The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-10
THE STATE HELD UP.
Taylor's Bondsmen In the Deal
TO Job South Dakota.
THE TREASURER STOLE $4,000
When the sureties Found He Was
Short They Had Him Make . Clean
Up-Msaleets Got see, 900.

Pierre. s. D.. March s.-The legislative
committee investigating the Taylor defai-
cation made its report just before adj
5ournment- The proceedings were In Sc
cret. and the report Is now made public
for the first time. The committee declares
that from the evidence before IL 1t IL
shown that q conspiracy existed between
certain sureties OF Taylor and the de-
fauiter TO '.hoid-up" the state and compel
q settlement Ii says:
I'VE do not find that there was any col
fusion among the sureties or any other
persons with him 10 defraud the state
prior to the time when IL became appar-
ent 10 John T. McChesney, OF New York.
one of thu bondsmen, that Taylor would
not be able TO make his settlement with
the state. But we do find evidence strong
ly tending 10 show that in the latter part
OF December. 1854 and after McChesney
discovered that Taylor could not raise
money enough TO make his settlement.
McChesney, together with Taylor. ID. X.
Tenny. G.. II. Wells and C. T. Mccoy. act
ing as agent for Pierre, entered into q
scheme 10 gather up all the funds held by
Taylor, amounting TO over 500 600. and the
real and personal property owned by Tay-
ior, wherever located, and place the same
beyond the reach Of the state. for the
purpose of compelling the state 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 $780, 900 should be delivered up
and paid over TO the state. thus relieving
the sureties by paying their liabilities
with the funds stolen from the state. The
evidence showed they had attempted to
carry out the scheme with fraudulent In
tent to defraud the state"
Tenny and Wells are Chicago lawyers
OF Taylor and McChesney. The commit
tee finds that the total amount stolen by
TAYLOR was $3A,o70 As to where the
money went the evidences shows among
other things that he loaned ex-Gov
Meiiette moneys amounting to SO 900. and
that he loaned Judge Kellam $500, and
purchased a negotiable note for $500
given by United States Senator Pettigrew,
which was repaid to C. T. Mccoy. Tay-
lor's agent. on or about the 7th Of Janu-
airy, 1856"
1--WE further find that during the month
of December last he transferred from
fifteen banks 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 up to
December last $li5. s00''
THE evidence shows no collision on the
part of any state officers with the default
Ing treasurer. There Is, however, testi-
mony showing gross negligence. to say
the least. on the part of Thomas H. Ruth,
ex-commissioner of schools and public
lands"
The report states that action to recover
has been begun In thirty different coun-
ties. and that service has been had on all
the different defendants in the case; that
suits have also been instituted against
McChesney In New York and William
Taylor, father of the defaulter, In In
diana.