollars. The suit viii
be filed as soon as we can get the pa
pers ready
to bring suit against Mr.. GODDARD to re-
cover the amount which he claims to
have made in profits on that fransac-
ton. What that amount IS Wln be de-
termined by my attorneys he Sc
cured the information which enabled
him to make the deal through our
firm, and we believe that We have
good case against him.
Nj. GODDARD received a, commission
of $4,000 for refunding the bonds, and
in addition he made IS 900 by buying
the bonds below par and selling them
at par. Thus the Indications are that
his gross profits on the deal we're Sill
600, but he admitted that ont Of this
he paid $500 to County Attorney
Rich of Gomanche county 10 secure
his help in ..sWingfng the deal.
As developed by the evidence in the
Coleman libel suit, the S123. 900 of Co
manche county bonds We're controlled by
parties living at Des Moines. The own
ers OF the bonds. however. kept in the
dark.and did all their negotiating through
an agent. This agent wrote to Kelly &
Kelly to find a purchaser for the s123,Oe0
of s per cent Comanche county bonds.
Kelly tried to do so. He offered the
6 per cent bonds to the state school fund
commissioners, and the school fund
commissioners took no action upon the
proposition. A. A GODDARD about this
time told H. 3. Kelly that he might be
able to help in making sales Of bonds
to The state school fund. and Kelly told
GODDARD about the Comanche county
deal, and authorized GODDARD to assist
him In making sale
Instead of doing this, however 1t is
claimed that GODDARD went direct to
the agent who controlled the bonds
and secured an option on them. thus
freezing out" the Kelly firm. GODDARD
then proceeded to negotiate with the
commissioners of Comancne county
and through the assistance of the
county attorney. persuaded the coun-
ty commissioners to pay him COM
mission of $4,000 to refund the per
NV
then bought up the $123. 600 worth of
bonds, paying a lump sum of $780,
GOO for them. The money to swing
this deal GODDARD got from the state
treasury. Meantime GODDARD had per-
suaded the state board of equalization
to raise the assessed valuation of
Comanche county, and the attorney
general ruled that under the valuation
fixed by the board, the school fund
com naissioners could buy the
Comanche county bonds. Except for
this big increase in valuation, the
school fund commissioners could not
have purchased the Comanche county
bonds. GODDARD sold the 4 X per cent
bonds to the school fund commission
ers. even after they had failed to buy
the same bonds bearing S per cent.
In this way, GODDARD took the rich
plum of profit out of the mouth of the
Kelly firm. after that firm had put him
next to the opportunities offered by
the Comanche county transaction. There
have been rumors that Kelly & Kelly
might try to make trouble for Mr.. God
ard bv charging him with unprofes-
sional conduct and trying to have him
disbarred. but it is not likely that this
plan win be followed now that 1t has
been decided to bring the civil action for
damages.
Mr.. GODDARD is not in Topeka today but
Is expected home tomorrow.