Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1892-09-16


Mr.. McFetridge's bond for his last
terra. beginning January, 1855, was
given in the sum of $5OO,0OO, and did |
not exceed that sum at any time during
his mcumbency of the Once, from 1882 |
to 1887.
Immediately upon the deposit of that !
bond with the governor in 1882, as re-
quired by law, and the approval of the
s;l1.e. Mr.. McFetlid@e received from his
pred resSor moneys belonging tc the
state i'll the sum of $S2o, 4S1.S9.
Inc average monthly balance for
1852 was $649, 426. The average month
ly balance for 1883 was $914,292.31
The average monthly balance for 1854
was $913,397.51.
Coming down now to the term in
controversy in this litigation, we find
the average monthly balance in his
hands as state treasurer for the year
1885 was the sum of roo4, 4l9.51. The
average monthly balance for the year
1856 was $951, S2S.12.
This vast sum of money which the
law provided should be invested for the
benefit of the state was invested with
the banks, and on account Of such in
vestMcnt Mr.. McF etridge received in
two years the sum of SAG, 017 80.
This sum of money he now urges
never reached the treasury, because he
seized it on its way and forced it into
his private pocket, instead Of permit
ting it to pass into his official custody.
During all of this time the cOnSti-
tUJion and statutes imposed upon him,
as we shall hereafter show in our argu-
mcnt a two-fold duty. l. AS custo-
dian of the funds. The duty to in
vest in association with the other COM
! lGissioners, i'll some instances, and in
others with the approval of the Gov
ernor, every dollar of these funds for
: the benefit of the state, rs provided
by law.
When McFetridge entered upon his
last term of office, rs L have already
Indicated he had served in that ca
pacity for three years. 1t can not be
denied that he must have had approx
m,ately accurately information. 1, As
to the large balances which he would
have on hand uuinyested during the
ensuing term. 2. An accurate infor-
nation of the rate Of interest that ho
might receive from the loan and de-
pCSit of such funds and the amount
OF interest that might be derived there
| from.
When he first took possession Of the
Office he received from his predecessor
4 large portion Of public funds III the
form of certificates of deposit. He i'm
mediately went to Milwaukee to con-
suit with the bankers.
Mr.. McFetridge says that the banks
then informed him that they had paid
his predecessor some percentage for
moneys left with them, and whatever
the custom had been it would be con
tinued with him; that while he was
in Milwaukee he had talked with MI
BiyeloW, cashier Of the First National
Bank of the city, and with Mr. Fcrgu-
son, who was connected With the
Marine & Fire Insurance Bank Of Mil-
yankee.
Mr.. BigeloW testified that the arrange
ment between Mr.. McFetridgc and
their bank was that the bank should
pay him monthly certain rate of in
terest on the average daily balances to
his credit; that this arrangement was
made rs early us December, 1881, OF
january, 1882; that it was continued
throughout his entire term Of office
down to 1887.
Mr.. McFetridge did not leave the pub
lie funds exclusively in the banks
which had ben the repositories Of his
predecessor. For example, the Bank of
Viroqua was a private bank owned by
Mr.. Linderman and Governor Iusk.
The capital stock was on-..' 5000. Mr..
Lindernan had heard in some way in
banking circles OF from friends who
were in the secret that ,non.'y could he
had from tic state treasurer, and he
says he thought they might get some OF
it because his partner was the so, e17lor
SO he came to Madison, saw the govern
OF, had talk with him, told him what
he was after, and the governor referred
him to the state treasurer, from whom
he received deposit of $4,000 in Feb
ruly, 1882. For this sum Of money he
issued certificate Of deposit in favor
Of ''E. g. McFetridge, state treasurer.
This certificate bore interest" ON it,
face, but the rate was hot inserted
The treasurer held this certificate Of DE
post for $4,000 from February, 1882
until the close of his last term of office
in January, 1857. Two years later, Feb
ruary, 1854, he made further deposit
with this bank in the sum Of D.79c.49
for which two similar certificates of de-
post were issued and held hy the state
treasurer until his term of office
closed in January, 1887. The rate Of
of deposit was per cent. per annu1u
paid quarterly.
Ill January, 1885, Mr.. McFetridge
made the Marshall & Illsley bank, of
Milwaukee, his working bank in place
Of the First National bank OF this city.
This was because that bank would pay
higher rate Of interest than any other
Milwaukee bank, the banks Of that city
having shortly before reduced tho rate
from 3 to 2 II per cent.
Nj. 1IcEetIidge testified that the pub
lie interests were i'll no manner what
ever suDseryed by the deposit and re-
teHtion OF $4,000 in the Bank of vi
roqua, which remained there for a
Ieriod of tive years, nor by the deposit
$1O,792 which remained there
for three years, nor by the deposit of
$1,000 in the Bank of Neenah, nor by
the change of this working account
from the First National bank in Milwau-
kee to that of Marshall Il Illsleys bank.