Omaha daily bee., 1905-09-15
cfiosr Invests Them in Private Speculation
and il Unable to Realize
EXECUTIVE DEMANDS A SETTLEMENT
Shortage Amounts to Sl45,l9780r fOt
Which State Gets Doubtful Securities
SHtHREK FINALLY TENDERS RESIGNATION
Tacts Laid Before Prosecuting Al
tOrney of Marion County and
Criminal PrOceedinEs VIII
Probably Follow.

INDIANAPOLIS, Sept. l5.-Detectives
from the indianapolis department at 30
this morning went to the home OF the for
mer auditor of state. David z. Sherrick,
with the intention of taking him to the
Central police station to have served on
him a warrant issued by the county prose-
cutor on account of reasons not at this
time clear they concluded not to bring him
to the Central police station, but will re-
main on guard at his home and today he
will he brought in and served with
rant issued by the county prosecutor charg-
Ing embezzement.
Following three demands for his resigna-
tion which was not forthcoming at noon
Governor ]. Frank Hsnley issued an order
taking cognisance OF a vacancy in the Of
shce OF auditor of state, at the same time
appointing Warren Bigler of Wabash to
succeed David F. SheTrick. who was in
effect summsrily removed.
Later in the day Mr.. Sherrick forwarded
his resignation TO the governor. which was
Immediately accepted. Upon receipt OF Mr..
Biglers acceptance he was notified to ar
range for his bond as soon as possible in
order that he might take charge of the
ONCE at once. This was done and Mr..
Bigler will become auditor of state to-
morrow morning
In the order which resulted in the virtual
removal of Sherrick Governor Hanley
charged that the auditor had been guilty
Of a plain and inexcusable violation of the
law and a gross betrayal Of a public trust
In investing and loaning funds belonging
to the state TO the amount of Sl45,OOO
This sum, the governor alleges, was mis-
used. having been invested for private pur-
poses
No arrests have been made, but at q con-
ference tonight between Governor Hanley
and Charles Benedict. prosecuting attorney
for Marion county, the chief executive laid
before the prosecuting attorney certain evi-
dence bearing on the case
order for removal.
Alleging that David F. sherrick, auditor
Of state, was guilty OF "a plain and
lnexcusable violation of the law and
gross betrayal Of public trust" in
that he invested funds belonging to
the state IN ,prtvate affairs to the ex-
tent OF about $4,000. Governor Hanley
today issued an executive order in which
he took cosnizance Of a vacancy in the Of
nee and appointed Warren Bigler of Wa
bash as his successor This in effect
am m''unts TO removal OF Mr.. Sherrick
by the governor. though the, oficiaI
sta ement is not made that way The
go krnor gave Sherrick until noon today to
mi ke his settlement. This was not done
ar the governor, after having asked for
81 krrick's resignation three times. effected
the removal Sherrick has not been ar
rested as yet, ana In his statement Gov
ernor Hanley does not say that such action
was contemplated. Mr.. Sherrick could not
be seen at noon today.
Governor Makes Statement.
z In formal statement issued relative TO
the matter the governor says he has
been investigating the conditions in the
auditors once since the last of August,
having received information that sherrick
had not made the July settlement for the
states funds which had accumulated from
January 1 10 July l. 1906 He Immediately
asked for a settlement which was made
This amount was about $235,OO0 In addi-
ton to this amount the auditor in his state
ment to the governor admitted that he at
that time was chargeable with state funds
paid in since the July settlement amount
ing to s14Sl97so for which he Med
schedule enumeratins the assets he had to
meet this amount which he owed to the
state These items include notes, stocks
and securities amounting to $l5S. .Ss33S, OF
which, according to the governors letter.
only ss7S5.Oi could be realized on.
Securities of Little Value
At the time that his analysis Of the as
sets submitted by Sherrick was made the
governor formally requested Sherrick to
resign. The resignation was not forth
coming. The governor requested that Sher-
rick turn over to John K. Reed, the settle
ment clerk in the auditors once, the Sc
curites enumerated. and this was done
The governor also demanded that settle
ment 10 the extent Of t145,1s7.sO be made
with the state by noon today, and on be-
ing advised by persons whom he thought
to be In a position 20 know" that the set
tlement could not be made he again sent
a message. this time verbal requesting
sherrick to resign. At noon the request
had not been complied with and It was re-
peated Again not complied with, the gov
ernor entered an executive order finding
the existence Of vacancy and appointing
Bigier,
sherrick Resigns.
At o'clock sherrtck sent his resignation
TO Governor Hanley who accepted It and
entered an order appointing Warren Big
Ter OF Wabash to the once of state auditor.
Bigler accepted by telegraph.
David r. Sherricks bond on file in the
secretarv Of ktate's Of1ce Is for SlOOOlO and