Evening Republican, Volume 59, Number 112, Rensselaer, Jasper County, 1 June 1917 — SOLD BOGUS BONDS AND DISAPPEARED [ARTICLE]

SOLD BOGUS BONDS AND DISAPPEARED

Lee M. Ransbottom, Former Auditor of Starke County, Missing—Ac--4 tion a Great Surprise. Knox, Ind., 31.—Lee M. Ransbottom, formerly county auditor, is on the ilst of the missing. He has gone, no one knows where, and the manner of his going created more surprise than if a tugboat had anchored at -the (bridge across Yellow The last man in the world that the people here would suspect of crookedness, sold some bogus gravel road bonds, pocketed the proceeds and went away. . And it is irony that in this county (Starke), where a treasurer, a sheriff, a recorder, an auditor and tiwo township trustees have been defaulters, that the moat determined effort was made to abolish the public accounting law, a law all honest officials admit to be -the best on the books <xf Indiana. However, as far as is known, Ransbottom did no wrong as county auditor. It is stated here that his books balanced and he left the office clean. But of that there is no certainty and some of die bondsmen are afraid, in the light of what he has done, that some of his official acts will make them liable. But here is the Story of what Ransbottom did after his term of office as auditor of Starke county expired. On September 10, 1909, Starke county issued $37,500 in 4% per cent gravel road bonds to pay for the construction of the Guernsey road in Washington township, the Moorman road in Center township and the Burns road in Railroad _ township. These bonds were legally issued and property signed bv W. H. Emig, F. C. WariMmetem- and Henry Luken, county commissioners. Because of the shortage of money or the low rate of interest or something else that no one here knows about, these bonds did not sell. Where they were kept and why they were not cancelled has not yet been figured out. In 1910 the (board of commissioners was changed. In April of that year it was composed of Henry Luken, O. J>. Fuller and W. H. Emig, and in that ( month the commissioners, issued a new set of bonds to pay for the roads named in the 1909 bonds. These later (bonds drew 5% per cent interest and were sold at Indianapolis and other places. As far as the 5% per cent bonds are concerned there is no cloud on their legality. Every one had forgotten about the who did think about them supposed they were cancelled, as required by law But a few days ago three of the 4% per cent bonds that Were supposed to have been cancelled were presented to Auditor Weninger for eayment and he, knowing that the onds were illegal, refused to pay. An investigation was made, and it was found that 'Ransfoottom, the former auditor, had sold $10,710 of the 4% per cent fctonds through a Crawfordsville bank which acted as agent for the bonds and to a bank at Toledo, 0., pocketed ffhe money and disappeared. L A dose legal question .is involved in .this matter—whether the county will be held liable for the payment of the bonds or whether Ransbottom’s bondsmen will be held. As the sale of the bonds was not an act done while he iwlas auditor, it is thought the bandsmen will not be held liable. The fall of Lee Ransbottom is almost a calamity in this community. He was the last mon in the world who would be suspected of doing a criminal act. He was a school teacher when nominated for county auditor in 1904, and elected. He was re-elect-ed in 1908 and served through 1912. It was while he was auditor that the state board of accounts made an investigation of the books of Starke county. He refused to issue a warrant for the pay of the field examiners. As far as any one around here knows, Ransbottom was a man of precise behavior and led a quiet and reproadhless life. As a rule when a public official goes wrong, there is a woman in the case or he has tangled the funds of his office in speculation. Bfut every ana here declares that Ransbottom did not seem to care for the songs and festivities of Bacchus, and no one has heard that he speculated. He had started' out as a hunter of money and he proposed to get money, honest money or otherwise. It is the belief here that he did not begin his crooked work until 1913, after he was out of office. Where he kept the illegal' 'bonds is beyond the ken of anyone here. How did he happen to take the first step along the slippery path that leads to easy money for a time, but in the end brings a bitter pay day?

The first thing he did for which he might be criticised was a deal in real estate. He was a director in a local bank. The bank had taken in on foreclosure a farm that was listed in its assets as real estate. The bank examiners did not like that asset and proposed that the land should ibe deeded’ to him and he would place on it a mortgage equal to the amount the bank had in the real estate. This was done and the bank then had a mortgage that was acceptable to the bank examiners as an asset and on which it should be stated, the bank made good. Remember, Ran&ottom did not (pay the bank a cent for this farm, but he traded it to some parties in tMtehigan for a store, ran the store a while and then failed. This, as far as Ransbottom’s friends here know, was his first quest for easy money and they believe that it was so easy he sold the illegal 'bonds to get more easy money. . '