Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-07-27

| 4lleged--Ihc Scoop of $25O,OOO Effected
at the Time of the Collapse of the Na-
tional Bank of the State Of Missouri--In-
security of Gates Bond.
st. Louis Special, DULY 23,) to Chicago
! Tribune
| Quite sensation was created to-day by
the publication of a lengthy article reflect
ing seriously upon the management CT the
State treasury. It is charged that the treas
urer, Elijah Gates, has never complied with
the law relating to the filing of his bond
and that the bond has never been approved
as required by law, and upon legal test
would be declared invalid. One of the most
| significant facts published is statement
that, five days before the National bank of
the State of Missouri suspended, about a
year ago, it received a deposit
of 100000 from the State treas
urer. The president of this bank
was j. ii. Britton, one Of the treasurer's
bondsmen. The money was forwarded on
June Is to the State national bank, for the
ostensible purpose of being sent to the bank
of commerce in New York. to meet the July
interest on Missouri bonds, which was paya-
BILE in New York July 1. The money, in
stead of being promptly forwarded, re-
NAMED in the bank five days, at the end of
IL.
the State being in this manner victimized to
| the extent of 100000. The fact that the
president of the bank was on the treasurer's
bond created unfavorable comment at the
time, and has from time to time excited
grave suspicious of collision between the
| state treasurer and tie bank
president. The July interest was paid, but
in what manner the treasurer raised the
| money has not been announced in any. of
| his subsequent reports. Up to this time 35
per cent. has been paid to depositors of the
| bank, but neither the auditor or the treasurer
| mentlon in their reports the $175,0OO which
the latter must have received to the credit of
| the State. It is pretty we'll settled that the
| bank will not be able to pay more than so
! per cent, leaving balance of $25O,OOO due
the State. It is now claimed that the bonds
men should be made liable for this amount
| Though it is believed that number of the
bondsmen are at this time impecunious).
j. 81. Britton and Senator Armstrong, the
two leading Signatures, are undoubtedly
execution-proof. The Evening Post,
in statement this afternoon, says: at is
provided, by sections Is and 16 of article 10
of the constitution, that quarterly state
ment shall be published by the treasurer in
such manner as the Governor may direct,
|
and where deposited. Some time during
the session of the Twenty-ninth general
assembly, in the winter of 1877, John H.
Terry, of this city, who was the chairman of
the Senate ways and means committee, in
troduced resolution requiring State Treas
urer Gates to publish statement as to the
whereabouts and condition of the State
moneys, in accordance with the fifteenth and
sixteenth sections of article 10 of the CON
stitution, as above quoted. Col. Gates and
the Governor up to that time had totally ig-
nored these PROVISIONS of the consti-
tuition, and no statement had been made by
the treasurer. The resolution of Senator
Terry created sensation. It was referred
to the attorney general. He gave an opinion
that the constitutional provision was not
self-operative, and that Col. Gates need not
comply with the demand. Thus the matter
ended. similar view of the constitutional
provision, it will be remembered, has been
taken in q late decision of the supreme court
| of Missouri. Senator Terry was disposed to
proceed to pass law enforcing the provision
but the thing was smothered up. The gov
ernor was consulted, but said he had no power
to act. TWAS said confdentially that it would
not do to force the provision; that, if it
was done, Treasurer Gates would go to the
penitentiary. It is a well known fact that,
while the salary Of the State treasurer is
only S., 900 year, four years. tenure of
this Office invariably enriches the holder
During that period sums aggregating $1O,-
600, 900 pass through the hands of the treas
urer, and, by defying the constitutional pro-
visions which require specific disposition
of the States money in manner that will
bring interest to the State, it is easy to see
how the treasurer and few banking friends
can grow wealthy by lending ont the public
funds and pocketing the interest" Still
more sensational developments are promised
and it is confidently asserted that other glar-
| ing Irregularities will be unearthed in the
treasurer's Office.
The Chinese ambassador and Party in San
Francisco.
SAN FRAsc1sco, July 26.-Among other pass
engers by the City of Toxic is G. F. Seward,
United States minister, en- route to Washing
ton. The Chinese ambassador and party will
| leave for Washington in few days. No form
al reception was rendered on their arrival none
OF the United States officials welcoming the
l O0Y&vy H. L..