The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1912-10-24


from communication addressed to
me by Mr.. Wesley E. King of the
American Surety company, dated De.
cember 2, 1908. His letter reads in
part:
Il have made a careful investiga-
ton relative to the matter of bond
for state treasurer, and now beg to
advise you that our company would
not care to consider an application
TO. the bond, or for any part of 1t,
for several most splendid reasons
These reasons are not because of
The officer elect, but by reason Of
the present condition of the laws of
Utah relative to the state ire ,srrers
bond. My Interpretation of such law
is that the treasurer and his bonds
men are absolute insurers of the
public funds belonging to the state.
II my Interpretation be true, you
would be liable as treasurer and
could be called upon to return any
funds Incorporated by any other
state officer, or in case of the failure
of the bank wherein you had depos-
tied your funds or in case you or
any other official were held up and
robbed of state moneys or where you
paid out state moneys on properly
drawn warrants which were improp-
erly secured, or where you paid out
funds on forged warrants.
Il am of the opinion that the laws
hold you to too strict a liability and
for these reasons alone believe our
company would not care to consider
your bond"
Must Look To Banks.
This letter represents the general
attitude of the reliable surety COM
panies respecting the liabilities which
the state treasurer Of Utah neces-
sarily assumes when he takes Office.
They refuse absolutely to consider
the great risks which they claim his
bond invites. | was therefore COM
PEELED to look to the local bankers
careful investigation that they were
the only qualified agencies who were
willing to accommodate me. I found
also as ! had anticipated that the
bankers who serve on the bond of
the state treasurer except a substan-
tial return of favors. In other
words, each bondsman expects and
usually demands his full share of the
states deposits. Let me Illustrate:
Mr.. Frank Knox of the National
Bank of the Republic was one of my
first bondsmen. and during the early
part of my administration | favored
his bank with heavy deposit of the
states money. Now along in the
spring of 1910 1t happened that
drew heavily upon this particular de-
post until 1t decreased to lower
point than Mr.. Knox considered fair
because of the fact that he was on
my bond.
Pointed Announcement.
Consequently on June 81 Of that
year / received the following COM
munication:
"Mr. David Mattson, state treasur-
err, Salt Lake City, Utah: Dear Sir:
You are hereby notified to furnish an
other bondsman in my place upon
your bond as state treasurer on or
before July /, 1910. / refuse to be
liable under said bond for any act
committed by you after that date,
and have so notified the governor and
secretary of state of the state of
Utah. Yours truly, FRANK KNOX"
Now / have no fault to find with
other banker who takes like po-
sition, but I refer to this incident
merely to show you that your state
treasurer is in no position to drive
bargain with the banks. In fact,
II there is an advantage on one side,
or the other in these transactions, the
bankers hold 1t, and the state treas
urer Is always more or less at their
| mercy
Offer OF Mr.. Cutler.
In this connection I desire now to
read you letter addressed to me by
Ex-Governor John C. Cutler of the
Deseret National bank, Of date Jan.
uary 10, 1912
"Mr. David Mattson. Utah state
treasurer, city: Dear Sir-We beg
to submit you the following PROPOSE.
tons, We will allow the state OF
Utah interest on state funds depos.
tied in this bank at the rate of per
cent per annum on daily balances
We will furnish an individual bond
satisfactory to the state officials