The Red Cloud chief., 1897-01-15

This would Civ n much better oppor-
tunity OF equalizing the burdens Of taxa
ton by varying the levy In different coun-
ties as the different valuations may re-
quire and yet enable the board to collect
the necessary revenues and meet the APP
preparations made by the legislature.
Depository Law.
The depository law, enacted by the leg
islature OF 1891. has now been in opera
ton for a period OF time sufficient under
ordinary circumstances and normal con-
ditions TO test Its usefulness and advant-
ages, or disadvantages. as the case may
DO. The wisdom and desirability Of such
a law have been questioned by many,
including those who benefited by the OPP
Grafton OF the previous law, permitting the
state treasurer to use all funds OF the
state under his control for private gain
and speculation purposes during his term
OF office. ] have been n warm supporter
OF the depository law n believe In the
wisdom OF Its enactment. II adds a new
source OF revenue TO the state. and re-
moves the temptation to use public funds
for any other purpose than that for which
collected. The law itself could be con.
siderably strengthened and I recommend
for your consideration the ACCESSIBILITY of
amending IL so as to remedy imperfections
which now exist. 1t Is to be remembered
that its operation has been during a
DttiOu WUtfI " OtS VI OTt DOtn DIl-
vate and public. has been very general
throughout the entire country. I can see
no good reason why II the treasurer him
self must give a good obligation for the
return of funds placed In his hands for
bookkeeping. that the same may not rea-
sonably be required of the different de-
positors. Thus Is obtained a divided re-
sponslbllity n an aggregate security
that 10 far better than a simple obliga-
ton for the return OF the entire sum-.
The obligation of each depository should
be as strong In proportion
to the amount Of money
secured as can possibly be had for the
entire sum. I am of the opinion that the
law has been abused; that II has been
used as a means OF assisting banking in
terests which may ave been in need OF
current funds for the transaction of bust
ness. when the true rule should have been
to have made repositories Of banking in
stitutions Of uDquestloned standing and
Of unauestioned security. with the object
In view Of having the funds 1t all times
subject to the call of the state treasurer
in the ordinary course Of his business.
AMENDMENT SUGGESTED.
i would recommend the amndment OF
the law SO as to provide that s~ureties
OF state repositories shall be others than
those actively engaged In the manage
ment OF the depository bank; that n de-
pository bank should not entftle the bank
to deposit OF state money Hereunder for
a longer period than two years; that the
state officers approving the bond should
a the right at any time they deem
necessary TO suspend, as a depository,
any banking institution and to direct the
state treasurer to Withdraw all state
funds therefrom; that THE state treas
urer. In the depostting OF state money,
should at all times be under the control
of the board approving the bond. re-
Nz.tl tho npnnttpk AaNnttA tS An~S 900
bank. and hat the sureties on all de-
podtory bonds shall Justify by making
oath in n value OF their property over
and above their debts and exemptions.
The general government has found II de-
sirable to designate banking institutions
as repositories for funds which would
otherwise accumulate in the United
States treasury. and I can see no good
reason why this same rule should not OBJ
tain In the different states, such de-
positories being made not only the
mean for the convenient and expedttious
transaction Of the states business. but
also a source OF income to the state.
THE HILL CASE.
At the beginning of my term OF ONCE
q suit was pending In the supreme court
to recover tho sum of S236 900 from ex-
Treasurer J. Il. Hail and his bondsmen.
The history Of this litigation Is familiar
to all Of you. The money wal lost In the
uituIo VI NV Sdpitdi W III
That this amoun of the states money
was in existence at the time OF the set
Element of Treasurer BARLEY with his
predecessor. Hill. no person acquainted
with tho circumstances could believe for
q moment The money had evidently
been lost and no attempt made to account
for II al the expiration Of Mr.. Hills
term Of ONCE. except by a transfer Of
credits on pager In this bank. a bond be-
ing prepared and approved. making the
bank q state depository. and this myth
cal credit being placed to the credit Of
the state under the depository bond.
The frSt trial of tine case In The N-
prone court resulted In a disagreement
OF the jury. The case was again tried
n the jury found for the defendant.
The matter was h argued to the SUI
preme court at length upon questions Of
law. when It was finally decided In favor
Of tho defendant. ! am not entirely Ia
mlliar with the deails and intricate me-
anderings of all the questions of law
and fact involved In this important case.
I do not doubt In the least but that this
money has been lost as n result Of mis-
management by those having been an
trusted with the collection and dts
bursement. And It would seem that the
responsibility which certainly exists
should be located 30 THAT the people
might regain what has been ~unlawfully
taken from them. 1t Is to be regretted
unat persons guilty OF gross misconduct
misappropriation Of funds belonging
TO the people of the state are suffered
TO escape legal responsibility. Whether
any further EFFORT should DO made TO re-
cover this money lost to the tax payers
OF the state. I leave It to you to de-
tsrmine.
The legislature made an appropriation
Cor one expense of carrying on rhis and
other suits. There remained after the
trial OF the nrst case the sun OF q, 100. 10
Upon an opinion from the court, and
after conference with the attorneys rep
r~csentdng the state. in order to prevend
this appropriation from lapsing. q war
rant a issued Co me for the balanc,
by the state auditor upon . properly
certified voucher presented to him fol
that purpose. The warrants thus draw
were disposed 81 by me from time to tim'
In order to meet the further expenditure,
required In oAis case. After paying a
the Legitimate claims there was covere,
into the state treasury the sum OF 1A.t67.
yet remaining unexpended Of the appro
priation. An ytemixed statement of tn
expenditures N this case II presents'
with tfds message. 40
PERMANENT SCHOOL FUND.