The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-10-05
SHALL THE BOOKSBEOpENED
Are the People Entitled TO Know the
Condition of the State Treasury?
Record Made by the Democracy Opposing an
Investigation of the Treasury-Be-
lief that There Was Shortage.

There is no question upon which the Demo
cratic party has a more indefensibie record than
the refusal of the last Legislature to investigate
the condition Of the State Treasury. Gov. Por-
ter in his message called attention to the fact
that the Auditor and Treasurer were required,
under the direction of the Governor, to provide
such additional locks safes and vaults as might
render the public funds absolutely secure The
Governor stated that he took the opinion Of the
Encouragement as to whether proper appro-
priation had been made for this purpose, and the
Attorney general advised him that the appro-
priation was available The Governor then APP
pointed two experts-one from each party-and
they reported that the vaults were not
secure. He then requested the Auditor
and Treasurer to provide such locks
safes and vaults 1t was we'll known that the
Treasurer had long been depositing the State
money In banks and loaning it to individuals for
his own profit The Democratic Auditor and
Treasurer refused to comply with Governor Por-
ter's REQUEST.
The message further stated that the law fur
nished no protection except bond of 800, O0O,
though at times the Treasurer has nearly =, 0O0,
600 In his hands The Governor said: eff you
desire that the States moneys shall be kept in
its treasury, you should Immediately provide
for the purchase of proper safe, and, IL
deemed needful, for the building of
= vault In which the safe shall be-
placed and you should greatly amend the re-
quirements intended to secure their being kept
In the treasury. IL, however, you pre-
fer--as cannot believe you do-that the States
moneys shall be placed on general deposit in
al % Atxxs1
vide. under the most particular and rigorous re-
Quirements that all interest or profit received
for the use OF them shall be turned into the
State treasury" These recommendations came
from the highest source of information possible
before legislative investigation. Yet none of
them we're acted upon. No provision was made
Tor vault for securing the States money. No
provision was make that the interest and profit
received should be accounted for and turned
over to the State. No experts were employed to
examine the treasury. No examination was
made except the mere act, upon the part of so
called committee, OF counting over certain pa
pers which the Treasurer showed in place of
the cash, which he Is by law required to keep.
On the 18th of January Mr.. Fouke introduced
into the Senate a concurrent resolution that the
portion Of the Governors message relating to
the loaning of the public funds by the State
Treasurer to private parties, and the depositing
of the same in banks in this city, be referred to
O special committee of three from each house,
30 be appointed by the Chair; that such commit
tee be empowered to count all the moneys in the
treasury, TO employ a competent expert to ex-
anime the accounts in the treasury, and to send
for persons and papers generally; that said COM
mlttee report at the earliest practicable moment
what deposits have been made of the public
funds and upon what terms (See Brewer Re-
port pages 3. Mr.. Foulke called the attention
of the Senate TO Section 5636 of the Revised
St@tuteg, 1881, as follows:
The Treasurer Of State is expressly prohibited
from loaning using, or permitting any other person
to use deposit in any bank, with any person
persons, exchanging for other funds, except as
permitted by this act any of the moneys funds stock
Or other property collected or received by him, that
may be paid received into the State treasury but
shall safely keep all such moneys funds stocks and
ether property until the is directed to be paid
ont transferred in the manner prescribed by law
And such Treasurer is expressly prohibited from re-
OSivng, in any manner for his use, any interest
premium. gratuity, bonus benefit whatever by the
disposition OF arising out of any property
belonging to the State, to any county or to any
fund of the State counties, of any loan obtained
tor the State for any county but whatever is so
received shall, by him, be fully accounted for.''
Sec. $685. r. s., 1881, provides that if the
Treasurer who receives such bonus or gratuity
on account of the public money fails to pay
the same iHto the treasury he shall be fined and
imprisoned Sec. 5644 provides that an irsuec-
tion may be had of the State treasury by com
mittee OF the General Assembly or of either
branch. The consideration Of this resolution
was postponed until the following Monday to
give time to the Democratic majority to prepare
T..
Tough, the Senator from Gibson, offered the fol-
lowing:
Resolved BE- t-e -S5o11aoe the House sf Representa-
yes ecurring. that the portion of Governor Por-
ters message relating to tho State treasury be re-
torged special committee of five from each house
TO be appointed by the respective chairmen thereof
to report by bin otherwise what legislation is nee
essary with reference to the State treasury and also
report whether investigation into the affairs Of the
State treasury by legislative committee Is at this
time necessary or proper
The wording Of this substitute is worth study
The committee were not to be authorized to send
for persons or papers, They were not to be au-
thorized to investigate the treasury But they
were to report without such investigation what
legislation was necessary 81 and then they were
TO say whether. AN investigation was necessary or
properl The absurdity of this resolution Is ap-
parent upon its face. The arguments that were
made by Democratic Senators upon the subject
were or the same character as the resolution
Senator Hilligass was very strongly in favor of
an investigation. yet moved to postpone idef-
nttely the resolution asking for it, It was re-
peatedly admitted by Democrats, upon the floor
OF tho Senate, that the Treasurer had loaned the
moneys of the State, and had received interest
upon them. Yet Senator McCullough's amend
Inent was adopted by the Senate
IN the meantime the House of Representatives
hadtaken the matter up Mr.. Patten, Demo
crat had offered resolution that committee
OF three from the House and three from the Sen
ate make complete examination. This resolu.
sion came mp for discussion Jan o. and Mr.
MoMHlien, Democrat, offered as an amendment
that committee Of three from the House and
two from the Senate inquire into the matters in
the Governors message, and ascertain when the
Governor received his information and the cause
Of his failure to cause investigation to be
msde Thus the Investigation was to be not of
theState Treasurer, but of Governor Porter--to
inquire why he had not made it.
Under the operations of the previous question
20 that debate was cut off, Mr. McMullen's
amendment was adopted After it's adoption.
Dir Twineham moved to add that the committee
have authority to send for persons and papers
and examine the treasury, and inquire what
banks have had the States money on deposit
and what interest was paid but this amendment
was promptly voted down by the Democratic
majority. By this time the Senate resolution of
Mr. Mccullough was reported to the House
And Dir. Adams. Republican, moved to amend