The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-09-22

ton or his buying was uncertain.
The sale Of the Shawnee stock at a
gross price, including our profit of $40
per share was the first sale of stock
mace IN the state at above 20 per ce 1T
OF par value net to the municipalities
The sale was made when Kelly & Kelly
were practically the market. In vain
throughout May, we had attempted to
md market in New York, Chicago,
ST Louis, and Topeka when on June
ISL, unanounced and unintroduced, the
market and the only market for this
stock came into our office in the per-
son OF Mr.. Jordan, and contracted with
US 70 continue the buying, however at
out 20 per cent of par value, which
Price We paid for three weeks and I'M
I'll the sale of the Shawnee stock, when
we raised the gross price to 40 per cent.
AS we could not see the future, did not
know now long we might be able to
sen stock at any price, having no
knowledge of the amount of stock re-
CURED nor what the maximum price for
nna1 purchases might be, and recognize
ing the fact that the time to sell a
th1ng or no value is when somebody
wants that thing. we sold the Shawnee
stock at splendid price compared with
all previous sales, and in view of the
risk and uncertainty of the future.
Ihat the commissioners were author
lied under the statute of 1901 to sell
this stock without a vote of the people.
Is so plain that legal Interpretation l.
not required to determine the meaning
OF the statute, and that such authority
carries the right to option or contract
Ior sale, goes without saying.
Two Drafts Made Out.
Mr. Jordan, sitting at a desk in this
off1ce, and under our direction. flied
out two drafts upon himself payac,.
through the National Bank of Com
merce, of st. Louis; one for s22. 800 ma "
able to order of the Bank of Topeka for
account of Shawnee county, and enc
TOT $f,oOO payable to order of Kelly d
Kelly, the Bank of Topeka having ia
notnLng 70 90 with the apportionme1lt
or the FUNDS between the county aud
ourselves, and no knowledge or part IN
our deal with Mr.. Jordan.
MT Jordan and w. G. Kelly went
to the bank where the stock and the
Jordan presented his two drafts with
the statement that they were in full
payment for the stock which he was
ready to accept upon approval of the
assessment thereof. With this ap
rroval, the draft for the county was
handed to Mr. Mulvane. who accepted
it in full for amount accruing to the
county urder tie terms of the con-
tract; me other draft vas handed to
W. q. Kelly, who endorsed it, and the
two were sent forward for collection by
the Bank of Topeka; the one entered
at once as a cash credit to Kelly &
Kelly, and the other credited later to
the county.
Shawnee county has no complaint to
make as it is $500 ahead by reason of
The contract made with Kelly & Kelly
as the option was between Mr. Jordan's
20 per cent offer and our effort to do
better. 1t was a daylight contract made
in the office of the county commission
ers, and its terms published in the
papers of this city a month before the
sale of stock was made, elected no
protest. Compared with the 20 per cent
net to the municipalities that sold 80
per cent of the total purchased by Mr.
Jordan, the Shawnee was a magnificent
sale, as it then beat all other sales 80
per cent to the municipalities but COM
pared with the last and final purchases
of Rush and Reno stocks, in the aggre-
gate amount of s231,000 or 8 per cent of
the total, the Shawnee sale does not
look so good.
The average price paid for Sc, 900, 900
of stock by the Jordan investor is 25
rer cent of par value, so that the
Shawnee price ot 80 per cent is 20 per
cent above the average of the state.
Could Have Wiped 1t Out
The managers of the Missouri Pacific
had it within their power to wipe this
the municipalities, or it was in their
power 20 merge the local companies of
that system and by issuance of the
n. erger shares for the old stock, secure
not likely to have occurred with a
considerable amount of old stock in
the hands of the municipalities and
had these held for 40. so, or 60 cents,
they would, in all probability, have re-
allied nothing, as any reorganization
giving value to this old stock was in
tended for the profit of the road or it's
and not for the municipali-
ties.
The reort anization of the Missouri
Pacific without increasing properties,
mileage, Or earning capacity, has ar
il creased obligation in an authorized
capitalization of II millions above
of Missouri Pacific and
so millions in new bonds secured by
mortgage upon this part of the system
makes a net Increase in the bonded
obligation of probably % millions
Missouri Pacific stock is of very I'M
certain and fuctuating price, having
been down to rs cents in 1908, while it
is now lower by several points than or
August s. when the merger was COM
pleted.
1t is a we'll understood fact that
stock of railroad construction compan-
les, issued in exchange for municipal
bonds is never issued or accepted as
OF value and that such instance is by
irresponsible companies to evade that
provision in the constitution which
forbids donation of bonds or money
by municipalities to private corpora
TONS and when, therefore. for any rea-
son. the parent road makes purchase
of its old branch line stock at any
Crice, the amount received therefor is
practically a find to the municipali- |
ties.
County Got Good Price.
Shawnee stock sold at so per cent bet
ter -rice than did 80 per cent of the en- |
tire stock purchased by the Jordan in |
weston 1t sold at the top notch of
prices paid by the same investor for |
an additional IL per cent of the amount |
purchased, and at about 80 per cent less
price than was paid by the same In
weston for the purchase of the final 8
per cent of amount purchased. While |
this stock was being purchased at the
nrice of 20 per cent, and it's sale recon-
h1,l