The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1908-10-19
Williams MAKES REPLY
To TREASURER EDWARDS

maximum amount of 100000. In this
application l also stated that | would
offer surety bond of the United States
Fidelity and Guaranty Company. of
Baltimore Md, which lis authorized
to do business in this state. as secur-
| ity for deposits.
In due course of time the Deposi.
tory Board, composed of the Govern
or, Attorney General and Treasurer.
met in Jackson, opened all bids or ap-
pllcauons, and after full discussion, ]
presume, designated certain banks as
repositories, this bank among the
number, and published the list in the
papers.
In addition to this published notice.
! received notice from the Depository
Board that this bank had been desig-
mated as depository, with full know
ledge by the Depository Board of the
security | would offer. We were mott
fed that we must qualify by a GER
tain way.
Section 2, chapter 90 of Laws of
1908 says, ANY bank in the state may
qualify as State depository by plac-
ing on deposit with the State Treas
urer certain bonds specified therein in
sum 10 per cent. greater than the
amount applied for, or surety bonds
of any surety company authorized to
do business in the State of Mississippi.
Under this law l forwarded to the
Depository Board the surety bond of
the United States Fidelity and Guar
anty Company, made out in the form
of bond drawn by the learned At
torney General of this State in the
penalty of 100000. After the De
pository Board met and examined all
the securities offered by the various
banks, as well as the condition of the
various banks themselves. | was mott
fed by the Governor and Attorney
General that this banks security had
been approved by the Depository
Board. composed of themselves and
the State Treasurer, and that it had
been finally appointed a State deposit
tory with all the authority, privileges
and duties appertaining thereto.
In due course this bank received a
commission as a State depository for
the term of one year, authorizing and
empowering it to receive and dis
burse, according to law any and all
funds there offered for deposit, but
shall not have on deposit at any time
an amount exceeding 100000, the
said depository agreeing to account
for and pay interest at the rate of, and
in the manner provided by law, for
the use of the State funds therein
kept on deposit" which commission
is signed by the Governor and At
torney General of the State and sealed
with the great seal of the State of
MissiSsipDi
Accompanying This was the opinion |
of the Attorney General that the COM
mission was valid Notwithstanding it |
lacked your signature.
Our surety bond for $4,000, upon |
which we have paid the premium, is
now held by the State of Mississippi |
and is, ! presume, on file in your Of |
fee. and the commission to us under !
the Great Seal of the State is now
in our vaults.
For these reasons, Mr. Edwards, |
have alleged" and do now allege !
that this bank is a State depository,
and / trust l may be pardoned for
believing SO. Notwithstanding the
fact your legal opinion may differ with
that Of the Chief Executive and the
Attorney General of the State. both of
of my own humble opinion.
SECURITY OF STATE DEPOSITS. !
In your letter to the sheriff you say
that the law provides that no bonds
shall be accepted as surety if worth
less than par in the market" and
then you go on to say that a surety
bond is not worth par in the market,
it is not worth anything" and further
say that if the depository failed you
could not sell the security for one
cent"
Is it possible that you can not see
that section 2 of this law provides.
for two methods of securing the State
deposits? One method by the deposit
OF collateral securities, assigned with
power of sale in the State, and the 9th
or by bond guaranteeing the faithful
performance of duty by the State de-
pository and the payment to the State
of all moneys entrusted to it, in ident-
ically the same way as bonds of all
officials?
Can't you see you are not expected
10 realize on surety bond by the sale
of it? Kindly look at section II of
the act and you will see that. after
providing for sale of the collateral Sc
curties, which the State may hold it
further says, "and in the event of the
failure of the State depository to pay
any warrant when such depository
has placed as security surety bonds,
the Treasurer shall notify the Attorney
General and that officer shall take
such immediate action as he
shall deem most expedient for cover
ing back into the State Treasury all
State money on deposit in such de-
pository," etc.
So you see, my friend, not only
would you not have to sell a surety
company bond, but you would have
nothing to do with it beyond notifying
the Attorney General.
The main trouble here is that you