The state herald., 1889-11-29
INTEREST ON STATE FUNDS.
The Grand Jury of Arapahoe County
Make Startling Report.

| hooH uueut tue Sthtc Iuuub.
To the Hon, George w. Allen, Judge Of
| the Fourth Division of the District Court
OF the Second Judicial District Of tho
! State of Colorado, within and for tho
County Of Arapahoe:
Tho grand Jury of your court, In addition
to tho report already made, desires to
mako tho following additional report:
Tho matter Of interest on State funds de-
| posted in the bands in tho city OF Denver
has been called to our att ention. and we
have investigated such matter as thorough
ly and efficiently as we possibly could.
We find the following facts:
Tho State funds are deposited in tho
First National Bank, in the Denver Ma
tional Bank, in the City National Bank, in
the State National Bank and in the Ger
man National Bank.
We find that in the First National Bank
for tho year 1883 the average quarterly
balance OF State funds was S203, 150; for
the year 1889, s2i6,4 ~
In tho City National Bank for 1888 wo
find the average quarterly balance to be
saG,G66; and for tho year 1850 the average
quarterly balance to be 1887
In the State National Bank for the year
lSSS we find the average quarterly balance
to be about s3i, ,6i4; and for the year 1859
we find the average quarterly balance to
be about 10000.
In the German Nationl Bank forthe year
1889 we find tho average quarterly balance
to be slGs,575.
In tho Denver National Bank, from jan
uary l, 1883, to September 20, 1889, we find
the average balance to bo sal5,343
We find that each OF said banks has paid
quarterly during said years of 1sss and
1889, ut the rate of 4 per cent. per annum
| for the average balance of all state funds
on deposit in each Of said banks during
each quarter Of said years.
There have been no regular deposit OF
State funds in the German National Bank
until the beginning Of the year 1859.
In our investigations we have gono back
only so far as we would have Jurisdiction
namely three years. We find that 1t has
been the custom during the administra-
tions of Messrs. Swallow, Breene and
Brisbane to pay in quarterly payments at
the rate Of per cent per annum for tho
use of tho State funds. During the admin
istration Of Mr.. Swallow, the testimony be-
fore US shows such interest was paid to
him directly. During the administration
Of Mr.. Breene, the testimony before US
shows that said interest was collected by
MIR. Swallow. We find from the testimony
presented to us, that during the admins
tration Of Mr.. Brisbane, the present in
cumbcnt, said interest has been collected
by Mr.. Breene.
As TO the amount Of State funds on DO
post in banks outside OF tho county Of
Arapahoe, or rs 10 what arrangement Is
made between said banks and the Treasurer
Of the State for depositing tho snid State
funds, We have acquired no knowledge, be.
Jurisdiction.
II has been the desire OF this jury to as
certain II there has been any criminal vic
lation Of the laws OF the State In the mat
ter Of receiving interest or compensation,
by anybody, for the use OF State funds.
We find NIL Of the laws Of the State Of Colo
RADIO ON this question to be as follows:
Section l3 of Article X. Of the Consti-
tuition Of the State Of Colorado, provides us
| follows:
1.-The making Of profit, directly or indl-
rcctly, out OF State, county, city, town or
school district money, or using the same
for. any purpose not authorized by law, by
any public oiiiccr, shall be decmeda felony,
and shnll be punished rs provided by law
The Legislature OF the State, unfortu-
nateIy, has never passed any law carrying
said provision In the Constitution into Of
feet, and prescribing tho punishment for
the offcnsc, declared by said constitutional
| provision.
Gen. Sec. or, Gen. Stat. 1854, provides: {:
IAN oirenscs herein defined shall be prose.
cutcd and punished us herein prescribed,
and not otherwise, and all other offcnses
may bc punished by fine and imprison-
ment, In the discretion of the court; pro.
vided, that the finc In no ease exceed si0O,
and the Imprisonment six months.n
Sections eol7 and eeis of the General
Statutes OF 1859, provide as follows:
'Scction o9i7. II the State Treasurer or
| nny County Treasurer discounts Auditors
! warrants ut less thnn the amount duo
| thereon, either directly or Indirectly, or
through n third person, they shall be liable
To fine not exceeding $1,000, to be prose-
cutcd us other iincs.n
| ''Soc. 2gis. County Trcasurcrs shall bc
| liable TO u like fine for loanlng out or In
amy manner using for private purposes
State or County funds In their hands. and
| the State Treasurer shall be liable TO fine
OF not more than $4,000 for like misdo-
mennor, TO be prosecuted by the Attorney
| General In the name OF the State.n
The penalty rs contained In Section aIa
| Of tho General Statutes above referred 10,
is entirely inadequate as n penalty for the
commission of felony declared by tho con
| stl,utlonal provision above stated. The
penalty provided In Section e9ts Of tho
| General Statutes nboyo referred TO, 10
somewhat moro commensurate with the
ofYcnsc committed, but nci' her statute
meets out tho proper punIshu snt for n fol.
ony OF the kind and nature esignated by
| inc constitutiunhl provision
As n special statute stand on the books,
providing special method for prosecuting
In such cases, and declaring II 10 be tho
duty OF the Attorney General, In the name
OF the State, to Institute such suits, thorc
Is u scrioun question OF law whether an In,
dctmcnt by this grand Jury would be loyal
or valid, under tho very general aud lin.
itod powers conferred by tho constitutional
provision md general section OF tho Grim
inal code rcfcrrcdto.
Under Section ea,s OF tho statutes, tho
Attorney General Of the State can proceed
against the State Trca,urcr for Nil inicrcst
received from my banks In tho State,
while wo would bc limited IN our lurisdle.
ton 10 those banks doing business In the