The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-03-10
resulted as follows: Higgins. z; Addicks, 5
Massey, 3: Wolcott. s. Tunnell. 3.
THE TAYLOR DEFALCATIoN.
Report of the South Dakota Legisla-
tive Investigating Committee.

PIERRE. S. D., March 9.-The legislative
committee investigating the Taylor defal-
cation made it's report just before adjourn
ment Proceedings were in secret, and the
report is now made public for the first
time The committee declares from the
evidence before it that it is shown a con-
spiracy existed between certain sureties of
Taylor and the defaulter to hold up the
State and compel settlement. 1t says:
I'VE do not find that there was any collision
among the sureties or other persons with
him to defraud the State prior to the time
when it became apparent to John 7. Me
Chesney, of New York, one of the bonds
men, that Taylor would not be able to make
his settlement with the State. But we do
find evidence strongly tending to show that,
in the latter part of December, 1884, and
after McChesney discovered that Taylor
could not raise money enough to make
his settlement, McChesney. together
with Taylor, D. K. Tenney and
G.. H. Wells and c. T. Mccoy,
scheme to gather up the funds held by lay
lor, amounting TO over $2U0,00o and all the
real anu personal property owned by Tay-
same beyond the reach of the State, for the
purpose OF compelling the State to agree
other words, to compound a felony, on con-
dition tnaL property and money to the
amount OF $bU,0O0 should be delivered
and paid over to the state, thus relieving
the sureties by paying their liabilities with
the funds stolen from the State. The evil
dence shows that they have attempted to
carry out the scheme with fraudulent in
tention to defraud the State.
yers of Taylor. and McChesney is one of his
pondsmen. The committee hnds that the
total amount stolen by Taylor was $544 070.1 10.
AS to where the money went the evidence
shows, among other Things, that he
"foaned ex-governor Meiiette moneys
Judge Keilam $4,000 and purchased a negou-
able note Tor 1870 given by United states
senator Petugrew, which was repaid to Z.
4. MCCOY. Taylor agent, on or aoout the
7th of January, 1885,
We further find" the report says, that,
during the month of December last, he
transferred from banks in the State, where
he deposited public funds, about 100000 to
himself and for his benefit to New York
and Chicago; that he appropriated to his
own use, prior. to December last 146, 500
The evidence shows no collusion on the
part of any State officer with the defaulting
Treasurer. There is, however, testimony
showing gross negligence, to say the least,
on the part of, Thomas H. Ruth, ex-Com-
missioner of School and Public Lands.
has been begun in thirty different counties
and that service has been served on all the
defendants in the case, that suits have also
been instituted against McChesney in New
York and William Taylor father of the de-
faulter. in Indiana. That the property con-
sists OF bank ard other stocks, city
property in New York. Huron, Aber-
deem, RedfieId and Watertown and over
$50 quarter sections of land scattered
throughout the State II the suits are sue t,,
amount of the loss sustained by the defal-
cation.