The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1874-02-26

day in the hands of Messrs. Gilman, Son Il
Co., of New York, S53,17s IS, and in the
| office, .4,07S.1 "A in checks, drafts and GER
| tihcates Of deposits. The actual amount of
currency on hand was S5S2, 105. Your COM
mittee recommend the enactment Of law
providing for two or more repositories for
| the moneys OF the state to be deposited there
in, upon security of State or national bonds
| only; and providing further that such depos-
itories shall be required to pay to the State q
sum not less than four per centum per an
| mum for the Use OF the average amount of
deposits.
1t appears taat during the year Of 1873
the treasurer deposited with Messrs Gilman,
Son Il Co., OF New York, the sum Of
S277, 3Si.H. the amount of money re-
guirsd to he tranimitted to New York by the
treas urer for all official purposes, during
that time, was $4,000; and hence there
was unlawfuily deposited in New York,
during the year 1873, the sum OF Sl35, 3Si AZ
by the treasurer. 1t is usual and customary
for New York bankers to pay four per cent
UNI per annum for the use of deposits, and if
the usual and ordinary practice of such
banks was adopted by the treasurer with
Messrs. Gilman, Son 4 Co., large amount
if interest would have teen received by him
upon the State funds deposited unlawfully
wOth them.
Your committee have not been able TO take
evidence in New York, and have not sscer-
tanned whether the treasurer received inter-
eat on his deposits with Messrs. Gilman,
Son & Co, but the law makes
the unlawful deposit of State funds
felony, without any interest being received.
The Treasurer Is the President of the First
National Bank OF Oiathe, and this bank also
has for Its correspondents and depositors in
New York Messrs. Gilman, Son & Co.
Your Committee call attention to the fact
that in the examination of the State treasu-
~, on the 24,h of November, 1873, by order
of the State Board of Examiners, there was
counted, as asseis of the Treasury, bill of
the Usage City Savings Bank, on II. Clews
& Co., of New York, OF November 22d, |
1879 for 81, 454 ,07, which was drawn after
said bank had knowledge that H. Clews * |
Co. had suspended, and the Osage City Saw |
ings Bank never received any money for |
this exchange, and the same was r. turned to |
the Usage City Savings Bank late in Deem
Der without being transmitted to New York. |
This bill of exchange was received from Mr.. |
&. Haywood, one OF the sureties of the State
Treasurer. Again, about October 18th, 1873, |
the Treasurer used State funds in obtaining /
exchange of the Peoples Bank Of Olathe, |
kansas, on the Hanover National Bank Of
New York S9,9s7.55 and the said bill Of
exchange remained deposited in the State
Treasures office until after the converting
of the Legislature. and was then turned over
to the Peoples Bank, and currency Obtained
therefor. At the date of issuing thi.
bill Of exchange the Peoples Bank of Olathe
had no deposits with the Hanover National
Bank Of New York; and the said bank was
not its corr. spondent in that city. II is evil
dent that tine Peoples Bank of Olathe had
the use Of this 50, 9s7. 50, for a period Of
three months. Mr.. Collins, the clerk of the
Treasurer makes the following statement
q check Of Of q. w. Crane for
81, 200, certified by S. K. Lakin, cashier of
the Topeka National Bank, in the treasury
in November 1873: Sometime during the
or fall ! advanced the amount in pay
ment Of his bill Mr.. Crane'-) for Flank
books. 1t was probably several weeks be-
fare it was paid out again; and there was no
Necessity for making the payment to Mr..
Crane until he presented his order therefor,
,Teept a desire 10 otiige HIM"
Two certified checks of the Second National ,
Bank of Lawrence, signed W. G.. Ramon, ,
reasrrer of the l. L. Il g. X. X. Co, Of !
he date of May End, 1873, one for 81 300 !
md the other for s. 900 were received in !
he Treasurer's Office in the summer of 1873.
md we're retained in the office until Deem.
Der. 1878, before being paid. II also ap-
Years that exchange of the Capitol Bank Of
Topeka on the Park Bank Of New York for
10000, of November 18Th, 1873, was :
'b'ained for the Treasurer's Office, and was