Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1891-11-27

/ 5 per cent, If be had known it he should
have considered il an investment Of state
| funds, and that the fund incomes were en-
| titled to the interest, He knew that it
! was ucorted that the treaSurerS derived
some benefit from the deposit Of state
I funds, but not that they were paid inter
/ est, There w $ n long re direct and n,
/ ao&s-exsminatiou, dealing with Mr.
Nmme's knowledge of the treasurer
Z transactions With banks and the leAnlnE
( of trOSt funds,
! "Me$' Queried' the colonel, looking n
/ trAe surprised; and ON receiving an
affirmative nod he stepped up 10 be sworn,
/ Mr. FelSer q lduCted the eNamnaI ion,
and developed the fuct that the witness
WAS connected IN n business way with
banks in Madison, having been director
Of the First National and Capital City
banks, and was reasonably familiar with
business transactions IN the capitol and IN
the city He could not recall when he
first learned that there was state money in
the First National bank, tie did not
know that such deposits were in
the CApita City bank until 1890
or late in 1890. Tie did not know when he
first learned that ueasurcrS were in the
habits Of depoSihug public funds, but he
knew it at tue time VIXEN Ne WAS engaged
on the revision If the statutes IN 1873 n.
lie could not be sure TINT he knew prior t.
this time that they received interest, He
knew nothing definite about It,
After the revision the witness had no
idea that the statute on the subject was
ha' itually violated until two or three
wears ago In his duties rs director of the
First National bank he did not look over
the depoSltor's accounts,
On croSs-examiuation Mr., BaShford
asked the colonel il he had anything more
TO say on the purpose in the minds of the
committee who revised the statutes on the
laws relating to the deposits of public
funds, but the witness only replied that he
would have something to say on that later,
as an attorney,
Gen. Simeon Mills WIS next called lie
was Mt one time connected with the Bank
of Madison. At this time MIR. Hastings
was state treasurer, and had an account
with the bank Witness thought the
account was IN the name of Samuel u,
Hastings, state treasurer, but was not
sure. Mr., Hastings never received any
compensation from the bank, Gen, Mills
had heard rumOrS that the treasurers re-
Ceived interest ever since the first bank in
the state was org nizei IN 1883. lie knew
nothing Of it from personal knowledge.
On cross.examin0ton the witness said
no interest was paid on other funds depos-
tied in his bunk to his knowledge.
Cashier Frank G. Bigelow, OF the FIRST
National bank of Milwaukee, was next
sworn He had known of the payment Of
interest to treasurers 10y his bank for
many Years. il was his impression that
MIR. Hastings gol some gain and advan,
tage IN the way of loans of money that he
was not obliged to repay. He thought
the same might be said Of Mr.. Ba1ta.
The rate of compensation was fixed by the
bank
Mr.. Bgelon also gave expert testimony
on the government bond market, He said
that banks had not cared to invest in
United States bonds of hate, MS they could
not tell whether they would hold them at
gain or loss. -Four per cent, bonds had
fallen from 1919 10 III from various causes
Witness would not at any time within the
past four years have considered it Il safe
thing for Il holder OF trust funds TO invest
in government bonds ruling as high as
100, knowing he must sell within six
months Mr.. Fclker asked regarding the
cost of the purchase and resale of bonds
hy any one like the state treasurer, who
had not an account in New York city.
Witness estimated the cost of purchas.
ing bonds in New York and getting them
here Mt from = of one per cent, UPWARD,
according to the methods and clrCum-
| stances OF the transaction.
saturdays Proceedings.
The first witness called Saturday morn
ing was cx,State Treasurer S. u. Hast
ings who testified regarding his term
from 1858 to 1866. He said that lee de.
posted state money in banks and received
| gratultie5 in return, but not interest At
that time the trust funds were never de-
posted because there were more apphca-
lions for loans than could be Rranted.
Gen. FmrChild secretary OF state from
| 1864 TO 1866, and governor after that, was
called During his term as governor
he knew officially that state money was
Deposited in the banks He has known
! by common rumOr that trCasurers received
compensation on public fund deposits
since before the war,
IRE next witness was Gen Tom s. Al.
lem of Oshkosh, formerly Of Mineral Point,
| secretary of state in 1886 9. While lac was
secretary OF state he had official knowledge
of the deposit of state funds in bangs, and
that interest on Or compensation for these
deposits was paid the treasurer, In 1867
or 1868 he drew up bill providing for the
deposit of funds in banks and the collection
of interest thereon for the benefit Of the
state, but it did not pass.
The deposition of ex.S-cretary Of State
L. G. Timme in the HarsbaV case was
read. He swore that the commissioners
did not invest the general fund because
they bad no authority 10 do SO. uniyer-
sity and normal regents protested against
the payment of a premium on bonds out
| OF the income Of their respective funds
Henry Palmer, president OF tn North.
| western Life insurance company, deposed
! that for some years his company had con
sidered that government bonds were too
| high 10 be profitable investment
The defense next called ex-IreasuTer
IIarshaw to testify in his own case. He
said chat Of the money that came into the
state treasury fully 30 per cent. and he
thought nearly 95 per cent. consisted OF
paper other than currency. He gave list
/ Of the banks in which he kept state funds.
! Twelve or fourteen different funds divided
| the money in the treasury. be school,
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