Capital journal. (Salem, Or.) 1919-1980, 1922-05-04
Hoff's Record


The candidates election pamphlet contains the following
statement in behalf of state treasurer o. Hoff who is
candidate for reelection to why he should he nominated
and reelected His oath of office is his only pledge His
record is your guarantee His experience is proec
on 1t is therefore incumbent upon the the
record that guarantee and the experience that is
your protection.
The last report Of the Industrial Accident Commission
shows 100000 has been marked off from the value
Of securities the Industrial Accident depreca-
tiona result Of investments made with the funds by
State Treasurer Hoff These Investments in questionable
securities Of reserved for widows and orphans
suited in grand jury investigation Of the state treasurer
office two exposing as great scandal
broke under the dome OF the capitol showing that the state
investments practically turned to corrupt bond
house. which was given virtual monopoly of investing
state funds by the state treasurer.
The grand jury, of which Gideon Stotz of Salem
foreman found that the state treasurer often paid for bonds
long before their issuance delivery and that the bond
brokers permitted to make extoonate profits at the
expense Of the state The jury reported
purchased Eheridge OF
@ n' % & t. M natSs Se @ 81 Of oRo sopa Of Of th par
vh n not od
@ S r @ 10 lars m ] D % the state n
Instead Of purchasing bonds the open market or
ouyg aecg niom muncnpalIea % ef sa 10 Saving tne stae m
Of his purchases through the bond house permitting
them to make excessive profits About this the grand jury
said:
profits
water bonds o. eedspor the state at the
26h
Of lts bonds issued s92s2oOO
ana, Hs5f 9a Tie Ss
''' Jays l'''' 80 issue
The grand jury severely criticised the fright apparently
given by state treasurer Hoff whereby Morris Bros Inc
Of which offered for sale by Morris Bros while
they yet held by the state treasurer The bond house
has authority sell any first security by the
state and substitute other security for it, leading the grand
jury to remark there should strings upon any Of
bonds purchased by the state of Oregon" Further, the
grand jury reported;
we condemn the policy Of state Treasurer Ho Of
buying bonds that high
% o ub nd @ W d Sy 3 m s should % npp
use much intelligence the investment
Attached the grand jurys report and made part of
it. was the auditors report of the investigation made of
the books of bond house. which revealed the
fact that during the first month Of Mr. Hofs admnistra
tion l. G. Hun, who filled the office of deputy state
surer as appontee Of Mr. Hoff paid commission by
Morris Bros Inc for bonds purchased by the state To
quote this report:
on January p 1919 s5s26O was by with
the foovns s
%issqg "a OF q
Bros Inc tha s waa ny a a Esn'e m # &
aa tame Deputy stae % T5sanre n on sale those bonds to the
sion account the books
charged February s. 1918 by
so@non sSe2 the
to the State Of Oregon /.
After the adjournment of the legislature Representa-
tive j. G. Richardson succeeded Mr. Hun deputy trea-
surer and practically all of the state reasurers bond
mess turned John L. Eherdge of Morris Bros
Inc who invested the state funds in whatever security at
whatever price he desired and reaped fabulous profit
the state treasurer apparently caring the security
as long as the interest was at high rate L.
AS result of the expose the grand jury recommended
the taking away from the state treasurer the right Of in
vesng state moneys and the placing of it with the state
board OF controa recommendation enacted into law the
next session OF the legislature Mr. Hoff and not
accused of dishonesty but his competency challenged
Ihe conduct OF his office has demonstrated his lack of
business acunen. G
Iql
In the argument for his reelection, Mr. Hoff praises
hmsef for increasing interest earnings of the in his
charge For this OF course he is to be commended but
Iesun eoes not oegln TO offset the loss tn