New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-20
DANFORTH'S HEAD WANTED.
DEMAND FOR HIS REMOVAL By GOVERNOR
FLOWER INCREASING.
THE STATE TREASURER GUILTY OF VIOLATION
OF DUTY IN SECURING A PERSONAL LOAN
FROM THE MADISON SQUARE BANK.

~~aIO
counter the storm OF criticism upon MS co'aus. -
min, the big sum OF $4,000 into the MADISON
Souare BanR-a sum far greater than ne nau pa
in any other bank in New-fork CHy -"'u
ssking and obtaining loan OF N0"V TOT Ms pc
sonal account Nh Danforth is reported 10 Oe 'u'
veying keenly the financial ocean W hat '"' -
bis laden with stocks bought for 5000 Is ahoa'
ION ,b,t acitated sea? And not the men VINO
sided him to repay the Madison Square Bank us
so 90 profoundly interested in his personal hhaeA
fortunes? c.o.no-
Flower should suspend Mr.. Danforth from MS oi..oe
as State Treasurer. No one can DOUBT tha' M
Danforth has been using his official place 10 OBTAIN
for himself loans OF money from the oahhs i"
which the States funds are placed Inc eViue"Oe
/ of il is unmstakable in the case OF the M"u'So"
| couarA Rank As already stated Mr.. Danforth oe-
nosited more State money in this bank than III
| any other New-York bank. 1t was more by s''oo"
than any other bank in the metropolis posSess
and the State banks in that city upon ole ase'a.e
| do not hold more than $4,000 each OF the S'a'e
| money The Madison Square was mus lhuu0eu "
an exceptionally large deposit TO loan money u
/ Danforth himself upon an unsecured NOTE 'na' 10
- loan him money without collateral Such laFors
are not extended to private individuals IL shou'u
be stated also, that Mr.. Danforth a' n
when the financial stringency was the srea'es'' III
/ creased the states deposit in the Manson ''u
! nv S-A0OO-just the amount OF his loan some pahA-
! "Did Danforth obtain his loan OF 500" from the
Madison Square by promising its officers that ne
would increase the States deposit by that amount
and that therefore its resources would not DC u'''
/ ished?' .ho
Governor Flower clearly has the power under the
Constitution TO suspend Mr. Danforth because OF
this scandalous misuse OF his Office. Article " sec
ton :. =.
THE Treasurer may be suspended from once oy
the Governor during the recess OF the Leeisld1ue,
and until thirty days after the commencement VI
N. next session Of the Legislature. whenever II
shall appear TO him that such Treasurer has IN
any particular violated his duty. The Governor
shall appoint a competent person to discharge the
duties Of the Office during such suspension OF the
! Treasurer"
II will be perceived that the Governor is not re-
/ stricted in his power TO suspend the treasurer.
} lie may remove him when he has in any particu-
/ lar violated his duty" This gives Mr. Flower iull
authority 10 remove ,ir. Ddnforth from his once
/ Of state Treasurer There can be no palmer Vio-
lation OF duty than deposit State funds 70 an
/ extraordinary amount in certain state bank anu
then to accept loan Of money from that pahK
/ without giving -scuri,y FOR II. State Treasurers
should not thus be permitted to add TO their PHI
vate fortunes by loanins the States funds 70 IA
/ vored banks. Governor Flower. as head OF oahN-
ing house himself will recognize the great danger
Of the practice. He will also see that the precedent
set hy Mr. Danforth. unless punished at once ny
his suspension from office may soon lead TO the
/ loss Of hundreds Of thousands OF dollars or the
states money. VIII State Treasurer of an I'M
/ scrupulous nature II Danforth IS not condemned
/ hereafter look keeny at the financial standing OF
I the banks in which lie is thinking OF putting the
/ states money? VIII he not rather deposit the
states money in banks whose officers viii have no
/ objections 70 giving him financial opportunities!
Mr. Danfor,h has given cause for the suspicion
that this Madison square Bank loan or MS i no'
the sole occasion when he has had a personal mo-
,..afs in rF4f ar
The ca shier Of leading bank here said recently:
J Mr. Danrorth at time put large amount or
State money In this bank. Soon after manuiact-
! uring company. which we understand was cohroHeo
by friends Of Mr.. Danforth. applied for loan
We declined to give II. no; caring 70 loan money 70
/ the firm Perhaps the two matters had no relation
/ but AZ all events soon after Danfortf pesah 10
withdraw the States deposit rapidly from our BANK
! and il was not long before We had none OF H. We
have ALWAYS thought that our refusal 10 grant this
loan 10 his friends caused the withdrawal OF the
states money but did not regret what We had
done for We DO not care for business under those
terms"
Governor Flower has a precedent for suSpending
a state Treasurer in H." act OF Governor DN III
sispeuling Thomas Raines State Treasurer from
NJ 70 $50 Mr. Raines was III and incapacitatei
from performing his work Governor Dix suspend
a him from his Office on June l. 1874. and Abra-
ham Lansing. OF Albany. was appointed IN MS
+ place Mr. Lansing served As state Treasurer I'M
der this appointment until september u. M when
Mr. Raines having recovered his health he slrren-
iercd his Office 70 him. and Mr.. Raines resumed
the work OF the place.
In 1873 a Democratic State Treasurer was peril
ously near suspension. In TACT his suspension Was
demanded by "A fellow Democratic State officer, but
d Governor Robinson would NOT recognize the demand
and contrived to suppress scandal 10y compelling
the accused officer to make good the money he had
/ borrowed" from the state Treasury. The com
planning officer was Frederic r. Olcott. then con
,rorer, ami now presiien: Of the Central Trust
+ Company OF New-York, and the officer against
+ whom he made his charges was James Mackin.
then state Treasurer Controller Olcott discovered
In comparing the receipts and disbursements OF the
state Treasury for the previous months in Novem-
ber 1873 that Mr. Mackin had substituted his per-
sonal checks FOR the cash OF the state ana that a.
a result there was deficiency OF Ni.gr Mr..
Ocott at once informed Governor Robinson Of what
State Treasurer Mackin had done and demanded
his suspension from office Governor Robinson rad
lust run for Governor upon the same state tc'e;
with Mackin. who a candidate FOR reelection,
and both had been beaten. lie therefore had COM
J passon upon the man as a fellow-su9,rer. More
/ over II was currently reported that MacNns cleo
ton expenses had been heavy. and there was a
/ suspicion that his notes IN the state Treasury
/ represented part OF his election expenditures Ny
Robinson under these circumstances eXerted mini
sell TO save Mackin from suspension. Mackin WAS
given time to raise money 70 substitute for the
notes This he did. and Controller Olcott was salts
fed. and no one commented upon the affair except
The Tribune and other partisan Republican news
f papers. Mackin it is to be suspected. was aided
out of his financial swamp by other Democratic
politicians possessed OF money, as there Is reason
10 think State Treasurer Danforth has been the
present year.
State Treasurer Danforth afable yesterday
when he questioned by The Trihun' CORES
pondent about the scandal OF his obtaining $occ
from the bankrupt bank. but he refused nrmly 10
say anything about the circumstances OF ms get,
ting the money or his paving II back Il regard
the matter OF my obtaining money from the bank.
he said. "as my private business. Ii * enough TO
say that my note good and that have paid
IT, The transaction is ended. The state has not
lost any money. Nor has the bank lost any money
by me ! diI not know of the banks impairment
OF capital until week Tuesday. Bank EX-
aminer JudsOn l. mistaken In thinking that |
knew ANYTHING about the banks insolvency earlier