The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-19
Took Cash Out of Treasury for
His Friends.
THOSE UNPAID CHECKS.
One of a Topeka Newspaper Was
for $3.50.
Another Of$82O Given by Kelly's
Brother.
Other Items of Cash Advanced
to Officers "and Others.


In addition to Ioaning the state
money, SI23,OOO at a time, to private
individuals who wanted to swing big
deals in bonds, State Treasurer 4. T.
Kelly seems to have been doing a thriv-
ing business with some Of his minor
satellites.
This interesting state of affairs is
revealed by the Morris report: a r0r-
ton not heretofore published. 1t
seems that at the close OF business on
May 81, 1905, Mr.. D. c. Morris, the
Haskins & Sells accountant. swooped
down on the treasury and started
things by counting the state cash.
The whole story of what he found is
included in the report which he filed
with Governor Hoch.
He found one heading called checks
and cash items which aggregated
S1,3S1.36. Some of these items were
as follows:
"Check of the Herald Publishing
company on the First National bank of
Topeka, to the order of Dell Keizer,
and endorsed by him, $3.50.
CHECK dated May 81, 1905, of J.
d. Kelly on the Farmers bank of
Gardiner, kan, to the order of I. T.
Kelly, and endorsed by him, $500
sight draft dated March 29, 1906,
of d. r. Hite on Insurance Company OF
North America, Philadelphia, Pa,
CThe above draft was deposited for
collection and was returned not Paid
with protest fees of S2.6O.l
Due bills for advances to state Off
GERS and others, S233.
Incidental expenses paid $20.40.'
Unfortunately, the report does not
state the date on the check Tor SOU
on the First National bank, given by
the Herald Publishing company, which
is one of Kelly's Organs" 1t does not
show how long it had been held as
security, or how long il had been
! counted as one of the assets OF the state
I of Kansas. IT seems a little strange
! THAT such a cheek should be taken to
/ the state treasury to be cashed. and
should be held for an indefinite period
1 in the treasury as an asset"
Perhaps it would be good thing
4 the next time Governor Hoch and the
! examining board has a chance to look
4 over more carefully the checks and
cash items" in Treasurer keHy's ac-
Then follows on the list the $500
/ check given BY. D. Kelly. j. d.
Kelly is John Kelly, brother Of Tom
| Kelly and at present the assistant
/ state treasurer. The peculiar feature
| of this is that 1t was slapped into the
! treasury on May 81, the very day the
! examination was made Perhaps II
was needed to make things balance
The accountant does not say wheth-
er he investigated to find out whether
/ these checks were of any value at the
! time they were held or whether they
would have been cashed by the bank
/ upon which they were drawn. At any
rate the checks and cash items account
/ certainly afforded Mr.. Kelly a charm
| ing opportunity to accommodate ms
| friends, or to balance his books in time
Of need
Worthless Sight Draft.
But if the Herald and Kelly checks
were of no more value than the sight
draft which the Hon. Mr.. Kelly was
holding as an asset, there might oe
ground for criticism. This sight draft
seems to have been turned in to the
state treasury on March %, 1905. It was
sent on for collection, and protested So
| instead of holding the sack for the or
| iginal s4799. the state was taxed up
1 with $3.50 more as protest fees. EVea
had the sight draft been paid II IS
hardly common for a state treasury to
/ accept such documents as cash as
Then follows the item of s2ss in the
form Of due bills for advances to state
| officers 'sand others" If Mr. Kelly had
limited his loan business 70 state ON on
/ GERS it might not have been 50 Daos
for the state usually has some hold on
/ its own officers But the words anu
/ others seem to let in anybody in kei-
J
/ deemed worthy. To such, the state
. treasury was open. They could borrow
! money and give due bills" It was a
/ great snap.
These matters are of small importance
| compared with the wholesale looting OF
/ the school fund which was IN progress.
i hut they indicate clearly the system
/ uDon which the state treasury has peeA
conducted by T. T. Kelly
Morris Says It Was Unlawful.
Speaking of this wonderful system OF
helping friends in need, which seems
1 to have been Treasurer Kelly's own IN
vention, Mr.. Morris says in his report.
sIJnder technical construction Of sec
ton 1851. general statutes of 1901, the
cashed checks and other cash items re-
ported in connection with our three e<-
/ annina tions Of the cash in the CUSTODY
| of the state treasurer would appear 70
i evidence violation of the law
Section 7251 Of the statutes OF whlch
| Mr. Morris speaks is as follows;
/ 1.-The treasurer shall be REQUIRE 70
keen safely in the state treasury, Win
out loaning, using, or depositing N
/ banks or elsewhere, all public moneys
Of whatsoever character paid into sucD
I No doubt the part upon which It was
I Intended special emnhasis should pe
i placed is the word 'loaning-