Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1912-10-29
USED WITH WORTHLESS SEcUR
iTY TO HELP BOLSTER UP
INSECURE BANK.
PUBLIC MONIES UTILIZED TIC
PROMOTE INTERESTS OF
DEMONSTRATION
OFFICIALS WHO PUT $4,000 IN
BANK WHICH FAILED ARE
SEEKING RE-ELEC-
TON.

A sample of the manner in which
the money paid into the state treas
ury by the tax payers is taken care
|of by the State Board of Public Works
is afforded in the case of the Fidelity
Banking and Trust Company at Blue
field. and the loss Of large part OF
the States deposits in that bank. Il
appears from this case that the public
monies of the State have been used,
with apparently litt'~ attempt to
safeguard them, for the purpose of as
sisting financial institution in
which at least one member of the
State administration was a stock
holder and which apparently was
badly in need of al the assistance
it could get.
On September Is, 1911, the Fidelity
Banking and Trust Company of Blue
field closed its doors and was placed
in the hands of receiver. AT that
time the state of West Virginia was
a depositor in the bank to the extent
of about $4,000. After more than a
year has elapsed small portion of
the amount on deposit at the time OF
the failure has been repaid to the
State. but more than two-thirds of
the amount on deposit when the bank
failed remain unpaid, and it is be-
lieved that not one cent of this I'M
paid amount will ever be realized by
the State
State Treasurer a Stakeholder.
State Treasurer f. l.. Long was a
stakeholder in this bank, owning five
thousand dollars worth of the stock.
The actual head of the bank and a
large stakeholder in it was S. NJ
Smith, a colonel on the Governors
staff, and very close friend OF the
present state administration.
The last examination of this bank
prior to its failure was ON April 10,
1911, and it was made by S. V. Mat
thews. who was then state chairman
or the Republican party for West Vir-
ginia.
The law requires that at intervals
OF not more than three months the
security given to secure state de-
posits in any bank shall be examined
by the State Board of Public Works
and the sufficiency OF the security
snail be passed upon. 1t was evil
IDENTIFY the intention of the law that
LIS cAdullHdtlOH OF the security
should be made frequently on account
Oh the changing values of the bonds
usually gwen to secure such deposits.
The Board of Public Works at the
time of the banks failure, consisted
q Governor Glasscock, Auditor Darst
treasurer Long, Superintendent of
schools Shawkey and Attorney Cen
5rai Conley. 1t is the duty of this
BOARD to examine the security for the
deposits in all banks in which the
states money is placed. Every
member of this Board, with the OK
eeDtlon OF Governor Glasscock. who is
lot eligible under the law to succeed
limseH, and Attorney General Conley.
VINO IS running for another office. IS
/ candidate for reelection. If these
;andidates should be reelected a ma
GRITTY of the new Board of Public
works would be the same as a major
~ OF the present Board: therefore.
10 better care of the State funds
'ouid reasonably be expected of the
Few Board than has been given by
he present Board
What Could Be Expected?
II a majority of the present Board |