New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-03

expenses s4234 so. Al, these expenses were Tor
carrying into effect the corporation aus, Dut.
| in reality they consisted OF vouchers from the
clerical force in the Secretary OF 900 olce.
There is an annual appropriation Oh 49, pay
the clerical force employed in the S.cis,'a'y Oh
States office. and as each clerk receitneu "'' VI
! her regular salary. voucher was required
SECRETARY KELSEY TEsTlFIEs.
: Mr.. Kelsey was plainly affected when placed
in the witness-chair. He said he had been New
jerseys secretary since 1870 His examination
proceeded as follows:
9-ilave You record Of fees coHeTssed 70 N Narch
9Haye the book here: ,1 A ,Ss cash nave ave-
count it came in the office during the per'oa
OF was from this book tina, the returns were
made out TO the state? Ayes sir inns was dur-
Q-Now. I show YOU the book containing the
fees received after April sN Thsn the , fee t sgn
page to page your Initials are signed the botiom'
A.-That was to show that had verified the ac-
counts: -
QIThe books before me bring The rec, record down
Mr.. Kelsey was asked why he had not made
returns to the State quarterly instead OF holding
back the revenues for one year.
Il am not sure there is a law requiring me to
make any return at ALL" he answered Il hold
that strict construction OF the three acts from
| 1879 70 1881 does not require me to make any re-
| turn
Then. why did you make any returns of these
|
simply because the money collected did not
belong to me- but to the State.
HIS ACCOUNTS NEVER EXAMINED.
The testimony proceeded follows:
| Q.--Mr. Kelsey. why did you not make the return
| to the state in detail the law required. instead
My attention was called to that matter. II
| should pace construction upon the act. l
simply meant that should detail the gross amounts
| from each particu ar account the moneys were
q be a
0,ilave yonr accounts eyer been eNamne , Wy
| been open to their inspection. but | believe they
have never examined them ....
during the year? An my. per' nal account in
Q.-When You made your returns did you make
them up 70 the end 81 The Ga o ycaT or o wbeb
81 think not Mr. Kelsey yoHr 1stpr rs. show g
only returned until September 30 OF las, year.
A.-Well. that appears to be right
Then these moneys of the state were held
back thirteen months" said Senator Skrm.
Mr. Corbin reading from the book % receipts
| of the State. showed that the fees averaged
about $4,000 monthly
Q-Now take the year lsss In hat &c case Mr. Mr..
part Of the year from 5000, to Soo,. Is not that
SO? Al don't know the books VII show g.,
regulate that: ought require the returns OF these
r at sSsy Esa noi c So h the
States liberal policy toward corpordtlohS WI" con,
Why why to should oI not in The near f,ar reach o
islaturc should step IN and provide Tor the more
SPEEDY returns.
THE STATE HAD TO BORROW.
WAS the State a borrower during the period
that Mr. Kelsey Illegally retained those vast
sums Of money!" asked senator Kctcham.
Il, was" answered MI Corbn "Up to 1891.
when the state received a return Of the Direct
Tax from the United states Government. II was 4
| heavy borrower"
| Mr. Kelsey said he was acting under the
statute and he believed he had a right to in
crease his revenue whore IL vas possible
The fact was then brought out that Mt Kelsey
only had "A balance Of sl.4ii 10 his credit In IN"
bank to-day while he IL Indebted u IN" STATE III
,ha sIn ~ $40 132 He admitted that hc had the
entire amount invested in private enterprises
He could not distinguish state moneys rom any
other Of his Investments: had never kcp' S'p",
rate account 81 the State funds. ana had ioIo"''
that custom during all the time ne was He're-
senator Ketcham asked Mr.. Kelsey how he
had the money invested. and the witness an
swered that he couldn't exactly say,
"po YOU derive income from II
"Oh. yes" answered the witness. smiling. CO..
And do YOU turn this interest or pr"h's
which YOU receive on State moneys over 10 '''
State?"
THAT Is your Interpretation OF IL
"Wnu MIR Kelsey have you sufficient
amount in proper securities to turn oyer 70 me
state the $50 900 now due when your balance IN
hank shows but 81 4o0?' counsel asked
~ could do SO. YES. sir. and will II directed
or requested by this committee?
Mr. Corbn resumng. said:
q Ssa3 yor pssd The STATE s5s a. and find that
~, referring to your handbook on october OF thht
ye ea =, yq pai abon, $500 for The state d not?
Ayes sir but raised the amount ~, ..
s2sss 81 and October e lss yog oy y The s1r ,
2 e o. where %1s MS mopfy was ' an a5sorSe
in my private account and had invested il III many
won October o. 1872 you owed the state s2f.-
I cJ0 Il, and October OF the same year YOU hal bn,
S sm,, !" 1ne The STATE that year dlan, yol? 4
| Yes. cir: but the State received the amount due
| INVESTMENTS KEPT IL THE DARK.
The witness was sharply questioned by b'th
| counsel and members Of the committee regard
ing the nature Of his investments but his re-
| plies were not explicit. He had some money
| invested in business. he said. and some In Sc
| cur,,,cs How much he mad prohted by invest
| ing State money as his own he declared he was
absolutely unable 10 say.
after the act Of 1891 was passed SAID the
witness Mr. Heppenheimer the Coh'rTl'', ", ,,
that the fees Of the Prerogaivc Court 81 'u'n m''
| no retained until my new term began IN IH'z.
| "T'hen you did not retain the ices!
| "The first two quarters did not, and the last
| two kept them. ,,.. -
| the amount Of Prerogative fees cohec,'"' anu
simply kept them all ior y"u' wv" ~
| THAT IS correct .roo.o, y. thu
| Mr.. Corbin read list Of fees collected o, tne
| prnrnoative Court and retained without Warrant
| If law since 1891 by Mr.. Kelsey The 'otai was
| $2.929.
| DISCREPANCIES IN THE BoohS'
| During the six years since 1870 Mr.. Messy l"
| was shown has expended N5sCG 90 Tor services
rendered in carrying into effect the corpora.
| ton laws. under authority or the "'.'e yo"'''
| Mr. Corbin explained at length tha' MI Ne''e'
was practically paying his cier'cai io'oe ou' VI
| the corporation fees ana ura"'"s q"
| time the 1900 year allowed 10Y o'," ~, .,a
| a. Xo,sau.s hooks showed that he had paid
,,,, e. "a, ,pstead Of $3.50 charged for as CLERK
/ ~ vo,'NN L. ed for.