The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1890-06-06
STOLE THE FUNDS
South Dakota TeIegraphers Rob
the Western Union.
Managers Work the scheme for Five
Years-The Company's Loss
About $4,000

Years-Thc Company's Loss
About $4,000
Sioux FALLS, June "a discovery
has been made by the Western Union
Telegraph company by which they esti-
mate their loss in telegraph receipts all
the way from $4,000 to $4,000, cover
ing a period of five years. The plan OF
robbery has been systematic and carried
out by the collusion OF operators in
forty towns in South Dakota. The
principal leaders have been discharged
and the company has already announced
its purpose of prosecuting them.
The company has no means of ascer-
tanning the exact amount of the defalca-
tions for several reasons First, be-
cause the business of eaci, six months is
destroyed as soon as it is completed and
the books kept show nothing of the re-
ceipts that have necessarily been pock-
eted by the heretofore trusted en-
ployes. Tho first intimation the COM
pany had that anything was wrong
was the visit of L. j. Nally, assistant
superintendent, with headquarters at
Minneapolis, to Aberdeen. where the
manager at that point, man by the
name of Blood, had had charge of the
office for a number of years. He was
married to one of the leading society
girls and was one of the pillars in the
Baptist church. Blood worked his
scheme, the company officials say, very
fine, and showed considerable skill in
the manipulation of the books. When
Mr.. Nally checked up Biood's accounts
they were found short for a small
amount and Investigations were quietly
made. 1t happened that Blood was
fearful that Nally would get on to the
true inwardness of the case and wrote a
note to an operator in Webster, a town
near by, who was, as it proved afterwards,
q confederate of Blood The note warned
the confederate of Nally's visit and
advised him to have his books in
shape. This note was Intercepted by
some means The employc at Web
ster was Immediately discharged and
among the effects left by him was found
several letters in which Blood advised
him to not check him up on certain
numbered dispatches. At first Mr. Nally
thought the matter was purely local,
but the more he investigated the moro
general it became, until every one OF
the leading offices of the state was dis
covered to be in the detrS. Blood was
the leader in the district surrounding
Aberdeen. Aberdeen does great deal
of local business with the twenty or
thirty small towns about, and in most
of these Blood had confederate, and
when dispatch was sent by him no
record would be made of it, and vice
versa BY this means the company was
deprived of an enormous revenue. In
one month, Mr.. Nally says, Blood ap-
propriated to his own use $3.50 by this
means. This was kept up for five years,
and it is utterly impossible todetermine
the amount the company has lost on
| Aberdeen alone. Blood was not salts
fed with what he could rake off from
Redfcld, Mellette, Columbia, Milbank,
Faulkton, Forest City, Ipswich, Web
ster, Britton and tho dozen towns
around him, and reached out for bigger
| game.
The managers at Mitchell, Pierre and
| Sioux Falls worked the same kind of a
| game. The small towns were worked
| bObh WhS % anu CdSl OIlS Bbu ii Sllldll
| circle of sympathizing friends who
pocketed portion of the receipts. The
managers in each place were trusted
employees and held their positions for
| years. Often the case would arise where
a profitable rake off was had and it
would be stopped by the discharge of
| the operator in the town for disobedi-
ence OF some rule OF the company or by
| his quitting his job. The new man
would be carefully sounded and if he
could be worked, ali good and we'll. If
not, complaints were made by members
| OF the gang of his inefficiercy as an
operator and every breach of discipline
would be instantly reported until the
company would discharge the honest
operator. Thus it was that the leaders
managed to have their confederates in
positions all the time
E. j. Mannix, an ex-city alderman,
and late manager of the Western Union
Telegraph company here, was arraigned
before Judge Aikens, in the presence OF
Mannix's attorney and District Attor-
ney Bailey. No one else was present
and the matter was kept so quiet that ii
only leaked out by an accident. Mr..
Mannix has been prominent citizen
in this city for many years and has an
elegant residence on Tenth street, be-
sides heavy real estate investments in
South Sioux Falls and Yankton. He
has always been held in high esteem
by the citizens, and the amount claimed
by the company which he has embezzled
and record of which they have is only
$13O.
Mr.. Nally, the assistant superin-
| tendent, who has been in the city for
the past three days, said: 'The magni-
tude of the scheme by which the COM
| pany has lost large sum of money can
not be estimated, but it certainly is
very large, covering as it does period
Of over five years. The sum of money
lost will reach easily $4,000 anyway.
The leaders around whom their circle
of confederates managed to absorb for
their own use a portion of the receipts
in the small towns, both coming and
going, had a distinct understanding
among themselves. They were all
acquainted and constantly in communi-
cation with each. Aberdeen, Mitchell,
Pierre and Sioux Falls each had
an independent circle, and ar
ranged for raks-of in the bust.
ness between their own offices, thus Gre
ating larger circle-an inner circle,
as it were-and managed to mislead the
company altogether. The small fry
knew nothing OF the inner circle, and
they never had, of course, any business
with each other to amount to anything
For instance you take Valley Springs
the operator there would send twenty
dispatches to Sioux Falls to one to Alb
erdeen. The one going to Aberdeen
would OF necessity be transferred
through Sioux Falls, where it would &c
to Aberdeen by way of Mitchell. II i,
was collect message, Blood at Aber
deem woulk inform Mitchell and Sioux
Falls that stocks were falling. Sioux
Falls would then inform Valley Springs
that there was mo check and the com
! pany wouldn't know the difference
AS to Mr.. Mannix's case there is nc
| question as to his collusion, although
/, the company have no means of proving
IL in court I went before the grand
!! jury at Aberdeen and had an indict
ment brought against Blood. Before
that accused Blood OF the entire bust
ness and he confessed to it all; gave NJ
the names of all who had been work
ing the deal. l presented case agains
Man1,ix to tho grand iurv here claim