Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-11-19
GOVERNOR LEEDY THOUGHT HE
SAW SOMETHING IN IT,
Mr.. BUSH BLOCKED THE GAME.
CONTRACT LET. AFTER LONG DE-
LAY, TO THE BEST BIDDER.
National Bank of the Republic Will
Continue 10 Transact KANSAS
New York business. in spite
of Governor Leedy's
Desires.

Topeka, Eas, Noy. H.-ISpeciali And
now it happens ana comes 10 pass that
Secretary of State Bush claims that 'IoN-
eriIor Leedy is at times real nauSh'E III
financial matters. and actually ~oulu
pinch some cash under the claim that
IL was TO be used in educating the people
TO poverty ideas. The claim Is really made
that IL the majority OF the people III the
stale could be robbed to the pauper line
another Populist victory would be assured
on this basis the effort of the governor TO
delay selected fiscal agent in New York
is justified.
The governor. Secretary of State Bush
ard State Auditor Morris, composing the
fiscal agency board. to-day selected the
National Bank of the Republic, of New
York city, as the Eastern fiscal agent Tor
The state of Kansas. The bank Is TO give
2 per cent on daily balances and TO receive
ore-tenth of per cent for taking up bonds
and one-twentieth of ! per cent for taking
up coupons. This is AN exceedingly good
contract for the state. but in no way do
the people have Governor Leedy to thank
for il Secretary of State Bush and Bank
Commissioner Breidenthal originated a
fight which resulted in the deal being clo- sd
to-day so adyantageousiy to the state.
There is an interesting story connected
with the affair.
About six months ago the administration
decided to change fiscal agencies in New
York At that time the National Bank OF
the Republic was the agent. Governor
Leedy got 1t into his head that it had been
customary for previous administrations to
swell their campaign funds a little on the
fiscal agency deal. and he told other state
officials that he believed that it. would be
no more than right IL this administration
followed suit. He said the people would
lose nothing, as the bank which got the
contract would take ii below the legal rate.
Secretary of State Bush took issue with
the governor. He said that he was in favor
of giving the taxpayers the benefit of
whatever reduction the. board could get.
Bank Commissioner Breidenthai and Mr..
Bush wrote the Hanover National bank of
New York, which has more correspondent;
in Kansas than all the rest of the New
York banks combined, TO submit u bid to
the state for the fiscal cd,s agency business;
Doodle. and submit a bid on strict business
principles" was the bank commissioner Z
Injunction. The Hanover complied with
the request and submitted a bid agreeing
TO give per cent on daily balances, and
TO receive one-tenth of per cent for TAX
ing up bonds and one-sixteenth of l per
cent for taking up coupons.
The fiscal board met and Secretary OF
State Bush sprung the Hanover's bid. II
was much lower than any other bid, but
was three months ago. Several other meet
ingS were held afterward, but the contract
was not awarded. Then Attorney General
Boyle had a friend who wanted the board
10 give the agency to the Manhattan Trust
Company. of New York. but as that con-
Germ was not considered a regular bank
the request did not receive any considera-
ton After other banks knew what the
Hanover's bid was. they all came down a
peg.
The Hanover has been treated unfairly il
this regard. The Fourth National, of New
York. submitted bid about the same a:
that of the Hanover: and the Natfona
Bank of the Republic came along with ;
bid which was the same as the Hanover S
with the single exception that ii agreed Il
take up coupons one-eightieth of l per cen
cheaper than the Hanover.
At about this stage Of the proceedings, ex
Senator H. B. Kelly came along with
Company, of New York Mr.. Kelly remind
ed the administration that he had RENDERED
valuable service in the campaign last fal
and that he had received nothing up I,
date; that here was chance for it to hell
him a little, and he would expect it to do so
His banks bid was about the same figur
as the Others. State Auditor Morris
Fargo institution. Secretary of State Busi
stuck to the Hanover. Governor Leedy
after failing to do what he had started GU
TO do. decided that the National Bank o
the Republic was good enough for him
To-day another meeting was held. and mas
much as the National Bank of the Repub
lie was lower by trifie than any other i
been different: undoubtedly they woul,
have been altogether different IL Secretar.
of State Bush had not taken the stand h
did in the first place.