Daily capital journal. (Salem, Oregon) 1903-1919, 1914-01-27
Court Holds State Suffered
Nothing by Reason of
Handling Money.
DIFFERENT If
STATE LOST MONEY
Then There Would Be Grounds
to Sue for Amount, Says
Judge Kelly.

Holding that the state of Oregon
suffered no loss by reason Of the irregn.
lar manner in which the state board
handled the penlientiary revolving fund
Judge Kelly this morning sustained
the motion 70: Judgment in the case
of the state against Governor West,
Secretary Of S;ata Olcott aud Treasurer
Kay and ordered the suit dismissed.
In rendering nio decision Judge Kel-
by held however, if the pleadings had
shown that the state had lost or been
injured on account of the revolving
fund having been used irreguiarly, the
defendants would have been at fault
and that judgment would have been
awarded the plaintiff. Or, declared the
court, had there been any felonious
motives shown in the use of the funds
the state would have been entitled to
recover. Sufficient evidence was shown
by the defendants to convince the court
that the state has not been injured in
any way and that while the funds were
handled in an irregular manner, the
state has no grounds ON which to base
an action for recovery for the reason
it has not been relieved of anything
Crawford Blamed.
1t was strongly limited today that
Attorney.General Crawford has been at
tempting to use the lawsuit as a club
with which to knock Governor West in
the event the latter announced himself
as candidate for reelection. 1t was
said that the attorney general purpose
ly delayed the final hearing of the case
by holding up his answer to the de.
PENDANTS reply hoping to tide the mat
ter over until after the primary elect
ion in May
These charges were made in open
court when the motions were argued by
Nouuhel loT the plhihtlllF'
What Court Said.
The court said in deciding the case.
@'The view the court entertains on
these motions is that where there has
been admitted by the reply an affirma'
tive Defense if such affirmative dc.
tense constitutes complete defense to
the action as set forth in the complaint
il would be proper to enter judgment
upon the pleadings for the defendants
"The allegations of the complaint
which the attorney.general has called
the court 9 attention as being put at
issue are either allegations Of conclu
sions Of law, or an allegation of dam
age, which is refuted by the affirmative
matter set up in the answer which af
firmative matter is admitted, applying
Of course, lne view Of this court to tht
question Of the measure Of damagos
which should eoatrol the case
Measure Of Damages
IL is the view Of this court that th'
measure Of damages in this case would
be the difference between the value Of
the services and the property obtained
by the use Of the funds in question ant
the amount Of such funds used, and th'
allegations Of the further and separate
answer are to the effect that there I
no difference, or that the market valri
was the amount paid and that the prop
.erty could not have been obtained TO
less and that Il was necessary TO oh
tain the same in order to maintain
public institution, and for that reaso
II is the opinion Of the court that th
pleadinqs disclose that no damage ha