The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1916-10-05

II Tegular1CleS IN Ca88
~ county notably with
regard to bond sales
II and. commits s / O n
paid on them, road
II r1PMItI =; -; building contracts
3SToNiGHT and other transac-
LET'S GO tions, principally by
the county commissioners. The in
vestigation was instituted on the
findings of State Public Examiner
Andrew E. Fritz in special examina-
tion made at the governors direction
following complaints by three Cass
county, citizens.
Louis s. Headley, who recently re-
signed as clerk in the state legal, de-
partment to engage in law practice in
st. Paul, was appointed commissioner
to take testimony for and against the
county commissioners named in the
allegations. " .: or
Officials Keep Jobs. "H
Governor Burnquist announced that
no suspension of county officials
would be. made pending the inquiry,
contrary to the proceedings in prog
ress in Koochiching county charges.
The complaint to the governor. is
signed by Thomas Peterson, J. R.
Blackburn and e. S. Holman, as Cass
county taxpayers. c. D. Bacon now
is county auditor, succeeding I. P.
Byhre, whose name is connected with
the Irregularities charged. The pres
ent, board of county commissioners is
made up of Fred Moulster, w. B.
Jones, J., E. Krake, J. B: Spencer and
A.. j. Swapberg. -, - = = .: .zs d -. e.
f. Twenty three separate charges or
criticisms were contained in the COM
plant, 2nd each is referred to in the
report by Examiner Fritz of the in
quiry made by his department.
G. A. Elder Mentioned.
George A. Elder, agent of the Du-
luth Securities company, who figured
in the Koochiching county charges,
is mentioned in connection with al
legged excessive commissions and in
terest rates paid on bonds sold by
Cass county.
The complainants cited sales of Ell
we'll road bonds between May /, 1915,
and March /, 1916, of $474,00O at
II per cent interest and $1,8OO COM
mission, and said they had every rea-
son to believe that the bonds could
have been sold at lower rate of in
terest and no commission. The pub
lie examiner reports that there, is
no evidence that the board could
have had any idea of the value of
Cass county bonds.
The report, however, criticizes
some of the sales for being made
without advertising as required by
law, and explains that warning
given at the time by the examiners
department resulted in the board
resembling certain action, but finally
selling a 100000 issue after raising
the interest to 5h per cent and
| agreeing to pay an agent per cent
for placing the bonds. The auditor
refused to sign the warrants, and
settlement was made when the agent
agreed to take $1,000 commission.
Other Deals Mentioned.
Other bond transactions are dis
cussed at length as are also those re-
lating to road building contracts.
Contract prices are given as $,721:73
on state rural highway No. As; ST.
568.14 on highway No. 81, and ST.
The examiner fails to find that the
commissioners exceeded their auth
ority, as complained, by floating
$544,0O of road and funding bonds
during the ten-month period named.
The report states that although
the law limits the appropriation to
$500 for a county exhibit at the state
fair, the managers report shows ex-
penditures of $8O4.54, but $29125 of
the amount received from premiums,
pictures and so forth, and the law
does not state that such proceeds
shall be turned into the county rev.
enue and the balance of $13.29 was
not paid by the county. Payments of
$50 and $40 to Commissioners Moul-
ster and Jones, respectively, and the
salary of $3.50 paid Mr.. Brewster also
is unlawful.
Examiner Fritz declines to place
values on the services of attorneys
paid 1925 on highway No. 80, 1895
on No. 81 and $3.50 on No. SO, while
no attorneys were engaged on the
two other road projects.
Rated "Unbusinesslike. ::
Alleged evasion of the law in con-
nection with the ontract letting on
the Remer-Bear river road, is COM
planned of and the transaction is
rated "unbusinesslike.'
An effort to bring about confer
ence between the complainants and
the accused, Examiner Fritz said,
was abandoned when the committee
for the complainants objected to the
plan.