The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-08-25
School Fund Commission Holds
S15O,OOO,OOO in Bonds.
Legislature May Be Asked to
Dig Up Cash for Them.
LAWRENCE Regulated FUND
After Town Procured N. U. IL
Made State Pay Bill.
Tale of Former Days in Boom
Towns Thru Kansas.

Bonds aggregating nearly $15O,0Vv
and not worth ten cents. are carried
by the state school fund commission
as a cash item for their full face val
ne. The bonds are deposited in the
office of Earl Akers. state treasurer.
but are so worthless that the package
might safely be used for paper weight
or scratch paper
Everyone connected with state de-
partments knows the bonds are worth
was offered at public sale. it would
probably not bring one dollar. Yet
each report of the state school fund
commission includes in its assets. the
bond issue purchased years ago by
the state. The bonds have in some
instances been repudiated and are
outiawed. Other bonds owned by the
state and carried as a cash item were
issued by boom towns in western
Kansas that today exist only In the
| memory of old plainsmen.
In 1911 the legislature sought to
| remedy the condition thru the pa USAGE
| of an act returning the $4,000 to the
state commission. The bill provided
| for the payment of the money to the
| commission from the general revenue
| fund of the state. The state might
| have then burned the worthless bonds
| y the same time the school fund COM
mission would have had actual cash
instead of worthless securities and
could have realized a return from the
money thru the purchase of good
bonds.
Stubbs Vetoed It.
| Walter Roscoe Stubbs was governor
when tie bill passed. Stubbs pos
sessed that human weakness common
to many Kansas governors. He was
looking ahead to the United States
senate. He wanted a record for econ
| cmy. Tine bill meant the placing of
actual cash in the treasury instead of
worthless bonds 1t meant raising the
money thru direct taxation So Stubs
vetoed the bill. But the next report,
as well as subsequent reports of the
school fund commission. continued to
list the valueless bonds as a cash item.
Included IN the block of bonds was
as issue by the city of Lawrence for
100000. These bonds had been voted
to the state for the location of Kansas
University on Mount Dread. After the
school was located, the city paid in
terest until 1884. Then it repudiated
the debt Not a dollar of the bonds
was redeemed.
One From Saratoga. ,I.
Another bond issue was by the city
of Saratoga. Pratt county. Once Sara
toga was busy little town. But Pratt
won the county seat and the town. To-
Gated near the present state fish
hatchery ponds, was moved.
Other issues tell of busy, busting
. days of lost towns the western
plains. An issue from Stanton county
is contained in the block of stock
listed as cash by the school fund COM
mission. The issue is worth about as
much as Villa money in China
1t Is probable the next legislature
will be asked to take care of the issue
That will mean that the state will dig
up actual cash to pay into the school
fund commission. In return il will
receive the worthless bonds which on
paper have for thirty years looked to
the innocent taxpayer like ready
CO Sh.