The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-17

'sIn the recent examination of La
Pointe Indian agency, located at
Ashland, Wis, I discovered an item OF
$4,000 known as scaling fund, IL
being fifteen cents per thousand de-.
Quoted for expenses at the time the
Indians are paid for their timber. This
arrangement was made some fourteen
years ago, at a time when the con-
tract for the sale of this timber was
originally made, it being figured that
it would cost fifteen cents per tnou-
sand to market the timber. 1 think
that the calculations were perfectly
honest and made in good faith at that.
time. This money (Scallng fund) was
deposited in the bank to the credit or
the superintendent of the Indian
the superintendent was prohibited
from collecting interest upon this de-
post, which order also applied to all
similar deposits throughout the In
dian service.
Makes Inquiry.
81 incidentally made inquiry in re-
gard to this very large account to
know why interest was not credited up
from month to month the same as on
our other Indian money and elected
the information 1 have given you
above. This prohibitive order was
made on the theory that the collec-,
ton of interest upon this kind or
money might lead to dishonesty on
the part of the superintendent.
took the position at once that II we
had any superintendent in the Indian
service who were dishonest and who
would not collect interest regularly
and promptly and honestly should be
turned out on general principles. The
theory that a man will be honest in
part of his business transactions and
dishonest in the rest of them is an
entirely wrong proposition.
"I was informed at first that there
was a law against the collection OF
interest upon such deposits-even an
attorney in the Indian office informed
me accordingly-but / continued my
investigation and found out that 1t was
only an order which could be resc1nd-
ed by the same authority ana upon
my recommendation new oroer mas
been issued and promulgated placing
this $4,000 and all such deposits
throughout the entire Indian agen-
cies upon an interest bearing OASIS
Immediately put clerks to work and
Yesterday obtained a statement that at
this time there is $97S,226.05 on de-
post to the official credit of the su-
perintendents not drawing interest,
and that these accounts would aver
age one million dollars, or over, wnich,
at per cent per annum, will make
an Increased income of thirty thou
sand dollars a year to the Indians as
a result of my investigation and rec
concentrations in this matter. 1t is
difficult to say how much interest has
been lost in the past because OF these
large non-interest bearing accounts,
but it is perfectly safe to say that it
will mount up to many thousand dol
lars.
Obtains Settlement.
at might be proper for me to state
at this time that on my recent visit to
La Pointe agency, located at Ash
land. Wis, / obtained settlement with
one depositary bank for Indian money
to the extent. of $1,732.O5 for interest
on a certain special superintendent ac-
count in which the legal claim of the
government was very questionable
The bank had declined twice to pay
interest, but 1 presented the matter
in such manner that they could see
the moral obligation, and during my
stay in Ashland had a directors meet
ing and passed a resolution denying
any legal obligation to pay the inter
est but admitting a moral obligation,
which they regarded as of sufficient
Importance to make the payment,