The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-12-10

ISnIlary, IN OGher words, they would
| make a charge for cashing all checks
for the state.
The state auditor insisted that the
bluff of the Leavenworth banks
should be called; that if the Leaven-
worth banks insisted on making a
charge on the state for exchange, that
=, the checks received by the twine plant
| should be sent direct. to the state
| treasury, and cleared through a state
| depository bank. The auditor insisted
| that the Leavenworth banks should
| not be allowed to use state funds at
2 per cent, without giving any securf-
ty while the regular state repositories
| are obliged to pay 8 per cent, and
keep municipal bonds on deposit with
| the state treasurer greatly in excess
| of the total amount of their deposits.
1t is said that some strong political
influence has been at work to force
the state to favor the Leavenworth
| banks, and give them the state bind
| ing twine plant funds to operate on.
instead of placing these funds where
they belong. in the state treasury.
Governor Hoch's Statement.
In discussing the situation today,
Governor Hoch said: "I can not see
that there is any need of making
| secret of this controversy. 1t is mat
ter which appears to be about half legal
and half business; it is question part
ly OF what the law requires. and partly
what sound business judgment re-
quires. Warden Haskell says that for
the proper conduct of the affairs of the
institution, it is necessary to keep a
balance, and a big balance, in the
Leavenworth banks. Unless they do
have balance, the banks refuse to
handle the business of the penitentiary.
They VIII not grant free exchange to
the prison unless they are given a bal
ance of state funds. The item of ex-
change alone would amount to thou
sands of dollars, and it is worth taking
into account. This is no new system
IF q hrIS Of 11n
plant. 1t has been done this way ever
since the plant was started. 1t is a
matter which chiefly concerns the au-
ditor's department, and l know that
terest in the matter. He simply wants
to make as good a showing as possible
for the institution of which he is the
head. For that reason. he likes to allow
the funds of that institution to accum-
ulate interest for the benefit of the in
Stitution.
'I understand that there is now on
deposit in the Leavenworth banks about
forty or fifty thousand dollars belong
ing to the binding twine fund. but of
this 900 will be needed in a few days
to pay for ssal ordered.
''The Oklahoma warrants also enter
into this controversy to some extent,
but as 1 understand it. they are large
tion between the treasurer and the
warden, and merely involves the ques-
tion of who shall hold these warrants
pending their maturity"
State Is Losing Interest. Says Tulley.
State Treasury Mark Tulley seems to
think that Auditor Nation has done the
right thing in compelling Warden Has
kell to keep the binding twine fund in
the state treasury.
1.-The handling of the state revolving
fund is a matter of considerable inn
portance, and 1T has been customary
to keep some of that fund in the state
treasury, and some at Leavenworth.
Recently however, we have had none
of this fund in the treasury. Warden
Haskell can get only per cent on the
money in Leavenworth, while the state
repository banks pay a minimum OF
~ per cent. L understand that there
is about 100000 over there at Leaven-
worth most of which should be in the
state treasury. 1 did not go into the
conference yesterday but had talk
with Warden Haskell. Warden Haskell
and I have had some difference of opin
ion concerning the proper method of
handling the Oklahoma warrants. Mr..
Haskell thinks that the proper plan is
for him to keep the warrants down
there until their maturity, instead of
depositing them in the state treasury.
So he is keeping not only the binding
twine fund, but the Oklahoma warrants
as we'll, in the Leavenworth banks"
Attorney General +. S. jackson, In
whose office the conference of Monday
afternoon was held, said: II have moth |
ing whatever to say about this conro- |
versy."
State Auditor James Nation. the man |
who started all the rumpus, is also sill |
ent, and says that he doesn't want the |
affair to get into the newspapers be- |
cause it is all settled and besides, he |
doesn't think it is much of a story, |
anyway.
Asked concerning the amount of |
money in the LeavenwOrth banks, Mr.. |
Nation said: There is about $4,000, |
but about $4,000 is soon to be needed |
by the plant and would not be disturb |
ed Enough money must be kept at |
Leavenworth to meet the current needs |
of the plant