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El Reno was in a failing condition when this trade was made, and is now in the hands of a liquidating agent, and these certificates of deposit are practically worthless. When the bank became insolvent the School District Officers asked for an indemnity bond securing the certificates of deposit of the bank, which they held. The bank was unable to make this bond, and in lieu thereof, gave to the School Board the Old Colony Petroleum Company Bonds that it had received for the school bonds. The Old Colony Petroleum Company then was in financial difficulties, and is now in the hands of a receiver and it is generally conceded that its bonds are practically worthless. After the El Reno School District bonds passed to Fred Dennis and other stock-holders of the Old Colony Petroleum Company, or the Old Colony Petroleum itself, $97,000 of these bonds were traded to A. S. J. Shaw, Secretary of the Commissioners of the Land Office. He was acting for the Commission and traded $97,000 worth of Liberty Bonds belonging to the School Funds of the state for the $97,000 of School District Bonds. It is possible that this transaction was an honest one, and that Secretary A. S. J. Shaw was deceived in believing that this was a good deal for the state, because the school bonds were bearing a higher rate of interest than the Liberty Bonds, and, as he stated, that the School District would be able to realize cash from the sale of the Liberty Bonds. As a matter of fact, the school dis-