The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-20
Auditor Sherrick Asked Over Long.
Distance Phone as to What
Course He Will Pursue.
STATE COLLECTING EVIDENCE
SUITS WILL BE FILED AGAINST 9TH
ERs IN NEAR FUTURE.
sherrick Says He Will Never Loan
Public Money ON Finding of
Local Assessors.

For forty-eight hours State Auditor
David E. Sherrick has had his ear to the
long distance telephone almost constantly
answering anxious inquiries from men who
have in past years obtained large amounts
of money from the Indiana University en-
dowment fund on land which afterward
turned out to be worth but fraction of
the amount loaned. The burden of the in
quiries has been the same:
what do you intend to do In my case?"
To all these Auditor Sherrick has re-
turned an unvarying answer: "The State
will try to recover through the courts the
money it believes due to the college fund;
1t matters not who must appear as defend
ants"
Auditor Sherrick places the amount OF
money loaned on lands which afterward
$4,000 "It may aggregate more than that"
said Mr.. Sherrick last night; 'it certainly
will not be less. These transactions reach
details involved that we have not had time
to go into things as fully as we would
like; but this much is certain, there has
been a large amount of public money
loaned upon wholly insufficient security
too much loose business
OTHERS TO BE SUED
In the near future, as soon as the State
can secure necessary aff1davits and evil
dence that is absolutely required. there
will be other suits filed. Three suits are
contemplated at present although more
will be filed after the auditors office goes
deeper into the transactions involved The
amounts to be recovered are large.
The success of the State will depend upon
the possibility of proving whether the Sc
curity offered in each case was accepted
foreclosure proceedings resulting later were
considered by the auditors office as clos
ing the transactions. George u. Bingham,
head of the land department for years,
maintains that he has always taken the
position that foreclosure did not relieve
the debtors of liability and that he in
forfeitures were made Mr.. Bingham says
he so informed Samuel E. Kercheval when
the latter forfeited his Spencer county land
to the State. Mr.. Kercheyal and his attor-
ney. Smiley n. Chambers, maintain that
foreclosure terminated the liability of the
debtor and that the State cannot reach
back with a legislative enactment passed
tions will hinge the outcome of the litiga-
ton not only against Kercheval, but
against others who will be sued.
Auditor Sherrick believes that the new
law will hold water. In that opinion he is
reinforced by other state officials He
states that his department will bend every
effort to collect evidence that will make
the application of the statute germane.
SHERRICK PREPARED.
Mr.. Sherrick goes into the investigation
thoroughly prepared. Not long ago he
was connected with corporation which
had large real-estate dealings. Through
his work there he became intimately ac-
quainted with realty values, with theories
of assessments and with the peculiarities
frequently displayed by local assessors. He
will give to the department the assistance
of an expert.
Last night Mr.. Sherrick made a signifi-
cant statement. 81 want to say" he de-
clared, that so long as / am auditor I
will never consent to the loan of a cent of
public money upon the report of local as
SCISSORS, / will never lend a cent until I
have sent a man to represent the State in
valuing land. and upon his report l shall
act.
In my business have found that local
assessors-it matters not how reputable
they are or how high they stand In their
own communicative peculiar ethics in
appraising property on which loans are to
be obtained from corporations. / remem-
ber one instance of the business of cor
poration i was connected with. Local ap-
certain farming land was worth $40 an
acre. We loaned at the rate of SIS an acre
The land was forfeited TO US and we had
To sell at $45, and / am convinced that we
got $40 an acre more than the land was
worth. One OF the appraisers who made
the report was Judge of the county Cir
cult Court In which the land was located
another was a pioneer druggist and the
other was citizen Of high standing-and
there you are"