The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-17
CARING FOR STATE FUNDS
Correspondents Specific Charges
Against the State Officers.
What Governor Porter Has to Say Regarding
the Intrusting of the States Money
to the Care of Banks.

to the Care of Banks.
An Indianapolis correspondent of the Cincin
natl Enquirer has been making the charge thai
! the public funds of Indiana are being used fol
speculation, and says:
Under the law of Indiana it is a
Ielony for the State Treasurer to lend
| the public funds or deposit one penny of it any
| where except in the vault in the Treasurer's
| office, and an unlimited appropriation has been
standing ever since 1860 for the purpose OF
making the vaults burglar and fre-proof. And
yet' IN tne lace OF that law, every Treasurer who
mas neld the office since its passage has violated
IL. The money Of the State has been loaned at
| interest, and that none OF it was lost has been
uie 10 good luck. instead of the aw-abiding in
tegrlty OF the Treasurers who loaned. One
treasurer went out of office defaulter, and some
bankers VINO were on his bond made IL good, and
Ihat restitution is remotely connected with the
troubles OF one OF the unfortunate banks which
had to put up its blinds The State funds are TO-
| DAY loaned out and deposited in various banks,
ana II the Governor should order count to-
morrow OF the funds for which the Treasurer is
responsible there would be quaking among the
| bones rattle"
| In letter which appeared in the Enquirer
yesterday, the law relating to the loaning of
public funds Is quoted and the following definite
| charges are made:
81 That ever since Governor Porter has been
In office the Treasurer of State has violated the
law Dy Keeping larger portion of the money of
the State else where than in the vaults of the
treasury, and that Governor Porter is the most
| Ignorant OF men If he has not known this fact.
"2 That Governor Porter has been a stock
holder In bank which has had the custody of
| State funds.
80. That Treasurer Hill deposited 1000
Win FRANK Kennedy, of the collapsed Central
BanR, and that Governor Porter knew Of that
Iact' while Major Hill was yet in office.
"a. That the present Treasurer of State adj
mlts that he had large sum of money in the
FIRST National Bank, Mud that, too, in violation
IS That large sums of the State funds are not
now In the vaults OF the State Treasury, but are
| Kept elsewhere, and that it is openly charged
that he Is receiving interest on the same, and
that Governor Porter is aware of these charges.
70: That Governor Porter has, ever since ho
mas been In office, ignored and refused to obey
the clear provision of the law which made it his
| duty to have the vaults of the Treasury made
absolutely burglar and fire proof,
W That Governor Porter has declined, in the
| face OF all the information and reports which
have been current, to the effect that the money
OF the state was being loaned, to order an inves-
| tigation of the Treasury.
THESE charges are specific, and when the de-
NAL is made will offer the proof. The attention
| OF the Governor was repeatedly called to this
matter last winter and yet he has taken 10 pub
lie steps to do those things which the law clear
| ~ says he shall do. tia now again brought to
his attention by the public prints stating that q
large sum OF State funds was deposited in the
FIRST National Bank, and the officers or that
| bank have stated that their withdrawal was the
cause of the collapse of that concern. This, too,
| IN the face of the statement of the Treasurer
/ bHdb NE nau SOUU,UUO there as special deposit.
Ana even If 1t was special deposit it viO-
| latlon of the law. and section 1912 makes vio-
| latlon OF the law an enlightenment. And the
penalty for embezzlement Is imprisonment in
the penltentiary."
| STATEMENT BY GOVERNOR PORTER.
When questioned regarding the charges which
are made by the Enquirer correspondent Gov
| ernOr Porter said, in statement to a Journal
| reporter yesterday afternoon: 'I own stock in
| but one bank-and only small amount in that
one-and if there are any State funds on deposit
| in that bank have never knownit. When 1 was
the First omptrOller of the United States Treas
| ury was asked to make an application for the
| designation of the bank q repository of
| United States funds, but declined on the ground
| that was a stakeholder. am not director Of
the bank, and have given little attention to its
business, after being satisfied that honest and
careful men are in charge of it,"
"Have you known that the State Treasurer had
money on deposit in tie First National Bank?"
81 have not. 1 have supposed that all public
| moneys were not kept in the vaults of the Treas
ury, because the vaults are not safe. In $780,
| twenty-four years ago. and act was passed re-
quiring the Governor to have a vault constructed
in which to keep the public moneys, and it was
built but it is not safe repository of large sums
| of money, and never has been. The apprOpria-
tion in 1859 for building vault is
| not now available for the con.
| struction of one. am now
considering that very question A mere vault
| for the keeping of money is not, however,
enough for the safe keeping of so large a sum as
would sometimes be in the vaults of the State
| Treasury. considerable guard would also be
! necessary. There is such guard over the
| Treasury at Washington, and have known, IN
| times when there were some threats of cOmmo-
tion guards of soldiers to be kept there In fact,
| l have known as many 200 men to be on
guard there There is no appropriation availa-
BILE for the maintenance of guards.
as believe, for the protection OF
be seen that for twenty -four years the law re-
| curing the public funds to be kept in a safe
| vault has been in force. The debates in the
| Legislature have repeatedly shown during most
| administrations since the passage of the law
| that the public funds we're not all kept in the
| Treasury vaults, aud the LEGISLATURE has not
| chosen to take any action upon the matter. At
| this late day, uwenty-fOur years after the pass
| age of the law making the appropriation for the
building of safe vaults, doubt if there are any
| funds available which the Governor may use for
| the purpose of building the vault contemplated
| in the law of 1859. When the new State house
is built there should be vault constructed in it,
| thoroughly burglar-proof and f1re-proof, and
| provisions should be made for guard"
"If the alleged abuses or violations of the lay
exist what action would the Governor take in
| regard to the matter?"
| .'lf specific complaints shall be made to me
| that the public funds are being loaned as to
| lmperil the Treasury-an il the complaints come
| from such quarter that they may not seem to
| be inspired by partisan feeling. will order an
! investigation. Such investigation should be
free from any seeming faint of partisanshlp, and
should be made for the public good solely"
| Mr.. j. ]. Cooper, the State Treasurer. is now
| in New York and VIII probably be absent for a
week, no statemant from him personally re-
| garding the alleged use of the public funds can
| be obtained until his return.
PERSONAL.