The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-17
Directs Attention of People to
Garden City Shortage.
Intimates That Coupons We're
Gone When Bonds Arrived.
WHAT OF "MR. BROWN
His Payment of the Discrepancy
Is Unexplained.
Treasurer Says State Didn't
Lose by the Deal.
Why Mr.. Richey Paid Just $3S2
of Shortage.
WHAT OF "MR. BROWN

No more of the money which has
been taken from the state treasury
has been returned. Mr.. Kelly, state
treasurer, has written a letter devot-
ed to an explanation of the Sl,+o2
Garden City shortage but no attempt
has been made Dy any one to explain
away the other shortages unearthed
by Mr.. Rowett, the state accountant.
1t should be kept in mind that there
is more involved in these dis
closures than is contained in a
single charge. 1t is the account
of the people of Kansas against the
state treasurer's office and there is no
use to attempt to divert the issue or
belfttIe the defalcations which have
already been unearthed. The people
of Kansas will never be satisfied with
out complete and exhaustive exam
ination of every account and fund in
the state treasury.
Those who have studied over the mat
ter believe there are some things in
connection with the return of the 81, ,175
shortage in the Abilene matter to the
state treasury. which have not all been
told about. Here IS one question for
instances:
Why did c. r. Richey come to pay just
1892 on the note for 31.175 which he
gave to Frank Grimes? According to
MI Grimes statement in the State
Journal of Saturday, when he found
out about the shortage and that what
records there were were in Mr.. Richey's
handwriting, he asked Mr.. RIchey to
put up the money to make the shortage
good; that Richey raised what he could
and that he loaned Richey the balance.
Riehey paid 1892 which was credited on
the note.
Now why did Richey raise Just a92?
Why didn't he make it an even $500?
Or why wasn't it $39o2 Multiply $392
by three. 1t makes $1s176. Therefore
Mr.. Richey paid one-third of the short
age. Is there anything significant in
this fact?
Before Mr. Grimes gave out his
statement it was rumored that Rfchey.
Grimes and Kelly had together made
good the Abilene shortage The fact
that Richey paid exactly a third of it,
in even dollars. makes 1t look as
though this is the case Grimes took
Richey's note for the whole amount,
with this payment credited on it, but
the note has no security behind it, and
If Mr.. Richey is the sort of man to
take the Abilene money, as Grimes
holds him responsible for doing, the
note is not worth much.
Why. too, did Mr.. Richey write that
letter to the city treasurer of Abilene
assuming the responsibility for the er-
ror? The city treasurer of Abilene was
not making any fuss about it. so far
as is known. He had his receipt for the
money from the state treasury SO he
was resting easy. There was no reason
for Richey writing that letter. Did he
do so voluntarily, or was he urged to
do so? These are things which have
not yet been explained.
Mr.. Richey's friends insist that he has
been made a victim by those who are
really responsible for the theft. They
do not understand the hold Kelly has
on Richey, but they believe there is
something which makes Richey stand
by Kelly.
Kelly himself is allowing Grimes to
throw the blame on to Richey, so far
as any public statements are concerned.
Richey was not convinced on Saturday
that Kelly had entirely gone back on
him. although he did not like Grimes
attitude. He insists that he did not get
a dollar of the money and that he
knows nothing about it.
State Treasurer Kelly publishes n
statement in the Kansas City Journal
which is as follows:
1t is not charged that the state has
lost money since 1 have been state
treasurer The only charge is that in a
Garden City bond deal, which was pro-
NOTED by c. Z. Foote, bond broker
certain payments of coupons were not
credited properly. Not a dollar was
lost 10 the state in the transaction, and
1t is difficult to understand why so
much should be said concerning d
transaction in which no injury has
been done.
The Garden City, Finney county.
bonds were bought blythe old school
fund commission early in January.
1908. They were 30-year bonds and
should have had so coupons attached
When these bonds were purchased,
they We're taken to the auditors office
and registered to the permanent school
fund Before they become the proper
ty or the state, and this is the only
evidence of ownership, the law re-
quires that the auditor shall place IN
1o
ing coupon the following stamp: 'Th
property of and payable to the per
manent school fund of the state of
Kansas. Coupon No. l. of which so
much has been said, does not hear this
stamp The bond clerk in the auditors
Office, if a 30-year bond was presented
for registration, might assume without
counting, that it bore 60 coupons be-
cause it was a semi-annual interest
bearing bond, but, when ii came to the
stamping of the coupons the property
of the state. he could not make the
mistake of emitting to stamp one cou-
pom and make the same mistake on
each of the Sc bonds The bond clerk
in the auditors office now states rnon
investigation that this must have been
the condition in this case.
1T can not well be disputed that when
these bonds are registered in the audi
tors office. there were but fifty-nfne
coupons attached to each of the sixty
six bonds. Walter Payne, the chief
clerk in my office, has this to say con-
corning the registration of these and
other bonds: When these bonds were
placed in my hands for registration,