Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-08-27
Treasury0f
NebraskaIs
Not~Broke"
Cropscy Says State Has Over
$1,000, ,000-Denies Pique
Caused Letter to
Governor.
Economy Is Necessary

Lincoln. Aug, 26.-(Spccial.) ID.
B. Cropsey, state treasurer denied
today that pique over the refusal of
Governor McKelvie to sanction in
creases in salaries OF certain employees
in Cropsey's Office at a time when
many salaries were being reduced
had anything TO do with his action
in writing letter TO the governor
while the latter was out Of the city
and releasing it to a democratic
newspaper ,two days in advance OF
the governors expected return TO
Lincoln.
'Oh, no." Cropscy said today. the
governor feels that he was acting
within his rights under tho budget
law in refusing the increases"
AT the time the refusal was made,
Cdopsey was reported to have threat
ened to 60 into court with a man
damus petition to force the salary
increases. However. this has not
been done.
State Not Broke"
The letter published Thursday
forecasted that it might be necessary
10 issue interest warrants for state
expenses for montl, or two,suntil
the winter taxes began piling i'll.
Today. however. Cropsey stated
that he believed that such proceed
ing could be averted and admitted
that every year about this time, when
the appropriations of a legislature
become due and the big tax collec-
tions are not due until the following
winter. that the treasurer has a for
lorn appearance and more or less
economy is necessary. Cropsey de-
med the state was broke" and again
stated that there was more than
Sl,00O,0OO in the treasury today.
George Johnson. state engineer,
smiled when he was asked ii cur
tailment of road work in Nebraska
at this time would keep any more
dollars in the treasury during the lean
months from now until winter.
I'VE could cut out the convict
road work and save the cost OF main
tanning the convicts in the road
camps" Johnson said. ''But as for
forcing contractors to quit now in
order to keep the treasury filled, it
won't do any good, as in every con-
tract which the state has made there
is proviso that no money shall be
paid the contractor from the state i.
treasury until the appropriation
money for that specific bit OF work
is there, and that means they must
wait until winter, when the tax
,money will, begin coming in."
Explain Situation.
Phil Bross, secretary OF finance
and revenue, explained the situation
as follows:
such conditions viii continue Until
the end OF time and continue to grow
worse if Nebraska continues to grow
and expand unless the legislature
does one OF two things-either
change the time for collecting taxes
SO that it will dovetail with the time
when legislative appropriations be.
come due or create sinking iilnd
TO take off the drain during the lean
months.
The appropriations all beccme
due either before or OH July 2S,
while the tax money is not due until
this winter, aud as the state grows
it is a natural sequence that appro-
priations must keep pace
The method which must be par-
sued to keep from issuing interest
bcarine warrants is 20 draw irom
funds which have balance.
This, it was stated today, always
has been the custom during lean
months, and. if departments watch
their financial steps the need of is
suing these warrants can be avertcd.