The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-20
an, On Oct. %. 1877. olmstcd informed the

Auditor general Temple. who figures through
out tn" transaction as wra. old man. but not
necessarily rs Il riscN was absent on visit to
Greene county ut the time. His Chief Clerk.
Warden. without waiting for his return. entered
into an agreement with Oltnstcd and Simonton
to pay ten per cent on nll money recovered in
this unspccifled claim. Here is tho document
that licensed the steal:
WIGS There is reason to believe ,hatJ W simonton
aud VI Omstd are IA possession nj certain ininrma.
uon and means 90 pro- urnl information not IN the pos
the Commonwealth. 10y means ut which u con.iderthr
amount OF t,N can be- LEGALLY recovered IRON crtHin
the state oi Pcnns, wanna;
rnasm and OF such "rS s NAV vi he V, % @ ior
tue rurgo., u cn'orcing aud coccins ,aih tax.
Snrf"yai f IT, IT,, Mon, "vgrsl on behalf 2, 'y ,%
upon tlc amount q tax which shall be- secured aud pnd
10 Tie STATE Is the result OF such Information and r
Wins n, hand and Official seal at Harrisburg this
lsrALl &. y. w,nntN, for
J. TrNrfi. huditor.Gcncra.
concur in the above agreement
ntSm R,wrl. state Treasurer.
Let Il he horne in mind that Warden signed
this agreement without authority, and that
Temple whose signature was Indispensable.
know nothing about II until days aftcrwnrd:
Ho finally added his approval. but not until
Omstcd had disclosed the name oi the delin-
uuont corporation. Icnr signed the paper in
person. and with iull knowledge. ii ho knows
his business. that there j. nothing in law to
authoriac letting out the job 10 collect money
which the Auditor Generals office ought to coll
lcct nnd can collect itself Rawle's signature
was entirely unnecessary. II il Incompetence
sible why he should put his name tu this paper.
unless he desired to have share in the divis-
ion of spoils and to get II recorded status in the
operations OF the Ring ut the earliest possible
moment.
| have said that when this extraordinary bur
gain was made. selling the States knowledge to
the state for 10000. Auditor-Geueral Temple
was miles, away from Harrisburg. When, he
returned Warden failed to mention whit had
been done. Nor did Buynrd say u word to his
father Ia inv about the matter Independently
of the Auditor General. whose own business y
was. the precious crew of clerks. outsiders and
high officials wentto work to realize on the con-
tract On the day tho agreement was signed
Olmsted brought to Bayard n letter in Olmsied's
own handwriting dunning the Union Railroad
and Transportation Company for the tax due.
Bayard copied aud signed the letter and sent IL
To- the corporation, ana this demand resulted in
the prompt payment Of the tax. After all this
mad bean done old Temple came back, and was
prevailed upOn by Olmsted to add his approval
tO the agreement. Olmstcd representing that
the amount recovered would probably be from
$4,000 to s50,00O. and the commission from
The tax was collected not by Olmstcd and
Simonton. but 10y the Auditor-Gencrals office.
formation acquired by him while an employee
In the Auditor Generals Office. This informn-
ton was already in the office. and II was Bay
ards business to know IT,
About the middle Of November the officers Of
the Union Corporation. Olmsted and SimOnton.
the Auditor General Attorney General Lear
General Gilbert. all met in the Office OF the
Attorney General and agreed upon a hasis Of
that owed the state sSi o5ss7 TIE staia
officials mcitly agreed to make no effort to col
bet interest and penalty for delinquency. al
though the law explicitly imposes both when
corporations fail 10 pay taxes due 10 the State.
AT this meeting. altor the amount had been
agreed upon. Attorney General Lear privately
informed President Thaw Of the Union Com
pany that he Lear was by law entitled. as
counsel for tho Commonwealth. tna fee Of 1--WE
\ fhT al al a. coll 10 f.ak "A
nave TO come from I'll" company rs costs. But
in this instance. he said. the sum recovered
was 50 large that he would agree 10 take two
and one-halt per cent. or just half his legal
fee. Lear 5 fee, amounting 10 about $4,000. was
paid him 10y cheek Nov q. So n addition to
the job of paying Oimstod and Simomtnn for
work done by the Auditor Generals office in
collectngth tho taA. the Attorney General Claimed
work.
There is still another side to Lear's r1lscality
| in this transaction. The law. which allows him.
IN addition To salary OF $4,000. five per cent.
commission on money recovered by the Com
inonweath through processes OF law. limits his
this sum he must turn into the state treasury.
| The fiscal year ended Nov. 80. Lear had already
belonged T. him and $500 to the State. The
fee Of 81 800 due in the Union Company matter.
which Lear Illegally compromised ut onc-haf,
belonged not to him. hut Ia the treasury He
compromised the state 3 interest when he agreed
10 take two aud nne-haif. instead Of the live per
| longing to the State was paid by check Nov. IS
but Lear failed 10 credit il until after the end oi
! the month. thus throwing II over until the next
| fiscal year. and putting II into his own pocket
! instead Of the State treasury.
Alter the conference in the Attorney General &
| office. Bayard drew up "A settlement in accord
ance with the agreement there made. The set
| tlemcnt WIS signed by the Auditor General
Attorney General. and State Treasurer. and
| was sent TO the Union Companys Office at Pitts
bureh. State Treasurer Rawlc who does not
appear 10 have had Implicit confidence IN his
pay tie money directly 10 R him II this tbs Rad
been done. the character OF the Olmsted claim
| for II $50 900 commission would have come un-
dor SCRUTINY. aud it, legality would perhaps
have been tested in the courts. But after the
company had agreed to pay the tax directly into
the State treasury. the Attorney-Generals Office
! gave Olmsted written authority 10 receive both
p" tax and the Lear fee. Olmstcd went TO
! Pittsburgh. and on Nov. q received from the
Union company two checks, one covering the
tax; and tho other covering the Attorney Gen
| erals commission.
IL WIS Thanksgiving Day when OlInsted re-
| turned TO Harrisburg with s200,O 900 in his peck
| et. The Auditor-Gencrals Office was not open
for business. In order to secure his $4,000 he
| still had 70 obtain warrant signed by both the
! Auditor General and the State Treasurer With
Simonton and Bayard and Warden he went 10
| the state House. Warrants signed by Temple
Auditor, Genersls once MAJOR MeMSrraiy. The
Accounting Clerk, kept, the key. and he was Al
den. the chief clerk Of the Office sent messen.
ger TO McNlurray with this note
MAJ. McMgEsAy-l o 81, MI. Bsyard desires to ge, 4
key the warrant book drawer viii keep It Tor Nuu
| I'LL tomorrow. e. + NARDHS.
On warrant signed in blank 10y old Gen
| Temple. Olmsted's bill for si9.l05.30 for doing
| nothing. was hastily written. The correspond.
! ing stub IN the warrant book remains blank 10
| this day. An effort was subsequently, made by
Bayard 10 induce McMurray TO HI II up. in or
der TO make things regular, but the Accountinl.
| Clerk did not consent. The warrant thus Oh
tanned read as follows:
COMMONWEALTH or pENssYLvANIi.
ToJ W sINoNfON and NJ L OLNsrrp DR.
For services rendered ~ procuring aud furnishing
formation. investigating the facts. and prosecuting tho
claim uf said Commonwealth Tor tax alleged BY then
be due in the special Of corporation qul
dntiun arising nu OF distribution OF assets
stockholders the facts not being known any lahil
| nv tHN supposed by any officer the Common
wealth. and the case being without precedent, nui io
the collection ~ said claim. amounting 10 Sleln53 ~
Commission rs per asrconen 10 per cent slsiuo 81
ACKNOWLEDGEMENTS OFIIcr.) Treasury OTrcr ~ Pa. !
HAKRnuRG. Pa. Harrisburg, Pa
Nov. ~ 1871 NOy 80. 1871
Settled ami entered Approved
j. y IFNPLt, HlNNY R,wlf.
Auditor General state Treasurer
Rawle's signature, necessary to the consum-
nation of the fraud was not obtained without
trouble Kawle was in Philadelphia. Baynrd
aud Omsted proceeded thither in company
| Bayard bearing the uncompleted warrant and
| Onsted the big check. Olmsted found Eawl'
and offered to hand over the check rs soon as
the warrant WAS signed, giving him his COM
MISSION. Rawle, refused TO sign until he re-