St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-13

showing conclusively that Ruth and
Taylor were, during the panic, using
the state money in their banks instead
of distributing it to the people, where it
belonged. The pounding, however, be-
came very hot, and the deputy sent on
the letters to Ruth. in Pennsylvania.
He, finally, about the 1St of August,
wro;e his depu y, instrucung him to ap-
portion the permanent fund, which
amounted at that time TO S97, 600, and
stated that there were In his drawers
signed vouchers. In case there were
not enough vouchers the deputy was to
send new set to him for his signature.
Only two were found, and the deputy
sent him new book. At this time
Euth's Wife Was Sick
and shortly died. The deputy had made
the apportionment of the permanent
fund. and had notified the counties that
their vouchers were ready. Not getting
the money, they continued their pound
ing, and Ruth wrote between the death
and funeral of his wife that he would
attend to the matter in few days. he
did not do so for three weeks, and then
wrote that he had decided not TO, writ
ing to the county officials that no ap-
portionment had been made, because
there was no fund on hand. at this
time the fund amounted to about $780,
000. In September the school board of
Sioux Falls began suit to compel the
payment of the money, and Ruth, haV'
ing meanwhile returned from the East,
became frightened, and paid what was
due to Minnehaha county, but none TO
the other counties. Finally, toward the
last OF November, Ruth made the ap-
pOrtionment, which had been due five
months before, but instead of appOrtiOn-
ing the $97, 900 which had been in the
fund when the deputy appOrtiOned 1t in
August, he distributed only $4,000, al
though there was at that time Ill the
treasury more than $l3O,0O0. The gov
erhOr wrote to him, stating that he was
not complying with the law, and order
ing him to proceed and dc SO, and point
ing out that the people of the state, III
their depressed condition, needed all
the money possible. Ruth replied in
all insulting and impudent letter. in
effect telling the governor that it was
none of his business, and requesting
him to keep out of the land Office. The
balance of the school money, which was
constantly growing as the semi-annual
interest was paid and the lands we're
sold, was thus kept in the treasury
until the following June, when correct
apportiOnment was made. BY the hold
ing up of this money and the conversion
Of it to his own use and that Of the
treasurer, the state was
Put 20 Loss
of at least so. 900. Ruth has never
made any explanation of his action eX
cept to state that to draw out the money
from the banks at that time OF panic
was to bring about crash. Now comes
one of the most important parts of the
story. The last apportiOnment was due
on the 18th of last November, and, had
the statute been followed, the money
would have been paid then and the state
would have saved 10000. Ruth was
again in Pennsylvania. On the Sth
the deputy made out the schedule of the
appOrtionment and sent it TO Ruth for
his approval. There was at that time
in the permanent fund S42, ,526 and in
the income fund S51, ,543. The schedule
was returned as correct, and the deputy
notified the counties. Ruth returned
toward the end of November,
but, though the statute is man
datory, he refused to send out the
vouchers to the counties until Dec. q.
This left practically no time for the
county treasurers to draw on the treas
urer before the end of the year, and
only seven thousand were so drawn.
When the rest came in they found the
treasury empty and the treasurer
flown. There is no question in the
minds of officials here that Ruth and
Taylor were, and had been from the
panicky times of two years ago. closely
interested together i'll the disposition
of the public funds, that they were both
using them for their own profit, and
that Ruth, knowing that Taylor was
short, held back this last apportionment
to the last day to allow the treasurer to
make turn and to replenish the fund
of the state. Had he distributed the
money at the time prescribed by the
statute, the vouchers would have been
presented and cashed before the end Of
November, and the school fund would
have saved fully 500, 600.