Douglas daily dispatch., 1927-01-18
S5OO,OOOBANK.
Loss Of STATE.
CARRIED CASH.

PHOENIX, Jan. 17.-[P)-Five hum
dred thousand dollars of state money,
Involved in defunct banks in Arizona,
is carried on the books of the treas
urer as cash, j. C. Callaghan, state
treasurer, told the senate today He
asked that the legislature authorize
some remedy therefor"
Because the state board of equaliza-
tion must take this amount into con-
sideration in making up the tax rate,
the levy set by it does not provide the
money necessary to run the govern
ment and the state each year has to
issue and pay interest on more tax
anticipation bonds than it otherwise
would, Callaghan later in the day told
the house banking committee.
Callaghans letter to Senator Akers,
Maricopa county, chairman of the.
banking and insurance committee,
said that fact that the $5OO,OOO worth
of practically worthless paper is car
ried on the books as cash creates "a
situation which, in our opinion, the
legislature might well consider with
view to authorizing some remedy
therefor He characterized the sit
uation as being serious and costly"
The department, he told the house,
committee, has been able to collect
only $4,000 of the money on deposit
with the Central Bank of Phoenix
amounting to $500, ,OOO-when that in
stitution failed, and the assumption is
that the remainder of the paper sup
posed to be our security is worthless"
Interest on bonds issued the state
treasurer were estimated at betweent
$4,000 and $4,000 annually, and au-
thority to alter the book showingt
would enable the tax equalization
board to change the levy to provide
the state with ample funds for carry
ing on it's business AT the same time,
he added, giving authority to the statel
treasurer to erase the non -existenuI
cash off the books would not preventI
the state from collecting the debt if it'll
ever proved to be possible.
In the words of Representatives
Brooke, Yavapai county, the house to-
day didn't have much else to do butt
talk The, senate, too, seemed rather
disfnclined to work, while the warm
sunshine, invited the Legislators out !
side. Resolving itself into commit
tee Of the whole, the house this after-I
bills authorizing municipal levy for
ths organization and maintenance off
banks-by Representative Wisener ofl
Yuma county-and providing for thel
exemption of certain classes of peoplel
from jury duty. Both bills were sentI
to the committee on enrolling and en-
crossing after being given affirma-
tive votes by the committee of thel
whole. The jury duty bill had beenI
introduced by Coxon of Cochise county
The senate adjourned before noon toll
allow conferences between the joint
highways committee and members oil
the state supervisors association, hereE
to consider road problems from al
county standpoint Senator Jones of
Maricopa county read his committees
report of his own Colorado bill, amend
ed to provide for a permanent river
commission of ten members whose ex-}
penses would be betrayed by an ap-l
preparation of 100000. The bill orig
inally provided for a commission of
seven. AS amended, the governor, the
speaker of the house and president of
the senate would be members of thei
commission and the remaining seven
CONTINUED on Rage Eight)
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