The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-10-09

ton, and also for the safekeeping and
prompt payment on the state treasurer's
order of the proceeds of all such collec-
tiOns, also for the payment of all drafts
that may be issued to the said treasury
by such depository
BANKERS MAKE DENIALS.
The Topeka bankers have come 20 the
defense of State Treasurer Frank
Grimes
William Henderson, cashier Of the
First National, f. w. Freeman, cashier
of the Merchants National and p. /.
Bonebrake, president of the Central Ma
tiOnal, seen today, denied absolutely
that their respective banks have paid to
Mr. Grimes any money as interest on
the daily balances.
William Macferran, cashier of the
States Savings bank, of which Attorney
General GODDARD is president, has made
affidavit that this bank has paid no
money to Mr.. Grimes.
STATE OFFICERS KNEW.
State Auditor George E. Cole, during
the last session of the legislature, sug-
gested to the legislative committees that
law should be passed requiring the
banks designated as local repositories
for state funds, to pay into the state
treasurer interest on the daily balances.
This suggestion was not adopted al
though 1t had the approval of the ad-
ministration.
It has been suggested that the auditor.
the governor and the secretary of state
IN examining the state treaSury know
each month how much money there is
on deposit in the local banks and that
they should have exercised their infiu-
ence to have the money transferred at
all times to the state treasury. The
members of the board state that there is
no law to prevent the retention of funds
in the local banks and it is also claimed
that the banks by this business, confer
great favors on the treasury by collect
ing and looking after all exchanges
which come to the state from Kansas
counties or other sources
tied, in return for this favor, to the use
of the money which is daily credited to
the state.
MR.. GRIMES KILLED THE BILL
1t has been charged that Mr.. Grimes
lobbied against q bill pending in the
last legislature to cause local banks to
pay interest on daily balances. Such is
not the case. No such law was pre-
sented, but Mr. Grimes, in his biennial
report recently issued recommends
that the next legislature enact such a
law.
\ bill was proposed in the last 1egis-
lature making the state treasury a sort
of loan office; providing that the state
funds should be loaned to counties and
school districts, which would furnish
township or other municipal bonds for
security; to banks or other institutions
which might furnish security, and pay
for the use of the money a small rate
of interest
This bill also provided that the treas
urer should not keep in the vaults of
the treasury more than $4,000 at one
time This was the bill which Mr..
Grimes helped to kin, and he is glad of
THE state cannot afford to go into
this sort of loan business" is the prin-
cipal reason which Mr.. Grimes assigned
for opposing the enactment of this
measure into law.
GRIMES WILL PAY THE BILL
State Treasurer Frank Grimes said
today: The case against me includes
my bondsmen. 1t is generally under
stood that this suit is a political move
for persecution, and I will defray all
expenses of the fight against it.
My bOndsmen are not alarmed, and
theyneed not be alarmed. This is a fight
against me personally, and 1 viii meet
the opposition on that ground, absOlv-
ing my bOndsmen from all responsibility
in connection with it.
I have received in today's mail, from
my -bondsmen and other persons. letters
expressing contempt for such outrage
Gus persecution, and volunteering their
services in any manner in which might
be benefited"
SAVING IN EXCHANGE.
Some of the friends of Frank Grimes
are showing today that the work of
the Topeka banks in collecting the ex-
changes which come to the state treas
urer free of charge saves to the state
the sum of 600 annually.
This is at the regular rates for col
lections, the annual sum which the
three million dollars.
This money is collected by the banks,
under the law OF 1891, free of charge SO
far as the state is concerned. 1t re-
mains for the prosecution of this case
against Mr.. Grimes to prove that the
banks. in exchange for the use Of this
money, pay the treasurer a rakeoff as
interest on daily balances
DORAN SAYS HE WILL PROVE IT.
Thomas F. Doran, attorney in the
Grimes case said today:
"Our statutes provide that the money
of the state shall be kept in the state
treasury and not in banks. The state
has built at great expense fire and bur-
glar proof vaults and employs guards to
watch them day and night that no loss
shall occur either to the state or state
treasurer. 1t then prohibited by penal
statutes the deposit or loan of state
moneys by the treasurer. The money
ofthe stateifin banks is unlawfully there
Its place is in the vaults of the state
treasury. Checks. drafts. money orders,
etc. may lawfully be collected through
banks properly designated by lawful au-
the money must be placed in the state
treasury.
The restraining order granted by
Judge Thomson simply restrainS the
treasurer from loaning, investing or de-
posting the states money in banks and
from exacting, accepting or collecting
interest, bonus or reward for such in
NeStmentS, by whatever name such
tribute or reward may be called.
Some people may say it is not in.
terest- We care not what it is called, the
only question at issue is this: Has Mr..
Grimes received money for leaving
money of the state in the banks. and if
he has, the question then is. does it be-
long to the state? This is the only issue
and we will try this in court Mr.
Grimes knows; he can say if he will.
Let him answer; he is charged We be-
Heve we can prove the case substantial
ly as alleged.
LAS to the injunction feature we care
nothing for that It's purpose is served.
We don't believe that any more money
will be left with banks We don't think
any further bonus or interest will be
received or paid. We may even ignore
the injunction feature altogether but if
any bonus has been collected by Mr.
Crimes II hal0noG IN tha state aDd +ba