The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1914-12-24
GOV. HAINES DEFENDS HIS
COURSE in THE ALLEN CASE

merry question has two sides and
~ policy of the Enterprise has and
Mays win be to give our readers as
hear and concise a view OF public
fltirs as we can.
Our issue of November 18th contain
a summary of our opinion as to the
atses tor the results in the state cleo
ton. We said:
.frhe recent elections IN Idaho dem
nstrated one thing clearly; that the
hl5lic viii no longer stand for the
E1d~fashioned practice of white wash
lnH public servants. Governor Haines
VS. defeated. not so much by Moses
kIexander, although that gentleman
4 very popular. nor by his promises of
III deduction, for the public in meas
fre doubted them, they were too good
d be true, but the fact that Haines
ln<w. as early as May, of the Allen
Dan and that the matter was hushed
ID by him, demonstrated to the peo-
he that Haines was not the type. Of
lnan who should be trusted with the
Management of the affairs of the
ltate.'
The article was quoted in a south
laaho paper, and through a typogIaph-
eaI error, the word loan was omitted.
Fhis came to the attention OF the gov
rnor and our attention was called by
i'm, to the supposed untruth of the
katement, Mr.. Haines taking it for
Iranted that the omitted word was
Iefalcations instead of loans. To this
ktfer we replied. giving the original
kusuage Of the article and stating more
oncisely our meaning of some of the
aragraphs.
gTJnder date of December 4th the gov
rnor replied, setting forth his posi-
lon in the transactions discussed. and
d be fair, we feel we should give the
etfer to our readers.
Mr.. Haines says in part:
*There are two things that / have
tudiously kept in mind during my
ADMINISTRATION as chief executive OF
ne state OF Idaho. One was to avoid
ne policy of playing to the galleries
or& cheap notoriety. and the other was
sot to shirk any responsibility that con.
Silently devolved upon me. / wish to
cake this statement in advance of dis
uasing some statements made in your
sitter and particularly the subjects re-
erred to in the following:
t*<Please note that / did not say the
Knen defalcations,s nor. did l say thai
ou were not a man to be trusted
tut l did say that you exercised only
assive honesty earlier than at the tims
II the Allen defalcations and 1 fee
ure that you were not defeated by
he Allen Declarations but by the faci
hat you and / and everyone else whe
eads the dailies, knew of the loans
rom sick banks to Mr.. Allen and we
nav before the primary election o.
he loans from the state school funds.
Now, let us take UP first the loans
rom sick banks to Mar. Alien Per.
nit me to say that while there were
samors of such loans 1t was an entire
different matter to locate them
There was a rumor that when the banl
ii Nampa failed, Aliens note was fount
among the papers of that bank. Thi'
wae true only in part. Mr.. Allen .dit
not have the loan directly with thu
bafEk but did have loan with al
Nf<fial of the bank, who was treasurer
Tor some concern. The transaction
was however, entirely covered up 81
lar as the investigation of the state
5ank examiner was concerned and sucl
las been the case in every instance
hal has been called to my attention
I was not a matter which was discov'
nable unless the bank officials direct
Responsible cared to expose the mat
er, while they were naturally interest
d In doing the opposite, and therefore
here was no evidence before me upor
vhfch to base my action, either ID
ectly or indirectly.
II was suspicious of Mr.. Allen from
he time he placed Fred M. Coleman
a his department as deputy state treas
lrer, but mere suspicion does not con.
titute a basis for action. You speai
I certain matters being common ru'
aor away back in May. 1914. Permit
ae to say that as far back as Oclob.
r. 1918, a few months after / became
opernor of this state, / took step:
hat Il believed would preclude the pi OBJ
bliify of Mr. Allen receiving any un.
ue favors from banks. l first secured
statement as. to the state moneys de.
osifed in the various banks of the
tate, for the purpose of ascertainine
fhether or not any bank was undulS
avored / found that there were four.
cen banks in the state carrying de.
osits of state funds considerably II
xcess of the amount that they wert
resumed to carry by law, and 1 i'm.
treasurer Allen, requesting him to re
uce deposits in these banks and equal
;e Them among the various banks o.
AZ state. This he proceeded to do
" breaking up this practice there
soR1d be no incentive to banks grant
lg him a loan, except under the usua
lies of business.
NOW, of course, the public knew
ot(hing about my efforts in this direc.
on. Had / given to the press a state
tent that the state treasurer had
sen ordered to reduce his deposits n
hy one of these fourteen banks. Il
ould have aroused suspicion at ones
"a possibly caused a run upon thx
ank and no doubt would have result.
IN the breaking of several banks
it11 perhaps dire consequences Il
any others. due to the lack Of conf.
snce that such failures would brinl
oo1t. Had I desired to play to ths
aiIeries with a view of advertising Il
le public that / was doing something
hoxa f.ronnh4 oh1,,4 4,.Cf s,sof