The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1910-09-27

systematic loaning of public money
for personal profit. Photographs of
entries, checks, etc, showing this are
in my hands.
Some banks refused all informa-
tion, though they were known to
have been partners in the scheme.
AS they were national, there were no
means of getting at the truth with
out legal process. OF one OF these,
The Commercial Bank of Columbus,
the treasurer of the Republican state
committee, Mr.. w. F. Huffman, was
and is the president. In others still
there were sudden disappearances of
books and papers when, being state
banks, they were obliged to give ac-
cess to their files and records relat-
ing to state funds. But at last evil
dence was secured showing that by
the above and various other devices
the state had for years lost large
amounts of interest which went to
qualify its officials for entry in finan-
cial circles.
One of the methods employed was
this:
Various officers other than the
treasurer collected taxes from corpo-
rations amounting to millions every
year. These were paid by checks,
which were usually, If not always,
deposited in favored banks in which
various state officials had stock, and
months were allowed for collection
of these checks, though they were
promptly presented and paid. During
this period the state lost and others
enjoyed the use of large amounts Of
its money.
The astonishing discovery was then
made that the official bonds covering
both terms of one Of the treasurers
involved had been removed from the
files of the secretary Of state and
could not be found, but copies were
fortunately obtained.
Suits Started In Court.
The evidence of these wrongs was
laid before the attorney general, with
request to bring suits to recover
for the State the profits thus made at
its expense, which he has done. In
spite of all efforts to delay and con-
ceal we are confident that large
amounts will be restored to the treas
ury. One former official has already
paid over a large sum to avoid
threatened suit.
A complete record and system Of
accounts has now been installed in
the treasury, and all money collected
Is promptly paid over and deposited
80 as to draw interest for the state.
After the deposit law took effect
the grating was carried on under
sover of the large amounts OF cash
which 1t was pretended were carried
n the treasury vaults, as above stat
ed, but which were in fact never
there except on the stated days when
the treasury was examined, which
were known in advance.
The depository law was approved
May 3, 1904, but 1t was not put into
operation until November following
Among the banks then approved was
the Cincinnati Trust Company, whose
president was and Is Mr.. George b.
| Cox. This bank was very deliberate
though, about taking deposit under
the law, and did not do so until more
than a year later. Perhaps reluctant
Is the better word, because the bank
already had private deposit OF
100000 of state money at 2 per cent
while the rate fixed by the depository
board was 2h.
Interesting Correspondence
How this was managed appears
from the following correspondence
between the State Treasurer and that
company's treasurer:
Mr. F. r. williams.
Cincinnati, o.
Dear Sir:
our quarterly settlement comes OIL
sat Feb. At 80 | wish you would kndl!
have the currency held by you here no
later than Friday the Bird.
Should you wish 1t you can have
back the following Monday.
With best wishes.
Yours truly,
w. S. McKINNoN.
Jan. 2S. 1905.
| Hon. w, =. MchlnnOns
Columbus, o.
Dear Sir:
] desire TO acknowledge receipt OF y III
letter of the 27th me contents OF whic
have been noted and I'm conformity I
your wishes | will call on you on Frida
next and trust you will find II convent
ent to be at your Office on that day.
Yours very truly.
Il. II, WILLIAMS.
Treasurer.
Similar correspondence occurre
just before each Quarterly count
during the year 1905, while Mr., HaI
ding was lieutenant governor and Il
good health. In January, 1906, Johl
Pattison feebly climbed the steps o
the capitol and this money was trans
ferred to a state account.
All these reforms have been inst
tuted by the present treasurer of hi
own free will, A bill was drawn an
recommended at each session to rG
quire like course by all treasurert
In spite of frequent urging this bill