Omaha daily bee., 1899-02-19
PLACE CORNELL on THE RACK
Legislative Investigating Committee Begins
Work on State Auditor.
OFFICIAL TAKES THE WITNESS STAND
investigation DiscIoses the Fact that
the Methods of Keeping Books
In the ONCE Are Very
Loose.

LINCOLN, Feb 1s-Cspecial)-T legis-
lative investigating committee, OF which
Senator Prout Is chairman. began its work
today In the auditors once and first eX-
amlned Mr. Cornell making the examination
OF the most searching character.
Tho afternoon was spent in going through
the letter files and records of the office and
such documents Us seemed valuable in the
investigation we're wrapped up and removed
from the Office BY the committee. 1t Is GER
tain now that two letters were found in the
files more damaging even than the Palm
"holdup" letter, but the committee Will not
make them public until some testimony Is
taken from the interested parties on this
point.
The examination during the forenoon
showed a very loose method on the part of
the auditor in keeping the accounts of the
department, some parts being trusted to
memory alone. while other accounts were
kept in private memorandum. The exam
iners were not required to report their fees
or expenses and the auditor himself kept
no record of his bills when he was out
looking over the books of companies.
Mr.. Cornell was called upon to give the
names of his employees in detail including
the capacity in which they were serving in
the office. He said that his nephew, J. A.
Simpson, +. A. Archard. o. w. Palm, r. N
Taylor, John Gilchrist and T. j. Gillian had
worked at examining companies. The latter
was resident Of Nemaha county and the
auditor could not tell for certain whether
he was an insurance agent or not These
men had made the examinations on separate
commissions and had made reports to the
auditor for his personal use, some of which
we're in his private memorandum, while
some were in letter files. Not all of the
letters we're in these files, some had been
destroyed. He did not think he had a COM
plete record of the various commissions
issued to examiners. He did not consider
that the examinations were for the public
use but only to satisfy the auditor that the
companies were all right. Mr.. Cornell said
that in case he himself made an examina-
tion he did not consider 1t would be neces-
sary to make any written report or memo
randum.
Office Follows a Precedent.
In answer to question by Attorney
Bryant tho auditor said that in the manner
of conducting the examinations and failing
to make public the record of charges the
Office had followed the precedent established
by other auditors.
the Identification Of letters, documents and
books in the office of the auditor and these
tbs committee took to e private room for
inspection. Among the letters identified by
the auditor are several from Examiner
Palm, the contents of which were not dis
closed to the public and which from the
actions of the members of the committee
appeared to be rather rich find.
The examination today was conducted in
testimony was taken down by official
stenographers so that there was no delay
in tie work The members of the commit
tee present were Prout, Weaver, Currie,
Evans and Fisher Senator Hale was alb
sent but will be on hand next week. The
committee expects to finish the inspection
OF the records and documents to be
able to again take UP the examination of
witnesses. The statement is made that the
hearings will continue to be public.
Governors Committee at Work.
The committee appointed by the governor
to conduct an examination of the auditor S
Office held a meeting at the office Of the at
torney general yesterday afternoon. The
committee consisted of the attorney gen.
eral the land commissioner and the secre-
tary of state. The stenographer from the
secretary's Office took down the testimony.
No specific charges had been filed with the
committee and neither Mr.. Lichty nor any
one representing him attended, it having
been decided by Lichty's adherents that
this committee had no power"
Auditor Cornell was on the witness stant
most of the afternoon and the eXamina
ton was conducted by w. f. Bryant, his
attorney, the state officers composing tbs
committee also assisting to bring out the
facts presenting Mr.. Cornell's defense.
Cornell first explained about the warrant
that Deputy Pool had drawn for extra serv-
ices. He said it was passed upon adversely
by the attorney general, but he himself
did not consider the opinion of that officer
good law and he had, as he construed IT.
been sustained by the supreme court. He
thought Pool had right to keep the money
The supreme court decision referred to II
the examination was the one in the Irvine
case rendered twenty months after Poo
drew the disputed warrant.
The auditor said that, in his opinion, hi
clerks Price and Whitaker fully earned
their money and he thought they were en-
titled to the extra pay given them for pack