Evening journal., 1891-03-06
THEY INVESTIGATE
Four Ex-Treasurers Before
the Committee.
NEVER SAWTHE SECURITIES
William Herbert Says He viii Settle
by Next Week.
sAWTHE SECURITIES

Legislative Inquiry Develops That the
states Securities Have Not Been Seen
for Twenty Years, aud That MI Her
bert's rrouble Was Caused by Accepting
Notes for Cash, on which He Could Not
Realize Discounts on ". X. CoChran's
-Defeeti 10 System OF Auditing
State Finances
STAFF Correspondence EVENING JOURNAL.
DoyRR. Feb, 5-The Investigations
into the financial transactions Of ex State
Treasurer William Herbert began to-day.
TIE developments of to days meeting
were fully summed ap in the FIRST dis
patch sent from here to the EVENING
JOURNAL more than one week ago, and
this dispatch was the first one sent from
Dover on the subject
It awakened the public as well as the
members of the General Assembly 20
such degree that there was no alterna-
tive but to investigate. The subject At
tractsd attention all over the state and 1t
instantly became the All-Absorbing topic
The whole thing may be ooncisely
summed up as follows: Mr.. Herbert
took notes instead Of cash in bis settle
ment with county officers, and made
private investments of public funds in
such a manner as to be unable to realize
upon them when the time for fnal settle
ment came
BE now owes the state $s4, All 81,
which he promises TO pay over TO the
present state treasurer this week or
next, at the latest. or this amount he
holds the notes Of E. r. Cochran, ex
clerk Of the peace for New Castle county,
to the amount OF e5, 500, so that deduct
ing this as an assumed offset, he Ia still
responsible to the state in the sum o.
about $29, 900.
This Is the amount he is presumed q
have out In investments outside Of th'
above mentioned notesS and upon whlcl
be cannot at the present time realise
No Clue to shs Securities.
AS far as sas missing state securitle
are concerned. there Is no more hgh
upon the mystery than there was whe
the fact that they were gone was hrs
made public. To make the matter wors
the responsibility for their diaappearane
cannot be placed. One ex-Cfiicial says b
never saw them. His successor In oftic
saws the box was turned over 10 him wit
the other effects of the Office and the
they are again lost sight Of for perio
of four years A case of official presto
. change without precedent In the hts
tory Of any department Of our state gov
ernment.
d There Is one redeeming feature. hov
aver, and that Is that they cannot pro'
beneficial to anyone holding them. Thl
I, they have not been hypothecated Is abs
lutely proven by the fact that the ste
+, has regularly received It's dividends fro
- the bank stock 1t owns, and the railroal
and Sussex county have never failed
a. pay interest on the mortgages and BON
- held against them by the state.
The two railroad mortgages a
Il properly recorded In both Kent and Su
y sex counties, and there is some dou
r. expressed by such responsible persons
ex Governor @. @. Stockley and Govern
Robert j. Reynolds, that stock oertii
Gates were ever issued to the state by q
banks. The assumption Is that 9
shares of stock were issued under 9
provisions of the act, and no certihcat
given or required.
Then again il they must be had the
is no easier thing than for the GeneI
Assembly to pass an act authorizing q
! banks ia question TO issue to the sta
certificates In place Of the ones loI
IS strayed or stolen, or never issued at q
After the Golden Fleece.
~ Jason and his argonauts never mad'
more determined search for the Gold
Fleece. that the Investigating Commit
ne made for the truth to day.
Its session began In the State Hou
parlors at 30 o'clock p. M, and last
e. an hour and half.
~ The members present we're Senate
~ houston (Dem and Pilling (Rep) on pi
of the Senate, and Representative Elki
a. ton rep , on the part OF the Houl
George Carter OF theKvEEINa JOUREl
was made secretary OF the committee
Representatives Rldgely and Hickm
(Democratsl, were members OF the col
mittee, but they went to Washingt
Wednesday and the weather has been
wet ever since that they failed to get
Dover until the committss mad complei
| iLS uEhb uA1 , HoAhs
Senator Houston presided and swore
ibe those who gave testimony.
No Star Chamber Session.
There was no effort to make this me,
lil- ing of the committee a star chamber s
sion. The doors were open to all com
and the press representatives were gi'
every opportunity to get at the 70
bottom facts in the case.
Besides the members of committee a
several members Of the two houses th
we're present Governor Robert j.
nolds, ex- Governor @. @ Stockiey, Sc,
tary Of State D. F. Marvel. State IRE
urer Wilbur F. Burnite, State Audi
John P. Dulaney, ex State Tressu
Thomas Giles, ex State Treasurer j.
NJ. Houston, ex State Treasurer Will
Herbert and son Frank, and ex-Si
Auditor James h Boyce
object of the Meeting.
Senator Houston called the meeting
order and said
"Gentlemen, we have been appoiI
a committee to investigate and make
quiry In connection with the miss
state securities, and also to make
ouiry into the condition of the state tr
ury department The secretary of 81
will please read the joint resolution or
ing the committee and authorizing /
act.