The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-01-18
1T is NOT THERE.
Money Paid to the State for In
terest Due
And Belonging to the Schools OF
Kansas
VOT In THE FUND.
Proven That Treasury Received
Money Now Missing.
What Is the State Going to Do
About 1t!

There is certainly little more import
ant demanding the prompt, careful and
delsberate investigation and action OF
the legislature than the condition OF the
state school fund of Kansas as set
forth in the reports Of the state ac-
countant
The office OF state accountant was
treated by a previous legislature Tor
the purpose Of examining and checking
ahe states accounts. During the last
six months this official. in connection
with one of the most prominent auoll-
ing companies in the United States the
same firm employed by the United
STATES government in probing postal
frauds. has examined and reported on
the condition OF the state school fund
Of Kansas for the last six years from
January /, 1898. to November 80. 1904.
Several ofthese reports have been made
public. They show gross irregularities
IN the purchase and handling of school
bonds They show that large sums of
money have been paid into the school
FUND and are not there. They show
that other large sums should have been
paid into the state treasury as interest
on bonds owned by the fund. but with
these amounts unaccounted for.
These reports also show, as already
published. the payment of several large
sums of money into the treasury during
the past six months, and not before ac-
counted for, after the attention Of the
state treasurer's Office had been called
TO the deficits or after the examination
had begun
The complete report, going into ex-
tensive details and reciting the partic-
uIars Of scores of transactions involving
irregularities and shortages, was filed
by the state accountant with Governor
Bailey about two weeks previous to the
latters retirement from Office.
This report, covering the entire exam
ination OF the one fund in hfty-one
counties and signed by the state &C
countant and by the Edward 2. Moxey
Auditing company, was turned over to
Governor Hoch by Governor Bailey and
a complete copy of it also placed in the
hands of Attorney General Coleman
This report is available on demand
by the senate and house OF represent
atives.
This report, it may be asserted
shows a discrepancy of about S40,0O0
unaccounted for in the school fund.
Of this $4,000 a portion is un-
doubtedly to be explained by the alb
straction, legally or illegally, of GER
tain interest coupons due and payable
after the bonds were acquired by the
state.
OF this $4,000, $4,000, according
to the records, was never paid into the
treasury of Kansas, although some of
the interest coupons covering this
$4,000 have been found stamped as
property of the state.
.
which has been paid to the state treas
urer, or collected for him by the fiscal
agency of New York. and which is not
now and never has been in the school
fund
In addition to the amounts given
above and already made public. an
aggregate of s2,577 was mysteriously
turned into the treasury within the
last six months, and while the investi-
cation was going on.
OF this S2,577, $1,4O2.50 came from
the unknown A R. Brown by a draft
mailed to the state treasurer in Au-
gust last, and covering a payment
made to the state treasurer by Garden
City in August. 1903, but never ac-
counted for until a year later.
The remainder of the money mys-
teriously returned is an item of S1175
RENTED by the treasurer of the city
of Abilene to the state treasurer of
Kansas in July. 1900, but not account
ed for in the state treasury until last
September. This refund was made
apparently by the proceeds of note
given in September. 1904. to F. E.
Grimes by c. r. Richey, for some
years and until recently connected
with the state treasury. On the back
,F
ment of 1891, just one-third of the
face
In none Of these cases has the state
begun legal action toward the recov-
cry of the money or the punishment
of any guilt connected with the af-
fairs.
Provision for the future safe guard
ing of the funds by proper and efa-
cient bookkeeping and legal records
is necessary.