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

I the DOIuS were sofa. II. Il. Dunn. the
man who bought the bonds. claimed in
| his deposition that he clipped the other
u missing coupons.
But as was anticipated, the bond
brokers are the ones who have been raj
| lying to Kelly's defense. All the brokers
with whom Kelly has had dealings have
gone on record, either through oral tes-
/ timony or depositions that they have
been allowed TO clip coupons. They all
say that the clipping was authorized by
the board of school fund commissioners.
Some of the bond brokers specify GER
! tain ones of the missing coupons which
I they are willing to swear they obtained
/ and cashed.
Kelly claims that the following bond
/ brokers obtained the coupons which,
according to the haskins & Sells report,
are held as a shortage against him:
D. e Dunn, Wichita, Butler county.
s427.50.
D. E. Dunn, Wichita, Ellsworth coun-
D. E. Dunn. Wichita Pratt county.
sSs750.
F. ". Cassner, Kansas City. Pawnee
county. Larned city. $3.50.
F. w Cassner. Kansas City. Harper
county. Silver Lake township. $50.
F. W Cassner. Kansas City, Harper
county, Eagle township, $500.
Bank of Topeka. Douglas county S440
Chs. z. LObdell. Lane county S525
state superintendent Dayhoff. who
| was on the witness stand Thursday
1 afternoon. corrobOrated as far as aues-
4 toned the statements of the bond
/ brokers. He declared that he remen-
( bered that in all the instances of short
I age called to his attention that the
I commissioners had given the bonc
I brokers permission to clip the coupons.
Burrow and Coleman. the other two
members of the board of school fund
I commissioners. who are said to dis
/ agree with Mr.. Dayhoff's statement,
did not take the witness stand.
There was some talk today to the
( effect that suit might be commenced
! against the various bond brokers to
/ collect from them the amount which
/ they are said to have wrOngfully re-
tanned in some instances Such a suit
would depend upon the attitude Of
Burrow and Coleman, and it is unlike
" that they would care to get into q
dispute with Dayhoh.
The witnesses who testified at the
hearing Thursday were as follows;
For the state-T. T. Kelly, Seth G.
Wells, state auditor J. c. Gaford
I state accountant; A. F. kerns county
clerk of Douglas county. W. H Scott
county clerk of Coney county; l. L.
/ Dayhoff, superintendent of public in
struction; deposition Of James A. Ma
ton.
For the defense-W. A. Pearson,
county treasurer of Coney county;
George A. Clark, ex-secretary of state;
Judge c. z. FOote, H 3. Kelly, D. B.
Smith, assistant county treasurer of
Ellsworth county; I. L. Dayboff, John
r. Mulvane Walter F. Payne, assist
ant state treasurer. Dispositions were
read from William Bender Of Ellis
worth country, J. A. Paul of Ellsworth
county. Bert Stratman, county treas
urer of Ellsworth county, D. E. Dunn
of Wichita, J. D. Wright, cashier Cfti-
zens' Savings bank, Kansas City, and
others.
Pearson for the Defense.
" A. Pearson of Burlington. the
county treasurer of Coffey county. was
the FIRST witness called by the defense.
He was asked to produce a stub book
showing the receipt of SiS9 on Leroy
township bonds. and did So This stub.
also the drafts for $189 was introduced
in evidence
It developed on REORGANIZATION
that the payment had been made
year after the coupons became due.
Why was that?" asked Mr.. Cole
man.
Il really don't know" said Mr. Pear
son. Il asked my predecessor about
that but he didn't know, 1 guess. He
said they wouldn't pay the new cou-
pons till the old ones were taken up"
Mr. Smith said: "Those old Donds
were very slow in coming in, weren't
they2"
yes. sir. very SLOW
And the arrangement was that you
were not to receive interest on the new
bonds until the old We're cancelled ?"
I'VE object to that" said Mr. Cole
isn't it fact" said Mr.. Coleman,
that the old bonds were call bonds
upon which interest could be stopped on
cali2"
yes, sir. they wereg
George A. Clark, former secretary Of
state was called.
What was the practice in regard to
clipping couponsz9 asked Nj. Smith.
We had to clip coupons to get good
bonds
1t was the only way you could get
good bonds?.
Yes, sir
FOOte on the Stand.
Judge c. z. F'oote, of Topeka, was
called Mr.. Foote is a bond broker.
How long have YOU lived in Tope-
ka2" was asked.
"A bout ten years "
Did you in February. 1903 purchase
any Douglas county refunding bonds2''
I sold them TO the school fund COM
mission
They were dated January. 1903.
bearing ~ per cent?"
That's my recollection.
How long had you had them before
selhng?"
Il should say about four months"
Aren't you mistaken about that
time ?"
Maybe / am
Wasn't it about a month %
Maybe it was; am not certain.
Ou We're alfoWed a coupon
Yes, sir; that's my recollection.
who got that coupon p
4"I don't remember whether ] got It
or Mr.. Mulvane. Sometimes he got it
and sometimes did
las a matter of fact didn't you
give it TO Mr. T. T. Kelly to send to
the fiscal agency for collection ?"
II may have done So
Judge Dana said: I understand
that these coupons were detached with
the full knowledge and consent Of
the school fund commissioners ?"
Yes. sir, when they We're detached
at san."
And the coupons were actually de-
taehed, We're they -
Yes sir