The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-17

good friends all over the state, who have
been loyal to me in my political battles,
/ rejoice on their account
Grimes Admits Certain Shortages.
Mr.. Grimes statement is very long,
and seems to have been prepared with
considerable care and expenditure of
time 1T would seem that Mr.. Grimes
has been preparing to meet the charges
of the report for some time
The following is Mr.. Crimes state
ment.
before assuming the position of
state treasurer my predecessor had
stamped state warrants Not paid for
want of funds which drew per cent
interest from the date they were
slammed. There had been a great
dea of criticism in the papers and
the press had made good
deal OF capital out Of the matter when
the facts were that it was unavoid-
able as I soon found out when I be-
came state treasurer, because the ap-
preparations made by the legislature
We're not enough TO meet the eXpendi-
lures and / was soon up against the
same thing in reference to stamping
state warrants. Not paid for want of
funds The Oklahoma warrants We're
received by the warden of the peniten-
tiary for the keeping of Oklahoma
prisoners and drew 8 per cent from
the date received from the territory
and were delivered by him to the state
treasurer, and held until the territory
would have the money to pay for
them. Sometimes they would be there
for one to two and half years. When
the money was paid BY the territory it
went into the general revenue fund.
Done TO Protect Republican Record.
LAS the time was drawing near
when I would have to stamp war
rants, Not paid for want of funds I
presented the matter to my colleagues
of the administration, and told them
that / was going to have to stamp
warrants, as the money in the general
revenue fund was running very low.
1t looked like a disgrace to the state
for the report TO go out over the wires
that the state was una BILE to meet her
obligations and we wondered if there
was not some way that this could be
avoided and we could tide over until
the money would come in from the
state taxes I mentioned that I held
Oklahoma warrants in my possession.
thar drew 6 per cent interest and that
if 1 stamped state warrants. Not paid
for want of funds that such war
rants would draw per cent interest
and lnasmuch as the Oklahoma war
rant money belonged to the general rev
enue fund, it was deemed best that if [
could get some one to take them at par
that the state would be ahead as far as
interest was concerned and save the
state the disgrace of not being able to
pay AlcA just QEDAS- 80 instead OF losing
a cent the state vas ahead and leave it
to any fair minded citizen and tax payer
if I could be criticised for my actions
i'm this matter.
Filed Brokers Letters.
On October 25, 1905. long before the
examination was over I filed copy of
a letter written to the governor by the
school fund commissioners, who were in
office during the time that I was state
treasurer, with the state accountant
showing that they had allowed the clip
ping Of coupons to bond brokers. / ask
ed him to make it a matter of record in
his report. I also filed with him letters
from five bond brokers. namely: L. A
Bigger, c. +. FOote & Co., D. H. Mar
tin, NJ. c. Kelly and Kelley & Kelley,
stating that they had sold bonds to the
school fund commission and had been al
lowed to clip the coupons from the var
ious bonds they had sold so as to make
the interest as agreed upon by the bond
brokers and the school commissioners.
These letters were the very best of
evidence as they were minute in every
detail. ] also filed copies of state
ments, made to me bv the various bond
brokers. showing which bonds they
had sold and from which they had
clipped coupons and the number
clipped These letters including the
one from the school fund commission,
] very kindly asked the accountant,
Mr.. d. c. Morris, to make a. matter of
record in his report to the governor.
He took them and I supposed that he
would do as I requested. but there is
no mention made of them in his re-
port
Admits Shortage of 1925.
These letters of the bond brok-
ers cover every item reported irregular
i'm Mr. Morris report except five which
have been unable to learn who sold
the bonds to the school fund commits
sion or enough to satisfy myself in
reference to the irreguiarity of the
items.
They consist of the following items:
Brown county, city of Norton-.....s 5000
johnson county Observation-Disclosures. 2. 625. 90
COwley county Observation-Disclosures. l. $40. 90
Two items from Reno county
Second ....... .......... 1000
Sumner county, Guelph twp. -. $4,000
Total .......... .................... 81. 215. 90
81 have not fully satisfied myself in
reference to the irregularity of these
items, but I am satisfied they can be
reduced over half.
Explains How Work Is Done
i take it that if there should be any
irregularities under my administration
that they were in the failure to ac-
count for the intermediate coupons. I
do not assume that it will be claimed
that where the coupons were retained
by the bond brokers, or ones that were
not charged TO my office by the state
auditor on his records, that the re-
sponsibility of accounting for them to
the state viii devolve upon my admin
istratiOn. but where the coupons are
not accounted for in their numerical
order, and were charged to my office
in the auditors office. I suppose that
it is possible for the responsibility to
rest upon my office and make an ex-
PLANTATION necessary.
When a remittance was made to
the office of the state treasurer it was
the duty of the state treasurer or the