The Lake County times., 1907-01-10

Dy the court. Having tailed IN the
courts to secure the removal of the
secretary, the executive was about TO
convene the Sixty-fourth general as
sembly in special session, for the pur-
pose Of asking his impeachment, when
he resigned The committee immedi-
ately took possession of the books and
accounts in the Office and made a
careful examination of the same for
the period of Mr.. Storms incumbency.
The misappropriation of funds, con-
version of fees and appropriations
made by the general assembly,
amounted to s4,583.50, interest upon
which at the time of the retirement
of Mr.. Storms amounted to $3,556.35,
a total, principal and interest, of S.
1895. The sum was paid in full to
the treasurer of state April 1, 1906,
the date of the secretary's retirement.
Conditions discovered in the audi
tors office led the executive to in
struct the committee to examine the
accounts and books of the Office back
to 1872. A discrepancy in the ac-
counts Of General M. D. Manson as
auditor of state was discovered,
amounting to $347.50, which was evi-
IDENTIFY due to errors inadvertently
Taade. James H. Rice, while auditor
Of state, collected and retained In
surance taxes in the sum of S11 1850
and reciprocal fees due the state in
the sum of $36,650.24 These sums,
together with interest thereon to
April 1, 1906, amount to S1OS, ,877.74.
The ex-auditor is dead. / am advised
that his estate is insolvent The
statute of limitations bars a suit upon
his bond. So far as he, his estate
or his bondsmen are concerned, this
entire sum is lost to the state.
The law, however, required foreign
insurance companies doing business
in the state of Indiana to pay into
the treasury of the state the taxes
enormously paid Mr.. Rice, amounting,
principal and interest, to SIG, ,091 27
Payment to him in defiance of the
provisions of the law was not pay
ment to the state. Proceeding upon
this theory investigation was made
and the names of the companies r'ak-
ing the erroneous payments and he
amount due from each were ascer-
tanned and notice served upon them
that payment must be made by Nov
ember 10, 1906, together with six per
cent interest thereon, or their license
to do business in the state would be
revoked and suit instituted to collect
the amounts due. On Nov H. 1906,
settlement was made by all but two or
three of the companies. The amount
paid into the state treasury was, prin-
cipal, $9,755.78; interest, $12,997.24;
total, $22,753.02. This leaves a bal
ance of $3,338.25 Some of the COM
panies owing this balance ceased
years ago to do business in the state,
and others are insolvent.
It appears from the report of the
committee that Bruce Carr, while au-
ditor of the state of Indiana, unlaw-
fully retained $34,259 of regular fees
and $4,000 of reciprocal fees which
lawfully belonged TO the state, a total
of $74.5 Interest thereon to April
/, 1906, at per cent, aggregates $75,-
99S24, making the total claim of the
state $151, ,470.92. None of the funds
misappropriated by Mr. Carr were in
surance taxes. Mr.. Carr is dead. His
estate, as l am advised, is insolvent.
and the statute of limitations bars suit
upon his bond. This sum is, therefore,
lost to the state.
J. o. Henderson, as auditor of the
state of Indiana, collected and retain
ed insurance taxes, regular fees and
reciprocal insurance fees aggregating
$49,616.45. Interest thereon to March
1, 1906, aggregates $42,34596, which,
with the penalty of 10 per cent i'm
posed by the statute, equals $101,-
1855. This, in the judgment of the
executive, constitutes a valid claim
against Mr.. Henderson. Acting upon
that assumption, the attorney general
has brought suit in the superior court
of Marion county to recover the same
The report also shows that A. c.
Daily, as auditor of the state of Indi
ana, collected and retained insurance
taxes amounting to $13.511.57. Inter
gates $8,054. .33. Mr.. Daily also failed
to pay into the treasury Of the state
other moneys due the state at the
time specified by the law. Interest
upon such deferred payments to Mar
6, 1906, aggregates $2,101S4 These
sums, together with the penalty of 1C
per cent imposed by law, amount tc
$26,03451 Believing this sum claim
ed against Mr.. Daily to be valid
claim in favor Of the state, the execn
tive instructed the attorney genera
to proceed to collect it. He according
| ly brought suit in the Boone circuit
court and recovered therein judg
ment in the sum of $25.435.50. Mr.
Daily appealed from this judgment
and the case is now pending in the
appellate court.
/ The aggregate collections already
made from delinquent officers and in
Suranca comDanies is shown in the