The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1908-05-12
INDICATED BY CON-
MITTEE REPORT
Large Discrepancy
in Treasury Affairs
People Of Ohio Seem to
Have Been Robbed Of
Many Thousands by
Loose and Unlawful
Acts of Public Officials.

Loose and Unlawful
Acts of Public Officials.
Columbus, O., May 1.-Two reports
Of the senate committee that inyestl-
gated the offices of the state treasurer,
auditor, and fire marshal were sub
mitted to the senate Saturday MORN
ing. The majority report was signed
by the Democratic members. Howe
and Drake, Senator Patterson, the
Republican member, submitted a min
ority report,
An abstract of the Howe majority
report Of the senate committee to In
yestigate the office Of treasurer and
auditor Is as followsi
The committee found that the Office
of treasurer has been administered
with the greatest diregard Of the pub
lio welfare,
The Office contained no books, ledg
ers Or records showing the transac-
tions of the treasurer with the 14S
state repositories.
There was no book record Of the
amount of money deposited.
There was no ledger or journal ac-
COUNT with banks, The treasurer had
to 90 TO the banks themselves to OBJ
tain information and this, when re-
ceived did not correspond with his rec
ords.
The committee could not ascertain
the facts, but the auditor of state and
the Capital Trust company, of which
he is the president. refused to produce
tho cashiers checks which evidenced
this transaction with the treasury de-
partment. These cashiers checks were
issued to the treasurer in settlement
81 collections amounting to $4,000, 900,
under the Cole law.
AN ENORMOUS DISCREPANCY.
AS indicating the utter disregard of
business methods, it appears that
discrepancy Of S39,8Sl. As existed be-
tween the correspondence of the bank
and cash book entries. The discrep-
anoy between the statements of the
banks and the cash book of the treas
urer amounted to $5,O71.73, These
balances favored the treasurer.
The committee further found that
the treasurer neglected to deposit
Quarterly collections Of February 1903,
for two months. On this sum the state
lost interest on over $50, 900.
The state board of deposit, consist
ing of the treasurer, auditor and attor-
ney general, made no effort to secure
competitive interest from the banks.
They accepted a fiat rate of Ia per
cent interest on active repositories
and 3la per cent interest from inactive
repositories, which were paying from
5 per cent to per cent to other de-
positors.
The board was equally negligent in
leaving immense amounts Of money in
the treasury, for which no interest
was received.
The average cash balance for three
years was s748OOO, on which the state
lost interest amounting to over 100000.
OVER 100000 IN GRAFT.
An explanation of the low rate OF in
terest secured may be found in the
fact that the treasurer. auditor and
Mr.. Green are all interested as stock
holders in banks which held upward
Of million dollars Of the states mon
ey. That higher rates Of interest
could be secured is seen from the op-
Grafton of the city and county depos-
itory laws under which, by compari-
son, interest as high as per cent
Is received There is no doubt that
the board of deposit could have real
tied TO the state during the last three
years at least $3.50, 900 instead of $24O,-
$50 received.
Immense sums have been lost as in
terest through the action of the audi
tor in depositing money in banks in
which he was interested and permit
ting 1t to lie there for considerable
periods Of time before it was turned
over to the treasurer. The same is
true OF the secretary of state The
examination of the collections of the
auditor shows that the average month
ly balance of state funds carried in
The Capital Trust company before any
attempt was made to transfer 1t TO
the state amounted to s96O34. Even
at 21s per cent interest the state lost
95,s02 on this sum.
AUDITOR AT TT NINE YEARS.
The auditor carried a similar month
ly balance of $4,000 in other banks,
covering a period of over nine years.
Interest at 21k per cent on this sum
equals 22,554. In addition to this loss,
the auditor testified that he held the
checks of corporations for consider
able period of time before cashing
them, at the request Of the corpora
tions. Secretary OF State Laylin car
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You don't know how good
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