The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-01-05
CLOTHING
SCANDAL.
Former Michigan Quartermas-
ter-GeneraI Missing.
Indicted For Completely In Mil
itary Board Deal.
FLEES THE COUNTRY.
Officials Sold $4,000 Worth
of Clothing For $4,000
To Kalamazoo Firm, Then Re-
purchased For $4,000.
Governor Pingree Says the
Situation is Sickening.
FLEES THE COUNTRY
Officials Sold $4,000 Worth
of Clothing For $4,000
To Kalamazoo Firm, Then Re-
purchased For $4,000.
Governor Pingree Says the
Situation is Sickening.

General Arthur F. Marsh and wife ar
rived here today from Brockport, N.
Y. Marsh will be arraigned under the
indictment, charging him with compile
ity in the alleged fraudulent state
clothing transaction. During the trip
he was unconsciously under surveil-
lance, but no warrant was served until
after his arrival here. Marsh says that
he had no guilty knowledge of the al
legged transactions; that he left such
matters to QuartermaSter General
White, acting in the military board
meetings so far as he was concerned,
largely according to Whites suggestions.
General Marsh says that he never re-
ceived any money out of the clothing
that he resigned his office when request
ed to by Governor Pingree.
Another person under Indictment, on
the same charge disappeared. The an
nouncement that w. l. White of Grand
Rapids. who resigned his position as
quartermaster general at the demand
of Governor .Pingree a few days ago,
has left the country rather than face
a grand jury indictment charging him
with conspiracy to defraud the state
was the cause of a great sensation in
official circles here. Even the governor,
who has thus far been inclined to think
him guilty of nothing worse than gross
negligence. and poor judgment, has
fairly makes him sick.
The indictment of White and Marsh
was due to the confession made by
Samuel N. Bickerstaff, purchasing
of Kalamazoo. The grand jury became
convinced that he had kept back GER
tain facts, and he was recalled.
Before going on the stand he con-
suited his attorneys, Russell G. Ostran-
der and r. A Montgomery of Lansing
them a Gtnfnn0anf n no
situation, and upon their advice went
before the jury and explained the entire
deal of the sale by the state of over
$4,000 worth of military clothing for
$40, 500 and the subsequent repurchase
of the same clothing for over $780, 600
The Illinois Supply company, which
bought the clothing from the state in
the first place, was wholly a fictitious
company. The 500 with which it
bought the clothing from the state
came, Bickerstaff said, So, 500 from the
Henderson mes company of Kalama-
zoo and $1,000 from Quartermaster Cen
eraI White of the Michigan State Mill
tary board, General White himself
handing the 81 900 over to S. N. Bicker-
staff to make up the amount of $40 500
with which to buy the clothing from the
state.
The clothing was shipped to Chicago,
thence to the Henderson-Ames company
at Kalamazoo. and was resold to the
state for over $50, 900.
In July, s. N. Bickerstaff, according
to his confession, took $4,000 of the
money thus received from the state in
a grip to Grand Rapids. The money
was in gold currency. 1t was taken to
a hotel in Grand Rapids and there I'M
derwent division. Bickerstaff says Gen.
eral Marsh took his portion in cash then
and there, and that General White took
the remaining $4,000 and deposited it
in a bank to the credit of his own name.
Subsequently General White drew a
check on this sum for IS, 900, payable
in cash, which went to a third person.
Who this person was the grand jury
now seeks to find out. This is the his
tory of the entire deal as told to the
grand jury by Bickerstaff. It was shown
by him as a case of out and out steal
of public moneys and deliberate fraud
on the part of state officers; the title
to the military clothing that was sold
at $40, 500 and bought back at over
$50 900 never really left the state.
Bickerstaff declared state officials
personally put up the plan and furnish
ed the money for the deal and person.
ally received part of the profits in re-
names. Bickerstaff said he went to
them when the scandal first came out
and offered to return the money to the
state, but they would have nothing to
do with it.
The Fidelity and Deposit company of
Maryland is on the bonds of White and
Smith for $50, 900 each. The law exacted
no bond from Marsh. Smith is not be-
lieved to have participated in the tran
sacticn in any way to his profit, his in
dictment being due to his having guilty
knowledge of the affair through his
connection with the Quartermaster gen.
erals department.