The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-07-05
KELLY CASE is UP
State Suit to Recover Shortages
ia Treasury.
Both Sides Agree to dispense
With Jury.
LEFT TO JUDGE DANA.
Rules Haskins & Sells Report
May Be Considered.
Effort Made to Explain Absence
Of Coupons.

Ger 4 ellyS ADMINISTRATION SotAe -
for trial this morning in the district
court
Both sides we're ready for trial, and
Attorney General Coleman at once
started in with the presentation Of the
s-ate's case.
Rossington & Smith are represent
ing Mr.. Kelly. The trial is a court
case. both sides having agreed TO ols-
pense with the jury
The state won quite a decided VIC
tory this morning when the court heiu
that the Haskins & Sells report, con
tanning a full statement of the alleged
shorta ges. should be admitted into evil
dence. The court, however, stateo
that he would reject all that portion OF
the report except the statement OF
facts
Treasurer Kelly was on the witness
stand for some time this morning, ana
festifed concerning the Leroy town
ship deal, and other deals, claiming
that the coupons we're clipped before
the bonds were bought The other Wit
nesses examined this morning were
state Accountant J. c. Ganord ana
state Auditor Seth G. Wells
j. c. Gafford the state accountant,
was the first witness at the afternoon
session He was questioned at length
concerning his connection with the col
lection of material for HaslSins &
Solls.
Questioned concerning his investiga-
tion in Custer township, Butler county.
Mr.. Smith for the defense asked.
What did you find out about coupon
No. g. bonds s to 1872
I'VE found that the coupons had new
er been presented at the fiscal agency,
or the balance paid by the county.
You investigated coupons L and
detached from city Of Larned bonds,
did you not@
Yes. sir
ITO whom were they paid2"
They were paid to r. w Casner.
You reported this 10 Mr.. MorrisI
s.Ye es. sir"
who was Mr. Morris2''
he was Haskins & sells representa-
what about coupon No. OF
Banner township"
Il reported that they were paid to
wv Why did You You report this charge
against the state2"
Il did not. I simply reported What
I found.
involved in this case"
Have you found any that we're
stamped the property Of the state?"
81 have not
That's all"
General Coleman then said:
But YOU have found coupons the
property Of the state which were not
stamped"
Yes. sir
How about coupon No. ? in Leroy
township
we object to that said MI Smith
This should be confined to the allega-
tions of the petition. Leroy coupon No.
is not in the suit
Objection sustained said the court.
General Coleman then offered to show
by witnesses that some Of the coupons
were not stamped as state property.
That might be admissible said
Judge Dana
W. NJ. Scott. county clerk Of Corey
county. was called by General Coleman
to establish this fact
Mr.. Scott stated that he had in his
possession coupon No. 2 of Leroy town
snip. Mr.. Coleman offered them in evil
dence. MI Smith objected
We want to show by testimony"
said Mr.. Coleman. that the auditors
records were not always properly kept
and thai they do not correctly show
the number Of coupons attached to the
bond
The court sustained Mr.. Smiths OBJ
lection, and refused to admit the testi-
mony.
DaylaofF ON the stand.
J. l. Dayhoff. state superintendent of
public instruction was called. He testi-
fied concerning the records OF the schoo;
fund commission The minute book was
Of showing the time of certain bond
purchases
what have you for the date Of March
70. 1908. relating TO Augusta township
Butler county,
Mr.. Dayhoff read the record relating
TO the purchase of s1o,500 worth of these
AZ per cent bonds. Mr. Davhoff was
also asked to read the minutes relating
to tee purchase Of the Leroy township
BEtysr county bonds. which amounted
10 $4,000.
rs there anything in your record
showing the number of coupons attach
ed az the time of purchase -
There Is nothing to show number at
3.etsnee or number clipped believe Mr..
ilAelly himself suggested that the records
ghouId show this -
Then there was no way of telling
bow many many coupons had been de-
Not at that time"
simply offer this testimony" said
General Coleman, TO show the general
10y ~ which the records were kept at
tdat time
On cross examination Mr.. smith
Your records show that the Au-
f1sta township bonds were sold by the
Citizen bank. Wasn't it really Dunn
tEst sold them -
II think it was. Dunn erarlox-as l,s
nsuk to make the ofer."
coapons and S %
yes. sir. that's my recollection.
Why was that %
he bonds commanded a premium.
II was to eQuaIize that premium
THAT was common practice.
wasn't it"s
sTes, sir"
Judge Dana said: Then those cou-