The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1910-08-25
COMPARISONS ARE ODIOUS.
Hastings Record In Lime Light With
Aliens.


G. A. Hastings has issued statement
in which he claims to have earned
more interest on state funds than any
of his predecessors He does not in
connection with that statement tell
the public that just before he went in
to office the salary of the state treas
urer was increased and laws enact
ed providing that all interest earned
on state funds should go to the state.
That statute was designed for the sole
purpose of preventing the farming
out" of accounts and to prevent state
official from collecting usury for the
use of such money. One of the first
acts of the treasurer was to make an
arrangement with the Boise City Ma
tional bank, Bank of Commerce of
Boise, and the Capital State bank (now
defunct) which was directly in VIOLA
ton of this statute-the depository
law. For almost a year he was sue
cessful in covering his tracks and it
was not until as the result of public
demand Governor Gooding instituted
an investigation that the so-called
collection accounts were revealed,
and it was shown at times that these
three institutions had the free use of
sums aggregating more than quarter
of million dollars and that this vast
amount was not even properly secured.
These facts as stated are all shown by
the report of that investigation made
by State Bank Commissioner W. S.
CLANCY, now president of the Bank of
Commerce at Lewiston. Since that
time permitting the state to recover
the sum which was involved in the
failure of the Capital State bank and
which was not secured as required by
law. the court for the Third judicial
district and the supreme court of the
state have held that the money was de-
posted in violation of law and that
the states account for that reason
should be summarily paid before any
settlement with depositors. 1t was the
fact that it thus became a preference
claim that prevented delay and posi-
BILE loss to the public schools of Idaho.
Mr.. Cheney's report covers a period
of 10 months and shows that during
that time these banks had the free use
on an average of $153,398.00. Within a
period of 10 days after the first charge
was published against the treasurer
in a local paper, this amount was re-
duced to less than $4,000. He had
also placed portion of the endow-
ment funds in these accounts regard
less of the fact that the law made
specific provision that these should not
be removed from the vault in the
treasurer's office These commission
er report, however, shows that at the
time of his examination more than
81 900 endowment" money was still
in the three banks.
In view of the suddenness with
which the situation arose, the treasur-
er in his efforts to return the EN-
dowment" money to the vault before
the inquiry was inaugurated was COM
PEELED to take silver. A sum amoun-
ting to several thousand dollars was
withdrawn from the Boise City Nation
al bank and hauled to the capitol
building on dray and wheeled down
the front walk on wheelbarrows to
the steps. Benjamin Wood and Albert
Peterson, who were then employed as
clerks in the state land office, assisted
in this operation, carrying the bags
of money into the treasurer's office.
Mr.. Wood is now an employee of the
Idaho State Life Insurance company
and Mr.. Peterson is deputy state treas
urer.
After the report of Commissioner
CLANCY was submitted Treasurer
Hastings continued to maintain "col-
lection accounts but for merely nom
inaI sums. This was done for no 9TH
er purpose than to support the de-
Tense of his actions to the effect that
he could not carry on the states bust
ness without maintaining such ac-
counts. These accounts have, how
ever, been entirely abandoned under
Governor Brady's administration and
the state is getting interest on every
dollar on deposit If Treasurer Hast
ings, his opponents ask, has made a
large amount of interest for the. state
money, lawfully, how much more
could he have earned for the public
schools if the sums in collection ac-
counts" had been placed in the regular
state repositories, drawing interest
and properly secured. In view of the
strength shown by 0. V. Allen they
have united in his support.