FREELAND TRIBUNE. Zstabliibei 1888. PUBLISHED EVERY MONDAY AND THURSDAY FItEHLANI), I'A., NOVEMBER 3, IMS. THE BUSINESS. How It lias Grown to Its Present Aw ful Proportions—Democratic and Republican Rule Compared, In connection with state politics In Pennsylvania there arc few things more Interesting or instructive and absolute ly nothing more fully demonstrable of the curse of the machine rule than a study and comparison of the various general appropriation acts of the state legislature. Mr. Wanamaker has fit tingly supplemented the work of the Democratic party, its conventions, com mittees and press, In explaining to the people that Uiese acts cover many mon strous extravagances and villainous steals. There are not many of the features of them more prolific and as- ; founding In this range of development | than those that touch the sums voted for legislative junkets, "extra services" of legislative committees, and the j multitudinous commissions that are constituted for the sole purpose of put ting unearned money into the pockets of the henchmen and retainers of the dominant party throughout the state. A carefully compiled table, made up from an item-by-item search of the general appropriation acts forthepa3tls years shows that in 18S3, the first year of Governor Pattison's first administra tion, there was a total of $7,348.91 awarded for these purposes. These included the expenses of Investigating the State col lege, the clerical force of the several state departments, the western Penn sylvania insane asylum and peniten tiary, and the accounts of that expen sive appendage to our state govern ment, Mr. John C. Delaney, then occu pying the position of librarian of the senate, which had no library. They covered also the cost of the Bos ier-Wagner contested election case ($1,185) and of a commission selected to report a comprehensive system of bookkeeping for the several depart ments. In the year ISSS there were still fewer appropriations of this kind, the total being but $3,918, out of which an Item of $1,200, for the expenses of the com mittee to investigate the Standard Oil trust, Governor Pattlson vetoed, leav ing a balance of but $2,718.43 taken from the treasury by the general appropria tion act, as finally made a law, for these purposes. In 1887, however, General Beaver hav ing in the meanwhile become governor, these appropriations swelled to $10,965, ! an increase of several hundred per cent. As illustrating the careless and fraudulent methods that had already begun to prevail, SO,OOO of this total was voted in a lump sum for four investi gations, an excursion to Gettysburg and a member's funeral. It was not until 1889, however, that there was anything like .a really riot ous revel along these lines. Beaver was still governor, and the aggregated items In the general appropriation bill for these unnecessary and unlawful uses reached the enormous sum of $123,868,- 50. These included $17,860 for a house contest and $39,759.72 for a senatorial contest, entirely unprecedented figures, $15,000 for a committee to examine and report upon the charitable and correc tional systems of the commonwealth, $6,000 for a commission to codify the road laws, another $6,000 for a com mittee on industrial education and $10,700 laid out in taking the legislators to participation in the centennial inauguration of George Washington as president. And Beaver never Interposed a single veto. A unique item in this list is SIOO for a committee on amended orthography. There was certainly a bad spell of ap propriation legislation about that time. It was so bad, in fact, that its cost to the taxpayers was greater even than the accomplished anil proposed similar steals of the 1897 legislature, including both those in the general appropriation and those in the special appropriation bills, and the citizen who believes in hoiiesty and economy in state expendi tures may be pardoned for asking where were Wanamaker and Swallow then? In 1891 the Democrats again had the governor and that year the appropria tions for junkets, &c\, in the general act were but $73,859.33, and of these Mr. Pattlson vetoed Items aggregating $34,116. leaving the actual outlay but $39,743.23, or less than a third of Beav er's last term figures. In 1893, warned doubtless by these ve toes, the legislature made the general appropriation act cover only $3,406.12 of such expenditures. But the Republicans came in again in 1895, and that year tie- total was $115,486.92, or about $15,000 more in the general bill than there were in 1893 in both the general ami the special bills together. Here again was a sharp summons to Republican reformers, but they ftfiled to put in an appearance. Bastings had rot yet fallen out with the machine. His vetoes, in 1895, of this class of items amounted, all told, to $40,715, leaving a balance awarded of $74,771.92, or nearly 22 times as much as the total for Pattison's last term. The 1897 legislature voted for pur poses within the category under discus sion $41,401.43 in the general bill and $60,123.02 in special Dills. Of the aggre gate, $101,524.45, Governor Hastings ve toed, all told, but $30,823.90, leaving the actual waste or fraud at $70,691.55. There was absolutely no excuse for more than probably a tenth of this outlay. It comprehended, as fully ex plained In another article, very many audacious swindles in addition to the handful exposed and overridden by the governor. And yet the cost to the state of the whole business was much less than that of 1895 or that of 1889, though, In those years the Democratic protests went utterly unheeded by the so-called Republican and Prohibitionist reform ers, and the perpetrators of the scoun drelly grabs pocketed the swag and were in many instances triumphantly returned to the places they had dis graced. No fair man can ponder and digest the figures here given without being forced to the conclusion that, both by promise and performance, the Demo crats of Pennsylvania have approved their title as the only genuine and re liable reformers of corruption and inex cusable waste in the matter of the state expenditures. THE RIGHT IAN FOBJOraOB Fvhy a Palmer and Buckner Leader Supports Mr. Jenks. A 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 large proportion of Democratic readers, has been hitherto very unfriendly to ib' Democratic nominee for governor, icing inspired to this course by certain well known influences which were against the Democratic party two j 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 ov r hrow the enemies of honest govern ment. Is showing The Ledger the er or of its ways, and that journal is now levcting every'day a large amount of ipace to the Jenks meetings, and edi orially is pursuing a much more com mendable course with regard to the 1 itate contest. Our contemporary gives ! i solid column, on its editorial page, j 0 Samuel Dickson, Esq., one of the j ending lawyers of the country, who i hows In the strongest language not nly why all Democrats of his way of hinking should support Mr. Jenks — j md lie was one of the Palmer and 1 Juckner leaders in 1896 —but all other ' ;*ood citizens as well. Mr. Dickson ! hue writes: "As many independent voters are j tpparently in doubt as to whether to .*ote for Dr. Swallow or Mr. Jenks. a tatement of some of the reasons which * ill lead many of the sound money Democrats to vote for the latter may !>e of interest. The first is, that the powers conferred and the duties Im posed upon the governor of the state ire of such transcendent Importance hat the question of personal fitness hould be given predominant weight in he choice. In point of fact, the office ■ f governor is of singularly little con sequence relative to party politics. He has but little patronage, and, in re cent years, at least, he has not been 1 party leader. On the other hand, he has a controlling Influence In the mak ing and amending of laws of the state, vhich really come home to the people. Every one, who knows anything, knows hat the laws which govern the tenure • f 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, vhen it Is remembered that at the ses sion of 1897 over 400 new statutes were •nacted, making up a volume of over 500 pages, it is apparent that the In cessant tampering with our laws is an imminent danger to every property nvner 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 •re those of Jefferson: Is he capable? Ts 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 tha ;>pen practice of his profession, and is known to his neighbors and the bench and bar of the state as an open book. It is the common and concurrent tes timony of all that he had en riched a vigorous and capaci ous intellect by unremitting and discriminating study, and th€ I'ffoet 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 that section of the state, and his arguments before our own supreme court and the su preme court of the United States and ihe 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 be 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 fall to consider himself fortunate If he should secure the services of such a man. Now that we are all compelled to choose one us our adviser and rep resentative at Harrlsburg, 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 Slmonton, as accomplished a Judge as sits iri any court of the state; and when tailed 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 lire which destroyed the capitol build ing. It is inconceivable how any busi ness man would be willing to trust one st reckless and incautious to pass upon Ihe revision of our laws, or to use the National Guard to enforce order, ffe 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 ctuali fications of a loader. "The sentimental influence upon na tional politics, by the election of a suit able person for governor, it likely to be beneficial rather than otherwise, hut even if temporarily prejudicial, it is al ways wise to bear In mind that as true reform can only be worked out through rne or the other of the two great par- j j ties, It is essential to the safety and welfare of the people that they should 1 be 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, that each may know that the only hope for preference in the popular vote is in greater dili gence for well doing. There is no dis- I clpllne for official misconduct like de- 1 feat, and there Is no safeguard for the party In force like a powerful opponent; but no permanent party organization can be effected and 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 bank, it startled the state, although the public was not unprepared for the cropping out of that sore on the i body politic. But nearly ten years ago j the Democratic minority In the state legislature, led by Mr. S. M. Wherry, of j Cumberland county, not only pointed out a whole orchard of golden fruit, dropped Into the laps of 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 olutions: Resolved, by the senate and house of representatives In general assembly met, that the sinking fund commission ers shall Invest, on or before June 1, 1889, all of the cash surplus in the sinking fund in the United States 4 per cent bonds, except six months in terest on the state debt, and enough to meet any actually pending negotia tions for the purchase of state loans, and $250,000 additional, provided such funds can be purchased at no higher premium than 25 cents on the dollar, and that after June 1, 1889, all 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 States 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 largo 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 'or purchase to the state; and that if 'he state bonds cannot be purchased it 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, .he commissioners shall proceed to pur- < "base 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 >ne-half of 1 per cent less than the interest which would be realized from the United States bonds if held to ma turity. Also be 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 sinking fund on the Ist of March, 1889, together with a statement of where such surplus is deposited, and a list of banks and banking institutions where such funds are deposited, with the amount deposited In each bank. 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 1886 and 1887, and 1887 and 18S8, pur chased a bond at a higher rate than the market rate, thus violating the act of February, 1876, as amended by the act of June, 1883, making such purchases at rates from % 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, 18S8, $1,000,000 of United States bonds, which were invested in the funds, which sale was In violation of the act of 1883, which declares that such bonds shall only bo sold when the money shall be required for the ex tinguishment of the public debt: and Whereas, the proceeds of these bonds were not necessary for the extinguish ment of the public debt, for the reason that when such 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, j although $300,000 worth of state j bonds had been purchased, there still remained in the fund, not reckoning the sale of United States, bonds, a cash 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 date by the sale of said $1,000,000 of United States bonds which now lies a useless surplus in the | cash in the state treasury, amounting . to $60,000, and at least for the excess of premiums paid on the purchase of state bonds above a legal limit, then their market rate, amounting to at I least $7,000; therefore, be it ! Resolved (if the senate concur), that a. committee of five members of the house, and three members of the sen ate, be appointed to Investigate said transation 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 bill or otherwise. Upon this resolution Mr. Wherry Said: 1 desire to say a few words In ex ! Sanation of wnat is proposed under .his resolution. The state's fiscal yoar begins Dec. 1. The last two fiscal years are designated 1886 and 1887 and 18S7 and 1888. In those years the state lost nearly a quarter of ii 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; and this act was passed, as is shown on 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 premise 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 held by the state to pur ohase state bonds at an enormous pre mium. 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 eurplus 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. 1 invite your attention now to the following publication, which you have received, entitled "Mismanaged state bonds.' MISMANAGED STATE FUNDS. An Examination of the Sinking Fund for the Past Two Years. How tha 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, ISB9. The reports of the state sinking fund commissioner's operations for the fiscal vears 1880 and 1887 and 1887 and ISSB, including transactions from Dec. 1, 1886, to Dec. 1, 1888, hove been made to the legis lature. Let the public lock at the re sults. The operations for these two years have entailed a loss of about a quarter of a million dollars, and the ac umulation 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 rears 1887 and ISBB of $1,000,000 of United States 4 per cent government bonds at one hundred and twenty-four and seven-tenths. 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 United States 4 per cents would fall to one hundred and eighteen in 1892, 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 1892 before the stale 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 ihe 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 hove been a losing transaction, unless the United States 4 per cents had declined to be low one hundred and sixteen in 1892, n result which Is almost an utter flnan :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 of J. Cooke in 1873, would put 4 per cent government bonds below one hundred and twenty at any time between now and February, 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 bo 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- J ed in 1883, have been given in specific | terms the option of investing their sur- I plus either in United States bonds or in state bonds, thus showing that the state very wisely and properly consid j ered, all other things being equal, that i an investment of the sinking fund sur plus in United States bonds was as safe as any investment In the state I bonds themselves. In this act the com missioners were directed to purchase United States bonds, unless it was found to be to the best interest of the state to buy its own bonds at a discount be fore maturity. The only question, there- I 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 : e purchase or state bonds. Of com tie II e commissioners would be perfectly Ju tified in buying in their own bonds at a slight loss as campared with an investment in the government secur- j ilics; but when the choice, shows by a t simple arithmetical calculation that the transaction of buying state bonds at an J enormous premium and refusing to J purchase United States bonds must re- J suit in a loss of many thousands of j dollars to the state such an operation j is manifestly a gross wrong upon the i state, and worse than a mistake on , 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 Ihe 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. Rut If the 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 fall to find it an uncomfortable resting place. It cannot be 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 mode In violation of law, and that the bondsmen of those 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. Tn 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 mere intellectual mismanage ment, which would be a sum of nearly a quarter of a million, but I am speak ing of the actual lops incurred by an open, palpable, defiant violation of the letter of the law. Under that law 1 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 l 1802, at from 115 to 118%. the state's 4 per cent loan, payable in 1912—25 years to run—were selling on the mar - ket at 121. Had the state bought the latter loans, even at ICO, it would have made a large profit as eomparrd 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 sion. The Democratic party has for many years Insisted that the management of the finances of the state of Penn sylvania has been reckless and Inde fensible. The late developments Inci dental upon the failure of the People's bank, and the admission that the man ipulation of state funds In various oth er banking institutions were of a cor rupt character, should be no news to the people, because at various times disclosures have been made through the Democratic minority in the state legislature of daring and flagrant mis use of the people's money entrusted to the state treasurers and auditors gen ral. In the most direct way the spe cific charge was made in the session of the legislature of 1889 that a fraud ulent misuse of the sinking fund mon eys were being, and had been, made by Mr. Quay and Mr. Quay's creatures. These charges were formulated by Mr. S. M. Wherry, of Cumberland county, who made a strenuous, but in effective, effort to have the abuses cor rected. Mr. Wherry did more than that -he showed beyond question that a de liberate and corrupt misuse of the se curities in the state sinking fund had been made. On March 22, 1889, he intro duced a joint resolution calling atten tion in a conservative way to the fact that the sinking fund was being im properly manipulated. On March 25 he offered a series of resolutions, re clting the further startling fact that the sinking fund commissioners had sold, in December, 1887, and January, 18SS, $1,000,000 of United States bonds, which were under the Taw a permanent investment of the fund. This sale vio lated not only the constitution, but the statutes made in pursuance of the constitutional requirements. In con action with this series of resolutions, Mr. Wherry had spread upon the rec ords of the legislative proceedings of that date a carefullly prepared memo randum showing that this sale of bonds had resulted in the loss of a quarter of a million dollars to the state. These United States bonds were deliberately taken from the sinking fund treasury, then under the domination of Mr. Quay, and by the direct action of Mr. A. Wil son Norris, then the auditor general, and Mr. Llvesey, of the treasury de partment. Mr. Llvesey soon after left the state and has been absent ever since. He Is supposed to be still absent from the state because of his connec tion with this and with other misuses of state funds. The facts presented by Mr. Wherry showed conclusively that for the two years of 1886, Including transactions from Dec. 1, 1886, to Dec. 1, 1888, these manipulations had en tailed a loss directly of two hundred and fifty thousand dollars upon the state. It showed that In the early part of the fiscal year of 1887 one million dol lars' worth of United States 4 per cent bonds were abstracted from the vaults of the treasury, where they belonged as a constitutional part of the sinking fund, sold and the proceeds placed In the various banks favored by the state political ring, ot which Senator Quay was the head. Mr. Wherry, In a very conservative statement, declared that after a careful examination of this transaction, so suggestive upon its face, he was of the deliberate opinion that it was so much in violation of the constitution and the law, and that the bondsmen and the state officials who constituted the state sinking fund com missioners were liable for the loss en tailed, and should be held accountable for every dollar of interest lost on the United States bonds sold, and for other losses to the state. He declared that in the aggregate the losses in two transactions alone exceeded sixty thou sand dollars In one year. The actual and Indirect loss, he declared, sustain ed by the state would amount to nearly $2,000,000. He said: "At the very time the sinking fund commissioners wep selling United States bonds at a loss of Interest and buying 5 per cent state loans, payable in 1892, at from 115 to 118%, the state's 4 per cents, payable in 1912—25 years to run. were selling on the markej. at 121. Discussion of Mr. Wherry's resolutions were, of course, inevitably cut off. After a number of Ineffectual attempts to have his charges considered, even after the report from the ways and means committee provid ing for an Investigation and adlustment of this mismanagement of state funds had been presented, he was compelled to abandon his effort. His resolutions were carefully burled in committee. Such is the mere record spread upon the journal of the house of representa tives. showing a transaction even more daring than that by which the Peo ple's bank "plum tree" was shaken. The senior senator, when ho wanted a loan for his family of a hundred thou sand dollars, agitated the golden fruit plant of the state treasury to the extent In one case at least, of one hundred thousand dollars. In this Instance, when his friend and chum, Mr. Norrls, was up the tree, a shower of a million dollars was shaken out of the sinking fund. It was in vain that the most forcible and capable Democratic mem ber of the house of representatives at that time or since made a protest. The state treasury stain which has been discovered since by disgusted and despairing Republicans was pointed out, and it should not be forgotten by a Democratic minority In the legisla ture. Since then the chickens have come home to roost in the Republican hencoop, but the barnyard might have been clean enough today, even for Mr. Wanamaker, had the way blazed out by Mr. Wherry been followed. The Democratic party often before had. and as many times since, has attempt ed to lift the lid off of the treasury corruption pot, but until now, no mat ter how many factional fights have oc curred In the majority party, the Re publican factions have sat upon the lid and held it down, although It burn ed the cuticle of some of them who hung on to the edges. TEXTS FKOM WANAMAKER. Pungent Sentences From His Speeches Through the State—The Forty Years of Debauchery Under .Republican Machine Rule Abundantly Kxposod. The Legislature of 181)8 Frightfully Bad, But No Worse Than Its Prede cessors Under the Same Control. Under Quay we have the worst of 111 ages, the degraded evil age of conscienceless, debauched politics. At Lancaster, March 16. Legislation is born of Injustice, In iquity and crime; trusts are fostered Rnd protected and legitimate business interests assailed. At Lancaster, March 16. The legislature of 1897 was not worse than its predecessors have been under the same control. At Lancaster, March 16. They (the Repulriican legislators) aimed to control the liquor interest by repealing the Brooks high license law and substituting a partisan and po litical excise board to issue licenses. At Lancaster, March 16. The state has lost $2,000,000 through not charging interest upon deposits in the banks during the sway of Quay. At Lancaster, March 16. Quay has had the treasury for 15 years, which is believed to have yield ed SIOO,OOO campaign funds annually and enabled treasurers, on $5,000 sal ary, to retire rich at the end of two years. At Lancaster, March 16. For nearly 40 years this state has been under the control of the Cam erons, father and son, and their suc cessors, M. S. Quay and W. H. An drews. At Royersford, April 8. The state treasurer and auditor gen eral draw $1,200 a year as members of the board of public accounts and buildings and grounds under the ap propriation act of 1895, but contrary to law. At Ephrata, March 18. The general appropriation bill should be called Quay's ammunition bill. The sum of $68,500 was voted in 1897 for contingent expenses of the various de partments. It Is Impossible to tell how much of this is honestly used. At Bryn Mawr, April 13. Contracts for buildings for the state cost double to allow tribute to the tax leech of the state. • • • Half the legislation at each session marks a raid upon the treasury for the benefit of the insatiate machine. • •. • They promised him (Gobin) the lieutenant governorship in return for four dele gates from Lebanon who would do In the state convention the bidding of Senator Quay. At Lebanon, April 16. There was a time we could boast of a tree press. Today It exists in Penn sylvania only in name. * * • Some of the great telegraph systems are no longer safe conductors of private mes sages. The superintendent of one great company sits In the councils of the machine. At Bellefonte, April 19. Official figures show that the aver age Increased cost of running the three departments of the state government In the past four years (Hastings' term) was $976,593.20, or about 43 per cent more than the average cost for the preceeding six years. At Phillipsburg, April 22. This I know and speak deliberately, without malice or prejudice, that since 1861 the wheels of Pennsylvania's gov ernment have rolled backward and the Carnerons and Quays have been re sponsible therefor. Whether done by them in person or through Andrews and other well paid servants, they are equally responsible. At West Chester, April 28. Two United States senators and a score or more of congressmen with a state administration in and about the state house at Harrisburg of their choosing, the bosses and the legislature owned by the bosses constitute a giant that utterly defies the whole of Penn sylvania's population and makes our fair state the object of ridicule the wide world over among all men except poli ticians who spell Pennsylvania with three P's. It is Pennsylvania, Poli ticians' Paradise. At York, May 2. Courts of law, with Judges, some of whom can only have their places by the grace of the Quay-Andrews cabal, hold court to try burglars and bullies, but not a finger is laid upon those who commit misdemeanor in legislative and administrative ofllce. The starving man who picks a lock is severely pun ished. The slick aristocrat of politics picks the treasury through appropria tion bills and contracts and the sol emn courts of Pennsylvania sleep with their eyes open. At Huntingdon, May 5. A practical politician tells me that more good men can be bought with SIOO worth of passes than with SIOO cash. At Huntingdon, May 5. The Lexow committee of W. H. An drews and Quay to blackmail Phlladel phlans probably cost $5,000, or at the utmost SIO,OOO actual expenditure at honest and usual rates of expenses charged to individuals, and Senator Andrews fought desperately to get $65,- 000. At Heading, May 6. Absolutism Is the worst form of des potism, and absolutism exists in its worst form in Pennsylvania today. In other states men rule by genius. In Pennsylvania it is by boldness, de fiance and brutality that the bosses maintain their power. At Reading, May 6. The actual expense for every day the legislature (1°97) was in session was more than $3,000. Thirty days were lost by holding back the committee ap pointments, 30 more by the Inexcusable absence of the speaker of the house (since appointed by McKinley to the fattest oifice in the state), and 30 more In the movement to protect beer. Un less these awful extravagances are stopped by the smashing of the ma chine, and stopped this very year, the taxpayers will, soon face a deficit of $4,000,000 or $5,000,000. At Westfleld, May 9. They got time vainly to try to mend the broken banks that had the slate money. Down went Smedley Darling ton's West Chester bank with $60,000 state money; the People's bank and the Chestnut Street Philadelphia banks, with $215,000, and the Guarantors' Cooper shop of finance In Philadelphia, marking Philadelphia with three B's as the Banner Bank Bankrupt state in 1898 in all the United States. And all these banks were connected by de posits and management with the poli tics of our state. At Weilsboro, May 11. The Republican party as at present constitute.! is a most dangerous polit ical trust in Pennsylvania. Kaston, May 13. I believe it would be better for a ?reat party to go down rather than permit a few thousand officeholders oy virtue of patronage control to be -omc absolute rulers of six millions of people. At Mount Vernon, May 19. He (Quay) has filled the statute books of Pennsylvania with laws giv ing to the great corporations your valuable franchises. He has so dlrect td legislation that the privileges of cor porations are well nigh absolute, while their interests have been so well pro tected that an unjust proportion of tax ation falls upon the people. At Athens, April G. At the last session he (Quay) killed the anti-trust bill. At Athens, April 6. The needs of overcrowded asylums and unhealthy hospitals count as naught against the request of the man with a political pull and who can de liver state delegates. At Athens, April 6. Whoever stands by the existing ring writes approved over the conduct of the state legislature. At Pottstown, April 9. The treasury thieves have not been prosecuted because laws have been en acted and so amended for the past 15 years that those with the backing of the machine dare openly violate the law wilhout fear of harm. * * The cutalogue of crimes centering at the capitol, all done by sworn and un faithful public servants, is the wonder of the time. At Ashbourne. The war has given great opportuni ties for the play of merciless politicians and soulless speculators. Men have been enriched over night in supplying arsenal stores and filling ammunition contracts. At Clearfield, April 21. Every piece of proposed legislation that steps up to Harrisburg for proper authority is stopped at the threshhold and is put into cold storage until a good portion of the capital is provided for the Quay election bank. At Clear field. April 21. All the banks that get deposits get them only with a string that is pulled when elections are going on. Phoenix ville, May 27. Pennsylvania is no better off than the Chinese of California. Instead of six companies we have one company of confederated Quayites. At Media, Sept. 24. OASTOH.IA, Bean the _/y Ihs Kind You Hae Always Boutfit
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