St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-06-19
brought about his downfall, and he
complied frankly.

brought about his downfall, and he
complied frankly.
.'UntH the day before Christmas" he
said, 81 had no more notion of taking
the states money than you have. The
catastrophe was the result of the panic.
In good times it would not have oc-
CURED. 1t is entirely untrue that my
predecessor in the treasurership was
short. Mr.. Smith made his settlement
with me in full. But when he did so
he exacted a promise from me that
would let him have some large deposits
afterWard and in pursuance of that
promise l was caught for $7,29J in his
failure. The loan was amply secured.
however, and the state will get the
sum in full. Nor is it true that /
would have proved a defaulter had
settlement been demanded of me at the
end of my first term. Had the state
called for a settlement l could have
raised every cent without trouble My
credit was high, was good for large
sum of money, and | had
EXTENSIVE PROPERTY.
1t is also entirely untrue that Com
missioner Ruth of the school and pub
lie lands, had any arrangement or
agreement with me about the holding
up of the school money in the summer
of 1888. We never exchanged a word
about the matter. l did hold up the
states money at that time, and 1 be-
lieved, and the other state officers be-
lieved, that it was a moral duty to do
so. The money was deposited in va
rious important banks of the state.
Strictly under the law, / should have
drawn this out. But had I done so it
would have certainly wrecked them
and probably every financial institu-
ton in South Dakota. I was keeping
careful track of the banks, and knew
that to carry out the law at that time
meant disaster. By the most vigor-
Gus work and by pulling every string
/ could I succeeded in floating the
funding warrants of the state, while
banks were falling thick and fast all
over the country.
at is not true that the money lost
went for political purposes. I was new
er a heavy contributor to political
funds, and the loans / made, whether
to men in office or not, were made upon
strictly business principles or for
friendship sake. In every case / re-
quired what I considered good security.
AS matter of fact, did make a num-
Der of these loans about as they have
already been fully described, and when
1 tried to collect them found that the
borrowers were unable to pay. This
probably cost me $50, 900. reP
Then l loaned $4,000 to a relative of
mine to invest in mining property and
he lost it. 1 was in no way concerned
in the enterprise, though 1 thought it
sound and safe, but took full seeuri-
tyand this security will amply protect.
the loan. was also drawn into the
Northwest hotel scheme during the
worlds fair. did not want to go into
it, but was compelled to do so to pro-
tect my friends who were caught and
also my word, which had been given to
some of them. There 1 lost 81, 200. Then,
came the failure of Diggs' bank, and I
lost $4,000 there.
GETTYSBURG BANK.
'"But the affair which broke my back
was the Gettysburg bank. During the
panic Leppelman came to me and de-
manded assistance. I had only $1,000
in the bank and could have lost that
without Inconvenience, but I con-
sidered that if that bank should go
there would likely be a run on my bank
at Redfield, which was known to be in
some relations with the other, and that
If one prominent institution should go
down the others would fall like a row
of bricks. l therefore took the bank
of Leppelman's hands, through the
mortgage company. But 1 had been
deceived about it's condition. 1t was
in far worse plight than I had been
led to believe. I was compelled to put
in $4,000 almost at once, and later this
sum amounted to $4,000. 1 traded
share of the assets for some property
in Newton, ILL.,, a very good bargain,
| and one which would have made me
| a good thing. l had just about com
| pleted a trade of this on most attrac-
| tive terms when an accident prevented
| it's consummation late last fall. Had
| this been completed / should have been
| able to turn over the funds to the state.
| "As a matter of fact, L had in prop
| erty on the 1st of January enough to
| make, in connection with the money
| of the state on hand in good value,
| fully $450,000. But it was impossible in
| the tight condition of the money mar
ket to realize on any of my assets.
| The first suspicion which came to me
| that could not make the turn was
! last August, but later / felt easier
| felt perfectly safe, felt that could cer-
tainly dispose of enough property or
| at least borrow
ENOUGH TO SETTLE,
until early in December. I had num-
| ber of friends, and they promised to
raise certain sums. l had the notes
! from prominent men which have been
| mentioned Treasurer Phillips came
| to me voluntarily and offered to treat
| the Redfeld bank literally. He did not
mention any sum, but 1 understood
| that I should have the use of $4,000 or
! $50, 900 for a few months, until 1 could
make the turn.
81 had invested $4,000 in Cripple
| Creek, and that proved a loss. l had
lost about $4,000 in farming during the
two years. Then my efforts to col
lect in the loans / had made to certain
| parties proved abortive. My friends
were unable to raise the money they
had promised. could not get the loan
l had expected. Every string was
pulled Then the day before Christ
mas I found that, do the best could,
I would be $150,0OO short in cash. My
first impulse was to go to Pierre and
turn over what I had, but when l
called a council of my friends it was
pointed out that this would certainly
send me to the penitentiary and would
impose heavy loss on my bondsmen.
1 therefore concluded, on my friends
advice, to put all my property and
money in trust to protect my bondsmen
and to conceal myself. The rest you
know"
SHOT HER HUSBAND.