The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-31
KELLY BACKS OUT
He Won't Pay Back the 81, 900
Used for Bond.
Now Asserts That His Action
Was Proper.
COLEMAN'S TELEGRAM.
Told Bonding Company to Make
Shortage Good.
Attorneys Ask Him to Be More
Specific.
WHAT MR.. ROYCE SAID.
Governors Next Friend Discuss
es Kelly Situation.
Says Plan of Action Against
Treasurer Agreed Upon.
WHAT MR.. ROYCE SAID.
Eoyernor's Next Friend Discuss
es Kelly Situation.
SAYS Plan of Action Against
Treasurer Agreed Upon.

There is but one construction to
place upon a statement made by State
Treasurer T. T. Kelly this morning,
and that is that he has changed his
mind and will not give back the 81
600 to the state which he took, be-
cause the law says he shall be allowed
that much in case he gives surety
bond
Last Wednesday Governor Hoch
called Kelly on the carpet in his pri-
waite Office and demanded that he re-
turn the money to the state treasury.
Kelly practically told his chief he
would do so.
Have you put the money back?"
was asked of Kelly this morning.
"The law is plain on the subject"
he replied with a smirk. ''I used that
money for the purpose for which it
was appropriated
= Then you do not intend to return
ftp
"I used it for what it was appro-
priated."
But you gave a personal and not
a surety bond and the law specifically
prescribes that only in case you give
the latter kind of bond shall you
use the $4,000 or such part of it as is
necessary was said.
Il used the money for what it was
appropriated" answered Kelly again
with an insinuating smile.
There is no receipt of its return
in the auditors office, and therefore
for the present the only way it car be
known whether you will return it or
not is from q statement from your
self"
Il have used the money for the
purpose for which it was appropri-
ated, said Kelly once more, this time
with an elaborate grin, a turn on his
heel and a conclusion of the inter
view.
That is evidently KelIy's attitude in
the matter and within the next few
days q rattling of bones may emanate
from the state house. Governor Hoch
was almost furious when he heard
that Kelly took this $4,000. But for
the intervention of his advisors who
counselled delay, Kelly might be now
under arrest for the act.
The governor framed a letter to
Kelly, one of his caustic characteristic
ones, demanding that the money be put
back This was never sent to Kelly,
also, per counselled delay
Hoch will be back in Topeka on
Tuesday from his trip to Marion. 1t
was understood by him that when he
left on Saturday that Kelly would give
back the $4,000, but the attitude which
lnG treasurer assumes InlS morning,
cannot be construed in that way at all
and can be understood as nothing else
than refusal on his part. So there
IS very apt to be another roundup on
Tuesday between Hoch and Kelly.
The former went after his treasurer
with pointed stick last Wednesday.
ANY school child he declared,
would understand that law. 1t does
not take a great amount of mental
acumen to realize what it means.
insist that YOU put it back
In half-hearted way Kelly is said
to have replied to the governor; ''Well,
II | have no right to it, why then it
will be returned"
But the days since then must have
caused Kelly to change his mind. He
evidently intends to hang on to the
$1,000 unless the big stick is brought
into play mighty hard "I have used
that money for the purpose for which
it was appropriated was his only an
sWer.
And what does the law say? 1t is
plain and to the point. 1t specifically
states that the treasury may spend
$4,000 of the states money to give a
bond in case it is a surety bond. But
1t does not say that the treasurer shall
use the $4,000, regardless of the kind
of bond he gives That was the point
over which the governor was angered
and this last attitude of Kelly's NAV
cause him to break loose from his ad-
visers and take the reins in his own
hand.
Coleman's Telegram.
Three weeks ago c. c. Coleman. at
tGrney general, charged over his sig
nature that State Treasurer Kelly is
short in his accounts. The charge was
made concerning the surety bond given
by the Title Guaranty and Trust COM
pany of Scranton, Pa
At that time Mr.. Coleman sent the
following telegram to this company:
The state treasurer of Kansas, fol
whom your company is surety for Il
million dollars, has S547, 900 wrongfully
deposited in suspended bank and is
therefore short that amount You are
advised that the state looks to vor
forthwith to make good to the treasIIr
the amount of your guaranty bond. Thf
business admits of no delav TTDor
statement you will be subrogated r.
whatever rights and securities the STATE
may have against the failed bank anf
Its sureties Communicate with ms
forthwith in regard to how and wher,
adjustment shall be made. expect an.
swer by wire tomorrow
<si"C. c. COLEMAN, Attorney General
The question naturally arises there.
from, rs Kelly to be prosecuted ?'i or i,
1t simply the plan to have the surety
company make good whatever the stat
may lose through the First Nationa
bank failure. In answer to the teIe
gram Robert Dunlap of Chicago AM
Eugene Hagan of Topeka wrote Mr.
Coleman a letter in which they wanted
to have answered these three questions