The leader. [volume] (Brookhaven, Miss.) 1895-1905, 1902-03-05
THE TREASURY SHORTAGE.
The Investigating Committee
Makes Its Report to
the Legislature.
Says the Missing Money was
Loaned i'm Memphis ana
Brought Back on two
Occasions.

The joint legislative committee ap-
pointed to investigate the shortage III
the State treasury discovered by Gov.
Longino last summer made the follow
ing interesting report to the legislature
last Friday:
Mr.. President The joint COM
mittee to whom was referred the ln-
vestigation attending the causes OF the
resignation of j. r. Showers, State
treasurer, and to ascertain the names
of all persons who were connected
with obtaining money from the State
treasurer. or out of the State treasury
otherwise than directed by law, re-
spectfully beg to report as follows:
We have subpgnaed and examined
the following witnesses, to-wit: W. =.
Ccle, F. B. Neal, o. j. Waite, VIM.
Anderson, c. E. Lowe, E. j. Smith, and
Governor A. Ii. Longino.
Messrs. J. r. Showers and F. I. Raj
ford, being subpGnaed, appeared be-
fore the committee but declined to
testify for the reason that there we're
indictments pending against them.
Mr.. Phil. A. Rush, being subppnaed,
did not appear, but wrote letter to the
chairman of the committee, declining
to testify for the reason that there was
an indictment pending against him.
Mr.. L. F. Montgomery was subpG-
naed and appeared before the com
mittee, but declined to testify on the
ground of having been foreman of the
grand jury at the recent term of Kinds
county circuit court. W. A. Mont
gomery, being subpPnaed, failed to
appear before the committee.
The facts and circumstances detailed
in the evidence are as follows:
The First National Bank, of Jack
son, Miss, had $4,000 in silver on de-
post with it placed there by the State
treasurer to be exchanged for cur
rency. This money was placed in the
bank on the It'll day of August, 1901,
and returned to the State treasury on
the 10Th of August following; that in
the fall of 1900 the State treasurer
placed $4,000 in currency of the
States money in the Capital State
Bank of Jackson, Miss. This money
was returned to the State treasury in
about ten days after it had been placed
in said bank. That in the spring OF
1901, the State treasurer placed $4,000
in silver with the Merchants Bank in
Jackson, Miss, to be exchanged for
currency This $4,000 remained in said
bank some two or three months before
the amount of the same was returned
to the State treasury, and, judging
from the testimony, perhaps $4,000 of
the $4,000 so deposited was held by
said bank some six or eight months be-
fore being returned to the State treas
ury in currency. We find it has been
the custom of the First National Bank,
the Capital State Bank and the Mer-
chants Bank of jackson to collect
checks and drafts for the State treas
urer without cost to the State, and
return the amounts of same to the
State treasury.
We find the different amounts col
lected on checks and drafts usually
returned by the banks to the State
treasurer within ten, fifteen, twenty
and thirty days from the time said
checks and drafts were placed with
said banks for collection. The testi
mony shows that no interest or other
compensation was paid by any of these
banks to any person for the use of the
money placed with them to be ex
changed, or currency placed with then
or drafts and checks placed with then
for collection.
We find that s1OO,OOO00 of the $107,
62l A that was missing at the time thu
governor made his count in August
| 1901, of the money in the State treas
ury had been loaned in Memphis, be
ing loaned through Messrs. F. 7. Raj
ford, Phil. A. Rush and John Armis
tead This money was loaned at tn
rate of 3 per cent per annum; said in
terest, when collected, was to be divid
ed equally among Messrs. f. T. Raiford
Phil. A. Rush and John Armistead
This 100000 so loaned had beef
brought from Memphis before th
counting of the money in the Stat
treasury by the governor on two occa
sions, one time by John Armistea'
and the last by F. T. Raiford.
We failed to find any trace as to tn
whereabouts of the s7,62144 at tn
time the Governor and Auditor Col
counted the money in the treasury il
August, 1901.
We find from the evidence that Their
were no bonds or security in the Stat
treasury to cover the missing Sl07
621.44 at the time of the count made b.
4 Uuo HOi was thCiO any c'i
dence as to the whereabouts of sal,
money at that time. We find that tn
banks of Jackson collecting check
aud drafts and handling money TO
the State treasury, placed bonds, col
laterals or securities with said treas
urer covering all amounts so obtaine
4 from him.
1t is the opinion of the committe
4 that section l37 of the State consti
tuition intends and requires that tn
States money shall be actually KEEP
in the treasury.
/ The committee herewith files tn,
evidence taken regarding the resolu
ton passed by the legislature re
quiring said investigation.
Il In