The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-16
HERE'S A MESS.
How the State Didn't Save
Money by Deal.
Treasurer kelly's Lyon County
Plan Grows Interesting.
EXPLANATION A FAKE
Normal Warrants Stamped "Not
Paid for Want of Funds"
Given Out That Money Was Kept
to Prevent This.
EXPLANATION A FAKE

Just why such f1imsy excuse should
nave peen devised for keeping the state
taxes due the state from Lyon county
~ Enporla instead of sending them to
the state treasury as provided by law.
Is hard to imagine. The Emporia coun-
" OFFICIALS claim the money was kept
tnere, by an agreement with State
treasurer Kelly, for the purpose of
taking up warrants issued to State
Normal people, so that they would not
be stamped mot paid for want of
1unds.' They claim that the state was
therefore saved money, because it did
not have to pay interest on these war
rants.
The records in the state auditors
ofrlce show that these same State Nor
maj warrants were stamped not paid
Tor want of funds and that the state
Palo interest on them during the time
the state treasury was out of funds
According to the statement of the
Enpor1a Republican, published in the
state journal yesterday, the arrange
nent between State Treasurer Kelly
ana county Treasurer EaStin of I,yon
county was made last November The
warrants for paying the teachers at the
state Normal for the month of October
We're issued November 10, 1908. An ex-
animation of the cancelled warrants
themselves on file in the auditors office
SHOWS that they were stamped not paid
Tor want of funds, and the stamp is
dated November IL, 1908, in most cases.
Warrants so stamped begin to draw in
terest from the date of this stamp
When the state treasurer believes he
VIII be able to take up these outstand-
ing warrants he publishes a notice to
tnat effect, and the interest stops ON
the date named in the notice
The person to whom a state warrant
Is issued rarely bothers about the in
terest on it. When he wants his money
he takes it to a bank and deposits ii
or cashes it. That bank in turn sends
1t in to Topeka bank and it is gen
orally the Topeka bank that gets the
because the warrants come in
here in suffi.ien numbers to paw them
to do so. The warrants are presented
to the state treasurer and if he has no
money with which to pay them, they
are stamped not paid for want of funds
and begin to draw interest from that
date. The interest is now four per cent
1t was formerly six per cent and banks
were very anxious to get hold of the
warrants. The warrant bears interest
until it is cashed or. until the date
named in the state treasurer's notice
on which warrants can be caSned.
Here is a sample of the history of
the State Normal warrants. This one
was drawn in favor of A. S. Newman
on November 10. 1908, and is for S125.
The warrants for each months pay
ment for each state institution are sent
to that institution in a bunch and dis
bursed from there. Here is the history
of Mr.. Newman's warrant:
Issued November 10. 1908
Stamped not paid for want of funds, |
II, 1903.
Endorsed on back by Mr.. Newman, |
Endorsed on back by Enporia Ma |
tional bank, December 2, 1903.
Endorsed on back by Central Nation |
al bank of Topeka. December 5, 1903.
Stamped on back, paid, by Central
National bank, January 90 1904
Stamped on face, paid, by state treas
urer January 81, 1904.
~ Interest on warrant, LOO.
Cancelled warrant returned to audi |
tors office. January go 1904.
The most of the State Normal war
rants were casned or deposited in the |
Citizens National bank of Emporia, |
give date to show when they were
sent to Topeka
The warrants to pay for the month of !
were issued on December 5. |
All of these, so far as the cancelled |
were examined, were also |
not paid for want of funds a
lay or two after they were issued and !
1rew interest until January 81, 1904.
The next State Normal warrants is
sued were on January 13. 1904, and by
that time the state treasury mad an
abundance of money on nand and all
warrants were promptly paid onpresen-
ation as the mot paid for want of
,unds'' stamp had been laid away.
Therefore if any Lyon county state
taxes were used to take up State Nor
nal warrants during the time warrants
we've being stamped not paid for want
Of funds. the party who got the interest
simply drew interest on the states own
money.
The agreement between State
Treasurer Kelly and County Treasurer
Eastin whereby the Lyoncounty money |
was kept out of the state treasury.
s3S. 900 for at least six months, in order
20 save the state money" grows more
and more complicated. The only person
ia BILE under the law. so far is appar-
mt. is the country treasurer. The law
says that he shall forfeit to the state
-en per cent of what state money he
lad on hand on January and failed to
send in by January 20; and it further
specifies that he shall forfeit his office
md be guilty of embezzlement because
he did not remit the money within tnir-
v days from January 10. But there
seems to be a possibility that the coun-
Y treasurer was deceived in this mat
ter himself.