Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1916-02-09
TOTAL SHORTAGE
Of $28,962 IS
ALL PAID BACK
r. G. Pickett, Clerk Of Investment
Board, Arrested and Con.
fesses Crime.
SAYS HE DID ITsAT
REQUEST or oFFIOIAL
Hinted That Charged state on.
cial Will Resign in Near
Future.

st. Paul, MINI, Feb. 8.-R. C. Pick
EFT, clerk of the state investment
board, was arrested late today on
charge of forgery in connection with
alleged irregularity in the handling
of the permanent trust funds of the
state. County Attorney R. D. O'Bri-
en- said tonight that Pickett had con.
fessed and that the information thus
obtained would be submitted to the
Ramsey county grand jury now in ses-
sion here
-.. Is Locked Up.
Pickett was locked up at the Cen
tral Police station tonight and, ac-
cording to Mr. O'Brien, the case will
60 directly to the grand jury with
out any preliminary hearing. The
county attorney said he expected to
hold Pickett until the grand jury has
acted in the matter, which probably
will be placed before that body next.
Thursday. . "
The total amount Of Irregularities
is $2S,962, and this amount has all
been paid back, according to Mr.. Pre-.
us, state auditor. Included in the to.
tai, said Mr.. Preus, is an item Of
$4,443.5O, which covers school dis
trict loan of $4,000, and $10l.50. inter-
est on this amount, and $152 in inter.
est on a loan to School District No.
7G in Roseau county, and $500 inter.
est on the $4,000, and $1,000 of
loan to School District No. 5S in Polk
county, which was paid up from the
$4,000.
Smith Makes Statement. -.
The original announcement of the
$4,000 irregularity was made late
last nigth by Assistant Attorney Gen.
eral Stevenson and State Auditor
Preus. Walter J. Smith, state treas.
urer, and Mr.. Pickett made state.
ments as to the transactions and Mr..
Pickett admitted the additional irreg.
ularity.
All the money has been paid back
into the treasury, $4,000, by certi-
fled check from Treasurer Smith. No
legal action has been taken against
Mr.. Smith.
The state investment board, which
has charge of the permanent trust
funds involved in the irregularities.
met this afternoon at the capitol and
took no action. Governor Burnquist.
as a member of the board, explained
that as chief executive he cannot do
anything until some citizen files q
complaint against the state treasurer
charging malfeasance in Office.
Snyder Declines to Act.
The attorney generals oh1ce.
through its assistant, Mr.. Stevenson.
maintains that it would have to pass
upon any such complaint and there
fore could not make a complaint.
Fred B. Snyer, another member Of
the board, declined to take action
himself.
Mr.. Snyder declared that in his
opinion the state treasurer should
have resigned before this.
Mr.. Preus thought that the treas.
urer should be given hearing.
The governor explained that in the
event of complaint being fled, the
procedure requires that commission
be appointed. to take evidence and
determine whether the evidenc sup
ports a charge of malfeasance.
At the investment board meeting
Auditor Preus told of an interview
Preus and Assistant Attorney General
Stevenson had with Pickett. Preus
said Pickett forged the $4,000 war
rant and turned it over to Treasurer
Smith. In some way, Preus told the
board, the warrant was cashed, Pick
ett not getting any of the money, but
was later loaned $1,000 by Treasurer
Smith and also given 1000 shares of
stock in the Resilient Wheel COM
pany, an automobile wheel concern.