Evening journal., 1891-03-06
THEY INVESTIGATE.
Continued from Frat Page.
about The certificates Of the state bank

about the certificates OF the state bank
stock7"
MIR Houston-''I never saw any car
tifsates, aud | don't believe there has
ever been certificate Issued The law
shows itall | don't believe there was
ever bond given by Sussex county. It
wa ouly by an act Of the Legislature
that the loan Of S. 600 was made
Senator What about those
mortgaEesl'
Mr.. aouston-"I did not SOC them but
they are both record, in Georgetown"
Senator Houston -"fhat Sussex bond
may be- In the hand Of the attorney who
had II recorded :"
Mr.. Pulling Do You know TO be a
fact that these mortgages are recorded in
Georgetown
Mr. Houston-"I have heard say. / do
not know II.
Ex- Governor stockley--'.1 have seen
them on the records.
Mr. Pilllng-"Then You say that dur.
ing your holding the Office of state treas
urer You never saw any of these certih-
catesY
Mr. Houston-"No sir, never did. l
always collected the dividends on the In
vestmenIs promptly. AS received them
charged myself with taem. and charged
the state with what ! paid out. In
making out my report did not look over
the papers. took the report OF my
predecessor and then compared the list Of
Investments with the law, which gives a
full list OF them. Tn re are certain por
tiong Of the shares Of stock belonging to
the school fund and others to the state
fund
MIR. Pilling-"Whst year was It your
term eypired2"
Mr.. Houston-"in January OF 1887.
MIR. Herbert Faces the Committee.
The greatest interest was manifested
when ex State Treasurer Herbert was
called upon to testify. He as paler
than usual, in fact he looked as II
he had Just passed through
spell of sickness. His old and
genial smile played over his face
and he did not seem to be in the least
embarrassed by his situation.
Senator Houston-tMr Herbert will
you Please state what yon know IN
reference to the securities and the con
tents Of the tin box.
Mr.. Herbert-'ln reference to the
securities / don't know any thing about
them. Ia the box there was the june
tion & Break water railroad mortgage Tor
| s400, GOO and the school bond never
saw tho Sussex bond
Mr.. Pilling-"That Is. you received
| the junction and Breakwater railroad
mortgage and the school bond2'
Mr.. Herhert-Yes sir
Mr.. Pilling-"Do you mean to say you
I rn7nv Ga M as,rr hoetl eAneleeu
Mr. Herbert-.rhat Is what / mean Z
Mr.. Pilling-" And you never saw the
/ Sussex county bond for 3d. 000l"
Mr.. HerbeIt-"I never saw the bond
Of Sussex county received the interest
on the investments. We were two Year,
| finding out what was in that box
Mr. Pilling-"Where did you End tbs
basis for that item2"
Mr.. Herbert-"If you will examin'
my son he can tell you more than can
| He did the business. ] only saw the rail
road mortgage and bond.
The Committee Quizzes Frank.
Frank E. Herbert, who has acted q
accountant for bis father during hi
term OF Office, was called up and sworn
Mr.. Houston-"Mr Herbert, whR
light can yon throw upon this ma.
teri
Frank E. Herbert-"G Gentlemen, th
first feet that drew my attention 10 thes
securities was the notification OF th
bank TO draw on them for dividends
After receiving that notice I went int
the box TO look for certificates OF stock.
never knew there was stock of that kind
We were green in the work OF the de
partment. As | said before, went int
the box and discovered a mortgage 70
$400. 600 on the junction & Breakwate
Railroad / found it had been pu
on record in both Kent aud SUISSE,
counties II had to be recorded in boil
counties to project itself, as the road wa
built partly in Kent and partly in SUSSEX
county. found the bond OF the schoo
trustee for $l56, $50 In addition d
these / found some other papers in re
gard TO an investigation by Chief Justic
Comegys; also papers in relation TO th
completion and construction OF thes
two roads on which state mortgages ar
held. There were also some other mis-
cellaneous papers did not find an
certificates of bank stock That is whs
set me to work making these records o
investments They never came into on
possession. / made thorough investi
cation and came to the conclusion tina
the financial affairs OF the state Il
this respect we're In bad shape
Mr. Pilling-" What explanation havl
you to give OF the Sussex county bonds?
Sussex County Bonds
Frank Herbert-''I took it for granite
that the state took some obligation iron
sussex county for the money loaned bu
! find 1t was purely loau ard no pspe
was given. The Levy Court IL SUPPOSE
to make an annual appropriation Of $50
to the state treasurer to he distributes
among the different districts OF the tire
counties as part Of the school fund
There has been no payment on that 70
three years. We gave the county credi
for it expecting to receive it, but "
never did When we settled with th
committee we proved that we had over
paid to that extent and were credite
with it az the settlement"
The discussion which followed TIL
showed that the law Ind been change
several times, and that the receipts ooul
be paid directly to the school fund
Mr. Pilling-"You say you have bee
doing the clerical work OF the stat
treasures Officer
Frank Herbert-"Yes, sir
Mr.. Pilling-"H Have you ever seen an
certificates of bank stock2v
Frank Herbert-"No, sir The onl
intimation have had Of ths existence O
such state securities was by the paymen
Of dividends and receipt Of the coupons
Mr. Pilling-"The interest was al
WAYS paid promptiy2"
Frank Hsrbert--"Yes. sir"