Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-03-11
HOLDS MESERVE AS TRUSTEE
Attorney General Argues that Treasurer
Must Account for Interest.
AccRETloNs TO FUND BELONG TO STATE
Argument on Defendants Motion 10
Quash Indictment Drawing to
Close and Ruling IL Exc
pected Today.

F. N. Prout was physically able to make
to Judge Baxter yesterday afternoon in the
| course of the arguments on the questions Of
law raised by the attorneys for the de-
fendant in the trial of John b. Meserve.
| former state treasurer and an alleged en-
bezzler, were matter Of fact and pointed.
The county attorney and his deputy had,
| in their seven hours of argument threshed
out the chaff in the numerous cases cited
by Meserve's attorneys and the state pros
| ecutor contented himself with reducing to
a simple business proposition the contention
of the other side that the state had no
proprietary right to interest which Meserve
received on permanent school funds placed
where he had no authority to place them.
Interpreting from the constitution, the
attorney general said that the very pur-
pose of the permanent school fund is in
vestment for the benefit Of the schools and
that its proportions are never to be dimin-
ished, but that the loan or investment is
not to be in the way of bank deposit.
The purpose intended Is that the fund
should be kept continually invested In GER
tain securities, the accretions to apply to
paying current school expenses and when
Meserve loaned the money elsewhere, even
II he had no authority to SO place 1t, every
dollar Of the interest belonging to the state.
Faithful Stewards Duty.
"I care not" he said, whether Meserve
had the right TO loan the money-having
loaned 1t and having received money for
II, It was his duty as a faithful steward
| of the state to account for every dollar of
accretion. When Meserve took office he be-
came the trustee of the school fund-as
much trustee as any trustee ever reg
ularly appointed for any estate or interest.
And being the trustee of this special trust,
he is obliged to account for every dollar of
| accretion, whether it come as interest paid
by bank for use Of 1t or in some other
way. The state impressed a trust and
having done so, 1t had a perfect right to
follow that trust, no matter how invested.
And II the treasurer converts to his own use
so much as one dollar, that moment he
commits crime and should answer at the
barn
The attorney general spoke only few
minutes, but was forced to excuse himself
to the court Immediately afterward and re-
tire to the judges private office. In addi-
tion to a general debility which has an
noyed him for flve weeks, his throat IL
troubling him and he coughed violently for
several minutes. He told friends yester-
day that 1t is his Intention to go to either
Hot Springs or Excelsior Springs as soon a
supreme court adiourns.
Defense Takes Another Turn.
For the defense Attorney Ed P. Smith
commenced to answer as soon as the at
torney general finished. He occupied the
last hour OF the afternoon and Will finish
In short time this morning, when an
immediate ruling from the Judge is ex-
| pected. The jury and the witnesses are tc
return at $3.50 and some may be called by
1880 or IL O'Clock. Even should the de-
fendant's motion to quash the Indictment
be sustained, the first witness, John c.
French, will have to be recalled to COM
plete the record.
When G. ]. Smyth first raised his Law
point for the defendant, after having re.
peatedly implied that the trial would not
be hindered In any way, as his client was
burning for "vindication," he asked that II
be taken up, argued and disposed of at once
to save the county much time and expense
But this feature OF chronological economy
is not fully apparent to those who have
watched the proceedings for Smyth himself
, talked from o'clock Thursday Afternoon
until noon Of the next day, with the GUS
tomary recess for sleep and breakfast, and
those who answered him in order to dis
, pose Of all his citations have felt called
upon to talk through the rest Of Friday and
all of Monday-and the end is not yet
: Meanwhile the court costs and the jurors
fees go on Just the same.
, The attorneys for the state are said Il
, anticipate that the end Of their trouble IL
this trial will not come with the settIinJ
} Of this present contention. They have In
J timation that some of the witnesses ar,
being advised as to the successful way O.
) evading giving testimony by taking refug,
in the statute OF elimination.