St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-13
RUTH IS INVOLVED.
Matters Look Very Dark for
South Dakota's Land Com
missioner.
HELD UP PUBLIC FUNDS
With the Evident Intention
Of Shielding Treasurer
Taylor.
SOME PECULIAR MOVES.
The Legislature Will Make a
Very Thorough InVesti-
cation.
HELD UP PUBLIC FUNDS
SOME PECULIAR MOVES.
eneciRl 10 The Clone.

Special to the Globe
PIERRE. S. D., Jan. 12.-It neverr rains
but it pours. The state officers, who
have for the past three days been par
nlyzed over the flight and defalcatioD Of
Treasurer Taylor. are today filled with
CONSERVATION at the revelations which
every day is bringing forth. No atten-
tion is being paid to the legislative pro-
ceedings. Even the members spend lit
tie time in the chamber, and they and
the officials are spending all of their
time IN discussing the fresh disclosures
which each hour brings forth. Today
another sensation has come to light
which raises a greater storm than even
the flight of the treasurer or the con-
5plracy of certain of the bondsmen to
hold up the state for the cash and re-
lease. This time another high public
official is implicated, and the evidence
is so conclusive and SO damning that 1t
has shaken the state government from
end to end. 1t appears that the COM
missioner of public lands, Col. Thomas
II. Ruth, who, by the way. is at the
head Of the militia of the state. has act
ed in gross violation of the statutes, and
has thereby cost the state more than
100000. 1t is felt to be certain, more
over. that he has been
An Accomplicc Of Taylor
in diyertjng the public funds to his own
private uses, and that he is equally liza
bic. The commissioner of public lands
has control of all the school lands in
the state When South Dakota was ad-
mitted into the Union it was granted
5000, 900 acres by the general govern
ment for schools. This land cannot be
sold for less than SO an acre, and each
year the commissioner offers it for sale
on an appraisement which he makes.
No land is sold for less than the ap-
Dra!sement, but, particularly in the
more populOus counties, very large
sums are realized. This office handles
hundreds of thousands in this way.
When the money is received for the sale
II is divided among the vaTiOnS counties
and is by them loaned on approved Sc
curity. The interest on these loans, ,and
also the interest on the deferred pay
ments on the land sales, is divided
among the schools of the state in pro-
portion to the school population. The
fund has grown 50 large that from
$780, 600 to $4,000 is divided. The stat
ute provides that the appraisment shall
be made on June 10 and Nov. 10 of each
year. The state treasurer has the cus-
tody of the money, but the commissions
er makes The distribution. 1t now APP
pears that both Commissioner Ruth and
Treasurer Taylor have been acting in
concert for two years, and that they
both used the funds for
Their Own Private Benefit,
and both are concerned in the great loss
the public has sustained. The legis-
lature has now ordered a thorough in
vestigation of the commissioners Office,
and it will doubtless ind that there has
been a widespread conspiracy covering
a long time. The actual facts of the
conspiracy between tine treasurer and
the commissioner are not generally
known here, but the following story
will be brought out on the investigation
which will take place at once: Col.
Ruth. like Treasurer Taylor, is a
banker. his bank being located at De-
Smet, the county seat Of Kingsbury
county. When the panic of 1898 came
on there was on hand in the school fund
fully $500 600, large share of which
was in De Smet and RedfeId banks. II
common with other banks, these two
felt the press of the ran and they
prOlted by their use Of the state funds.
According to the statute the apportion-
ment of the school funds should have
been made on June -, and the schools
in various parts OF the state were eX-
pee-iug it, in view of the hard times
and the slow collections of taxes. The
regular course would have been for the
commissioner to appOrtion the fund and
send vouchers to the various counties
before The first day of July Instead of
that Ruth left for Carmichael, Pa, his
old home. Time passed along and
nothing was heard from the school
fund. The counties began to clamor.
They had nothing to pay their school
expenses with. The county auditors.
who have the loaning of the permanent
fund, began to send in strong demands
for the apportionmento of thatfunt, with
8 vigorous Statement
that its distribution at that time would
mean the relief Of thousands of people
who were struggling against the wave
of depression Just then devastating the
entire country. The deputies in the
commissioners Office replied that, Ruth
being absent, nothing could be done.
About this time Ruth senta letter to
Treasurer Taylor, and also one to the
treasurer Of Clay county, and in some
way mixed the envelopes. This letter,
which Public Examiner Myers stated to
& number Of officials at the time that he
saw. read substantially as follows:
There seems 10 be a great pounding in the
state over the holding up of this state
money The only thing that we can do is to
let them pound. We have as much use fol
the money as any one. l must have that
forly-fve thousand. Don't let the money be
appordoned until my return.
This letter was returned by the treas
urer of Clay county, who showed it to
several persons. bHs did not report it to
the state officials. This is remarked as