Omaha daily bee., 1899-10-07
HOLCOMB AND A CIGAR BOX
Leaves from the Record Of Testimony in the
Barley Case,
WHAT EX-GOVERNOR SAID ON THE STAND
Filing of Appeal in the Case of the
State Against the BARLEY Bonds-
men Recalls Some Inter-
estInR Facts.

LINCOLN, Oct. 6.-CSpeciall l--The hling Of
the appeal in the supreme court a few days
ago of the case Of the state OF Nebraska
against the bondsmen of ex-State Treasurer
Joseph BARLEY has revived public interest
In the transactions in the defaulting state
treasurer and has caused many people to
inquire into the early history of the case.
Some rather important and peculiar testi-
mony was given by Governor Holcomb in
the first trial of the case in Douglas county
which, for some reason, was not repeated at
the subsequent trial OF the case, notwth-
standing the governor testified at each.
The failure OF Governor Holcomb to make
a proper settlement with BARLEY and his ac-
ceptance of a worthless bond, whereby the
state lost half a million dollars, is a matter
of record, Holcomb was elected governor in
the fall Of 1894 Joseph BARLEY had then
served two yean as treasurer and there was
suspicion in the minds of some that his
accounts were In bad shape. The governor
elect was warned that the treasurer was a
defaulter and that very careful accounting
should be made to protect the state from
possible loss through a careless settlement.
In spite of this warning and in spite of the
law, the new governor, apparently, by his
own carelessness, allowed Barley to de-
fraud the state. After a iong and private
consultation with the state treasurer he ac-
cepted a new bond upon which most OF the
old and already accountable bondsmen quail
fed for fabulous sums. According to Hol-
combs sworn testimony no attempt was
made to examine into the real worth of the
bond On the witness stand Holcomb ad-
mitted that ho knew very little of the trans
action and could not even tell the date of the
acceptance of the bond.
One Of the bondsmen was the president of
bank which held over 5000 900 of the state
money The bank was not depository and
therefore the deposit was unauthorized and
illegal. Governor Holcomb accepted this
bank president as bondsman, who qualified
in the sum of s200000 lover and above all
debts and liabilities"
The worst part of the deal was the pre-
tended settlement with the treasurer. The
transcript of Holcomb's evidence in the
Omaha trial is the best proof and 1t is ac-
ccssible to the public.
According to this testimony Holcomb first
held private consultation with BARLEY and
then they both entered the treasurers of
flee, where they remained about two hours.
The governor testified that ne looked over
ledger, or some such book, in which there
were some accounts. Then BARLEY produced
q SAb"i IVA Soh'diuiH6 SOult SLIPS Ol paper,
representing what should have been about
$46o,oOO in cash. He also produced $50, 900
in cash. The law required 1t all to be cash
but according to Holcomb's testimony 1.-The
law was farce and a sham" This test-
mony Is a matter Of record.
The governor did not examine the slips
OF paper closely. He admitted on the wit
ness stand that he did not know positively
whether they were genuine or not. He knew
that the bank which was Hca legal depos-
tory was represented in - cigar box by a
slip calling for over s2OO,CSO.
Cleaned from the Records.
: The story of the settlement is best told in
the exact words of the record The case
was tried before Judge Clinton N. Powell
and jury in Omaha during the month of
February. 1898 The following extract from
Governor Holcomb's sworn testimony is from
pages GIT to 623 of the certified record, bill
of exceptions, filed with the appeal of the
case in the supreme court last year, testi-
mony being given on cross examination by
J. C. Gown:
9ss 9s ask o what he sas M9s os chargeabe with?
rightly; that included tine money in sus-
pended banks.
Q.-I understand. There was about s47,-
An the treasury vaults; either that or
$4,000.
Q.-There was about $24l 200 that was TIED
up in suspended banks, was there not?
A.-Yes sir; | think so.
Q.-That would leave about $4,000 loose
money?
Ain that nelghborhood | was thinking
1t was about $4,000; | may not have the
exact figures.
Q.-l Will ask you again. what it was ht
brought these papers that you call certi
Gates of deposits out in?
A.-Well, as l remember it was little
box.
Q.-Cigar box?
A.-Something of that shape, I could no.
say II was cigar box, but something's
similar in size, the general shape.
Q.-Of the balance of this. outside of tn,
$i7, 900 he produced, none of 1t in cash, or l.
II was $4,000 you may say it may be?
A.-No sir; no different from what | said
Here followed few questions as to wha
Holcomb had testified to on n former oc
Cason, and the examination continued:
Gle opened this box that was like {
cigar box, did he show you these paper!
he had?
Al do not remember that it had an,
cover.
Q,-And then took out papers that h,
called checks and certificates of deposit
did he?
Ale took out mostly certificates of de