Omaha daily bee., 1903-03-25
(From a Stan Correspondent1

(From Stan Correspondent.)
LINCOLN, March 24.-(Special TelegrRm)
The Stuefer investigation committee and
the senate revenue committee took the CEN
ter of the stage early this morning and
held IL until midnight The former con-
tinued its examination Of witnesses in the
Burt county bond case and the latter put
in the day and night trying to resist tho
onslaughts of franchised corporations to
force their way into that section of the rev.
enue bill providing the gross earnings fran
chise method of taxation. In the meantime
the house pegged away at the claims and
current expense bills. increasing the grand
total of the former and recommending 1t
for passage. The senate passed the Hanna
junior normal school bill and to cap the
climax, the house committee on investiga-
tion of the so-called Bartley cigar box"
submitted report of it's perfunetory pro-
ceedings.
In yesterdays report ex-State Treasurer
stuefer, by typographical error. was made
to say that he employed w +. 8. Neigh to
conduct the purchase Of the Burt county
bonds, when as a matter of fact Mr.. Stue-
fer distinctly said he had not so en-
ployed Mr.. Neigh. He stated that he
bought the $4,000 worth Of bonds from Me-
ligh, giving him two checks OF $4,000 and
$780, 900 respectively in payment.
The examination today began at 1880 q. M.
with Mr.. Stuefer on the stand. The other
witnesses were Attorney General Prout. ].
X. Hancock, Franklin Everett. John 3
Piper. u. ID. Beck OF Burt county N. Fod~
rea. bookkeeper for the state treasurer. and
w. T. S. Neigh OF West Point.
One Of the principal points brought out
by Sears. attorney for the committee, came
fha taefg s,T ~
ceived the Burt county bonds for Mr.. stue-
fer when they were delivered to his ofice
at the capital by Neigh. July 8. 1901. Fod-
rea said he made the entry on the bond
book OF the transaction. The entry was:
Purchased July 8. 1901, on a basis OF az
per cent, coupons detachable to equalize
rate. except a bonus Of $3.50 in coupons not
detached"
The point developed was that that part
Of the entry beginning with the word 'ex-
cept" was made "a long while" TO use Fod-
rea's words, after the first part OF the en-
try. Sears sought to show that this was
added after he had made public the fact
that $3.50 in coupons we're in the treasurer's
office. attached to the bonds and not ac-
counted for. Fodrea could not be positive
as to dates.
Attorney General Prout. in his testimony,
bldlcu tudl IL WAS at nlb SUGGESTION lu1t
this latter entry was made. He said Mr..
stuefer came to him after Sears publica-
tion OF the affair and asked for advice az to
how to account for this balance in coupons
Of $3.50. The attorney general said he told
him simply to make that notation on his
books. stuefer replied that he was afraid
Sears then would accuse him OF doctoring
! his books.
mo matter what Sears says" rejoined
Mr. Prout, III your books are not correct,
correct them"
The entry was then made by Fodrea.
Neigh merely recited a history OF the
! Burt county bond transaction, saying he
had bought the entire issue OF $50 900 on
/ his own responsibility and sold them after
ward to Stuefer as state treasurer on a cash
premium basis payable in coupons, and that
this gave him s3.45O. He said not another
coupon beyond this amount was cut of and
that Mr.. Stuefer did not realize a cent 8
| profit from the deal Neigh showed the
original contract on which he bought the
bonds from the supervisors OF Burt county.
He said he finally offered and gave par and
premium OF $500 for the az per cent
bonds and lost by the transaction.
Getting Down 10 Business.
The Stuefer Investigation was resumed at
1880 this morning with Mr.. Stuefer on the
| stand under cross-examination by Sears
attorney for the committee. He was cross
examined by his attorney, j. II. Van Dusen.
In answer to questions by Sears as to
| why he did not buy certain county bonds
| called to his attention by Sears, Stuefer
said he was unable to buy them because
he could not afford to pay a premium.
He then admitted that he had paid a pre-
MUM on state warrants, explaining that
IL was easy to keep these accounts on
his books. He further stated that he had
not searched for such Investments, az he
| deemed that the duty OF the Board OF Edu.
cational Lands and Funds, and not that OF
| the state treasurer. Referring to a sum OF
state money deposited in the First National
bank OF Omaha, stuefer said In answer "a
questions, that the money drew per cent
interest, payable monthly, but that he did
not collect II at such intervals but allowed
II to accrue for about one year and then
collected II and turned II into the general
fund. which then was kept separate from
school moneys.
On cross examination by Van Dusen
Stuefer said the first knowledge he had
OF the intention Of Burt county to issue
refunding bonds came to him in March
1901, before the bonds were issued In guly
through ]. r. Sutherland Of TekamAh He
denied having been advised OF the date OF
issue by any Burt county men or newspa-
pers and said that he was ignorant Of the
exact date on which the bonds were Is
sued and advertised for sale until II was
too late 70 bid on them. He furthsl
stated hat he ala not know Neigh vai