The Democrat-sentinel. [volume] (Logan, Ohio) 1906-1935, 1908-10-01

and "the assertion can be made with
out fear of contradiction that there
has not been a cent of the public
funds stolen or misapplied."
am glad to say that believe the
governor to be perfectly honest and
upright himself But fear he had at
his elbow when that part of his
speech was written one OF those
snlfty steersmen who are familiar
with the gaps which are unfortunate
ly sometimes left between moral hon
esty and legal crime, because nobody
has made the charge OF technical lar
ceny or embezzlement.
What was the conduct of these Off
cials. then, which the governor does
not think deserves condemnation or
even inquiry?
The state House Probe.
In January last the house passed
resolution asking the treasurer to
give the names of the banks In which
the public funds were deposited, with
amounts, rates of interest and certain
other information. The treasurer
paid no attention to the request. Two
weeks later the house inquired when
he proposed to give the information.
He finally complied in part but re-
fused to name the banks and the
amounts deposited in each.
The house insisted and the treas
urer was finally compelled to comply
but did not do SO until March.
Loose Methods In Treasury.
This conduct, of course, caused
general amazement, and the senate,
Feb. 20, by a unanimous vote. ap-
pointed committee Of investigation
which promptly proceeded with its
work. The treasurer, his deputy and
the auditor were put on the witness
stand.
The treasurer and his deputy, who
was also the secretary Of the board
of deposit, said there were no books
to show in what banks, in what
amounts, or at what rates Of interest
the state funds were deposited. There
| were certificates of deposit issued by
| the banks, from which names and
amounts might be gathered and the
| interest computed, but the interest
paid could only be CLEANED from the
banks letters transmitting checks for
| It, and some of these letters were
missing So they had to write to the
14S banks which had been favored
with deposits for statements of the
interest they had paid. and these did
| not agree with the slips and loose
memoranda which constituted the
accounts" of the deposit CT the funds
| of the state of Ohio. AS the treasurer
| was business man and his deputy
an expert bookkeeper, this state OF
| things looked q .eer to everybody but
the governor. In any private office
in the state there would have been a
vacancy and an investigation before
sundown.
Governors Peculiar Apology.
But let that pass as mere careless
ness, II the voters of Ohio are willing.
They will surely hope it is true, az
the governor said at Youngstown re-
ferring to this and the other disclos,
ures of the investigation, that "No
two persons, perhaps, would conduct
public Office in precisely the same
way, except in the general compli'
,nce with the law" These deputies,
J. elected. might conduct the offices
Inc same way as their Chiefs but GER
hiniy nobody else would.
The committee then asked these
officers whether they were interested
In any of the depository banks. 1t
| hot oil ctn oly
holders in number of banks; but
when the committee asked in which
banks and how much stock they had,
the answer by the treasurer and his
deputy was that it was NONE OF
THEIR BUSINESS. The committee
had to get the exact information from
the sworn statements filed in the vari-
pus counties by the banks as requir-
ed by law. 1t proved to be very fiat
tering to the thriftiness of all these
officials, most of whom had entered
the public service little blessed of for.
tune. and also to their sagacity in the
selection of these particular bank
stocks for the investment of their
savings, which was largely II not en-
tirely after they entered the public
service,
Private Interest In Deposits.
No less than $2,O00000 of the state
funds were found to be on deposit in
banks in which the treasurer, the
auditor and their proposed deputy
successors owned stock and the bank
Of George b, Cox in Cincinnati. Even
during the late money string,, -
these deposits were continued at the
same low rates of interest without
any effort to secure for the state the
high rates which private citizens who
had money got for it, The refusal to
name the banks and amounts deposit
ed was accounted for,
OF one of these banks. at Ashtahula
the treasurer was president and own
er of q majority of the stock, That
bank had 100000 of state money
which wts equal to its entire capital
No other bank was given deposits OF
such a scale,
or another bank in Columbus, righ
opposite the capitol, both the auditor
and his deputy We're stockholders
The auditor was president and hi
deputy director. That bank had {
big deposit OF state funds, In 1t th'
auditor also deposits for collection
the checks he receives direct for eS
else and other taxes on corporations
amounting to nearly $2,O0OOOO pc
year, Mr.. Guilbert as auditor OF thu
l II. -