The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1916-02-12

dent of the First National bank
OF Rochester. He is an officer in
telephone and milling companies
there. He will begin his term
Monday,
st. Paul, Minn., Feb. l2.-State
Treasurer Walter J. Smith today re-
signed his office, following his in
dictment by the Ramsey county grand
jury charging irregularities in the
handling of $4,000 of state funds.
Smith is still at the Calling insti-
tute, Minneapolis. He gave his res
ignation to George Lafond, clerk of
the state treasurer's office, last night.
Lafond gave the resignation to Gov
ernor Burnquist today.
To Make Appointment.
Governor Burnquist expects to
make an appointment to fill the va
cancy Immediately. Those who are
being considered seriously are A. G.
Gooding of Rochester and E. l..
Erickson, deputy state treasurer.
Condition Critical. -.
Smith is in a critical condition at.
the Gatling institute. He is too sick
to be brought to the city hospital in
St. Paul.
Officials from St. Paul went to the
institute yesterday to bring Smith to
st. Paul but on the advice of a phys
ician he was not moved. DR.. Brodie,
city physician, examined Smith this
and stated that he was some
better, but that he would not be able
to be moved.
Wife at Bedside.
Mrs. Smith and daughter are con-
stantly at the bedside of the former
state treasurer
Smiths mind was some clearer this
morning but he is in a nervous con-
dition.
II don't care when die," he said
to DR.. Brodie. He promised state
officials that he would not attempt
to escape. However, he is being
guarded by st. Paul police officials.
Ramsey county officials want to re-
move him to St. Paul on account of
the expense of keeping a deputy in
Minneapolis to guard him.
Induced Speculations, Belief.
A strange explanation of Smiths
alleged act in tampering with state
funds was made today when it was
learned that he has received offers
of credit to an almost unlimited ex-
tent from banks in the state desirOus
of becoming repositories Of state
moneys.
It was suggested that this credit
first induced the speculations In
which he is said by Robert G. Picket
to have participated. Impaired
physical condition and the realiza-
ton that his credit was inflated by
his official position are believed to
have led to his indiscretions.
It is now known that, in several
instances, Smith availed himself of
credit for small amounts, notably
with St. Paul, St. Cloud, Saltwater
and Iron Range banks.
In Private Deals.
Smith is interested heavily in at
least two private business enter
prises. Associated with him are
state officials and business men in
nearly every county in the state. One
enterprise is the Section Four Mines
Co., capitalized at $500,000 which
owns iron ore property near Eveleth,
Mimi. Smith is president of the
company. No ore has been shipped
from the mine. Among. the stock
holders are number Of Bemidji men
and Beltrami county officials. "
Smith is also treasurer of the Am
erican Resilient Wheel Co., in which
a number Of state officials are Inter
ested. This company was organized
to manufacture patented automo-
bile wheel with hard rubber tires in.
stead of pneumatic tires. The COM
pany's headquarters are in Chicago.
Was a Banker.
Smith was formerly president of