The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1924-08-01
COUNTY TREASURER OLSON REFUTES
CHARGES OF PUBLIC EXAMINER
Continued from page y

them to the purchaser upon the receipt of the
purchase price. The treasurer's duty in this
respect is purely ministerial. He has no dis
erection in the matter, all discretion with
ference to issuance, negotiation and sale of
bonds being vested in the board of trustees"
After quoting several decisions IN the matter 1t is
further concluded:
THAT the board of trustees had authority at
the time the bonds in question were sold, to
contract to pay and to pay commission for
the sale Of the bonds, including attorneys
opinion to the legality of the issue and 9th
er incidental expenses, there can be little
doubt
And further on:
"While some criticism may be directed to the
board of trustees for entering into contract
10 pay a commission, the amount of which
not definitely determined and dependent
upon the amount of accrued interest at the
date OF delivery of the bonds, THIS is
TY TREASURER, his duty being limited to
the registration Of the bonds and the cOIec-
ton OF the purchase price, less any commits
SIGN which the district agreed to pay in
nectiOn with the negotiation and sale of the
bonds, and it also follows THAT THERE CAN
BE NO LIABILITY ON THE PART OF THE
COUNTY TREASURER IN CONNECTION
WITH THE BOND ISSUE IN QUESTION OR
ANY OTHER SIMILAR ISSUE"
ct is to be noted in passing however that the
law has now been amended to prohibit
the payment Of brokerage, legal or other fees
OF commissions of any kind in connection with
the sale of school district bonds so that the
authorities hereinbefOre quoted have appl
cation to bond issues negotiated subsequent to
March ist 1925
From the above it may readily be seen that no iabi
y rests on the county treasurer in connection with the
item OF $4,000 1t would be fully sensible to
prosecute the liquor Dealers who operated under license
previous to the enactment of the eighteenth amend
ment, under present prohibition laws or the old
Fa3chers fof violation OF our recent herd laws.
Commenting on the third item, consisting of checks
cashiers checks ETC., taken payment of taxes orig
lnal tax receipts in the Office amounting to S3728 %
the county treasurer asserts that liability rests on
him or bondsman for those items. These were
checks received last fall in payment of taxes The
county treasurer accepted these checks subject to col
lection holding the original receipts pending payment
The banks on which these checks were drawn closed
Of hpckC and bnfOr c1oo
ance possible Therefore no final collection has
been made, and the original receipts held by the
treasurer.
No brief has yet been drawn in this matter but the
county treasurer has consulted legal authorities whose
conclusions are that no matter whether receipts have
been issued although the records might erroneousv
show payment the fact that the county had not receiv
ed na payment would protect the county in it's rights
under the tax laws. The main contention of the law is
that where no payment has actually been made, such
tax is still due and payable to the county And where
tne county IS protected no liability rests the
y treasurer for the non-payment of taxes
In the matter OF the fourth item in the report
amounting to S23I0O, even the state examiner admits
that this item was taken of during the course of
his examination AS matter of fact it taken care
OF Immediately after Mr. Dryer had counted the cash
and tabulated the cash items. Such being the case
what does the liability consist of?
IN the matter OF protest fees of S1275 this is mere
~ an item to be transferred to the petty cash account
The item OF S1225O is interest and protest fees on
a draft which drawn the late Sheridan County
State Bank in payment of county warrants and which
draft the said bank refused to honor although the bank
at that time open and under the supervision Of the
state Examiner who is also the Examiner of State
Banks which draft eventually had to be paid by the
county treasurer out of other funds together with in
teTest and protest charges It is apparently proper for
bank TO refuse to honor drafts drawn on accounts
therein and such procedure is seemingly approved bv
the State Examiner but when county treasurer paws
the charges incurred due to the negligent enforcement
OF the banking laws he is Immediately liable and it is
commanded by the negligent State Examiner.
that ne pay this out of his pocket or that his
6ondsmen do The county treasurer is holding srf-
6clent AMOUNT Of warrants, pledged to him by the
sheridan County State Bank security, which will
more IMAM take care OF the principal amount of the de-
post interest which may have accrued and also the
item referred to above
The item of S28.53 referred to in the report is flo
ment out OF the mind of the Examiner without any
foundation in fact The Deputy State Examiner adj
mtted at the time of the examination that he could
not account for it, and that apparently was an error
IN tabulatiOn. But evidently the State Examiner found
shortages. F-f ~
In concluding his report the State Examiner states
mat the examination did not dvuge any transaction OF
personal benefit to the county treasurer The cou1v
treasurer really sympathzes with the State Examiner
that the opposite was not true. How much easier his
Sk would nave been in that case. No iusory charges
OF shortages Which eventually boora