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

| Acknowledgement. The sum of money
returned to the State by General Ward
is $1,510.44.
Inaccuracies in the reports made to
the Auditor of State by Secretary of
State Daniel +. Storms. discovered by
the committee, led subsequently to the
disclosure of the fact that the secre-
tary had sequestered fees Que the State
and ~misapplied certain funds a%ppropri-
ated to the Office of Secretary of Stat
for public purposes, by converting them
to his own use. The committee was i'm
| mediately directed to examine the books
and accounts of the office of Secretary
of State, but upon appearing at the
office to take up the work they were re-
fused permission to xamin or see any
of the books or accounts of the Office.
The executive then addressed to the
Secretary a demand in writing for full
information touching the condition of
the affairs of the office of the Secretary
of State. This the Secretary declined to
give. Thereupon the Attorney General
assisted by eminent counsel, employed
by the Governor for that purpose,
brought suit in the Superior Court of
Marion County to remove the Secretary
oath of the executive. with the embez-
element of public funds and malfeas-
ance in office.
The statute under which the proceed
ing was brought was held invalid by
the court. Having failed in the courts
| TO secure the removal of the Secretary.
t snst sxeemftHe G was s a9o Hs1 to G4nve en- she fne
cial session, for the purpose of asking
his impeachment, when he resigned. The
| committee Immediately took possession
of the books and accounts in the office
and made a careful examination of the
| same for the period Of Mr.. Storms in
| cumbency. The report of the committee
shows in detail the condition found.
The misappropriation of funds, con
version Of fees and approximations made
! s4,5S3.50, interest upon which at the
time Of the retirement of Mr.. Storms
amounted to s3,556.35, a total, princi-
| NIL and interest of & S12QS E The S1na
was paid in full to the Treasurer of
State April 1. 1906. the date of the Sec
retary's retirement.
Errors in the tax state
ments of certain foreign insurance COM
panies, occurring during the administra-
tion of Mr.. Sherrick. were discovered.
sum was paid into the treasury by the
companies owing the same.
office led the executive to instruct the
committee to examir e the accounts and
books of the office pack to 1872. The
forth in the commit ee's report and are
such as to ~abundantly justify the ex-
%ecutive direction under which they
A discrepancy in the accounts of Gen
eral NJ. ID. Manson as Auditor of State
was discovered. amounting to S347.50.
| which was evidently due to errors in
advertently made.
James II. Rice, while Auditor of State.
collected and retained insurance taxes
III tltC I'LL VI dnu Otdi
fees due the State in the sum of $685.
5000. These sums, together with in
terest thereon to April /, 1905. amount
to s10S,S77.74. This sum represents the
| claim of the State against Mr.. Rice. ex-
elusive of statutory penalties. The ex-
auditor is dead. / am advised that his
itations 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
~roneously paid Mr.. Rice, amounting.
principal and interest. to $z6,091.27.
Payment to him in defiance of the pro-
| visions of the law was not payment to
| the State. Proceeding upon this theory
investigation was made and the names
of the companies making the erroneous
each were ascertained and notice served
upon them that payment must be made
by the 10th day of November, 1906, to-
gether with 6 per cent. interest thereon,
State would be revoked and suit insti-
tuted to collect TIE amounts due. On
by all but W or three of the ompa-
MES. The amount paid into the State
treasury. was, principal $9.755.7S. in
iieaess: s q balance s of ss. sss.aSso Some en of
the companies owing this balance
ceased years age to do business in the
Ctdtt anu olntfS are lnSOlNent.
1t appears from the report of the
committee that Bruce Carr, while Audi
tor Of the State of Indiana. unlawfully
s4o.oso.oo of reciprocal fees which law
fully belonged to the State, a total of
$74,569.00. Interest thereon TO April /,
sss.S4, k the total claim of the
| State 1851, 470.92. None Of the funds
Incorporated by Mr.. Carr were in
surance taxes. Mr.. Carr is dead. His
estate. I am advised. is insolvent. and
the statute of limitations bars suit up
on his bond. This sum is, therefore, lost
to the State.
j. o. Henderson, as Auditor of the
State Of Indiana, collected and retained
insurance taxes, regular fees and recip-
ss9sal insurance fees a~ggregating $4s;-
with the penalty Of 10 per cent. i'm
This. in the judgment of the executive,
constitutes a valid claim against Mr..
Henderson. Acting upon that assump-
suit in the Superior Court of Marion
County to recover the same.
The report also, shows that A. C..
diana, collected and retained insurance
taxes amounting to $13.511.57. Interest
thereon on March 6. 1906, aggregates
into the treasury of the state other
moneys due the State at the time spe-
Gifted by the law. Interest upon such de-
gregates $2,101.S4. These sums, to-
gether with the penalty OF 10 per cent
imposed by law. amount TO $26,034.51.
Daily to be a valid claim in favor of
the State, the executive instructed the
Attorney General 10 proceed to collect
Boone Circuit Court and cover
therein q Judgment in the sum Of $780,
1850. Mr.. Daily appealed from this
in the Appellate Court.
The aggregate collections already
made from DELINQUENT officers and in
surance companies is shown in the fol-
lowing statement:
David T.. Sherrick. Auditor
Daniel e storms. Secretary ''''0'0
of State ..:............... s.1s9.S5
eraI NEUTRALITY-SUSPICIOUS.. 1904
Insurance Companies ........ 22.753.02
Total .s1s9,4so.41
A. c. Daily, Auditor Of State
J. ,oe O.. Henderson. Auditor of 1''fS'''O
State ....... $50. 101,15s.65
Total ..s12s.5s4.15
III entire cost of the investigation,
including the insurance department.
From a money standpoint alone no
better expenditure of public funds,
viewed from the amount actually re-
covered and returned to the treasury,
has been made in Indiana for many
years. But the commissions work did
not stop with the recovery of these
funds. The moral effect of the investi-
cation ii made and of the facts which
have become public, will continue to be
Of value for years to come.
The facts / bring to your attention
have convinced me of the necessity of
a law authorizing the Governor to APP
point an executive accountant, whose
duty IT shall be to make frequent ex-
limitations of the accounts and books
of the several administrative officers OF
the. State and of the several State insti-
tutions, under executive direction. The
salary ought to be such as to command
the services of a competent accountant.
Such a law would have saved the State
many thousands of dollars in the past
and will save to il many thousands of
dollars in the future. IT is not enough
to expose the system and lay bare its
evils We must put an end to it abso-
lutely.
The general statute covering the sew
eral administrative offices of the State
requires some. of them to make annual
and some semi-annual settlements with
the Auditor n to pay into the treas