Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-13

5s9.s7 and sl1.s46.14. were ostersibly
made good, less the sum of $4,000 repre-
sented by the Flaxton certificate Of de-
post which was recalled, this leaving
unpaid the auditors draft for $25,215.2G.
an open account in the Bowbelis Bank
Of O,230, and a balance Of $4,000 on two
certificates Of deposit for s16.569.S: and
$11,646. IA, in all $49.445. 26. So that, III
addition to the draft Of SIS. 22o. SIS, which
was then paid after being held several
months. approximately $4,000 of the
misappropriated items were apparently
repaid by means Of substituted items
in the remittance to Fargo on August
z, 1909. 4ls
Previous to this, however. n deposit Of
$4,000 from the Waseca Hail Insurance,
Company. safety fund, was taken b? the
defendant and placed in the Bowhell5
bank without any entry thereof being
made upon his books. So that the
amount of misrepresentation remaining IN
the Bowbelrs bank on and after August
7, 1909, was substantially the same as
before. and over $50. ooo. On August ",
1909, money Of the state was again
taken to replace this insurance money.
The facts in regard to the insurance u2.
post are as follows: In May, 1909. The
Insurance Company deposited $4,000 n
bank certificates OF deposit as a safety
fund. This was a mere temporary deposit
pending an arrangement for q deposit OF
bonds. The defendant turned these cert.
ficates over to the Bowhells bank short
ly after receiving them and the bank
cashed them and kept the money. In the
latter part of July or the first OF August,
1909. the Insurance company desired to
substitute government bonds for the cash
! and to that end drew a draft on the
state treasurer. with the bonrs attached
and to be delivered on payment of the
draft. The defendant delayed the matter
until August 18TH, WIN he honored the
draft by drawing checks on numerous
| state depoitories to the amount of $25,-
900. Hhe then covered up the misappro-
priation to the Bowbells bank by putting
these government bonds in the cash
drawer and counting them as cash items
and keeping up the devise until he sun-
stituted Bowbells certificates Of deposit
just before going out Of office. There
can be no question that the insurance
deposit had been misappropriated, thai
state funds were drawn upon to make
good this shortage, that the government
bonds were put in the cash drawer to
cover up this shortage, and that finally
Bowbells certificates We're put in to re-
before shown, the state auditors draft
for $25, 215. &c was retired by means OF
false entries indicating : transfer OF
SEA, 315.26 from the First National Bank
Of Fargo to the Union National Bank
of Grand Forks and $1,000 from the Far
60 bank to the FlaXton bank. In this
transaction. also, a certificate OF deposit
of $4,000 from the Flaxton hank, which
represented state money, was used to
make good a part Of the $25,2l5.2 6. and
100000 was obtained by the Bowbells
bank giving a draft in payment Of the
$780, $50 before referred to, and which was
originally deposited on open account and
subsequently, changed into a certificate
of deposit. The remaining s215.26 was
taken from the remaining so called spec
ial deposit in the Bowbells bank. This
transaction took place at the end Of
March. 1910. On April6, 1910. the defend
ant received another remittance of s15,-
1873. IL from the Barnes County treasurer
by means Of checks on the Valley City
banks as before. These, as before. were
sent to the Bowbells hank and c%ertifi-
Gates of deposit taken therefor. When the
state auditors draft for the amount was
received, he. r. before. carried that
draft as a cash item in the same way he
had previously carried the other paid
drafts. 1t was also taken out and Osten-
sibly RENTED to Fargo and then put
back again in the drawer as before. This
continued until the end of his term.
when Bowbells certificates were deposit.
ed for the whole shortage, except the
s54.65 referred to. The final result. as
shown by the evidence, was that during
the defendants term of Office there was
a total embezzlement Of at least 500, 1922
76, $50. 438.11 on the final showing being
represented by Bowbells certificates of
deposit. and $54.65 being unaccounted
for. The defendants successor in office,
Gunder Olson, qualified and took charge
Of the office on January ., 1911. At this
time there were in the cash drawer the
certificates of de post from the Rowbells
bank for $50, 43S.1l. none Of which had
ever been disclosed to the state bank
examiners or in the treasurcr's reports
to the governor. The defndant sought to
Undue Mr.. Olson to accept these certi-
icates as the equivale It of cash and to
hold them about thirty days, stating that
the BoWbells bank was then unable to
pay them and that he would within thir-
ty days be able to take them up as the
result Of a deal then OF hand. This the
incoming treasurer declined to do, and
the defendant was arrested. Shortly after
his arrest his friends and associates made
good the shortage to the amount of $780,
1911, and the certificates were turned
over to them. 1t, however, appears that
on the final settlement there was, in ad.
dition to the certificates of deposit. $3.50
in cash which, if the certificates of de.
post had been accepted, would nave
amounted to more than was necessary
quired to be transferred to the defend
ants successor. The defendant, however,
took this money out of the cash drawe:
and stated that he would return it if
any deficiency was found.
The defendant on the other hand takes
the position that the deposit in the Bow"
bells bank was . special deposit for safe
keeping merely, and was put there be-
cause the defendant had confidence in