The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1904-08-17
Treasurer Of Walnut Grove District
Charged With Grand Larceny
in the First Degree.
Accused Of Embezzling $2,226.5O and
Using it for Paying for his
Brick Building.

which time he has been more or
less actively identified with the
business interests of that place,
was placed under arrest last We'd
nesday on the charge of grand lar
ceny in the first degree.
Scott is really accused of embezzle-
ment, but the law calls for arrest
for grand larceny. He was, for a
number of years. treasurer of the
Walnut Grove school district. Last
year, after big fire at Walnut
Grove, he became imbued with the
building craze and erected a two
story brick block. In order to meet
various payments on this building,
which was costing between SO, 900
and SIS, 900, he checked money out
of the bank belonging to the school
district of which he was treasurer.
On Jan. 1st last he was notified of
his shortage by several of the bonds
men. This shortage amounted to
50, 5000. At this time he was ne
gotiating for the sale of his build
ing and lot, by which he hoped to
realize sufficient to pull him through.
He informed his bandsmen that If
they would let him haye 5000 to
meet certain obligations of the
school district then demanded of
him as treasurer he would be able
to pull out and relieve them of all
responsibility. His bondsmen
turned over the $780, leaving a
balance of So, 266. so which he owed
the school district.
Through some cause his plan to
sell his equity in the building fell
through, and Scott was left without
a cent. On June 1st be was notified
that he was insolvent and couldn' t
meet the amount due, and be re-
signed as treasurer of the district.
The bondsmen were compelled to
make up the shortage to the dis
trict, some of them having to mort
gage their farms to accomplish this.
Matters have drifted along quiet
ly, the authorities being of the opin-
ion that Scott would not attempt to
leave the country before the grand
jury met next November, and that
the matter would be properly
brought before that body. But
early last week Messrs. Lynn and
Smith, two of the bondsmen. came
to Redwood Falls, and expressed
their fear to County Attorney How
ard that Scott was preparing to
leave. Mr.. Howard drew up the
complaint, which was signed by
Smith, after some difficulty, and
Judge Laudon issued a warrant of
arrest. Deputy Sheriff Peter Scott
left for Walnut Grove Tuesday after
noon to serve the warrant and bring
Scott to Redwood Falls. He re-
turned with his man Wednesday
morning. Frank Clague came over
from Lamberton that afternoon and
appeared for Scott, with the result
that a preliminary examination was
set for yesterday, when Scott was
held to the grand jury, bail being
fixed at $4,000. E. A. Pease and
Emil Kuenzli, who were the sure
ties for his appearance yesterday,
will probably continue on the Dor d.
In the meantime, Messrs. Korns
q Johnson OF Tracy, attorneys for a
large number of mechanics employed
on and furnishing lumber and other
material for the Scott block, have
secured a judgment against Scott in
the district court and last Wednes-
day an execution was issued against
the building for the entire amount,
and directing that the same be sold,
and the proceeds used to pay the
bills mentioned in the lien. This
execution was turned over to Sheriff
Schueller Wednesday afternoon and
the sale of the property twill occur
as soon as the required notice has
been given.
The outstanding bills amount to
So. 37781. OF this amount Forman,
Ford & Co. have claim for 81, 310.-
O6. the Twin City Brick Co. for
$315.O4, Fowler & Pay of Mankato
for $124.O5, A. G. Ochs for $730.84,
Jens Nicolayson for $429O, G. ].