Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1907-06-27
LEGISLATIVE COMMITTEE 5
REPORT.
summary of the FINDINGS.

Summary of the Findings.
BANKING AND INSURANCE COMMISSIONER.
The report Of the Hahn Investigation
Committee to the law makers at Trenton
contain many valuable recommendations
which were envolved as a result OF the
investigation The committee, winch in
its six weeks raking in Republican muck
uncovered so many unhealthful state con-
ditions, was again put to work the latter
part of last week, this time to probe into
the management of the several state insti-
tutions-schools, sanitarians, etc. Coun-
sellor Baches will again head the COM
mittee and conduct the cross-examination.
The report Of the committee in part is as
follows:-
GET RID OF SURPLUS BOARDS, COMMISSIONS
The commissioner Of banking and insur-
ance confessed that he kept on deposit the
funds of his department., without exactiDg
interest. These moneys frequently aggre-
gated more than 100000 The moneys
were deposited in two banks in the home
town of the commissioner, located far from
the seat of government. In each OF the
banks he was a stockholder. In one be
was a director, and to the other he acted as
counsel. Some of the moneys so deposited
were Withdrawn by him from an institution
paying interest. In the opinion OF your
committee the commissioner was unmind-
ful Of his trust.
His conduct was a violation of the spirit
Of the law, resulting in large profits to the
banks in which he was personally interested
and in the loss of many thousands Of dol
lars of revenue to the state. 1t also appeared
by the commissioners testimony that ac-
cording to the act under which his depart
ment is operating, he remits his receipts to
the state treasurer in quarterly payments
only. It further appeared shat the amount
Of bis b0ad TO the state for the faithful
performance of his duties is the penal sum
Of S2O, 900, which he confessed sis greatly
out of proportion to the sum Of money con-
ssantly passing through his hands.
The committee recommends that the law
be changed compelling the commissioner to
make monthlY remittance Of the states
funds, and that he give bond with suffi-
cient surety in the penal sum Of SIS, 900.
The commissioner OF banking and insur
anee does not stand alone in the failure to
collect interest. Although the various
heads of other departments make monthly
returns Of the income Of their Offices the
daily balances are not interest bearing. II
Is common knowledge that substan tial
banking institutions of the state pay inter
ests upon daily balances. This revenue
should be as available to the state as it is
TO private depositors. By way of remedy
your committee advises legislation that all
public funds, collected on behalf Of the
state, be deposited in banking institutions
paying interest on daily balances, and that
the aceresions inlre to the state.
STATE TREASURER
From the testimony of the state treasurer
It appeared that he carries on deposit on an
average Of u2w lrds Of half million dollars
in moneys kna.yn as the railroad fund y
These moneys are held By the treasurer,
having been deposited as au evidence of
good faith for the construction Of railroads.
These moneys are, it is true, the property
Of the railroad companies, but for the per-
formancs of the trust by the treasurer no
remuneration is paid to the state The
fund is distributed by the treasurer among
favored banks of the state. No interest IS
demanded These sums 50 held should be
made a source Of revenue to the state as a
compensation fol- the states services in adj
ministering the trust Your committee
advises legislation compelling the treasu rer
to deposit these, as well as all other moneys
in banks, paying interest Of not less than
two per cent. per annum, the accretions to
go to the state.
TREASURER Discussing OFFICER.
In some of the institutions, into which
the management your committee inyesti-
gated, this system has been productive Of
vicious practices, and the door is left open
for further depredations. In the opinion of
your committee, the policy Of permitting
recipients Of state appropriations to spend
at will without state supervision, is not
compatible with good business methods and
harmful to the public welfare.
For remedy your committee recommends
that all incomes from whatever sources re-
ceived by departments, institutions and
commissions be paid to the state treasurer
monthly, and shat debts contracted by them
be first submitted to the treasurer, under
oath. and paid by his warrant upon the
treasurer.