The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-05-20
Bonding Company Must Pay
First National Loss.
Jury Decides Responsibility AT.
ter But Two Ballots.
A DRAMATIC ENDING.
b. w. Blair's Arrangement of
Kelly and State Officers.
Says Former Treasurer's Hyp-
motto Influence Saved Him.

The jury in the suit brought by the
state against the First National bank
and its sureties, the u. s. Fidelity
and Guarantee company, to recover
$i39.003.06 of state funds lost in the
failure of the bank, retired to DELHI
crate over the evidence at 4:3o Tuesday
afternoon. At $50 the jury reported
to the court, and their verdict was for
the plaintiff. This means that the
banks sureties are liable for the statas
the sum mentioned. The jury only
took two ballots to reach a decision.
One of their number stated that the
judges instructions helped them in so
quickly reaching an agreement The
only point upon which they had to
decide was the character of the ac-
count kept by Kelly in the bank,
whether it was a collection or deposit
account. The circumstances all point
ed to deposit account and unlawful
methods of handling the states money
but theoretically 1t could be said that
all the paper placed in the bank by
Kelly was for collection, even though
he outraged the law by leaving in the
bank in immense sur,r for months at
a time. In both the Judges instruc-
tions and the plea of the state, the
proposition was advanced that the
banks sureties were liabl. even though
KNlly's actions in the handling of this
fund were irregular and illegal.
r. w. Blair. attorney for the defense.
in speaking of the case last night, said
that he did not know for certain
whether an appeal to the supreme court
would be taken. He would have to adj
wise with his clients. He was of the
opinion that now the case of the State
VS.. T. T. Kelly and his bondsmen would
never be brought to trial.
This case began in court Wednesday
of last week and was closed late Tues
day evening of this week. The sum of
$4,000 was involved. The bond given
by the banks Sureties was so wOrded
as to cover even the multitude Of trans
gressions in the handling of state
funds by the treasurer and the bank
The law in the matter of deposits for
collection was also very broad TIL,
state stood on it's bond and the foun-
dation was good and firm. The de-
Tense brought out strong case against
Mr.. Kelly's actions state treasurer
and showed by the strongest of cir
er and the bank juggled with state
funds and the large profits therefrom
did not 90 to the state.
Judge Dana's instructions and argu
of Tuesday down to 4:3o in the even
ing.
He Defended Coleman.
Frank L. Williams of Clay Center,
for the state, yesterday evening in his
reply to Scandrett's criticism in the
morning of ex-Attorney- General Cole
man declared that 1t was the place of
the attorneys for the bono company to
look after the condition and methods
of the bank rather than Colemans
place to worry over the bond or actions
of Mr.. Kelly. If a pound of guilt or
shoulders, said the speaker, a ton rest
ed upon the attorneys for the bond
company. Mr.. Williams made a warm
and exhaustive defense of Mr.. Cole
man. He closed his eloquent address
with an illustration in which he COM
pared the efforts of attorneys for de-
tense to cast aspersions on the actions
of Messrs. Kelly and Coleman to the
act of a certain fish of the sea- which
when about to be worsted by its enc
mics emits a volume of black and Of
fensive liquid, and covered by this
shadow makes its escape. He said
that the attorneys for the bond COM
pany were muddying the waters about
Coleman and Kelly in order to better
make their escape from a bad position.
Archie Williams of Topeka followed
the Clay Center Williams in an eff
fective address for the defense. Mr..
Williams went carefully over the often
debated ground of the character of
the account Kelly carried in the First
National and by his logic placed Mr..
Kelly's actions in most unfavorable
governed by the law. The manner in
which the business with the bank was
transacted and all the circumstances
surrounding 1t made the evidence in
strong as though it were direct instead
of circumstantial He showed where
the first deposit Mr.. Kelly placed in
the bank. the $155,0OO received from
Mr.. Grimes. netted the bank $287 at
per cent during the ten days it was
allowed to remain there. Mr.. Williams
dwelt with emphasis on the fact tina,
Kelly carried a half million of state
FUNDS in bank that was only bonded
for $250.O00 This alone was sufficient
evidence to place the account Kelly
carried with the bank beyond the law
for the state only contemplated an &C.
count of less than S250,000 with the
bank if deposited for collection only
Ihis fact alone stamped Kelly's &C.
count with the bank as a deposit ac.
count.
r.. w. Blair's Sensational Speech.
Robert w. Blair closed for the de-
tense in a speech that was the fea
ture OF the trial. both in sensational
charges and the eloquence with which
BE clothed his logic and his argu
nents Mr. Blair prefaced his tall
with the statement that he had taker
this case with reluctance, knowing tn,
bitterness that must be engendered /,
such hard fought legal battle. HI
had personal friends on the othe
sue ne SAID ana would be as mod
crate in his statements as he couI,
and still do justice to his clients an,
his position as a court officer Bu
he would call a spade spade an,
did not propose to mince matter
when referring to plain violations O
the law and neglect of official duty
II want the state to be made Who'll
In this matter of it's loss of owe
100000" he said. either on thi
bond. If the jury believes that Nj
Kelly acted at all times within tn
law in his handling of state fund.
or on the bond of the state treasure
against which case is also pendinf
The state is out its money in thi
case because our hired men at tn
state house at that time were to