The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-03-06

Insurance Companies May Have to Make Good
the Fees stolen by Moore.

LINCOLN. Neb., March 3.-Insurance com.
pen,es lug business in Nebraska are con.
fronted by an extraordinary situation. 1t grows
out of the embeZzlement charged against cX.
State Auditor Eugene Moore.
When Moore retired from Office last year. an
examination of his books disclosed the fact that,
out Of $34 500 no received from insurance COM
panies for fees for the privilege of doing bust
ness in the State. he paid only 81, 500 into the
State Treasury. A demand for the balance by
the State Treasurer elected the plain statement
from Moore that he had not the money, and
that il no had the money. there was no law re-
quiring him to turn it over to the State. This
announcement caused the Attorney-G General TO
flo an Information charging ENLIGHTENMENT in
short order. Moore offered to plead guilty,
provided the Court would also record his eNpla-
nation in the nature of a confession and avoid
ance. The Court refused to entertain such a
proposition. and then Moore pleaded guilty and
was sentenced TO eight years in the peniten.
tiary. A stay of proceedings was secured and
the case carried TO the Supreme Court, where
the merits OF the ex-Auditor's defence were con-
sidcred. His plea was in effect that he received
the money from the insurance companies; but,
as there was no law making him the custodian
of funds. he WAS not liable for It, The Supreme
Court took this view of the case and released
Moore. Now the State Is preparing to sue the
insurance companies for their fees on the ground
that the money should have been paid into the
Suite Treasury.
Moore was one of the most popular Republi.
can politicians, in the state up to the time his
shortage was discovered. and was the logical
candidate of the party tor Governor this year.
Now things are different. But Moore is getting
his nerve back along with his liberty. He is
preparing TO sue the state Tor the ~. 800 in fees
which he did turn in to The Treasurer. His
claim is based upon tho Supreme Courts de-
cision, which says that the money paid to him
was in no way tho DrODertv of the Stata. hut IA
trust fund for the insurance companies. and
could fSu be recovered ioy ,bs, only u by ci Th suit brought by
practically makes it clear that the insurance
companies must pay M again The Th fees which Oh they
They will oppose the attempt to make them
pay the money oyer again. but the probabilities
tho fees are being paid directly to the State
Treasurer.
The insurance companies are going to sue
Moore to recover the money paid him.. They
have already brought the matter before tho
Grand Jury here. Tho supreme Court did not
declare that Moore committed no crime: in
fact, the decision intimates that a crime was com.
miLted. but that action was based on tho wrong
the embezzlement of public funds. Moore should
have been prosecuted for the conversion OF
paid the fees should be the prosecuting wit.
nesses. Many insurance men say that an OK
ample should be made OF tho ex'Auditor.
insurance men assert that he cannot compromise
with them, Then. too. 1t is unlikely that he can
been invested In Cripple Creek mining properties.
Moore certainly had no idea of converting the
funds to.his own use when he invest ed the money,
lilo was a member or a comrAny Of Lincoln
men who made large investments at the time OF
on the Investments shortly. hut like STATS
Treasurer BARLEY. who is now under sentence
Of lwenIy years wirS, in 4 the a' penitGntiary for embes.
came 10 realize. the men no had trusted failed
to come to time. and no was loft with worthless
his accounts.