The Minneapolis journal., 1906-12-14
LOANS ARE MADE
CONTRARY. TO LAW
PUBLIC EXAMINER CRITICIZES
HANDLING oF STATE CASH.
Annual Report to Governor Calls Atten-
tion to Custom Of Replenishing Rev
i enue Fund from Other Public Moneys,
Particularly from Trust j Funds
County Finances Generally in Good
Shape. o

That the state has no right to bor-
TOW the Large, sums of money it has
been in the habit Of borrowing to meet
demands on the treasury before takes
have been paid in, is the belief ex-
pressed by Peter M. Kerst, public ex-
aminer:, in his biennial report filed to.
day with Governor John A. johnson.
= Mr: Kerst says that Jan. S, 1906,
when the examination Of the treasury
was conducted by his department, the
borrowed from other funds. including;
permanent trust funds. t3Ghapter l93
OF the laws of 1903. authorizes borrow.
ing from other funds to help the reve.
nue. fund, ;. says, the report, = but so
Tar as the borrowing extends to perma-
nent trust funds created by the state
constitution and by acts Of congress
Tor SPECIFIC educational and Institution
al purposes, the act, from the stand.
point OF public policy, should have. and
from legal point Of view apparently
has, no valid application. . From Sept,
10 to. Oct: 27, 1905, inclusive, the reve-
nue overdraft appears to have exceed
ed the statutory limit of 100000.
',Besldes borrowing from other funds
TO help the revenue fund, various sums
aggregating ng, on on Jan; 5, 1906, the total
~H3'ACSoocsoC, AdO U0Cu borrowed ON
outstanding warrants at an interest
charge of AZ to S per cent, making
an interest charge of $24,3l5.l5. LEGAL
authority for these temporary loans
was apparently given, or sought to be
given, in rider attached to the an.
propriat bill of the last session; but
that provision appears to conflict with
article of the state constitution, which
prohibits the contracting Of indebted
ness by the state except by an issue
Of state bonds. - :
s"This department has suggested that
the deficit could be avoided in LARGE
measure by an amendment Of the gross
earnings act 80 as to provide for pay.
menC OF railroad taxes semi-annuaIly.' >
Would Bond Commissioners,
In county offices Mr.. Kerst reports
satisfactory conditions. A shortage of
$l4, ,OOO in the accounts Of Former Treas
urer q. c. Miller Of Itasca county has
not yet been made good, but the
amount is secured by a corporate and
also personal bond. He recommends
That the bonds of county auditors in
some cases be increased, depending or
the the assessed valuation Of the respective
In regard to county commissioners in
counties of over 100000 population
the report says: -.
Some provision should be made tc
pond all the county commissioners and
to base. the amount of the bond on The
assessed valuation. The premium on on
such bond should be paid by the conn.
tty. lnasmuch as it is the duty of The
county board to pass upon the greater
part OF the county's disbursements, it
Is Is; OBVIOUS that the bonding Of these
9iIaat;a, Sfldals should be q step in the Right
The examiner dep1ores the fact that in
a number of counties there are ont. +.
esandns eonnv sndttzs dHbts on ,a9atipg warrants
permit to be taken up in an addition
to the tax levy. >1 wv WI
:. In regard to the examination of the
Of the district court Of Hennepin
county, the examiner reports net
shortage of $577.55 in the attorney i
refund account, and further SHORTAGE
of;d Of $444:56 9 II in fees collected and not
pana canat1 1nto ho.1a the county treasury This
lect this money. wa