The Topeka state journal., 1909-03-22
SCHOOL FUNDCASH
Question About Its Depletion
Still Unsettled.
John Dawson Says Governor Did
Right to Veto Item.
MONEY OF CITIZENS.
Large Sums Are Held Which
Don't Belong to Fund.
Treasurer Tulley States Posi-
tiOn and Quotes Authority

The controversy between State
| Treasurer Mark Tulley and John Daw-
son, private secretary to the governor,
over the governors veto of the item
in the appropriation bill passed by the
last legislature making provision for
the payment of $21,500 from the general
fund to the state school fund which the
latter had lost as a result of worthless
investments, is assuming proportions
Dawson today makes reply to Tul-
leys criticism of the veto by sarcastic
allusion to the state treasurer as as
suming the prerogatives of constitu-
by quoting Chief Justice johnson in
support of his statements and gently
inquiries into DaWsOn'S qualifications as
an expert accountant. The statement
by Mr.. Dawson is as follows:
Dawson's Statement.
tI see that my friend State Treasurer
Tulley has set up as constitutional
lawyer and I want to be among the
first to extend the right hand of fellow
ship to him on his entrance into our
ancient and honorable profession. His
solicitude about maintaining without
impairment the permanent school fund
touches me to the heart. For two long
years I did little else than chase over
the western prairieS of Kansas and
Oklahoma to rescue from loss, forget
fuIness and oblivion about a quarter
of a million dollars of bad investments
of the permanent school fund and of
the agricultural college endowment
fund and am really entitled, / think, to
have an opinion on the merit of the
governors veto of the item of $21,500
which causes Brother Tulley so much
SleepleSs worry.
But the veto is justified by the opin-
ion of the attorney general in his last
biennial report at page IA. There the
attorney general says that there are
school fund which do not belong to that
fund but which do belong to private
citizens who have paid the same into
the fund through void school land
titled to recover such moneys SO err
roneously paid into the school fund
and that the moneys wrongfully turned
into that fund are merelv trust funds
for the benefit of the persons paying
the same.
ITO avoid litigation and expense to
the innocent purchasers of school land
under void sales, the legislature appro-
PIRATES money out of the general reve-
nue. to pay these claims upon the per-
manent school fund and leaves the
moneys so wrongfully paid in the fund. |
The legislature has been making ap-
propriations of this sort ever since the
permanent school fund was started
forty-five years ago.
I'm this same bill which contained |
the item vetoed were appropriations |
sons who had enormously paid money |
into the permanent school fund. All |
these appropriations are made from the |
general revenue fund and if Mr.. Tulley |
will take the trouble to go through the |
session laws from 1865 to 1909 he will |
find that appropriations from the gen. |
eral revenue fund to pay persons who
have paid moneys into the school fund /
for which they got no consideration |
amount to considerably over 100000
Furthermore, as the governor point |
ed out in his veto, nearly $350000 went |
into the permanent school fund under |
the Bush law which was nothing more |
than a reimbursement from the gen
eral revenue fund to the school fund |
for all losses which had occurred in |
the past and for all losses which are /
likely to occur in the next one hundred |
years.
s"The statement that the 81, 500 of
fraudulent bonds in the state treasury
puts Mr.. Tulley's books out of balance
or that it makes them speak a lie is a
mere crotchet, a whin, a. caprice. The
legislature at any time at his request
will authorize him and the auditor to
charge off these bad investments.
1.-The auditor and state accountant or
my other expert bookkeeper will tell
him it is hardly necessary to have a
statute to do that. Suppose Mr.. Tulley,
With the advice and consent of the audi
or and the board of treasury exam
ners should do that as a. matter of
sound bookkeeping, who is there in the
Itate and under what authority could
uch a method of bookkeeping be chal-
enged? The answer comes clearly
,nly the attorney general; and it was
With the advice and approval of, the
tttorney general that the veto of this
tenn was made II
''I bear willing witness that State
Treasurer Tulley is a good officer and
/ faithful custodian of the public funds,
,ut 1 am almost persuaded that he is
,Iaying little politics on the subject of
his veto.
This administration was greeted with
he very cheerful news when it came
nto power two months ago that partly
IS a result of following Mr.. Tulley's ad-
ice in making levies for the last two
ears, we would have shortage of from
,aIf q million to a million dollars this
ear before this years taxes are avail
,ble and the governor sought persist
ntly through the session of the legis-
ature to keep down any possible deficit,
md to keep down the state taxes and