Durango semi-weekly herald., 1903-04-20
HE HAD OFFICIAL AS PAL.


Denver Post: Startling in the ex-
treme are the disclosures made in the
third report of Special Examiner Louis
Schwanbeck on the defalcations of the
absconding fiat tax clerk, w, C. Mum
sell, which was filed with Governor
Peabody today.
One of the most sensational of the
charges is that Munsell had confeder-
ates in the auditors Office in many of
his schemes.
A new plan of corruption was un-
earthed and former State Auditor
| Crouter and former Insurance Com
i missioner David How may be involv-
ed in the scandal The report reads.
| While making the preliminary ex'
| animation / became satisfied that fal-
sification of the records were in evil
| dence. which suspicion became only
too true. Receipts were given on un'
numbered blanks, of which each re-
| ceipt book contained six, as shown in
the Colorado Southern railroad case.
! How many of those receipts were Civ
| en- may never be known. | discovered
| erasures on the stubs of the receipt
! books and which are itemized, see ex-
hibit "A" Mr. Munsell proved to be
a most skillful manipulation with acids
| as the erasures in evidence could
hardly be detected with the naked eye
and d magnifying glass had TO be
| used.
In my correspondence with seven
S ty-one insurance companies owing tax
| es for 1902 and in some cases for 1901
| amounting to about $500. / became
| convinced that the absconding chief
clerk of the fiat tax department had
| demanded corruption fund from
/ certain foreign insurance companies
| tor certain rulings to be given. This
i should be sifted to the bottom, for he
, alone could not have done so: he must
have had confederates in this nefari
| ious scheme Responses have been
received from nearly all OF the com
panies, and they almost invariably ac
/, knowledge the Indebtedness, but stat
ing that they had not been notified
which no doubt is true. lnsur
ance companies are as rule very
prompt IN their remittances. Some
of the companies did not even know
that such a tax was due from them
neither did their names appear OF
the records of the department.
one of the curious incidents of th'
examination was the finding of til
box hy former Auditor Mr.. Crouter
which was Munsell's private property
What II disclosed the former audito'
can only tell. Your examiner shoul
have liked to have had the first pee
into It: it might have disclosed
great deal valuable to the examina
ton. All the examiner got out Of
was a number of checks, from one {
two years old of various sums troa
81 up to $50. Total amount, $l3i.i'
for taxes from various corporation
The reason why Munsell hid them,
! am unable to comprehend, except 1t b
the usual gross carelesness which BIZ
been so rampant in that department
also ascertained that the former al
ditor had deposited number of II
: checks found In the tin box to h
= credit on account of 1901 protest fun
= have made a formal demand froi
} the bank, Mr. Crouter and Mr.. Geori
r Post his attorney, for list of tho
5 checks, SO far without result. This
= absolutely necessary; for the prese
3 auditor must know the name of Il
= payor company, the amount and
: which years taxes, whether paid u
t der protest or not. SO that receip
e may be issued to the proper partie
v 81 have been unable to solve Il
g question how Munsell brought
e about to withdraw from the bank 81
900 without being detected. In &
e cases where there were large sum
n like the case Of the Colorado & Sout
n ern and the Mexican National railroa
e the checks were all properly indors