The Lake County times., 1907-01-10

I OF the DEBT, as Sucn levy would
by that time produce an annual rev.
enue of something more than $500, 600.
| have been anxious that the debt
should be paid at the earliest possible
date and have hoped that it could be
done in January, 1910, but necessity
compels the completion of the institu-
tions nov under contract. The de-
mand that they be completed is so
imperative that have been compelled
to yield thereto, and l therefore rec
ommend that the sinking fund levy
of three cents be retained for the
benefit of the general fund for the
year 1908, and that it be restored to
the sinking fund for 1909 and 1910.
This will enable the state to retire
s500000 of the debt within a year
after its option to pay natures, and
the remaining 100000 within six
! months thereafter. The necessities of
the state absolutely require the com
pletion Of the institutions now under
construction within the coming bien-
nial period. The emergency is so
great that | cannot urge upon you too
strongly the Importance of making
adequate provision therefor.
Defalcation in State Offices.-In the
latter part of August, 1905, the exec
utive was advised that the auditor
of state had failed to make the semi
annual settlement with the treasurer
of state due July 1, 1905. Upon inves-
tigation it was learned, through the
admissions of the auditor himself,
that he was short in his accounts to
the extent of $145,000 Settlement
was demanded, and later the auditors
resignation. September, IA, 1905, he
resigned. Warren Bigler was immedi-
ately appointed to fill the vacancy,
and suit was promtly begun upon the
official bond of the ex-auditor. The
amount of the admitted defalcation,
the magnitude of the public business
passing through the Office and the
lack and necessity of accurate infor-
nation touching the condition of the
office impelled the executive to ap-
point a commission to examine and
investigate its affairs.
From the report of this committee
1t appears that Mr. Sherrick's defal-
1
gated on the day of his resignation,
$154,S96.78. On March /, 1906, final
payment was received, with interest
to that date, the total amount re-
turned to the state treasury, principal
and interest, being $156,367.31.
Subsequent to his resignation Mr.
Sherrick was indicted, tried and found
guilty of embezzlement and sentenced
and committed to the state prison.
On November 16, 1906, the supreme
court of the state reversed the judg-
ment of the Marion criminal court,
in which the case was tried, for error
of law occurring at the trial. Mr.
Sherrick is now at liberty on bond
pending a re-trial of the charge
against him. 1t is an unconscionable
miscarriage of justice that a public
officer charged by the law with the
duty of receiving reports showing the
amount of taxes due from the insur-
ance companies to the state and of
auditing them, and with the further
duty of bringing suit to recover from
the companies the taxes so reported
where they fail to pay them into the
treasury, and who issues written
notices, to the representatives of such
companies containing a garbled state
ment of the law made to read so as
to require the payment of the taxes
to him, and who, pursuant, to such
notice, receives such taxes from the
companies over the counter of his
office, receipting for them as auditor
of state, should go acquit on account
of technical If not fictitious owner
ship. And that it may never occur
again in the state of Indiana, l rec
ommend that you enact a statute, the
terms Of wnich shall clearly make IL
embezzlement for any public officer
to convert to his own use money re-
ceived under color of his Office, while
acting under claim of official authori-
ty, no matter in whom the technical
legal title thereto may be held to
vest
In its investigation the committee
found inaccuracies, in the way of
overdrafts, in the accounts of the ad-
jutant general, John r. Ward, running
from May 10, 1903, to Jan. 6, 1905,
and aggregating $976.75. Upon re.
ceipt of the evidence in the case
demanded the immediate resignation
of Mr.. Ward and the payment of the
sum OF the overdrafts. The demand
for his resignation was promptly COM
piled with, and the overdrafts were
paid within a few days thereafter
General Oran Perry was appointed to
the vacancy.
. Inaccuracies In the reports made
to the auditor Of state by Secretary
, of State Daniel E. Storms, discovered
, by the committee. led subsequently
to the disclosure Of the fact that the
| secretary had sequestered fees due
to the state and missapplied certain
) funds appropriated to the Office of
secretary of state for nublic nurposes.