The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1875-12-24
The School COmmissiOners
Invest $4,000 in Fraud
uIcnt school Bonds.
A SHARP SWINDLE
Treasurer LaPpIn Retires to
Private Life.
JOHN FRANCIS TO THE FRONT AGAIN
BOnebrake Don't Want to Break on
that Breaker.
ANOTHER CHAPTER OF THE OLD
STORYi

IL seems LnaL Kansas cannot get
away from the word fraud. The
State treasury has been too much
for several men who had, previous
to entering upon the discharge of
the duties of the Office, sustained
the highest character, in all respects.
Kansas has killed as many State
treasurers as she did Democratic
governors in territorial days. She
is pizen on 'em. Lappin, last year,
came down from Northern Kansas
to try it. lie had lived there near
ly twenty years, and no man had a
better reputation. No man enjoyed
a greater degree of popularity in
his section of the state. II was his
high standing as a citizen and bust
meas man that gave him the nomi-
nation for State treasurer. Every
man who knew Lappin said "now
we have the right man in the right
place." and yet in eleven months he
is "scooped" and resigns under a
cloud.
The facts are briefly these as they
came Tuesday night in the papers:
Early in September a letter was
received by the commissioners OF
the school fund enclosing bonds of
school districts in Mitchell county
for sale. 1t purported to be written
at Kansas City, and was signed by
S. Whitcomb. The state treasurer
told the board that he had letter
from Whitcomb, directing him how
to send the money for the bonds.
They were bought and the money
sent as directed.
Soon after batch of Jewell coun.
ty bonds were received from ST.
Joseph, from Thomas Mansfield,
which were bought in the same
manner.
In short time still another batch
was received, this time for districts
in Republic county, from Il. Miles,
of Kansas City, and bought.
The whole amount paid for the
bonds was nearly $4,000.
On the eighth of December lot
of bonds, amounting to SIS, $500, pur-
porting to be issued in Osborn
county, from j. S. Kibbey, of Kan.
sas City: were received. n COM
parison of the signature of the coun..
ty clerk on the bonds with one filed
in the Office of the secretary of the
State, showed that tho bonds were
fraudulent. This led to an exami-
nation of the other bonds when they
were all found to be fraudulent.
This created the greatest consterna-
ton among the State officers, and in
Topeka. Detectives have been at
work for ten days on this matter,
and some things have been ascer-
tanned which cannot at the present
time be made public.
On the eleventh of December the
governor wrote TO the attorney gen
eral, calling upon him to take all
necessary steps to ferret out the
guilty parties and bring them to
justice, and also suggesting to the
school fund commissioners that
great care should be taken in the
negotiation for bonds, and none be
taken except from responsible par
ties.
The school fund commissioners,
to-wit: State Superintendent John
Frazer, Secretary of State Thos. III.
Cavanaugh, and Attorney. General
Randolph, reported the facts to the
governor, and threw tue blame on
the State treasurer, in that he did
not use proper care in identifying
the person or persons 10 whom he
paid the orders. The examination
of the bonds has to be made by
these commissioners, and the treas
urer pays the money OH their order.
Governor Osborn then wrote to
Mr.. Lappin informing him that
suit had been commenced against
him for the recovery of the amount
paid out of the school fund on
these bogus bonds. We quote the
closing part:
1t is due to the state administra-
ton and to just public sentiment
that the management of the treas
ury be above and beyond suspicion
that not only should the incumbent
of that Office be without reproach
officially, but that he should be gen.
orally so regarded. Considering
the matter in this aspect and in
view of the fact that legal investi-
cation, which cannot be summarily
disposed OF, must follow, L am con-
strained TO suggest that your con-
tinuance in the Office OF treasurer
during the tendency of the inves-
tigarion would justly be regarded
as indicate and improper, aud
that your resignation of the OflisC
would be acceptable to me aud the
administration of which you are a
part.
After due consideration of the
Governors communication, Treas
urer Lappin sent in his resignation.
lie says:
1 have not Intentionally disregard.
ed, In any manner, my duties as
state treasurer. / might, perhaps,
have exercised greater vigilance in
the matter of the Identification of the
parties to whom tie payments,
stated in the report accompanying
your letter, were made, If / had
been aware of the true character oil
the bonds purchased. have no wish
however, to retain my Office, if in
any form suspicion might be attach.
ed to me, or ii the circumstances at
tending the payments of the orders
drawn in the purchase of the
school bonds should cause you Oh
the people of the state any anxiety
as to the custody of the public
funds. The Office of treasurer il
one of very great responsibility,
with no adequate compensation.
and have already held it at great
injury TO my private affairs. ]
therefore herewith tender to you