Rensselaer Semi-Weekly Republican, Volume 40, Number 67, Rensselaer, Jasper County, 24 April 1908 — ANSWER TO MIERS [ARTICLE]

ANSWER TO MIERS

tn Masterful Address Before State Convention Gov. Hanly Refutes Allegations of Extravagance. DEMOCRATIC CHARGES DISPROVED Honesty and Fair Dealing In Politics Not a Virtue of the Democratic Convention Chairman —Under the Old Regime Democrats Pocketed the Fat Fees; Under Republican Business Administration the Fees Go Into the State Treasury. In his speech before the Republican State Convention, Governor Hanly answered Chairman Miers of the Democratic convention as follows: The distinguished chairman of that convention declared "we must have honesty and fair dealing in politics.” I believe in that expression, and I pause to give him a lesson in "honesty and fair dealing in politics” that will be good for him to study. The lesson relates to bis arraignment of the present state administration in public affairs. It consists of speclflo and exact facts and not vague generalities. By reference to the records I find the last Democratic state levy was made by the general assembly of 1893, fifteen yean ago. Here it Is: General fund 10.00 cts. State school fund 13.50 cts. Benevolent Institutional fund 5.00 cts. 81nklng fund 3.oocts. Permanent endowment fund. .50 cts. Total 82.00 cts. And here is the state tax levy for 1908: General fund 9.00 cts. State school fund 13.60 cts. Benevolent institutional fund 5.00 cts, Sinking fund 8.00 cts. Educational institution! fund 2.75 cts. Total 33.35 cts. You will observe that the total levy Is but 1.35 cents higher on the hundred dollars than in 1893. The increase did not obtain until last year. It Is due to an increased levy for state school tuition purposes and to a 2.76 cents levy for the three state educational institutions—the State Normal school at Terre Haute; Indiana University at Bloomington, and Purdue University at Lafayette. The general fund levy for 1908 is lower than in 1893. The benevolent institutional levy is the same as in 1893, though the inmates of these institutions have increased 25 per cent. Need of the Educational Levy. The necessity for the specific levy of 2.75 cents for the educational institutions named becomes apparent upon a comparison of the enrollment these institutions as it then was and as it now is. —Enrollment in 1893 — State Normal School 1,330 University 582 Indiana Unlvers.ty 633 Total .....2,545 —Enrollment in 1908— State Normal School will reach.. 2,250 Purdue University will reach.... 2,080 Indiana University will reach.. .2,000 Total 6,330 A difference of 2,785, an increase of more than 100 per cent. “Honesty and fair dealing fa~poll? tics” demand that our friends be explicit. If given power, which of these several levies will they reduce? Certainly not the general fund, for that is lower this year than their last levy. Not the school tuition fund, for it is only 1 mill higher than their last levy. Not the benevolent Institutional fund levy, for it is the same now as their L.3t levy, notwithstanding the great increase the number of inmates. Not the sinking fund levy, for it is the same now as then. What then is there left? The educational institutional fund levy? The 6,330 boys and girls assembled in these three institutions ar*, in the main, the boys and girls of our own people. Do they propose to take away this levy and doprive these Institutions of an Income that makes It possible for them to adequately meet the state’s obligation to these 6,330 students? If so, “honesty and fair dealing in politics” require that they say so.

Democrats' Fat Fees. Credit is taken by the chairman of that convention to his party for the enactment of the “fee and salary law of 1891, under which fees and salaries of all overpaid state and county officials were reduced to fair compensation." The latter part of this statement Is but the conclusion of the speaker, "Honesty and fair dealing In politics” demanded that he give the facts showing the results of the law, and let the people draw the conclu|ion as to whether the “fees and salaries of state offloers" were reduced to fair proportions. and fair dealing In polities" required that be state the fact that under the fee and salary law of 1891, a Democratic auditor of state, J. O. Henderson, drew in four years, In salary and fees, 140,473.18, which he was legally entitled to draw, and In addition thereto, $49,616.46 In fees, to Which he was not entitled, and tor the recovery of which a suit Is now pending In the oourts, a total In four years of $90,089.88 as personal compensation. In addition to this it cost the state $96,990 In the four years for sal-

ary of assistants and other office ex- . ponses, a total for the department oi $116,289.88. "Honesty and fair dealing in politics” required that he state the fact that' a Democratic attorney general, the late A. G. Smith, received under the fee and salary act of 1891, in four years, fees and salaries aggregating $144,290.74 for his personal compensation, and in addition thereto his assistant received in fees and salaries Jn the four years $95,980.81, a total of $240,271.55. "Honesty and fair dealing in politics” required that he state these facts and let the people Judge as to whether the fees and salaries provided for by the fee and salary act of 1891 "reduced the fees and salaries of state officers to fair compensation.” State Officers’ Expenses. In support of his charges of extravagance, he cites the appropriations made for the several state offices — governor, attorney general, secretary and auditor of state —for the years 1893 and 1907, for the purpose of comparison. He gives those of the goveraor’s office for 1893 at $12,020, and for 1907 at $68,550. He gives those of the attorney general’s office for 1893 at $4,800, for 1907 at $20,050; those of the secretary of state for 1893 at $8,200, for 1907 at $15,390; for the office of auditor in 1893. $10,000; in 1907, $41,360; for Special appropriations for the office of auditor for 1903 $2,000, for 1907 $11,260. He Intended by these figures and this comparison to convey to the minds of the people of thid state the impressidb that these appropriations represent the actual cost of administering these respective offices for the periods of time named. "Honesty and fair dealing tn politics" required him to explain that $40,000 of the $58,550 appropriated to the governor’s office in 1907 was not for the expenses of that office, that not a dollar of it could be so used; that the oontingent fund of SBO,OOO is an emergency fund which can be used alone for public purposes, and that the civil and military fund of SIO,OOO is a similar fund. Here is the exact cost of administering the governor’s office for the year 1907, as shown by the public records: House rent ....$ 1,607.78 Office expenses 885.69 Governor’s salary 8,000.00 Governor’s secretary t salary. 2,500.00 Governor’s clerk, salary .... 1,500.00 Governor’s messenger, salary 1,000.00 Total $15,292.47 as against $12,020 in 1893. In his figures the salary of the executive accountant, $2,500, and ar' traveling expense fund of $250, is charged as an expense of the office for 1907. This is an error. These two appropriations were not available for the fiscal year 1907, but a-e avfiilable for the present year. are justifiable. Value of Executive Aocountant. The executive accountant is a part , of the new system which has put an I end to many long-standing abuses in die administration of state administrative offices, and which resulted, as we all know, in peculation of public monkeys, sequestration of fees and other misuses of public funds year after year, aggregating in twenty years $48,068.74 under one auditor, $74,569 under another, $49,616.45 under another, $13,511.57 under another, $154,896.78 under another; a total of $340,662.54. Had the office of executive accountant existed during the last twenty years he would have drawn $50,000 in salary, but his work would have saved the state $340,662.54, or a net of $290,662.54. Do they propose to strike down the appropriation for this officer and go back to the old system? If so, let them answers— The contingent funds mentioned above are used alone for public purposes, sometimes to meet the exigencies of fire and flood, sometimes to help out state benevolent institutions where the general assembly overlooks per capita allowances; sometimes to suppress riot and insurrection; sometimes to put an end to Monte Carlos conducted and operated by the national chairman of the Democratic party, and sometimes to ferret out and prosecute persons guilty of whitecapping, defended by the distinguished chairman of the late Democratic convention. If these gentlemen during the remaining months of my Incumbency of the governor’s office will be less active in the violation of the laws of the state and in their defense of those who violate its laws, there will be less occasion for the expenditure of these contingent funds.

Mlers’s Deceptive Figures. "Honesty and fair dealing In politics" demanded that he, In giving the appropriations for the offices of attorney general, secretary of state and auditor of state, state the fact that In 1893 the salaries of these three officers were but nominal and that the bulk of their compensation was paid in fees collected in the office, and that at the present time neither of these officers receives a penny beyond the salary stated In the appropriation, s "Honesty and fair dealing In politics” required him to state that In four years (1890 to 1894) a Democratic attorney general of the state drfew, as heretofore shown, SIO,OOO In salary, the appropriation named by him, and, In addition, $134,290.74 in fees, a total compensation of $144,290.74; that during the same period a Democratic assistant attorney general drew $6,000 In salary, ths appropriation named by him. and, In addition, fees In the sum of $89,980.81, a total of $96,980.81, and that the cost of administering the office of attorney general for the last (our years of Derr>' jrmtlo administration aggregated in fees and salaries to the attorney general and his assistant 1240,271.65.

"Honesty and fair dealing in polL Oca” demanded that he stats the tect that the office of attorney general has been administered during the last four years at a total expense of $77,896.83, a difference of $162,375.22 between four years of Democratic administration of the office and four yeajrs of Republican administration. "Honesty and fair dealing in politics” demanded that he state the fact that under.the last four years of Democratic administration (1891 to 1895) it cost, in fees and salaries, $41,481 to administer the office of secretary of state, the records in the auditor’s office showing this fact The books- of the secretary of state’s office are missing, and the exact amount of fees collected can never be known. “Honesty and fair dealing in politics’’ required that he state the fact the office of secretary of state has been administered in the last four years at an expense of $67,642187, an excess in expense In four years of Republican administration of $26,161.87. Secretary of Btate Office Business. But in this connection "honesty and fair dealing in politics" required that he explain the fact that from 1891 to 1895 the office, so far as the auditor’s reports show, received $157,387.01 in fees, and that during the last four years there has been collected through" this office $645,260.65, a difference in gross receipts of $487,873.64 and a difference In net receipts of $461,711.77. The volume of the business transacted in this office, it will be noted, has been four times greater during the last four years than the four years from 1891 to 1895. The question of the extravagant or the economical administration of this office can be dearly and accurately illustrated in a single sentence: From 1891 to 1895 it cost the state in fees and salaries and expenses 26.3 cents for every dollar collected by the office. From 1904 to 1908 to cost 11.5 cents for every dollar collected, a difference of 14,8 cents on each dollar collected. This difference measures the .difference between Democratic economy and Republican extravagance. Under recent legislation requiring foreign corporations doing business in this state to pay an additional fee on increase of capital stock and for filing reports, the present secretary of state has collected more than $11,600 within ten months, and on account of reports of domestic corporations, $4,450.60.

In the Auditor's Office. "Honesty and fair dealing in politics" required that he state the fact that it cost during the last four years of Democratic administration of the auditor’s office, under J. O. Henderson (3,891 to 1895), SII,OOO as salary, $29,473.43 legal fees collected, and $49,616.15 illegal fees collected and retained, an aggregate of $90,689.88 as the personal compensation of the auditor, as against $30,000 in salary for the last four years, a difference of $60,089,88. This again marks the difference between Democratic economy and Republican extravagance. During the last four years under Henderson the sum of $26,200 was paid for salaries of assistants and other expense, making the aggregate under Henderson for the four years $116,289.88. The aggregate expense of administering the auditor’s office during the last four years has beep $105,044.58, a difference between p*mocratic economy and Republican extravagance of $11,245.30. This becomes all the more remarkable when we pause to note and consider the vast increase in the volume of business transacted by this office. During the four years under Henderson, from 1891 to 1895, the office collated and received moneys to the amount of $370,503.94; during the last four years the office has collected and received in fees, taxes and collections $1,792,188.55, a difference of $1,421,684.61. It is the duty of the auditor of state to transact the state’s business with insurance companies. In 1895 there were twenty-two Are, life and casualty companies, doiftestic and foreign, doing business in the state of Indiana; in 1907 there were 383. In 1895, 6,430 insurance agents’ licenses were issued; in 1907, 17,055.. It is the duty of the auditor of state, under existing laws, to supervise and examine statd and private banks, savings banks and trust companies. Oct. sl, 1895, there were 97 state banks,, live savings banks and three trust companies, a total of 105 such institutions doing business in Indiana. March 28, 1908, there were 257 state banks, five savings banks, 96 trust companies and 197 private banks, a total of 555 such institutions doing business In the state. Contrast With 1895. In 1895 there were no domestic legal reserve life Insurance companies in the state; now there are 19, with securities deposited in the office of the auditor of state to the value of sll,878,575, and with Insurance outstanding and In force aggregating $158,659,100. It Is the duty of the auditor to keep these securities, to value these policies annually and to examine these books.

On Oct. 81, 1895, there was on deposit In the state banks of Indiana $9,615,398.93; in the savings banks, $3,872,912; In trust companies, $131,663.86; a total of. $13,619,874.79. On Sept. 80, 1907, there was on deposit in the state banks of Indiana $60,919,876.97; In the savings bankß, $11,708,826.78; In trust companies, $41,640,443.35; In private banks, $25,906,732.22; a total of $130,075,878.32, and an increase of almost 1,006 per cent. These deposits are protected by examlantlon and supervision of the auditor of state. These facts add materially to the responsibilities and duties of the office, and any “honest and fair dealing" In making comparison between the expense of the office of the*hudltbr In

189 S and in 1907 requires <b*i they be considered. The difference between Democratic economy and Republican extravaganoe can again be forcibly illustrated in another single sentence: From 1891 to 1895, under a Democratic auditor, it cost the state, in the way of salaries, fees and expenses, 31.4 oenta for every dollar collected in the auditor's office, and from 1904 to 1908 it coat the.stats 5.9 cents on every dollar collected, a difference of 25.5 cents on every dollar collected. Democratic economy cost on each dollar collected tn administering this office more than five times the cost of administering It Under Republican extravaganoe. Inefficient System Ended. "Honesty and fair dealing in politics” required that he state the fact that under the present administration an old, weak and ineffective system, involving the sequestration of fees, the misuse of public funds and the conversion of interest on public moneys, has been brought to an end; that under the old system there was no check on the administrative officers of the state government anywhere, no super vision of their affairs; no examine tion. • "Honesty and fair dealing in politics” required him to state the fact that the present administration has collected and restored to the publlo funds $32,753.02 misplaced by a Democratic auditor more than twenty years ago, Jn the 9oqr»e of to speech he cried "let us open the books ana tarn the rascals out” "Honesty and fair dealing” required that he state the fact that the books of every state office are already open; that they within leas than a year were inspected by a distinguished Democrat appointed by the present administration for that purpose; that daily settlements are now required to be made; that an executive acoountant makes frequent and searching examination of every office; that interest on public funds has ceased to be the perquisite of these officers; that every paper, every book and every document was laid before a Democratic investigator, and he directed to find the truth and report it to the people. The Raa&als Already Out. "Honesty and fair dealing in politics” required that he state the fact that the rascals are already out; that there is this difference between Democratic and Republican administration: They continued their rascals in office until the end of their terms and permitted them to go with their plunder; we turned ours out, under whip and lash, and compelled them to make restitution of every dollar taken, and then went back and recovered thousands of dollars of the funds, or have suits pending to do so, which their rascals had taken. In another sentence he declares: “The state’s busin<rs Is topsy-turvy with blunder and reding with graft." "Honesty and fair dealing in politics” required that he furnish with this sweeping charge an itemised statement, a bill of particulars; that he point out the blunders, put his finger on the graft and his hand on the guilty official. Unless he does this he ipust stand condemned In the forum of honest debate. In the course of his remarks he announces: “Reforms have been inaugurated and are here to stay.” “Honesty and fair dealing in politics” required him to state by whom these reforms Have been inaugurated in Indiana; who started them; who has followed them up through evil and good report; and through a storm of abuse and Invective from the writers of Democratic, syndicate speeches. If in the informs instituted during the last three years, and relating to the administration of the state government, a Democrat has led, I would be glad to be introduced to him. The Republican party will enter the coming campaign upon a platform that means something. The Democratic platform straddled every important issue and accepted a temperance plank dictated by the brewery interests. The delegates In the Republican convention were selected by the people, and they voted their sentiments. Far different was the Democratic convention. When Taggart realized that it was Impossible to nominate Mr. Ralston, by his command he swung over 400 votes to Marshall, which brought about his nomination.—Frankfort News. The local option plank In the Democratic platform promises nothing at all in the way of advance 4n temper ance reform. In making the unit of local option the ward in the city and the township outside of the cities, nothing is gained over what is already won. In fact, it leaves the saloons the chance to colonize voters and continue to hold a place in the cities. Temperance Democrats know they have been deceived and betrayed in the platform. It will add nothing at all to the effective anti-saloon legislation which has been enacted by Republican legislatures. —Kokomo Tribune,

The Journal has stated that tbe election has already been practically won for the Republicans of Indiana on the strength of the temperance issue alone. The Democrats thought to gain advantage by.holdlng their convention first, but It was fatal to their hopes because It permitted them to make a flat failure of the local option plank. Had they met after the Republicans they would have at least been compelled to go as far as their opponents on this issue and the temperance vote would have been divided. As it Is, however, the vast Independent antisaloon vote will go one way and the Democracy will have one more tremendous blunder to add to Us reoord. —-Crawfordsvllle Journal.