St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-03-10
TAYLOR A TRUMP
Tried a Game to Hold Up the
State Of South Da-
kota.
OTHERS ARE IN COLLISION.
Would Pay Sureties With
Funds Stolen From the
State.
MEN WHO HAD STATE MONEY
Among the Number Were
Mellette, Pettigrew and
Kellam.
MEN WHO HAD STATE MONEY

PIERRE, S. D., March 9. =
The legislative committee investi-
eating the Taylor defalcation made
its report just before adjournment.
The proceedings were in secret, and
the reports made public for the first
time. The committee declares from
the evidence before it that it is
shown conspiracy existed between
certain sureties of Taylor and the
defaulter to ''hold up the state and
compel settlement. 1t says:
1--WE 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 T. Nc
Chesny, of New York, one of the
bondsmen, 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, 1894, and
after McChesny discovered that Tay-
lor could not raise money enough to
make his settlement, McChesny, to-
gether with Taylor, D. K. Tenny
and c. H. Wells, and c. T. Mccoy,
acting as agent at Pierre, entered
into scheme to gather up all the
funds held by Taylor, amounting to
over 100000, and all the real and
personal property owned by Taylor
wherever located and place the same
beyond the reach of the state, for
. Of hn 10 70
to agree not to prosecute Taylor
criminally or, in other words, to
compound a felony on condition that
property and money to the amount
of 100000 should be delivered up
and paid over to the state, thus re-
Eeving the sureties by paying their
liabilities with the funds stolen from
the state. The evidence shows that
they have attempted to carry out
the scheme with fraudulent intent
to defraud the state
Tenny and Wells are the Chicago
lawyers of Taylor, and McChesny one
of his bondsmen of New York. The
committee finds that the total amount
stolen by Taylor was 1914, 070.10. AS to
where the money went the evidence
shows, among other things: That he
loaned exGov. Mellette moneys
amounting to $4,000; that he loaned
Judge Kellam $4,000, and purchased a
negotiable note for 5000 given by
United States Senator Pettigrew, which
was repaid to C. T. Mccoy, Taylor's
agent, Oh or about the 7th of January,
1896. ~
Eve further find that during the
month of December last he trans
ferred from banks in the state where
he deposited public funds about $2O0, 900
to himself and for his benefit to New
York and Chicago; that he appropriat-
ed to his own use prior to December
last $145, 800. The evidence shows no
collision 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 r. Ruth, ex-com-
missioner of school and public land"
The report states that action to re-
cover has been begun in thirty differ
ent counties, and that service has been
had on all the defendants in the case ::
that suits have also been instituted
against McChesny in New York, and
William Taylor, father of the default
er. in Indiana; that che property con
sists of bank and other stocks, city
property in New Y1'k Huron, Aber-
deem, Redfield and Watertown, and
over $50 quarter Sc :tions of land scat
tered throughout the state If the re-
suits are successful, the state will re-
cover the full amount of the loss sus-
tanned by the defalcation.