The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-07-20

bank of FL Reno was In falling
condition when this trade was made,
ana is now In tho hands Of n llqui-
dating agent, and these Certiflcatcs
~ deposit are practically worthless.
When tho bank became insolvent
the school district officers asked
for an indemnify bond securing the
certificates OF deposit Of the bank.
which they held The bank was un-
able To- make this bond, and In llou
thereof gave 90 the school board the
Old colony Petroleum bonds that
n had received for the school bonds.
The old Colony Petroleum company
then was I'm financial difficulties.
ana IL now In the hands OF re-
cclver and u ls generally conceded
that rs bonds are practically worth
less.
state Has SO5 900 worth
Afor the III Reno school district
bonds passed ~ Fred Dennis ana
other stockholders Of tho Old COL
ony Petroleum company or the Old
Colony Petroleum company Itself
$4,000 Of thcso bonds were traded
10 A. 3. j. Shaw. secretary of the
commissioners Of tho land office
lie wnH acting for the commission
and traded $4,000 worth of Liberty
bonds belonging 20 tho school funds
of tho state for the t97 900 OF school
district bonds.
n ia possible that this Transaction
WAS IN honest one. and that Sec.
A. s. j. shaw was deceived into bc-
licvIng that this was good deal
for the state, because the school
bonds were bearing n higher rate
of interest than the Liberty bonds
and as he stated that the school dis
trlct would be able TO realize cash
from tho sale Of Liberty bonds As
matter OF fact tho school district
did not get the Liberty bonds or one
cont from tho proceeds Of their
sale.
After the state acquired tho school
district bonds they were offered
with other securities TO Wichita
lnyestmout company. This COM
company accepted the other securi-
tics, but acting on the advice OF its
attorney, who held that the title and
value of these El Reno school dis
trlCt bonds were questionable, re-
fused to take them.
As nearly as can he determined
besides the $4,000 Of bonds held
I by the state. the balance Of these
school district bonds are in posses
sion OF n stockholdcr Of the OLD
l Colony Petroleum company.
Signed,
a. l.. NICHOLSON.
Chairman OF Committee.
J. A. Heule.
Secretary Of Committee.
The Inside Story.
AS related in Oklahoma City, the
story OF how the state school fund
/ was reached in tho transaction. runs
! about thuswise:
ono W, T. Hlahtower, who Is nm
! official in the American National
/ bank OF oklahoma City, visited
| Secretary Shaw and asked him to
| exchange government Liberty bonds
/ then In the state school fund for
| $4,000 IN FL Reno school bonds,
which he. Hightower. had in his
possession. state Auditor Garter
| states that the two came 10 his Of
| flee to consult with him about IL
ns member OF the school land
/ commission. and that Hightower
/ represented himself to be the agent
| OF the El Reno school board Later,
| Carter says. he discovered that
| something was wrong and he went
| down TO notify Secretary shaw that
! he would oppose the exchange. Shaw
| however, informed him that the
| trade had already been made.
Thomas II. owen, vice president
| and trust officer Of the American Ma
tlonal bank is out in a statement
denying that he had any knowledge
OF tho transaction made by High