The record. [volume] (St. Maries, Idaho) 1913-1918, 1916-06-20
FROM NAMPA LERDER-HERALD
REPUBLICAN,

the sO-called Huston state loans
as made public by Register Hale,
it is quite evident that State Au-
ditor Huston should resign at
once. In the event of his fail
ure to do so steps should be TAX
en- to GUST him. 1t would seem
that his work in this matter con-
stitutes a serious onense and
there should be no trouble i'm put
ting him out of office.
1t is reasonably certain that
the loans aggrcgating $4,000
were dummy loans and that Hus-
ton himself was the beneficiary.
IL would be in very poor taste for
a member of the land board To be
party to making a big loan lo
himself but if the security were
unquestioned, it might be allowed
to go at that. I'm this case, how
ever, Huston himself made Ihe
appraisement and placed the val
ne at 500 per acre. Since then
Land Commission Day has placed
valuation of $50 per acre ON the
land. 1t appears, therefore, that
the only way for Huston TO get as
much as 1888 ON the land was
to make the appraisement him
self. This alone ought to con-
stitute sufficient grounds for The
retirement of Huston to private /
life. There are, however. still /
graver ofenses In this matter
The mortgages to the state wore
executed and recorded days before
the land board, as a whole. knew
anything about even desire to
secure the loans by the parties
mentioned i'm the mortgages TO be
exact, mortgages to the state ag-
gregating $4,000 were recorded
on Feb. i6, but not even applica-
tions for these loans were filed
with the land board until Feb. "a. |
The inference is that 10 was a very
urgent matter ana that other par !
ties who perhaps were getting i'm
slstent had to be shown that mon
ey was going to be secured from
the state, hence mortgages had
to be recorded eight days before |
the loans were granted. TO is |
reasonably clear too, that Huston |
must have had an understanding
with majority of the members |
of the board that the loans would |
be allowed when they came up. !
as 1T Is not reasonable TO suppose /
that he would have the mortgages |
recorded without any assurance /
that he loans would be granted /
The most reprehensible, and as
1t seems to the Leader Herald.
criminal act of HustOn's. was Inn
manipulating the warrants To suit
himself after they had been is
sued in the names of the parties
who ostensibly were getting the
loans.
There were outstanding ncns to
be taken up on the lands from the
proceeds of the state loans. I'm
such cases it is customary TO
make some responsible bank, i'm
the vicinity of the mortgaged
lands, an escrow agent to pay OF
outstanding liens, and complete
clear title. 1t can do this with F,
out risk as it has the state war
4
sion and usually payable to itself ,
This was the case i'm the Hus- ,
ton loans. Register Hale made ]
out an order on the State Audit
or's Office for the warrants as the
law prescribes. When they we're
received they were endorsed to a
certain bank in Idaho Falls. Sc
lected as the escrow agent. and
enclosed with a letter of instruc- Id
ton to the bank, and were about &
TO be mailed when Auditor Illus II
ton appeared at the registers of In
flee and asked that he be made S
escrow agent Mr. Hale refused ID
his request. Huston then stat 1
ed that the matter was very ur- ]
gent and asked that he be allowed / a
10 take the warrants to Idaho 2
Falls, as there might be delay If
hey were sent by mail. To this Z
request Register Hale aeceded and /
handed Huston the sealed and
stamped envelope containing the / a
instructions. Lated it developed / q
that the warrants were cashed the b
next day, instead of being held i'm Ia
escrow pending the completion of %
the title. An inquiry developed Ia
the fact that the bank never re- lo
ceiVed the letter Of instructions. lg
but Huston presented three of
the warrants and had them
cashed the following morning.
me other warrant was not pre-