American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1915-02-18

against the sureties and the bank, but
during the tendency of the action.
and In the course of its prosecution, a
compromise was entered into by the
terms of which tho claim of the state
against the Bank Of Nampa was re-
leased and the sureties alone were
looked to for restitution. This COM
promise was affected on the part of
the state by Attorney General Peter
son.
For such compromise and release
of the Bank of Nampa, we find no pre-
else warrant in statute law. We
adopt, however, the reasoning OF the
attorney general, that the state hav-
ing entered the business of loaning
money, must, as n necessary conse-
quence of such step, have invested
some state official with authority to
make settlements or compromises in
cases where full payments to the state
by a depository debtor. could not be
secured, and hat the state official in
vested with such authority would
properly be the attorney general"
Take No Inventory.
BY this compromise the surety com-
pany and William Strobe paid the just
proportion of the bond, and c.. r.
Hickey and George Duval gave notes
to cover their bond, secured by per-
sonal and real property, which was al
ready mortgaged and in some in
stances two prior mortgages on the
same property. At the present time
the state has realized S4150 on the
Duval security. No inventory of this
property has ever been made and 1t
is said to be doubtful whether much
more will be realized from II.
Continuing, the report says:
your committee is of the opinion
that the attorney general showed due
diligence in investigating the assets
subject to the states demands in this
matter. but that he used careless,
loose and slack methods in securing
to the state such property as the sure
ties had.
Your committee recommends that
this house suggest to the attorney
general that he proceed at once to
cause to be made an inventory of all
property that is subject or may be
subjected to the claim of the state.
and to be made by personal inspection
by the trustee or some other person.
Would Act on Bond.
Your committee also offers for the
consideration of the attorney general
the question that in case such inven-
tory show an insufficiency of proper
ty to pay the claim of the state In
full. whether or not the fidelity bond
is liable for such deficiency, and If
such bond is so liable that he be re-
quested to proceed at once to enforce
this liability.
"Your comittee further recon-
mends that all published statements of
the state treasurer be required to show
the following:
"First-the names of all banks that
have qualified as state repositories.
"Second-Amount of state money In
each depository bank.
"Third-Amount and description of
bond furnished by each depository
bank.
"Your committee further recon-
mends that a more thorough and mod
ern system of accounting be installed
In the office OF the state treasurer at
the earliest possible date"
The report is signed by all mem
bers of the committee. on which are
five Republicans and two Democrats,
as follows: MCGOWAN, Latah; chair
man; Shattuck. Bonneville; Gilchrist.
Jefferson; Randall, Neg Perez;
Koelsch, Ada; Cannon. Gilmore; Faris.
Twin Falls.