Belding banner. (Belding, Mich.) 1889-1918, 1908-03-19
FINISHED THEIR
WORK AND QUIT.
THE IkGHAM JURY iNDicTS TWO
MORE, BOASTS SOME AND
CONCLUDES.
WARM COMMENTS MADE.
Examined sixty-eight Witnesses in
Twenty-eight days, Returned Five
indictments - State TreasuTcr's
Practice Condemned.


After handing down two more in
dictments and submitting a report
which was intended as a resume of
It's Investigations. the Ingham county
grand jury at Mason adjourned Satur-
day afternoon. II was In session %
days and examined 6S witnesses. The
total product OF its labors consists of
five indictments and their report, the
full text being given here:
In the discharge of its duties
this jury has found it necessary 10
the late state treasurer. The merits
OF these indictments II is not intended
here 10 discuss, but in the investiga-
lions which have led 10 them the
question has been forced upon our
minds whether other departments OF
the state have fully realized the
powers and duties imposed upon them
relative To the safekeeping OF the pub
lie moneys of the state.
1T is we'll known that al times the
state has on hand large surplus funds.
The law contemplates. If it 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 10 require of any
bank before he shall have made il a
depository OF surplus funds, good and
ample security for their safe-keeping
and 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 10 be taken. but it must
be approved not only by the treasurer.
but by the auditor general and secre-
tary OF state as well.
The law also provides that on the
hrst Tuesday in each month. and al
any other time when they shall deem
II necessary, the auditor general and
commissioner Of the state land office
snail examine the treasurer's account
or 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-
uiarity or deficiency therein, they
shall 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 may be
submitted 10 the legislature, IL in the
opinion OF the governor the interests
OF the state shall require IL.
1T has also provided by another sec
ton that the state treasurer shall not
directly or indirectly receive any pc
cuniary or valuable consideration as
an inducement for the deposit OF any
public moneys with any particular
bank. person, firm or corporation; and
by section s, 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 ses-
sion. to examine into the condition
and administration OF any public Of
ficer, and the acts OF any public Of
flcer, 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
ofncers and other departments the
duty of exercising watchfulness over
such administration. This, however.
does not seem 10 have been the inter
probation placed upon the law, or at
least il has not been considered in.
cumbent TO carry such supervision 10
the extent which TO us seems reason.
able.
I'VE 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
II seems TO have been supposed that
in the deposit of state funds, the judg-
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-
I ity for their safe-keeping and reim-
bursement. From the time, however,
| of Mr.. Glaciers control of the treas
ury it 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.
! tions, but this has been the general
/ rule. Certainly this is not the intcn-
ton OF the statute
Taking security is term with a
very definite meaning. Ii does no;
mean that the character Of the depos-
I 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 80 per cent of
the deposit cannot be good and ample
security as such. If the character and
standing of the bank may be taken
into consideration, then ali security
may be dispensed with, and this the
law forbids.
1--WE cannot help but think that the
course taken by the late treasurer i'm
this matter was 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