The Columbus journal., 1879-01-29
THE STATE TREASURY.
The Investigation Shows a
estate Of Affairs"

lutCt Oot foob "SSh hoo
been the investigation into the af-
fairs of the State treasury, and the
facts developed are not creditable to
the integrity of the late treasurer,
j. c. Mcbride.
1t has been his custom to deposit
funds of the State with banks, among
which have been; the First National
of Lincoln; l.. r. Moore of Kear-
ney; Marsh Bros, Mosher & Co., of
Lincoln; First National of Brown
Vile; Raymond Bros. & Yeazel of
Hastings; Farmers National of
Pawnee City; Caldwell, Hamilton
& Co., Omaha; First National of
Plattsm outh; Sumner & Co., Schuy-
ler, &C., &c.,-our Columbus Bank
is not included in the list.
Senator Birkhauser's resolution to
investigate has brought some of the
facts to the surface, and will doubt
less reveal the true inwardness of
treasury matters. AS the law touch
ing the subject applies equally to
other officials, we quote it here at
length, as found on page 749 of the
Revised Statutes, chapter XVI, title
"Embezzlements and Frauds"
"Section 124. If any officer or other
person charged with the collection, re-
ceipt, safe-keeping, transfer, or disburse-
ment Of the public money, or any part
thereof, belonging to the State, or to any
county or precinct, organized city or
village, or school district in this State,
shall convert to his own use, or to the
use of any other person or persons,
body-cOrpOrate, association or party
whatever or shall Use by way of invest
ment in any kind Of security, stock, loan,
property, land, or merchandise, or in
any other manner or form whatever, or
shall loan with or without interest, to
any company, corporation, association,
or individual, any portion Of the public
money or any other funds, property,
bonds, securities, assets, or effects OF
any kind, received, controlled, or held
by him, for safe keeping, transfer or
disbursement, or in any other way or
manner, or for any other purpose; or if
any person shall advise, aid, or in any
manner participate in such act, every
such act shall be deemed and held in
law to be an embeZZlement of so much
of the said moneys or other property, as
aforesaid, as shall be thus converted,
used, invested, loaned, or paid out, as
aforesaid; which is hereby declared to
be high crime, and such officers, or
person or persons shall be imprisoned
in the Penitentiary, not less than one
year more than twenty-one years, ac-
cording to the magnitude of the embeZ-
Element. and also pay a fine equal to
double the amount of money or property
so embeZzled as aforesaid," &c.
So far as the matter under con-
sideration is concerned, the decision
of the Supreme Court has settled
the duty of custodians of the public
treasures.
Attorney General Dilworth, to
whom the subject was referred, cites
the General Assembly to the opin-
ion of the Supreme Court, as written
by Chief Justice Cobb, in the case of
Nebraska v. Kline (not yet publish
ed), in which the Court says that
"by Sec. 124 Of Chap. Is, all invest
ments or loans of the State money
are prohibited. The deposit of the
$1,000 i'm the bank of the defendant
was loan in its legal effect"
January 25th, the Senate Finance
committee examined Bartlett, pres
ent State treasurer, and j. II. Clark,
cashier Lincoln Firs: National bank.
Mcbride was sworn, but declined,
under advice of counsel, to answer.
Bartlett (who was deputy under
McBride) testified that he knew of
no consideration being paid to Nc
Bride by any person or bank, for the
use of the funds of the State.
According TO the correspondence
Of the Omaha Republican, "Clark
testified that since the adoption of
the new constitution he had paid
Mcbride no interest on funds de-
posted. Prior to that time he had
paid four per cent. on average daily
balances. He testified that during
the last term Of Mcbride as treasur-
er he had paid Stout, who was his
(McBride's) bondsman, four per
cent. on average daily balances for
sums deposited had, however. never
made a contract with Mcbride or
said a word concerning an agree
ment. Considered Mcbride under
obligations to Stout as his bonds
man, and had gone to Stout and
made arrangements with him, simp-
ly carrying over McBride's balances
of the preceding term"
Whether criminal proceedings
will be i'm stiiuted remains to be seen.
saszz1<ss.zz-se=.z=Se
HEADINGS of telegraph columns of
the Omaha Republican of yesterday:
Death of DR.. Linderman, director of
the U. S. Mint.-Muddy for Nc
Bride. Continuation of the Treas