The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1913-04-18
r. c. Dunn's Explanation Of How
He Obtained Security


st. Paul, April 12-Robert C. Dunn,
former state auditor, and now mem.
Der of the house, had i'm his name
Virginia refunding bond of the value
of $4,000 obtained by him with funds
which, he says, accrued through grub
stalking gold mine prospectors in
Alaska.
The bond was purchased in the
period from 1896 to 1901, while Mr.
Dunn was auditor and during which
Minnesota invested $2,145,000 of
school funds in similar Virginia Sc
curties. This is shown by the
records in the office of the second
auditor of Virginia, examined at Rich
mond yesterday, The purchase of
these bonds by the state is now be
ing investigated by the house cont
mittee on public accounts and ex-
penditures.
Admits Owning Bond.
Mr. Dunn yesterday admitted that
he at one time owned $4,000 Vir
ginia bond of the same character as
those purchased by the state. The
Virginia records show that this Dunn
bond was purchased as a coupon bond
and on March %, 1900, was eX-
changed by Mr.. Dunn for registered
bond of the same value, This in turn
was sold BY him through the broker
age firm of John G.. Williams & Co,
on August Is, 1905.
Mr. Dunn also confirms this ex-
change and the subsequent sale.
in explaining the transaction, he
said:
Why All This Fuss?
81 cannot understand why the
committee wishes to go to the trou-
bic of investigating my private tinan-
cial transactions. I had as much
right as any other person to own
Virginia bond and am perfectly
willing TO detail all 7 remember of
the purchase.
81 think il was in 1897 that. to-
gether with Samuel G. Iverson. then
my deputy and now state andltor'
and number Of others, | aided IN
grub-staking the Gates bows. two Al
aska gold mine prosnectors They
went TO tn Alaska. discovered
| the famous Bonanza mine. and we
sold the property TO the >Gusgenhelm
interests for $1000,000. My share
was $50 000 This money was paid
me in New York. Mr. lverson was
there at the time and he got SIM
liar amount. his share also being
one-twentieth.
Never Had Seen So Much Money.
az had never seen so much money
,, in nv life before, and never hope to
see it again ! did not know what
to do with it all and thought wonld
bny some bonds. The agent for the
Virginia bonds l knew. and through
him I purchased this $4,000 security.
Later / exchanged the coupon for
registered bond.
"In 1905 after my campaign Tor
| governor was nearly broke and was
building house at Princeton. nv
home town In order to pav for 1t
7 had to sell this bond At that time
there was great campaign on for
the sale of all the Virginia bonds by
| the state. a
Is Sold Bond at a Loss.
"When | went to tho Merchants
| National bank to coll my instrument
Mr.. Prince told ne that I .rou'd not
get what / paid For it J think the
price paid was % or ~ The pros
peet of having 81 $4,000 VIRGINIA
bonds on the market caused a drop
in the price. however and ] was COM
PEELED to pet rid of mine for about
| % or 49, The bank NAV have SOLO II
through the Williams comnany
know nothing more of its course,
have over since opposed the sale OF
these bonds by the state. as we could
not get what we paid for. them"