The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-02
Will Contend That Money Was
in Bank Before March Is.
SAYS WAS AUTHORIZED
On This Ground Collection on
Bond Will Be Resisted.
Expected That Suit Is to Be Be-
gun Soon.

II think that you will find that every
cent of that $547. 900 was put into the
First National bank before March Is, -
said Treasurer Kelly this morning be-
traying plainly the defense which he
and the Scranton Bonding company
will put up against the suit which At
torney General Coleman has now in pre-
paration against the latter concern.
THAT matter down there in the bank
does not worry me in the least said
Kelly. Il know that it was put in
there according to law. There is not
thing wrong with it,
Upon that point will hinge the deter
mination of the proposed suit of the
state against the Scranton company.
On March Is the new depository law
was published and became effective,
providing that the governor shall re-
quire a new bond of the treasury, and
that on the first Monday in July the
bond of treasury examiners shall take
steps to put the new depository law in
to active operation.
To get little closer to the defense
of the bonding company little ancient
history will have to be unearthed. Years
urers to bring the states money to the
treasury in grip sacks. The county
treasurer was allowed ten cents per mile
for mileage and five dollars per day
his office on the trip. Counting this up
for los counties it will be quickly re-
allied that the total sum was a large
one. But it was necessary to do this at
the time because the law held the state
treasurer responsible for any drafts
which were sent to him, and so the
only safe way was to have the money
brought to his office in currency.
To do away with the expense of these
los junketing trips twice each year, the
q q a tIIT a "a a
the county treasurers shall remit drafts,
but that the state treasurer should not
give a receipt for any of them until
they are collected. In this way began
the phrase of state money in the pro-
cess of collection" and opened the way
for the treasurer's graft which has been
disgrace to the state.
Treasurers from that time on began the
custom of simply leaving the money
collected on the drafts in the banks
through which they were sent and col
lecting interest on it on their personal
accounts. In this way Kelly claims
that the First National bank which was
his medium here and which was owned
by c. J. Devlin, his chief bondsmen, got
$547, 900 for collection from over the state
at the time that it failed He declares
that none of the money which is credit
ed to the state on its books was put
into the bank after March Is at which
time the new depository law went into
effect. He will also try to show that
since March Is he placed no money in
the First National bank, but in banks
at Wichita. Hutchinson, Kansas City
and some other Kansas. towns.
That will be the story of the defense
which the Scranton company and
Kelly will put up. Gossip about the
state house is that this point is one
over which Governor Hoch and his ad-
prevents them from carrying into eff
feet their already defined intention to
collect for the states loss in the First
National bank from Kelly's surety
bond.
Governor Hoch is absolutely silent
on the matter. He refused again this
morning to talk about the Kelly trou-
BILE in one way or the other. 81 have
not q thing to say" was his retort, 81
will not talk about it,
Attorney General Coleman is getting
the suit ready. 81 am working on the
preliminaries and trying to shape them
up" was his only informing answer
in regard to question in the matter.
81 follow my usual custom, namely, to
say nothing about the states affairs,
just as l would say nothing about my
private legal affairs. There is one
thing, however, that I am getting aw-
fully tired of, and that is to have the
newspapers say that I am not ready,
and that the suit may be filed in a
few days. I see no necessity of that
kind of talk. I have given out no
statements in regard to the matter
and I do not intend to. That is all
there is about it,
But the whispers about the state
house have it that the suit will come
within three or four days. Yet it is
known that Coleman and the rest of
Hoch's advisers are tangled up on the
proposition that all the money in the
First National bank had been placed
there before March IS. TheS are just
a little at loss as to knowing how to
get at the matter.