Montana labor news., 1932-06-30
CASH SLIPS In THE SAFE
BY H. N MAURY.

In the issue of the Butte Daily Post of June goth, appears al article
intended to deceive the people of the state as o the condition of the State
Brandjord, while stating facts concerning the State Educational Fund, ar
rays the figures in a way to deceive the casual reader about the condition
of the fund. The title of this article is "Assets of State Fund Set Record"
in very large print. The subhead is "$61,OOOO00 Total Highest in History"
The actual condition of this fund is rotten. The cash in the fund has
been dissipated and impeachment proceedings would be in order if Montana
were alive to the condition and the persons responsible for it holding high
office were not pets of the absentee landlords who III Montana.
Analysing the figures submitted by MI. Brandjord, it is seen that he
calls 4225,59592 acres of land, valued at $40 per acre, a part of the fund.
This would take from the socaned sixty-one million dollar fund, s42255,
9592O. The land is not a fund. The Northern Pacific owns four million
acres of land in Montana, assessed for taxation at a sum nowhere near $40
per acre. Nor are the lands of the state worth Oh an average in this year
as much as IS per acre.
AS a part of the fund, Mr. Brandjord lists land sales, contracts, farm
loans, amounting to S4,274,12962. The amount of these that are in de-
fault, and have been in default for moret than two years is not given by
the commissioner. 1t is fair to say, judging by the condition of these
loans two years ago, that persons owing more than onehalf of this have
not made a payment on principal n interest in two years. The state will
finally be required to take back these lands for the balance unpaid.
The item, United States Securities, $9S9,sOOOO, is in excellent shape
tate Donds S3l455l5 is not IN good shape because the state is running
behind n its expenses, the income is not sufficient to meet the lavish dis
bursements of the Erickson administration, and in spite of the efforts of the
Erickson administration for the last three months to sell a million and a
half Of new state bonds, there have been no purchasers.
The item on investments in county, city and school district bonds, s5624r
BOLTS, is possibly in reasonably good condition, though if they were lqui-
dated IN the open market they would not, all Jumped together, bring four
million dollars.
The item, cash with the state treasurer of S2458sO2z may or may not
be in good shape, dependent m whether the Minnesota bankers who run
the Marlowe merger and who have the handling of much of the state moneys
arc solvent o insolvent. The rottenest item in Brandiords bluff is State
General Fund Warrants, $246s,2S6O6. This is just a plain, everyday breach
of trust and swindle. It is a method, illegal under the constitution, used for
the purpose of paying the Helena state office holders out of trust funds.
1t is the old story of the trustee, who justified his breach of trust o the
statement that whenever he distracted any cash for his own private uses,
out of the trust funds, that he always left a slip showing how much he got.
The statement Of Brandjord completely confirms the statement made some
time ago by Senator Tom Kane of Ravali county, that the public school
permanent fund was being looted by the Erickson administration. The
mate two and one-haf million dollars. F.. Z" Williams, the treasurer, and
George P. Porter, the auditor, should have refused to permit this when the
first warrant of the two and onehalf million dollars thus cashed n the
educational fund was offered for a part of that fund.
No jury acquts lei of embezzement IN their own statement that they
did not intend to steal the trust funds on the claim that they always put
in a cash slip to show the amount taken out and used by the trustee about
his private business.