The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-03
Company MayHave to Reimburse
the State.
Two Hundred and Fifty ThOus-
and the Sum.
THIS is NEARLY HALF.
May Get the Rest From Assets
OF Bank.
HOch Thinks That Prospects
Are Better.

The state of Kansas will recover
$250,000 of its deposits at least in the
First National bank. because that
amount was bonded by the United
States Fidelity & Trust company Of
Baltimore said Bank Examiner
Bradley this morning. "The premiums
on that bond was paid on January so
of this year, and is still in full force
| and effect
That will be welcome news to the
people of the state. Treasurer T. T.
| Kelly gave out the story with great
gusto on Wednesday evening. 'I have
been so busy he said, looking after
my own affairs and defending myself
from attacks that have not had time
to look up the matter, but on Wednes-
day afternoon I went to the bank and
found the receipts which show that the
! bank paid the premium all right. This
| makes it certain that the state will get
$250.000, and it is sure of at least so
money in the bank which it will re-
| ceive as dividends. The state will get
every cent of the money within six
months and maybe before that time.
''I can look after the interests of the
state a great deal better than anyone
else as far as this matter is concerned,
and I know the money Will be COM
! ing. OF course it will be late, but we
will get it
fYes, / naturally feel good about
this. There was so much talk about
| the bond not being good because the
premium had not been paid. I was
confident that it had been. and that
/ the records would show that much
Governor Hoch sat up and took no.
/ tice of things when the matter was
mentioned to him: Things certainly
/ was his comment. "I have been in
! formed that the bond given by the
I bank Is good for the $3.50, 900 and that
/ we can expect to get at least SO per
cent of the amount deposited in the
| bank through dividends. Then you see
the dividends may be greater than SO
per cent. In case that fails we have
the Scranton company for Mr.. Kelly's
loss. Things look much better and will
come cut in good shape
1 1t was not commonly known that
the state was protected by this bond
No one seemed to know anything
iabout it except some of the state Of
ficers and their Information was that
the premium had not been paid Mr.
Kelly began to investigate on Wednes-
day and when he found out that the
bond was in force and effect his joy
was almost boundless- He acted more
as if he was on pleasant terms with
himself and other people than he has
The fact that s25o,o00 is protected
may make some difference in the plan
to bring suit against the Title and
Guaranty Trust company OF Scranton
which has secured Mr.. Kelly as treas
urer. Governor Hoch said that the
companies may now be able to get to-
gether and in some way arrange the
matter without legal proceedings.
1 I'VE want the matter adjusted as soon
as possible - he said. 1.-The state needs
the money and needs it at once"
| From present indications il looks as
if the state may recover all of the mon
ey which it has in the First National
| bank If the United States Fidelity
| and Trust company of Baltimore makes
good its guarantee of $250,000 as it will
| have to, almost half of the money will
have been recovered. The Devlin estate
seems to be paying out, from advices re-
ceived in various places. If it does, as
| present indications seem to insure, the
state will probably be a very small loser
| if it loses anything at all.
From the gossip about the state house
it is to be concluded that the suit
| against the Scranton company will not
be brought In order to have COM
menced proceedings it would have had
to have been alleged that it was de-
posted illegally. The suit could not
have been brought without making
Kelly party. He would naturally not
have stood as partner to a suit which
made a charge against him. Since the
discovery that the premium has been
paid on 1000 of the states deposits in
. the First National bank, it is likely that
the action will never be brought.