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

To T. r. Kelly. State Treasurer:
Two examinations by expert ac-
countants, employed in connection
with two of the leading accounting
firms of the United States. have each
found that the state school fund has
been robbed of thousands of dollars
during the time in which you have been
connected with the state treasury either
as chief or assistant in charge of the
funds.
One of these examinations extends
back year prior to the time you en-
tered the treasury. and not dollar is
missing from the school fund during
that year.
The State Journal does not know
whether you, or T. Z. Grimes, or c. r.
Richey, or some one else got the vast
sum of money that has been stolen
from the treasury while you have been
connected with it. If Mr.. Grimes or
some one else is guilty your name
should be cleared. But in view of your
close connection with the treasury a
decent regard for the prophecies would
dictate that you sever your connection
with the treasury, pending a legal de-
termination Of the guilt or responsibility
for the thefts.
When it was discovered that some
thing was wrong with the state school
fund under Sam Lappin, although the
amount involved was only a few thou
sand dollars, Lappin Immediately re-
signed at the request of Governor Os-
born, PENDING AN INVESTIGATION
OF THE TREASURY.
It is true that most of these short
ages occurred under the Grimes admin
! Is 1a17f G
Mr.. Grimes assistant. handled most Of
the states money. This fact seriously
involves you in connection with the
matter especially in view of your for
mer record as county clerk of Miami
county.
During most of your administration
your Office has been under investigat ton,
but about seven months after you be-
came state treasurer yourself the sum
of S1,402.50 was stolen from the annual
school fund through a payment of in
terest on Garden City bonds. This money
both accountants traced to your hands
Mr.. Morris says the signature to the
letter spending the coupons to the fiscal
agency for payment is yours and the
endorsement on the draft by which the
money was received in the state treas
ury is yours and no denia1s on your
part can alter those findings. This
money was mysteriously returned to the
treasury a year after it was stolen, and
after your office-and your Office alone
discovered that the theft was being in
vestigated.
It is not necessary here to revert to
the Comanche county bond deal. in
which the State Journal uncovered the
fact that you embezzled 1920 of state
money by Ioaning it to finance the deal,
and that you actually made the state
pay S257 SO interest ON it's own money
for the time the deal was going
through, which facts are now formally
confirmed by the accountants report.
Neither is it necessary here to cite
the scandals which have arisen during
your administration. because of your
gross violation of law in depositing
state money in banks, over a half mill
lion dollars of which was caught in the
First National bank crash. Nor is it
necessary to speak of your taking 81
600 from the state treasury Illegally to
reimburse yourself for bond for which
you did not pay
On the strength of the Morris report
alone you should certainly lose no time
in placing your resignation in the hands
of Governor Hoch, pending a final de-
termination of the responsibility and
guilt for the shortages shown by the
report.