The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-08

commend to your most favorable con-
Stderation the recommendations of the
lsn warden, Mr.. D.. w. Travis, and
YAM sure personal visit to the institu-
tions located near Pratt, by the mem
pers of this legislature would make
each and all of you enthusiastic sup
porters of 1t.
State Treasury Examination.
When I came into office two years
ago was confronted with the duty of
continuing an examination of the state
treasury already began, growing out
OF charges of irregularities in that de-
partment of state. The legislature ap-
propriated SIS, 900 for this investfga-
ton 1 at once appointed high class
advisory committee to assist me IN
this delicate and difficult task. consist
ing of Judge A. W. Benson, Judge
Ansel R. Clark, and ex-State Treasur-
er 5 I. Howe These gentlemen Were
selected because of their character.
their knowledge of law, and their
peculiar fitness for the task, that the
investigation might be at once lifted
above suspicion of personal or par
uzan purpose ana might con- nm ma ne
absolute public confidence. for the IS
sue involved sacred personal charac-
ter on the one side and sacred state
interests on the other. With the ala
of these gentlemen, I selected the Wen
known accounting firm of Haskell q
Sells to make the investigation, ana
with them also formulated tns IN
structions for the investigation Inc
amount of work and was very thor
ough and complete. Upon It's COM
pletion an elaborate report from the
accountants was filed with me.
carefully compiled synopsis of this re
port was given to the people through
the public prints and the report ltseH
thrown open to public Inspection l. ne
report showed an amount aggregatlng
s7SsOoO which needed explanation.
Every one familiar with the IactS
knew that there was no such real
shortage. This total sum 1ncluueu
about $4,000 interest on what are
known as Oklahoma warrants, which
the Shawnee, county district court as
soon as the question reached that III
bunal decided was not shortage.
Much of the remaining amount, as
every one knew, involved what are
known as clipped coupons.
Under the law the school fund com
missioners are compelled TO keep Ilie
school fund invested, but they are aiso
forbidden to pay premiums FOR ponos
As all desirable bonds command
premium, the school fund commissioners
were either compelled to invest IN IN.
ferior bonds or devise some metnod OF
complying with the proh1o1tlVe premium
feature of the statute. This was zone Dy
deVising the method OF permitting Inc
seller TO clip enough interest coupons TO
make up the difference between the
premiums which the bonds COMMANDED
on the market and their race NaIue' As as
the whole report involved matters LOT
judicial rather than executive 1nterpre-
tation and decision, 1t was turned over
to the attorney general OF the stdlS,
with written instructions to take sucn
legal steps as in his opinion might De
necessary to recover whatever, II any,
of the whole amount involved In the
SIS, 600 might be recoverable. In mar
rnony with these instructions, the at
torney general brought suit against the
present state treasurer for the amount
covered by his term of office, ana, az
ter a lengthy trial, the court decided
that the state had no case against the
treasurer, Mr.. T. T. Kelly. The greater
part of the unexplained amount was
incurred during the administration of !
Mr.. Kelly's predecessor, Mr.. Frank r. |
Grimes, and that gentleman promptly |
offered to settle for any sum when /
could not be satisfactorily explained and
which might seem to be due the state
from his administration from bad book
keeping, defective records, or other
causes, though protesting that he had
never received penny OF personal
benefit from any shortage that might
exist, statement which is fully be-
1ieved by all who know him. In har-
mony with this arrangement Mr.. Grimes
paid into the treasury $9,3S125-
The investigation was further valu-
able in revealing the imperfection of the
system of bookkeeping which has long
been in vogue in the business depart
ments of the state government Ex-
pertS have since been at work perfect
ing a plan for the permanent improve
menr of this service, which will be
submitted for your approval, and which
] trust will be given. If the investiga-
ton results in the correction of this
imperfect system of bookkeeping, this
fact alone will be ample compensation
for the labor and expense.
Treasurer's Bond.
Previous to the enactment of the de-
postory law two years ago, the state
treasurer was required by statute TO
give bond in the sum of one million
dollars, and no provision was made for
the appropriation of any gam out of
the public treasury for the payment of
the expenses of this bond, if a surety