The Red Cloud chief., 1899-10-20
A NEGLECT OF DUTY.
How Governor IIolcomb Settled
, With State Treasurer BARLEY.

.I% g
!.
The failure of Governor Holcomb TO
make a proper settlement with State
Treasurer BARLEY in 1895, and the &C.
ceptance Of a worthless bond, whereby
the state lost half a million dollars. is n
matter of record that will not soon be
forgotten by the people of Nebraska.
That Holcomb was to blame for this
loss the record clearly shows, his own
hating and confused evidence given in
the bond trial being the best proof.
The public mind needs only to be 70.
freshed. Holcomb was elected gov.
ernor in the fall Of 1894. BARLEY had
served two years as treasurer and there
was a suspicion that his account were
in bad shape. The governor.el elect was
warned by Rosewater and others that
the treasurer was a defaulter and that a
very careful accounting should be had,
to protect the state.
In spite of this warning, and in spite
of the law, the new governor plainly
entered into II deal with BARLEY. After
u long private consultation he accented
a new bond upon which most of the
old and already accountable bondsmen
qualified for fabulous sums. No mt.
tempt was ma dc to examine into the
real worth of the bond.
One of the bondsmen was the presi.
dent of a bank that held over 5000. 900
OF state money. The bank was not a
depository and the deposit was unlaw.
full. Governor Holcomb knew this and
yet he accepted this bank president as
q bondsman, qualifying in tie sum of
5000 900 lover and above all debts and
liabilities" The public knew then and
knows now that the deposit was unlaw-
full, and that the bondsman was not
worth anything like the sum mentioned.
The acceptance Of the straw bond was
bad enough, but the worst part of the
deal WAS in the pretended settlement
with the treasurer. The transcript Of
Holcomb's evidence in the Omaha trial
Is the best proof, and 1t is accessible to
all.
According to this testimony, Holcomb
first held n private consultation with
BARLEY, and then they entered the
tfeasurer's office, where they remained
about two hours. The governor SAYS he
looked over a ledger or some such book In
which there were some accounts. He is
not sure what book or what accounts.
Then BARLEY produced q cigar box
containing some slips of paper, repre-
senting what should have been about
$46O,OOO in cash. He also produced
some $780, 900 in cash. The law required
1t all to be in cash, but, according to
Holcomb's testimony, 1.-The law was a
farce and "a sham This testimony is
u matter of record.
The governor did not examine the
slips OF paper closely. He admitted
that he did not know sure whether
they were genuine. He knew that the
one bank which was not a legal deposi.
tory was represented in the cigar box by
a slip calling for over $500, 900.
The story of the settlement" is best
told n the exact words of the record.
The case was heard mt Omaha in Feb
ruary, 1898. Governor Holcomb was
Oh the stand, and the following extract
is from pages 6l7 to 62S of the record,
bill of exceptions:
Question. ask what he was charge-
able with
Answer. $e58,OOO or $685., 900, If / re.
member rightly; hat included the money
In suspended banks.
y. l understand. There was about
81 900 only in CASH.
A. In the treasury vaults; either that
or So 900.
q, There was about zeal, 900 that was
tied up In suspended banks, was there
notg
A. Yes sir; / think 80.
q. That would leave about $7l3.OoO In
loose money!
A. In that neighborhood; l was think
ing II was o fifteen thousand; | NAV
NOT have the exact figures.
q. will ask you again what it was he
brought these papers that you call certih-
Gates of deposit out IMP
A. Well, US l remember, it Was a little
box.
q Cigar boxp
A. Something of that shape.
u, the balance OF this, outside of
the 4!,OOOh c produced none of IL i'm cash
bey
a, No, sir; no different from what l
Here followed u few questions as to
what Holcomb had testified to ON a former
occasion, and the examination continual.
u, He opened this box that was like "A
cigar box; did he show you these papers
he mad ~
A, do not remember that it had any
cover.
q. And then took out papers that he
called checks and certificates of deposit,
did her f''''
\ He took out mostly certificates of
deposit There may have been u few
.. Have you u list of these9
A. No sir.
Here foilowod some questions covering
tine same ground, and the examinatio6
concluded as follows:
Q. And then he brought out a box that
looked like u cigar box, from which he
took a lot of papers that he called certif-
to $i49, 000Y
A. l do not know whether he called
them certificates OF deposit or not; they