New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1893-11-15
COL. BOBLETER'S SCALP.
Seems to be the Object of John W. Arc
tander.
The State Treasurer is Charged with TAX
ing "Personal' Interest Upon
State Moneys.
But at Last Accounts the Col. was not " Or
rying Over the Charges.

trial on its hands that will only be Sec
'ond to the famous cases that were
brought against the state treasurers Of
wisconsin whereby they were compelled
to pay back to the state some hundreds
of thousands Of dollars, if Minneapo-
lis affidavit is to be believed. The mat
ter came out in the receivership proceed
ings in the case of the Bank of New Eng
land, which came up before Judge Rus
sell Saturday morning. At that time
Assistant Attorney General Ed dgerton
stated that he was of the opinion that a
receiver should be appointed who had
had no connection with the bank before
its assignment. MIR. Edgerton gave as
his reason for that request the statement
that an affidavit had been filed with him
charging that State Treasurer Joseph
Boblctcr had been receiving 2 1-2 per
cent. personal interest on the states mo-
news deposited with them besides the 3
per cent. allowed by the law. Among
those OF the attorneys present to whom
the matter was thoroughly understood
there was great excitement.
Most Of them, Owr:cr, did not know
what the statement personal interest
mcrnt. Some one asked who the attor
ncv was who made this affidavit, and
..Jnhn w. Arctan,lcr' was the answer.
licved the revelations contained in his
affidavit would be the means Of precipi-
tatiny al interesting case in the history
OF the State of minnesota. He says:
"Evcr since the failure of ii number of
banks in Minncapoli, last spring and the
accompanying discovery that the state
had IL great deal Of money deposited in
brains to find out why it was that those
particular banks should have had so
much Of the states money, especially as
it was known that they were none of the
strongest. pursued my inquiries, and
my access to the BOOKS and schedules of
the State bank at length gave me just
the clue | wanted. found here that the
bank was paying the state interest at
the rate of per cent on all monies.
''This amount on each deposit was
placed in the interest account. l then
discovered thut there were entries of Ger
tain amounts paid to the state treasurer
which were placed on the expense ac-
count The scheme was then plain.
The mysterious placing of the states
money in the insolvent banks was eX-
planned. These banks, in order to get
the deposits, had entered into an agree
ment to pay the State treasurer 3 per cent
for the regular interest on the deposits
and 2 1-2 per cent directly to him. This
last was not to be used by the state, nor
was it the intention of either party to
the deal that the money should ever
reach the Golfers of the state treasury
The statutes of Minnesota provide that
the state treasurer shall place the funds
of the state in those banks that it pleases
him to choose. They further provide
that the interest shall be a fair and epuit-
able rate and shall not be less than 3 per
cent. In other words the law requires
that the state treasurer shall get all the
interest he can.
According to Mr.. Arctander, the state
treasurer is liable to the charge OF mis-
(cmcanor in office for a violation of the
statutes in another respect. The state law
provides that the treasurer must deposit
all moneys in the name of the State Of
Minnesota. Mr.. Bobleter, on the con-
trary, has deposited all the funds of the
state under the form "Joseph Bcbleter,
state treasurer
Assistant State Attorney General Ed
gerton says that if Mr.. Arctander will
file a bill of particulars he will at once
begin suit against Mr.. Bobleter to recov-
er some $4,000 or $4,000 supposed to
have been paid him.
State Treasurer Bobleter was seen at
his home Sat. evening in relation to the
above, and said that he did not care to
discuss the matter as a very serious one,
and evidently felt quite easy as to the re-
suit of any possible Investigations
neer Press.
Col. Bobleter says: "There is no truth
at all in the charges contained in the
affidavit. The statement that there was
private consideration between myself