The Lamar register., 1912-05-08
KENEHAN SHOWS UP GOVERNOR
AS LIAR ON STATE FL
NANCES


Stdte treasurer hOduy heHendu
yesterday addressed a letter to
Governor Shafroth giving a detailed
account of the state finances, which
utterly repudiates the false repre-
sentations of the governor as to
the financial condition, and shows
clearly that the state of Colorado
is bordering upon almost certain.
bankruptcy.
He produced figures showing that
the revenues for the present per-
iod had fallen off $632.7S3.9 over
the previous biennial period of 1909
and 1910. He showed that the
extravaganza of the Shafroth ad-
ministration had cost the state
an additional $3SO,000 and that
there was an estimated balance of
but 100000 to run the state for
the remainder of the year.
Out of this latter fund there
must be kept in reserve $19S,0OO
for law suits which are now pend
ing before the courts, nearly $780,
900 for interest to be paid on bonds
besides the secOnd-class apprOpria-
tons which provide for the main
tenance of the state penal iDstitu-
tions.
Treasurer Kenehan also calls at
tention to the fact that unless the
supreme court disposes of all the
suits involving state money before
adjournment for the summer vaca-
assembly will have to be transfer
treasury to pay any of the sal
aries after the month of September.
He declares it is probable. that
the salaries of many state employees
which were placed in the first-class
appropriations by the last general
assembly will have to be transfer
red to the fourth class. where they
formerly belonged. In this event
two-thirds of the employees and
clerks at the statehouse will be de-
prfved of salaries, as no more of
the fourth class can be paid during
the present administration.
According to the decision of
the courts the letter reads. there
are several appropriations in the
Long bill. which belong to the
fourth class and may yet have to
be placed in that class on account
of the shortage in revenues and a
tie-up in law suits.
I'm answer to the many severe
reflections and comments on my
actions in not recognizing all drafts
made on the treasury, the follow
ing extract from page 81. session
laws of 1897. is hereby given:
An act regulating the payment
of appropriations in case the reve-
nue. of the state is insufficient to
meet all appropriations made by
the general assembly for such year,
such appropriation shall be paid
in the following order:
90 First: The ordinary expenses
of the legislative, executive and ju-
dicial departments of the state gov
eminent and interest on any public
debt, shall be first paid in full
''As you are well aware, 1t makes
no difference as to the classifica-
tion of appropriations. Should
there be revenue to meet all re-
quirements the law is clear upon it.
"It is when the appropriations are
greater than the estim ated revenue
for the period that the statute gov
erns the payment of bills This
period the members of the legisla-
ture appropriated in excess of the
estimated revenue to the amount
of ,12S,72S.4O."
1t was learned yesterday that
Treasurer Kenehan sent similar
report to Governor Shafroth two
weeks ago. showing the state of
depleted finances, and that the
governor soon suppressed it. The
governor was fully informed from
this report that all the monthly
salaries for April could not be paid
May l.. Salaries of clerks and em-
ployes of fifteen bureaus are held