The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-11-05
SHORT $I464
Accountant RoWett Finds
Another Leak In Treasury.
Missing Money In the Oklahoma
Warrant Account.
THE CASH is PAID IN.
Since Investigation Began ST.
966 More Was Turned In.
Another Strange Fact Is
Brought Out.
USED TO SPECULATE.
Treasurer Trafflcked in High
Interest Bearing Warrants.
Sold Them to Banks I'm Topeka
and Oklahoma.
Since Investigation Began ST.
266 More Was Turned In.
Another Strange Fact LIS
Brought Out.
USED TO SPECULATE.
Treasurer Trafflcked in High
Interest Bearing Warrants.
Sold Them to Banks in Topeka
and Oklahoma.

The state treasury is short 81, ,464.77 of
the interest on Oklahoma warrants,
notwithstanding the $1,266 that was
hurriedIy turned in when T. T. Kelly
found the state accountant was work
ing on that fund last August. This is
in addition, also to the money the state
has lost and Kelly has made by specu-
Iating in these Oklahoma warrants.
State Accountant Rowett today COM
pleted his report on the Oklahoma in
terest matter and made his report to
Governor Bailey. The governor made
It public at noon.
The report shows that up to the time
+. E. Grimes became state treasurer all
Oklahoma warrants, which Kansas re-
ceives for taking care of Oklahoma
prisoners in the penitentiary, were kept
in the state treasury until paid by Ok
lahoma and Kansas received the full
amount of interest on them.
The last Oklahoma warrant that re-
manned in the state treasury until paid
was one issued October Z, 1896. Okla
homa lets its warrants run two or three
years, and this one was taken up on
February ., 1899, about a month after
+. z. Grimes became state treasurer.
From that time on the speculation in
Oklahoma warrants began-that IS,
they were sold to banks. 1t is said
worth premium The principal banks
purchasing these warrants were the
Merchants National of Topeka and the
Guthrie National at Guthrie. When
the sale was made and the warrants
were reported paid by the state treas
urer, the accrued interest up to that
time was supposed to be paid into the
treasury. and it is on this that Ac-
countant Rowett reports an actual
shortage.
Mr.. Rowett folHd that on the war
rants that have been sold there was a
total of s14,625.s9 due in interest when
the warrants were sold, but only SILL,
S97.7S was accounted for at the time
of the sale, leaving a shortage of 81,
73111- On August 10, after Treasurer
Kelly had followed Rowett down to
Guthrie, where Rowett went to check
up this account, somebody turned into
the state treasury s1,266.34 on this Ok
lahoma interest fund. This was evil
IDENTIFY meant to apply on the shortage.
The balance of the shortage is S1,464.77. |
This is the actual shortage if it is !
admitted that Kelly had a right to sell
the warrants. Mr.. Rowett says he can
find no authority for the state treas |
urer to sell any bonds, warrants, or
any other assets in his possession. but
that is a question for the legal depart |
ment to decide. If the warrants had |
remained in the state treasury Mr.. /
Rowett estimates that the state would /
have received $19, ,SS3.36 more than it |
has received.
rants will probably be that he had to !
stamp warrants not paid for want of /
funds occasionally but this hap
pened not to exceed three months out
of the year. and as Kansas received |
six per cent on Oklahoma warrants /
and pays only four per cent on her
own, it would be a good financial deal
for Kansas to hang on to the Okla
homa warrants. Nine month out of ,
the year Kansas has several hundred !
thousand dollars lying idle in the To-
peka banks on which the state treas
urer draws an income.
Mr. RoWett'S report to Governorl
Bailey today is as follows:
The Official Report
''State of Kansas, executive depart
ment, office of state accountant.
Topeka, Kan, Nov. l. 1904 |
Nv. J. Bailey, esq. governor.
Il beg to submit to YOU my report /
of investigation into the account for
the maintenance of Oklahoma prison. 1
ers at the Kansas state penitentiary,
Lansing. from the beginning of the
account to above date.
The accounts for the main tenance |,
OF tne prisoners are made up monthly
in the office ~ the penitentiary and
forwarded to the auditor of Oklahoma
territory. at Guthrie. These accounts
are rendered solely for maintenance
and actual cash expenses. The ac-
counts when audited are passed for
payment generally in quarterl, state
ments. Warrants are then issued ana
registered in the Office at Guthrie COW
erlnE these quarterly statements
THE date of registration is the date
from winch interest at six Co per cent
DeglnS- IheSe warrants are remitted
TO the warden of the penitentiary and J
by him turned over to the state treas
urer. taking his receipt for same.
These warrants being for the face
amount of the penitentiary's bills do
not include interest on them. neither
at any time rs any interest included
in the accounts sent out from the Of
fee of the penitentiary. excepting war
rant No $3.50 for S511.7O. which in
cluded interest for S469.25 for interest
on a balance at that time
w hen there is sufficient money in ,
the treasury at Oklahoma these war |
rants are called in and interest stops
one month after said call. 1t takes
a little over two years from the date
Of the warrant until it is called in
for payment In the meantime thew
are in the custody of the state treas I
urer.
The accounts of these warrants and ]
the interest are not kept separate on {
The books of this state but are entered !
INTO the general revenue fund account. |
From the beginning of the account |
n 1892 to October Z, 1885, the warrants !
SSued up to that date We're properly |
from the treasurer at Guthrie |
together with all the interest due on 4