The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-18
HAS KELLY FAILED
Now Believed That He Can't
Secure Bond.
Only Two Days More in Which
to Act.
HE IS SILENT TODAY.
Time Enough to Talk When
Necessity Arises.
American and Fidelity Com
panies Refuse the Risk.
Find That Treasurer Will Con-
troll Much Money.
HE IS SILENT TODAY.

Has Tom Kelly failed to get the
$75O.0O0 bond which has been re-
quired by Governor Hoch? With only
two more days until the time limit ex-
pires, the indications are that Kelly
will be obliged to throw himself upon
the mercy of the executive council next
Friday and ask for more time, or else
that he will present a bond which the
council can not accept.
Mr.. Kelly was asked today whether
he would ask the executive council
for more time
Time enough to talk about that if
the conditions arise which make it
necessary replied Mr.. Kelly. Mr.
KeIly's self-conf1dent air of assurance
which has characterized him during
the present difficulty was entirely
lacking this morning.
Have you been able to secure your
bond ?" was asked.
"There's nothing doing" replied
Kelly. ''I have nothing to say"
is it true that the American Bond
ing company has refused to carry part
of your bond?"
81 can't discuss that at this time,
replied the state treasurer.
There is good authority for the
statement that the Fidelity and
Casualty company and the American
panies upon which Kelly was depend
ing for support. have refused to go
on the bond. The action of these two
big concerns indicates that all the
bonding companies are in an agree
ment to stay away from Kelly.
Were you in Kansas City yester-
day looking after this bond matter? ?'
was asked of Mr.. Kelly.
In Kansas City, but not to look
after the bond 1 was there on other
business, and I also ran down to Ex-
eelslor Springs where my wife is stay
ing
It is said that the bonding COM
panieS have come to the conclusion
that even under the new state de-
pository law, Treasurer Kelly will
handle too much money to make it a
safe risk. All OF the remittances aside
from the direct taxes must be sent to
Treasurer Kelly as in former days. At
times it is possible that Kelly might
have half million dollars in his
charge If the bonding companies
could be sure that Kelly would not be
able to get his hands on any of the
state money. they would probably be
willing TO go on his bond. In order to
make it safe for the surety COM
panies, Mr.. Kelly is said to be trying
to induce some of his banker friends
to sign an indemnity bond to be given
to the bonding companies The visit
of Mr. Kelly to Wichita and Kansas
City is said to have been for this mr.
pose. If Kelly can get the right kind
of an indemnity bond, he will be able
to exchange it for a bonding company
bond.
Hoch viii Act.
close friend of Governor Hoch said
Governor Hoch is tired of any fur
ther delay He viii act and unless KEEL
ly gives that bond before July 21, some
thing viii happen. 1t makes not the
slightest difference what. the executive
council does about extending the time y
Governor Hoch himself was asked to-
day whether in his opinion the execu-
tive council has the right to extend the
time limit which he fixed on the hond
hardly think I should discuss that
point, he said, but it seems to me
that Mr.. Kelly has been given annie
time to secure bond. I don't see how
We can delay much longer and still set
this new depository law in operation
within the time provided"
Do you think Mr. Kelly will try to
block the operation of the law by sim
ply refusing to give the bond?''
Il hardly think so; 1 don't see how
he cam
Burrow With Hoch.
It is stated that Secretary of State
]. R. Burrow will stand by Governor
Hoch in insisting that KeIly's bond be
good, and that no straw be passed
off on the state. Burrow is a good
judge of financial propositions, and he
will know a good bond when he sees it
BUrrOw realizes that if he votes to ap-
prove a bad bond, it might endanger
his own bond in case anything unex-
pected should happen in the treasurer
Office.
When asked this morning whether
Ghe executive council would have the
right to extend the time set by the gov
0rnor for the completion of the Kelly
bond, Mr.. Burrow said:
My off-hand opinion is that this is
q matter which is wholly in the hands
of the governor. But l would follow
the. advice of the attorney general il
such matters
DO you think Kelly will be able to
secure the bond?" was asked.
Il haven't the slightest idea replied
Burrow.
Dayhoff Would Extend the Time.
State Superintendent Dayhoff does
not agree with Secretary Burrow He
said this morning:
''I don't see why the executive coun-
Gil could not give more time, if it seem
ed desirable. We are a long ways from
New York, and it takes time to arrange
such matters by correspondence. The
time given to Mr.. Kelly was very short
1t seems to me. However. I propose to
act in this matter without fear or favor
and what the attorney general says will
have great weight in determining my
course
state Auditor Seth Wells and Attor-
ney General Coleman are the only other
members of the counc4& Mr.. Wells has
not yet come to Topeka, and Mr. Cole
man has nothing to say. Wells will GER
tainly insist that Kelly give a good
bond and Coleman seems to be lining
up with Governor Hoch in the presen
affair, but he has changed his mind be.
fore now.
Everything Indicates now that the
session Of the executive council ON Fri.