The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-11
Ex-State Treasurer Grimes
Agrees on Settlement
To Cover Shortage in Treasury
During His Term.
Does This "TO Avoid Long
Drawn Out Lawsuit" )"
IN NO WISE TO BLAME
Says Mr.. Grimes, Who Declares
He Is Victim
ssOf Mistakes and Unfaithfulness
of Others"
Settlement Outcome Of Action
of Attorney General Coleman.

Ex-State Treasurer Frank F. Grimes
this morning paid over to Attorney Cen
eraI Coleman the sum Of 50, 3S1.25 IN set
tlement with the state Of Kansas
amounts which were unaccounted for
as shown BY the official investigation OF
the treasury in connection with short
ages existing in the state school fund
account.
Attorney General Coleman had in
view the bringing Of a suit against Mr.
Grimes to recover for the state, but
nearly a year ago when the Haskins &
Sells report was made public Mr.. Grimes
admitted that about $1,000 seemed to
be clearly unaccounted for and de-
clared his readiness to make good to the
state.
During the past year Mr.. Grimes has
been trying to arrange a settlement
with Attorney General Coleman and has
now done so. Mr.. Grimes in a concise
statement sets forth his reasons for
paying this money, admitting that as
treasurer he was responsible for a large
amount of the above named sum, that
the state could undoubtedly recover
much of It and thereby assess the costs
upon Mr. Grimes and put him to large
expense.
Mr- Grimes says he had no knowl-
term. but declares that the state shall
not suffer. although he is in no wise to
blame He says many of the appar-
ent shortages were due to Incomplete
records and the practice of allowing
bond brokers to detach coupons, but
that he acquiesees~ in the conclusion
OF the attorney general although he
believes he IS paying more than he
should, and declares he is the victim
of the mistakes and unfatthfulness of
others. and that he would rather have
the name Of being honest and the con-
fdence of his friends than any amount
of money.
Mr.. Grimes was state treasurer from
January, 1899, to January. 1903. Dur
ing that time in direct charge of the
Office with State Treasurer Grimes were
Assistant State Treasurer It. T. Kelly
and Chief Clerk Roy Richey. Mr.
Grimes does not charge or accuse any
cne of taking this money He says
part of the shortage may be due to
parties entirely outside Of the state
treasurer's Office but for about $4,000
of it some one within the Office he be-
lieves was responsible He will make
no charges against any one but said
this morning. Il do not believe T. T.
Kelly took a dollar of this money"
Mr.. Grimes statement in full fol-
lows;
In order to avoid a long drawn out
law suit with its attending worry and
expense Of lawyers, witnesses and court
costs and feeling under a moral obliga-
tfOn to do so, I have agreed to make
settlement with the state of Kansas on
the basis of S93S1-2 .. 1t is the judgment
Of the attorney general that this is the
amount for which my administration,
as state treasurer should be held re-
sponsible. said last January when
the HaSIEinS and Sells report was made
public. that there was about seven thou
sand dollars which appeared to be un-
accounted for. feel as though should
have been given the benefit of several
items. by the attorney general, which
would have lessened the amount con-
sideTably- ] had no knowledge of any
loss at the expiration Of my term of
Office but the state shall not suffer any
even though I am in wise to blame
for st
MANY Of the apparent shortages
4 were caused by the practice Of allow
ing bond brokers to detach coupons
from bonds sold to the state and there
is no complete record Of the bonds
sold during that time I have letters
from bond brokers stating that they
leZ1tinately received the clippings Of
certain coupons for the sale OF bonds
TO the state. some Of which I am now
compelled to pay although they were
never charged against the treasurer
or never were in the treasurer's office.
However. the conclusion of the attor-
ney general Is that l shall pay the
above amount and T. therefore, ac-
quiesce IN his decision
II never had one penny from the
state that did not honestly belong to
me / have been the victim OF cir
cuustances because OF the careless
ness mistakes and unfaithfulness Of
others and it is a very great hardship
for me to have to pay this money. I
am. however. deeply grateful to the
people Of Kansas for the confidence
they have shown in me during the dis
ctlssion Of this matter. The press has
been most kind and 50 have the people
everywhere, and this has helped me to
maintain my position and credit before
the world. I would rather have the
name of being honest and have the
confidence Of my friends and the peo-
pie than any amount of money"
Coleman Turned Reporters Out
After Mr.. Grimes had prepared his
abatement and drawn a check to the
1rder of the attorney general for the
amount Of the Indebtedness. he went to
the state house and first gathered UP
All the newspaper men in sight and
told them of his intentions. They went
with him to the attorney generals of
Nce and Mr.. Grimes told the attorney
general Of his mission. z am willing