The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-15
Reported That Companies Have
Turned Kelly Down.
Say They Don't Care to Take
the Risk.
HE ENTERS A DENIAL.
Bond Will Be Furnished He
Says.
Hoch's Attitude Is Again Being
Criticised.


There is said to be a sort of COM
bfnation on foot which may cause State
Treasurer Tom Kelly considerable trou-
BILE in getting his new $750,000 bond. A
Topeka man who is more or less mixed
up in the bonding company business
says that all the leading companies
have reached an understanding that it
will be unsafe to violate their rules ana
issue bond to man in the middle OF
his term of office. This is the reason
which they will give for their action, II
is said.
A Wichita dispatch states that the
Fidelity and Casualty company of Bal
timore has refused to go on the bond
for the $780, 900 for which Kelly applied.
Mr.. Kelly was in Wichita a few days
ago for the purpose of making applica-
tion through the Wichita agent OF the
company for the $250,000.
Mr.. Kelly still insists, however, tnat
there will not be the slightest trouble
about having his bond ready by July 20.
81 don't know anything about thls
Wichita story he said this morning TO
a State Journal reporter 1t makes no
difference to me however, WnetheI TINS
company goes on the bond or not There
will be no trouble about getting the
bond filed up
Does this action of the Fidelity and
Casualty company indicate that an
agreement has been made by all the
bonding companies not to go on your
bond?'
"No, nothing like that" replied Mr..
Kelly zone can't do much through
these local representatives. The
most satisfactory way is to TAX 10
the general agents. for you can then
give q better understanding OF the
conditions. There is no trouble about
getting bond when the conditions ex-
isting here are understood by the gen.
eral agents"
One of the Topeka agents of lead
ing bonding company said this morn
ing 81 don't know what my COM
pany will do about the Kelly matter.
I offered to get them share OF the
bond, and they advanced two objec-
tons In my opinion, Mr. Kelly has
answered both of these objections,
But / don't know what the company
will do. I consider that Kelly viii be
a good risk under this new law. But
all this talk about him has hurt him,
and a bonding company does not like
to step in and take up a man in the
middle of his term for fear some OF
his former acts may be checked up
Go them for settlement
Might Block the Whole Game.
If Treasurer Kelly. is unable to get
the bond, it lies within his power to
block the whole operation of the state
depository law, and tie the finances
of the state up into hard knot.
The depository law says before any
notice shall have been given for receiv-
ing proposals or any other steps taken
hereunder, the state treasurer shall give
another bond in an amount to be fixed
by the governor"
If the state treasurer should simply
refuse to give the new bond, the state
could not put the state depository law
into operation, or take the first step
toward putting it into operation. The
treasurer must first give the bond.
OF course if the treasurer should re-
fuse to give the bond, the governor
would doubtless attempt to act under
Sec. Is which gives him authority to de-
clare the treasurer's office vacated and
appoint some one to fill the vacancy, in
case no bond is furnished. Treasurer
Kelly would refuse to give up the office,
and the result would be a litigation
which would probably last we'll toward
the close of term of office. Kelly insists
that the provision of the new law which
gives the governor the right to declare
his office vacated for failure to give the
bond is entirely imperative in his case,
because he was elected and gave bond
previously under the old law. There
are lawyers who think Kelly is right
about this, and would have a fighting
chance in the courts. At least he could
hang to the office for a considerable
period. and meartime, the state would
be completely strapped for cash. It
would have no money from the old
funds, and the new funds would all be
tied up in the county repositories under
the state depository law.
Hoch's Action Criticised.
The attitude which Governor Hoch
has assumed as Interpreter of the law
is being criticised considerably. Gov
ernor Hoch has told the agents of the
bonding companies that the new $780,
IL [.T-, rnGcr,r EE--
depository law goes into effect about
Sept. 1. This relieves these bonding
companies of all responsibility for
Kelly's acts between July and Septem-
ber. in spite of the fact that Kelly ex-
poets to give his bond and have it ap-
proved in July.
what was the object" said a stat
official today, ito put it in the law that
the bond must be given and approved
within 20 days, and before any steps
are taken under the law, unless it was
to have the bond go into effect imme-
diateIy after it's approval? It IS alb
surd to say that the bond does not go
into effect until Sept. l. 1t should go
into effect Immediately on approval
by the executive council.
"Hoch has yielded the only point
upon which he had a chance to make
it hard for Kelly to get bond. For any
liza bility of the state treasurer after
the depository law is in effect $4,000
would be an ample bond Requiring a
bond of s750,000 after the law goes
snto effect is absurd. OF course it
makes no difference to Kelly. because
the state pays for the bond