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

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trust funds, and that the interest received
by the defendant did not belong to the
state,
/ II was argued that the withdrawal Of the
! funds from the vaults fer the purpose Of
| placing them in banks, was a conversion
to private uses, and in direct violation of
| the law, The answers themselves showed
u clear legal liability,
| The counsel next inquired il there were
any disputed questions of fact The de-
! tense had introduced evidence 10 show
| that the funds were deposited solely for
public safety and convenience, II this
| proposition were true the Interest received
should belong 60 the public; but the state
claimed that it had proof that the
| deposits were made with the len
Rlte understanding that interest should be
| paid for prlyat2 gain, Whom Mr.. Nc.
| Feuldge entered upon the term OF office
covered 10y the present suit he had already
had three years experience IN handling
! public money, and must have understood
! It's management, He did not always keep
the deposits in banks that had state funds
when he came into office The account
with tho bank OF NipQua was opened dur
ing his term. MIR, Nmme, oN,Soorotary
OF state, admitted that It he had known
that there was $4,000 thore ON cerNh-
cate of deposit he would have considered
it loan, II the certificate ot deposit had
borne 4 promise OF interest ON ITS toe It
would have boon prlma Nole evidence
embcSslcmcnt under the statute, and for
this reason tho rate of interest was left
blank,
The harSNnw case was next taken M,
SO tar az the Mots were concerned. In
this case the hondsmeu all swore that they
had no definite kuowled,yo of the custom
OF depoSiuug state money and receiving
interest Various alleged discrepancies
between the answers at UarshGw and
Sohrieber were pointed out A table OF
balances for each month was referred to
as showing that there was an evident in
tent to keep permanent deposits, in spite
OF testimony that all were on open account,
subject 10 instant check. Tho fact that
two OF tho three hcasurers since the
present statutes went into elect
had thought it necessary 60 en-,
ploy confidential agent TO look
after transactions with banks was said 10
be especially significant A mn OF MIR,
Harshaw's business experience and ability
needed nm adviser only for purposea OF
conceament A large amount of testi-
mony was referred to rs showing that tho
banks practically had time deposits OF
funds, A number Of court decisions were
quoted to show that deposit of money In
Il bank was a loan, and That the money
would Toe considered IA Invested,
The claim oi the state was thon summed
up by stating that the interest could DO
recovered because II was part ct the pub
lie FUNDS, The money was Deposited ~
part of the state funds in the nnmo of tho
state treasurer, and tho interest should 40
with the principal number of deots-
IONS from English, United Statea
and stllc courts were quoted IN
support of this proposition, In ono caso
the United States court of claus had
held distinctly that in the absence OF
special legislation government moneys in
the hands Of public olltctr We're trust
funds and the trustee could derive no
benefit from thcm except such as was
specifically provided for IN his compcnsn-
ton.
The decisions Just referred to dealt with
cases IN which there was no special lopis-
laton limiting the treasurer OF other OIL
,ial. The state held that even In the ub.
senco OF the provisions of the Wisconsin
constitution and statutes the treasurer
would ho a trustee, and the interest would
belong TO the state, But these
provisions distinctly made tho
| treasurer one of the trustees oil the uni.
versity, normal school and other funds. If
any other officer than the treasurer should
attempt TO take tho interest on these
| funds, could there be any question, Mr..
| Bnehford asked, nv TO the constilutonalily
Of the procecdngP The different statutes
directing the manner OF making loans
since the organization of the state, were
| read aud the changes made from time TO
time noted. Mr.. MclFetrldgo had tried TO
get credit for himself by recommending
that the purchase of bonds OF certain states
be authorized when he did not
know that there was single bond OF
these states outstanding, Mr.. Bashford
| called attention 20 the fact that there were
two classes OF loans, one to school districts
where the application must come TO tho
commissioners, and the other the purchase
of the bonds of the United States, states,
counties and cities la which the commits
| sioners could take the initiative. He
charged that in making the former class
| sufficient diligence was shown, bat in tho
latter little was done. Mr.. flmmo WAS
quoted as testifying that the treasurer was
the agent OF the board and the making Of
ali such investments was left 10 him.
The statutes are said 10 nowhere pro-
nibit the deposit of funds in banks whore
| the interest VIA devoted 10 the use of tho
stale. The provision fixing the salary OF
The state treasurer at s. 900 per anuum
was read and commented upon.
In discussing the claim that custom
Of keeping state money in banks had
always prevailed, communication OF
State Treasurer VIM. Il. Smith 10 the
| legislature OF 1869 was read, IN which he
said that the funds were not deposited in
any banks nor with anybody. The com.
munication operated TO defeat u bill said
TO have been introduced by JuoRe New
man himself, who WIS then in the assem-
bly, providing for the safe keeping OF pub
| lie funds
The claim that The state vaults were un-
safe was prnounced ridiculous The bonds
| deposited 10y insurance companies amount.
| ing b millions Of dollars were kept in
these vaults, as were The resources Of tho
| state funds.
Mr.. Eelker interrupted at this point 10
ask why il the vaults were safe, Madison