Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-06-02

finance board with a deposit Of $50 900,
and this amount was increased to $780,
600 during the McCray administration.
4 Am not running the bank at Kent
! land now myself, but ! will say that
we have capital and surplus cf S140, 900
. and the States funds there are amply
protected by bonds, too," Governor Nc
Cray said
Mr.. Van Nuys failed TO state, as ne
did about the deficit Of the general fund
repQyments, that Withdrawals had been
made from the kentland bank.
The amount now on deposit at the
| Discount and Deposit Bank Of the States
money is 100000 the Governor said.
The Governor said he did not under
stand how the Democrats arrived at the
figure Of 81 go mile upkeep cost Of
highways under the State highway COM
mission, as charged by Van Nuys, but
said that he was going to look into the
matter.
When asked about the charge Of Mr.
Van Nuys that canvas sent to the State
highway commission by the War De-
partnent had been sold, Governor Nc
Cray said:
I'VE received a car of canvas and sold
1t and the money was turned in to the
Stats highway fund"
Mr.. Van Nuys IN his speech said that
the material had been put on the mar
ket at figure far below what Indian
apolis tobbers said they could buy It.
BANKS MAKE GOOD
THING OUT OF FUNDS.
The State receives interest at the rate
ef per cent on deposits, while the banks
charge at the prevailing rate Of inter-
est making the handling of the States
3tob 10 hYc WIZ
which are fortunate enough to obtain the
use Of State money. The low rate Of
| interest is accounted for by the fact that
the State Is continually disbursing large
sums and most Of the money is supposed
to be available for immediate usage For
this reason It has been the practice of
the board of finance TO make the largest
banks the largest repositories and strong
Indianapolis financial institutions where
large amounts could be withdrawn on
short notice or no notice at all, were
made repositories for large sums.
William G. Oliver. auditor Of State. de-
clared he opposed the practice Of using
the State board of finance for the advan-
tage OF an ofTlceholder. Mr.. Oliver was
the only member Of the board not un-
farcrably criticised by Alr. Van Nuys
in his speech.
FRANKLIN BANKS
GET SMALL DEPOSITS.
Mr.. divers home is at Franklin. where
he was formerly mayor He said that
when he became auditor requests for
State deposits were made on him by the
three banks at Franklin. in none VI
which Of which, he said, did he own a
dollars worth Of stock. He said de-
posirs OF So, 600 were made IN each of
ir'e Oh baI had
deposits Of the State before. He said
one of the three banks he did not do any
business with. but was determined to
treat them all alike. He said the amounts
allotted were not excessive and were
fully protected by bonds.
Ora Davies. treasurer of state, was ac
cused by Mr.. Van Nuys as being re-
sponsible for the increase of the de-
posits OF the Farmers Trust Company
Of Kokomo from 10000 10 $4,000. Mr.
Davies has no financial interest in the
Kokomo Institution. Mr. Van Nuys said
the bank befriended Davis when he was
short in his accounts as Howard County
treasurer.
In view Of the attitude of Mr.. Oliver.
who declared that he did not favor the
practice Il was said that the Governor
and treasurer constituted the majority
which acted In the cases pointed out by
Mr.. Van Nuys.
GOODRICH CROWD
SETS EXAMPLE.
The precedent of the Goodrich admin
fstration was set forth as reason for
the course followed by that of McCray.
It was charged that Governor Goodrich
was financially interested in several
banks which held large deposits Of the
States money.
Ben H. TrhaIing, deputy State treas
urer, declared the same methods were
used by the Democrats. He said that
during the time that Dale J. Crittenber
ger of Anderson was auditor Of State
the banks of Anderson were made depos-
itories for extremely large amounts OF
the States money. With the election OF
Goodrich and Republican treasurer and
auditor. the Anderson banks were re-
1leved Of the biggest part of their State
deposits and the money transferred else
where, he said.
When the Goodrich finance board took
this course, Crittenberger and Edward
c. Toner. twice candidate for the Re-
publican nomination for Governor, came
to Indianapolis and insisted that the An
dersop banks be used as the depository
for large amounts Mr.. Jrbahns said.
Another practice which grew up, ac-
cordfng to one official. under the admin
istration of the Goodrich board of finance.
by which bankers and banks throughout
the State were required TO buy stocks
ind bonds for which members of the
state board of finance acted as agents. or
else turned down requests for State
money to deposit in their banks.
When the present auditor of State went
onto office he said reports began COM !
1f ha al
he could not countenance. He refused
TO say who the officials were who. ac7
cording to his reports, We're guilty Of
holding club over numerous bank Of
ficials throughout the State.
HAD PINT OF MULE.
NJ. wyant barber 1923 East Ohio street.
was fined $50 and costs in city court to-
dav hy Judge Delhert O. Wilmeth for