The Columbian. (Bloomsburg, Pa.) 1866-1910, November 03, 1898, Page 2, Image 2

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Why a Palmer and Buckuer Leader
Supports Mr. Jenks.
i Vigorous Communication From Samuel
Dickson, a Leader of the Philadelphia
Bar—Facts For All Honest Citi
zens to Ponder.
The strongest men in Pennsylvania,
regardless of partisan, factional or
financial views, are rapidly getting Into
line for Jenks and reform. The Phila
delphia Ledger, notwithstanding its
arge proportion of Democratic readers,
las been hitherto very unfriendly to
he Democratic nominee for governor,
ocing inspired to this course by certain
well known influences which were
against the Democratic party two
years ago. But the tide of public in
dignation against Quayism, and the
manifest determination of the people
to rise superior to party and to over
throw the enemies of honest govern
ment, is showing The Ledger the er
ror of its ways, and that journal is now
devoting every day a large amount of
space to the Jenks meetings, and edi
torially is pursuing a much more com
mendable course with regard to the
state contest. Our contemporary gives
a solid column, on its editorial page,
to Samuel Dickson, Esq., one of the
leading lawyers of the country, who
shows in the strongest language not
only why all Democrats of his way of
thinking should support Mr. Jenks —
and he was one of the Palmer and
Buckner leaders in 1896—hut all other
good citizens as well. Mr. Dickson
thus writes:
"As many independent voters are
apparently in doubt as to whether to
vote for Dr. Swallow or Mr. Jenks, a
Statement of some of the reasons which
will lead many of the sound money
Democrats to vote for the latter may
be of Interest. The first is. that the
powers conferred and the duties im
posed upon the governor of the state
are of such transcendent Importance
that the question of personal fitness
should be given predominant weight in
the choice. In point of fact, the office
of governor is of singularly little eon
sequence relative to party politics. He
has but little patronage, and. In re
cent years, at least, he has not been
a party leader. On the other hand, he
has a controlling Influence in the mak
ing and amending of laws of the state,
which really come home to the people.
Every one, who knows anything, knows
that the laws which govern the tenure
of property, by which every man holds
his house and his goods, which relate
to the effect and enforcement of con
tracts. taxation, to schools, to roads
and all the interests which really enter
into our daily life, are state laws. Now,
when it Is remembered that at the ses
sion of 1897 over 400 new statutes were
enacted, making up a volume of over
600 pages, it is apparent that the In
cessant tampering with our laws is an
imminent danger to every property
owner and to every taxpayer.
"It must be conceded by every one
who pauses to reflect that the first and
fundamental questions as to the can
didate for the high office of governor
of the commonwealth of Pennsylvania
are those of Jefferson: Is he capable?
Is he honest? Tried by this test, there
is one candidate and one only who sat
isfies the requirements of the office.
For half a lifetime Mr. Jenks has been
known as a leader of the bar of Penn
sylvania. His life has been led in th s
open practice of his profession, and is
known to his neighbors and the bench
and bar of the state as an open hook.
It is the common and concurrent tes
timony of ail that he had en
riched a vigorous and capaci
ous intellect by unremitting and
discriminating study. and the
effect of his powerful and logical argu
ments Is reinforced by a character so
genuine and open and sincere that the
listener gives absolute confidence to
every word he utters. He has not only
had the leading practice in his own
county, but he has been sent for to ap
pear in every court in thnt section of
the state, and his arguments before
our own supreme court and the su
preme court of the United States and
the electoral commission have given
him eminence among lawyers in the en
tire country. In addition to his foren
sic ability he Is an exceptionally calm,
wise, judicially minded man—a safe and
good counsellor as well as effective ad
vocate. It is impossible that one of
such intelligence and character could
he deceived by bad advisers or coerced
or cajoled into doing what his own con
science condemned. No single voter,
if required to select a lawyer to advise
or act for him in that part of the state,
would fail to consider himself fortunate
if he should secure the services of such
a man. Now that we are all compelled
to choose one as our adviser and rep
resentative at Harrisburg. why should
we not do collectively what any one
of us would do if acting alone?
"Without making any invidious com
parison, it may be said with entire con
fidence that no one would engage the
services of Dr. Swallow to represent
him in any private matter calling for
knowledge of the law, or sobriety of
Judgment, or prudence In action. On
which ever side the account between
him and Governor Hastings the bal
ance should be struck, the fact is that
he was convicted of libel before Judge
Simonton, as accomplished a Judge as
sits in any court of the state; and when
called before the committee of investi
gation. composed of men of all parties,
he offered no Justification or excuse
for his charge of incendiarism in the
fire which destroyed the capltol build
ing. It is Inconceivable how any busi
ness man would be willing to trust one
so reckless and Incautious to pass upon
the revision of our laws, or to use the
National Guard to enforce order. He is
simply impossible. As to Mr. Stone, it
is enough to say that his political life
has always displayed the qualities be
coming a follower—none of the quali
fications of a leader.
"The sentimental influence upon na
tional politics, by the election of a suit
able person for governor, It likely to be
beneficfa! rather than otherwise, but
even If temporarily prejudicial, it Is al
ways wise to bear In mind that as true
reform can only bs worked out through or the other of the two preat par
ties, It Is essential to the safety and
welfare of the people that they should
he kept as nearly as possible In even
balance. Nothing could be more sal
utary for the Republican party itself
than to have its old adversary restored
to equal strength, so that each may
Know that the only hope for preference
In the popular vote is in greater dili
gence for well dolngf. There Is no dis
cipline for oflleial misconduct like de
feat, and there Is no safeguard for the
party in force like a powerful opponent;
but no permanent party organization
can he effected ami maintained in this
state or In this country upon only one
of the Ten Commandments.
When the machine shook the "plum
tree," for the benefit of Its friends, in
the People's hank, it startled the state,
although the public was not unprepared
for the cropping out of that sore on the
body politic, liut nearly ten years ago
the Democratic minority in the state
legislature, led by Mr. S. M. Wherry, of
Cumberland county, not only pointed
out a whole orchard of golden fruit,
dropped into the laps >f the favored
banks of the state, and shaken for
other purposes, but attempted to pre
vent treasury plum tree shaking in the
future. On the 22d of March. 1889, Mr.
Wherry introduced the following res
Resolved, l,y the senate and house of
representatives in general assembly
met, that the sinking fund commission
ers shall invest, on or before June 1,
18.89. all of the cash surplus in the
sinking fund In the United States I
per cent bonds, except six months in
terest on the state debt, and enough
to meet any actually pending negotia
tions for rho purchase of state loans,
and $'450,000 additional, provided such
tunds can lie purchased at no higher
premium than 25 cents on the dollar,
and that after June 1, ISS9, ail the cash
surplus in the sinking fund on the first
day of September, the first day of De
cember, the first day of March, the first
day of June in each year shall be in
vested in United Stales 4 per cent
bonds, except six months interest on
the state debt, and enough to meet any
actually pending negotiations for the
purchase of state loans, and $250,000 in
addition, providing that the state can
thus realize by purchasing and holding
such bonds until maturity not less than
2 per cent per annum. But after Aug.
1, 1894, the sinking fund commissioners
shall not purchase any state loans at
so high a premium that the purchase
of such state bonds would not realize
within one-half of 1 per cent as large
an Interest as with the purchase of
United States 4 per cent bonds at a
market rate at the time the state
bonds are offered to the commissioners
for purchase to the state; and that if
the state bonds cannot be purchased
at a rate showing to within at least one
half of 1 per cent as large a rate of
interest as would the purchase of Uni
ted States bonds at the market rate,
the commissioners shall proceed to pur
chase United States bonds at the said
market rate, and to keep them as a re
serve in the fund until maturity, or
until such time as their sale would en
able the state to purchase Its own
bonds at a rate which would real
ize to the state an equal interest, or in
terest which shall not be more than
one-half of 1 per cent less than the
interest which would he realized from
the United States bonds if held to ma
Also he it resolved by the house of
representatives (if the senate concur),
that the sinking fund commissioners be
directed to report to the legislature
within ten days the amount of cash bal
ance in the Finking fund on the Ist of
March, 1889, together with a statement
of where such surplus is deposited, and
a list of hanks and hanking institutions
where such funds are deposited, with
the amount deposited in each hank.
This was, however, merely a prepara
tion for a further resolution introduced
on March 25, 1889, as follows:
Whereas, the sinking fund commis
sioners have, during the fiscal years
18S6 and 1887, and 18S7 and 1838, pur
chased a bond at a higher rate than the
market tate. thus violating the act of
February, 1870, as amended by the act
of June, 18S3. making such purchases at
rates from U to 2% per cent higher than
the market rate at the time fixed by the
act as limit to the purchase of such
bonds, and that the amount of such ex
cess has been In the aggregate at least
$7,000; and
Whereas, the said sinking fund com
missioners sold in December, 1887, and
January, ISSS, $1,000,000 of United
States bonds, which were invested In
the funds, which sale was in violation
of the art of 1883, which declares that
such bonds shall only be sold when the
money shall be required for the ex
tinguishment of the public debt: and
Whereas, th" proceeds of these bonds
were not necessary for the extinguish
ment of the public debt, for the reason
that when sueh bonds were sold there
was already in the state treasury a
cash balance of over $1,490,000, and
that after the said bonds had been sold,
although $300,000 worth of state
bonds had been purchased, there still
remained in the fund, not reckoning
the sale of United States bonds, a caslt
balance of more than $1,000,000, and
that at the close of the fiscal year af
ter the state had met all the obligations
of the fund and had purchased nearly
$1,000,000 of the state bonds in addition,
there still remained in the treasury,
not reckoning the proceeds of the sale
of such bonds, a cash surplus of over
$1,100,000, thus demonstrating that
said sale of United States bonds was
not necessary for the extinguishment
of the public debt up to the present
time; and
Whereas, the bondsmen of the said
commissioner are liable to the state
for at least the amount of Interest lost
to the state up to dale by the sale of
said $1,000,000 of United States bonds
which now lies a useless surplus In the
rash in the state treasury, amountlns
to $60,000, and at least for the excess
of premiums paid on the purchase of
Mate bonds above a legal limit, then
their market rate, amountlns to at
least $7,000: therefore, be It
Itesolved (If the senate concur), that
a committee of Ave members of the
house, and three members of the sen
ate, be appointed to investigate said
transatlon of the sinking fund com
missioners, and other transactions of
the commissioners for the past two
years, and report to this or to the next
legislature by hill or otherwise.
Upon this resolution Mr. Wherry
I desire to say a few words In ex-
planatlon of what Is proposed under
this resolution.
The state's fiscal year begins Dec. 1.
The last two fiscal years are designated
1886 and 1887 and 1887 and 188.3. In those
years the state lost nearly a quarter of
a million dollars by the mismanagement
of the sinking fund under the then
commissioners. I propose to show how
this was done.
In 1883 the legislature enacted a law
giving, In terms, to the sinking fund
commissioners the power to invest the
surplus cash in United States bonds;
ami this act was passed, as is shown
n Its face, for the purpose of allowing
the commissioners to purchase these
bonds when the best interest of the
state could be served in this way, rath
er than in the purchase at a high pre
mium of the state's own loans, so that
when the commissioners find that the
state's own loans are held at an exorbi
tant premium the commissioners could
buy United States bonds, if they could
realize a larger rate of interest on the
state's money. This is a promise on
which this whole argument is based.
How the commissioners have lost
money amounting to nearly one-fourth
of a million in the two fiscal years
spoken of has been in three ways:
First. By the sale of United States
bonds already bold by the state to pur
chase state bonds at an enormous pre
Second. By the purchase of state
bonds at an enormous premium when
a large profit could have been realized
by the purchase of United States bonds
instead of state bonds.
Third. By failure to invest surplus
funds In United States bonds, which
would have borne interest for the state,
when It could have been done, and left
large cash balances still in the fund
for all necessary future transactions.
I invite your attention now to the
following publication, which you have
received, entitled "Mismanaged state
An Examination of the Sinking Fund
for the Past Two Years. How th?
Commonwealth Has Lost a Quarter of
a Million Dollars.
Stop the Flow Into the Sinking Fund
Treasury and Invest Its Enormous
Cash Surplus.
Harrisburg, Pa.. March 21. 1889.
The reports of the state sinking fund
commissioner's operations for the
fiscal vears 1886 and 1887 and 1887
and 1888, including transactions
from Dec. 1, 1886, to Dec. 1,
1888, have been made to the legis
lature. Let the public look at the re
sults. The operations for these two
years have entailed a loss of about a
quarter of a million dollars, and the
accumulation in the fund of a cash bal
ance of two million three hun
dred and sixty-eight thousand, three
hundred and forty-three dollars and
seventy-three cents, which the commis
sioners are at a loss to know what to
do with. The most curious and inde
fensible operation of the sinking fund
commission for those two years was the
sale in the early part of the fiscal
years 1887 and 1888 of $1,000,000 of United
States 4 per cent government bonds
at one hundred and twenty-four and
This was done with an already cash
balance of nearly $1,500,000 in the sink
ing fund treasury. What could have
been the motive for this transaction,
which is astonishing in whatever light
it is viewed? It is inconceivable that
the sinking fund commissioners imag
ine that I'nited States 4 per cents would
fall to one hundred and eighteen in
1882, when these bonds would have been
needed to redeem the outstanding 5
per cent loan. Yet, if these bonds were
sold to meet a declining market, the
fall must have been so great as to reach
one hundred and sixteen in 1592 before
the state could possibly have suffered
any loss, for the very simple reason
that these bonds would have drawn
17 cents on the dollar (par value) in In
terest between the time of their sale
and February, 1892, when they would
have been needed to meet the outstand
ing 5 per cent loan. That they were
not sold for the purpose of purchasing
outstanding state bonds is shown from
the fact that without the proceeds of
these bonds and after having purchased
$802,000, par, our state s's, and having
met all obligations of the sinking fund
for the year, there would have been
left at the end of the fiscal year in the
treasury over a million dollars in cash.
Even if it had been necessary to have
disposed of these bonds to purchase
state bonds at the price paid by the
state in that year. It will be shown
later on that this would have been a
losing transaction, unless the TTnlted
States 4 per cents had declined to be
low one hundred and sixteen in 1892,
a result which is almost an utter finan
:ial impossibility.
In considering the operations of the
sinking fund commissioners it may be
assumed upon the authority of one of
the best financial officers in Pennsylva
nia that not even a financial panic,
such as occurred after the failure pf
J, Cooke in 1873, would put 4 per cent
government bonds below one hundred
and twenty at any time between now
and Fetiruary, 1892. The estimate of
losses sustained by the state in the
sinking fund operations for the last two
years has therefore been based safely
upon a hypothesis that 4 per cent bonds
will be at one hundred and twenty or
over in February, 1892; but along with
this calculation is carried another cal
culation showing a total loss of over
SIOO,OOO, even should the United
States 4 per cent go to one hundred and
sixteen in 1892, a result so utterly im
possible that it would be difficult to
find any financier in this state or in
any other state who would contemplate
it for a single second in any transac
tion, either for himself or for any trust
in his hands.
The sinking fund commissioners, by
deliberate act of the legislature, pass
ed in 1883, have been given in specific
terms the option of Investing their sur
plus either in United States bonds or
In state bonds, thus showing that the
state very wisely and properly consid
ered, all other things being equal, that
an investment of the sinking fund sur
plus In United States bonds was as
safe as any Investment In the state
bonds themselves. In this act the com
missioners were directed to purchase
United States bonds, unless It was found
to berfo the best Interest of the state
to buy its own bonds at a discount be
fore maturity. The only question, there
fore, which the commissioners had to
consider was as to whether the trans
action would show a profit by the In
vestment of United States bonds or by
Tlio Kind You Have Always Bought, aiul which has been
in use for over 30 years, has borne tlio signature of
, ' a,1, l ' las been made under his pcr
( 7*"^.. sonal supervision since its infancy.
' *" Allow no one to deceive you in this.
Ail Counterfeits, Imitations and Substitutes arc but Ex
periments that trillo with ami endanger the health of
luiauts and Children—Experience against Experiment.
Castoria is a substitute for Castor Oil, Paregoric, Drops
and Soothing Syrups. It is Harmless and Pleasant. It
contains neither Opium, Morphine nor other Narcotic
substance. Its age is its guarantee. It destroys Worms
and allays Fcvcrishncss. It cures Diarrhoea and Wind
Colic. It relieves Teething Troubles, cures Constipation
and Flatulency. It assimilates the Food, regulates the
Stomach and Dowels, giving healthy and natural sleep.
The Children's Panacea—The Mother's Friend.
The Kind You Have Always Bought
In Use For Over 30 Years.
STOVE NAPTHA, the Cheapest and
Best Fuel on the market. With it you
can run a Vapor Stove for one-hall
cent per hour. Give us a call and be
W. O. Holmes, Bloomsburg, Pa.
Eshleman & Wolf, "
L. E. Wharey, "
W. F. Hartman, "
ihe purchase of state bonds. Of course
the commissioners would be perfectly
justified In buying in their own bonds
at a slight loss as campared with an
investment in the government secur
ities; but when the choice shows by a
simple arithmetical calculation that the
transaction of buying state bonds at an
enormous premium and refusing to
purchase United States bonds must re
sult in a loss of many thousands of
dollars to the state such an operation
is manifestly a gross wrong upon the
state, and worse than a mistake cn
the part of the fund. In considering
a transaction of this sort the commis
sioners, if they can hold the govern
ment bonds until maturity, have only
to consider the question of percentage
realized in Interest of the two transac
tions, and they can then measure to
a penny the loss or gain of the state.
But if tile government bonds must be
sold before maturity, in order to meet
at maturity the state loans which are
offered to them at a certain premium,
the only question for the commissioners
to consider would be as to the lowest
possible point to which the United States
bonds could in any reasonable possi
bility fall from the time of their pur
chase to the time the state loan falls
due. to meet which they must be sold.
If. having fixed such a point of pos
sible decline, the transaction of pre
ferring to purchase state bonds at an
enormous premium to investing the
surplus in United States bonds shows a
very considerable loss, and an enor
mous loss at what would be considered
a reasonable decline in United States
bonds under all circumstances, the
commissioners would certainly be
guilty, either of inexcusable careless
ness or deliberate purpose to sacrifice
hundreds of thousands of dollars of the
state's money. This is exactly the di
lemma in which the operations of the
sinking fund have placed the commis
sioners, and perch upon which horn
they please, they cannot fail to find It
an uncomfortable resting place.
It cannot he fairly said that the facts
and figures herein shown are drawn
from a retrospective view, for at the
time of each transaction the commis
sioners could have made the calcula
tions showing to the state by the adop
tion of the course pursued In each par
ticular transaction, as well as It can
be figured out. That such calculation
was not entered into and did not cover
the action of the commissioners shows
either gross ignorance or gross disre
gard of the state's best Interests, or
something worse.
It is because, therefore, of this state
of facts, which has been admitted to be
true by at least one of the present ac
counting officers of the state, and de
nied by no one. not even by the gov
ernor of the commonwealth, in a re
ported interview in the public press,
that I offer this resolution. If the
showing made by this publication
reached no further conclusions than
those I have stated this resolution to
raise an Investigating committee would
possibly be unnecessary. But, after a
careful examination of the statutes
governing the fiscal and accounting of
ficers of this state, I am clearly of the
opinion that the purchases of the state
bonds and the sales of the United
States bonds were all made in violation
of law, and that the bondsmen of those
Bears the Tin Kind Yu Haw Always Bought
state officials who constitute the sink
ing fund commissioners are liable with
them, and can be held for every dol
lar of interest lost on the United States
bonds sold, and for the excess, at least,
at which the state bonds were bought
above the then market rate. In the
aggregate the losses in these two ways
alone exceed $60,000 in one year.
Let the house clearly understand
that I am not now speaking of the
actual losses sustained by the state
through more Intellectual mismanage
ment, which would be a sum of nearly
a quarter of a million, but I am speak
ing of the actual loss incurred by an
open, palpable, defiant violation of the
letter of the law. Under that law I
believe the sinking fund commission
ers and their respective bondsmen can
be held to accountability.
There is one other point In this dis
cussion that has not yet been brought
out to which I wish to refer. At the
very time the sinking fund commis
sioners were selling United States
bonds at a loss of interest and buying
5 per cent of state loans, payable In
1802, at from 115 to 118%, the state's
4 per cent loan, payable t'n 1912—25
years to run—were selling on the mar
ket at 121. Had the state bought the
latter loans, even at 130, it would have
made a large profit as compared with
the state ss, payable in 1892, at the pre
mium actually paid by the sinking
fund commissioners.
It Is almost unnecessary to add that
after an attempt at discussion and
further attempts to press the resolu
tions to an issue the matter was side
tracked and the resolutions were care
fully buried before the end of the ses
If everyone knew
The superior quality
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Their gentle, easy
Action, their prompt eflect upon
The torpid liver and inactive bowels.
It would be only a short time when
They would be used to the exclusion
Of every oilier kind Hood's Pills
Are the only pills to take
With Hood's Sarsaparilla.
The One True Blood Purifier.
What do the Children Drink ?
Don't give ihem tea or coffee Have
you tried the new food drink called
drain O ? It is delicious and nourish
ing and takes the place of coffee. Tne
more Grain O you give the children
the more health you distribute through
their systems. Grain O is made of
pure grains, and when properly pre
pared tastes like the choice grades of
coffee but costs about the price. All
grocers sell it. 15c and 25c.
10 1 a-4td
For Infants and Children.
The Kind You Have Always Bought
sJaaTure of
; Fine PHOTO
| The best are
the cheapest.
111,1,1 COPYMG*Sr ib a "
ami tender little juicelets lor the chil
dren, ate all right, hut papa and ''the
boys" want a good, big, juicy steak,
roast or chop when business or school
duties are over, and we can cater to
them all. Our stock of prime meats is
unexcelled for quality, and we send
them home in fine shape.
Butter per lb $ ,aa
Eggs per dozen .30
Lard per lb .08
Ham per pound .10
Pork, whole, per pound ,06
Beef, quarter, per pound.... .07
Wheat per bushel .80
Oats " " 35
Rye " " .50
Wheat flour per bbl 4.40
Hay per ton 9 to $lO
Potatoes per bu5he1,......... .70
Turnips " " .5
Onions " " .80
Sweet potatoes per peck .20
Tallow per lb .05
Shoulder " " .09
Side meat " " .c 8
Vinegar, perqt .05
Dried apples per lb .05
Dried cherries, pitted .12
Raspberries . 13
Cow Hides per lb .3$
Steer " " " .05
CalfSkin .80
Sheep pelts .75
Shelled corn per bus .60
Corn meal, cwt 1.25
Bran, " .95
Chon " .93
Middlings " .95
Chickens per lb new .10
" "old 10
Turkeys " " ,
Geese " " .14
Ducks " " .01
No. 6, delivered 2.60
" 4 and s " 3.55
" 6 at yard 2.35
" 4 and s at yard 3 60
Tha Leading Conssrratory of America
Founded i n 1863 by
* full information.
FRANK W. HAW, Oneral Manager.
| A Visnto the SICK ROOM ;
I SPOT with ''y v ::
| jtolui&cmV
| Belladonna Plaster y
Caveats ami Trade Marks obtained, and at
Patent business conducted for MoiiKkATE
ENT OFFICE. We have no sub-agencies, at
business direct, hence can transact patent busl
ness In less time and at Less Cost than tbose re
mote from Washington.
Send model, drawing or photo, with descrlp
tlon. We advise If patentable or not, fret of
charge. Our fee not due till patent Is sccund
A book, "How to Obtain Patents," with refer
antes to actual clients In your State.Counly, o
town sent tree. Address
c. A. SNOW & C 0„ Washington, I>. C
(Opposite U. S Paient ottlce."
J| Olinjei bvmititie* tho^holr.
If over Falls to 11 en to re Gray
Hitlr to Its Youthful Color.
Caret A^hair^ tolling.
10-.f-U 15.
Iry the COL UMB]AN a year.