The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-06
THAT STATE BOND
First National Filed One to Pro-
tect Kansas.
Was Signed by officers of the
Bank.
MR.. MORGAN is HERE.
Representative of Surety Com
pany in Topeka.
On Treasurer Kelly's Bond For
Half Million.
WHAT MARTIN DID.
Found That State Money Was
Left in New York.
Forced Treasurer to Take 1t
Out at Once.

Under the law providing for the
use of Topeka banks for the colIec-
ton of drafts for the state. it was re-
quired that the bank or banks getting
the business should give security to
the state to be approved by the ex-
ecutive council
For two years, the United States
Fidelity and Guaranty company,
thoroughly reliable concern. was on
the First National Banks bond for
the safe keeping of the state funds
accruing through the collection of
drafts The amount of the bond was
S25O,00O. The bond was first given
on Jan. 20, 1903, and was renewed
on Jan. 20, 1904, making it good un-
til Jan. 20, 1905. The bank paid $625
annual premium on this bond.
Thus the Fidelity company bond
expired last January, and has not
been renewed.
Some think that under this expired
bond, the bank can be held liable for
the money it had in its possession on
January 20. It is doubtful.
Aside from this bond, however a per-
sonal bond for 100000 was given by c.
]. Devlin, A. E. Noel, VIM. Sims and
w. H. Rossington, all connected with
the First National bank. That bond
was given in 1908, and seems to be
drawn to run indefinitely. However,
if the bank fails to pay out these men
will lose all they have before this old
bond gets its turn at a settlement.
Jacques L. Morgan, of Kansas City,
the man who wrote Kelly's $500, 900
bond in the Title Guaranty & Trust
company, is in Topeka today, looking
No r~Fkn
show that either of the old First Ma
tional bank bonds are good, it will
doubtless relieve his company from
paying some or all of the $500, 900 for
which it is likely to become liable.
A dispatch from Princeton Ill. states
that deeds have been recorded there
transferring to Mrs. Devlin $125.0
worth of farm land in Bureau county,
Illinois. The deeds were executed sew
eral years ago by G. J. Devlin, and
passed through the name of the wife's
father, now dead. They had never been
filed. 1t is said that Mr.. Devlin bought
the land while he was general man
ager of the Spring Valley Coal COMPANY
Michael Barton vice president If tSe
Spring Valley bank, which closed yes
terday, has come to Topeka to confer
with Mr.. Devlin, who was president of
the bank, and its chief owner.
Why Hamilton Resigned
When James Hamilton was treasur-
er of the state of Kansas, he had some
trouble with the state funds which
eliminated in his resignation under
fire" The only difference seems to be
that Hamiltons mistakes or dishonesty
was not of such an expensive charac-
ter as those of T. T. Kelly, and further
that there was a different kind of
man in the governors chair.
One of the things which happened
during Hamilton's administration was
this: Governor Martin discovered
through his examination of the state
treasury which Governor Hoch says is
farce, that the daily balances in
the state fiscal agency in New York
had been gradually climbing up until
about 100000 had been accumulated
there. 1t was suspected that this was
manipulated for the purpose of some
private graft, and Governor Martin
ordered Hamilton to reduce this New
York balance without any delay
In the spring of 1888, the govern
ment sent the state a draft for $127,-
600, which was due the state from the
government on the sale of certain
school fund bonds. Treasurer Hamil-
ton left this $4,000 in a bank for
collection" for thirty days, and when
Governor Martin discovered it, he
called the treasurer down hard, and
insisted that no more of the state funds
be left in the banks for such long
period as thirty days. Such rigorous
adherence to law has long since be-
come questionable.
But the thing which caused HamiI-
tons undoing was deal very similar
to the Comanehe county transac action
in which Treasurer Kelly was involved.
Hamilton borrowed" $4,000 out of the
state funds with which to finance a
''boom" deal in real estate. The bot
tom dropped out, and Hamilton could
not make good the $4,000. His bonds
men, one of whom was Geo. r. Peck.
had to step up and make good the
loss. Hamilton had no intention of
stealing the $4,000; he simply was un-
fortunate and lost it, just as might
have happened when Kelly loaned
GODDARD the s123,0OO to buy Comanchs
county bonds.s
A Copeland Story.
One of the stories about the bank
disaster and it's effects on the state
which is floating about the Copeland
today is concerning a Tuesday evening
supper party in the Copeland dinins
room. when W. r. Stubbs, Mort AL
baugh, ]. S. Dean and A H. Burtis
of Garden City were seated at one
table discussing the states loss.
''I remember" said Mr.. Albaugh, sot
kicking about the big tax levy which
Kelly and his friends were making. an(
arguing that it was done to provid,
Kelly with a good round sum to Ioar
to the banks. Your crowd Stubbs, de
MED it, but believe I was right
Z understood" replied Stubbs, "tha.
the cash in the treasury would be prac
tically exhausted by June l. and tn,
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