The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-07-11
Laughs at the Action of Cover
nor Hoch.
Says He Is Not Afraid of the
Results.
WILL GIVE A BOND.
Believes Surety Companies Will
Undertake Risk.
State Going to Unnecessary
Bother, He Says.

State Treasurer Kelly today stated
that his clerks are at work tracing
the checks and drafts involved in the
$547,OO First National bank loss, for
the purpose of determining exactly
how much each of the state funds lost
in the crash.
eve will be able to arrive at very
close estimate" said Mr.. Kelly, "of the
portion of each fund which is tied up |
Having ascertained this, we will sub
tract the proper amount from each
fund, and will then know exactly how
much the state has to do business
upon.
"I realize that there will not be
enough to carry the state over until
the new state depository law is in eff
feet. We will have to stamp some of
our warrants not paid. The state will
pay per cent on warrants so
stamped. I can't tell yet when we will
have to begin to stamp warrants not |
paid. 1t is my purpose to find out as
nearly as possible the exact amount
in the general revenue fund, pay war
rants out of this fund as long as it
lasts, and then stop.
'As the affairs of the First National
are Strengthened out, and the dividends
are paid out to depositors, the state
will simply apportion its. dividends
among the various funds, and in
course of time, if the bank pays out in
full, the funds will be restored to their
original size.
1T looks to me as though the state
is going to a great amount of un-
| necessary bother in this thing. The
June payment of taxes amounts to
$687 900, and this vast sum is prac-
tically all collected. and lying in the
by the state. Yet the state can't use
this money, under Attorney General
| Coleman's ruling, until the state de-
positories are selected.
Il have been watching this thing
pretty close, and am perhaps in pos
session of some inside information,
which leads me to believe that the
state will get back every dollar which
is tied ND in the wreck.
VIII Give Surety Company Bond.
Mr.. Kelly announced this morning
that he is expecting to give a surety
company bond for the $685. 900 which the
| governor has demanded under the new
| law.
This bond" said Mr.. Kelly, will not
be written all in one company, but will
be divided among several companies 1t
is true that was in Wichita yesterday
looking after this bond matter. There
will be no trouble about the bond I
will have it by July 20.
1t was dated in dispatches from Wich-
ita that Mr.. Kelly was there trying to
arrange for S250.000 bond from the FL
deity & Casualty company, through
| Coler Sims, the Wichita agent The re-
! port was that he needed that much to
complete the $750.00O bond
| rs it true that you already have $780,,
900 of your bond?" was asked of Mr..
Kelly this morning.
| THE deals are not yet all closed up
said Mr.. Kelly. "but it is practically
settled
Says Hoch Is PowerIess.
| Speaking of the results of the long
| conference which Governor Hoch has
been having with his advisory board"
| and other political counsellors, Mr..
Kelly said today:
"I am informed that the governor and
! his friends have come to the conclusion
that have not done anything unlawful,
after all. They have put in a good deal
| of time trying to find something against
me, and have failed.
1.-The fact is that I have not done
| anything unlawful. I have acted strict
| ly within the law. This talk about a
| charge of embezzlement amuSeS me-"
What will be the effect of the new
| depository law?' was asked.
There will not be such a great rush
| of bids for the states money as some
have supposed said Mr.. Kelly. "As
have much money to deposit with any
body. The counties will keep all the
general fund, the school funds will all
| be invested in bonds, the annual school
fund can be kept only thirty days be-
fore distribution, and the amounts in
other funds are always small 1t is
very doubtful whether many banks
will care about going on the market
| buying bonds to deposit as security,
and paying 2 per cent or upwards in
terest for the use of money which may
stay with them only few weeks. If
they could get large sums, and keep
| the money for a year or so, it would
! be different
Hoch Has Done Nothing.
When asked today concerning the
results of the conference, Governor
Hoch said:
There is nothing to be given OUT
did you decide that there is no way
to enforce a demand for additional Sc
curity on the old Kelly bond? ?'
''It seems there is not
''Will you call a meeting of the ex-
ecutive council?"
st have not yet decided
'Have you any statement to make
about Auditor Wells interview? 20
mo, it isn't necessary" And the
governor smiled.
The general impression seems to be
that the conference was entirely mega
his advisors could not agree upon any
course of action against Treasurer KEEL
ly, and it seems that nothing is going
to be done. Stubbs. Benson, Clark and
all the others, have gone home, and,
apparently, the session of the strategy
board is at an end.
May Be Brown Corby.
Brown Corby of Herington, is said to