The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-11-04
KELLY PAID IT.
Turns in 81, 200 as Payment
ON Oklahoma Warrants.
His Accountant Attempts to
FOrestall Mr.. ROwett.
That Official Says He Will Soon
Make a Report.

State Accountant Rowett is now at
work on the Oklahoma warrant matter,
or, rather, on the interest on Oklahoma
warrants To forestall any shortages
which Mr.. Rowett may find, State
Treasurer KelIy's organ this morning
published statement that H. E. Pat
terson, Kelly's private accountant, dis
covered a shortage of 81, 1894 in this
interest account which Rowett had not
discovered.
Accountant Rowett has not yet COM
pleted his work. He began to check
UP the Oklahoma business last July,
but when J. D. Buckingham arrived on
August Is Governor Bailey gave in
structions that they find out the condi-
ton of the permanent school fund
first. The permanent school fund ac-
counts of twenty-six counties were re-
ported on last Saturday, and since then
Mr.. Rowett has been finishing up his
work on the OklahoIQa warrant account
He says he will report to Governor
Bailey as soon as his report is ready.
Governor Bailey returned from Indiana
this afternoon.
Oklahoma keeps its prisoners in the
Kansas penitentiary, and every month
the warden sends Oklahoma a state
ment of the amount due. Kansas on this
prison contract. Oklahoma issues war
is from two to three years behind with
its finances, the warrants are not paid
for a good while. In the meantime
they bear interest at the rate of per
cent and this interest amounts to
large sum in the course of a year or
two.
The Topeka Capital. publishes the
following about the Oklahoma war;
rant fund:
THE total amount of warrants col
lected from October z, 1896, to the
present time is $226,73S.73- The total
amount of interest earned from date
of each warrant to date of its pay
ment to the state treasurer is $13.-
64S.26. There were errors in compu-
tation of interest due in 1900 and 1901,
amounting to $2.729.34 On March
IA. 1904, this sum of $2,729.S4 was re-
ceipted for. Just prior to that time
c. r. Richey, assistant state treasurer,
was in Oklahoma checking up these
accounts. The records do not show
who paid in the $2,729.34. Treasurer
Kelly says he knew nothing about the
item till his attention was called to
it by Patterson, after Richey had re-
signed.
'Rowett checked up these accounts
in the state house, at the penitentiary
and at Guthrie, Okla, but did not re-
port the irregularity- The error oc-
CURED in Grimes time. but the money
was paid in the second year of Kelly's
time. long before Rowett started on
his hunt for Kelly's scalp
The Capital says, the records do
not show who paid in the 81. 729. "a"
This is probably true In fact there
is no record in the auditors office,
where all such records are kept. that
ever paid in any such amount
as the Capital refers to. A State Jour
nal reporter today made inquiries in
the auditors office concerning the date
of the payment of this shortage of 81
729. a. The statement given aboN
would indicate that it was on March
IA, but the auditors office shows no !
such payment or receipts, either on |
March IA, or for two or three months |
before or after that date In fact, no |
such payment has ever been reported |
to the aditor'S soffice
But on August 10 last lust a few
days after Accountant Rowett went to |
Guthrie and secured a transcript of the |
books down there showing the pay
nent of warrants and interest to KAN |
sas, T. T. Kelly turned into the state |
$1,266.34 as interest on Okla |
1oma warrants. There seemed to be |
no reason for it at that time. The war
rant that Mr.. Kelly reported paid at |
the same time was for only $4,1016O, on |
which the interest would have been /
only a few dollars, it had run only !
L short time. Why Mr.. Kelly turned |
n this large amount of interest just af- |
-er Mr.. Rowett's trip to Guthrie has |
not yet been explained.
There seems to be something back of /
he Oklahoma warrant business that |
De discovered Treasurer Kelly has been /
speculating in these Oklahoma war
ants. It is said that Oklahoma war
rants which, bear s per cent interest
are, worth premium. They run at |
east two years and many of them
more than that For instance the last
that has been paid by Okla
loma was ISSUED in August, 1902.
But Kansas does not hold them that
ong. When Treasurer Kelly accumu-
ates a few thousand dollars worth of !
hese warrants he sells them to some
1ank 1t is said that banks are glad
% pay a premium in order to get them.
Fhe treasurer reports the mouey paid,
put he accounts for the face of the
and says nothing about any
premium. At one time last spring Mr..
Kelly disposed of nearly $4,000 worth
If Oklahoma warrants. The state is
to get the s per cent interest
Up to the time the warrants are sold
out no record is made of the premium.
What Mr.. Rowett is now working on
s to see if the state has received all
he interest it is entitled to up to the
ime the various warrants We're sold
md the cash turned into the treasury