The Red Cloud chief., 1899-02-24
INVESTIGATING THE AUDITOR,
Two COMMITTEES Keep Mr.. Cornell Pretty
Busy.

Busy.
Saturdays work in the investigation
Of the auditors Office amounted to
quite a little. The governors COM
mission had before it rs witnesses
Deputy Auditor Pool, Auditor Cornell,
Fred Jewell and Mr.. W%hittaker,a clerk
in he auditors office.
Mr.. Pool testified in regard to tn,
warrant he had received for extra
labor, giving the details. He identified
the letter written by Mr.. Lichty to an
insurance company, in which he tells
the manager how to correct his state
ment to make the company appear to
be solvent The annual statement Of
the company was produced. The COM
mission or license to the committee
had been granted by Lichty, but as
soon as Auditor Cornell learned the
contents Of the letter he had the license
recalled, and no new license had been
ssued by the auditor. He also testified
in relation TO the charge that he had
kept fees in his possession a long time.
lie said Mr.. Lichty first received drafts
and checks in payment OF fees and
sometimes kept them over n month
before turning them over. The auditor
said he turned the drafts and checks
into the bank and sometimes kept the
money there three months. lie told
Of a trip Mr.. Lichty made to Kansas
City to attend a meeting of insurance
commissioners. Mr.. Lichty had n bill
claim for the expenses of the trip be-
fore the Legislature.
Fred Jewell testified that he had
often heard Auditor Cornell dictate
telegraph to insurance com
panics. 1t was often; IF the bill for
examination is satisfactory, pay it,"
Mr.. Whitaker, a clerk in the audi
tors Office testified that a Falls City
gentleman who was on ex-Auditor Eu-
gene Moore's first term bond, had
asked him and Mr.. Lichty to ascertain
whether Mr.. Moore was short in his
accounts during his first term. An
examiner was then at work on records
of the office and the information was
secured that there was a shortage Of
only n few dollars during the first
term. The Falls City man f,lt very
good over the information and init
mated in some way that he might fur
nish O suit of clothes for tho favor per-
formed. Mr.. Lichty went to a Lincoln
tailor and ordered n $50 suit and tho
bill was sent to the Falls City man,
who paid it, though apparently much
surprised at the improved taste Of Mr..
Lichty In the matter of raiment.
The auditor told in q concise manner
the matter of the mail received in the
Office; that he had never until after the
Palm letter had been taken, forbidden
Lichty to open his mail. lie said he
and Lichty had n controversy over sec
ton 80 OF the insurance law, and while
both believed it should be enforced.
Mr.. Lichty thought collections ought
to be made from the time the law was
put in force, 1873. while the auditor
thought best to make collections for
his term only, and asked the attorney
generals opinion about going back
and collecting the others. lie thought
the collections were being made by
Lichty and did not know until some
time after that they were not.
Mr.. O. w. Palm did not deny tho
authorship of the famous ''hold-up">
letter, but said he did not make UNI
reasonable charges; that he used the
term "hold-up' simply because the ex-
animation fee was SO termed by those
concerned. lie said that Mr.. Lichty
wanted him to charge more, but he
didn't.