The Minneapolis journal., 1906-07-22

Nothing in the Taylor Affair, Says
Robinson, to Detract from
His Fair Name. .,--.!!
Special to The Journal.

Sioux Falls, S. D., July 21.-It is
somewhat curious fact that the con-
nection of the late Governor Mellette
with the defalcation of State Treasurer
Taylor some years ago always has been
misunderstood by the most of the peo-
pie of the state. Doane Robinson, the
painstaking and ~theroly reliable secre-
tary of the State Historical society,
has, in reply to a newspaper statement,
prepared the following Interesting in
formation in regard1to the matter:
"Before Mellette was governor, OF
Taylor treasurer, Mellette borrowed
$4,000 from the Northwestern Mort
gage Trust company, of which Taylor
was president, securing the loan with
ample real estate. Later, while Taylor
was treasurer, he made an additional
loan Of the Northwestern Mortgage
Trust company of $4,000, giving real
estate security worth several times the
loan. At the time the loan was made
Mellette personal estate was worth
$780, 900, chiefly in South Dakota real
estate. g.
ellis wife owned the Watertown
homestead and other property in which
the governor never had any interest.
She signed the note for the last SIS. 900
with her husband and placed her prop
erty in a>blanket mortgage deed with
his for security to the loan company.
Mellette did not borrow a cent from
Taylor at any time, but made the loan
from the mortgage company, of which
he had been client for many years.
Ready to Pay.
"'Mellette was Taylor's leading
bondsman, and in the very hour of the
latter's defalcation Mellette appeared,
at the Great Northern hotel in Chicago
with the cash to liquidate every cent Of
his Indebtedness to Taylor. The he Sc
cured upon new mortgage upon his
property, but being unable to get q
relinquishment Of the Northwestern
Mortgage company's prior liens, he
was compelled to return the money to
those who had advanced it.
"When Taylor defaulted Mellette
turned over to the state every dollar g
ably worth $4,000, and in the depres-
sion of 1895 appraised by the state g
officers at about $S5 900, but he stipu-
lated in writing with the attorney gen.
eral that the property was first to be
applied to the discharge of his indebt-
edness of 100000 to the Northwestern
Mortgage Trust company, and that his
wife's separate property was to be re-
leased to her.
All Decided to State.
"Taylor came back and in fixing M
his affairs he decided over to the state
among other interests, the property of
both Governor and Mrs. Mellette, tho
upon this he had not fee but a mort
gage interest. Governor Mellette died
and the next legislature tried by ap-
preparation to do Justice to Mrs. Mel
lette by returning her property. to her,
but it was afterward found that the
legislature could not thus vest. good
title, hence the action to quiet the title
in the courts
In addition to the payment of all
claims which Taylor, thru the North
western Mortgage Trust company had
against Mellette, the state received,
upon its own appraisement, from Mel
lette, as bondsman for Taylor, the sum
Of .$55, 1000. In view of all the facts.
which are of record, not one act of
Governor Mellette's in relation to the
Taylor affair exists which does not
add luster to his splendid record az
South Dakota's IS first executive"