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GOV.HOLWB
TELLS ALL ABOUT EX TREAS
URER BARTLEY S BONO.
REEKING IN CORRUPTION.
HOLCOMB ACTED CAUTIOUSLY,
AND DID HIS DUTY WELL.
Had Conspiracies of Public Plun
derers to Contend with on all Sides
A Fearful Condemnation Which
Is Fully Warranted by Facts
Known to All Men.
To the Citizens of Nebraska:
Smarting under the defeat suffered ty
them at the last election, disgraced and
humiliated In the eyes of all honest peo
ple because of the startling disclosures
and Indisputable array of evidence con
stantly being brought to light, showing
one continuous revelry of fraud, cor
ruption and extravagance In ofllce by
those put forward as their representa
tives and entrusted with the manage
ment of the affairs of state, the man
agers and ring leaders of the republican
party of Nebraska have adopted a policy
of guilty silence as to the wrongs com
mitted against an outraged people, and,
with the instinct of the guilty whose
pockets are lined with Ill-gotten gains,
have raised the cry of 'Stop, thief:" to
distract public attention from their own
grave offenses, hoping that in the
confusion ttuy may hide from public
gaze and soorn their long train of evils
and escape the condemnation of the peo
ple, which they ho richly deserve.
Their position Is: It Hartley go; let
Moore go; cover up all the fraud and ex
travagance which la being brought to
light every day; let the guilty parties
who have been entrusted with these im
portant affairs of state and have proven
recreant to their trust go unwhlpped r f
Justice; give us liarrabas, but crucify
Holcomb.
CAMPAICN OF LIBEL.
Quallf catlcns For a Present Day
Republican Politician.
In order to carry out this ingenious
plan of distracting public attention from
the real Issues now before the voters,
theBe astute, unconscionable defenders
of republican faith and practices have
engaged In the most disreputable meth
ods ever employed In any campaign In
this Btate, or perhaps in any other. They
have made it a campaign of libel, slan
der, falsehood and deceit, such as prob
ably has never before been witnessed
In any political contest. The person who
Is the greatest stranger to truth, hon
esty and fair-dealing; the person who
can utter one falsehood after another
with the utmost abandon and reckless
ness of character Is the one seemingly
who has the highest seat In the councils
of the party and the most potent voice
In the conduct of the present campaign.
In HTir with ttita policy ttxi oumraittM
On resolutions at the republican state
convention, reported a resolution, with
mock virtue and feigned Indignation,
condemning certain republican ex-state
Officials whose wrong doing had been
thoroughly exposed and the proof there
of made so complete and overwhelming
as to require only the formal Introduc
tion In court to establish the fact Judici
ally. And the resolution went further,
saying, "We condemn the governor for
falling to exercise his prerogative in
requiring the treasurer to make an ex
hibit of and account from time to time
for the publie funds In his custody and
by reason of this palpable dereliction of
duty he cannot escape his share of the
responsibility for the treasury defalca
tion." I can readily understand how a
resolution of this kind reported to the
j convention would be adopt-d without
.discussion or Inquiry, and of the acll in
'of the convention I have no comment to
I make. But to the committee who draft
j ed and reported the resolution I charge
jthat there was no truth In the portion
Just quoted, and no sufficient foundation
in fact for its creation; that It was in
tended to deceive and for the purpoa.j
Of shifting the responsibility from the
republican party, where it rightly be
longs, to myself, who In no way, by any
fair construction of the facts, am charit
able In the least with any responsibility
CHAMPIONS OF CORRUPTION.
Character Sketch of the Republican
Platform Committee.
for this shortage or any part of It. These
facts must have been known to this
committee, and 1 will not presume that
they were too densely ignorant to un
derstand them. Iiok at the personnel
of that committee moet of them men
who have been the especial champions
of republican policies of extravagance,
corruption and boodlery; defenders Of
olllclals who, entrusted with the dis
charge of Important public Interests.
jhave failed to measure up to the respon
sibility Imposed upon them; men who
have stood sponsor to the official In
tegrity and official actions of those same
men whom they are at last compelled
by public opinion and force of clrcum
stancts to condemn. One of these dis
tinguished promulgators of republican
belief wns In his paper taunting the pop
ulists of Nebraska over their alleged
chagrin because Mr. Hartley was ac
counting for and would account to his
successor for all moneys he was charge
able with, when at the very same time
Mr. Hartley was short and was unable
to produce the funds which he should
have had as state treasurer. Another
one much later arraigned In the most
bitter tortus Judge Haker, who presided
at the trial of Mr. Hartley, for thu man
ner In which be conducted the trial,
when to every fair-minded man the de
fendant's guilt was beyond controversy
or cavil, and all that was required was
iha nrrtinl Introduction f if the testimony
as to facts already within the knowl
edge of all wvll-informed men In the
I tat. f-'uch are the men wh' undertake
to condemn me for doing my duty.
APPEALS TO SPIRIT OF FAIR PLAY
Olve tho People tho Facts and Thoy
Will Render a Verdict.
Never was a more striking Illustra
tion of the devil attempting to rebuke
sin. Th'se men, If they had wantid to
be fair and honest, would have con
dsrnncd themselves and the republican
party, for liiey alone are responsibly fur
this great wrong to the people. I do
not exptct fair treatment from th-ie
man. Fair treatment, -truthfulness und
honesty are qualities not possessed by
thoss who ara managing tha affairs of
ii republican party today. They pre.
ftr dclt, falsehood, slander, fraud and
corruption as best suited to their pur
poses. It Is not to them, but to the hon
til, fair-minded people of ths slat, of
11 politic! partlsa, that I cppeaL Let
thern know the truth and (hen past
Judgment ujioo my every act. I rhal
ierign and court open, fair lind hones!
(Tltlclxm from any source and lime m.
liar of the result.
THE GOVERNOR'S POSITION.
Hartley Required to Show Up the
Funds on Hand.
What are the facts regarding my con
nection with these republican defend
ants? It la true that I was governor;
that I approved Mr. Hartley's bond, it
Is further true that I required In good
faith a full and complete accounting by
blm of the funds In the state treasury at
the beginning of his second term of of
fice and my first term. In the first
place I have all along contended and yet
contend that Air. Hartley should have
had his bond approved, his accounting
completed in all respects and have en
tered upon his second term the very
moment that I entered uion my first
term. In this contention I am supported
by the constitution and statutes, which
provide that all state officers shall qual
ify and enter upon the discharge of the
duties of their otliceg f(,r the term be
ginning the first Thursday after the
tlrst Tuesday in January next after th-ir
election. It will thus be seen that Mr.
Hartley should have qualilied for his
second term and entered upon his du
ties at the same time I began my hrst
term. A responsibility was thrown upon
me by his failure to thus qualify prior
to the ad of January, me time fixed by
law, which I should not have been re
quired to assume and which belonged,
as I understand the law, to my prede
cessor. Hut this was not done and I
was compelled to meet the conditions
which 1 found to exist. I did so to the
best of my ability and with perfect
fidelity to the people.
BARTLEY'S BONDSMEN.
Were Endorsed by the Com merclal
Agencies as Good and Sufficient.
It has been said of late and often te
peated that the bund of Mr. Hartley whs
insufficient when approved, and th!s
falsehood, like many others, has grown
until now It is boldly asserted that the
bond was worthless and that I knew it
to be such when I accepted It. Let us
see about this. The bond was presented
to me late In the evening of January 3.
I advised Mr. Hartley that I could not
possibly act in so Important a matter
that night; that I could not pass an In
telligent Judgment regarding Its sufll
ciency without careful examination and
extend;d Inquiry; that the sureties were
all strangers to me and I knew but lit
tle, It anything, about (heir financial
responsibility. I then talked with nu
merous people about the financial stand
ing of the sureties, and all spoke favor
ably as to their being persons of high
business standing and recognized finan
cial responsibility. I asked the aid of
the commercial agencies and their re
ports, a great many of which I now have
on file, gave to the parties signing the
bond a rating in many Instances gr..-atly
In excess of the amount for which they
Justified and In all Instances showing
that all sureties were financially re
sponsible and proper persons to be ac
cepted as sureties on obligations of this
character. The aggregate of the value
of the property owned by these suretl-s,
subjet to execution and sale on Judicial
process, far exceeded in amount the
sum named as the penalty of the uou 1.
The reports, I undertake to say, were
reliable, trustworthy and such as any
prudent, careful business man would
have relied upon to ascertain the re
sponsibility of the sureties on the bond.
DEMANDED MORE SURETIES.
All Swore That They were Worth
Over $2,000,000.
fBufur,tiu:.r; Th0 ar"ount of the bond
..no ujh-u nmn iirenernca to ma Janu
ary 3, at one and one-half million dol
lars. I regarded this as lower than it in
Justice ought to be, but did nut feel
warranted in rejecting the bond out
right, and, because the sureties seem-d
to me after careful and painstaking in
quiry and Investigation to be barely suf
ficient and the amount of the bond ex
tremely low, I requested Mr. Barticy
for additional sureties. These were fur
nished, and all Justified In the aggre
gate by their solemn oaths for over f.vo
million .lr.lhiru U'llhmil !... ...
i "- niiiivui (.jiii uiiu ue-
tail regarding the different Individuals
; composing these suretlis, suffice It to
say that they were persons who had
reputations for personal integrity and
. standing and financial responsibility of
, the very highest character, nearly all
of them being actively engaged In rep
, utable business and having business
connections equal to any who might be
secured as sureties on undertakings of
the kind under consideration. The bond
: was good and sufficient then, and it is
now so far as I can learn; and this
notwithstanding the very palpable faU-.
, hood which is now given currency for
j political effect, even to the point of Im
! peaching the Integrity and truthfulness
! of the sworn statements of these sure
i ties, whose standing and character
uicieioiore nau oecn a Dove reproach.
ACTED CAUTIOUSLY. .
The Republican State Senate En
dorsed Bartley'a Bond.
I submit to all fair-minded men that
I acted In this respect with due caution
and business prudence and that this
false charge must fall flat and should
react on the heads of its authors.
But this is not all: A republican sen
ate, upon a motion to amend, made by
Senator Campbell of Nance county, ap
pointed a committee to investigate the
sufficiency of this same bond. This
committee, after having the matter un
der consideration for several days and
after iiaking a thorough examination
into the matter, reported as follows:
"Jn regard to the bond of Juscph S.
Hartley, as state treasurer, we have to
report that we have gone into the inves
tigation very carefully.
"The sureties thereon are, with few ex
ceptions, men of known business stand
ing, our Information having been drawn
from non-official, but none tiie less le
liable sources, and In each instance,
confidentially received.
"Having given due consideration to
all the facts prtsenied, we beg to report
that In our opinion the bond of said
Hartley, as state treasurer, Is good and
Bu.hi li nt,
"All of which is respectfully submit
ted. "S It. AKKKS,
"VM, STKUFKR."
This report cannot be said to be false
and unreliable without Impeaching the
lepuhlictin (senate which ordered the
Investigation. Lo these purveyors of
this falsehood want to be under.stoo't
ns S'l.ving that the republican senate
falsllbd the condition of this bond and
that It was worthless at that time, und
that the report of the commiMee was a
lie and made to deceive? 1 usk the hon
est citizens of the ntute to say whether I
was derelict In my duty ri guiding this
bond, and to them I submit the matter.
ARTFUL DODGING OF LAWYERS
Using Every Concolvablo Device to
Escape a $500,000 Judgment.
In the suit on Mr. Hartley's bond now
In progress In th district court of Doug
las county, every Imaginable and con
ceivable defenso which -the Ingenuity,
skill and learning of counsel for the
surety defendants can bring forth Is
being employed. They seek to profit by
every issue nd obstacle which can ,
raised, whetlur regarding the merits of
ths case or some dry technicality, ar4
I can rsadlly ooncslvt how these de-
feridanti, with a probable Judgment ot
half a million dollars staring them In
the fiicc. will through their counsel ie.
sort to the most desperate means to reiki-ve
themselves of this responsibility.
It has been asserted during the trial of
this case that ex-Treasurer Hartley was
a defaulter at the) end of his first term,
and that 1 had knowledge of that tact.
An offer to Introduce evidence to sustain
this charge was made by Mr. Cowin, one
of the attorneys. People generally know
how much importance attaches to an
offer of this character, especially where
It is known, as must have been in this
case, that the offer was of evidence that
did not respond to the Issues In the case
and could not relieve the bondsmen,
SENATOR RANSOM'S DENIAL.
Never Charged Governor Holcomb
with Bad Faith.
even If true. Much has been said abmt
Mr. Hansom, one of the attorneys fu
the bondsmen, making a charge of this
kind, and scurrilous nondescript circu
lars, embodying these assertions as hav
ing come from Mr. Ransom, have been
circulated ail over the state, presumably
by the republican campaign managers.
I desire only to say that I have received
a personal letter from Mr. Hansom en
closing an editorial from the Omaha
Hee under the caption, "A Startling Ar
raignment," and embodying the sub
stance of these statements, in which Mr.
Hansom says: "I notice the enclosed
editorial in the Hee this morning (Oct.
9) and without thinking It is necessary,
because of the source, yet I desire to
say that the statements therein con
tained are unqualifiedly false, and f
you desire to Inquire, I refer you to gen
eral Cowin, the leading counsel In the
case, and the other attorneys in the case.
Personally I made no offer whatever
hut argued the admlssahlllty of an of
fer made by other counsel, but nowhere
was It claimed In the offer or argument
as stated in the editorial."
A DAMNABLE FALSEHOOD.
Refused a Challenge to Submit
Proof.
Whatever may be the truth as to
what was uttered In the court proceed
ings regarding this subject, and by
whomsoever uttered, I have only to say
that never was a more heartless and un
Justifiable falsehood uttered by man
than the statement or Insinuation that
I had any knowledge directly or Indi
rectly or In any manner that Mr. Hart
ley was a defaulter at the beginning (f
his second-term of ofllce. Upon the con
trary, I had every reason to believe,
from a careful examination of the con
dition of the state treasury, that he had
every dollar on hand that he was pro
perly chargeable with. The fact that
the attorney general consented that the
defense might prove that a-shortage ex
isted. If one did, at the beginning of the
second term irrespective of my knowl
edge regarding the matter, and that
the court permitted them to offer proof
of such alleged shortage, and their
failure to offer one scintilla of evidence
to sustain the charge made by them,
ought to be conclusive proof that no
such evidence existed and that there was
no ground for the cruel, unjust and false
offer made by Mr. Cowin to prove such
charge. It leads one Irresistibly to the
conclusion that an attempt was mad"
by counsel In this case to prostitute the
courts of justice In order to manufac
ture some cheap political capital to
bolster up the waning cause of a thor
oughly discredited party.
It was proposed In this offer to prove
these assertions by Mr. (5. M. Hartlctt,
deputy state treasurer for many years,
and yet, as the evidence afterward
showed, Mr. Hart let t'a testimony and
my own on this point were substantially
the same; and our knowledge of the en
tin transaction - practically coincided.
How, then, can counsel be justified in
this unwarranted, outrageous, untruth
ful Insinuation that 1 had knowledge of
any shortage, or that, In fact, any
shortage then existed? I understand a
copy of this offer by Mr. Cowin has been
printed and circulated by the republican
state central committee throughout the
state under cover of envelopes through
the United States mails. If such be the
case, those responsible are guilty of cir
culating a malicious libel and should
be placed In the same category as those
who will stoop to falsehood and vlllt
flcatlon as the proper method of discuss
ing public questions. These parties will
be careful to say nothing In their de
famatory circulars about the attorney
general and the court offering to allow
and permitting the defendants to prove
any shortage during Mr. Hartley's firt
term, nor of the defendants' refusal to
offer one lota of evidence that such wh
the case. How manly, how fair, how
honorable, are such methods? Whit
will honest .people think of such treach
erous and unreliable methods of. con
ducting a campaign?
SHIFTING ABOUT.
Trying First One Falsehood Then
Another.
It was first asserted that I had been
negligent In my duty In not requiring
the state treasurer to account for the
funds in his possession at the beginning
of his second term of office. After
wards, when it was ascertained that
such charge was utterly unfounded and
could not be supported In truth, the
allegation was made that the treasurer
whs a defaulter at thut time and that I
hud knowledge of that fact. Since this
palpable falsehood has been refuted, it
is now. us a dernier rt-ssort, publicly
proclaimed that -the manner of the ac
counting by the state treasurer was not
such as the law required and was,
therefore, illegal. 1 wish to examine
Into this phase of the question very
briefly. In the first place I would have
It distinc tly understood that no respon
sibility can attach to me In any man
ner for whatever wus done or failed to
be done In the office of the state treas
urer prior to Janunry 4, IMij, at the
time when I entered upon the active
duties of m." position. Whatever con
dition existed alien and prior to that
time was occasioned by the policy of
the adrnlnls. ration of state affairs by
the republican party and their repre
sentatives, ho had held almost unin
terrupted control since thf organization
of the state, and who had up to that
time and since proclaimed through the
press and upon the plump thnt their
management of the (-tate's affairs v;s
honest, economic, straight for ward and
In the lnterst of the people.
After being Inducted Into offlee nt' 1
fiB'-crtnlnlnp thn! theiMate treasurer hud
pot qualified utuh r my predecessor and
that the duly devolved upon rue, I im
rneil'Mt'ly pet t' work i. autlously and
carefully to discharge my duty In the
mutter of the qinilllicZ'l'.on of the trean
nrer for his second term of office. Net
only did 1 consider It carefully, bin 1
fbo conceive I It to be my ilutv to apcer
tain the true condition cf the fclate
treasury mi l s ent" on accounting of
the funds chargenbl" to the state tr.i"
urer In order to comply with the spirit
of the law. I thbik I can safely nty
that never before in the history of th!
state had such nn accounting been made
certainly not to my knowledge. Hear
In mind that what I endeavored to do
was to ascertain the trulh regarding t lie
condition of the state treasury and to
be satisfied that the treasurer had In his
possession snd under his control all
funds with which he might properly ha
chargeable. I hRd neither tho time,
ability nor facility to enter Into an ex
pert Investigation of this matter. I
could only be expected to make a rea
sonable effort, situated In my position
a I 4. i require a full and eomplt
accomting of the funds belonging to the
state (reusury. This I did.
SUPIEME COURT'S IRON HAND.
Unlawful to Deposit School Money
j In State Depositories.
I vjsh to call attention to the fact
that after the enactment of iie depos
itory law by the legislature, the zupremc
cour In an opinion handed Uowti In Feb
ruary, U'4, held that the provisions ol
the leposltory law had no application
to educational and trust funds, and
that it would be unlawful to deposit
these funds in state depositories. This
decision, then, required a separation of
the funds. In the current funds, which
should be deposited in state depos
itories, Mr. Hartley accounted by ex
hibiting evidences which to me were
satisfactory and which I am satisfied
were perfectly reliable. He had prac
tically all the current funds for which
he was chargeable in state depositories,
where they properly belonged. The
other funds, being the educational or
trust funds, must then be accounted for
in some other manner. It is jrged now
that these other funds should all have
been accounted for by the production of
the actual cash. This was not dona, in
the nature of things it could not bo done
an! was not required to be done under
the- law.
DISTORT GOVERNOR'S WORD'S.
His Idea of a Sham and Farce Ac
count ng.
My language has been distorted and
I have been charged with saying that
the law requiring the accounting was a
farce and a sham. I have uttered o
sueh sentiment. I have said that to
give the law a construction which would
permit the state treasurer to go to the
banks of Lincoln and Omaha and tem
porarily secure cash equal to the amount
he was chargeable with and exhibit
such cash as an accounting and then
return it to the banks from which it
was obtained, would be a farce and a
sham and would throw absolutely no
light upon the condition of the treasury,
leaving us in as much ignorance as
though no sueh accounting had been
had. it is a fact known to many that
county treasurers have made settle
ments by securing temporarily the cash
necessary to balance their accounts, re
turning It to the banks after It has
served Its purpose, and nobody was any
wiser as to the amount of actual funds
in the control and keeping of such treas
urer. This was especially noticeable in
the case of Harrett Scott, of Holt
county, who produced to the county
commissioners money borrowed from
the banks of Omaha for that purpose,
returned It to the banks and within a
very short period was found to be a
defaulter to the amount of nearly one
hundred thousand dollars. It was in
this sort of an accounting that I dit
not believe there was any virtue and
did not care to engage In. I felt it to be
my duty to know where the funds were
rather than to have somebody else's
funds exhibited as belonging to the
state treasury. In doing this I con
ceived I was complying with the law
and giving to Its requirements a sen
sible construction one in which "the
spirit maketh alive while the letter klll
eth." I examined Mr. Hartley's ac
counts and he exhibited to me cash in
the treasury and certificates of deposit
of solvent bunks in the state, where he
had the money on deposit for safe keep
ing, for every dollar for which he could
he held responsible. These certificates
of deposit and evidences of credits which
he held In the banks had all the evi
dences of genuineness and there was
not the slightest Indication in any par
ticular that the money which it purport
ed to represent was not honestly and
Justly to his credit there, to be called
for whenever it might be required by en
order for Its investment from the Hoard
of Educational Lands and Funds.
HOW THE MONEY IS KEPT.
Custom and Common Sense In the
Case.
Bear In mind the fact of this money
being deposited In different banks was
a condition that existed when I exam
ined the treasurer's books and a con
dition which existed, which was upheld,
which was endorsed, which was defend
ed by republicans, under a republican
rule and regime, in the affairs of this
state for a number of years past. If it
was wrong at that time, It was wrong
the day befr-e; if was wrong during the
campaign preceding that time and every
republican In the state who supp"-ted
the republican policy and the repul I
administration of affairs was equally
responsible for that wrong. Every state
officer preceding me, every member of
the supreme court, every member of the
Igislature, every well-informed perso-i
throughout the state knew that tills
money was not kept In the treasury
vaults; that In the nature of things It
could not be kept there in safety; and
that Its only safety lay in its invest
ment as the law directs, for the benefit
JUDGE POST'S DECISION.
Regarding How the State Funds
Should Be Kept.
of the school children of the state. Let
me quote here an opinion of Judge
Host, the republican candidate for re
election as judge of the supreme court,
upon, this subject and see where I should
be held responsible for this heinous of
fense and no one else share in the
wrong, if one there be:
"Hy reference to the foregoing cer
tificate of deposit It will be perceived
that the transaction here Involved dif
fers from an ordinary general deposit in
one respect only, viz., that the money
of the state In the Capital National
hank was payable upon the return cf
the certificates, and not subject to
check. It is, therefore, directly within
the reasoning of the cases cited. Hut
the legislature could not, by the adop
tion of the criminal code, have Intended
to require the Impounding of public
funds In specie In the vaults of te
treasury for another and sufficient rea
son, viz., tUat the state had then, a3 it
has now, no sufTlctent vault in which to
securely keep them. We take notice,
too, for It Is a matter of common noto
riety that treasurers have never kep
funds of the state In actual cash In tho
vaults of the treasury, and we may
safely assume that they will never be
so kept, since no treasurer could glvj
the rcoulrefl bond who was suspected of
nn Intention to entrust the millions for
which he is accountable to the utterly
Insufficient security provided therrfor
b.V the state. A change so radical us !o
ii mount almost to a revolution of the
jinandiil policy of the tate and which
niixt result In multiplied embarrass
ments, owltir to the Inad-quote provl
tlons for Investment of our rapidly In-
nosing school fund, should not be
nno-ioned upon any such diubtful
ground tia an amendment of the crim
inal code, designed to prevent the em
bezzlt mcnt, by of'lcers, of public funds
entrusted to them for safe-keeping."
HOW IT WOULD WORK.
To Temnorarily Produce the Cash
la Absurd,
It U was required that this money
should be In cash In the treasury vault
r-f the state at the time- of the account
ing b tween Mr. Hartley and mysei.', it
should hnve been there a year prevloua
and for several years before. It should
lave been there at all times thereafter.
It will not do to say, and U10 proposition
Is absurd, thnt for the purpose of ao-
counting the money should be tempo
rarily brought Into the treasury tauli.
but that at all other times It should
be deposited In the banks under the di
rection and control of the state treas
urer. Had there been anything In th?
law to Indicate that this accounting
should be in actual cash, by the uam
parity of reasoning it would be re.
quired that the actual cash should be
In the treasury vault at ail times and
under all circumstances, except where
deposited in the state depositories. This
was not the condition when the ac
counting was had. It was not the con
dition prior to that time nor since then.
Every well-informed person knows
that this money, which could not be de
posited In depository banks, was not
kept in actual cash in the treasury
vault. In that accounting it was dis
closed that ever two hundred thousand
dollars of educational funds were de
posited in the vaults of one of the lead
ing banks of the state. Other sums in
smaller amounts were deposited in other
banks. All were clean, clear-cut evi
dences of the deposit by the state treas
urer of so much money belonging to the
state, and which he might call in at
HIS DUTY WELL DONE.
Another Injunction Stared Him In
the Face.
any time it was required. Will any sane
man, will any prudent business man in
the state say, under the circumstances
in which I found the state treasury and
its different funds, accounted for in the
way they were, that it was my duty to
insist and demand that the state treas
urer withdraw all this Immense sum of
money from the banks where it was
deposited and put it into the treasury
vault? If such a course were required
by law I would have endeavored to en
force it were it to break every bank in
the state. But it was not so required.
.It could have brought nothing but
disaster and ruin to the financial inter
ests of the state, could have resulted in
nothing but the wrecking and deplet
ing of many banking institutions, solv
ent at the time but in a critical condi
tion because of the disastrous financial
condition and the sever drought thro'
which this state had passed the season
previous. Not only that, but I would
have been met promptly by a process
from the court in line with its other de
cisions that this money, until invested,
was under the control and keeping of
the state treasurer and that I as gov
ernor could not determine and had no
right to determine in what manner he
should keep the funds entrusted to his
care and keeping by the choice of the
people. W1W else can be said In the
face of these conditions and in the face
of what actually occurred than that
there Is a desperate attempt being made
to bring reproach upon me because of
the shortcomings of others and because
I have been an Instrument in bringing
exr isure to the extravagant mal-ad-ministration
of affairs by republican
state officials and those appointed to
serve In important public positions?
DID ALL THE LAW ALLOWED.
Republican Legislature Should
Have Taken a Hand.
Not only did I require a full and com
plete accounting from Mr. Hartley at
the beginning of his second term, but
during each semi-annual period there
after I required from him a report in
writing, and these are the only reports
that are on file in this office made by
any state treasurer, showing in detail
the amount of moneys on hand, the
amount deposited In the different depos
itory banks and where deposited, and,
in fact, a complete exposition of the
condition of the state treasury at the
close of each semi-annual period. This
is all I could do under the constitution
and the law. This was done, and never
had been done prior thereto.
A republican legislature was in ses
sion at the timi of the approval of Mr.
Hartley's bond, and were there any
occasion for the belief that the state
treasury was not In satisfactory con
dition, this" legislature and it alone
above every other power, was provided
by statute and by its own Inherent
I power with authority to Investigate all
such matters. But the republics-n leg
; lslature, the friends of Mr. Hartley, and
every republican today who has com
! plained about these t hings that have
transpired in times past, were as silent
as the grave.
Section 5015 of the Compiled Statutes
provides: "All books, letters, and
j transactions pertaining to the office of
i treasurer shell he open to the inspection
of a committee of the legislative assem
j bly or either branch thereof, to examine
and settle all accounts and to count all
', moneys; and when the successor of any
such treasurer shall be elected and
i qualified the state auditor shall exam
i ine and settle all the accounts of such
I treasurer rma.'nlng unsettled, and
give him a certified statement showing
the balance of moneys, securities, and
effects for which he is accountable, and
j which have ucen delivered to his suc
cessor, and report the same to the leg
islative assembly."
THE $200,000 THEFT.
A Conspiracy to Rob tho State Is
Plain.
In no other place in the statutes is
such latitude and unlimited authority
given for the examination of the condi
j tion of the state treasury as is here
1 given to the legislature. If I have failed
1 In my duty, this legislature failed ten
fold more In their duty. But further:
I Of the moneys of which Mr. Bartley is
' in default, two hundred thousand dol
lars is for current funds. Reckless, in
'deed, would be the Individual who for
j one moment would Insinuate that I was
i In the remotest degree connected with
this shortage of over two hundred thou
sand dollars. The legislature made an
I appropriation to reimburse the sinking
j fund. Scare ly had the act become a
law than a voucher, adjusted by a re
publican state auditor, approved by a
! republican secretary of state, was made
I out In favor of Mr. Hartley, not as stave
: treasurer, but in his Individual capac
ity, and upon which a voucher was
1 drawn In his favor, registered, and by
him taken to a leading bank in Omaha
and there negotiated and the money dis
j posed of or dissipated in some way un-
Known 10 mn. 1 Ills warrant, h-m 111. iu
ten days prior to the expiration of Mr.
Hartley's term of office, was paid and
cancelled. Not one step In the entire
transaction was known to any one, so
far ns my knowledge goes, except thes1;
republican state officials and the bank
nfflcials who negotiated the sale ot the
warrant. Yet these arrant hypocrites
would have the people of the state of Ne
braska believe that I In some way have
been derelict In my duty because of this
os of over two hundred thousand dol
lars to the people of the stale. To what
J-pth of infamy will thy go In order to
fllstract the attention of the people from
their own crimes and misdemeanors?
THE SCHOOL FUNDS.
What Holcomb Tried to DoWhat
Supremo Court Did Do.
To return to the school fund, some
thing over three hundred thousand dol
lars of which was not accounted for bv
Mr, Hartley at the close of his second
tirm. What is the condition of thl
fund, and how has It ben managed?
The legislature undertook to secure Its
deposit In depository banks and the su
preme court held that It was not lawful
to do It. The legislature undertook to
have the at ate treasurer buy state war-
rants with It when there wn nw
in the gtneial fund and the sttK
court held he could not do It. The f.
of Educational Lands and Funds ft
aeriooK to uirect tne state treasurer t
purchase state warrants with this unin
vested school fund and hold them aa an
Investment for the benefit of the school
children of Nebraska. A caee was made-
up and the supreme court helJ that such-
investment could not be made unless at
the pleasure and with the consent of
the person holding the warrant. The
supreme court has, in fact, given US a
line of decisions from the very begin
ning which in effect permitted the stata
treasurer to keep this enormous fun
under his own control, care and custody
a temptation in itself to fraud, mal
feasance in office and defalcation.
During my term of office I labored In
dustriously to secure the investment of
this fund as the law provides. I met
with the stubborn, solid opposition of
the republican members of the Board of
Educational Lands and Funds, and in
vestments in state warrants, such as
are now being made every day and
found to be satisfactory in every way.
in accordance with the law and the early
decisions of the supreme court, were by
the republican attorney general held to
be unlawful. What can now be dona
with the utmost satisfaction to all con
cerned, was then held to be unlawful.
I then endeavored to secure the Invest
ment of this same fund.Ln United States
bonds, against which no valid objection
could possibly be urged, and again met
with the opposition of the republican
members of the Board of Educational
Lands and Funds, as strong and deter
mined as that against investing It in
state warrants. I then turned my at
tention to the purchase of county reg
istered bonds, the only other kind of
securities mentioned in the constitution,
and by my own individual efforts, un
aided in any way, secured the purchase
by the board of over a hundred thou
sand dollars of the entire amount in
vested during my first term of office.
Every dollar of this fund could hav
been and should have been invested
prior to the expiration of Hartley's sec
ond term, and even before that, for that
matter; but it was not done because of
the active assistance, aid, co-operation
and consent of republican officials, the
republican press and party leaders
throughout the state. If this fund had
been invested as it should have been,
no defalcation would have taken place.
The money was on hand at the begin
ning of Mr. Hartley's second term of
office. Instead of three or four hundred
thousand dollars, every cent of it should
have been and could have been invested,
and not a dollar of it lost to the state.
HOW THE STEAL WAS WORKED.
Another Smoothly Carried Out Con
spiracy. Let me illustrate one other fact as to
the condition of these funds. It will be
borne in mind that aside from the twa
hundred thousand dollars, representing
the amount collected on the sinking
fund warrant, drawn in Mr. Bartley'a.
favor, and about which I could know
nothing, the remainder of $335,000 rep
resented the educational funds in hi
hands. These funds, as above stated,
were kept by him, and could not, under
the decision of the supreme court, b
deposited under depository bonds in
banks-designated as state depositories
where the current funds must, under
the law, be kept. Just at the close of
Mr. Bartley's term of office, and when
it was known that he was required to
account for those funds, he presented
three depository bonds, making threw
other banks state depositories. Thesa
bonds were not presented and were not
acted upon until near the time that ha
was required to account to his succes
sor. I objected and protested against
the approval of any more depository
bonds because of the nearness to thn
time when Mr. Bartley would ba re
quired to account for all funds, and be
cause depository banks had been des-
Ignated sufficient and ample to cover all
current funds which should be depos
ited therein. Notwithstanding my ob
jections, these three depository boi da
were approved by the republican attor
ney general and the republican secre
tary of state, and, without my approval,
which the law says must be had, thesn
banks were designated as state depos
itories. At the timp of this designation
these three banks had in their posses
sion over two hundrfd and twenty-two
i thousand dollars ($l'22,000). This money,
I I am satisfied, had been in these banks
! for a considerable period of time and
! was in fact school money and belonged
to the educational funds and not to the
HOW EASY IT IS
To Rob a State When You Know
How and Have Confederates.
current funds. By this action, how
ever, Mr. Bartley was permitted to cred
it as current funds this $222,000, which,
properly belonged to the educational
funds, and in its stead to dissipate and
misappropriate an equal amount of
current funds which he had accumulat
ed during the last six months of his in
cumbency by failure to pay any state
warrants, and of which, according to
his report, submitted November 30, 186
preceding the expiration of his term of'
office, the general fund alone amounted
to $589,370.39. Yet. warrants at thia
time were outstanding against this fund
for many times that amount. By thia
action of his fellow republican state
officials, Mr. Bartley was permitted te
take out of the school moneys which h
had on hand, and which should have
been turned over to his successor, this
sum of over $220,000 and which he should
have been compelled to account for out
of the general fund which he had al
lowed to accumulate and for which by
this act he was permitted to substitute
school funds. This fact alone accounts
for that amount of school moneys actu
ally held by him as school moneys until
within thirty days of the expiration of
his term of office. Iri the face of all this,
I have been slandered, villlfled and my
actions falsified In order to deceive the
people. It Is to the I'leonle, the honest
citizenship of NcbrarVn, thnt I submit
these facts and confidently await thulr--Judgment.
t"'
(Signed) SILAS A. HOLCOMB.
Executive Chamber, Lincoln, . Neb.,
Oct. 21, 1S37. ' -'
So many prominent, phys!clans ar
making such a good case ngtilnst eat
ing bread that It K' cms proper that peo--ple
In general who cat liM-ge quanlltlra.
of stcrchy foods phiuld know that such
a diet Is coming to b" considered a men
see to htalth. Bread Is Fald to contain
from 30 to 40 per cnt of starch. It Is
hard to dlresit and makes a great and
unnecessary strain on the digestive ap
paratus. Dr. IXMismore of New York:
and other American wrltTS on hygiene
believe In a universal reform In thli
particular. Mr. T. V. O'Connor, In &
London paper, recently made some ver.
tntcp-Ftlng statements, lie said that
persons who have strictly abstained
from bread eating have retained their
faculties to an unusual age. Sir Isaao
llolden was an example. II lived
ninety-one years, the greater number of
which were spent in act'lve work andt
out of Parliament. lie smoked bjiA
drank In moderation. His friends be
lieve his long life and remarkable vital
ity are to be attributed to the fact that
he avoided all feeds rich In starch.
There are oeptlna to the rule the,!
at arch Is unhealthy. Rloe, for lnatcjioe
la readily digested.
I
