The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-02-26
HERE'S LOVELY GRAFT
ON THE PUBLIC PURSE
County Treasurer Loans Banks
Peoples Money and POck-
cts the Interest.

CINCINNATI, Feb 25.-The sensations
OF the day in the Investigations by the
Senate committee of Hamilton county af-
fairs were the positive refusal OF County
Treasurer Hynicka to produce his private
account and bank books, and the state
mont Of Banker Hinsch that local bus-
ness would have been blocked had the
county funds been retained In tho treas
urer vaults.
The committee Will report to tho State
Senate the refusal OF Mr., Hynicka to pro-
duce his books. and 1t was suggested to-
day that he would probably be cited be-
fore the Senate on charge OF contempt
Charles A. Hinsch. president Of the
statement just before he left the witness
stand this afternoon Senator Schmidt OF
the committee brought out the matter by
asking Mr.. Hinsch II he considered 1t
funds.
Banks Use Public Coin.
President Hinsch thereupon asked per-
mission to make a statement, which he
did In effect as follows:
IF the banks had not been thus fo-
vored tho ensuing financial condition
would have been disastrous for the COM
munity You know % per cent OF the bus
mess of n community is transacted oD
paper. or is represented by paper. This
leaves per cent OF tho business done In
actual cash. Lock up $4,000 at a time
In the County Treasurer's office and the
result would be that every element of
business Of the city would be paralyzed,
1T would stop the loans of every bank
In the city. So the bankers feel that In
being permitted to use the public funds
they were doing good thing for the
public as well Such deposits in the banks
are not profitable TO the bankers We are
compelled TO reserve - per cent of 1t un-
der the National banking law. This raised
the cost OF the entire deposit to as high
a figure as we were able TO secure for II.
Those loans were subject TO Instant call
for the use OF municipalities which were
liable 10 call any time"
officials Get the Interest.
You knew where the interest was GO
ng?' asked Senator Schmidt.
II did not. / gave that no attention.
Would you have sent the interest had
you known IT went TO the Treasurer
asked Senator Schmidt
1T Is an open secret Of years duration
that the banks paid interest on county
funds and this interest, as the rumor had
it. went to campaign funds and what not
Poor Old Cincinnati.
And. gentlemen. let me say II you tic
up the tax collections In the Treasurer
Office and shut of that much circulating
medium. the wheels Of every Industry In
Cincinnati Will stop. / feel the banks
were doing public good In accepting tho
deposits.
IL ,eopold- -4Slerbofte. .for-ruany' -yeors pres
| Ideut OF the Western German bank testi
| fed that about sixteen years ago IN,
Western German officials were Informed
| iv director OF the bank. himself Dem,
| OCvat, that If the bank desired II could
get some Of the county treasury deposits
from she Treasurer. who was Democrat
The offer was accepted, Mr. hlcybolte
said and the Western German began pay
ing "com.ensa ton" for the favor, pl5c
tIce which had been continued since dur
| Ing all tho administrations of the County
| TreasurcT's Office.