The Birmingham age-herald., 1905-09-15
INDIANA AUDITOR HAS GRAF I FEVER. About $145,OOO of His Funds
 Has Disappeared GON HANLEY GETS BUSY Declares the Office Vacant Upon Find ing Thousands of Dollars Worth
 of valueIsss Notes and
 Securities.

Indianapolis, September H-A1leging that David E. Sherrick, auditor of state. has been guilty of plain and inexcus- able violation of the law, and gross betrayal of public trust' in that he in vested funds belonging to the state in private affairs to the extent of about s145,0OO. Governor Hanley today issued an executive order in which he took cogniz- ance of vacancy in the office, and ap- pointed Warren Bigler of Wabash, as his successor. This in effect amounts to a removal of MT. Sherrick by the governor, though the official statement is not made that way.
 The governor gave Sherrick until noon today to make settlement. There was no response and the governor after having asked for Sherrick's resignation three times, effected the removal. Sherrick has not yet been arrested, and in his state ment the governor does not say that such action was contemplated. MT. Sherrick could not be seen at noon today. In a formal statement issued relative to the matter the governor says he has been Investigating the conditions In the audi tors office since the last of August, hav- ing received information that Sherrick had not made the July settlement for the state fund, which had accumulated from January to July 1, 1905. He immed- lately asked for settlement which was made.
 Securities Are Worthless.
 This amount was about s235,0O0. In addi- ton to this amount, the auditor in his statement to the governor admitted that he was at that time chargeable with state funds paid in since the July settlement amounting to $l45197. for which he fileu a schedule enumerating the assets he had to meet this amount. which he owed to the state These items included notes, stocks and securities amounting to $152.- SsS, of which according to the gover- nors letter, only $Sl,355 could be real
 Resignation Is Accepted.
 At the time the analysis of the assets was submitted by Sherrick, the governor formally requested Sherrick to resign. The resignation was not forthcoming. The governor requested that Sherrick turn over to John E. Reed. the settlement clerk in the auditors office, the securities enumerated, and this was not done. The governor also demanded that settlement to the extent of $145, ,197 be made with the state by noon today, and on being advised by persons whom he thought to be In a position to know that the settlement could not be made he again sent mes sage, this time verbal, requesting Sher- rick to resign. At noon the request had not been compiled with, and 1t was re- peated. Again not complied with, the governor entered an executive order find Ing the existence of a vacancy and ap pointing Bigler.
 Only $20,00o In Bank.
 At 5 o'clock Sherrick sent his resigna- ton to Governor Hanley. who accepted it and entered an order appointing War ren Bigiey of Wabash to the office of state auditor. Bigler accepted by telegraph.
 In his letter to MT. Sherrick dated Sep tember 4, in answer to the letter in which Sherrick made a list of the notes. stock. etc., held by him as security for the money belonging to the state that he had used the governor analysed the assets in detail. The total amount of this was more than $17200o.
 Of this amount about $200O0 was on deposit in bank. Of the remainder about s51 ,000 was left notes given by the J. H. Murry company, hard wood lumber dealers which notes according to the statement of the governor in his letter to Sherrick were forgeries so far as J. H. Murry is concerned. The analysis fur ther says that notes for an additional s66.000 are practically without value some of them being the notes of persons notor- iously insovent. and others being stocks and securities of interpretations that are wholly speculative in character. The fur ther sum of s1s500 is represented by notes that are said to be of doubtful value, making, according to the governors es- innate. the real value of the s172.70S worth of securities only $37355, the difference be- ing almost total loss.
 David E. Sherrick's bond on file in the secretary of states office is for s10o, 900, and was furnished by the American Sure tv company.