The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-09


WHO GOT THE MONEY!
IN long communication c. e.
Foote. one of the best known of the
bond brokers of Kansas. takes it for
granted that the S6O.000 shortage in
the school fund that was discovered by
Accountant Morris were the only
coupons clipped by bond brokers from
state bonds. and he further assumes
that all of the 100000 worth of
coupons did actually go to brokers.
Upon this assumption Judge Foote
writes very plausibly.
The State Journal does not wish to
question Judge Foote's motives in
writing the communication, for he
may have known no better. but one
would suppose a man of his general
Information would have known better.
As matter of fact the 100000
shortage found by Accountant Morris
does not represent the coupons right
fully clipped by brokers at all Brokers
were allowed by the school fund com
mission to clip thousands of dollars
worth of coupons besides these, but
such coupons were never registered as
the property of the state, and there
fore Mr.. Morris took it for granted
that they belonged to the brokers.
In this class were the $500 worth
Of coupons clipped by ]. r. Burrow
off of $4,000 worth of Smith Center
bonds. This was virtually premium
OF Is per cent for those bonds. In
other words the state paid 115 for five
per cent Smith Center bonds, yet Mr.
Morris did not include that S2,1OO in
his shortage. Those coupons were not
registered in the auditors Office as the
property OF the state.
Another instance is the case of
S31, 600 worth of bonds of Rock Greek
township. Pottawatomie county,
somewhat doubtful investment, by the
way, owing to the fact that the original
bonds were issued to aid the Kansas
& Southern. a. railroad that built only
six miles of road which has since been
abandoned. These bonds were refund
ed by A. A. GODDARD and sold to the
present school fund commission, Mr.
GODDARD being allowed to clip several
thousand dollars worth of coupons
These coupons are not included in the
$780, 600 shortages.
There are dozens and dozens of sim
liar instances. 1t is quite likely, in
fact. that the total amount that went
to bond brokers would figure up into
the hundreds of thousands of dollars
instead of only 100000
That $4,000 is not what was clipped
by brokers with the consent of the
school fund commissioners. 1t is what
was clipped after the bonds and cou-
pOns became the property of the state,
1t which time no bond broker would
have a claim on them. If any broker
got any of those coupons-coupons
that had been purchased by the state
1t is very evident that he got them
illegally and should be made to pay
the money back to the state.
AS has been explained before in
these columns, when a series of bonds
is purchased by the commission a Ger
tiieate setting forth the purchase, the
amount of the bonds and the amount
Of the coupons attached to them. is
sent to the state auditor BY the COM
mission. Coupons that bond brokers
were allowed to detach are not in
cluded in that amount This GER
tiicate is placed on file in the auditors
Office, and the bonds and number of
coupons on each is registered there. 1t
is coupons that have been so certified
or registered that are included in this
$4,000 shortage.
Judge Foote says that he has been
allowed to clip coupons from bonds
that he has sold to the state. Of
course he has. But he probably viii
not claim to have clipped any after
they had gone through the auditors
office and become state property.
There were those Garden City cou-l
pOns, for instance. Judge Foote
handled that deal. The certificate sent
to the auditor with the bonds and the
auditors register shows that the full
amount of coupons were on the bonds
after they had been purchased by the
state. But somebody R. Brown,
of course-clipped off some of those
coupons afterwards and kept the
money until the state accountant be
gan investigating the matter.
Judge Foote will not claim that he
got those coupons. Who did get them ?
Tom Kelly knows. He sent them to
New York to be cashed and had the
money sent back to him personally. !
Did he give it to "a. R. Brown" or /
put it in his own pocket? In either
event he would be responsible, for the
money should have gone into the
school fund. and it would have been
just as much embezzlement for him to
give it to "a. r. Brown" or some one
else as it was to keep it himself.