The Washington times., 1936-02-26
0USTED STATE
OFFICERS TIE
UP FUNDS
Next Move in Tanele Is
Awaited Uncertainty
By Both Sides
By WILLIAM J. GOOD

maze Of legal technical1t1eS, this
State awaited anxiously today for
the next move on its financial
chess board.
Nor was anyone right certain
just which player should make
the next move, as attorneys, bank
ers, State officials and even the
postmaster, knotted their brQwS
in deep thought as they sought
answers to the questions Of who Is
the real State treasurer and who
has the rightful claim to the comp
troller.general'S office.
Funds Stil Tied Up
J. B. '"Tobe" Daniel, backed by
Governor Eugene Talmadge, who
is seeking to run the State with
out an appropriation act, held pos
session Of the treaSurer'S office
and its huge vault, but early today
he had not yet been able to open
the money compartment IN the
vault and he still was unable
to get his hands on the State
funds which George B. Hamilton
had tucked away In the States
depositorieS before being forcibly
elected from office.
q. B. Carreker occupied the
comptroller generals chair, but
the ousted william B. Harrison
warned oil companies and other
heavy taxpayers that they would
pay their taxes to Mr.. Carreker
at their own risk.
This strange mix-up in the
States financial affairs followed
the ousting Of Mr.. Hamilton as
treasurer and Mr.. Harrison as
comptroller general because Of
their refusal to countersign q
warrant for 1896 operation Of
certain ellemosynary institutions
and the appointment Of Mr.. Dan
iel and Mr.. Carreker by Cover.
nor Talmadge as their successors.
Showdown To BE Forced
That a showdown in the issue
will be forced within the next
day or was considered prob
able. The de facto treasurer IS
virtually devoid Of cash, and just
what luck he will have when he
attempts to cash State warrants
or collection checks was a mat
ter Of much conjecture.
The State repositories have
made no announcement as to
whether they will cash such war
rants and checks, but reliable re-
ports were that the repositories
operating through the Atlanta
Clearing House Association would
refuse them.
Such action on the part Of the
banks is certain to prompt re-
taliatory measures from Cover
nor Talmadge, either in the form
Of court action or an attempt to
sell the securities deposited by
the banks with the State Treas
ury as surety for the States
funds.
Having foreseen such action as
q possibility, however, Mr.. Ham
ilton removed the securities from
the treasury before his custer
and deposited them In the vaults
Of the Federal Reserve Bank.
Warning the repositories against
caShing the State warrantSl
signed by Mr.. Daniel, Mr.. Ham
ilton assured them there was no
danger Of their securities being
sold.
Friends Come to Aid
Uheyo RRr naoiAl tnnlr oveT thu
treasurer's office the moment
Mr.. Hamilton was elected, he
found not 50 much Is q penny
in the cash drawer, but yester.
day three State agencies favor
able to Governor Talm d 6
turned into the Golfers Of the
State approximately half q mil
lion dollars in collections. but
most Of that was in checks.
Only . small portion Of the
funds turned in yesterday can
60 into the general fund.
Just what the de facto treas
urer will find in the Treasury
vault, when and II he succeeds
in opening it, is known only
W t14C OOE2OCN V0A 4A0AAAAVO4AS "AAV
set the time lo tx for 80 hours
ahead before closing the door.
LockSmiths were called in yes
terday In an effort to open the
vault, but after hours Of effort
announced they could not work
the combination. Blow torches
were brought into play. and last
night, after burning holes through
several thicknesses of steel. they
were able to open the outer door.
However, another locked steel
door remained between them and
the inside Of the vault.
May ImpOund Mail
Meanwhile, Postmaster Lon
Livingston was in a quandary.
Mr.. Hamilton and Mr.. Harrison
have directed that mail addressed
to them as treasurer and comp
troller-general, respectively, be
delivered to them.
Should q complaint be forth
coming from the state admins
tration, all nail for these two
offices will be impounded pend
ing q settlement Of the issue by
the courts, Mr.. Livingston said.