Perth Amboy evening news., 1911-03-29
STOKES MAKES
A QUICK REPLY
Continued from page ID

tion of an evil mind, who thinks
there must be wrong because it can
see no evidence of wrong, would
have injected a disjointed sentence
of this character into the report.
The report says that while we
regret to say 1t, we believe that the
trustees during the past six years
have not exercised that care and
caution which the ordinary prudent
business man would in the manage
ment and investment of his own
funds So far as my knowledge of
the work of the trustees of the
school fund in this respect goes, that
statement is unqualifedly false in
fact, and the regret of the commit
tee correspondingly unnecessary.
During the past six years referred to
the trustees consisted of former Gov
ernor Fort, Attorney Generals Nc
Carter and Wilson, State Treasurers
Briggs and Voorhees,, Comptrollers
Morgan and West, Secretary of State
Dickinson, and myself. / think the
judgment of these gentlemen per-
forming their duty under oath of Of
fee is sufficient refutation of the be-
lief of those who have but a super
fetal knowledge of the work of that
department.
Used Care and Caution.
During my term of office the ut
most care and caution were exer-
cised in the selection of securities
for the school fund. Senator Briggs,
Treasurer Voorhees,, Attorney Gem
eral McCarter, Comptroller Morgan,
Secretary of State Dickinson and N.Y.
self bought bonds at the very prices
that we could under the market con-
ditions then existing, and the~sound-
ness and safety of those securities
tcannot be questioned today. Every
purchase was made by the unani-
inoGs vote OF the trustees. One OBJ
lection barred a purchase, so that
favoritism was absolutely impos-
sible.
During my term bonds we're pur-
chased of t~wenty-eight different par
ties. A little over sixteen per cent.
of the total purchase were made di-
rectly from the issuing municipali-
ties. The trustees always endeavor-
ed to buy direct when possible. That
cannot always be done, as munich
palities do not always issue bonds
at the time the school fund has
money for investment, nor Is 1t pos
sfble as a rule for the school fund
to take the whole of an issue. In
deed, / always advocated the policy
of taking small amounts of different
issues, rather than making large
block purchases. The largest sell
er Of bonds during my term was r.
N. Grant & Company, a firm that
during that period and since was UNI
friendly to my brother, whose name
has been mentioned in this connec-
ton. The attempt in the report to
leave the impression that there was
a relationship between my brother
and r. NJ. Grant & Company. be-
cause at n time they were CO.
partners, shows It's unfairness. That
partnership dissolved in enmity be-
fore | became governor and that
enmity has never healed. Surely,
III | had wanted to show %favoritism,
would not have acquiesced In the
purchase of bonds from one un-
friendly to one OF my kin. That
me, az Was eadeaxering to serve
the interests of the state without re-
gard to persons.
Competitive Bids.
AS | have stated before the bonds
were always purchased under a fair
system OF competitive bids, and while
my brother under those conditions
as a bond man had a perfect right
to compete with other bidders, he
did not sell bonds to the state during
my term of Office. The report of the
committee recognizes this fact. This
Is the essential feature. The at
tempt to prove that he was interest
ed at one time or another in bonds
that were sold to the state by other
ton of favoritism.
Fol example, among the sellers Of
bonds during my administration was
the chairman Of the investigating con
mittee, who bought the bonds from one
of the counties Of the state, sold them
TO the state school fund, and received,
as he was entitled to, the payment
therefor-bonds which I in good faith
believed belonged to him, as the FL
~nancial Chronicle, of that period states.
Ii they did not, he simply abused the
confidence that I reposed in him as my
chief of staff. The fact, as he claims,
that he afterward gave the profit on
those bonds to ome one else does not
change the fact that he was the seller
of the bonds to the state, and that he
received from the state whatever profit
was made between the price which he
paid and the price for which he sold.
I make no charge against the chair
imam of the committe who sold those
bonds, but I resent the idea that after
three and a half years Of silence he
attempts to eriticise me by pleading
that he gave the profit on the sale to
a third party. If he feels he needs a
whitewash, why not do it without at
lacking others. I leave 1t TO a fair-mind-
ed public to decide IL this is the work
of a brave and frank man. There are
some descendants in this state whose
ancestors used to fight in the open
not under the cover of innuendo and
suggestion.
Was Not the Purchaser.
One of the main purposes of this in
yestigation seems to have been to pic
Iture me as the only party in eonne
ton with the transactions of the school
fund. Nothing Is further from the
truth. I was not the purchaser of the
securities of the school fund. No gov
esnor is. The transactions do NOT 90
through the governor Office. I was
simply n Of five purchasers, and /
eon~seientionsly performed by duty, in.
yestigated the character of the bonds
purchased and was amply satisfied as to
their worth and to the fact that the
state secured its bonds at the lowest
price possible under the market condi-
D. 49,