River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1905-09-21
FORCED TO GUST SHERRICK
BANKERS CAUSED GOV. HANLY
TO ACT.
Effort to Stop Long Continued Prac-
tice of Specializing with
Public Funds.

Indianapolis, Ind, Sept. 1S,-There
Is said to be secret history connected
with the late ousting of Auditor Sher-
rick by the governor for loaning pub
lie money. Money has been loaned by
state and county officers in Indiana for
generations, because of the interest
that accrued. Certain bankers and
others, it is declared, resolved upon a
scheme to stop it, or get more of it for
themselves. According to this report
a prominent banker was sent to the
governor to ascertain what could be
done to end it. He explained the situa-
ton to the governor and the latter
agreed to make county treasurers set
tie everJ three months, instead of
every six months, as was the custom.
This was good enough SO far as it
went, but it did not reach state officials
who were loaning funds to certain ia
vored banks, private parties and per-
sonal friends.
After the interview with the COVER
nor it was ascertained that large
amounts had been loaned one particu-
lar firm and in getting the information
it leaked out that Auditor Sherrick was
hard pressed and was calling in his
loans as rapidly as possible. The bank
er went again to the governor and
said to him: do you know that Sher-
rick has been loaning public funds and
had been doing SO for a long time 20
The governor said he knew it. The
banker then told him plainly that
knowing it and allowing it to go on
would make him particeps criminis be-
fore the world and that the practice
must be stopped Immediately or the
facts would be published. This threat
forced the governor to make peremp-
tory demands upon the auditor for a
settlement or his resignation The
practice of loaning public money was
growing into gigantic evil and it is
said that this scheme was adopted to
enc it.
Gov. Hanly, speaking of the report
that he had borrowed $3.50 from Sher-
rick during the last campaign. said:
''It is not true that Mr. Sherrick ever
loaned me dollar in his lie for any
purpose. The week prior to the state
convention in April, 1904, Mr.. Sherriclx
came into my rooms at the English ho-
tel and said that number of candi-
dates we're making arrangements to
use money to secure a favorable dele
CATION for them in Marion county and
said that I ought to contribute. / said
to him that | had no money for such
purposes, that / was not trying to Sc
cure a delegation in Marion county as
against Mr.. Taylor. He said in answer
that he thought l ought to do so and
that if did not have the funds he did.
/ said in reply: If you have / will not
ask you to use it, nor will permit you
to do So From that hour to this Mr..
Sherrick never mentioned that subject
tc me.
"After receiving my letter demand
ing written statement of the conii-
ton of affairs in his Office dated Au-
gust "a John E. Reed came into the ex-
ecutive Office and said to me Mr.. Sher-
rick claimed to have expended $3.50 for
my benefit prior to the state conven-
ton. I answered him that I was sur
prised to hear of such thing, that it
was strange that Mr.. Sherrick never
should have mentioned it to me in the
IS months that interviewed. I wrote a
check payable to John Reed in the
sum of 1910 on the Farmers and Trad
ers' bank of Lafayette. Ind. the sum
being, as Mr.. Reed said, principal and
interest from the day Mr.. Sherricll
claimed to have expended this money.
and handed it to Mr.. Reed.
eff Mr.. Sherrick used this money or
any part of it he used it without au-
thority from me and without my know
ledge and without ever mentioning it
to me after its use. 1t is not true that
l have sought to conceal this fact"
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