The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-25

! vided by law At that time the limit
was 10 per cent of the assessed valu-
alton, and it was raised shortly after
wards by the legislature to ) per cent.
Mr.. Kelly tries to start a mystery
| by stating that the certificate of valu-
alton from the city clerk, which should
have been filed in the auditors office
with the proceedings showing how the
bonds were issued, is missing from the
auditors office. AS a matter of fact
such certificates are not required, as
the county clerk showing all valua-
tionS in his county, and the record of
the county clerk is followed.
Mr.. Kelly further says that the
bonds were registered on January Z,
1908, but were not delivered to him
until January Is, and then there was
one coupon clipped from each bond.
Kelly explains how this must neces-
sarily have been so because the audi
tors office failed to stamp this cou-
pom, which was No. 1, as the property
of the state. These are the coupons
which Mr.. Kelly sent to the fiscal
agency in New York, with a personal
letter asking that the money for them
be sent to him personally, which was
done.
Kelly's object is, of course, simply to
divert attention from himself and the
main issue, which is that he had pos
session of that clipped coupon, that he
received the money for it and that he
has never been able to show that it
ever passed to anyone else.
Incidentally there is an error in
kelly's statement: There were two cou-
pons clipped from each bond which
were not stamped as the property of
the state. Both of them therefore must
have been clipped before the bonds and
coupons were stamped. Not only was
the first coupon in Kelly's possession
and collected by him personally, and
the proceeds kept out of the state treas
ury by him until mysteriouSIy returned
by "A. R. Brown" but the second cou-
ole ~, hi
lected by him. This is a matter upon
which Mr.. Kelly has been very silent.
This second coupon was due on jan
uary l, 1904. 1t was collected shortly
after that and the money was turned
into the state treasury.
1t may not have been right for the
old school fund commission to have
purchased these Garden City bonds
That was matter for the attorney
general at the time to look up and pass
upon. But that is not the issue in the
present case None of the old school
fund commissioners is asking anything
from the people of Kansas. What they
may have done can be developed later
I. T. Kelly is the man who is now ask
ing the people of Kansas to trust him
for another two years to handle the
money which comes into the state treas
ury, amounting to about three millions
of dollars a year, and to keep the school
funds of the state, which amount to
seven or eight millions more. Mr.. Kelly
y
during which time the state account
ants have uncovered shortages amount
ing to thousands of dollars in just the
few counties they have thus far investi-
gated. For two years more Kelly has
been state treasurer, and positive proof
has been produced that he personally
collected 81, 402. so due the state but
which he kept out of the treasury for
more than year until the state ac-
countant began to look into the mat
ter, and then the money was myster-
iousiy sent TO Roy Richey by "A. r.
Brown
Sworn testimony has also been pro-
duced that Kelly recently "accommo-
dated" a bond broker by lOaning him
$123,000 of the states money for six
teen days to enable the broker TO
carry through the Infamous Comanche
county bond deal.
The issue in which the people of
Kansas are interested is, shall T. T.
Kelly be entrusted with the millions
of dollars of state funds for another
two years in view of the absolute
proof that he has abused his trust in
the past, embezzling the states money
and using it for the profit of himself
and his friends?
Mr.. Kelly's attempt to raise other
questions to divert attention from him
self ought not to cloud this main
issue.
H. P. Dillon on Monday wrote a let
accountant make an investigation of
the state treasury. 1t has been stated
that Kelly's friends had already decid-
ed upon a firm of Chicago accountants
to conduct the investigation. but Mr..
Dillon says that he will select the ac-
countant. His letter to Kelly is as
follows:
Dear Sir: Your letter of October
21 inelosing resignation of office of
state treasurer, subject to the condi-
tions of said letter, has been received.
Had been consulted in regard to this
matter previously to my selection 1
would have absolutely declined to ac-
cept the responsibility. AS you know,
my first intimation of the selection was
gained from the newspapers In view
of the complications which might en-
sue from a declination after the matter
has reached this stage.'I unwillingIy
agree to act in accordance with the
request contained in your letter.
81 will take immediate steps to ap-
point an expert accountant for the
purpose of making the investigation
requested. AS soon as have selected
the accountant and learned the prob
able expense of such investigation I
will ask you to deposit with me a suff1-
cient sum to cover the same. Yours !