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EVENING CAPITAL NEWS, SATURDAY, SEPT. 12. 1914.SERIOUS CHARGES ARE MADEAGAINST STATE TREASURER;USE OF DUMMIES ALLEGEDSensational Accusations Are Made by Clarence Van Deusen, Progressive Candidate tor State Auditor—Says School Fund Loans Secured Through Use of “DummiesyyVan Deusen Charges Summarized.«That dummle* w©r© used bv O. V. Alien, treasurer of the state of Idaho; Fred M. Coleman, former deputy state treasurer and ('. L. Sworm-atrdt employed In the secretary of state's depart men t. to secure nil $*000 loan from the general school funds of this state and were successful.That the dummies were Lewis W. Ensign of Boise who wrote many of the bonds for state officials and George B. Wood, cashier of the Idaho State Life Insurance company, of which at the time of the application for the loan Allen was president.l’hut the applicants did not have title to the land when the loan was authorized by the old land hoard, that iltlu did not pass to them until the Out© the loan was consummated; that money was paid over on authorization nf tho present land board.Thai tho land board loaned an amount equal to the full value of the land although 1)10 law limits u state loan to hut one third the full value not Including Improvements; that the land sold for the full amount of the loan, $8000.That the date the amount of the loan was paid to the alleged '‘dummies they transferred the property to the Boise Investment company which Is ,\l!« r„ ('oleuian and Swormstcdt. each of whom having subscribed hut not paid, for $5000 of Its capital stock.That interest payments on the* loan still aro and have been delinquent for 17 months; lhut the land Involved was sold for delinquent ta\c3; that to save h»i of its interest in the property the state will have to redo m it and pay ;«!! penalties.That A T. W atkins, on© of the appraisers, was in partnership at Hill city in the saloon buain* ss with Volomun and 8 worms ted t: that Nworm-bledt had Watkins arrested and sent to Jail for selling tho mortgaged* property uf tin- saloon; that Watkins talked about exposing the land loan and later the charge against him was dismissed.©state fraudulently woe carefully planned and worked outLoen Deal Summarized.Proceeding to unfold the facts In relation to the loan van Deusen gave them substantially aa follows;On December 12, 1912, Ensign applied to the state land board, then comjKiaed of Governor James H. Hawley, Attorney General D. C. McDougoll, Secretary of State W. D Gifford, State Auditor Stephen D. Taylor, being present for a loan of $4500 on land described aa lot 4. southwest quarter of the northwest quarter of section G, lota t and 2. east half of the southeast quarter and southeast quarter of the northeast quarter, section 6. township 2 of range 12 cast In Blaine county, 360 acres. Ensign claimed at that time h© was owner of tho land and wanted tho money for the purpose of Improving the property. He gave the value of the land as $15,600. Ail of these statements hr swore to in an affidavit accompanying his Application.The regulation blank provided for making applications for loans was filled out by Eiuilgn. This application contains the question, liow did you acquire title to it? (the land) to which Ensign anawertHl, Bought it from A. K. 1*oe and wife. In answer to the question, Have you a patent or deed? Ensign replied, “Yes. fie further uuule affidavit he bought the land In 1912. paying for It $12,600; that it was nol free from incumbrance; that a real estate mortgage for $3,746.13 was held by the International Mortgage bank ami Jl. I. Curtiss.Ensign did not take title to the land until January 15 of the year following, or almost a month afterwards. He took the title from Archie R. I/©e and his wife, paying to them for the land $4500.Investment Company Organized.Two days later, or Jan. 17, 1913. what Is known as the Boise Investment company was organized, the pur-of which, according to the articles of incorporation, was to buy and ■ell real estate. Improved and unimproved. and improve tin* same, to execute deeds, etc. The capital stock of this company was $25,000, divided Into 250 non-utHtftsable shores of par value of $100 per share. The amount of shares subscribed, but not paid in totaled 150. divided ss follows; O. V. Allen, state treasurer. 50; Fred M.of the month, buyIng It from the same party Ensign bought his part of the farm from or Archie R. Lee and wife, pa Ing to them $3500 in face of which fact he made affidavit to the land board that be considered the same land valued at $14,110.Appraisement Approved.The same date that Ensign mort gaged bis, property when the state paid to him the loan, or March 15. 191 S. Wood secured his loan from the state paid over by the present Haines land board, and mortgaged back the property to the state of Idaho and giving notes for $3500 payable five years from that date.Wood secured the $3500 loan on 280 acres, described as tlie southeast quarter, southeast quarter, northeast quarter, lots 1 and 2. section 1. township 2 south, 11 east, Elmore county. Lee and Watkins also uupraised thin property at $40 an acre, although Wood paid but $3500 for It and the stateCLARENCE VAN DEUSENProgressive Party Candidate for Audi tor, Who Exposes Land Loan Deal.loaned on It to the full amount of purchase price. The state landthede-to the application of Dew la W. Ensign, of Boise, who desires a loan of $4500 on 1360 acres of land situated In Blaine county, near Hill City, will say that due to the fact that there is considerable snow In that section we have liad the apprnlscment inaee by Mr. A. R. Lee. w ho formerly owned the land, j This appraisement has been verified i by Mr. A. T. Watkins. They have u»-pralsed it at $40 per n«*re, and having I a general knowledge of thAt territory. I feel that their appraisements arc i conservative and a loan based on theso valuations will be secure. I am not acquainted with Mr. Ensign and, therefore, cannot report on his standing.Tours respectfully.(Signed) I. H. NASH.State Land Appraiser.The members of the land board who closed up the loan and authorized the payment of the money were Governor j Haines. Attorney General Feterson, I Secretary of State Gifford. State Auditor Huston and State Superintendent of T'ubllc Instruction Miss Grace j Shepherd.Deeds to Investment Company.The very day that the state paidThe fraudulent loaning of money fi mi the public school fundi' set apart tor the education »«f children In Idaho “dummies acting in bcaalf of slate oftli U»l**, to pay the pun base price for til*) acre a of land In Blaine and Elmore counties, was the sensational charge and cxpomre made lost night b Clarcme Van Dvusen, Electors' Progressive pnn\ candidate for state .tuditor. In loro un audi* uve in tho Odd I-Yllows luilL, Thirteenth and Eastman streets. Mr. Van Deusen named «• the officials who wore party to and benefactors rr«»m the loan. $8000, State Treasurer i). V. Alien, Deputy State Treasurer I'red M Coleman, who recently resigned and Charles U Sworm-atvdt. deputy in tlm secretary of state's department. The alleged duro-ut.ee to the loan wore named aa Lewis W Ensign, of Boise, a member of me Insurance firm of Ensign Ensign, who wrote the bond of State Treasurer All. n and George B. Wood, present i ashler or the Idaho State Life Insurance company, of which at tho tlruo tho application fur tho loan was made. State Treasurer Allen was president The charge has created a genuine sensation, exposing. It is alleged, tho subterfuge used by slat, officials to secure state money for their own use and the unbusinesslike manner resorted to by land boards In handling the state's financial affairs.. Interest Not Paid.The exposure of Mr Van Deusen makes the startling re-elation that the i o- ords of tho land board and land de-paitment show that although the loan \ as consummated to the dummies'' tor State Treasurer Allen. Coleman and Bworinstedt, not on« penny «»r the total accumulated interest, $831.97 up to Sept. 2 of the pr« sent year has been paid on the loan, although Register Ned Jen ness of the land department has made official demand for It. and t Hitt Iho hnul Involve \ has Minn| port an ce made In Van Deusen’s charge Is that, although Ensign and Wood ; gave notes to the state Of Idaho after the state made the loan, tho register of the land department, Mr Jmucss, made his demand for tho interest pa -ments that were inado on O. V. Allen, ytuto treasurer, as th« accompanying facsimiles of tho notices ho sent to Mien will show. In other words, the domand for the Interest due the stale j was not made on those who gave the 1 note*. Wood and Ensign. It is hero 1 that the allegation of conspiracy is made by Vun Deusen on the part ofli»■*r*• •* iMrtkMOStair Bonrh of Uniib GJommloulurtrta• «M|I| M(tHINI , wDso IB 1913Bole# Isz«stTE*nt Co..0. f. Alloa. Proaidsnt,B0loo, I \sho*Ooar JirjTour onontion it roipootfully czlitd to 3tsi« Loan Wo 4243 oa which pa/m«nto aro raquiroa aa faUo*»;state officials.How Ohsrge Is Made.In making the charge Mr. Van Deu-sen did not mince words, but hit straight from the shoulder. In his opening remarks he said;I have been called a liar by Republican controlled newspapers in this state because I have accused the members of the present Republican state land board. John M. Haines, Republican governor; Joseph H. Peterson, Republican attorney general; Fred L. Huston, Republican state auditor; W. L Gifford, Republican secretary of •-late, with having loaned, tty^ugh dummies, the members of the state l».is. ring ii e money that belongs to tho public school fund, with no ex-pectutlon of repayment.I now charge that these Republican .-tnte officials loaned $SOOO to O. V Allan, state treasurer, tho only other state official who is not a member of the state land board, to Fred M. Coleman. deputy state treasurer and to Charles I* Swormstedt, assistant secretary of state, the money loaned being pan of the public school fund, set apart for the education of your children and your children's children, to pay tho purchase price for 6(0 acres of land in Blaine and Elmore counties. And since that loan was made. IS months ago. not one cent of the Inin I« rt* i dueJ»n 1 1914Principal du# Jul7 1 1*13Told 1* IB’.60 X 91. *249.ft.v»ry truly yourf.Loto tc ndafl ofIdvis V. Eftsig*Aat. of Lo*b $ 4 ,600•■ ftUAH Monet witN fxaifiFacsimile of Notice Sdnt by Ndd Jenness. Register of the Lend State Treasurer O. V. Allen, Demanding Interest Payment on thoEnsign Loan.Board, to Lewis W.Coleman, deputy state treasurer, 50. Charles L Swormstedt,* assistant hoc-I retary of state. 50 shares.The following March, or on the fif-| teen til of that month. 1913. Ensign mortgaged the land to the state for $4500, duo five years after date with Interest at 7 per cent per annum, payable seml-annunlly. The land board (directed the appraisement of the land and this was done by I^ec, who sold It to Ensign and A T. Watkins, tho man who was In the saloon business at Hill City In partnership with Sworm-strdt and Coleman. Irrespective of tho fact T^»e sold I lie land tn Enniriiover the money to Ensign the record shows he deeded the land to the Boise Investment company, or March 15. 1913, the consideration being $1 and the land going Into the possession of State Treuaurer Allen, Coleman and Hworm-stedt. At,The mtter part of that same yearor Dee. 15. 1913. the record shows that Ned Jenness. register of the state hind board, made a demand, in writing, on O. V. Allen, atate treasurer, as president of the Boise Investment company. for tho Interest due on tho notes given by Ensign, an amount given as $249 «lt;*. the Interest falling due Jan.partment through State Land Ap-J pralser Nash also accepted this S4o up. pralsement It is shown from the following record report Nash made to the land board:Boise. Ida.. Jan. 9. 1913. State Board Land Commissioners, Boise, Ida.Your Honorable Board: In the mat-.ter of tho application of George B. Wood of Boise for a loan of $3500 on J 280 acres of land situated near HlU| city, Blaine County, which was referred to us for appraisement, will say that we have th» appraisement made by A. R. Lee. due to the fact that th-land Is now covered with snow. Mr. Lee formerly owned thy land, and his statements have also been verified by A. Watkins. Both gentlemen are from Hill City and well acquainted 'Mtli-conilltlons there. They have apprals-ed the land at $40 per acre, andthrough rnv general knowledge of th«*| Country surrounding this land. I feel I that the appraisement Is conservative and a loan based on this value will be secure. 1 am not acquainted with Mr. Wood. Therefore know nothing of his standing.Yours respectfully.(Signed) 1. N. NASH.Kiate Land Appraiser. Investment Company Gets Property.On March 15. 1913, the date on which he received the loan from the state and the date on which Ensign received his loan from the state. Wood and wife deeded the property to the Boise In-veslment company, of which O. V. Allen Is president and Coleman and Hworxn-stedt aro members, for $1.As In the Ensign Instance, Register Jenness of th© state land board, demanded of State Treasurer Allen, president of the Boise Investment company, on Dec. 15, 1913, to pay tho state the Interest due on tho loan or $192.95. On Sept. 11. 1914. yesterday, the 1914 interest was $170.02, making a total of $307.97. none of which, It Is alleged, has been paid.Tho Wood property deeded to the Boise Investment company, w as. like I the Ensign property, sold on Jan. 12. 1914. for delinquent tajces to Elmore county. To recover and protect Its Infer©* In tbs property th© state of Idaho *$11 have to puy the delinquent taxes and all penalties attached.The records of the land bourd under date of Dec. 27, 1912, shows the following entry:Farm loans were granted as follows conditioned upon tho applicants furnishing abstracts showing clear title and that the land offered us security for loans hnvo sufficient value to meet tho requirements or tho law;George B. Wood...............$8,500.00Lewis W. Ensign ............. 4.500 00Watkins Arrested and Ditcnargod.A. T. Watkins, one of the appraisers «»f the land on which Wood and Ensign secured the loans, was arrested during tho early part uf the present year by Charles I*. Swormstedt, who waa In partnership with Wat kina, together with Fred Coleman. In the saloon and pool hull business at Hill City, which Watkins operated, it is alleged. Swormstedt swore to a complaint charging Watkins with disposing of mortgaged property, or, part of the fixtures of the saloon, and other property. Watkins waa committed to the Ada county Jail Feb. 8. 1914. by Justice W. C. Bower. At that time, and following his arrest, Watkins 111Claimed, among ft her things, that Jto1 lt;1 k* rutaa (Ha *« ni/.il iu I ii.rib ii
Newspaper Details
Evening Capital News
Boise, Idaho, US
Sat, Sep 12, 1914
Page 5
Full Page
Clipped by
Karen L.
AZ, USA 15 Nov 2022
Other Publications Near Boise, Idaho
The Idaho Scimitar
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