The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-09
Mr.. CRIMES TALKS
Discusses Shortages During His
Term as Treasurer.
Says That They Are Due to
Coupon System.
QUESTION OF CLIPPING
Nothing to Show How Many
We're Taken by Brokers.
Says He Will Have Richie Pay
Note.

eff Mr.. Morris finds any shortage in
| the treasurer's office during my admin
istration," said ex-State Treasurer
Frank Grimes today. this shortage
will be due entirely to the fact that
bond brokers were allowed to clip cou-
pons before the bonds came into my
possession"
| This statement was called forth by
the rumor that the Morris report will
show UP a shortage of $4,000 during
Mr.. Grimes administration as treas
urer.
| 1t became known today that imme-
diately after the election of Governor
Hoch, Mr.. Grimes asked George Cole,
A. A. GODDARD and Frank Nelson, who
were members of the board Of school
fund commissioners during Grimes adj
ministration. to send a signed state
| ment to Governor-elect Hoch to the
effect that the school fund commission
ers had been obliged to allow the clip
ping of coupons in order to get possess
sion of the better class of Kansas
| bonds 1t is supposed that this state
ment is still in Governor Hoch's pos
| session. 1t was sent to him for the
| purpose of ''squaring" Grimes with the
governor for the charges made by
shortages in the Rowett report
When asked today about the exist
ence of such a statement, Mr.. Grimes
said:
Il have nothing. to say about that.
I will let the old members of the board
of school fund commissioners do their
| own talking If they made such a
statement they ought to be the ones to
tell about it.
TT is a fact, however, that many
| bonds purchased during my admins
tration win be found by Mr.. Morris,
| the expert now working on the books,
| to be short in the number of coupons.
| ne only thing for the accountant to
do will be to report this shortage He
| has no authority to go further and ex-
plain it. l suppose that when the re-
| port is placed in the hands of the gov
ernor and his advisory board, they will
call in the members of the old board
of school fund commissioners. and all
| the bond brokers who negotiated deals
before the board. and take I'D each
bond on which there is alleged to be
| a shortage in the coupons. They will
find that in every instance the school
fund commissioners allowed the bond
brokers to clip some of the coupons in
| order to reduce the interest charge by
a certain agreed per cent.
| 81 don't want. to be understood as
criticising the board of school fund
commissioners. I believe they are able
to take care of themselves. The facts
were that all the choice Kansas bonds
were being bought up by the bond
brokers, and the state school fund was
obliged to take the offscourings In
order to get the better class of bonds.
they had to resort to the coupon clip
ping system. The brokers made their
| profit in the coupons which were re-
| turned to them.''
Wanted His Note Back.
Mr. Grimes stated today that while
in Topeka a few days ago his former
assistant, Roy Richie, called upon
him and demanded the return of the
$1,100 note which Richie gave to
Grimes at the time of the discovery
of the Abilene shortage.
| ROY gave no reason for asking the
return of this note" said Mr.. Grimes
possession. OF course 1 refused to re-
| turn it. 1 not only shall hold that
note, but 1 shall make Roy Ritchie
pay it. In due time 1 will bring suit
| for its collection. 1 have no desire to
make things unpleasant for Roy, but
he will have to pay that note.''
The Richie note was a sensational
feature of the exposure of the Abilene
sponsibility for the shortage. though
he denied emphatically that he was
responsible for the disappearance of
the money. He gave Grimes a note
for the full amount of the shortage.
Land then borrowed from Grimes on the
note two-thirds of the amount, receive
| ing credit for the one-third which he
had in cash. Speaking of the affair to-
day, MI. Grimes Sd1Qs
"This is the second time that Ritchie
has tried to get me to give back that
note. The first time he demanded it,
and I refused, he said to me, All right,
Frank then I'll feel free to tell some
things know about your affairs I
Immediately took sheet of paper and
wrote on it, MIR. Roy G. Ritchey: I
am willing you should tell anything
you know about me. f. E. Grimes,
: and handed this to him. He laughed
and said, Well, 1 guess you've called
my bluff
Asked Richie to Help.
t'When Richie was in town a few
| days ago, I insisted that he should
come to see me, and he finally did so
to go up there to the state house and
tender his services to Mr. Morris Oh
Mr.. Kelly, free of charge, for the pur-
pose of going through the books and
Strengthening up that Abilene short
age Ritchie was in that office for
; the books than anybody else. He is q
skillfuI accountant, and If there is
! anything there which would help him
to account for that shortage, he ought
. to find it. He owes it to himself, and
to all of us. When I suggested this
! to him, he refused to do it. He said
his motives would be misconstrued
and that since he was to be the scape-
goat anyway, he would just keep Out
of the whole thing. sScapegoat is hi:
favorite word.
ST am not afraid of anything thai
my administration as state treasurer
| I may have made mistakes, but Goo
knows I never took one penny dis.
honestly. The people of Kansas be-
, lieve this, and 1 will defend my rec
. ord