Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1892-01-21
The State Obtains a Fav~ rable Deci-
sion in the Celebrated Treas
ury Suits.
Judge Newman Holds That MesSrs.
Harshaw and McFetridge We're
Simply Trustees.
Facts About the CaseS-Full Text of
the Important
Opinion.

Judge A. w. Newman, of Trempealeau
before whom occurred the trial of tn,
suits of the state against ex-State Treas
urers Henry B. Harshaw and Edward c
McFetridge, lied his decision in the DANE
county circuit court Monday. 1t will bt
remembered that Judge Newman wa
called in by Judge Siebecker, who declined
to hear the cases on the ground OF preju
dice.
The decision is squarely in favor of the
state, and is defeat for Messrs. Harshaw
and McFetridge, whose cases were tried
jointly.
The public is thoroughly informed as
to the nature of these cases. The state
claimed the interest on deposits of COM
monwealth funds in banks, which inter
est the treasurers had kept. There were
two complaints in the Harshaw case, one
for each of the treasurer terms. They
were alike except as to figures. 1t was
claimed that Mr. Harshaw had on deposit
Turing his first term over 100000 for
each month ,on which he received interest
in excess of S54, 900 during the two years;
that the commissioner of public lands
should have made investments of the state
funds; that they failed to do this but that
Mr.. Harshaw deposited the funds for his
own benefit, aud that this loss to the state
amounted to $40, 900 during the first term.
so that the defendant is liable for
S74, 900 all told for Mr. Harshaw's first
term. During the second term the
amount deposited was alleged to exceed
81 100000 for each month, and che
amount of interest received during the two
years to exceed 100000; and the amount
received from the deposits of funds which
should have been invested by the commits
sioners Of public lands was placed at $40
600, so that the total amount of interest
money appropriated by Mr.. Harshaw dur
ing his second term was placed at $50
600. The amount for the two terms there.
fore would be sl54, 900. The suit was
brought against Mr.. Harshaw for the re-
covery of that amount of money with in
terest.
The MGFetridge complai int was not ma
terial'y different, except as to terms and
amounts.
Mr.. Harshaw, in his answer, set up
that Charles Schriber, of Oshkosh. cashier
of bank there, acted as his fnancia
agent during his term as treasurer. Mr..
Harshaw set up further that during his
term of office he did deposit public funds
in certain banks which ne was advised
were safe and solvent by Mr.. Schriber, who
was his adviser in all matters pertaining
to the deposit Of public funds, and vino
from time to time examined the books in
the state treasurer's Office for the purpose
of knowing that public funds were properly
accounted for; that money was deposited
in banks to his name as state treasurer;
that Schriber, acting as agent of Harshaw,
did nominate certain banks as depositors
and that the banks paid him (Schriber)
certain compensation on account Of such
deposits, and that after his (Harshaw 's)
term of Office and after Schrlber had de-
Quoted his proper expense and paid out
any losses that might have occurred by
fires, robbery, or defalcations, etc, be was
to turn tine balance over to Mr.. Harshaw.
not as state treasurer but as private
citizen; that he was unable to tel how
much is still coming to him from Schriber,
as they have not yet had an accounting.
Among the banks mentioned in the
complaints in which long time deposits
were made are the Bank of Viroqua,
Sackett & Fitch, Berlin; Oconto National
bank; Manufacturers National bank,
Neenah; First National bank, Menomo
nee, Mich; Bank of Menasha, Uniox Ma
tional bank of La Crosse, First National
bank of Kenosha, First National bank of
Darlington, Commercial National bank OF
Appleton, First National bank of Grand
Rapids, National bank of Oshkosh, State
bank of Madison, First National bank of
Madison and several Milwaukee banks.
The sums alleged to have been deposited
range from $4,000 to $4,000.
The state also claimed that the agree
ment between Messrs. Harshaw and
Schneider was ''for the purpose of making
unlawful gains from the loan and deposit
of public funds
The claim against Mr.. McFetridge, who
was treasurer for FIVE years. from 1882 to
1887. was for about s175,000.
Other suits are still pending against
Richard Guenther. treasurer from 1873 TO
1882, for s95, 700; against Ferdinand
Kuehn. treasurer from 1874 to 1878, for
$50, 600 and against Henry Baetz. treas
urer from 1870 TO 1874, for s54 400. Har-
shaw was treasurer from 1887 to 1891 l..
The amounts are therefore about as fol-
lows:
laISud" .-...-.....-.. Slo4,UOo
McFetridge ............... Us 900