Omaha daily bee., 1897-11-15
HoLcoMrs rNrrNA nLE ruslrloM

HOLCOMBS UNTENABLE PUSITtON
When the charge was made In open
court by the attorneys for the sureties on
the BARLEY bond that the greater part
of tile state treasury defalcation dated
from before the beginning OF Bartley's
second term and was known to Governor
Holcomb at the time he approved the
second term bond, the prominence given
to this startling disclosure by The Bee
was ascrbed by the governor and his
party organs to partisan malice and a
desire to fabricatc campaign ammunition
for the republican ticket. The offer OF
the attorneys 10 prove their charges was
characterized as bluff to Influence
public opinion in favor of their clients
While it may have been unfortunate that
this episode occurred in the heat of a
campaign, the points made by The Bee
were by no means frivolous or designed
merely to create Il diversion from the
issues before the people. One point in
particular thus far scarcely touched upon
becomes on reflection so serious as to
Gcmaud calm and dispassionate discus
sion.
In his open letter under date of October
22 in which he tries TO set himself right
before the public with reference 10 his
official action in approving Bartley's sec
ond term bond Governor Holcomb de-
clareS:
| could only be expected to make a rea-
sonabe effort situated in my position as I
was, to require a full and complete ac-
counting of the funds belonging to the state
treasury. This ] did. l wish to call atten-
ton to the fact that after the enactment Of
the depository law by the legislature the
supreme court in an opinion handed down
in February, 1894, held that the provisions
OF the depository law had no application to
educational and trust funds and that 1t
would be unlawful to deposit these funds in
| state repositories.
This position is absolutely untennble.
The supreme court has never rendered
such decision and nothing that Las
emanated from that tribunal in relation
to the investment of the school funds Can
be construed or tortured into forcing the
treasurer to deposit money belonging to
the school fund in banks that are not
state repositories. The decision of the
court cited by the governor simply held
that school moneys are not classed
among the funds which under the deposi-
tory law are required to be placed on
interest in depository banks and specially
secured by depository bonds. Under the
false theory of Governor Holcomb the
strongest banks in the state would, by
becoming state repositories, debar them
selves from receiving deposits of school
funds while banks too weak to give Il de-
pository bond would be in position to go
into partnership with the state treasurer
in farming out the school funds.
1t is almost incredible that Il lawyer of
the reputation of Governor Holcomb
should for moment contend that this
policy must be pursued by state treas
urers until the constitution shall have
been amended. The most charitable
view to take of the governors attitude
on this matter is that, finding himself in
a dilemma, he has accepted Bartley's
version of the law which he formerly
professed to combat. Barley knowing
himself to be a defaulter for several hun
dred thousand dollars. could only trump
up an excuse for alleged losses by bank
failures under the plea that he was not
allowed under the depository law to put
the school fund into secured state de
pOsitories. That plea, however, should
be too flimsy to deceive anybody, least of
all an executive who has served on the
bench and whose duty it was to exert
due diligence to prevent the dissipation
of the trust funds belonging to the chill
dren of the public schools.