The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-07-06
LETS KELLEY OUT.
tcontinued from Page -


Continued from Page u
lie said: You we're allowed one of
those six months coupons from each
bond ."
Yes. sir"
THAT coupon was detached before
the bonds were registered property of
the school fund ?"
yes, sir
"Then if the auditors records show
that tn e bonds had ali the coupons
attached when registered. you must be
mistaken. must you not2"
u suppose so.
sell Coupons to Banks.
r. r. Kelley was the next witness.
Kelley is also a Topeka bond broker,
of the firm of Kelley & Kelley
DO you ever utilize the state treas
urer's Office. said Mr. Smith. ITO cash
Your coupons at the fiscal agency?'
mo" said Mt Kelley. we COM
monty discount our coupons at the
Topeka banks"
D. B. Smith. assistant county treas
urer of Ellsworth county. was called
DO you remember State Account
ant Gafford coming to your Office ."
Yes. sir
Did you have any conversation with
him about Lincoln township bonds2.
sent by the treasurer and the receipt re-
ceived from Mr.. Kelly. We talked
about that"
What did you do2"
Z ook Mr.. Gaford to the bank and
introduced him so that he could look
over the papers They found the draft.
The draft to make up the shortage
according to Smiths testimony. was NOT
found until after Mr.. Safford's depart
Do,-bcer ry~..- ~ OUT,
State Superintendent Dayhoff was
called.
Mr.. Smith read a list of all the bonds
in which 1t is claimed shortages exist.
Isn't it fact" said Mr.. Smith, thar
all these bonds were sold to the state
with coupons chDped2'
Yes, sir
Mr. Coleman said:
Do you have any personal recollec-
ton of coupons being detached2v
have recollection of all these bonds"
When the records stated that bonds
were purchased at par and interest did
not that mean they were purchased
without detachment of coupons
No. sir
What did it mean?"
1T meant that the board Maid mar b,,t
time"
8IuIvane on the stand.
J. r. Muivane. president of the Bank
OF Topeka was called
You frequently send coupons through
the state treasurer office for collec-
Yes. frequently"
What about the Riehland township
coupons"
7 have no recollection about that"
Mr.. Coleman said:
Do you send coupons to the state
treasurer to be collected in New York -
We have done so"
You don't do this ordfna -Iv9~
ordinarily we run EN- direct to
New York"
Walter F. Payne. special assistant
STATE treasurer in charge Of the bonds
IN the state treasury was called. He toId
the method Of handling bonds after thew
come INTO the state treasury
MT. Payne stated that immediately.
upon receipt Of any bonds from the an
uitor. ne made an entry on the back o.
@e-n pond showing the number of cou-
4D..s c4ipped At the time of purchase
commenced that he said. "as soon
as went into office and did it at the
request of Mr. Kelly"
deposition Of VIM. Bender. Jr.. of
4.lleoin township. Ellsworth county.
was read Mr.. Bender was trustee Of
the township liz March. 1903 when the
PONDS We're issued. Mr. Bender tesfi-
ned that coupon No 1 was removed
from the bonds when they were sold to
MI Duiln- MT Bender testified that
fhe coupons We're burned.
j.. A Paul the county clerk Of Els
worm county. also gave a deposition
~ hieh was read. 1t related 70 fhe T m
Roin township bonds He said he dif
not register coupon No. l.
BERT strataman, county treasurer of
ENsW orth county. also gave a deposit
ton de said that he had RENTED the
money for coupon No. 3 of Lincoln
township bonds.
D. F. Dunn. of Wichita. the bond
buyer. was the next whose deposition
MAS read He testified that he clipDed
he coupons from The Augusta. Butler
county. bonds also the Lincoln town
hip. Ellsworth county. bonds. and
Banner township. Pratt county.
J. p. Wright, cashier Of the Citi-