The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-06-18
And Treasurer Worth Refuses
To Pay Them
ATTORNEY GENERAL SENT
FOR
THE CONTENTION OF THE TWO
SIDES STATED.
IS THERE ANY POLITICS IN The sQUABBlt?
Treasurer Yesterday Refused To Honor $780,
600 Of Vouchers. A Few Small
Claims Paid Before the Attorney
Generals Opinion Was
R, c.ved,

ClalInS faio before tne httOfnty
Generals Opinion Was
R, c.ived.
As result of the opinion of the At
torney General touching the payment Of
penitentiary claims, published in yester-
days paper, there is now clash be-
tween the State Treasurer and the Exec
utiye Board of the States Prison.
1ne State Treasurer, following the At
torney Generals opinion, announces that
he will pay out of the funds arising from
the recent bond sale no debt contracted
after December 31st. 1898.
The Executive Board contends that
this is not a correct construction or the
law, nor the intention of the Legislature
in enacting it.
Chapter GOT, Laws of 1899, provides
for the issue and sale of SllO.-
600 of bonds to pay the indet-
edness of the States Prison.
The preamble defines the nldebt-
edness as that existing ON March Z. 1S99,
by the language of the preamble,
Whereas, there are NOW outstanding
and unpaid divers liabilities of the State
of North Carolina arising out of the
conduct and management of the State ;
Prison. The word now the Board
contends. plainly means the indebted
ness of the States Prison at the date the
Act was ratified, March 7th, 1899.
..Now we hold that under this law,
said Mr.. e. J.. Travis, chairman of the
Executive Board, yesterday. I'VE have
no right, and the Treasurer has no
right, to decline payment out of these
bond funds of a debt due on or before
March 9th, the time of the ratification OF
the act.
.sWe will not change single voucher.
We have audited the claims and APPROX
ed them, as the aalw says we snail do.
We find i'm it no provision for re-auditing
by the State Treasurer, and at he re-
fuses to pay the warrants as made out
by us then the holder of the Warrant has
his remedy in the courts by a mandamais
against the State Treasurer.
If Mr. Worth persists IN mis- determi-
nation not to pay these warrants it will
probably cost the State 5000 or 500.
There are about 800 of the warrants ana
they are being sent to the banks here for
collection. If they are not paid they will
60 to protest and that means 81 or Sd
each. ~ "a
II do not believe the Governor when
he returns will advise such course. The
matter. understand, is to be submitted
to the Council of State.
1.-THE ground of Mr.. Worth's conten-
u. f. Vo1c 1x.ac If
up is that there was $50 900 annually
appropriated for the support and MAIN
tpnance of the penitentiary; that this
must be used for all expenses incurred
after January !, 1899. Now this was
not the idea of the Legislature at all.
This $40, 600 appropriation is contingent;
to be used only as needed. 1t is optional
with the board of directors whether it
shall be used at all or not. There is
nothing in the law requiring us to use it
and we will not use Dit if we can help it..
IF we are allowed to wipe out the
entire Indebtedness of the institution,
up to March 9th. as was contemplated
by this act, we will have it on solid
financial footing that will save the State
much money. But il we are compelled
to use the $50,UUO appropriation for 1899.
to pay debts, we will be left without any
money to run on, and will he forced back
on the credit system that proved so dis
astrous to the former administration.
The recent history Of the penitentiary
has been such as not to make its finan-
cial standing very good, and immediate
~ we go back to the credit system we
will have to pay enormous prices for our
purchases. 1t was the intention of the
Legislature to put the institution on a
cash basis so as to take advantage Of
low cash prices.
IF we can pay the penitentiary debts
out of the bond funds, then the $4,000
appropriation will carry us to the end
of this year, leaving us free from debt
and our crops unencumbered. Then
these crops will carry us through the
next year and we will not have to use
any Of the 1900 appropriation.
"As we have made out the vouchers
the payment Of the outstanding indebted
ness of the institution will just about
take the entire proceeds derived from
the bond issue"
Col. Osborn. another member OF the
Executive Board, talked much to the
same effect:
1.-The provisions of Chapter $40, appro-
priating $4,000 for the maintenance Of
the institution for each of the years, 1893
and 1900, do not refer to, and no way
effect the provisions of Chapter GOT au-
thoriZing the bond ISSUE" he said.
'.In addition. the law gives the Exc
cutive Board sole power to audit the in
debtedness to pay which the bonds were
issued: and when so audited by the only
authority empowered to audit them, the
Treasurer has no power in law to refuse
to pay them. The warrants on the
Treasurer issued by the Executive Board
were issued after the advice of counsel
had been taken ON the subject.
The Board could do no more than
audit all claims and issue warrants on
the Treasurer for the claims allowed
The Board has done it's full duty.
IF the Treasurer sees fit to refuse to
pay warrant duly issued to him, the
Board can do nothing, and if any dncon
venience results to anybody, it cannot
be the fault of the Executive Board
Treasurer Worth's position in this mat
fer is set forth i'm the following letter
which was mailed to each member of the