The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-27
NO CUSTER.
Governor HOch Won't Put Kelly
Out Of Office.
VIII Bring Suit to Determine
His Liability.
GOOD WORD FOR KELLY
Conditions Don't Warrant Ac-
ceptance Of Resignation.
VIII Test Liability on Oklahoma
arrants.
GOOD WORD FOR KELLY

AT $3.50 this afternoon Governor
Hoch made public his statement con-
cernfng Ills plan of action on the state
treasury shortage.
Nothing is said in the statement
about an custer suit against Kelly and
it is evident that none viii be started,
at least for the present.
The extent of the contemplated ac-
tiou is suit against eX-Treasurer
Frank Grimes and another against
Treasurer Kelly to determine their LA
biiJy for the $4,000 shortage.
kelly's escrow resignation Will not
be accepted Governor Hoch says that
conditions do not warrant such action.
This statement is not fully explained
Ii may mean that the resignation is so
worded that it can not be accepted.
The following is Governor Hoch'
statement in full:
To the People of Kansas:
Immediately upon taking my Office
the duty 10 bring about an examination
and accounting of the state treasury
was placed upon me. An act of the
legislature of 1905 provided for il ana
made the necessary Appropriation, lne
treasurer, who at the last election be-
came his own successor, demanded H.
and during the campaign preceding my
4
The firm of Haskins & Sells. cert-
fed public accountants, of Chicago ana
New YORK. was employed The report
has been received and its contents
made public. The summary given to
the public by me has not al any time
been considered as limiting the in
formation OF the people concerning the
accountants report. Since giving out
the summary the report itself has been
treated as q public document subject
TO examination, inspection, or the max
ing of a copy by any person. All that
the report contains has been given to
the public The knowledge possessed
by lhe people eff the condition of the
treasury is the knowledge possessed by
me.
The report shows many apparent
shortages. mutilatiOn of treasurer's
records. erasures ard altera ti0ns IN
auditors records, but nowhere does 1T
find by whom these things were done,
or i'm any manner locate the blame for
them That wrong has been commit
ted and that some one is guilty of COM
hitting those wrongs seems apparent,
but with all the evidence gathered by
the accountant who can point out the
one on whom guilt rests and say This
one is guilty. All the evidence con-
taiued i'm the report and placed be-
fore me would not alone, i'm my iudg
ment, Justify a jury in finding either
of the men who have held the office of
treasurer during the period covered by
the report guilty of a crime, and I be-
IeVe no honorable court would Sus-
tain such a verdict if found upon the
evidence contained therein. Upon
that report L am expected and re-
Quired to- base conclusions and ac-
tlOus. No conclusion should be reach
ed by me that the evidence does not
sustain.
The first question that I must de-
eide is whether or not to accept the
resignation of T. T-AKelly, placed i'm
ras f4. q
tion. 7 have given this matter much
thought and most careful investiga-
ton, and I have reached the con-
clusion that there is nothing in the re-
port which would Justify an accept
ance of the resignation, and I shall
therefore not accept If.
Since 1898 the state of Kansas un-
der contract with oklahoma has kept
and maintained oklahoma prisoners.
Payments by Oklahoma have been
made by warrants which have been
stamped. Not paid for want of funds
and thereafter until paid have borne
interest ait six per cent per anuum.
The average time which such warrants
draw interest is estimated to be two
years During the terms of office Of
both the last two state treasurers it
has been the custom to dispose of the
warrants when turned into the treas
ury at price never less than par. and
iu some Instances at par and accrued
interest Holding the view that the
treasurer was without authority to sell
or dispose Of the warrants except bv
surrenderiug them upon payment by
Oklahoma. the accountant claims n
loss accruing TO the state to the
amount of about $25-000. being the
amount of interest estimated ais ac-
crued and accruing upon the warrants
after they were disposed of at par
or at par and accrued interest The
question of liability upon this claim
ra q nd
or the absence OF it, in the treasurers
to sell the warrants IF they had the
right 90 sell them there is then NO
liability IL they acted without author
lty OF law in selling them. the ques-
tion then presented is what loss. If
any, has the state sustained thr0ueh
the sales of warrants. Tt is claimed
by the treasurers with much DIarsi-
bility that the making of the sales
avoided the necessity of Kansas
stamping her own warrants Not Daid
for want of funds" thereby MAKING
them bear interest at a rate as bigb
or higher than the rate drawn bv fba
Oklahoma warrants. The report Of tha
accountants in treating Of the dispOsf-
ion OF the Oklahoma warrants makes
no suggestion of moral turpitude uDon
the part of the treasurers.
The Oklahoma Shortage.
The determination of the legal cues
tiou involved in this claim is one that
should be presented to and decided nv
the courts. I shall therefore instruct
the attorney general to bring actions
necessary for that purpose in the proper
court.
The report shows coupons not ac-
counted for to the amount of $50 31q go
OF this amount $4146.36 is held to be
accountable for during the incumbencv
of the office By MI. Kelly, and all of
the balance during the incumbency of
Mr Grimes. All of the items making
UP the $50. 1880 do not stand upon the
same footing. To some Of the items the
riehk OF the state to demand pavment