The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-08
Admits He Took Money from
Treasury Without Warrants.
State Treasurer Intends State
ment as a Denial, Really.
STARTLING CONFESSION
Was "Told That the Bonds
Would Be Bought!
On This Statement He Paid Out
$123,OOO.
NOT THE SAME BONDS.
Those Given to Kelly Not Bought
for School Fund.
Why His Own Statement Con-
Tfcts Him of EmbeZZlement.
Now Up TO Governor and At
tOrney General.
On This Statement He Paid Out
$123,OOO.
NOT THE SAME BONDS.
Those Given to Kelly Not Bought
for School Fund.
Why His Own Statement Con-
Yfcts Him of EmbeZZlement.
Now Up TO Governor and At
tOrney General.

The state school fund commission
bought $I23,OOO of Comanche county
bonds, and to pay for the same 1 is
sued the checks of the treasurer OF
state, who is the custodian of the
school fund, for that amount 1 have
the bonds in my possession, and had
them in my possession when l issued
the checks. 1 issued the checks after
the secretary of the school fund COM
mission had shown me the resolution
authorizing the purchase of the bonds,
and after the state auditors office had
informed me that the refunded bonds
were on file in the auditors office for
registration. T T. KELLY.
The State Journal reiterates every
thing it said yesterday in the first page
article about State Treasurer Kelly s
connection with the Comanche county
bond deal.
Mr.. Kelly is guilty of embezzlement
by his own statement. Here are seven
proofs of it:
First-The records of the school
fund commissioners themselves show
that the z per cent. Comanche coun-
ty bonds were purchased on August
II, and not before. Mr.. Kelly paid
Mr.. Henrici, cashier of the Interstate
National bank. s123.OO0 on July 26.
Second-The bonds for which Kelly
admits he paid Mr.. Henrici two checks
for s61,50O each were per cent.
bonds. issued in 1890. These bonds
were never at any time purchased by
the school fund commissioners. Kelly
actually paid Godard's note with the
states money, as the testimony printed
yesterday shows, and took over the
per cent. bonds.
Third-If Mr. Kelly purchased these
s per cent. bonds on the strength of
a statement from the secretary of the
school fund commissioners, he COM
mitted embezzlement in turning them
over to Mr. GODDARD to be refunded for
4 per cent. bonds
FOurth-The school fund commits
sioners paid Mr.. GODDARD accrued in
terest on the 4 y per cent bonds from
July 1 to the date of their purchase.
Take your pencil and figure: The in
terest on S123,0OO for one year at "a
per cent is $685.; for one day it is
S15-16 Z. July to August IL is AZ
days. The interest for AZ days would
be $6s6.9S. Mr.. GODDARD was paid
$636.e3 in accrued interest. (See copy
of warrant for accrued interest in
State Journal of October ID
Fifth-Mr. Kelly's own statement
convicts him directly in this: He can
not legally pay out any money except
on warrants duly drawn by the proper
Officer. He cannot pay money out of
the state school fund without an order
or warrant drawn by the school fund
commissioners. The warrant for the
payment of the Comanche county
bonds was not drawn until August II
Therefore when Mr.. Kelly paid for any
bonds prior to the issuance of the war
rant he was committing embezzlemenu
Sixth-The warrant issued to Mr.
GODDARD by the school fund commits
sioners to pay for the AZ per cent
Comanche county bonds is stamped
Paid Aug. II, 1904" by the state treas
urer. If Mr.. Kelly paid for any Co
manche county bonds on July 26, why
did he pay for them again on August
IL?
Seventh-The state school fund com
missioners cannot purchase bonds and
turn them over to the state treasurer
until they have first been registered by
the state auditor. That is a step in
their purchase. Section 6393, page 1891
general statutes of 1901, reads as fol-
lows:
Bonds Registered: That it shall be
the duty OF the commissioners of the
permanent school fund to present to
the auditor of state all bonds which
may hereafter be purchased by them
prior to the deposit of the same with
the state treasurer"
The Comanche county bonds pur-
chased by the school fund commission
erS were not registered by the state
auditor until the night OF August IL.
Yet Mr.. Kelly says he paid for them
and received them on July 26.
The Capitals Statement
The Topeka Capital this morning.
presents a defense of T. 7. Kel- !
1y'S embezzlement for $123, 600 of state
money. 1t publishes in black type MIR. |
Kelly's statement given above, and ac-
companies it with an alleged explana-
tion.
Mr.. Kelly spent much time with the |
editors of the Capital in the Capital |
Office last night. The Capital this
morning says:
The Topeka Journal yesterday
charged that State Treasurer T. T. Kei- |
~ embezzled $123, 1000 of public funds to \
aid a. A GODDARD in the Comanche |
bond transaction.
The Journal prints nearly five coll
umns of testimony on the subject Geo. |
S. Hovey, vice president of the Inter- /
state National bank of Kansas CITY. |
testifies that his bank loaned Mr.. God |
ard S115.000 on the Comanche county /
bonds, pending the deal with the school /
fund commission. GODDARD had pur-
chased the bonds from a Des Moines |
man, and the money was borrowed to I
pay for them. GODDARD borrowed the |
money for three days, paying $3.50 for |
the accommodation
''dr- Kelly was not connected with |