The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-10-13
Leonard SLabOdnik and John E. Johnson Indicted on
TIUo Counts Each in First State Bank Affair
John PaIcler Indicted tn City Investigation.
Affairs of the City and of TolUer Looked Into By the
Jury Whose Recommendations Are GiUen BeLolc-
PaIcher Case to Come Up Next Tuesday,
ELY ACCOUNTING SYSTEM PRAISED.

tons OF the affairs of the City Of
Tower, City of Ely and the First State
Bank of Ely on Thursday evening and
reported to Judge Magney. The jury
was discharged and left for their homes
that evening and the following morning.
Five indictments were returned. Two
true bills were found against Leonard
Slabodnik, cashier, and John z. john
son, assistant cashier, Of the First State
Bank of Ely which closed its doors In
January and has been IN the hands OF
receiver since. Slabodnik was IN
dicted on two counts, one for the lar
ceny of S1,743 and the other for the
larceny of 81 ,582 So johnson was
charged with the larceny Of 81 900 and
$500, respectively, and he was indicted
on one first and one second degree
counts.
The indictment against John PaIcher
charged him with the appropriation
for his own use OF City of Ely warrant
No. $3.50 in the amount OF s94 .O8 for
certain labor alleged to have been per
formed by said John Palcher during
the month OF December 1892 which
said alleged labor the said John PaIcher
then and there knew had not been per
formed by him"
Palcher was taken into custody at
once. He plead not guilty before Judge
Magney upon being arraigned and was
released after furnishing a bond Ii the
sum OF $500 for his appearance IN court
for trial on Monday, October 10. when
the evidence viii be heard before a
jury.
The report of the Grand Jury as pre-
sented TO Judge Magney was signed
by Rupert r. ASplund OF Duluth. as
foreman and w. A McCurdy OF Viz
GINA, as secretary. Besides these serv-
ing on the jury were:
John v. Anderson OF LION; john L.
Benz, w. c. Berkelman, John Carson.
Chas. L. Cecil, F. B. Getcheu. Albert
Olson, A s. Ulvang and A. NJ. Sole of
Duluth; H. z. Billings Of Virginia; NJ.
Calvert Of Saginaw; Gus Cronberg of
Buh; Robert Ely Of Eveleth; F. W.
Rowbottom of Cook.
The report of the jury made public
after the placing of Palcher in custody.
the others indicted already being in
custody. was as follows:
The Grand Jury for the October
term, which met in the City of Ely, on
the 3rd, 4th and 5th days of October.
A. D., 1888, hereby submits the following
report to the Honorable Clarence
Magney, one of the Honorable Judges
OF the above named court:
indictments have been returned and
have been heretofore submitted TO the
court.
The Grand Jury, having gone into
the report submitted by the Public Ex-
amlners Office of the State of Mime
sofa concerning the audit of the IL
anc1al affairs Of the City Of Tower.
makes the following recommendations:
That the city officials of the City of
Tower be admonished to adhere TO the
provisions OF law requiring the verif-
cation of claims presented to the citv
Tor payment. and it is further recon-
mended that the City of Tower install
SUCH books and records as are recon-
mended by the Public Examiners Office
OF the State of Minnesota. II is fur
lner recommended that the said CITY
council comply with the statutory re-
qulrements in the letting of contracts
ana purchases OF materials over the
sum of $500.
| mat from the evidence presented TO
tnls Grand Jury, both by witnesses and
report OF the Public Examiner. We are
unable to find any dishonesty in the
management of the financial affairs of
the City of Tower.
We commend the City of Ely on the
emclency OF its accounting system In
general. but more care should be ex-
ercised In the purchase of materials
and In the letting of contracts so as To
comply with the law. Changes should
De made in the handling OF time re-
ports SO as 70 effect a double check on
time worked by field men.
we, the Grand Jury, have carefully
gone INTO the banking situation con-
corning the First State Bank of Elv
minnesota, as exposed by the bankine
examiners reports, as well as otheI
witnesses called before us. and find
while there is some negligence exDosec
ON the part of the directors, we do MOI
IND any evidence of any criminality a:
regards those directors against whom
no indictments were returned.
The pitiful situation discIose1
through our study of the affairs of tht,
bank cannot be mitigated by this ilr,
put We feel that it Is our duty e
enoeavor to see that the punishment
lor culpable offenses more adeouateI,
fits the crime.
We further recommend that tht
spate banking examiners include ths
serlIlcation Of the balances in de.
posters accounts as a part of the
regular audit Of the banks under it.
jurisdiction"
Dated this 5th day of October A D
1888. a =
The jury in the District Court which