Year: 1874

h"N Va lhlo uClAIChJlOI W ttS Ou tlC
ninth day of December, 1872. l
Immediately communicated all the
information | had in reference to it
to t. board of trustees, then in ses-
sion at the college. From an unfor-
tunate oversight in the trustees
which doubtless grew ont of the
fact that the treasurer was also state
treasurer, and that most of the
board were new members who,
coming into their positions as trus-
tees and finding him in custody of
the funds, doubtless continued him
in the position without suspicion,
and probably with the idea that the
two offices were in some way con-
.nected-it turned out that there was
no bond on file which is thought to
cover any portion of the time to
which the dcfalcation extended. A
committee of the board, however,
were authorized to secure indemnity
for the college losses as was then
possible. In the prosecution of this
object, although had but recently
become connected with the board
as ex-otlicio member, | gave them
such aid as was in my power. l
was fully cognizant Of the transac-
tions of this committee, and thought
then, and think now, that they acted
with good Judgment and with the
single motive to secure the college
from loss as far as possible. But as
this whole matter has been the sub
ject of an elaborate investigation by
the Legislature, l will not enter fur
ther into details.


A portion of the property for
which deeds were taken had been
previously mortgaged, and this, to-
gether with the rcvulsion in the mo-
ney market, has greatly embarrassed
the committee, and prevented them
from realizing a large amount upon
the property. There had scanned
to be studied purpose in some
quarters to bear or depreciate the
property in public estimation, and
to embarrass the committee in their
attempts to handle it, with view
OF obstructing its sale, and with q
hope in the end that it may sell for
comparatively nothing. In view Of
this fact, would it not be we'll for
the state, by appropriating suffic-
lent sum in addition to what they
have already realized upon it, to en-
able the committee to lift these
mortgages and thus clear the prop
erty Of membranes which now
embarrass its sale and diminish its
productiveness? If this were done,
| have no doubt it would make the
college whole in due time.


In connection with other proper
ty, l, 900 acres of wild land in Lyon
county was decided to the college.
1t is at present unavailable, but l
am told by Mr.. Noble, the Echair-
man of The committee, to whom the
care of this property was assigned,
that this land could be leased for Sc
per acre, upon the same terms as
other college lands, if the committee
were authorized to do so. | would
therefore suggest whether it would
not be good policy to confer upon
this committee such authority by
special law.


Before leaving this subject l
,,oul,I COLL ottoof,on ~ twn lnccopc
in legislation which seem to be sug-
gested by this occurrence-First:
1t will be observed that there is no
provision of law directory to boards
Of trustees, if from any other causes
they deem it necessary to proceed
against the treasurer of the funds of
the institution. The law provides
that in case the Governor believes
the public interest requires an ex-
animation of the books and accounts
of q state officer including the state
treasurer, he may appoint a com
mission of three competent account
ants to examine and report, and if
Irregularities are shown to exist, by
reason of which the State is liable
to suffer loss, he has power to sus-
pend the officer, and lie is directed
how to proceed by statute. 1t seems
to me that the trustees of our edu-
cational and benevolent institutions
should be directed specifically as tc
their duties in case one of their Of
ticers is found either derelict in du-
ty or to be proceeding in violation
of his trust. Second: In my judg-
ment treasurers holding public
funds should be restrained, by law,
from accepting the treasurcrship of
any other institution, public or pri-
vate. If the treasurer of the agri-
cultural college had not at the same
time been state treasurer, it is prob
able the temptation to use the col
lege money in his own speculations
would never have occurred to him.
But the opportunity to count state
fund in making his settlements with
the Board of Trustees doubtless
seemed to him so tempting, that,
taken in connection with natural
desire to try his hand in specula-
tons, it overcame the better i'm
pulses of his nature. l believe also
that county Treasurers should
neither be given the custody of
township or school district funds,
nor be allowed to disburse the rev.
enucs Of our cities. In this connec-
ton it would seem to me wise to
forbid directors and officers of
savings banks, incorporated under
the laws of the State, from accept
ing or holding like positions in 9TH
err banking institutions. The con-
nection of savings bank with the
Merchants National Bank of Du..
buque was doubtless one agency
which enabled the officer who was
engaged in the illegal use of the
funds Of the national bank, to so
long deceive the public and the
agents of the government as to the
true condition of that institution.
In fact, such law should apply to
all officers holding trust funds in
any capacity.


I call your attention also to the
fact that the law which fixes the
number entitled to admission to the
College from the several counties is
also very defective. AS it now