Omaha daily bee., 1902-02-08
MR.. MEsERVE,s DEFENSE.


coin Journal former Attorney General
Smyth, who has volunteered to defend
ex-Treasurer ]. B. Meserve, recently in
dicted for embezzling interest collected
on deposits of public school funds, is
quoted as follows:
We will meet them on the issues. We
want an acouittal on the charge and we
shall get It. Mr.. Meserve is not guilty and
we expect to show IL. We shall not move
to quash the indictment, as has been sug-
gested, but will defend on the merits Of
the cause.
Mr.. Meserve stands charged with appro-
prtating to his own use interest on $50. 900
state funds deposited with the Union Stock
Yards National bank Of South Omaha,
amounting TO 5000. This indictment was
returned without Investigating the records
Of the state. 1t was returned on informa-
tion Of ex-Bank Examiner McGrew, now
connected with an Omaha bank. who gave
hearsay evidence, and the testimony OF an
officer of the South Omaha institution.
There was no effort made to secure evil
dence as to whether or not this interest
alleged to have been paid was credited to
the state. That wasn't a part OF the po-
litical plan.
Il Ao u WuelneF OF not MT. MGbeTNe was
technically guilty OF embezslement by plac-
ing Q 1000 Of state funds In a bank that
is said not to be a state depository and
funds that are not authorized to be placed
in banks, is not in issue. Nothing is said
on this subject in the indictment. The
money was all returned. IL 1t was placed
there for safe keeping, and every cent was
turned over to Mr.. stuefer.
The taxpayers of Nebraska who are
deeply concerned In the honest account
ing for all public funds win be pleased
to hear that in the defense Of Mr.. Me
serve 10 attemr' will be made to take
advantage Of tecnnicalities or loopholes
that may have been left open by defects
in the wording Of the Indictment II
Mr.. Meserve can prove that the interest
collected by him on the 100000 of school
funds placed for safe keeping in the
Union Stock Yards National bank was
turned into the state treasury as 1t was
paid to him, the people will be glad to
see him acquitted and indicated. II.
however, it turns out that he collected
the interest in monthly installments, as
charged, and used this money for pri-
vate purposes, the most successful de-
tense will not clear him in the court of
public opinion.
This intimation that the grand jury
voted the indictment without investiga-
ton and without ether proof than hear
say evidence and prompted by political
snimus, has no foundation in fact. The
grand jury had before 1t witnesses with
whom Mr.. Meserve transacted the bust
ness and who testified from personal
knowledge. The grand jury had ample
proof that $3.50 was paid to MI. Meserve
at the end OF each month for the use of
the 100000 he had turned over to the
bank. This interest was earned on state
money and belonged to the school fund.
Why was this interest collected
monthly when the interest on state de-
posits in the regular depository banks is
credited quarterly and added to the
principal of the deposit? II the $3.50 a
month was intended TO be credited to the
state, why should it have been taken
out Of the bank before the whole de
posit was taken out? Why should II
not also have been added to the $60,OOO
in the bank and allowed to draw inter
est for the state the same as the SEQ.
OOO2 If the $3.50 was not taken out by
Mr.. Meserve for private use why do not
the records of the treasury show an en-
try for $3.50 each month"; To brush
away the indictment the attorneys OF
Mr.. Meserye will have to explain away
this divergence from common Usage
which points to a deliberate intent e
misappropriate the money.
Under the circumstances It is hardly
fair to charge that the grand jury wal
/, actuated by political motives rather
than tangible proofs to justify its &C
ton in voting a bill against Mr.. Me
serve. The only point on which tn,
, grand jury hesitated was the question
OF jurisdiction raised In Mr.. Meserve't
; behalf by the county attorney, n tina
doubt was set at rest by a ruling Of thu
: court based on the decision OF the su
preme cour in the BARLEY case. whicl
Mr.. Smyth himself, as one OF the prose
cutOrs OF BARLEY. ~sunDOrted