The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-22

Jury in Bond Case Decides
County's Claims Worthless.
Commissioners Were Satisfied
With Price of Bonds.
HAD NO MARKET VALUE
Stock Worthless Until Kelly
Deal Was Made.
Reprimand Asked as Result of
Newspaper Guess.

In verdict read in Judge Whit
combs court today, the jury in the
Kelly bond case found for the defend
ants and exonerated the bond brokers
| of any wrong doing in their transac-
ton involving the sale of Missouri Pa
cific bonds owned by Shawnee county.
The trial of the Kelly case has oc-
cupied the attention of the court for
several days. The action resulted
from the sale of $50 shares of Missouri
Pacific bonds through the Kelly
agency. For this collateral, which the
jury found was valueless until the
brokers appeared, the county received
value of the stock. OF this amount
$500 was paid as commission to the
firm of Kelly & Kelly.
Subsequent to the transaction, suit
was filed against Kelly & Kelly, the
Bank of Topeka and John r. Mulvane
in which the county sought to recover
the commission and an additional
Judgment from the brokers equal to
60 per cent of the par value of the
stock. In the trial of the case, de-
murrers as affecting Mulvane and the
bank We're sustained and the county
went to the jury asking only for the
ment was advanced by the county that
the brokers should pay the possible or
speculative value OF the stock at the
time the transfer was made.
questions, the jury found these facts:
That the stock had no market value at
the time the offer of sale was made to
the county commissioners. That the
only offer of sale prior to the Kelly
contract in April, 1902 was for 20 cents
and for this reason the price secured by
the defendants was not only fair and
just, but was the highest price received
by any county. township or municipal
ity 1t the time of the sale. 1t was
further found that the county board
was satisfied with the sale price. made
expressions to this effect and did not
protest the payment of the commission
under the terms of the contract. AS %
the practice of fraud o. deception on
the part of the brokers. the jury stated
that Kelly & Kelly had used fair means
and exercised professional methods 10
determine the possibility of the con-
solidation of the Missouri Pacific with
other roads. 1t was reported by .he
jury that the firm represented Edwin
F. Jordan as well the Shawnee
county board at the time of the trans
action. but that the county's interests
We're not sacrificed. No effort was
ever made by. the county. the jury
found, to- rescipd%ffe contract.
Sealed Vcrdict Tuesday Night.
1t was 1880 last nightswhen the jury
reported to Judge Whitcomb that It
had arrived at a verdict This verdict
was sealed and was no. opened until
9 o'clock this morning. 1t was then
found that several of the special ques-
tons had not been answered and the
jury was permitted to return to conf
plete its work. 1t was IL O'Clock this
morning when the verdict was read
In their anxiety to foresee the YER
dict of the jury a morning paper
predicted a verdict for the plaintiff
After the readingsof the verdict. Cap
tain Joseph G. Waters, on behalf of
the defendants, brought the article to
the attention of the court and open
~ declared that the practice of an
court verdict was unpro-
fessional and a gross injustice to the
court, the jury and litigants. He
also asked that a reprimand of the
method be entered in the record, but
the court declined = take notice of the
papers wild and unwarranted guess.
The verdict in the Kelly suit to-
day. ends the actions against the
stock brokers. In February an action |
brought by Grant township, Reno |
county, was heard in the Shawnee |
county court. After spending two |
hours on the evidence. the jury found |
for the defendants. The decision to- |
day in the Shawnee county case COM |
pletely exonerates the firm from any
charge of fraud in connection with the !
l.