The Yale expositor., 1908-03-20
FINISHED THEIR
WORK AND QUIT
THE INGHAM JURY INDIcTs TWO
MORE, BOASTS SOME AND
CONCLUDES.
WARM COMMENTS MADE.
Examined Sixty-eight Witnesses in
Twenty-eisht days, Returned Five
Indictments - State Treasurer's
Practice Condemned.


dlctments and submitting report
which was intended as a resume OF
us Investigations, the Ingham county
/ grand jury at Mason adjourned Satur.
DAY afternoon. Ii was in session rs
days and examined 6S witnesses. The
total product of its labors consists OF
HVe indictments and their report, the
full text being given here:
In the discharge OF its duties
THIS jury has found it necessary to
present certain indictments against
the late state. treasurer. The merits
OF these indictments IL is not intended
mere to discuss, but in the investiga-
lions which have led to them. the
question has been forced upon our
minds whether other departments of
Ihe state have fully realized the
powers and duties imposed upon them
relative TO the safekeeping of the pub
lie moneys OF the state.
IL Is well known that at times the
state has on hand large surplus funds.
Inc law contemplates, II il does not
direct, that these funds be deposited
In banks until required for use. II
also contemplates that careful provis-
ION shall be taken for their safe-keep-
Ing and repayment when required. BY
section 1889, of the statutes. the treas
urer is instructed TO require of anv
Dank before he shall have made il a
depository of surplus funds, good and
ample security for their safe-keeping
ana reimbursement when called for
and Tor the payment of such rate OF
interest as the state treasurer. in his
discretion, shall deem best for the in
terests OF the state. And not only is
such security to be taken. but it must
De approved not only by the treasurer.
but by the auditor general and secre-
tary OF state as well.
me law also provides that on the
hrst Tuesday in each month. and at
any other time when they shall deem
IL necessary, the auditor general and
commissioner OF the state land office
snail examine the treasurer's account
OF moneys received and of moneys
paid out by him, and the moneys in
the treasury and, IL on examining such
moneys, they shall discover any irreg-
ularity or deficiency therein. they
snail as soon thereafter as may be re-
port in writing the nature and extent
OF such irregularity or deficiency TO
the governor so that the same NAV be
submitted to the legislature, IL in the
opinion or the governor the interests
OF the state shall require It,
1t has also provided by another sec
ton that the state treasurer shall not
directly or indirectly receive any pe-
cunlary or valuable consideration as
an lnducement for the deposit of any
pubic moneys with any particular
Dank. person, firm or corporation: and
by section 8, of article 81. of the con-
stitution, the governor is given power.
and IL is made his duty, except at such
times as the legislature may be in SEES
sion, to examine into the condition
and administration OF any public of
hcer, and the acts of any public of
f1cer, and to remove from office the
state treasurer and certain other Of
ficers for gross neglect Of duty. or for
corrupt conduct in office. or for any
other misfeasance or malfeasance
therein.
These provisions seem not only
broad enough to effectually control
a state treasurer in the administration
OF his office, but to impose upon other
of1cers and other departments the
duty of exercising watchfulness over
such administration. This. however.
does not seem to have been the inter
probation placed upon the law, or at
least ii has not been considered in.
cumbent to carry such supervision to
the extent which to us seems reason.
able.
we do not wish TO charge any
other officer with an intentional ne
glect of duty, for all evidently acted
in good faith. and in accordance with
the practice of their departments. But
1t seems TO have been supposed that
in the deposit of state funds. the iudg-
ment of the treasurer was practically
without control.
"As said before, there are frequent
ly large surplus funds of the state on
hand. The treasurer is authorized to
deposit these funds in banks. but as
above shown, he is specifically re-
CURED to take good and ample secur-
ity for their safe-keeping and REIN
bursement. From the time. however.
of Mr. Glaciers control of the treas
ury 1t has been the general practice to
deposit these funds upon security to
only one-half of the amount of the de-
post. There have been some excep-
tons, but this has been the general
rule. Certainly this is not the inten-
tion Of the statute.
Taking security is a term with a
very definite meaning. II does not
mean that the character of the depos.
itory bank may be taken into consid-
GRAFTON and security dispensed with.
All banks under this provision must
be treated alike, whatever their stand
ing. The security of so per cent of
the deposit cannot be good and ample
security as such. IL the character and
standing of the bank may be taken
into consideration, then all security
may be dispensed with, and this the
law forbids.
I'VE cannot help but think that the
course taken by the late treasurer in
this matter was a violation of the law,
and we have seen that the auditor gen
eral and secretary of state are re-
CURED to approve these bonds. But
whether this means that they shall
approve them simply as good for the
amount named I'm the bond. or as
good and annie security for the safe