, 1873-02-22

MINNESOTA TREASURY DEFALcATI0N.
The Minneapolis Tribune Of tho 10th inst
comes to us with tho following liberal array Of
headlines, setting forth an alarming condition
Of things in tho State Treasury Of Minnesota,
to-wit:
Tho Slate Treasury; Rotten Concern Great De,
facatlonR Startling neyeatious; Ex-Trcaaurcr Re-
tains $l12 600 In His Hands Present Treasurer Takes
Mortgages Which Are Not Recorded Muneh'a 1ndl-
Vidual Notea Received State Funds etate 0llcers
Not Informed Of tho DcAcit The School Fund Used
to Mako Up podcts Numbering Carried on with
State Funds State Money Used In Mercantile Buai-
mesa Loans to National and Privnte Bankers; Bonds
mon Have the Uae Of State Money; State Treasurer
Receives tho Interest Deposits; Deposits in 1ndi-
ytdual Namo ot Treasurer County Treasurers Called
on to Advance Money to Make Up Deficits; How Log
is1attve Committeea Have Been Fooled The Defa!ca-
uon Made Up by Bondsmen Damniug Record Of
Official Alalfeashncc; Senate Investigation; Report Of
Oommitteo; Tho Testimony In Full.
Tho report Of tho Committee eets forth that
place to tho present Troaarrer (llia fatLor-in-
law), lo retained in Ills owu posnceuiop e11a 900
Of the public moneys, n deficiency Of which his
successor WAS aware, aud which he attempted to
conceal from tho officers to whom 1t should have
boon reported. Both these officials hayo boon
In the habit Of 1oaning the State funds to banka
aud business housos. In this way s724, ,00a.2 20
have been taken out Of tho Treasury,
and loaned ut the ratio Of or per cent
yoar for the personal profit Of the Treasurora.
Bono Of these loans were made to friends on no
other security than note of hand. When those
operations outgrow tho resourceR of the Troas-
ury, It Ia ahown that, In many cases, largc sums
were colleoted from the County Treasurors Sow
eral months before they wero duo. When tho
present Investigation WAS orderod, tho Treasurer
sought to represent his depleted vaults by
negotiating temporary loana from those
whom hs had accommodated previously.
the year before In tho samo way. That def
cienoy exists In tho Treasury ia known, the
Committee say; but, so long as it's chiof is
allowed thus to doctor its accounts, 1t is impoH-
eiblo to ascertain whether It is O. dofalcation or
only the temporary absence Of moneys improp-
erly loaned. TO conceal his exactionB Of pay
monts in advance from County Trcasurers,
the Treasurer has kept no account OF
his daily receipts. This omission renders 1t
impossible to toll how long ho has had tho uBo
Of funds and tho interest upon them, Many
other PRACTICES havo been disclosed in his ad-
,ninistration which are, II not actually fraudu-
lent, criminally negligent. Such are his hablta
OF dopositlng the funds Of tie State in bank in
l1is cHn uamo and Of carrying on large amount
Of business on 1ooso n,1es.,,oranda. Tho Com
mittoe style these praotioes dangerous
and pernioious." Fortunately for the
State, ths bondanen Of tho prosent
Treasurer, and his predecessor, who has
refused to appear before tho Committee are
responsible PARTIES, aud through their liab,lity
and golvoncy the deficiency has boen made up
and the etate sayod from tho loss Of at least
: -" mn" Tho Committee conclude their report
a,,:, ""t'-~a nrotcotion OF the
BY submitting, for tho ru.s4-
State, all elaborate ayatom Of Auditing Boards,
quarterly examinations Of tho accounts, tho &c.
lection by advertisement Of Repositories which
,hall pay interest on daily balances, and a
thorough eyatom OF bookkeeping in the Treasury