The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-16
STATE OFFICIALS SEE
NO REASON FOR ACT
Deputy Comptroller Found Ken
nedy's Books Balanced
to a Penny.
THAT HE WORRIED
AttOrney-G General Says Treas
urer Had Nothing to Fear
in Canal Inquiry.

ALsANY, Feb l5.-"Nothing that ever
happened in the Canal Board would cause
| a man 10 commit suicide" declared At
| torney General Carmody tonight when
Informed Of the death in Buffalo Of state
Treasurer John J. Kennedy.
Gov. Glynn, the Attorney-General, other
State officials and In fact all OF official
Albany were ahocked. Not . thing In
wrong In the state Treasures office, the
officials assert.
Mr.. Kennedy was nervous since he APP
peared before the Whitman Grand Jury
in New York city two weeks ago ton
row Last week he was In such a con-
dition that his friends feared his mind
was affected Mrs Kennedy came TO Al
bany and was with hin, almost constantly
They went to Buffalo together on Friday
afternoon.
Many millions OF dollars recently passed
through the State Treasures office from
the recent $50. 100000 bond sale Before
the big bond sale the interest rate for
money was 4 per cent. but afterward II
dropped TO u per cent. The State de-
mands per cent. for ts money, and as
none OF the banks offered II circular
letter was sent throughout the State ask
ing the banks how much money each
would take on deposit and give the State
per cent. interest.
. All OF the money was placed. There
was a report that Mr.. Kennedys son par
ticipated considerably in bonding the banks
which secured the money. as many banks
holding State funds give surety bonds.
Deputy State Treasurer George w Bat
ten of Lockport. however. says that Buff
fslo banks got only n small part Of the
money and thouAh perhaps young NJ.
Kennedy did get some OF the business
there was nothing irregular. The records
OF the department cannot be reached
until tomorrow.
nep,,,, Qate coyrptro,is, Jar,.s
Wendell said tonight that the books OF
state Treasurer Kennedy were examined
a week ago and found 20 balance TO a
penny. Every account was o. X. he
declares Mr.. Wendell was present at
the examination.
Talk that MI. Kennedy was In personal
financial trouble was not credited. There
was report that he was heavy Dor
rover from the Peoples Bank and other
Buffalo banks. but no one In Albany had
any knowledge Of such transactions. which
were denied by Mr.. Kennedy's assistants
in the state Treasurer's ONCE.
One OF Mr. Kennedy's closest friends,
his deputy, Mr.. Batten. made this state
ment:
There was absolutely no ground for
uneasiness. and a man less sensitive than
Mr. Kennedy would not have given
second thought TO his coming appearance
at the John Doe inquiry. ! believe. how
eNeT. Inat u WoTkcu On MS Uiinu until ne
became mentally unbalanced. I noticed
during the past week that he was very
nervous. but still ne seemed in good spirits
when Mrs. Kennedy was In the city. We
tried TO get his mind OF the New York
Investigation but with little success
A strange circumstance in connection
with Mr. Kennedy's apparent dread OF In
vestigations IL the fact the Governors
special commissioner. Mr. Osborne, Is
using the state Treasures Office In the
Capitol for n hearing room.
Republicans have n chance TO name
new State Treasurer to act until the
end OF the present year. when a newly
nedy's successor will be selected by
the Senate and Assembly in joint session.
but IL In probable that there will be n
deadlock over the election. Neither party
has majority, the Republicans being
four short OF the required lOl votes, |
while the Progressives and Democrats
have n total OF 1O+.
Some OF the Progressives who were
formerly Republicans might be induced
to vote for a Progressive Republican can |
II Is believed. while no one thinks |
the Democrats and Progressives can agree
on a'candidate.
A late report tonight was that the |
state Treasurer perhaps had financially |
backed some canal contractors in their |
enterprises and either had lost money |
or feared to have the facts brought
out. Mr. Kennedy was reputed TO be well |
of
The canal funds of the State are de- |
posted in State banks on the designa- |
tion Of the State Canal Board, compris- !
ing the elective State officers. while the |
in the general fund OF the State |
are deposited in banks through
out the State upon the Joint designation |
OF the State Treasurer and State Comp
trolIer.