The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-05-15
PAY up THE BONDS
County Commissioners Ready
With Big Sum.
All But Six Thousand of Rock
Island Issue.
DATES FROM YEAR1ss7
Total Amount Is One Hundred
Twenty-Five Thousand.
Likely That County Has Paid
Too Much Money.


Plans are being formed by the
county commissioners to pay off
$4,000 Of the bond issue of $125,000
" years ago to aid in the construc-
ton of what isa now the Chicago,
Rock Island & Pacific Railway COM
pany's line through Shawnee county.
m1ssioners was held today for the
formulation of these plans.
rms bond issue natures on June
OF this year. it having been made in
1887. The name of the company
which built this line that is now a
part of the Rock Island system was
the Chicago, Kansas & Nebraska
isse of s1 GSom pa o of the original
been paid off by the county commits
sioners.
a,I In the regular bond fund at the
there is now $4,000 to meet the
bonds which will be due in fifteen
days. BY the first of the year there
VIII De more than enough money in
the bond fund to meet the entire issue
outstanding. Including the amount of
the present bond fund. there is now in
the the county treasury $211,0OO dis
lrlnuted among variety of funds.
1t mas occurred to the county COM
Inissioners that it would be a good
| business proposition to take enough
money from these other funds to meet
the redemption of the bonds in their
entirety when they come due on June
| L with cash. They will have to be
! met in some way on their redemption
date and if the cash in the other funds
is not taken the bonds will have to be
refunded for short period. OF
course there will be no trouble in re-
funding these bonds if it is necessary.
The credit of Shawnee county, thanks
TO the efforts of the present county
commissioners, is way above par and
any bank in the state or any place else
would be willing to advance the
money needed on refund bonds
But the cost Of getting out refund
bond issue would be considerable even
| though it was for a short term as it
would be because of the fact that the
county will have enough money in its
BOND fund on January 1 to meet any
refund issue that 1t might make. Dur
ing June 1 and January 1 the county
would have to pay considerable interest
on this refund issue and all this ex-
pense could be avoided if other funds
could be used temporarily to- redeem
the bonds when they came due on June
The county commissioners think that
1t would be9a feasible for the
county treasurer to take such
funds as are needed from the
bond; fund to meet the entire issue and
hold the bonds on his books for the few
months needed as cash untib the cash
for the bond fund.
J. j. Schenck, the county attorney.
conferred with the county commission
ers this morning on whether or not IT
would, be possible under the law to
transfer money from some of the funds
other than the bond fund to meet the
situation. Mr.. Schenck gave an offhand
opinion that it could be done properlv
and within the law and that the com
mon business sense of the proposition
was apparent to anyone He win look
the matter up and render a written
opinion on it. 1t is likely that it will be
favorable and then the county commits
sioners will take the necessary steps to
redeem the entire remaining issue of
$4,000 bonds when they come due on
June 1.
In taking this money from the other
funds for few months the operation
of the affairs of the county will not be
hindered in any way, as there will be
plenty of money left in all of the funds
to meet any situations that may de-
velop.
Looking over the various records in
connection with this bonds issue the
county commissioners have discovered
that the county has paid about $4,000
of principal and interest on a portion
of these bonds which 1t ought not have
been compelled to do. The bonds were
issued under a law which was in eff
feet at that time which permitted coun-
ties to give aid to the extent of $4,000 |
a mile for the construction of rail-
roads. The Chicago, Kansas & Ne
braska road certified that it had con-
structed BIZ miles of railroads in the
county and the county came to its aid
on basis of $4,000 mile with a bond
issue of $125,000. Shortly after these
bonds were issued they were refunded
by the railroad company on a basis of
bearing interest of 51a per cent which |
the county has been paying to the |
holders of them ever since.
1t has developed that for the pur- |
poses of taxation the railroad company |
has never returned for assessment more |
than 266s miles of railroad in this coun- |
ty, and the county commissioners right |
~ presume that this is all the railroad |
line of the company in the county |
Therefore the county issued about $1S.- |
900 bonds for AIS miles of roads which |
do not exist or at least on which the |
railroad company has never made any
returns for the purposes of taxation. |
The interest paid on this sum has
amounted to about $4,000 and with the |
principal which will be redeemed the |
total sum that the county has been
to pay improperly amounts
to about $4,000.
Mr. Bennett Seeks Divorce.