Evening capital news. (Boise, Idaho) 1901-1927, 1914-09-12

The fraudulent loaning of money
from the public school funds set apart
for the education of children in Idaho
TO dummies acting in behalf of state
officials, to pay the purchase price for
Gao acres of land in Blaine and Ell
more counties, was the sensational
charge and exposure made last night
by Clarence Van Deusen, Electors
Progressive party candidate for state
auditor. before an audience in the Odd
Fellows hall, Thirteenth and East
man streets. Mr.. Van Deusen named
as the officials who We're party to and
benefactors from the loan, $4,000, State
Treasurer o. v Allen, Deputy State
Treasurer Fred NJ. Coleman, who re-
Gently resigned and Charles l.. Sworn
stcdt, deputy in the secretary OF
states department. The alleged "dum-
mics to the loan were named as Lewis
w Ensign, of Boise, a member of
the insurance firm of Ensign & Ensign,
who wrote the bond of State Treas
urer Allen and George B. Wood, pres
ent cashier of the Idaho State Life In
surance company, of which at the time
the application for the loan was made,
State Treasurer Allen was president.
The charge has created a genuine SEN
sation, exposing, it is alleged, the sub
terfuge used by state officials to Sc
cure state money for their own use and
the unbusinesslike manner resorted to
by land boards in handling the states
financial affairs
Interest Not Paid.
The exposure of Mr. Van Deusen
makes the startling revelation that the
records of the land board and land de-
partment show that although the loan
was consummated to the dummies"
for State Treasurer Allen. Coleman
and Swormstedt, not one penny of the
total accumulated interest, $s31.97 up
to Sept. 2 Of the present year has
been paid on the loan, although Reg
lister Ned Jenness of the land depart
ment has made official demand for it,
and that tho land involved has since
been sold for delinquent taxes so that
to protect itself the state will ulti-
mately have to redeem the property
and pay the attached penalties.
In drawing aside the curtain on the
records of this transaction, Mr.. Van
Deusen shows that two of the state
officials, Coleman and Swormstedt,
were in partnership in a saloon Dus-
mess at Hill City with one of the APP
praisers of the land, A. 7. Watkins,
who Swormstedt early this year had
arrested on the charge of disposing of
the mortgaged furniture and furnish
ings of the saloon and combination
pool hall. Watkins afterward threat
ened to tell what he knew about this
particular land loan. The charge
against him was dropped
Inflated Valuation Given.
That inflated valuations were given
to the land on which the loan was Sc
cured by the alleged dummies" is
clearly shown by Mr. Van Deusen
The $40 acres was divided for two sep
arate loans one for $4,000 and one for
$4,000. Both tracts were given to-
tai valuation of $29,710. The state
accepted an appraisement of $40 an
acre on the land regardless of the fact
Ensign and Wood paid but $3.50 an
acre for it. Both claimed at the time
they made application for the loan they
We're owners of the property yet the
abstract to the property shows they
did not get title to the land until over
three months afterwards.
The further remarkable fact is shown
in the transaction that while the state
had the land appraised for $40 per acre
negotiations were then on between one
of the appraisers and Ensign and
Wood for the sale of the same prop
erty at $3.50 per acre and six days
after the appraisement it vas sold for
that price to them, yet the state OF
Idaho, through its land department,
accepted the $40 appraisement, accord |
ing to the charge.
Another alleged fact of equal inn