The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-05-26

open lctteI OF ASKING you 10 eSpldlll
certain loans, recently made, which
appear to be of the dummy variety
which figured SO strongly in the past
campaign and which show grave ir-
regularries which should not have es-
capped the attention of yourself and
other members of the board.
On the 24th of February. 1916, four
applications for loans were presented
to the board as follows:
John s. Scott applied for loan of
$4,000, offering as security 100 acres of
land
P. w. Williams applied for a loan
of $4,000, Offering as security 100 acres
of land
Luther A. Huston applied for loan
of $4,000, offering as security leo acres
of land
Thomas M. Williams applied for a
loan of $4,000, offering as security 100
acres of land.
The applications for these loans
were all filled out in the same hand
writing which appears to be that of
Fred L. Huston, member of the state
land board.
Appraised in Advance.
All OF these applications were turn
ed over to Mr.. Huston for presenta-
ton to tie board and prior to the time
of their actual presentation, Mr.. Hus-
ton had made and entered on three of
these applications an appraisement of
the land offered as security
The fourth application, that of LII
Their A. Huston. a relative and said to
be the father; of Fred L. Huston,
showed that the appraisement was not
M nd Ia AZ l.
cause of the relationship, but that it
was made, on the very day these ap-
plications were presented to the board
one of his assistants from his office
IN Boise, without seeing the land or
passing upon its actual present con-
dition.
These loans were granted, you being
applied Tor on the very day the ap-
plications were filed with the board
and on tine following day you endors-
ed warrants for four loans aggregat-
ing $l9,000O0.
Decided Short Time Before.
1t was later shown by the abstracts
that, a short time before the loans
were applied for. each of the severa
ty had been decided by Fred l.. Hus
ton and wife to the parties applying
for the loans, and that in order tc
make these transfers, it was necessar,
to redeem the land from sheriff's sale
Your board has rule to the effec
that whenever loan is applied fol
the application must be accompanied
by deposit of | per cent of the
amount applied for and rule 80 state.
that:
1T will be considered that the ap
praisement fee has been earned i
loan is granted and completed in til,
amount applied for"
Under this rule. the loans havins
been granted as applied for the stat,
was entitled to fees aggregating 500
but the minutes of your board for tn,
day on which the applications wer,
considered show that the deposit o
the fees was waived on the grounc
that no expense was incurred in max
ing the appraisements.
1t may be remarked parentheticall,
that most any borrower would be will
ing to appraise his own land, if per
mitted to do so, and thus save the 'ap
praisement fee. This practice woul,
at least have the virtue of equal treat
ment to all
Sends Warrants Next Day.
On the 18th of February, 1916, tn,
day after the loans had been authoriz
ed. the register of the land board sen
four warrants aggregating $40 600 t.
the Farmers and Traders bank O
Idaho Falls accompanied by :. lette,
stating that the warrants were to b,
held in escrow until title to the prop
erty had been cleared except for til,
mortgages to be given the state. Thu
letter concluded as follows:
Abstracts clear of all encumbrance!
except states mortgage, i'm each cas-,
must be filed in this office and yo,
must be advised of their receipt an,
approval before the enclosed warrants
are released"
Notwithstanding these instructions
the warrants issued in favor of Luthe,
A. Huston, p. w. Williams and Johr
). Scott must have been released a
once for the records in the state aud
itor's office show that they were re
deemed on Feb %, 1916, the day be
fore the corresponding abstracts wcr,
received by the state and before the,
had been approved.
Have you instituted any inquiry +,
ascertain whether the bank acted OF
its own, responsibility in departin,
from the escrow instructions, O
whether it was given some unauthor
lied instruction contrary to those Civ
en- by the register?
There seems to have been some de
lay in preparing the abstract in tn
case OF Thomas M. Williams for tn
records show that il was not receive,
by the state unit the 5th of TIE pres
ent month. At the date of this letter
May lS, the abstract has not been re
! ported approved by the attorney gen
erals office, the warrant has neve