The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-10-23
CROOKED WORK
REVEALED BY
FIRST REPORT
Idaho Governor Tries to Protect
Treasurer Hastings and
WithhoIdS Document.
SHORTAGE MADE GOOD
AFTER SOME TROUBLE
ILLEGAL LOANS OF STATE FUNDS
TO BANKS WITHOUT INTER
EST FOR COMMONWEALTH.
Special to The HeraldJ

Especial 10 The Herald
Boise. Ida. oct. 22.-The report on the
condition OF the accounts Of State Treas
grer Hastings has been made public by
Governor Gooding. It is signed by w 3
CLANCY. state bank examiner. and Is dat
ed oct 6. 1898
Il IS not the original report made by
Mr.. CLANCY however. Governor GOoding.
iu response to a question by a represen-
tatIve Of the press. said:
III is an amended report. II bears the
same date az that Of the original report
Did the original report show snort
8ge?' Governor GOoding was asked
1T did replied the governor, amount
ing To nearly $1,000. but the subsequent
report shows there was no shortage
Original Report Withheld.
The governor also stated in response to
% query. that the original report would
not be made public.
The report discioses that the state treas
urer handled more than Ao00.0o0 through
collection accounts in two Boise banks
without having made an entry of the
same on the state records. prior TO July
j. 1905. and after the exposure. II IS also
revealed that this money was deposited
without interest for the state and with
out legal surety. Hastings took personal
bonds which under the depository law
are declared void. because signed by di-
rectors Of the bank in which the deposits
we're made.
He began these transactions almost as
soon as he got into office. first in a small
way but before long running the amounts
mp 10 more than a quarter of million
dollars.
Amount Now Held Small.
After his actions were publicly exposed
last year he began TO reduce the amounts.
With the approach OF the present cam
paigu he made reductions until now the
amounts illegally held in banks is small.
Examiner CLANCY says that prior to
June !. 1893. absolutely no ledger account
was kept OF these accounts. Instead of
making entry in the books showing where
he had placed these funds. Hastings sim
ply made notations on a private tab.
When Mr.. CLANCY first checked up the
office these tabs We're available. but when
ne checked il UP the second time they We're
not M. Clancy then undertook 10 check
from the stubs but found IL impossible
10 strike balance that way. He says
In his report that they We're very diff
cult to decipher." The report also states
that in some cases the stubs differed from
the amounts on the checks so it became
necessary for the expert to check rom
the cancelled checks instead OF from the
permanent recOrd-the stub.
The bulk of the report is made up of
columns OF figures giving the daily bal
auces of Hastings collection accounts
from Jan. ]. 1907. to Sept. g. 1905 Every
days transactions with the banks IA
vored by Hastings is shown. The figures
cal that he started in mOdestly-SlO eco
within eight days after he set foot in the
olfice-but he rapidly increased these
Illegal deposits until they reached the
sum OF more than a quarter of a million
dollars The volume Of money given 10
these banks which action Is declared in
violation Of the state depository act. was
maintained at a high mark, but with some
fluctuations always leaving large bal
81 the state treasurer were exposed. He
then began 70 reduce the amounts.
Amounts Whitfield Down.
There seems 10 have been considerable
~ scare thrown into him when the Can
itsl State bank failed with over 5000 of
these funds on hand. 1t was not until the
approach OF the campaign. however that
hastings began TO seriously reduce the
amounts OF illegal deposits In June of
quarter OF n million in these accounts. as
h. did a year before. he only carried
Noeo 10 $4,000 He whitfield them down
as the campaign approached until in Au-
gust they amounted 10 only So 600 to $50
'p, and on Sept. 9. the last day mem
toned IN the report. ne carried ONLY about
A'"0 as the total Of his collection ac-
counts
Al various times in the period covered
or the report the balance collect ac-
counts I'm one institution exceeded the
amount or the patd-up capital stock of the
institution. In February Of 1907 the de-
H"'t was A56.574: April l, SIS 673; June
m MS report Examiner CLANCY said:
lou Will observe that the greater part
'' our TINE has been employed on the
uoo accounts. no ledger account of
-- q. p.'yi tp June !. 1908. being kept
.-rSs iults and the figures given |
s were taken from current pass books
,le various banks and the treasurer's
ce'ru checks. which in many instances
very difficult TO deCipher
mere being no ledger account of what
SHOWN as the collection account prior
1-l- D lsS. We endeavored TO arrive
ms nrt balances by checking the pass
,s IN 'ho check stubs. but for the reason
--l, l-lr check stubs in some instances DIFF I
-rl rom the paid checks. il was nee
ail l1 check the paid vouchers
al. interview Mr.. CLANCY said.
Ns stated in my report / found il
.'.! difficult matter To check up the
..r na account Of the condition of the
....h STUDS They were in bad shape
Y.i' Aot get d balance from them and
- " Use the cancelled checks. The dis
-Fe- lies between stubs and checks
-'1 amount 10 several thousand dol
.Ss '-a- and other conditions encoun-
'7- made il long, tedious task"