The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-17
/. THOSE LETTERS.
Governor HOeh Tells why They
We're Not in Report.
Mr. Bigger, Hutchinson Broker,
in Queer Position.
STATE STAMP ERASED.
This on Coupons He Claims to
Have Clipped.
Governor Hoch Says Haskins &
Sells Are Through.
STATE STAMP ERASED.

made public the letters which were fled
by Frank Grimes with State Account
ant Morris, and which Mr.. Morris did
not include in his report. The letters
were left with Governor Hoch by Mr..
Norris
Asked why the letter were not in
cluded in the report, Governor Hoch
said: This report is simply a state
ment of what was found in the rec
ords. No evidence outside the records
would be proper. These letters which
Mr.. Grimes fled are no doubt very i'm
portant for personal reasons to Mr..
Grimes, but the accountant acted wise
y, in my opinion, in excluding them
from the report
one of the letters is of especial in
terest. 1t is from L. A. Bigger, the bond
broker who has sold many bond issues
to the state, including an issue in July,
1900 of $4,000 Ottawa county bonds at
4 per cent. Mr.. Bigger is now in Eur
/ ope. On September 19, 1905 he wrote
letter to Mr. Crimes stating that by
consent of the school fund commissions
t ers, two coupons were clipped from each
/ of the rs Ottawa county bonds, and re-
/ tanned by him
Mr.. Biggers letter is in direct con-
f1ict with the showing made on the rec
/ ords as reported by Accountant Nor
4 ris-
The records show that the first eou-
/ pons were detached from the bonds
i when they were registered by the audi
/ TOT.
4 1t was also discovered that the "state
( property stamp had been erased from
/ the backs of "A out of the 76 second
/ coupons, for the purpose, it would ap-
4 pear, of making the coupons show the
/ same thing as claimed by Mr.. Bigger S
! letter; namely, that the first two cou-
/ pOns were not the property of the state.
I 1t seems to be up either to the board
/ of school fund commissioners at that
/ time to defend their records. or to Mr
/ Bigger to admit that he was mistaken
I At any rate, the second series of cou-
pOns on the Ottawa bonds, amounting
/ to 81 $50 went to the profit of someone
besides the state school fund. The mys-
/ terry Of the second coupons is deepened
/ by the fact that second coupons on
bonds / and 2 still bear the state pro-
4 perty stamp. No effort has been made
to erase the stamp from these coupons,
/ and they are properly accounted for to
/ the state.
How Letters Were Secured.
It seems that the method followed by
| Mr.. Grimes in getting the collection of
/ letters fled with the state accountant
| was to secure d complete list from the
state treasurer of all bonds from which
coupons were missing, and the name of
/ the broker who sold the bonds to the
state. He then wrote to the bond brok-
ers, enclosing the list and asking if it
! was correct. Most of the brokers re-
sponded that they have not any records
on the matter, but to the best of their
knowledge and belief the statement is
/ correct.
L. A. Bigger says: so far as I am
able to determine, sold all of the bonds
and retained the coupons enumerated in
| your list which is herewith returned
@. E, FoOte, under date of October Z,
1905, says: I'VE do not remember all
/ the details of every transaction, but
/ from the best of our memory, and be
lief we did sell bonds enumerated in
your list copy of which we attach
hereto. and were allowed to detach the
coupons enumerated therein.
/ Kelly & Kelly in their letter make an
effort to explain why certain coupons
claimed to be clipped before sale, bear
the state property stamp. They say:
while it is not our rule to preserve
copies of our offers for bonds after the
transa ctiOn has been completed, nor do
we keep a record of the coupons detach-
ed yet we find in looking over some old
papers the CODY of an offer made March
13 Our practice was to call on
the clerk who would be informed verbal
Iy by the board that we were entitled to
first coupons under our contract to sup
ply the bonds, and the clerk would de-
tach and deliver the same to US. But if
we failed to call on the bond clerk in
! the superintendent's office the bonds
with all the coupons would go to the au-
ditor's office where they were registered
/ and stamped state property, including
! the first coupons
D. H Martin. another bond broker
says that in his experience, no coupons
were detached from bonds he sold eX-
cept in the case of Anderson and
Waterloo township bonds.
Mr.. Grimes also fileo statement
{ dated September Is, 1905, from Geo
| A. Clark. A. A. GODDARD and Frank Nei-
son, the old board of school fund COM
z missioners. in Whicn they gay:
''Much has been said recently about
[ the purchase of bonds with coupons
detached. We made such purchases
2 and in so doing acted fer the best inter
; ests of the state 1t was difficult fCl
e US to secure good bonds for the leasor
that eastern bond houses were Paying
a premium for suen bonds. We wei
compelled to meet competition, and as
= the law forbid US paying a premium
{ owners TO detach coupons in order tC
1 obtain desirable securities.
HOch Is Not Talking Much.
When asked today to make a state
g ment concerning his plans for further
action, Governor Eoen said:
Il cant say anything about that a
What will you do with the escrow
resignation ?"
s'I can't discuss that"
what will be done with the fou
: copies of the report on file
= e'I don't know; ')f ecu sc, e,se ccpl
u will be kept on file j. re in ia's cftiCe.
when will you give out the supple
nentary report conc =. ming changes Il
5 bookkeeping :n the state Offices 90
, ! THAT report was taken to ChiCsgs
I. to be completed, and I have not yet re
Il ceived it. / do not know whan it vii
DO you expect to have Haskins
: Sells carry on any further investiga
tons -