The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-07-21
Identity OF the Purchasers Is a
Profound Secret.
Only Two Men Know and They
Won't Tell.
THEY DISAGREE ON The FACTS
Finance Commissioner Says the
Banks Get Some.
The Man Who Markets the Sc
curitieS Denies 1t.

The identity of persons who pur-
chase Topeka bonds is secret only
two persons know and these two Will
not tell They are w. H. WATSON, city
commissioner of finance, and Scott
Hopkins. of the Prudential Trust com
pany. While these two ENJOY the
secret all by themselves, they DO not
agree in their statements WATSON
denies that he has complete list OF
purchasers of the last issue of bonds
which has been sold Hopkins says
he gives WATSON the name OF every
purchaser.
Again. WATSON says $4,000 of this
last issue was sold to the Bank OF
Topeka TO be turned over by the bank
to customers OF the bank. Hopkins
says nothing of the KIND ever occur
red
Il know positively that no bonds
have been turned over TO the Bank OF
Topeka, either for the bank itself or
for the bank to turn to its customers,
said Mr. Hopkins ---
The discussion arose over state
ment made by Mr.. Wasson that small
purchasers and private in nd I,,,I; $
were given the preference IN buying
Have any of them been sold to
banks in the city" he was asked
net to my bank, replied WaSs"n.
who is an officer in the shawnee state
bank in North Topeka
Have any been sold to any banks
We'll, yes, one bank got some, re
piled WATSON reluctantly.
What bank was it?
..What difference does It make? 1t
wasn't nY bank
.'WnaS bank was ii?
1T was the Bank of Topeka, but
do not see any use in publishing the
fact And l do not think you ouSht
to-" said the city commissioner OF IL
nance neIVously-
But If individual purchasers are
nd q &
sue has already been oVer-subscribed,
as YOU say. why were bonds sold to
the bank
Wanted Them for Customers.
well. they said they had never
been permitted to buy any bonds from
the city before ard they wished to &C
commodate some of their customers
and also have the advantage Of having
the purchase made through the
bank" explained WATSON.
And Mr.. Hopkins, of the Prudential
Trust company, who handles all the
bonds for the city, free OF charge,
under the Topeka plan,' which has
received favorable comment ana mas
worked very advantageously, says
that neither the Bank of Topeka nor
any other bank got any of this issue
of bonds!
A great many Topeka people are on
the waiting list for an opportunity
to purchase this issue of bonds. part
of which are sold each mOnt1 to meet
the monthly estimates of the paving
contractors.
But Mr. WATSON refuses to make
public the list of those who are sue
cessfuI in securing bonds and as re-
suit those who are left waiting have no
opportunity to check up and determine
whether the bonds are being sold TO d
favored few, or are being apportioned
in regular order to those on the llsl OF
prospective purchasers.
One Topeka banker, who does not
handle Topeka bonds, says these bonds
should sell at small premium. Ihey
draw four and one-half per cent in
terest and are not taxable. He does
not know of any of these bonds com
manding a premium, but the fact that
there seems to be scramble for them
and the additional fact that members
of the city commission are consider
ing lowering the interest rate on the
next issue to only 4 per cent, JustlfieS
the speculation. The city of Topeka
is getting no premium on these bonds.
Not a Banker After All.
Today MIR. WATSON stated that the
man who attempted to bride him by
offering him fifty cents a name for
his list of prospective bond buyers, is
not a banker. He declined to give his
name or occupation.
One might suppose that the names
of persons to whom the city sells its
bonds would be a matter of public
record. but such is not the case. Com
missioner WATSON declines to make the
list public on the grounds that it
would be Objectionable to the pur-
chasers. 1t was explained to him that
these bonds are not taxable and that
no good reason exists for concealment,
and that persons owning bonds should
be proud of the fact rather than to
feel otherwise.
While much has been said about
the opportunities given to individual
purchasers to buy bonds under the
Topeka plan" with brokerage COM
sions eliminated YET 1t is an interest
ing fact that when $S1. 592.SS was
paid on July l city bonds and in
terest coupons. only two individuals
presented their coupons to the city
treasurer. One of these collected $11
dollars and the other s22. All the rest
of this large sum of money was col
Iected through banks.
OF the present issue of $135, 900 of
bonds. Mr.. WATSON says about 500
900 has already been sold. Mr. Hop
kins says nothing like this amount has
been sold. The city water depa rtment
purchased $4,000.
When Roy L. Bone was city COM
missioner of finance, advertisements
were inserted in the newspapers a few
days prior to each monthly sale of
bonds. thus notifying prospective pu:-
chasers of the opportunity to buy. No
such notices have been inserted by the
present commissioner of finance.
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