The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-22
II. B. Kelly Tells Of Sale of
Missouri Pacific Stock.
Says That the County Received
a Good Price.
BETTER THAN OTHERS
verage Selling Price Was
Much Less.
Claims That Commissioners
Didn't Exceed Authority.

To the Editor of the State Journal:
The recent purchase, evidently, by
the Missouri Pacific management of
aid branch line, construction COM
pany stock approximates 100000
out of a total of about $3,180,000
that was held by Kansas municipah-
ties on the first of May. OF the
amount purchased by the company,
about $2.42O.OOO or per cent was
paid for between May ist to June
18th at the net price of 20 per cent
of par value to the municipalities.
Between June 18th and July 18th,
$4,000 or about II per cent was
purchased at prices netting the
municipalities 25 per cent to 80 per
cent of par value. After July 18th
two blocks, the Rush county and the
Reno county stocks, aggregatlng
$231,O00 about per cent of the
54 per cent and so per cent re-
spectively of par value, thus closing
the purchase of stock by the investor
represented by Edward F. Jordan.
In addition to the foregoing, To-
cal banker purchased a block of $685.
900 about July 18th, that purchase
however, not having been representa-
tive of the market or price as II
would not likely have been mace save
for the opportunity for resell1ng to
the Jordan investor and this with
the $4,000 still held by municipal
tiles, makes the total of this stock
that was held in the state.
Stocks That Were Sold.
The larger blocks held by counties,
cities, and townships We're purchased
in May by Mr.. Jordan at 20 per cent
of par value, including the Saline
county stock of $139,00O; Rocks
county, 100000; Kingman county,
$4,000; cow deynt9 1oun sisocoo cO'O the
city of Fort Scott, $4,000: the city
of independence, $4,000; the city OF
yates Center, $4,000; the city OF
Council Grove, $4,000; the city t6 OF
larger blocks held by townships
The Shawnee county stock was
sought at the same time and price
and would have been, sold as the
commissioners were quite dlspoSea ffe ~
make a certainty of the unusual ot1er
for this old stock of a construction
Until attention was called to the
matter by Kelly & Kelly, not an
nccunant, of the court house knew of
tbe ownershiD or possession of a GER
tifcate of stock in any Missouri "a
cific branch line. With the PROPOSE
ton Of Kelly & Kelly for an option
contract for the Shawnee county
and with verbal understanding that
a contract should not operate TO pre-
Vent sale at 20 per cent If we could
do no better, the commissioners mace
contarct as did a number OF other
municipalities in which the county
was to receive 20 per cent OF par, ana
we nothing if no more could pc oD-
tanned. and in addition thereto, the
county to receive one-half OF any sum
at which the stock might be solo
above 20 per cent, the closing clause
of the contract reading:
..The board of commissioners shall
cause certificate for said stock to De en-
dorsed in blank, and together with
COW of this contract deposited in ie
Bank of Topeka, subject to order or
said Kelly & Kelly, to be delivered by
said bank to the order of Kelly & keiiy,
when they shall pay or cause to &c
paid the full amount accruing to salu
shawnee county from sale of said STOCK
as per terms of this contract.
Had No Competition.
In making contracts with the mum Il
palities, we were not confronted with
competition from other brokers or
banks resident or nonresident, tie
competition of cash offer by MI.
Jordan of 20 per cent of par value, alorle
standing in our way. By making this
contract in May with Kelly & Kelly,
the commissioners secured ST. 500 more to
the county than would have been Sc
cured had Kelly & Kelly not made their