Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-25
GRAFT AN OPEN SECRET
State Probe of Hamilton County
Affairs.
A CINCINNATI SENSATION
Banks Had Paid Interest on County
Funds
FOR MANY YEARS DURATION
But Aforesaid Revenue is Alleged to
Have Gone Into Campaign Funds
and Private Purses.
! CINCINNATI SENSATION
'R MANY YEARS DURATION

CINCINNATI. Ohio. February 24.-The
sensations of the day in the Investigations
by the senate committee of Hamilton coun-
ty affairs were the positive refusal of
County Treasurer Hynicka to produce his
private account and bank books and the
statement of Banker Hinsch that local busi-
ness would have been blocked had the
county funds been retained IN the treas
urer's vaults
The committee viii report to the state
senate the refusal Of Mr. Hynicka to pro-
duce his books and 1T was suggested today
that he would probably be cited before the
senate on charge OF contempt.
After two bankers had testified along sim
iIar lines to the testimony given yesterday
regarding gratituties. County Treasurer
Hynicka was again called to the stand and
asked for his private bank books showing
the amounts received as gratuties. He re-
fused to produce the books saving NV
attorneys have advised me not 10 They
ADVISE me not to on the ground that you
nave no right TO any of my private affairs
or accounts"
He persisted in his refusel and was tenn
nofarliy excused. Attorney Roettinger said
he would. at the proper time. ask for an
order regarding the refusal of Hynicka TO
torney Coppock said later that an order for
contempt would be asked against Hynicba
Charies Hinsch president OF the First
national Bank, made a sensa tionaI state
ment just before he left the witness stand
IN the senate committee investigation thts
afternoon. Senator Schmidt of the commit
tee brought out the matter by asking Mr.
Hinsch if he considered II proper for the
pank to use county funds. President Hinsch
thereupon asked permission TO make a
statement, which he did, in effect as fol-
lows:
Would Have Hurt Business
II the Banks had not been thus favored
the ensuing financial condition would have
been disastrous for the community You
know. % per cent of the business OF a com
munity is transacted on paper or is repre-
sented by paper. This leaves ; per cent Of
the business done in actual cash Lock up
S,5oo,0o at time in the county treasur-
er'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 p per cent of IT, under
the national banking law. This raised the
cost of the entire deposit TO as high a fig
ure as we were able to secure for il These
loans were subject to instant call for the
use of municipalities, which were likely 10
call any time
You knew where the interest was go
ing?' asked Senator Schmidt
Il did not gave that no attention"
would you have sent the interest had
you known 1t went TO the treasurer" ask
ed Senator Schmidt.
Il supposed he was entitled 10 II - said
President Hinsch, who supplemented his
remarks as follows:
Banks Paid Interest.
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
And, gentlemen, let me say If you tie up
the tax collections in the treasurer's office
and shut off that much circulating medium
the wheels of every industry in Cincinnati
Will stop. | feel the banks were doing a
public good In accepting the deposits"
Leopold kleybolte, for many years presi-
dent OF the Western German Bank testi-
fed that about sixteen vars ago the West
ern German officials were informed bv a
director of the bank. himself a democrat
that If the bank so desired il could get
some OF the county treasury deposits from
the treasurer, who was a democrat The
offer was accepted Mr.. Kleybolte said and
the Western German began paying com
pensation' for the favor, a practice whicE
has been continued since during al the adj
mlnistrations of the county treasurers
office.
Several other witnesses were heard but
little additional Information was brought
out.
The committee then adjourned until next
Friday.