The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-11
THEY ASK THAT THE INTEREST
BE REMITTED.
ANSWER OF The BOARD
ALICE THAT lT WAS MOI LEGALLY DUE
fthe Board is Compt IIei to Change the War
rants the Court is Asked 10 Compel
Treasurer to Repay the $22,-
600 Paid on MeWb rne's
Note

Note
The suits between the State Treasurer
and the Executive Board of the peniten-
tiary are set for hearing before Judge
Moore this afternoon ut q o'clock. The
two cases--Arendell's case against the
State Treasurer to compel him to pay
rhe warrants. and the Treasurer's case
against the Executive Beard to com
mel them to change the warrants
will probably be combined into one.
Treasurer Worth is represented by
Douglass & Simms and the Executive
Board by Shepherd 4 Busbee and X.
O. Burton.
The answer in the case brought by
the Treasurer against the Executive
Board was filed yesterday 1t charges
among other things, that the State
Treasurer has been collecting from the
penitentiary interest to which he was
not entitled, and prays that III case the
manGamus he asks is granted, he be
compelled to repay about S22.OOO he
collected out of the earnings of the pen
itentiary on Mewborne's note for bor-
rowed money.
The answer begins by denying that the
issue of the bonds was for the purpose
of paying off the indebtedness OF the
State Of North Carolina arising out
of the conduct and management of the
States Prison prior TO the first day of
January, 1899, and on the contrary al
lege that the fund arising from the
sale of these bonds was 10 be applied
to the payment of the Indebtedness of
the States Prison outstanding and UNI
paid on the 7th day of March, 1899, the
date of the ratification Of the act author
izing the bonds.
The defendants deny any definite
knowledge or information as TO the
transaction between the plaintiff Worth
and j. NJ. Mewborne late superinten-
dent of the penitentiary. They say no
record Of the money borrowed by New
borne was ever made upon the books of
the penitentiary so far as they
have been able to discover.
But upon information and be-
lief defendants allege taht the facts
connected with the transaction are as
follows. viz That in May, 1898, New
borne borrowed from the State Treas
urer the sum Of $4,000. giving his note
as security therefor: that in the latter
part of the year 1898 Mewborne paid the
Treasurer as a credit ON this note
the sum Of $4,000; that after the 1st of
January, 1899, there came Into the
hands of the State Treasurer as treas
urer ex officiO of the penitentiary, GER
tain funds amounting to about S21 900
or So, 600, belonging to the penitentiary
and constituting part of its income for
the year 1890: that the Treasurer with
ont any warrant or order from the then
superintendent drew a draft on him
self as treasurer ex officio of the peni-
Tertiary in favor of himself as State
Treasurer for the whole amount so com
ing into his hands as treasurer eX officio
and applied it as a credit OH the note
executed to him by Mewhorne leaving
many other creditors Of the States
Prison whose claims had been previously
duly audited and approved and duly pre-
sented to him for payment altogether
unpaid: that the plaintiff Worth charged
himself as treasurer eX 0fficio of the
pemitentiary with interest on the loan
and paid the same out Of the amount
collected. And defendants aver that if
the contention of plaintiff in this action
is correct in regard to the Interpretation
of chapter co., Laws of 1899 (which de-
PENDANTS deny) then the plaintiff had
no authority in law to pay any indebted
ness of the penitentiary arising during
the year 1898 out Of the income or re-
ceipts of the penitentiary during the
year 1890. and that the application of
this $21 900 or 1000. by the plaintiff
was according to his own contention
unauthorized and without warrant of
law, and the money should be returned
by the plaintiff to the defendants to be
applied to the Indebtedness OF the tSate's
Prison arising since January 1st. 1890.
And further defendants say that they
are advised and insist that for money
so advanced by one department Of the
State government to another, no interest
is chargeable. and that the warrant
should be credited with the amount that
was so charged and collected as inter
est, said amount being as defendants
are Informed S676.71.
And defendants further say that in
addition to the warrant set out in the
complaint, the plaintiff holds as security
for balance due him on the note OF
MewbOrne a draft drawn at the plain
TINS request by the superintendent OF
the States Prison since January 1st.
1899. on II. We'll and Bro. of Colds
bOro. in favor Of plaintiff for an amount
almost if not quite sufficient TO dis
charge the balance due on the note
The defendants admit the issuance OF
this warrant but allege that the plain
tiff received and holds it. that the rea-
son asserted for his so-called refusal
to accept" the warrant and his failure
and neglect to pay the amount to him
self is groundless and invalid: that this
fund in the hands of plaintiff is applica-
BILE to the payment of the warrant and
others of like tenor whether they he
issued to discharge an obligation of the
penitentiary arising before or after Jan
uary 1st, 1899, mp to the 18th of March.
1899, and would be in plaintiffs hands
a proper and sufficient voucher In re-
spect to the disbursement OF the fund