The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-20
HUH Is SURR I.
Regrets That He Didn't Explain
His Report.
Makes a Half Hearted Apology
for Grimes.
TALKOF EXPLANATION.
Says Many of the Shortages Are
Only Apparent.
Glad There Is TO Be New System
Of Bookkeeping.
Two Kansas Bond Brokers EX-
plain for Kelly.
TALKOFE EXPLANATION.

There seems to be no special hurry
on the part Of Governor Hoch to bring
the Kelly matter to a focus. Attorney
General Coleman and F. L. Williams
the governors private secretary, have
both gone to Clay Center today and
Governor Hoch announced that he had
no statement to make concerning his
plans.
"I am beginning to regret" said
Governor HOch, that 1 lid not plain
ly state, in connection with that sum
mary of the report which was made
public, that a very large portion of
this $4,000 shortage found by the ac-
countants could be explained satisfac-
tor1ly / do not think there IS much
ground for criticism in the handing OF
the Oklahoma warrants. concerning
the 100000 in coupon shortage, it is
OF course well known that the school
fund commissioners were Obliged 20
permit the clipping of coupons IN or
der to avoid loading up the school
fund with a lot of inferior bonds. 1t
is highly probable that a large portion
of this 100000 can be satisfactorily ac-
counted for.
Consequently, I am inclined to re
gret that this summary was made pub
lie without some such explanatory
statement. There's no use making our
troubles any worse than they really
are.
'I believe that Frank Grimes is per
sOnally honest. and that if there are
any unexplainabIe shortages during his
term of office it is due to bad book
keeping. or the dishonesty of some en-
plOye. Mr.. Grimes can do no more
than he has done to show that he is
fair and square. He tells me to go
ahead and figure up what he ought to
pay the state. and he Will pay it. That
to satisfy anybody. The best way TO
arrive at a fair accounting of what Mr.
Grimes really is short is one of the
things which are now before me.
Even though nothing more comes
of this report than complete revision
of the existing systems of bookkeeping,
1T viii be worth to the state ten times
what it cost. What IS needed is a new
system which viii afford a complete
cneck between the offices Of the school
fund commissioners, auditor and treas
urer. There are too many loose ends
under the existing systems.
II expect to be able to make
statement next week concerning what
VIII be done concerning this report"
Kelly Pulls the String.
Treasurer Kelly has given out an
interview in which he pulls on his
string which has been attached to the
escrow resignation" He says that
the resignation don't count until he
is itEdtlN CON ANlCLEQ- MI. Kelly S hand
had evidently been on the string ever
since the resignation was filed, and he
says:
"I am entitled to that escrow resig-
nation under the findings of the ac-
countant- If a jury with all the facts
before them, can find where I have
misap appropriated one cent, the gov
ernOr can accept my resignation But
the jury must first find a verdict
against me. Mind you, the condition
Of that resignation was that it should
be accepted if, upon a judicial deter
minatiOn, my accounts were not found
to be correct.
If I We're short i'm my accounts.
which I am not, I have good bond
UP to cover it, Not only that if
were absolutely uneXplainable I guess
a judgment for the fun amount
against me would be collectable.'f
Governor Hoch denies that Kelly
has asked for the return of his resig-
nation
Nothing of the kind was said" said
Governor Hoch, in response to cues
tions
Trying to Clear Himself.
State Treasurer T. IT. Kelly has nre-
sented evidence to Governor Hocb which
according to Mr. Kelly himself z1-iI1
clear him of all the shortage charges in
the Norris report. Mr. Kellv's evil
deuce consisted of letters from bopd
brokers who assumed the responsibility
for clipping the coupons charged
against Kelly.
Two of Kelly's principle witnesses. are
D. d. Dunn of Wichita and i. w. Cass-
ner of Kansas City
ID. f. Dunn of Wichita says in his let
ter that he win take the responsibiIffv
for having clipped the following
amounts in coupons;
Butler county, S427.50
Ellsworth county, $500.
Pratt county S337.5O
Mr.. Cassner shoulders the responsibfl-
ity Cor these shortages.
Pawnee county, Larned city. $3.50.
Harper county. Silver Lake township
$50 -
Harper county. Eagle township. s320
Since Mr.. Dunn and Mr.. Cassner are
the two men upon whom Mr.. Kelly re-
lies chiefly for vindication it is of in
terest to examine the history of these
star witnesses.
History of Mr.. Dunn's Deal.
Mr.. Dunn is the man who. i'm June ana
July, 1904, resOrted to an alleged trans
position of figures on a legal document
by which he tried to accomplish the
sale Of $4,000 worth of bonds which
could not be righuully purchased bv
the school fund commissioners.
AT the time Dun was supposed TO ba
working in behalf the Fourth Nafio4'sl
bank of Wichita, the real owner of ne
JULIUS Al Is LAAC L OLA tn 4NdLlOnaI bank
OF Wichita which seems to be one If
Kelly's pets. Before the new law Went
into effect, Kelly kept about s10O 600 Of
state money on deposit at the Fourth
National of Wichita. contrary to law.
Tt was the auditor of state tbat
blocked Dunn's game. When Dnnn
offered his $4,000 Dodge City bonds
the 1903 assessment showed that 1hev
brought the bonded debt Of Dodge un
to over is per cent Of the valuation.