The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-19

ened to show it up thru publicity. But
they were willing to help defend the
contract if we let them in.
well. we called their bluff. This
is the result. We have made the best
contract with the county that the
county ever had and we will stand on
it. Even If Burrow and Cobb paid
$4,000 more than we will pay-as
they claim they are willing to dot
would still cost Shawnee county S15,-
900 more than they would gain under
the form of contract which the
county has formerly had"
The new syndicate holding the latest
hard surface bond contract bid 9O.25
for the issue. Their contract is de-
clared to call for taking up any
amount of the bonds at any time and
the carrying of any portion of the
amount at six per cent
County Has Paid High.
Under methods employed in hand
ling the former road issues. it is de-
clared that the county at times paid
as high as II per cent interest for
money. The bonds bear 5 per cent.
Pending their issue, county warrants
are given in lieu of the bonds. These
warrants carry six per cent interest
rate. OF course the bond holders pre-
fer the warrents and do not hasten
substitution of bonds.
vestor," said Dean today, Mr.. Bur
row recently called Mr.. Rogers
County commissioner to the bank
and told him that, in view of the fl
nancial situation, it would be neces-
sary to discount the warrants per
cent. That would mean II per cent
interest return to the investor. Mr..
Rogers. very wisely and for the good
of the county. went to the Merchants
National bank and they told him they
would take all the warrants issued on
the per cent basis
In his statement before the attorney
general, ]. r. Burrow stated that the
county commissioners had issued Their
bonds at too low rate. He con-
tended that his bank would take up
the warrants at any time without dis
count and thus save the county large
sums of money.
The bond issue is held up pending
continuance of the investigation Wad-
nesday. 1t is probable that many
statements and counter statements
will be made by the waring bond bro
kers before the case is disposed of
One claim is to the effect that on a
recent road project where the county
expected to pay 100000 of the con-
struction cost that $4,000 had to be
added to the estimated cost because
of warrant interest charges.
with the attorney general if he really
wants to go inc this matter" said
Dean. in that case, a good many
interesting matters of local concern
will be pointed out. I doubt if the
public will approve of some forms of
competitive bidding.
The preliminary bond issue of
100000 is now in the hands of y. A
Turner, state auditor, and has been
certified for registration. This pro-
ceeding is held up under the attorney
generals orders.
Additional Conferences Today.
The attorney general held additional
conferences in the bonds case today.
Members of the Shawnee county board
were called during the morning. The
discussion was behind closed doors
This afternoon representatives OF
firms which had Joined in the contract
were called before the attorney gem
eral. Firms which are reported to
have been interested in buying of the
new bond issues were: Columbian
Title &. Trust company Kansas Securi-
ties company Shawnee Investment
company of Topeka and Stern Broth
ers & Co., Kansas City, Mo, repre-
scented by Kurtz Kellam of Topeka.