The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-12

expended more than is appropriated
for these two purposes.
The legislature of 1908 appropriated
$500 to the auditors office for assist
ants in making up the railroad, tele-
graph and telephone assessments. On
January s, 1904, a voucher was filed by
James M. Nation for $500, and on April
4, 1904, a voucher was filed by James
NJ. Nation for $500 against that appro-
priation.'
With reference to the regents and
loan commissioners of the State Agri-
cultural college, Kelly presents a table
claiming that the commissioners have
followed the practice of allowing bond
holders to clip coupons from the bonds
in order to bring them down to a value
at which they could be bought at par.
In one case, he charges that war
rant was drawn in favor of the city of
Pawnee, Ok, for $1,010 to cover a pre-
MUM of IL per cent, paid for $4,000
issue of Pawnee bonds 1t is stated
that the commissioners are expressly
forbidden by law to pay more than par
for bonds purchased on account of the
school fund. This table covers the pur-
chase of bonds aggregating $121,O00. A
total of 81 $50 worth of coupons were
clipped from these bonds at the time
of their purchase according to Kelly s
allegation
Kelly Fiscal Agency Plans.
Since the exposure of the defalcations
in the state treasury and the fact that
are not accounted for passed through
the states fiscal agency in New York
before being receipted for by the state
treasu rer some of the members of the
Treasurer Kelly was anxious to get
through the legislature. They think
they see the import of it now.
The bill was introduced by Kellys
senator, F. w. Sponable, in the senate,
and provided that the state treasurer
should name the states fiscal agent in
New York and also one in Kansas.
HERETOFORE governor, secretary of state
fiscal agency in New York, but Kelly
wanted it changed so that he should
select the agency. There has never been
a fiscal agency in Kansas.
The object of having a fiscal agency
in New York is to enable eastern hold
ers of Kansas bonds to collect their
money there. Many Kansas bonds are
made payable either at the fiscal
agency or at the state treasury. The
municipality owing them sends its
money to the bank which is selected as
the states fiscal agent in New York
and eastern bondholders send their cou-
pons and bonds there for collection.
There is always several thousand dol
lars balance due the state in the fiscal
agency on which the agency pays in
terest to the state. The opportunity to
be the states fiscal agent is eagerly
sought by New York banks
Sponable and Kelly got the bill au-
thorizing Kelly to name the New York
fiscal agent and also one in Kansas
through the senate, but it did not pass
the house Kelly personally solicited
Speaker Pringle to help him get 1T
passed. 1t was supposed at the time
that it was only for the purpose of
getting a comparatively small rake-off
out of giving the fiscal agency to some
specific bank but it is now believed
that Mr. Kelly had other things in mind
in desiring to control the fiscal agency
ole ia n a
Kansas.
The Sponable bill was senate bill No
1876, and the title of it read as follows:
''An act to authorize the treasurer of
the state to designate state fiscal
agency in the city of New York for the
state of Kansas, and to amend sections
1 and of chapter rs of the laws of
1874 and to repeal said original section
of said act, to repeal all laws or parts
of laws in conflict with this act and for
other n1IrnnSaS-''