The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-12
He Did Not Sec South Dakota's Fugi-
He Secure Aid at Lafayette, Ind.
HOW TAYLOR LOST MONEY
LOANED 100000 TO AN INsOLvENT
BANK AT GETTYSBURG.
All Taken from the State Treasury
The Defaulter Reported to Have
Been Arrested in Memphis.

PIERRE, S. D., Jan. 1.-THE Taylor de-
falcation still absorbs all interest at the
capital. Ex-Governor Mellette came here
on last evenings train. He is one of the
heaviest bondsmen, and before the flight
of Taylor was known even to the State Off
cials he wired from Lafayette, Ind, that
he would be here last night, and not to
begin suit on the bonds, as he would turn
everything over to the State. AS Lafay-
ette is the home of Taylor's father it was
supposed that Mr.. Mellette would have
a proposition from the bondsmen for some
sort of settlement. This was not true.
He came simply as an individual, and is
unable to throw any direct light the
situation. He gives some information.
which has changed the theory on which
the people here have been proceeding,
namely, that Taylor has been collecting
every cent of available cash in order to
pinch the State and force a compromise.
The Ex-Governor has had intimate business
relations with Taylor and on Thursday
last went to Chicago to meet Taylor and
straighten his affairs. Taylor had left the
day before, and although Mellette searched
for him for two days he could get no trace
of him. He then went to Lafayette and
discovered that Taylor was short; that his
friends were unable to help him out, and
that the default was inevitable. Mellette
was in Chicago on Dec IL, and met Taylor
there. The latter was apparently in con-
ference with a number of his friends and
bondsmen, and with Leppellman, whose
bank at Gettysburg failed three months
ago. and who. through that really dragged
Taylor down to his ruin.
The Ex-Governor knew Mr. Taylor inti-
mately and trusted him thoroughly. He
or ta- hat To axla te,l1 r,;,~~
ago the history of the bank at Gettys-
burg and the way in which he was caught.
During the panic of eighteen months ago
the bank got into close quarters and ap-
pealed TO Taylor for help. After consult
ing with various bankers ne loaned $4,000
of the States money, all agreeing that to
let the bank fail at that time would endan-
ger every bank in the State and would
probably bring ruin on all the people, As
he had helped out several other institu-
tions he helped this one. He soon found,
however, that the condition of the institu-
ton was much worse than he had sus-
pected, and having placed SO great sum
there he sent good money after bad until
he had sunk 100000. Then came his other
losses, amounting to fully half as much
and he was unable to borrow or SELL A
possession from this bank-real estate,
merchandise, stock, cattle and other arti-
cies--and ne made strenuous effort to sell.
In this he failed, and for time his friends
helped him out They reached their limit,
however. and he was thrown on his own
resources He could not get money from
the East and was forced TO the wall Mel
lette has no knowledge or suspicion of his
whereabouts. 1t is known that Taylor. a
few days ago. put all his property out of
his hands, and even conveyed some trust
funds, which VIII seriously embarrass scme
OF his friends. Investigation seems TO show
that fne bonds are of small value. except
oue. and that Is not known. 1t Is un-