The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-26
SAYSIT'SCHILDISH
Governor HOch Discusses Treas
ury Examinations Again.
Neglect of Duty Won't Figure
in Bond Suit.
HE HAS MADE NONE.
Even the July and August Ex-
aminatiOns We're Neglected.
Still Insists That the Law Is a
Farce.

Governor Hoch is of the opinion that
the fact that the board of treasury ex-
aminers of which he is a member has
failed to perform the duties provided by
law and examine monthly the condition
of the state treasury, will not afford any
defense to the Kelly bondsmen in the
action started in the Shawnee county
district court Friday by Attorney Cen
eral Coleman.
Il don't think there is a court in the
land which will take into consideration
seriously the alleged defense that the
examinations of the treasury were not
made. It is too trivial and childish to
cut any figure with a court of justice
What difference would it have made
had we examined the treasury? 1t would
not have shown anything other than
what was already known; namely, that
the state money was on deposit in pri-
vate banks. This has been the custom
for years and years; out of it has come
all this train of troubles and this alleg-
ed graft in the treasurer's Office I have
no doubt that the law providing for an
examination of the state treasury was
passed in good faith. but it is an inn
practical law. 1t is physically impossi-
BILE for the governor to make such an
examination as would be of any real
value, and still perform the other duties
of his office. That is why l say that it
has been farce"
Some time ago, when the attention
of the public was directed to the fact
that the treasury examining board had
failed to make the examinations. Gov
ernor Hoch stated that it was his in
tention to make the examinations in
the future. However, the July exami-
nation was not made. and August is
drawing to close with no examina-
ton SO far Nevertheless, Governor
Hoch again stated today that he ex-
poets to make the examinations which
the law requires.
Il propose to go ahead and obey the
law, because it is the law" said Gov
ernor Hoch. "T have respect for the
law, simply because it is on the statute
books. l would not have failed to
make the treasury 4exa limitations thus
far had the fact that it was one of
my duties been brought sufficiently to
my attention.
But regardless of any examination,
the fact remains that the state treas
urer lost lot of money, and through
no fault of the state, and the bonding
company signed a bond to make good
any shortages. There is certainly
nothing in the bond which requires
other state officers to perform any
certain duties to make the bond good.
If a man gives bond that he will not
steal a horse, it does not follow that
the bond is invalid unless everybody
locks their barn DOORS"
DO not the suits filed against the
Title Guaranty & Trust company and
the ones against the bondsmen of the
bank put the state in an inconsistent
position?'' was asked of Governor Hoch.
Il have not read the petitions in the
various SUITS" said the governor, land
so [ can't express an opinion on that
subject. So far as 1 know the attitude
of the state has been consistent. The
state has tried to collect the money
from the companies without any trouble
and has given opportunity for a settle
ment, but the only way left to us was
to bring suit against the bOndSmen."
Attorney General Coleman has not
been doing much talking about the case
Even up to a late hour Friday after
noon, he absolutely refused to say
whether or not he would file the suits
that day and declined to state in what
court the suits would be brought.
II can say absolutely nothing about
it, was his reply to all questions.
After filing the suits, Mr.. Coleman left
for his home in Clay Center, where he
will spend Sunday.
The suit which has been filed is right
in line with the telegram which was
sent to the Title Guaranty & Trust COM
pany day or two after the failure of
the First National. This telegram was
as follows:
1.-The state treasurer of Kansas, for
whom your company is surety for u
million dollars, has $547,0 wrongfully
deposited in a suspended bank and is
therefore short that amount. You are
advised that the state looks to you
forthwith to make good to the treasury
the amount of your guaranty bond. The
business admits of no delay. Upon
statement you will be subrogated to
whatever rights and securities the state
may have against the failed bank and
its secureties Communicate with me
forthwith in regard to how and where
adjustment shall be made. expect an
SWer by wire tomorrow.
&c. c. COLEMAN,
Attorney General