The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-09-05
Report of MINES ota INVESTIGATING
Committee.

IPS.HsSe ~ Guv AeSe Ae6lhIhkuE6, COnbl9tl0I
ot two Republicans and one Democrat B
investigate the transactions Of the latl
State Auditor, Charles McIlralh, on az
, count Of the school and swamp land
which were in his charge as State LanC
: Commissioner, to-day made 0 unanimou
report showing q startling state Of things
A portion OF the report has been anticipa
ted by certain outgivings, but the elIec
can scarcely fail to be moro profound anC
astonishing than the result Of the late In
veSttgation ipto the irregularities OF thC
State Treasurer. The committee include
the evidence taken by them with theil
report Both the evidence and report
are very voluminous. The committee
claim 10 have discovered defalcauons OF
the part Of Mcllrath 10 the amount oI
$50 659. The Commissioners say thai
the examination Of the books, papers and
records Of the Auditors office, which were
turned over to the present State Auditor
and the testimony Of these, now In thai
Office, developed the startling TACT, which
was subsequently, admitted by Mr.. Nc
Ilrath, In his testimony before Us, that no
account whatever could be found, or
was kept, OF the transactions, amounting
TO thousands OF dollars, especially OF any
money received In payment for timber cut
upon the School University, railroad
swamp indemnity, or internal improve.
ment OF lands without permits, or in many
cases with permits. An equally unsatiS.
factory state ol affairs was found 10 exist
with reference to the proceeds OF the sale
Of grass upon school lands. .4.,.sai
The committee present the following
schedule Of some Of the defalcatlons Of
McIlrath, which their investigations
brought to light: First District,
amount paid TO McIlrath for timber
cut BY permit upon school lands,
$S0, 0,035 "a; amount Of same paid over BY
him 10 the State Treasurer, $68,S22 80;
amount not paid over S13, ,l69 90, amount
paid to Mcllrath for timber cut without
permit on school lands, $11,376 1S;
amount Of same paid over by him to the
State Treasurer, $4S92 02; amount not
not paid over, 80, ,4s4 10; amount paid 10
Mcllrath for timber cut on other State
lands not classified, $4,l5S 90; amount Of
same paid over by him TO the State Treas.
urer, $8l2 OF; amount not paid over,
$S3G6 %. Second District, amount paid
to Mcllrath Tor timber cut by permit upon
school lands, $ll2, 1895; amount Of same
paid over by him to the State Treasurer,
$S5 GIG 02; amount not paid over $28,.
500 "a; amount paid to McIlrath for tim
Der cut by permit on University lands,
$50 ,58S SO; amount OF same paid over BY
him to the State Treasurer, $23, ,929 "A;
amount not paid over, $l5,653 90;
amount paid 10 McIlrath Tor tim.
Der cut without permit on the
school lands, $167l0 25; amount oil same
paid over by him to State Treasurer,
$l3l, ,187 IS: amount not paid over, $751;.
26S; amount paid SMcIlrath Tor timber
cut on State lands not classified without
permit, $751 ,796; amount OF same paid
over by him to State Treasurer, $685..
6S1; amount not paid over, $42S, ,165;
amount paid Mcllrath for timber cut BY
permit on swamp, State and other lands,
$4lS, ,l12; amount Of same paid over,
$4lS, ,112. In addition 10 the above we
find that on or about the 9th day OF
August, 1869, McIlrath, as State Auditor,
furnished 10 the officers Of the Lake Su.
perior s. Mississippi Railroad Company
an official statement oil the amount Of
money that had been collected by him In
payment Of timber cut in the winters oi
1866, 1867 and 1868 on the additional sec.
tions Of land then held in trust by
the State for the iconstruction OF the
said Lake Superior s. Mississippi
Railroad, and also Of that cut the same
seasons upon certain swamp lands then
held by the State in trust for said railroad
company. In these statements Mr.. Nc
llrath certified that he had collected the
following sums for timber cut upon
swamp lands: $9,19S 49; for timber cut
upon odd sections, $2,239 81; making a
total OF $l0,436 IS. No record Of these
transactions is TO be found. In, any iormin
the Auditors or Stat, land Offices. We
find that no portion Of this $40, ,436 IS has
been paid into the treasury oil the State,
and that the same Is to be addedto the
deficit above shown to exist. The COM
mittee discover ample evidence that Nc
1lrath, while State Auditor, was a secret
partner ot the parties trespassing on the
school and University pine lands under
charge Of the Auditor, and gave sche-
dule Of the lands so occupied. The tes-
timony Of r.. NJ Myers, of New York,
tends to convince the committee that
MCIlrath kept Tor two years the Mis-
souri, State bonds belonging 10 the school
found in the hands Of Myers, on which
he (McIlrath) regularly drew interest
which Is unaccounted for. The bonds
were finally legally transferred 10 the
school fund! ~
After alluding to many other transac-
tions which McIlrath failed TO explain,
whereby the State or the school unlversi.
ty or the swamp lands fund were the
losers carrying the approved defalcation
Of MCIlrath up to $50, $50, the committee
say: us.sa i y4s .n.H %
Your committee, having ascertained
the foregoing facts, the inquiry suggested
itself as 10 what remedy the state had, II
any, 10 indemnify itself ior the Losses.
This developed the fact that Mr.. McIhath
executed no official bond to the state at
the time Of or since the commencement
Of his last official term of three years.
His official osth was duly filed and re-
corded in the office of the Secretary OF
State, but no bond of the State Auditor.
1t Is impossible for your committee to ex.
plain why the Executive, Hon, Horace
Austin, should have overlooked 80 i'm
portant an official duty. No other charge
Of direct completely with McIlrath is
made against ex:Gov. Austin, l., ,,.a. ,'
The Committee closes their report as
follows: @- Hl'tf
Your Committee conclude this report
without giving expression to their regret
at being compelled to make disclosures.
They do It sorrowfully and only in obedi-
ence to the stern demands Of the public
duty and responsibility imposed on them
by your body. al No citizen Of, onr young
State can learn Of the facts herein dis.
closed without feeling humillsted and, In.