St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-12

way here and not TO attach any property
until ne arrived; that he would turn
everything and would fix up the short
age. He arrived this morning, but 1t
appears that he represents himself
alone. He, however, tells some luter-
esting tales, which throw considerable
light on the action Of Taylor. About
two years ago Taylor loaned Mellette,
then governor of the state, $4,000. ana
Mellette gave him as security war;
ranty deed for all of his property, real
and personal, to the amount of fifty
thousand. This was not recorded. A
few months ago Taylor asked FOR the
money, and stated that he was hard
pressed and must have it. Mellette
went to Boston and secured the
money by making new but similar
deed to parties there, and was about 10
turn over the money to Taylor when the
crash came. Yesterday he learned that
Taylor had recorded the deed, and had
mOrtgaged the propercy for its full
value, and the two deeds were placed
on record Wednesday night, the day
after the defalcation became known.
This bankrupts Mellette, and deprives
the state of any chance Of recovering
from him as bondsman. He has, how
ever, gwen the attorney general full
list of his property, and the state has
already attached, and will contest the
deed given by Taylor. Mellette had
conference with Taylor in Chicago on
the 18th of December, and there was at
the same hotel Leppelman, in whose
bank Taylor lost most of his money,
and one of the
Heaviest BOndsmen
who iSs now believed to have been cog
infant of the transaction at the time.
Mellette also states that Taylor in
formed him that the real cause OF his
troubles began with his connection with
LeppeIman's bank at Getty> burg.
Early in 1898, during the panic. Taylor
was besOught TO 90 TO the aid Of Leppel-
mans bank, and he was urged to DO so
in order to avert and thereby prevent a
general breaking of banks in the state
and a ruin of the people. He did so,
but some time afterwards discovered
that the bank was in much worse con-
dition than he had supposed, and in
order to save what he had put in he put
up $50, 600 more. but even This did not
prevent the failure, which came three
months ago. All of this was state
money. He received a large amount of
real estate, merchandise, stock and
! other property, and Il short time ago at
tempted TO organize a syndicate in
Illinois and sell it. Shortly before the
bank closed he had arranged to sell the
| property for $4,000, but the deal fell
| through. Being unable 10 get help,
he found himself short 100000, and.
seiZing everything in sight, fled. His
! losses on other deals during the past
two years nave cost him fully as much.
| Before he left he placed full mortgage
/ on all of his property of all kinds. so
that the state cannot recover anything
| from it, 1t is also understood now that
most of his bondsmen are free, having
received tip Of what was to happen.
! EX-Goy Mellette, who is here, believes
that he will be able to break the deed
by which Taylor fraudulently sold his
property, and will pay the state about
$4,000.
a Joint Commission.
The legislature today appointed a
! joint commission to investigate the
detalcation in the treasurer's office.
! The commission consists Of Senators
| Pease, BOyce, McGee and Representa-
tives Gold. Barron, Deckover. Holm
! Quist and Lucas. They will at once
! begin a thorough investigation. The
legislature also called on the auditor
and public examiner to report at once
on their Offices.
There has been much gossip about the
! effect which the defalcations would have
| on the credit of the state, and many
| people have professed to believe that
| warrants would soon 90 to a heavy dis
| count, possibly One-half. The state
auditor admits that unless some of the
! money can be recovered from Taylor or
! his bOndsmen, warrants now issued can
| not be paid under two years. This
would ordinarily cause a discount of
! large amount. Treasurer Phillips, how
| ever, authorizes the statement that after
/ thirty DAYS, at the outside, he will be
| aUie to take uD all warrants IN cash at
par. He has financial resources of very
large extent, and he will use all of them
to maintain the credit of the state. Mr..
Phillips is proving in this emergency
| tower of strength to the. state, and he
has inspired the greatest confidence in
the other officials. He is known to have
been remarkably successful in handling
the funds of Lawrence county, and dur
ing his term county warrants never
passed at less than par, whether there
was money III the treasury or moi.
Ladies luncheons nowadays consist
| of varied dishes-caviar on toast, sweet
bread croquettes, patties, birds, salad,
ices. fruit and coffee. Ii crust and
| pastry are made with DIR. Prices Bak-
ing Powder, success crowns all.