Omaha daily bee., 1899-03-01

WOrk, as SHOWN Dy Jne receipt lToIh tue Nd-
tional Aid, already published.
The certificate to Simpson to examine the
National Aid was produced and Liohty cre-
ated somewhat of sensation when he de-
clared that the signature John f. Cornell
was not in the handwriting of the auditor.
The certificate was written by Simpson.
comparison of other signatures showed that
the signature was not Cornel's.
Simpson being still absent, and letter
book wanted by the committee also having
disappeared, a consultation was had as to
the best manner of getting the dodging eN-
amner before the committee. At 9;55 a
messenger was sent out to Cornells resi-
dence after him.
The indications were that when Simpson
was off on trip he took with him official
letterheads, stamped with the seal of the
state, and when he desired to examine a
company he wrote and signed up GER
tifcate to fit the occasion. A letter from
the Kansas company said that Simpson be-
gan work on January /, the same date borne
by the certificate, which purported to have
been written here at Lincoln.
| Lichty said Simpson examined Lincoln
company and obeyed the law in the rate
of charges Simpson boarded at home,
however, and charged the company SO per
day for board. The officials of the COM
pany told Lichty they did not object to this
examination; because 1t would create sus-
| picion and harm them in other states
| Simpson had been referred to by the ofti-
cials as a fit subject for a kindergarten.
| The witness said his first notice of the in
suranCe hodups came from Ed =. Smith,
who had learned in Omaha that the au-
ditor's Office was levyng tribute on the
companies. This was in the summer of
| 1897.
Cornell Endorses Raids on Treasury.
Ed Smith came into the auditors office
| the next day and raised a commoton because
| deputies were pocketing fees for work done
in the Office Cornell was there and heard
it. Deputy Weisner Of the secretary's office
also came over and read the law, which re-
suited in some of the money being paid over.
The story of the warrant taken by Deputy
| Pool was retold. The amount taken was
| 1926. 1t was for work that had already been
! done and for which another man had been
paid The auditor refused to have the money
paid back. He had allowed pay TO Price and
! Whitaker in addition to their regular pay
! The auditor always upheld and endorsed
| these raids on the treasury. Lichty told
! how Deputy Pool overruled the others in the
! Office and ordered supplies that cost the
state 5000. In 1897 the auditor retained fees
to large amount, banking the money with
| friends. When Lichty protested against this
| practice Cornell said Tom Benton had told
| him: "The best way to handle this money is
/ to Keep it two years and then see what the
| courts say" H "' - .....
Cornell also told Lichty that he had better
take So, 900 or, $4,000 himself to use. Lchty
refused to do this, Cornell held out the
{, money Until the, summer of 1897. Then the
newspapers made, 2 fuss and he paid most
| Of it over. After the newspaper talk the
money was paid over more promptly.
The committee here excused Lichty and
called Auditor Cornell, who had just come
into the room. Cornell told how Simpson
had been sent out to examine companies in
Kansas. The certificate to examine the Ma
tional Aid had been written by Simpson
under his direction. Simpson did not have
authority to sign the auditors name. Cornell
] was then shown the letter Of authority and
testified that tho signature was not his own;
be could not tell in whose writing it was.
I He was sure he had told Simpson he could
1 examine the National Aid company, but
1 could not explain the strange signature.
l. Cornell was excused in order that he might
1 produce the missing book, showing the fees
received by the office. After some search the
book was found On page ~ was record
of examinations by Simpson and Archard,
and It was shown that some additional en-
tries had been made since the committee last
saw the book. None of Palms work was
recorded however At 1880, Simpson not
having been found the committee adjourned
subject to call of the chairman.
-s Mutz Scents Crookedncss.
The scandal in the auditors Office now
| brings to mind the report on the condition
of this office which was to have been made
by the Mutz smiling committee, but which
was for some reason suppressed. The
| knowledge that the committee had found
damaging things in the auditors office was
first made public by the chairman of the
committee a little over year ago. Sena-
tors Mutz and Beal sent for The Bee cor
respondent to come to their office in the up
per part of the capitol building They there
interviewed themselves about the forthcom-
ing report, saying that matters of a startling
nature would be disclosed regarding the
present auditor and his management of the
Office that would give people something to
talk about besides the Eugene Moore case
They said the disclosures would be hard on
the reform party but that the committee
could not help this. as it was appointed to
find the facts.
This interview was given out for publica-
tion, and although 1t contained no details of
the state of affairs in the auditors Office, it
Icreated mild sensation at the capitol build
ing when 1t appeared in The Bee the next
morning.
After this strong "buff' by the smiling
| committee, 1t was matter of general COM
ment when the report finally came out with
out containing the threatened exposure, and
the Mutz- Beal combination was accused of
making the threat of exposure 80 that Cor
| nell could be held up"
Whatever the reason it is certain that the
matter damaging to the official reputation
of Cornell and his assistants was cut out of
the report. Mutz and Beal were soon candi-
dates for re- election at the hands of the re
form party" and Expert Taylor, who eX-
amined the auditors office. was afterward
allowed to go on some of the junkets to ex-
anime eastern insurance companies and the
auditor has testified lately that he loaned
money to Taylor to enable him to take the
| trip. 1t is possible that there is a story in
} this whole transaction that might be brought
} out by close examination of the parties in
terested, always provided that they would
tell the truth when called before the legIs-
latiYe committee,
Working the Books.
]. A. Abbott, formerly head bookkeeper for
Auditor Cornell, but now living at Falls City,
has been at work several days on the books
of the Office under instructions from the
|