Semi-weekly register. (Brookings, Brookings Co., S.D.) 1894-1898, 1895-01-16


liar deed to parties there, and was
about to turn over the money to Tay-
lor, when the crash came.
He learned that Taylor had recorded
the deed and had mortgaged the prop
erty for it's full value, and the Two
deeds were placed on record Wednes-
day night, the day after the defalca-
tion became known. This bankrupts
Mellette and deprives the state of any
chance of recovering from him as
bOndSman. He has, however, given
the attorney general a full list of his
property and the state has already
attached and will contest the deed
given by Taylor. Mellette had con-
ference with Taylor in Chicago on the
18th of December, and they were at
the same hotel.
Mellette states that Taylor informed
him that the real cause of his troubles
began with his connection with Lep-
pelman's bank at Gettysburg Early
in '93, during the panic, Taylor was
besought to 60 to the aid of Leppel-
mans bank and he was urfed to do so
in order to avert and thereby prevent
general blocking of banks in the
state and ruin of the people. He
did SO, but some time afterwards
discovered that the bank was in much
worse condition than he had supposed,
and in order to save what he put in,
he put up 100000 more, but even this
did not prevent the failure, which
came three months ago. All Of this
was state money.
He received large amount Of real
estate, merchandise stock and other
property, and a short time ago at
tempted to organize syndicate in
Illinois and to sell it. Shortly before
the bank closed, he had arranged to
sell the property for $4,000, but the
deal fell through. Being unable to
get help, he found himself short $780,
600 and seizing everything in sight
fled.
His losses on other deals during the
past two years have cost him fully as
much. Before he left he placed full
mortgage on all of his property of all
kinds so that the State cannot recover
from it. 1t is also understood now
that most of his bondsmen are free,
having received tip of what was to
happen. EX-Gov. Mellette, who is
here, believes he will be able to break
the deed by which Taylor fraudulently
sold his property, and will pay the
state $4,000.
SEE A WAY OUT.
The state officials have devised a
plan for Strengthening out the finances
despite the great loss from Taylor's
and now will have clear
sailing. The revenue committee has
reported bill empowering the treas
urer to float funding warrants in an
of the expected tax returns,
which amounts to about 100000. The
state will realize from this enough to
run the different departments until
when the state equalization
board will be instructed to levy a de-
ficiency tax sufficient to wipe out the
deficit.
Within the past few days more than
$4,000 have been received from the
counties in reply to the emergency de-
mand made on Wednesday by the state
auditor for all taxes now in the county
treasurers' hands and the amount will
double within the next week.
This will be enough to cover the state
expenses for a month, or until the
treasurer floats the funding warrants.
SCHOOLS MUST CLOSE.
The appropriation committee has
appointed subcommittee to take ac-
tion in reference to the state educa-
tional institutions. The committee
reported Monday advising that the
state university at VermiliOn, the
school of mines at Rapid City, and the
normal school at Spearfish be closed.
BONDsMEN MEET.
1t is reported that the bOndsmen of
ex-treasurer Taylor held meeting at
Chicago Monday. ex-governor Mel
lette was in that city, and being in
terviewed said: 'It is question
Taylor is in this country or
Europe. There Is much diversity Of