Semi-weekly register. (Brookings, Brookings Co., S.D.) 1894-1898, 1898-11-04
PHILLIPS RECOaD.
Summing Up of His Financial Opera.
ti0ns for the State.

| DeaQWOOQ independent: When kirk
Phillips was inaugurated as state treas
urer Of this state he found the treasury
practically bankrupt, only about $24,-
r ing found on hand. He ir'~'"-
d'".o sold s250,000 worth of fun
". ants. There was no pretense OF a
necessity for selling so large an amount
of funding warrants. There was no such
sum necessary to meet the obligations
of the state. AT the same time he sold
make good" the money stolen from
that by Taylor. Just how the state
could be reimbursed for money stolen
by Dor. owing money on the credit Of tho
state, Is a specimen of finance which
| can only be thoroughly comprehended
| by such financiers as Kirk Phillips. If
John Smith steals S1O0 from Peter
Jones, all Jones has to do is to issue
| bond and borrow 500 to REIN
| burse" himself. Taylor stole 100000
of the school money and Phillips, tc
reimburse" the state, borrows 100000
| on the credit of the state to make it
good! And this is the man who is held
uD by the republican press as the great
financier Of modern ages.
rhe constitution provides that thd
only use TO which the permanent school
fund can be put, is that it may be loaned
upon real estate or invested in local
school bonds. Thus Phillips is placed
in the position Of borrowing 100000
on the credit of the state for the eX-
press purpose of loaning it on real es-
tate or investing it in school bonds.
Was not that a fine financial problem:
But the fact is, that money or greater
share of it has been lying in the banks
ever since tnat time, as there is no de-
mand for school money to be invested
in real estate loans or local school
bonds.
Although Phillips found an empty
treasury on January 1, 1895, the state
auditors report of June 30, 1895. shows
that he had on hand in the banks $780,
iS9.ol, every dollar Of which was Dor.
rowed money-borrowed on the credit
of the state for the express purpose Of
being deposited in the banks that Phil
lips might draw interest on it. We say
tidJ lHlS vast SUM WIS III all
borrowed money, because the receipts
of the state between January /, 1895,
and June 80, 1926, including that which
was recovered from Taylor, just about
paid the EXPENSES Of the state, and this
balance of 1920. 4S9.Sl about represented
the amount which Phillips had borrow
~ during that time.
The auditors report for the year end
I,,,~ .1,~ a, L, l.
hand $414 79010. The state auditors
report for June 30. 1897, shows that he
had on hand s407,744.86. The state ev-
aminer's report for AUGUST /, 1898.
shows that he had on hand over $780,
600. Thus for the past four years Phil
lins has had on hand in the various
banks in the state and in CHICAGO, an
average of more tran 100000. the
greater share of which was money
which Phillips borrowed on the credit
OF the state for the express purpose OF
piling up in the banks for his own en-
richment.
That he has been drawing interest on
this vast sum is beyond any question.
Indeed Philips himself has not dared
II denv it. Tne deposition Of the cash
ier Of the Dakota National bank is con-
elusive OF the fact that he did receive
interest on the deposits in that bank. 1t
is said that the rate Of inerest which
he has received upon most of his depos-
its in South Dakota has been 4 Der cent
ru' we will call it 5 per cent. Thai 80"
up"n $500, 900 means $4,000 per we"
s4S000 for the four years. Every dollar
of that interest money belongs to tho
state Of South Dakota.