The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-05-15

interest or even stock at all in the
rlrst National bank. Most of the
by the court as Improper cross ex-
ANIMATION. Kelly admitted that the
First National had cashed school war
rants Tor certain parties and that he
nag nag paid the bank money out Of the
state treasury for so doing.
The witness answers to a long series
OF questions developed the fact that
as state treasurer he carried one long
account with the First National from
January 13, 1903, to July 8, 1905, and
that this account was just an ordinary
banking account such as any indi-
Vloual would carry with a bank in the
course OF an ordinary banking busi-
ness rather than the deposit of paper
for collection as the law provided in
the matter Of state depositaries Here
Is a synopsis Of the testimony:
you never placed any one check
or instrument in the bank. no matter
Ior now large sum, and then after
collection had been made on this pa
per. draw out the cash and deposit it
in the state treasury"
mo"
"You let all the money collected bv
the bank from the states paper lie in
the bank and checked against it as
absolutely neded?"
did you ever attempt to keep all
the states money in the state treasury
as required by law?"
Kelly then admitted that he kept
from $4,000 to $4,000 in the state
treasury and an average of several
hundred thousands of dollars daily
In the First National and also money
in other Topeka banks that were de-
signated as state depositaries.
A half dozen questions all leading
and what compensation he received
for use of the state funds were over
ruled by the court.
AFTER Jan. 3, 1905, you favored the
First National altogether in your de-
posits did you not?"
mo"
The witness was then asked to read
from his bank book showing a bal
ance at the First National of $780,
600 on January 3. He was asked to
read further and his readings showed
balance in the First National on
February 1, Of $543.O00; on March 1.
a balance Of $6O6,OOO and on May 8,
a balance Of $63S,OOO.
Were the Topeka banks used as
state depositaries qualified after jan
uary 20: 1862"
after, February 2o?"
Ibid you not draw several checks
on the state treasury in favor of the
bank in payment for the bank cashing
school warrants ?"
A legal battle lasting a half hour
| followed this question. Judge Dana
| overruled the states objections and
the witness was called upon to ans
| wer. He started to explain this ans
wer, but Blair wanted yes or no. So
| the witness answered yes.
"a man holding a state warrant
! went to the First National bank and
this bank redeemed this warrant.
Then the bank came to you and you
drew a check on the state treasury
in favor Of the bank for reimburse
ment for the warrant it had cashed ?''
"Yes."
| "Why did you, when given three
checks for $4,000 each, and one
check for $1,000 by the Shawnee
| treasurer in payment for county state
taxes go and deposit them all in the
First National instead of placing each
check In the bank upon which it was
| drawn. especially three of these
checks were drawn upon state deposi-
taries?"
''I was within the law. 1t was the
custom and the easy way to do I
believed the bank responsible and it
had given an approved bond in case
of accident, 1t was the regular way
and conformed to business CUSTOM
"You have taken a great interest
in this case and helped the state pre-
| pare the case"
IF the state wins this case it will re-
| lieve you and your bondsmen from an
other suit brought by the state in this
| court to recover this money!?
| ct guess so.'
| ''The state has a suit now pending in
this court against you and your bonds
men for the recovery of this money lost
in the failure Of the First National
| has it nOt?"
Yes"
| Before the state filed that suit
against you it, or one of it's officers,
I made demand on you for the money
you had wrongfully and unlawfully
placed in the First National bank, did
it not?"
| You tried to get the state to bring
| suit against the banks bondsmen be-
| fore it brought suit against your own,
did you not, and wrote letter to that
effect?"
How did this case now on trial
reach trial f1rst?'
| I'm regular order"
Cross examination rested at $3.50 and
redirect examination was resumed and
lasted until 4:3O. No new testimony OF
particular interest was brought out at
| this time. The witness was excused
at 4:30. The state rested its case at
4:45. The defense Immediately demur-
red to the evidence. The demurrer was
argued at o'clock this morning.
Before resting it's case the state
| placed William Henderson, cashier or
the First National from 1893 to 1901, on
the stand, but his evidence was ruled
out by the court.
Kelly appeared confident yesterday
evening after court adjourned, saying
that I'VE would win the case 1t IS
certain that the case will be appealed
to the supreme court no matter which
side wins a verdict in this trial.
|
raer anauNcT clcln