Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1899-01-13
GOVERNORS MESSAGE
SYNOPSIS OF THE DOCUMENT
READ AT PIERRE.
Gov. Leo Would Prosecute Treasurer
Phillips for Misrepresentation of
the States Eunds-Asks an Inves.
tieation by the Legislature.
Gov. Lees MESSAGE.

The biennial message OF Gov. Lee read
before the joint session of the senate and
house was n of the longest documents
ever presented to a South Dakota legisla-
lure. A synopsis of the message is given
below:
The finances of the state are in a healthy
condition. During the past four years the
state has been paying its debts ut a crafty
ing rate, and with prudent management Of
state affairs, Mr.. Lee says, there seems to
be hope that within the next two years we
may, if disposed, be practically free from
debt. This change in state affairs has been
due to improved industrial economy of two
legislatures and the addition to our
revenue of more than $4,000 from
liquor licenses. The total revenue collected
lin two years was sS,9O5, OF. 4s, and dis
bursemcnts 81, i05, 5OS.O2. Since January I,
1897, the debt of the state has been reduced
1854 ,5Ol .GS and at this time the net state
criticised for not having sooner paid $5S,-
300 of bonds that were redeemable May 1
last, hut which were not paid off until de-
-cember 1, while there was money in the
treasury to do so all the time. The state
also on December % paid off $4,000 Of state
OO1luS lON NiuV ulllli AUlVs OCIuS HdlC vi Ill
Issue of 500, 900. the legality Of which is in
doubt. The governor says he suggested
this action to the treasurer last August.
The governor at this point speaks of the
receipt of interest ON public funds on de-
post in banks by Kirk G. Phillips, state
the state is quoted which makes it a felony
for any public official to make any profit,
directly or indirectly, out of any public
funds. and gives the correspondence he had
with bank, and with the state treasurer
the past year relating to this. He formally
whether they had paid the state treasurer
interest on the public funds on deposit. and
not one had replied directly to the question.
Some OF them refused point blank to make
any statement. Treasurer Phillips was
also asked for a statement, but did not re-
ply. The report of General Maris Taylor,
public examiner, of an examination of the
books OF the defunct Dakota National Bank
of Sioux Falls. in which Treasurer Phil
lips had state funds up to the time of its
failure. is given in full.
The public examiner. the message says.
was prevented by the receiver from making
the eNamj' alton before election. but since
the eNaw .iation has been made. lie sets
forth IL record of the books of the bank
month y month, showing that the bank
for IVY Gty-one months regularly paid Phil
lips j. terest OH the public funds On deposit
tliCkS IL tIN I VI lSh CSHts pSi album VII
the average monthly balance. The ac-
counts were changed about in a variety of
ways, but in every case the public eNamin-
er was able to trace the connection between
the public funds and the issue and pay
ment OF drafts to Phillips. The bank books
drafts. such as for November Interest,"
The examiner succeeded III finding Ill a va
cant rom in the basement of the home of
the receiver among u mass of papers, two
of the cancelled drafts issued by the bank to
Phillips for interest on the public funds,
bearing his Endorsement.
The most sensational part of the eXam-
lner's report relates to a manifest attempt
on the part of some one to hide the evidence
of a crime by crasures on the books. In a
number of instances the entry opposite the
record of the draft drawn for interest in the
for which the draft was issued, has been
erased recently. These crasures occur ON
the books only in connection with drafts
drawn to Phillips for interest on state
money on deposit. An investigation by the
!leeEEislaat ATTIRE is sys urged u ,, BY y the e. governor e
treasurer in various banks the past two
years is estimated by the governor at $780,
-678.41, and computing the interest at 4 per
cent, which is the rate he received from the
one bank which has been investigated, he
states that the treasurer. is now in default
~ tA1O otuGS III tIlC Ou1ll Va pO6sUOO.OU OQ Lll6
interest deals. NO part of the interest has
been turned over to the state. The law in
the matter is very plain. Other states have
had experiences Of this kind. The money
received as interest on public funds cannot
be separated from the funds themselves.
Of efN' public i funds dsAs in banks jan IN Selon aep0s to
the main fund, and if the books
of the treasurer. do not show that
such money has been regularly covered
into the treasury the treasurer is in default
.ance of this matter 1 submit the facts in de-
tail, and recommend that q committee of
the legislature be appointed to settle with
the outgoing treasurer and to fully investi-
gate the facts which are disclosed. l
further recommend that the legislature i'm
preparation to be used by the attorney gem
'eral in prosecuting the treasurer and his
bOndSMen for the recovery of every dollar
to the state which X. q. Phillips may have
collected as interest or profits on the state
funds and converted to his own use.
teIntion to the initiative and referendum,
which have been engrafted into our con-
:stitutiOn, and now demand detailed pro-
vision at your hands for carrying them
into effect. South Dakota has the enviable
distinction of being the first state in the
0AOp! uitcct leSlSldtlOu.
1.-The amendment to the constitution pro-
'viding for state control of the liquor traffic,
submitted to the voters by the last legisla-
tive assembly, was ratified at the polls at
the recent election, audit therefore becomes
your duty to make provisions necessary for
carrying nut its explicit intent by putting
into operation a dispensary law, devised
upon an economical and just basis. The
people have spoken, and it is your duty to
give effective force to the popular WILL re-
gardless OF the private opinions Of those to
whom is committed Legislative power.
The fellow servant rule, embodied in
section 31a:S', compiled laws, is u radical
injustice 10 railroad employees and serv;uls
OF other Industrial CORPORATIONS whose
business requires more or less hazard to
human life. 1t provides in so many terms
that an employer is not liable to the e,.-
plOye for injuries received in consequence
OF the negligence of cO-empIoyes engaged;
In the same general business unless the en-
ployer has neglected to use ordinary care
IN the selection of the culpable emplOye,
1t is true this statute simply enacis the
common law rule which prevails in states
having no statute upon this subject. But
the common law was exceedingly harsh in
this as i'll some other respects, and states
have found il necessary in the interests of
advancing civilization and enlighten-