Daily capital journal. (Salem, Or.) 1896-1899, 1897-03-05
CERTIFICATES d.
cashier Albert's Views Of the Nature Of
Claims Against the State.

National bank, holds that the action
of Secretary of State Kincaid, in sus.
nending the issue of certificates OF In
debtedness $50 called to creditors Of
h state docs not affect che status of
claims. Ii only emphasizes the fact,
saws Mr.. Albert, that such certificates
have never approved a CAIN, bat me-
rely certified that a claim had been
presented and filed, not audited. Mr..
Albert further says:
"Holders of these certificates have
been generally misled as to theircha
acter, assuming the unread printed
form signed by the secretary to be a
negotiable instrument, issued in re-
cognition CT an audited claim against
the state.
"The~ secretary is powerless TO recog-
nize such claims, being authorized to
audit and issue warrants of claims
only after the legislature has apprOp
rated funds therefor; the two separate
and distinct acts of audit and pay
ment being held, by the decision of
the supreme court, in Brown VS.. Fleis-
her, to be inseparable.
"The suspension of payments by the
state in 1853 1877, by reason of non-ap-
preparation, was free from much of
the hardship and injustice to credit
ors that must inevitably follow a sim
liar omission on the part of the pres
emit legislature-bY the issuance Of
warrants in payment of claims. These
warrants being negotiable found a
market at a maximum discount of %
per cent. However, in the meantime
the political complexion of the legis-
lature had changed, and, its %inYesti-
eating committee repudited the
claims, cutting down and in sume in
stances repudiating the warrants. A
succeeding legislature, however, paid
the repudiated debts in full, fortified
by the decision of the supreme court
to the effect that the secretary wa
the sole auditor of pubic accounts
under the constitution, hence the
work of the ''smelling committee
was ultra wires.
sour laws afford no protection to a
claimant who has rendered service or
furnished supplies to the state, even
though authorized by law, and the
compensation fixed by statute. I'm
der section "a, of the constitution the
legislature may provide by general
laws for bringing suit against the
state, but as there has been no legis-
latiOn to carry this provision into
effect, all claimants, the just and the
unjust alike, must depend on the
within of the legislature for an appro-
priation, provided it organize and
provided, further, it appropriate.
".Should the present legislature fail
to perfect its organization, SC as to
make the necessary appropriations fol-
which being collected, the state-un.
less it repudiate the claim of its credi.
tors for interest, which is as just and
legal as for the principal debt-will
directly lose to that excent. 1t viii
also lose by reason Of the enhanced
prices required to be paid for It's fu
ture supplies,
1.-THE unpaid claims to the present
date including some S55 200 of last
years Acknowledgements approx
imately 100000, all upon a cash basis
the loss by reason of depreciation il
the value falling upon the claimants
line 0 grlevouS loss however
will be borne by the states employees
many of whom depend upon theil
quarterly stipend for the maintenance
of themselves and families, and who's
necessities will compel them to dis
count their wages to the full extent o
all doubt and uncertainties as to b,
finally paid.
ut must be remembered that th'
certificates now being withheld b!
Secretary Kincaid cannot interferi
with the sale of the claim, which car
be transferred by Endorsement of tn
verified voucher itself. instead of thu
certificate for the voucher on file, a