The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-18
Attorney General Miller Says State
ments Were Made Of Irregular
Appraisement Proceedings.
DISCREPANCY IN VALUATION
LOAN OF $4,000 SECURED IN 1895 ON
LAND WORTH ONLY $771.
Law Enacted by Recent Legislature
Basis of States Action-Other
Suits May BE Brought.

Through Attorney General Miller, Auditor
Sherrick has filed suit in the Spencer Cir
cult Court against Samuel z. KerchevaI.
formerly United States marshal to recover
the difference between the appraised price
and the amount of the loan that Mr.. Ker-
cheval secured on land in Spencer county In
1896. From the Indiana University school
fund Mr.. Kercheval borrowed 5000 on 24392
acres of Spencer county land. after 1t had
been appraised at twice that amount. The
State kept the land until April last, when
it was sold for $771 to Clarence b. Laird.
The remarkable discrepancy between the
appraisement on which Mr.. Kercheval bor-
rowed 5000 and the second appraisement
made a short time ago by James j. Paint
er, George Bender and Robert 8. Ferguson.
appointed by the Spencer Circuit Court
$771, at once attracted the attention of w.
I. Hicks, agent for the State University
Mr.. Hicks at once came to indianapolis
and brought the matter to the attention of
Auditor Sherrick and Attorney General
Miller. After conference suit was brought
in the Spencer Circuit Court to recover
from Kercheval.
ATTORNEY GENERAL TALKS.
Attorney General Miller, in discussing the
matter last night, said that all the proceed
ings in the transaction were before he came
into office, consequently he know nothing
definitely. He had heard, he said. that
there were irregular proceedings concern
ing appraisements of land on which money
was to be borrowed from state funds He
spoke of case in which appraisers re-
ported on rich bottom land, and later in
which sterile hill land-an entirely different
tract-was described in the mortgage to the
State. Without saying positively that this
vestigated, Mr. Miller limited strongly that
statements of this kind had been made to
him and to Mr.. Hicks, of the State Univer-
sity. At any rate. he said, the whole thing
will be sifte6. and if there were irregulari-
ties they will be brought out, and the
money will be recovered If there is any vir-
tue in the new law recently secured.
Auditor of State David +. Sherrick is pre-
pairing TO proceed under an act OF the last
General Assembly TO collect from other
property of persons that obtained loans on
land on which the State was unable to real
ize, the full amount of the loan with inter-
est
1t is said that the State has been the
loser In transactions with prominent men
of the State and that in some cases IL will
be shown, unless settlement is soon ef-
fected, that straw men" were put up.
The State expects TO push prosecutions Of
such cases to the limit and show up the al
legged fraud by which the state treasury
was drawn upon.
There are many loans on which no inter-
est except the first year, which was deduct
ed from the principal, was ever paid. Most
of these loans were made from the Indiana
University funds.
The Legislature was not fully aware of
the condition the law IL enacted was in
tended to meet. The law was submitted
TO two of the Supreme Court judges, il is
said, and they delared 1t water tight. The
new law reads:
THAT in all cases where the auditor of
state has made loans from the university
fund college fund or the permanent en-
dowment fund of the Indiana State Univer-
sity, which said loans were secured by
mortgage upon real estate, and when said
mortgaged premises have been heretofore
or which may be hereafter forfeited to the
State for nonpayment Of the amount due
thereon or have been heretofore or here
after shall be bid by the auditor of state
for the benefit OF said respective funds and
where said mortgaged premises when sold
according to law have failed or shall fan TO
sell for a sum sufficient TO satisfy the prin-
cipal and interest Of the loan made and the