The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1907-01-17

For the fiscal year ending October 81,
I90a. h sum of $40, 900 was appropriate
for the Governors Civil and Military
was Expended. Of which sisS.75 were
expended by my predecessor in the in
Vestigation of the Southern Indiana
for the Insane and in the mat
of the claim of Vincennes Univer-
sity. The remainder, or $479.5 so. was eX-
pended by the present executive. The
ln~eXpended balance of the appropria-
ton, amounting to $3.50. IS. was Gov
cred back into the general fund.
For the fiscal year ending October 81.
go. $4,000 were appropriated for this
Ind, $5453.o0 Of which were expended
AID $4,54100 covered back into the
treasury The expenditures were all on
account of expense incurred in the in
vestigation of the office OF the Auditor
Of State.
EmergePeny contingent Fund for the
fiscal year ending October 81, 1905, was
$780, 00. 90, of which s2.206.05 were ex-
Dfn sffs. ey by t nred erese1f -e and the sum on
account OF the expenses or the tuDer-
culosis commission. authorized by the
SiXty-fourth General Assembly The to
ln%expended balance, amounting to s27.-
was covered back into the gem
era1 fund.
The appropriation for his fund for
he fiscal ear ending October 81, 1906,
was $40. 100000. all of which was ex-
pended except the sum of s1,123.26.
which balance was covered back into
treasury. The total expenditures
mount s52s'aa We're Expended to defray
expenses of the tuberculosis COM
mission; s2,3S5.05 were expended in be-
half of the maintenance account of the
state Prison, a of the failure of
the Sixty-fourth General Assembly to
make a per capita appropriation for
institutions: 100000 were also ex-
room for the State Prison, occasioned
by a clerical error in the appropriation
act of the Sixty-fourth General AS
sembly. appropriating $19,50O.00 for a
which cost but $4,000: 90
ing room which cost $19,500.00; (The
transposition of the u was not
discovered until after the buildings
Of m specific appropriation could not
be used TO make up the deficiency of
he other.) s2,s92.01 on of the
of a boiler at the School for
count of expenses incurred in the case
Of the State of Indiana VS.. David +.
Sherrick; $4,000 on account of fees Of
%counsel in the case of h State
Of Indiana VS.. Daniel f. Storms:
"a. S05.29 on account of expense incurred
the inv estigation of the office of the
auditor of State: $4,000 in connection
with the stopping OF pool,selling at
Al1 1Lal al tAlC
Of 1905. and s1.175.sa on account of ex-
penses incurred in connection with the
of the gambling resorts at
ss1rfesnssRn has hask ~sa aba MeSt Sa been pf wn,ed
TO the treasury of the State; $7,o25.39
for maintenance at the Girls Industrial
school, because of the failure of the
General Assembly to make
and the great increase in the
of inmates during the past
year; $230.55 on account of expense in
diana VS.. McCaslin, for the recovery of
eighty acres of land belonging to the
$229.S0 on account of expense in
cured in the investigation of the State
Agency Company. and $1.076-o4 on ac-
of expense Incurred in h inves-
of the State Life Insurance
the closing of the gambling resorts at
Lick n West Baden was
sf.s7472; the aggregate cost of the tu-
commission up to the close of
he last fiscal year was ss4css; h in
and So cretary of State cost, in the ag-
gregate. $13,25S.29.
Defalcation in State Onices.
In the latter part of August. 1905. the
executive was advised that the Auditor
Of State a failed TO make the semi
annual settlement with the Treasurer
of State due July 1. 1905 Upon inves-
ii was learned, through the
admission of the auditor himself. tina
ne was short in his accounts to the ex-
-ent of $145, 100000 Settlement was de-
ion. September IA. 1905. he resigned.
Hon. Warren Bigler was Immediately
appointed to fill the and suit
was promptly begun pom the official
DOT OF the ex-auditor.
The amount Of h admitted defalca-
the magnitude of the public bust
passing through the of,ce and the
ack OF necessity of informa-
the executive to appoint a
commission to examine and investigate
is affairs. Accordingly, Hon. w. B.
Dur borrow and Hon. James w. Noel. rep
State, We're appointed, together
with Hon. Warren Bigler, Auditor of
state, by executive order, and instruct
examination OF said once and its
departments uninfiuenced by
ear, favor or affection, and without any
purpose to shield any person or party
son or Iarty. to the end that the whole
truth touching the affairs of the Office
SAID term may appear In your re-
port, and that h guilty may be ex-
posed M the innocent indicated"
The facts touching the financial in
-erests of the state, as disclosed by the
of the committee, were
aid from time to time before the Gov
for executive consideration and
From this report IL appears that
Mr.. Sherriek's defalcation, principal and
aggregated. or the 18th day Of
ieptemesr; o 1922 the he day Of his ressignsi
payment was received, with interest to
hat date, the total amo unit returned to
state treasury, principal and inter-
being $156,637.31.
Subsequent to his resignation Mr..
was indicted, tried and found
guilty OF embezzlefSent and sentenced
and ecmmitted to the State Prison. On
Court of the State reversed the
Judgment of the Marion Criminal Court.
n which the case was tried, for error OF
law occurring at the trial. Mr.. Sherrick
g now at liberty on bond pending a re-
of the charge against him. During
Ills term as auditor Mr.. Sherrick COL
lected 1854, 1889 of insurance taxes,
to collect under the law. He mis-
appropriated and embeZZled a large pOr-
ion of these funds.
In its decision the supreme Court
aeld that these taxes were not the prop
srty of the State: that they were col
Iected without warrant of law: that in
receiving them Mr.. Sherrick acted as
he agent OF the insurance companies
md not as the representative of the
State. and that as to these funds he was
not guilty of embezzlinis pub
lie funds.
The fact that he embezzled the funds
s without dispute. The moral turpitude
the ofense is not 1essened by the
act that the our has held that the
title TO them was in the in
surance companies and not in the State.
1t is an unconscionable miscarriage of
that a public officer charged by
he law with the duty of receiving re-
Dorts showing o of taxes due
rom the insurance companies to the
state and of auditing them, and with
he further duty of bringing suit to re-
from h companies the taxes so
where they fail to pay them
INTO the treasury. and who issues writ
notices 10 the representatives of
statement of the law made to read so
rs to require the payment of the taxes
% him. and who. pursuant. to such no.
Ice, receives such taxes from the com
over the counter of his office. re-
for them as Auditor of State,
go acquit on account of a tech
meal If not fictitious ownership. And
IT may never occur again in the
State of Indiana, i recommend that you
enact a statute, the terms Of which
clearly make it embezzlement for
Use money received under color of his
office, while acting under claim of Off
;ial authority, ne matter in whom the
.echnical legal title thereto may be held
% vest.
A portion of the funds embezzled by
Mr. Sherrick consisted of fees which he
had a legal right to collect. 1t is up
IN this charge that he is now await
ng re-tria1.
In its investigation the committee
,ound Inaccuracies, in the way of over