The Topeka state journal., 1906-02-14
GODDARD PAY SIT.
Turns Over S257.SO to the
State Treasury.
This Was Interest on COmanche
County Bond Money.
KELLY LOANED CASH.
At Same Time He Paid GODDARD
Interest on It.
Latter Says He Need Not Have
Returned Cash.
Did So on Account Haskins &
Sells Report.
KELLY LOANED CASH.


A. A. GODDARD. Of this city, has re-
turned to the state treasury the sum
of S257.80. with interest from August
IL to date. in order to settle up the
amount OF excess interest which the
recent report of Haskins & Sells held
was due the state from him on the
Comanche county bond deal.
This was the deal in which State
Treasurer T. T. Kelly, on July Is,
1904. advanced s12s,OOO of state funds
to pay for an issue OF Comanche coun-
ty bonds which Mr.. GODDARD was try
ing to sell to the state. The state. did
not actually get the bonds until Aug
ust H. but the school fund commits
sioners allowed Mr.. GODDARD accrued
interest for the period between July
25 and August II. while the state
funds were being used to swing the
deal. So Mr.. GODDARD not only had
the free use of S123,0OO Of state funds
for seventeen days. but he also coli
lected the accrued interest on the
s12S. 900 in bonds for those seventeen
days. This is the money he pays back.
Mr.. GODDARD said: ''I believed at the
time this report was made. and I am
still of the belief that this money is
mine. But since two accountants have
found that this money should be paid
to the state, I have decided to avoid
all appearance of trying to take any
advantage of the state. want to be
more than fair, and have therefore
included in my remittance to the state
treasurer the interest on the money
down to date.
II do not feel that I owe this
money to the state. There was moth
ing Of record on the books of the state
to show that the state came into pos
session of the bonds before the time
to which accrued interest was paid,
and # anything had gone wrong with
the deal I would have been obliged
to take up the bonds
At the time the Morris report was
first given out, Mr.. GODDARD stated in an
interview in the State Journal that he
would not return the money to the
state. He says now that he has con-
cluded. after further deIiberation. that
1t would be better to avoid all pos
sible criticism by making the pay
meut.
The Haskins & Sells report consider
ed the Comanehe county bond deal un-
der the head of Excess accrued inter
est paid By commissioners on bonds
/ purchased" !"
The commissioners allowed Mr.. God
ard $6S6.9S, and the accountants find
only $379.13. The commissioners. al
lowed Mr.. GODDARD to collect accrued
interest on the bonds while the state,
according to the evidence, had furnish
ed the money to swing the deal, and
was really the owner of the bonds. The
language of the report is as follows:
This transaction was handled by A.
A. GODDARD through the Interstate bank
or Kansas City Kan, and we were in
| formed by the officers of that bank
/ that the above bonds were delivered to
| the state treasurer on July 25. 1904.
the bank receiving in payment his two
checks for $61.50O each; one drawn on
the Bank of Topeka and the other on
the First National bank of Topeka
These Cancelled checks are said to
have been DESTROYED. but the stubs
show that check No. 1916 was drawn
on the First National bank of Topeka
dated July 25, 1904, in favor of the
Interstate National bank. Kansas City,
for S61.500; and check No I455 was
drawn on the Bank Of Topeka. dated
July %, 1904, in favor of the Interstate
National bank Of Kansas City for SOL
500. The state treasurer's warrant
register permanent school fund a
shows that order No. 2181 dated Au-
gust II. 1904. in favor Of A A. Czodard
was paid August Il. 1901. Cancelled
orders were returned to the state audi
tor for credit on August Il. 1904. The
Cancelled orders in the possession Of the
state auditor and indorsed on back as
follows: Order No 2181 for S122. 900.
A. A. GODDARD. Order No. 1856 for
s636.93. A. A GODDARD.
1.-THE state auditors record Of bonds
/ registered permanent school fund No.
4, shows that the above bonds were
registered as belonging to the perma-
nent sch ooI fund on August IL 1904
ffThe state treasurer's bond ledger
by counties No. 2 shows that the bonds
we're received by him on August 1s,
1904
CAS- It IS shown that payment on the
bonds was made by the state treasurer
on july Is, 1904, and not on August
II. 1904. the accrued interest paid by
the school fund commissioners should
have been $37s.13 instead Of s6369a
I a difference of $257.S0. which amount
is included In exhibit f under the
caption Excess Accrued Interest Paid
/ by Commissioners on Bonds Pur-
chased.