The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-11-02

The secrets Of the fusion administration
are not being given TO tha public with
the freedom that the people would exc
pect from reform" officials who pretend
nothing IS kept from the people. No ono
has heard from jenkins. or Bridges, or
Browne of the state land commission: but
they have heard from an attorney who
has no connection with that office. and
naturally the attorney lodged the issue.
No one has risen yet to explain why
the $4,000 sunk in the broken Tacoma
bank has not been collected from the
state treasurer's bondsmen. some Of whom
come forward with statements OF willing
ness to pay. but say they have not been
asked TO do so. What Is the reason for
this unnecessary delay OF = year and =
half?
No one IN the board OF state land COM
missioners' office has come forward 10
explain why the t23o.otn in the permanent
school fund has been kept in pet banks
when the board OF state land commissions
ers is authorized 10 invest it in ma
tionai. state. municipal or other county
bonds at par bearing not less than
per cent. interest per annum, or in war;
rants drawn upon the state OK Washing
ton"
]. 7. Ronald. an attorney and fusion
politician Of Seattle. attempts to explain,
He quotes decision on the investments
of the tide land fund In general warrants,
ard says because the supreme court ruled
against the power Of the treasurer in that
case that no investment OF the school fund
can be made.
In the first place. Mr.. Ronald ignores en-
tirely the authority to invest In national.
state. municipal or county bonds. Per-
haps there are none such that are good
securities in the state. or Is Il possible
that the land commissioner .s too busy
travelling over the state making political
speeches 20 have time TO invest such q
paltry sum OF s23o.0D belonging TO the
state? Or are the bankers and warrant
brokers too much interested to allow the
state to invest In bonds?
But In regard to this decision, Mr.. Ron.
aid refers to: He quotes the court as say
ing. in referring to the tide land fund an.
propriasion on which his argument =
based:
that at the time OF the passage of this
the state were being sold and discounted
for less than their face value. and in de-
iermlning the purpose and effect OF tho
Act that fact may properly be cnnsid-
cred"
Here ss the difference that Mr. Ronald
did not consider: The law authorizing tho
investment OF school funds was passed
when state warrants on the general fund
s4rgrx, sal tfr<~ 81. IT,.
ss.s tic .nvestmens OF the tide lands fund
WAS passed after the fear of a cheaD
money had driven state warrants DOWN
to s5 cents. Hence when the court uses
the above argument in the tide lands fund
case 1t does not apply Al all 10 the school
fund case.
The school fund law was pass.
cd during R~pubIiran admtnis-
tration by Republican 1egisla-
fure and tt was enforced success.
fully by Republican officers.
when warrants were above mar.
II the fusion state admtnistra.
tIon coald not enforce IL saee~ss-
fuiiy. IL ts merely u confessfon oR
inferior xoverumen Mt. or ineomp~.
tent management.
Gov. McGraw. In his message on retiring
ilot2a Jstffuats AtSts t3ssf OF tH1
success Of the Republicans In handling this
fund. and at ticre TO my personal knpwt-
edge when warrants were wortfa sios:
''On my recommendation, tine last legfs.
laiure authorized the Investment of tho
permanent school fund In state warrants
The result has been gratifyiuw.
Under the former gyfsten profitable 49,
curisy was almost impossible 30 obtain ana
the unluvested fund gradually cxepE up TO
sIsI. si7.ss on November ], 1894. On October
warrants SEE. .sps. 49, bearing prr cent irs-
terest per annum. No better security can
he had by the stats than the states own
paper. The system practically amounts
20 taking money oar Of one pocket put
ting r. "a. another. and paying TIE cur-
rent school fund a high rate or lsserest
for the privilege Of sglng 50. Prior TO the
adoption Of this system practically the
best rate Of interest OH securities obtain
aole averaged 81 per cent.
Son the transactions of the past
two years the current school
fund has, therefore. pronted, and
will eoaftnue to profit uatfu the
warrants age red~eased, ~ the
rate of ~ per cent ian tn~rease
over previous fnvestmentaD Na
e2l@,SOd.4 ~. os e5,31O per annuna
q showing which sholld be gratifying to
syeV taxpayer and parent of school
child"
- -. >~ssw-~ - 49, A-~~s~~a-a. - a-.izz.3k