The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-11
Reaping the Whirlwind.

CFrom the Miami Republican,
That is what Kansas is doing now
as a result of the Devlin disaster in
Topeka. Kansas deliberately sowed
the seed that resulted in the deposit in
violation of law of more than half a
million of dollars of public funds in
the First National bank of Topeka,
which has closed its doors because of
the failure of its principal stockholder
and chief debtor, G. J. Devlin, and is
now busy harvesting the crop. The
failure is the most disastrous that has
ever occurred in Kansas, and affects
not only the Devlin interests and the
individuals and institutions Immediate
ly concerned, but the politics of the
state is involved and the result depends
upon the integrity of the state admin
istration and its courage and skill to
confront critical situation. The peo-
pie will stand no further tempor1zlng
or evasion. Governor Hoch must do
his duty in taking immediate and de-
| than that of self-protection.
Mr.. Devlin qualified on the bond of
State Treasurer Kelly for half a mil
lion dollars and Leavenworth man
named Thomas for $4,000. The lat
ter is more or less involved in the Dew
lin failure, so we are advised. me
! balance of the bond, half million dol
| lars is made up by a guaranty bond
company of Pennsylvania. This COM
pany may be good or it may not. NO
body in Kansas seems to know much
about it. Mr.. Devlin, however, was
playing a safe game in qualifying as
bondsman. with $4,000 of state
funds on deposit in his bank, he was
certain to make UP as banker what he
stood to lose as bondsman.
The state treasurer explains that the
deposit of state funds in the Devlin
| bank is due to drafts placed there for
| collection on, account of remittances
for state taxes and is therefore a pre-
ferred claim. AS there are virtually
~ h0naa M Ta111iffQnHPS
| of state taxes between April and July
1, another explanation is due. That
the state will not be a preferred cred
itor is a certainty that cannot be con-
| troverted. The state deposit was there
in violation of state law whcih defines
| the crime as embezzlement and pre-
scribes the penalty accordingly, which
includes a forfeiture of office. Whether
or not the state treasurer received in
terest on his deposits in this bank will
be developed by the national bank ex-
aminer, who is in charge of its bust
ness. Should it develop that he has
received such interest, it will constitute
| the crime of felony under the state
| law.
The state treasurer has about half a
million on deposit in other Topeka
around in the banks at Kansas City,
Kan, Wichita and Hutchinson. He
denies positively that he has ever col
lected interest on this money, yet it is
q We'll knOWH IdCl Itidl ne has anu II
will no longer be possible to hide the
truth.
! A depIorable condition of affairs
confronts the state of Kansas and the
Republican party of this state. 1t is a
prophecy fulfilled so far as the Re-
publican and the people of Miami
county are concerned. This county
gave ample warning of what would
follow the election of the present state
treasurer. The state cannot shake its
e1nntv treasury at this county and say
she did it. The election returns re-
llieve us of that responsibility and the
balance of the state should relieve this
county of her proportionate share of
the loss in state funds caused by the
4 Devlin disaster.
AS an object lesson in bad banking
and reckless official conduct, this To-
peka wreck is complete.