The Red Cloud chief., 1897-02-26
/ SPECIAL MESSAGE
GOVERNOR HOLCOMB SUB
MlTS A SHORT ONE.
Calls Attention to the Fact that Er-state
Treasurer BARLEY Owes the state Over
$500 200. and Advises Appointment Of
Joint Commltte Of Investigation.

w suo eoApoyorS VI Nophoohos
II shows that outside Of all the money
now on deposit and heretofore lost in
state repositories, Ex.Treasurer Bart
ley still owes the state the enormous
sum Of 1916 for which he has never
In any way accounted. The message
Is a follows:
To the Senate and House Of Repre-
NEUTRALITY-SUSPICIOUS.:
L deem 1t proper to acquaint the
legislature with information now In
my possession respecting the condi-
ton of the states finances more in
detail than l was able to give in my
biennial message, and also to advise
your body respecting certain matters
that have arisen concerning the same
matter since the submission of that
message. In his biennial statement,
the state treasurer reports a loss Of
S271,522.08 in banks designated as
state repositories which have closed
their doors and ceased doing business.
OF this sum, $780, .83 was to tho
credit Of the state in the Capital
National bank of Lincoln at the time
OF its failure, January 81, 1893. To
speak Of this money being lost under
the operation Of the depository law is,
in my judgment, a perversion of
history as we'll as of fact. It may, how
ever, be said in this connection that
dividends to the amount of Is per
cent have been declared by the re-
ceiver Of this bank. What further
sum, IL any, may be realized from the
assets of this institution / am unable
to speak Of intelligently. Suit has
been brought, and is now pending, to
recover the amount due the state on
the dividend first declared. just why
this sun should be withheld from the
state Is not perfectly clear. 1t has
been suggested, however, that the re-
ceiver denies that any such sum, as
claimed by the e~x-state treasurer, was
ever deposited In the bank. It thus
appears that in the state courts the
defense by tho ex.treasurer and
his bondsmen was that the
money had been deposited In the
bank under the depository law,
Tense of the bank in the federal court
| o6oAhSb R1ylu8 WV olNluOuOS - tAot
the money was never in fact deposited
In the bank, and that, therefore, the
state is not entitled to share In the
dividends. With these adjustable do.
lenses, and the uncertainty as to the
value Of the assets, 1t Is yet quite I'M
certain what amount the state may ul-
timately realize from this source.
The Buffalo County National bank
was designated as a depository Sept.
4, 1894, and its doors we're closed o.
tober IL, following. The state had on
deposit at the time $4,000. OF this sum
s5O1 has been paid by one dividend,
leaving s4,499 yet due the state. Icalled
the attention Of the attorney general
to this matter January l6, 1896, and
suggested the proprietyof taking prop
or steps to collect the amount due
the state from the sureties on the de-
pository bond. No action, however,
was taken until December, when suit
was instituted against the bondsmen
to recover the amount due. Some of
the b%ondsmen, l am advised, are re-
sponsible for the entire amount, and
l doubt not that by prompt and Wig
orous action the state will be prevent
ed from losing anything OF account of
this deposit.
The Bank of wymore was closed
August 9, 1896. having before been
designated as a depository, and at the
time of it's suspension 1t owed the
state Sl4,965 81. The sureties on the
depository bond. in my judgment, are
amply responsible, and the amount
due the state may be recovered by a
proper MISREPRESENTATION that:purpose.
l am advised that persons interested
In this bank are expecting to pay all
depositors in full.
Globe Loan and Trust company Saw
ings bank in Omaha, June . last, there
we're funds to the credit OF the state
in tho sum Of Sl2, 1892 "a. Soon after
tho suspension of this institution a
bond for the payment Of all of its do.
posits was given and approved by the
state banking board. Under the con-
ditions of this bond these deposits
we're to be paid within four yea RS. In
addition to the security thus given.
the depository bond seems to provide
reasonable protection to the state and
by the institution of a suit for that
purpose 1t is hoped that the state may
be able to realize the entire amount
due it.
The treasurer, in his statement, re.
ports S2,S03.1 IA in the First National
bank of Beatrice. Since that time
this bank has resumed business and
the amount due the state has been
paid into the state treasury.
Since the submission of the bien.
nial report above mentioned, the First
National bank of.Alma has suspended,
with state funds on hand in the sum
of S40,3l2.4 40. This bank had given a
bond as a state depository in the sum
Of $4,000. approved February %, 1894,
thus emitting the institution to be
made a state depository for the sum OF
$4,000 only. It Is uncertain as to the
amount which may be realized by the
state on account Of this deposit. Ii
no fraud or deception was practiced
upon the state in connection with the
designation Of this bank as a state de.
pository, 1t would seem that the state
ought to be able to recover the full
amount due under the terms of the
depository bond.
Ioeira aloa In xL..