The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-08-02
Mr.. O'NEIL EXPLAINS.
County Commissioner Says Bond Deal
Was Open and Above Board.

/ 10 the Editor of the State Journal:
| The complete history of the sale and
| dlsposal of the Kansas Colorado & Pa
| cif1c railroad stock certified by tlE
| BOARD of COUNT commissioners is d
! long one. I shall not attempt to recit-
1t all for the local papers have given
| much publicity to the entire transact
ton. including the preliminary over
| lures to the board from an unknown
| agent up to the announcement OF sale
| by Kelley & Kelley.
L desire to assert alphabetically On
J the outset that there has not been a
suggestion of wrong. fraud, deception
or crookedness on the part of any
member of the board. the bank of To-
peka, Kelley & Kelley. or any one else
connected with the deal, Mr.. J. NJ. Fer
guson to the contrary notwithstanding,
The board frankly admits that it was
at fault in not consulting the county
attorney. But their mistake was an
oversight, due largely to a desire to OBJ
tain for the taxpayers of the county
what seemed to the board velvet or q
find from practically worthless stock
rather than disposition to overlook
the county attorney. or premeditated
neglect to conform to the requirements
of the law.
1t is proper to state that it has been
the policy Of the present board to con-
suit it's legal adviser, Mr.. Schenck,
about all matters pertaining to the
powers and duties of the board. No
member of the board presumes to adj
wise the DOdTd OF TO uSuIp lI1G dul4So
of the county attorney for we realize
we have a lawyer whose advice Is
worth something. The Hon I. d
Humphrey has rushed into pr int with
some advice to the board but you VIII !
remember that Mr. Humphrey was not
quite elected county attorney last fall. |
Mr.. Ferguson in "a published COM |
munication quotes a section of the gen |
eral law prescribing the duties and
powers of county boards. But you viii
note that the legislature has enacted !
few laws since the passage of the gen. |
eral law and it was under one of these |
laws enacted in 1901, chapter 28I,
amendatory of section 1920, general
laws of 1875, that Kelley & Kelley were
proposing to negotiate for sale of this |
stock along with similar stock owned
by thirty or forty other counties, town.
ships and municipalities.
Kelley & Kelley having authority -
act for many, and representing -
many thousands of shares of such
stock, manifestly were in position to
demand more from those seeking 70
buy up the stock, for their clients, than
counties acting individually or bond
brokers representing only a few shares.
Mr.. Ferguson never appeared before
the board to negotiate for sale of the
stock He never discussed it with
either Mr.. Simms or Mr.. Sinner. He,
however, did call at my office upon
several occasions, and always told
him that there was nothing TO bar any
bond broker in town from dickering for
the sale of this stock, but that Kelley &
Kelley were authorized to act as agents
for Shawnee county.
One other bond broker. upon my
personal request, wrote and wired to
New York parties concerning this
stock but to no purpose Invariably
replies brought the advice that thu
stock had oOen market value. l ais
told Mr.. Ferguson if he had been to
some expense corresponding by letter
Or wire with George Gould. Hartman,
Hill, Morgan or any other financial as
sociate. and had valid claim against
the COUNT to present his bill in the
regular way, and it would be. acted
upon. Mr.. Ferguson does such terrible
violence to the truth and the facts per-
aiming to this transaction in his pub
ished statement that 1 shall dismiss
t with one further statement in fair
ness to him, and to s'-~--- that l was
disposed to give him an opportunity 10
act for the county.
When the Kelley & Kelley agreement
vas presented to the board for their
signature, I reminded the other mem
0ers that Mr.. Ferguson had been to
see me on several occasions, and to my I
PERSONAL knowledge was in correspond | {
.nce with eastern parties and that he ]
ought to be given chance. One mem
Der of the board remarked that he did I
Tot know Mr. Ferguson and tat he I
lad never been before the board with
my sort of proposition. while the other
made the serious objection that he had
lad some private business dealings
With Mr.. Ferguson and they were not {
# such a nature as to give him con- {
idence in that gentleman's integrity. J
10 1 am constrained to believe that I'M I
Ter no consideration would the board f
inter into any kind of agreement by S
which Mr.. Ferguson could represent
shawnee county.
1 repeat there is nothing in this I
transaction which can be made to re- f
lect on any one having to do with it.
md I honestly believe the way it was i
handled by Kelley & Kelley has put t
Z, 500 into the county treasury. which t
would not have been there had the !
,oard hastily accepted the original Of S
er of 500 per share. S
And 1 believe further. if the board f