St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-09-16
B, | DIS ARE DEFECTIVE
State Examiner Knox Has Found
Some irregularities.
He Suggests Changes in the Routine
of Handling Funds.

In the annual report of Public Examiner
Knox, portions of which have been given
to the public, the total receipts and dis.
bursements from June 1. 1885, to June 5.
1886. as shown by the books OF the state
auditor and state treasurer, were ~, 953, :
1885, 81 and So, S3S, 0S1. 16 respectively. and
there was balance on hand at
the latter date of 1865. 134. 10.
On examining the bonds of the state depos-
itaries the examiner found bonds aggre-
eating the penal sum of 81, 745. 600, cover
ing deposits of one-half the amount or
S872.500. In examining these bonds as to
their statutory execution and the present
responsibility of the SuretieS the examiner
says he found irregularities and also sew
eral changes in the financial status of the
bOndSmen, seriously affecting their validity.
He says 1t appears that six OF the nine
bonds were never presente to more than
one member of the state board of auditors
for objection or approval as required by
law, and two Of these were presented to no
member of the board. He has advised the
treasurer in regard to the statutory defects
in execution, and stated that four new
bonds should be called for from banks
whose bonds are radically defective by rea-
son Of the death or failure of suretes, or
for vital faults in their original construction
or execution. Mr.. Knox says, on this
point:
In thus advising the execution of new bonds
l have called attention to the fact above
mentioned, that the amount of funds on hand
in the treasury has already at several dates
exceeded the amount that could legally be
deposited in all the designated banks. In the
execution of new bonds therefore a liberal
increase in the several penal sums has been
recommended, and should be made in order
to protect the funds of the state.
The secretary suggests that custodian
for the bonds be named in the statutes. A
list of the bonds examined, of the state Of
ficials, including the inspectors of grain,
the deputies and the weighmasters and
liner says that 1.-THE
STATE SCHOOL TEXT BOOK CONTRACTOR,
DanelD. Merrill, is also required to deliver a
bond to the governor, and to be approved by
him, running to the state in the penal sum
of $50. 600, with at least two sutti-
cient sureties." The examiner makes nc
mention of having found any such bond.
He calls attention to the inadequacy of the
amount now fixed by law as to the penalty
of the state treasurer's official bond to pro-
tect the increasing sums often found III the
treasury. The examiner says:
1t is probable that with the largely increas-
ing powers and responsibilities at other state
officers the penal sum of their bonds as now
fixed by law should also be raised. 1t has
been my dIty to call your attention to the
fact that several of the bonds of state officers
have expired from various causes, and til at
the official acts of the incumbents of these
offices are without the necessary authority
until they have duly qualified by the execu-
ton and filing of proper bond.
On examining the securities for the in
vested funds the examiner finds the total
invested funds amount to 81, 1872, $50. He
notes gratifying improvement in the
routine cash transactions in the offices OF
the auditor and treasurer. He suggests
some changes in the routine, among other
things recommending that the returns of all
the treasurer'S transaction, with the
vouchers for them, be made to
the auditor daily instead of monthly.
He discusses at some length
the fact that certain moneys are by stat
ute to be paid into the treasury, with
which the auditor has and can have nothing
to do, such as rents and profits from the
leasing of the shops, grounds and convict
labor at
The STATE fRlSON.
Bearing on this point, namely, the fur
nishing of the auditor with independent
information as to the amounts paid in, as is
required in the case of a portion of the
states receipts, the examiner says: ssAzas ~
would respectfully suggest that such q
!. constitutional restriction is the more import
ant in the case of the treasurer's receipts, as
in regard to these there is no such personal
interest compelling full return as in the
case of payments, which constitute the credit
side of the treasurer's account. A legislative
enactment to this end is utterly ineffective in
producing uniformity, as we have seen that
the work of one legislature in the right direc-
ton is largely aunued by the acts of its sue
only therefore will reach the case.
The receipts from the state insti-
tutiOns, namely, hospitals at st. Peter and
Rochester, normal schools at ST. Cloud,
Mankato and Winona, the reform school,
the prison, the university and the three
schools at Faribault have been 1874, 996. 03,
of which all but SIS, 607.5S has come from
state support and appropriations. The
total disbursements have been STA. $3.50. 55.
The report advocates the uniform classified
ton of accounts, which has been consid.
cred by the state board of corrections and
charities. The growth of the work de-
volving upon the examiner. lead him to say
that simpliication of the duties of his
Office, wherever the public interests will not
suffer, but will be a great benefit.