Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1909-12-10
RECOVER STATE MONEY
SUITS TO BE INSTITUTED INTO
COURT AT ONCE.
Action Based on Harmon's Evidence OF
Misappropriating ohio's Funds
viii be Started by Denman.

Columbus, O.-Immediate action in
investigation of state offices insti-
tuted by Gov. Harmon. Attorney Gen.
eral Denman, following prolonged
conference with the governor, an
nounced that he would institute at
once suits against the bondsmen of
former state officials for the recovery
of large amounts Of money which Gov.
Harmon charges we're collected on
public funds deposited in banks before
and after the enactment of the state
depository law. The attorney general
made his announcement after he had
examined much of the evidence al
ready in the possession of Gov. Har-
mon. The suits, it is understood, will
involve the heads of other depart
ments as well as former state treas
urers. All the departments through
which the tax machinery of the state
is manipulated have come under the
scrutiny of the governor. Millions of
dollars in taxes and fees find their
way to the public treasury through
several of the big state offices. Gov.
Harmon says he has thrown a search
light on the Office of state auditor.
The suits to be brought in connection
with what Gov. Harmon charges was
the diversion of interest on state
money in Immense sums" was the
only matter in connection with the
general investigation that was taken
up in any detail between the governor
and attorney general.
The governor informed the attor-
ney general that he had other data
which he would call to his attention
at another conference. These data,
Gov. Harmon says, refer to the in
vestigation of the fire marshal's Of
flee, under the administration Of
United States Marshal Hy ID. Davis
of Cleveland; the secretary OF states
office under the administration of l..
c. Laylin of Norwalk, and the office
of the railroad commissioner under
the administration of j. C. Morris of
Youngstown. These matters, Gov.
Harmon says, are small in compari-
son to the big sums involved in the
suits for the recovery of interest.
The first suit to be filed by Attor-
uty II was all
nounced, will be against the bonds
men and estate of w. S. McKinnon,
treasurer from January /, 1904, un-
til his death in the fall of 1908.
Some of the things about state
funds reported by the governor in
letter to Denman are:
The surplus of S1,000,000 reported
in the treasury statements as carried
in the vaults of the office was not
there except at the times of quarterly
examinations. Generally it was de-
posted in banks on the personal ac
counts of the officials or otherwise
in use by them for their personal gain
Examiners were deceived into
making fictitious reports of the treas
ury's condition by the presence OF
the cash in the vaults on the days oi
their visits.
Before the depository law took ef
feet large amounts of the state funds
were held in banks to the credit oi
officials, and not until the law be
came operative were these accounts
\ transferred to the state.
When State Treasurer Creamel
took charge of the office he was un
able to find books or accounts show
ing fully and correctly deposits Of
state funds under his predecessors.