The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1908-06-19

SsHyss&
Many OF the readers of Dacotal
will recall the defalcation OF Stat
Treasurer Taylor In December, 1884
by which the state was thrown int
intsnse4excitement and, for a brie
time, greatly embarrassed. Yet few
know the great public service render
ed ut that time by the late Hon. A. g
Mellette, lest territorial, and frs
state governor OF South Dakota, ant
at the same time. the embarrass
ments, and financial loss that came t.
him through the default. The genera
facts are known, but details showing
his actual connection with the mat
ter after the default was discovered
are known to only a few people. The
recent decision OF the supreme cour'
OF South Dakota by which Margare,
w. Mellette, his widow, recovered hel
property from the staate, revives ar
interest in the affair, and suggests the
propriety Of placing before the public
the exact facts to the honorsand cred
1T or Ex-Governor Misunderstanding
the honorable course pursued by him
throughout the entire matter.
ON the fifteenth day of January,
1893, Ex-Governor Mellette, to pay
for existing debt, borrowed of w. w.
Taylor, who at that time was state
treasurer, and a banker, and head
OF the Northwestern Loan and Trust
Company at Redfield, S. d., the sum
of $4,000, due on or before January
l5, 1894, for which he gave his per-
sonal note, signed by his wife as sure
ty. IA few days after the note was
executed, Governor Mellette and his
wife executed and delivered to Mr..
Taylor warranty deeds to the lands
owned by him in the counties of
Browne, Beadle, Clark, Codington,
Campbell. Dawson, Bon Homme. Pot
ter, Sphinx, and Lawrence, and to real
estate belonging to Mrs. Mellette in
Watertown, S. D., consisting of their
homestead and lots in Codington and
Dawson counties. The deeds were
delivered with the promise made by
Taylor that they were to be held
merely as security, and were not to
be recorded. The deeds We're not re-
corded by Taylor until he became a
defaulter. whensthey were recorded in
- * o,,n|ios x,oc%;or tho
apparent title to all the properties in
w. w. Taylor, he, ut the same time
retaining the note in his possession to
secure which the deeds were given.
Governor Mellette, at that time,
was In Indiana, and on the 9th day of
January, 1896. on learning of the de-
fault OF Taylor, Immediately started.
to Pierre, s.. d., to confer with the
Acknowledgement and make his posi-
ton plain and also to render him
such assistance as he could.
The writer, who at the time, was
the law partner of Governor Mellette
al Watertown.S learning that t1eadeeds
to the Codington county lands had
been filed for record, sought to re-
strain the register OF deeds from re-
cording them and, for that purpose,
telegraphed Governor Mellette. en-
route for Pierre advising that moth
ling be done.
Upon his arrival at Pierre, Cover
nor Mellette arranged with the At
sytorney-General that his property
should all go to the state first to pay
his obligations represented by the
Taylor note, and the balance upon
the ~treasurer's bond, and that he
would use ihTlsasbest %endeavors to se-
d rethesretnrnyofsthe fleeing ex-state
treasirer TO the state. Suits we're
brought against all the bondsmen--a
large numberNof men-and their
propArtysattached. When the detail
cation became known several of the
bondsmens transferred their property
and sought to place 1t beyond the
reach Of the state. and when suit On
the treasprer's bond al b~rousht,ssall
U bondsi,Sn d Governor Mellette
Joined Inn demandato transfer the
case to- the the federal courtiswhere
No matter could bbef delayed and fan
tccied advantage gained: Governor
Mellette had, Thy that time. gone to
Il Plttsburg. Kansas, to enter into bust
ness. and the attorney at Watertown
representing him In the case, at the
request Of the attorneys for the 9TH
81 bondsmen, signed a petition for
the purpose and which would have
transferred the case to the federal
sssccso,Sulft. Az soon AZ this was done, the
Encouragement wired Governor Mel
lstte 81 Pittsburg. Kansas, what his
IA had DONE asking him tn