The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-09-08
PICKING AND STEALING.
A MINNEsoTA SCANDAL.

NIsDEEDs LAID BARE-sCANDALoUs TRANS
ACTIONS IN PUBLIC LANDS.
ST. PAUL, MINI, Sept. 4.-The committee ap-
pointed by the last legislature, consisting Of two
republicans ard one democrat, to Investigate
the transactions of the late State auditor Charles
Mcnrath, on account ofthe school and swamp
lands which were in his charge as STATS land
commissioner, ex-officio- to-day made a unani-
nous report, showing a startling state of things
portion OF the commtttees report had been
effect can scarcely fail to be more pro-
found and astonishing than the
the Irregularities OF the state treasurer. The
committee incl. .de the evidence taken by them
Ie ,ort are very volumiuous. The committee
claims to have discovered defalcations on the
part of MeIlrath to the amount OF sss,559. The
committee SAYS, that preliminary 10 The ez-
animation Of the books, papers and records Of
the auditor office, which were torned over u
these now in that Office developed the startling
facts which was subsequently admitted by Mr.
Mclrath in his testimony before IL, that no ac-
counts whatever could be found or
were kept of transactions amounting
of any money received in payment of timber cut
upon the school, university, railroad, swamp,
indemnity or internal Improvement lands
without permits, or in many cases with per
mitS. An equally unsatisfactory state OF affairs
was found TO exist with reference TO the pro-
The committee presents the following schedule
OF THE DEFALCATIoNs
ofMcIlrath, which these einvestisatiops brought
to light. In the first district the amount paid
TO McIlrath for timber cut by permit upon the
school lands was SsO.O55 "a The amount of the
same paid over by him 10 the state treasurer
was sG6s22 30 The amount not paid
over was sl3l62 81 The amount
maid to McIlrath for timber cut without per-
nit on the school lands slI ,S7S Is. The
amount for the same paid over by HIM to the
State treasurer was 1882 03. The amount not
paid over was s647I Is. The amount paid to Me-
cIassified was 81, ,i5S 90. The amount of the same
| paid over by him 10 the State treasury was ISL
2O7. The amount not paid over was s., 1866 ~. In
the second district the amount paid to McIlrath
for timber cut by a Lernlit upon the school lands
was sll2,l 66. The amount OF the same paid
over by him to the Safe treasury was SIS, CID o.
The amount not paid over was s26s5G7 "a. The
amount paid to McIlrath for timber cut by per-
init ON the university lands was sS9,5S3 ~.
Amount ofthe same paid over by him to the
State treasury, SO, ,929 "a. Amount not paid over
| cut without permit on the school lands, Sl67l0-
IS; amount of the same paid over by him to the
| SS522 GS; amount paid 10 McIlrath for timber cut
on the State lands not classified, without per-
mt sIola so aoun. % Oi sS e. ss5i s ,, pu over oy
paid over, 81 Isl 90; amount paid for timber cut
| by permit on the swamps, State and other
lands, 81, ,lSl II; amount of the same paid over to
the State treasurer, nothing; amount not paid
over, l,lsl u. In addition TO the foregoing the
commtte finds that on or about the 5th day of
August, 1863 McIrath, as State auditor, furnished
TO the officers of the Lake Superior & Mississippi
Railroad Company an official statement of,the
amount of money that had been collected by
him in the payment of timber cut In the win
held in trust bv the state for the construetion Of
| the said Lake Superior Mississippi railroad,
and also of that cut the same seasons upon GER
tain swamp lands then held by the State in
trust for said railroad company. In these state
ments Alr. McIlrath certified that he collected
sWap sRe isns 9s for timber cut ' upon odd
sections, s2r2SS 81; making total OF s4O,i36 s.
No record OF
THESE TRANSACTIONS
is to be found in any form in the auditors or
State land Office. The committee finds that no
norton of this $40, ,436 s. has been paid into the
treasury of the State, and that the same is TO be
added to the deficit above shown to exist. The
committee discovers ample evidence that Nc
nrath while state auditor, was a secret partn er
OF parties trespassing on the school and univer-
sity pine lands under the charge of the auditor,
and give n schedule of the lands so occupied.
! The testimony OF Postmaster Myers, of New
Iss Tsth ST SslonriSS tTS the Missouri
fund in the hands of Myers which
he (Mcllrath) regularly drew interest," which is
unaccounted for, The bonds We're ilnally legally
TO many other transactions which McIlrath
failed to explain. whereby the State, school,
carrying proof Of a defaIcation of Mciirath up
TO $3.50, the committee says: "1Our committee
having aScertained the foregoing facts, the in
quiry suggested itself, as to what remedy the
losses thus developed. Mr.. McIlrath
. executed no official bond to the
State. at the time or since
the commencement OF his last official term of
three wears. His official oath was duly filed and
recorded in the office of the secretary OF state,
but no bond of the State auditor. IL is impoSsi-
BILE for your committee to explain why the exc
cutor, the Hon. Horace Austin, should have
overlooked so important an official duty" No
other change of direct completely with McIrath
10 AnSfine Qnr M
q mittee closes the report as follows:
.Iour committee connot conclude this report
, without giving expression to their regret al
e be ng compelled TO make these disclosures
They do IL carefully and only In obedience Il
( the stern demands of public duty, and the re-
sponsibility imposed on them by your body
!, No citizen OF our young State can learn OF the
a facts herein disclo sd without feeling hmiliated
: and indignant at discovering that one OF the
!, most sacred trusts ever imposed upon public
Office Las been thus violated. Every citizen o.
Z in the belief and assurance thai
i our school fund secured to his chi drer
o and generations unborn, the means whereby
q they We're to become educated and worthy citi
n zens of our common country, and to now learI
\ that the State has been defrauded of any por
= tion OF that fund.- which all should guard witt
! their lives If ned be. will arouse in him feel
report is signed by John y. Mcdonald, Lucas +
Hubbard, and VIM. Mckusick, committee.
u EFFECT OF THE DISCLOSURES.
u THE COMMUNITY NEUTRALITY-SUSPICIOUS.
a FEAR FOR THE PARTY.
8 ST. PAUL, MINI, Sept. 4-This commu
q nifty is utterly astounded by tn.
! developements of the committee investigating