The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-02-22
Claim That He Has Shown
Partially in Distribution Of
State Funds, But HadIey
Makes Denial.
REID BANK FARES WELL
STATEMENT Is MADE THAT THIS
INSTITUTION GOT DoUelE THE
SHARE ALLOTTED TIE MER-
CHANTS BANK.
Palladium Bureau,
Indianapolis, Feb. a.

Palladium Bureau,
indianapolis, Feb. q.
State Treasurer Oscar Hadley is un-
der fire. according to reports that
were circulated Saturday night and
yesterday. and ii is said that Cover
nor Marshall is investigating the
transactions of the treasurer's office
with a view to ascertaining whether
there is any truth in the rumors. Gov
ernor Marshall. however. refuses to
give out any Information on the sub
ject and II he has anything of that
kind on his mind he is keeping il to
himself
The first report Saturday afternoon
was that the governor was investi-
eating the affairs of one Of the state
offices. 1t said that there was a pos
sibility that one of the state officers
would -Nksly- he asked to resign and
that il he did not resign he would be
removed. 1t was said also that there
might be a grand jury investigation.
The office was not designated. and
there was nothing in the rumor to in
dicate which one was meant. But lat
er it became noised about that the
office referred to was that of state
treasurer. There is no charge OF
shortage or anything of that kind. and
it is believed by everybody that the
books of the office will show that ev-
s, III snht tn hat orsi lar
But later reports said that the first
yumor had reference TO the manner
In which the funds Of the state were
deposited with the public repositories.
the allegation being that the funds
were not kept in equal distribution
among the various repositories.
Bankers Before Marshall.
The fact that Otto ~ Frenzel. pres
ident of the Merchants National bank
of thisscity .apd John p. Frenzel. pres
ident of the Indiana Trust company.
also Of this city. both OF which insti-
| tutions are depositories for state
funds. were summoned before Cover
nor Marshall and that they appeared
at his office late Saturday afternoon
gave strength to the rumors, although
the two Frenzels refused to say any
| thing about why they made the call
or the subject discussed with the
governor. John p. Frenzel remarked
| before he entered the governors Of
flee, however, that he knew why he
was called and that he had no infor-
nation that he could give to the gov
| ernor.
| Soon after Frenzel made his call IT
became noised about that the COVER
nor had been informed that the state
treasurer had failed to maintain pro-
portionate balances in the various
banks acting as state repositories and
that there had been discrimination in
favor of the institutions controlled BY
the Frenzels.
Just why this alleged discrimination
was made was not stated by those
who talked about the matter.
He Denies Discrimination.
Hadley denies that there has been
any discrimination in favor Of the
Frenzel institutions. He says that the
Merchants National bank has on de-
posit only about 315O.OO0 OF the state
funds, while the Capital National bank
has nearly double that sum. The Cap.
ital National bank is owned by Daniel
G. Reid. of New York, formerly oi
Richmond.
Hadley also denies that there ID my
of the states money on deposit any
where except in state depositories-
Hadley says the depository Law
tdoes not require him to maintain
sproportionate deposits in all Of the
state repositories. A member OF the
Legislature declares that the section
lof the law relating to maintaining
!proportionate deposits refers only r.
counties, cities, etc
Revelation in Store?
| Whether there is anything else
back of these rumors or whether there
lis anything else wrong in the treasur-
lers office cannot be learned. But
There are rum0rs that there will be
further Developments within the next
few days
When Governor Marshall was asked
about the rumor that he vas consider
lCuuffnneden~A ~AGn snYA