The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-09-26

officers whether they we're Interested
in any of the depository banks. IL
was admitted that they are all ctock-
holders in a 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 IL was NONE or
THEIR BUSINESS. The committee
had to get the exact information from
the sworn statements filed in the vari-
GUS counties by the banks, as requir-
cd by law. II proved to be very fiat
tering to tho 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 if not en-.
tirely after they entered the public
service.
Private Interest In Deposits.
No less than So 100000 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 stringency
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 1t. The refusal to
name the banks and amounts Deposit
ed was accounted for.
OF one of these banks. at Ashtabula,
the treasurer was president and own
er of a majority of the stock. That
bank had 100000 Of state money,
which was equal to its entire capital.
No other bank was given deposits on
such a scale.
OF another bank in Columbus, right
opposite the capitol, both the auditor
and his deputy were stockholders
The auditor was president and his
deputy a director. That bank had a
big deposit of state funds. In it the
auditor also deposits for collection
the checks he receives direct for eX-
else and other taxes on corporations,
amounting to nearly $2000,000 per
year. Mr.. Guilbert as auditor of the
state allowed himself as president of
the bank time for the collection of
these checks, and the proceeds were
not entered to the credit of the stCte,
so as to draw interest, until the ex-
piration of such time which ran from
one month to as long as eight months.
This was shown by an examination of
the pass books.
The committee could reach no con-
clusion. nor can /, except that the
purpose was to give the bank the use
of this money for long periods with
out interest That was certainly the
effect and every one is presumed to
intend the natural consequence of
what he does.
Cashiers Checks as Cash.
The law requires the auditor to pay
over to the treasurer the taxes SO
collected He made these payments
by checks drawn by the cashier of the
bank on the bank itself to the order
OF the treasurer.
| Inc lIedSuItI, WIN llt anu VI hlo
deputy and Office force, did manage TO
keep cash book This showed as
weekly balances of cash on hand right
along, In the vault, very large
amounts sometimes reaching more
than $1,100,000 and averaging about
three.quarters of million dollars
This seemed extraordinary in view OF
the laws design to prevent the states
money from lying idle, and of the fact
that the treasurer kept in two Co
lumbus banks an average of about
half n million more which, as he stat
ed. he checks upon for the current
business OF the state And, after the
foregoing disclosures Of ownership by
the auditor and treasurer and theiI
deputies of stock In various banks
the suspicion was unavoidable that
these cashiers checks were held as
cash and not presented for payment
thus, as in case of the time allowed
for the collection of checks just men
toned giving the bank on which they
were drawn and through it these ofh
cials at least to the extent of theil
Gtock. the use of large amounts oi
state funds without interest.
The committee accordingly under
took to find out when these cashiers
checks were collected. There were
no records or even memoranda in the
Office of the treasurer to show it. The
committee then asked at the bank fol
this information, or the paid checks
which would give 1t, but the auditor
of state, as president Of the bank, re
fused to furnish the information ol
produce the checks! The affairs o
customers could not be disclosed
The customers were the auditor ant
the treasurer of Ohio officially ant
the information was demanded by the
duly elected representatives of Tho
people of Ohio, whose money the
checks represented!
Suppression Is Confession.
The mere loss OF interest through
loose business methods would be baC
enough, especially in times such al
We are having. But it is a settled rulC