The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-07-06

zens' Savings bank Of Kansas City.
! gave a deposition relating to the sale Of
/ the bonds to p. F. Dunn.
Nichols Clears Up Count Two"
The morning session opened with a
long deposition by F. W. Casner. the
! Kansas City bond broker, who has sold
many bonds to the state school fund.
/ ped. by consent of the school fund
| commissioners. the Harper and Paw
nee county coupons for which Treas
urer Kelly was held responsible.
President F. R. Nichols of the State
/ Agricultural college. testified in dep
! osiuon that the bonds of Gray county
4 We're purchased in December. 1902,
! but under agreement were not to draw
J interest until January. 1904. The
! bonds of school district No. I, Dewey
county. Oklahoma, were purchased
/ October I, 1901, but under agreement
+ were not TO draw interest until Janu-
/ ary i. 1904. This explained all the
alleged shortage In count two of the
complaint.
Why were not these coupons shown
as property of the college ?" was one
of the questions.
| a., Because they We're clipped to re-
duce the rate of interest. They were
never the property Of the college was
/ Nichols reply.
State superintendent I. L. Dayhoff
! was recalled. and read from the rec
/ OIQS the resolution OF the sen OOi IQnQ
/ commissioners declaring that T. T.
J Kelly had never sold the school fund
commissioners any bonds. and that all
entries in the books to that effect are
incorrect. This closed the testimony
for the defense.
Coleman Wipes the Slate.
Attorney General Coleman then
opened his argument on behalf Of the
state. He said:
eThere are certain Of the items in
this complaint which have been and
are entirely explained by the testi-
mony- I shall refer to those as we
proceed He then discussed the Au-
gusta township issue. OF this issue.
coupon No. 8 is in dispute. Part of
the No S coupons We're cashed by
Dunn. the Wichita bond broker. who
engineered the deal. The rest of the
No. coupons have never been cash ed
by anybody. and the money to pay
them is still in the hands eff the
county.
The coupons seem to be missing, but
General Coleman held that the rec
ords showed tn ese coupons to right
fully belong to the state. They are
charged against Kelly, but 1t Is not
claimed that Kelly ever collected the
money en- them.
Concerning the missing No. cou-
pOns of Leroy city and township bonds,
General Coleman said that if the rec
ords of the auditors office should be
!
would be nc shortage, for the auditor
shows that coupons Nos. / and 2 were
both detached. However" said Mr..
4 Coleman. ''the situation is peculiar
/ The auditor shows coupons Nos. / and
2 detached. and vet the state treasur-
er's books show that the state collect
4 ed interest on the No. , coupons. If
/ those two coupons we're really detach-
I ed. the state was entitled to nc money
Then the treasurer went ahead and
o YIN ant tn rifU and
/ township I say that I doubt the au-
4 thority of the treasurer to make any
/ such repayment
isn't that merely matter of book
J keeping?H said Judge Dana
We'll. it is a matter for the court
+ to decide whether Mr.. Kelly had au-
/ thority to pay back that money"
General Coleman then took up the
/ other allegations of shortage. and ad-
/ mltted that there was nothing Ia them
tending to show responsibility on the
part OF the state treasurer. He said
that some of the transa ctions We're Of
a suspicious nautre but did not re-
fect upon the treasurer. He then
J asked permission to make few re-
/ marks concerning his idea CT the stu
alton and made the statements quoted
t at the beginning of this story
Dana's Opinion About Oklahoma
Warrants.
The attorneys then argued the de-
murrer of the defense to the Oklaho-
ma warrant charge after which Judge
1 Dana said.
The warden Of the penitentiarv en-
/ tiers into 3 contract to keep the Okla
/ homa prisoners at certain price
Quarterly he IS to send Oklahoma a
( statement of the amount due This
+ was done. The statements We're pre-
+ scented and warrants issued. suppose
4 that these warrants represent a cash
+ transaction The question is. what is
4 the treasurer's duty with regard to
those warrants Ny view is that
warrant is different from q promfs-
sorry note It is due bill II is the
+ treasurer,s business to get the money
+ or those warrants as soon as possible.
+ There Is no law prohibiting him from
cashing that kind of paper. 1t seems
] lo me thar u can be urged that i vas