The herald and news. [volume] (Newberry S.C.) 1903-1937, 1905-10-20
SOUTH CAROLINA
BONDS STOLEN
FORMER BOND CLERK ZIM-
MERMAN ARRESTED.
The Theft Began Under Former
Treasurer Bates, Largest Under
DR.. Zimmerman and Some
Under Present Treasurer
Jennings.

ishment in the city late Tuesday at
ternoon says the Columbia State Of
Wednesday when it was learn that the
State treasury had lost S16,5oo by err
ror or by criminalty. When it was
learned that a warrant had been IS
sued by magistrate and had been.
lodgded with the sheriff for execution,
charging that Mr. Daniel Zimmerman
is guilty Of a breach of trust with
fraudulent intent, there was great
er surprise, and much regret was ex-
pressed because a name as yet .untarn-
ished had been connected with such
an offense, justly or wrongfully.
Mr.. Zimmerman had been the bond
clerk in the office of the state treas
urer, and held that position from 1891
until 1901. 1t was during that period
that the fraudulent occurrences were
found after a great deal OF investlga-:
ton. The specific charge is that when
bonds were brought in to be exchang-
ed for stocks, one or more bonds
would be distracted from the package
and instead of being cancelled would
be sold and an old bond or bonds of
prior date would be dug up from the
vaults and substituted in the bundles
| for cancellation so that in a cursory
examination it would appear that all
| Of the bonds in that package were
properly cancelled.
In this way bond and certificate
of stock would both be in the hands of
innocent parties and the state paying
interest on both and obligated to pay
the principal at the expiration OF the
time specified-and of reality the
bond had been redeemed by the state,
THE stock having been in exchange
therefor.
If trick it was, it required nerve
to carry it through for the occur
rences covered period of several
years. Mr.. Zimmerman's friends, and
they are multiple, persist in declaring
their belief in his innocence, and ex-
pect at the proper time to see him
vindicated before the law in the
courts. Mr.. Zimmerman has been
! looked upon as a man in rather strait
ened circumstances, and it is believed
by many to be Impossible for him to
have covered up such shortage.
There are two things which have
made some of Mr.. Zimmerman's
friends wonder. First is the fact that
he repeatedly declined to appear at
the Office of the state treasurer and
clear his name of the odium which
was sure to be attached to an unex-
planned publication of the facts. The
other is that yesterday before the
warrant could be issued, Mr.. Zim-
norman. who probably was apprised
Of what was about to transpire, walk
ed out the back door of the Office Of
Mr.. S. L. Miller, where he was en-
/! ployed in a clerical capacity and dis
appeared. He has not been seen
since.
Even if Mr.. Zimmerman is the VIC
tim of circumstances, it is quite evi
dent that the transactions could not
have been conducted without the as
sistance of an outside party. Had an
employee of the state treasury pre-
sented bond for sale, the prospective
purchaser would have declined, for
the incident would have been susplc-
! ious and the purchaser would want
nothing but "gilt edged" investments.
Evidently there was a broker. To
find that man is now the object of the
state officials interested. The lnr1o-
cent holders of the bonds will be ask
ed through, whom they secured the
. negotiable instruments. No inno-
cent holder will lose anything, for the
bonds will be again redeemed for
cash, although once before they have