New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-11
SOUTH DAKOTA BANKRUPT
THE STATES CASH ALL CARRIED OFF BY
HER RAsCALLY TREASURER
TAYLOR AND HIS CoNFEDERATEs coNsPIRE TO
HOLD Up THE PLUNDERED COMMONWEALTH
THE FUGITIVE THOUGHT TO HAVE
QUARTER OF A MILLION OF
STOLEN FUNDS WITH HIM
STOLEN FUNDS WITH HIM.

STOLEN FUNDS WITH HIM.
Pierre S. D. Jan. lo.-To-days developments in
dlcate that there was skful conspiracy of large
proportions in the flight of State Treasurer w. W.
TavIor and the loss TO the State of $4,000. Facts
have come into the possession OF the State officials
which make them reasonably certain that Taylor
and confederatps deliberately went to work, after
1t became evident that he could not square mis-
accounts to hold up the State and compel COM
promise by which he should be saved from pun
ishment and his bondsmen protected from loss
The state was in a tight place financially. II not
"A cent had been lost there would nave Deeh de-
felt July t. next. OF fully 100000. due to excess OF
appropriations by the last Legislature, ana 10 the
slow payment Of taxes on account OF the snor.
crops The limit OF taxation has been reached
and the limit of Indebtedness passed for some
time To extricate the commonwealth has peen
the subject commanding earnest thousht Oh the
State officials for several months. Permanent APP
proprlations are so high that the Legislature no
matter what economy is pract!sed, could haroS
bring tho expenditures within the revenue ine'e
was due January >. $22o0Op worth OF funding war
rants held ia the East There due con-
siderable sim on the coupon bonds. while the SINK
ing fund was preparing 10 take up the seihi-ah-
nual interest to the amount Of 10000 Tne hegis-
lature WAS I'm session and immediate calls would
bo made on the treasury for At least %VlV'.
OF course the Treasurer knew all this. II Is oe-
levcd by tho authOrti~s IN substantlaI e''ue"ce'
that realizing he would be short 100000 when the
transfer Naa - be made January \. ne cohsu'1eu
with some friends and hackers. and tney decIueu
that Che best thing to do was TO seize all the money
in the Treasury and put II In place OF hldhs
where il could no reached when desired Then
when the default discovered. the state WouIi
be found bankrupt 1t coIld pay its obligations
and having exceeded the limit Of Its debt could not
borrow II IL sued on the bonds Of the treasurer
two years more would elapse before any money
could be recovered and during that time the credit
OF South Dakota would sink very low. Inc parties
to the plan thought that rather than come 10 th's
pass the state officials would DO almost anything
within reason Then the plan to come forward
through an agent and propose TO pay back 10 the
state the s2joV)O which the Treasurer mas carrled
on on condition that the bondsmen should be re-
leased and that Taylor should be relieved from
prosecution. Had he come TO Pierre TUESDAY ana
surrend red he would have been a common feon
and would have gone TO the penitentiary for ten or
fifteen wears His bondsmen would have been bank
rtiot since A suit under the bonds at tnis time
would have driven several. II not all, OF them 10
the wall. Under the plan adopted both Taylor and
MS bondsmen would be free from any annoyance
and the State would be the only loser.
The Attorney General has begun suit on the bonds
and it is understood there Will be contest IL Is
believed that Taylor IS hiding in the East IL Il
known that he had when he left here fully S@o""V
In cash and he could have drawn in Ne"-lork
10000 more A strong attempt Is being mace
here to throw doubt the validity Of the bonGs.
All sorts of rugnors have been set aioat by lay
lor's friends to prevent rigid prosecution Il is
.ald that the shortage due To the liberalty
with which he supported various banks during the
panic and received notes on which he mas faiea
70 realize The State officials are making strenuous
Efforts 20 save sufficient cash 10 Keep the various
state institutions running. and the perenpiory can
for taxes Is expected produce enough 10 tide over
for mn but the state AulltOr
r..ls poeltive that South Dakota must default on
m. bond interest due in June Every onort is being
made 20 apprehend Taylor.
LAST night ten men left the midnight train for
various parts OF the state. and by this time all
the property In the State belonging 70 Taylor or
any Of his hondsmen has been attached
Deputy Treasurer Burlington to-day received
letter from Taylor dated January 8. from New
York and iuclosng. certified deposit checks ior
emergency cal on all the country Ieasurers for all
the funds in their hands due the state
Relneld : D.. Jan. lO.-Bank Examiner thinner
man ls here at work the books Of the First Ma
,lonal Bank Of which the dcfauting State Treas
urer WAS president He says II Will take a week
70 discover its condition. There IS general dispo-
slton on the part Of the depos!iors to accept time
deposit certificates and allow the bank directory 10
re,rganize I. seems be generally conceded tht
the banks assets VIII permit this. Nobody inter
es,ed desires a receiver. Since the defalcation OF
Taylor there has been some lively scrambhng 20
iors father was on his bond for $1,000 and X is re-
portei that he is on his way TO Pierre.
Chicago Jan. i0.-On Tuesday morning man OF
middle age short. heavy set and well-dressed,
with "A plain vaiise for baggage walked into the
Great Northern Hotel and registered W. W.
Ta,Ior OF New-York lie kept close 10 his room
all day. He retired early and arose betimes yes
terday morning. fIe left the hotel on foot. carry
ing his valisc and the hour of his departure indi,
Gated that he had purposed taking II westoound
train II Intending to leave the city. He held no
conversation with any one. ana, on the contrary
seemed - court silence.
W. l. McMaster. secretary OF the Western Home
stead and Irrigation Company. with offices In this
city. to-day said that he had seen Tayor the
missing treasurer OF South Dakota. when Mr.
Tavlor was I'm Chicago about January l. AT
that time" said Mr.. McMaster. he turned all
his assets over to his bondsmen. | am sure he
will be more than able 10 meet the loss LETT In
the State Treasury. He has assets for double the
values will not be able to realize on them at once
The state will not .ose dollar. Am am sure Mr sn,
that matter that he got very little of 1t originally
to mention. received most OF the money. have
intimate friend OF mine. ana KNOW ne VIII come
ont all right in the end"
Mr McAiaster declared that he did not know the
present movements of the Treasurer The two men
have been associated together In business IN ms
city and were at time Interested In n worlds
Fair hotel The enterprise did not prove prosperous
and abandoned
LAFAYETTE Ind Jan. 10-The announcement that
" " Tavlor Treasurer of South Dakota failed
to surrender his office. and that he Is believed to
be a quarter OF a million dollars short In hts ac.
counts was received here yesterday, ana caused
sreat surprise and regret. Mr.. Taylor was born
and reared in this city and is a son oi Major
William Taylor head OF the private banking urn
Ia vior family here are not involved In the DAKOTA
affair The family here Is ignorant OF w W ray
ior's affairs lie visited here several weeks ago
but nothing definite concerning his present move
ments can be learned.
Henry W Cannon. president of the Chase National
Bank gave out the following statement yesterday
in reference to the defalcation OF W. W. Taylor
ex-treasurer OF South Dakota:
Tho s,stsmen, that the Chase National Bank holds
$4,000 South Dakota warrants Is Incorrect Inc
official account OF the State Treasurer OF Soutn "a
kota has for some time been kept with this pank
and the State warrants made payable mere we
have no doubt that the holders OF the warrants are