The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-17
GRIMES STATEMENT.
He Explains About theOklahoma
Warrants.
Admits That There Are Some
Unexplained Shortages.

Mr. Kelly and Mr.. Grimes the Two
men who must shoulder the responsible
fly for the big shortages i'm the state
treasury, have given out statements eA-
planning how it happened.
Mr.. Kelly denies the charges made IN
the report. He even goes 50 far as to
deny that he signed the letter in the
Garden City case, or the endorsement
on the chock which was paid to him
The accountant says in his report that
the handwriting is Kelly's.
This is Kelly's explanation:
There is not a word or line i'm the
Haskins- Sells report but what confirms
the position which / have maintained
from the beginning-that every dollar
RENTED to the state treasury since j
have been the incumbent of the office
has been accounted for ON the books
and records of the office.
THE report. however, intimates that
because accrued interest was paid on
bond purchases amounting to $3l4Z3'
the coupons detached by the bond brok-
e ers. amounting to 81 02O.26, is due the
state. The amount is not due the state
from me as state treasurer. The detailed
report shows that the proceeds of the
coupons was collected by the parties
ter6st i'm every case was paid by me up
on orders issued and signed by the
three members of the school fund COM
mission, and said orders are now on HE
with the state auditor.
Because $3.50 accrued interest was
paid on q Lane county bond purchase,
the accountant charges up $500, the
amount of the coupons.
Because S9I.85 accrued interest was
paid on a bond purchase from the city
of Larned, PaWnee county, the account
ant charges up $3.50, the amount of the
COUPON.
Because s722 accrued interest was
paid on Silver Greek township, Harper
county. bond purchase, the accountant
charges up $3.50, the amount of the cou-
pOns.
"F. w. Casner sold the city of Larned,
PaWnee county, per cent bonds on May
o. 1904, on the basis of Az per cent
The interest al AZ per cent from Janu-
any L. the date of the bonds, 80 May y,
date of sale, amounting to SSL6S, the
state paid MI Casner 1918 or cents
less than the actual amount due. The
bonds bore per cent interest. 10
equalize the AZ per cent basis MI
Casner clipped the first two coupons or
Oue-tenth of the interest, representing
the p per cent. The S9185 interest from
January ] to May n had nothing 10 do
with the two coupons clipped as this
was interest due at AZ per cent While
the coupons clipped represented the y
per cent to equalize the full time.
I'm no case is one of the coupons in
question stamped the property of the
state, neither are they charged against
the state treasurer in the office Of the
state auditor. Neither were any of
these items collected through the state
tTeasurer's Office, or through the fiscal
agency al New York.
1.-THE accountant was furnished and
has i'm his possession evidence from the
bond brokers themselves, in each case,
that they sold the bonds upon the basis
of clipped coupons. He did not see fit
TO use this evidence in his report.
THE accountants report shows that
all of the warrants issued in favor of
the warden of the penitentiary for the
keeping of Okla hOma prisoners have
been accounted for. He claims that. if
the warrants were kept in the hands of
the state treasurer for twenty-five
months, which he estimates is the life
of a warrant. the state would receive
a stated amount of interest due. BY the
same reasoning, he might say that. if
the life of a warrant was fifty months.
the state would receive twice the amount
of interest i'm that time that it would in
twenty-five months.
"The investigation. beginning with
Governor Bailey, was started for the
purpose of finding a shortage under my
administration. The state has spent i'm
the investigation S17621-3 and the result
of III all is that not a dollar of the states
FUNDS mas been Incorporated There
has not been a penny RENTED to my
care but what is fully accounted for.
"As to the Garden City matter. to
which Mr. Morris refers. T. at no time
personally, saw the bonds when they
came into the state treasury. personally
did not send the coupons to the fiscal
agency for collection; personally. I did
not write the letter of transmittaI- Der-
Eonally, I did not sign the check which
came from the National City bank in
their payment. The coupons were not
on the bonds when they came into the
custody of my office, and my chief clerk
SO noted upon every one of the sixty-six
bonds.
Il am grathed at the result. To my