The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-10
Startling Revelations Made by
the Official Accountant.
Thousands of Dollars Shortage
in the Accounts.
THIS IN IL COUNTIES.
Only Ones That Have Been In
Vestigated by ROwett.
Shortages Nearly All i'm the In
tersst Funds.
NOT ACCOUNTED FOR.
Records Show Money Was Paid
into Treasury.
Over $4,000 Paid Back Since
the Investigation.
Eleven Hundred of This Short
Four Years Till Now.
NOT ACCOUNTED FOR.
Records Show Money Was Paid
into Treasury.
Over $4,000 Paid Back Since
the Investigation.
Eleven Hundred of This Short
Four Years Till Now.

nounced today noon when Governor
Bailey made public the official report
of the state accountant covering an
examination of the state treasurer's
and the public school fund accounts.
The report says: ''This examination
has developed shortages, Irregularities
and discrepancies amounting to many
thousands of dollars in the twelve
counties examined. In my judgment
the same conditions existing in the
twelve counties investigated will be
found in the remaining counties of the
state, not only in the permanent school
fund, but in the normal and agricuI-
turaI funds"
Governor Bailey has placed all the in
formation he has received in the hands
of Attorney General Coleman for ac-
tion, but what action will be taken he
does not say. The regular procedure
would be a suit against the state treas
urer and his bondsmen for the amount
of the shortage, followed by criminal
proceedings as soon as the responsible
ity for the shortages is fixed.
The report says that some of the rec
ords have been kept from the account
ants In one record a number of pages
had been cut out
Within the last few weeks several of
the shortages have mysteriously been
made good and covered into the treas
ury in a secret manner.
The two instances in which the
money has been paid back involve in
terest payments on Garden City bonds
Tr ~
stances the money has been credited
on the state treasurer's books since
Mr.. Rowett began his investigation.
In one instance $1,402.50 of interest on
$66.0O0 bonds was paid by the city
of Garden City to the state fiscal
agency in New York on August 8,
1903, and a receipt was issued by the
state treasurer's office. On August 26,
1904. over a year later, it was entered
in the state treasurer's books here
after the accountants began their in
vestigation-
The other instance in which the
money has been paid back dates back
to Treasurer Grimes administration,
when T. T. Kelly. the present state
treasurer. was assistant treasurer.
over four years ago the city of Abb
lene paid $1,175 interest on bonds
q.
payment was made direct to the state
treasurer and was receipted for by the
treasurer on July 2, 1900. No record
was made of it on the treasurer's
books until September Z, 1904 just a
month ago.
]. B. buckingham, of the Edward +.
Moxey Audit company. has been work.
ing with State Accountant Rowett in
his investigation for several weeks.
When it became evident what great
task it would be to make the investi-'
cation and that it would probably show
a shortage. Governor Bailey tried to
get E. P. Moxey himself, who is recog-
nized as perhaps the best accountant
in the country for this kind of work
to work with MIR. Rowett but Mr..
Moxey was unable to devote his atten-
tion personally to the work. Instead he
brought Mr.. Buckingham, of his COM
pany, to Topeka, and after looking over
the records, stated that he would sign
any report Mr. Buckingham might
make. Mr.. Buckingham joins Mr.
Rowett in signing the report.
The Accountants Report.
The general report of the account
ants. which Governor Bailey makes
public today is as follows:
Topeka. Kan, Oct 4, 1904.
Hon. w. J. Bailey. Governor.
-'Sir:-AS per your instructions
have examined the records of the bond
and interest (coupon) account of the
permanent school fund pertaining to
twelve Q2) counties from January /.
1898. to September Is. 1904.
ITO make a thorough examination
covering this period for each of the 1O5
counties in the state, would entail a
large amount OF labor and require con-
siderably more time than could at the
present devote to that purpose: there
fore, I selected twelve Q2) counties.
which I consider a very fair average
and representation of all the counties
of this state.
I'm making this examination, all the
books and papers available and relat-
ing to these accounts, in the offices of
the s1Iperintendent of nuhlfc instruc-l