3L IT santa fe Sew MEX Mwa rWMaxV .wHrt-' lnAisit CAN VOL. 44. SANTA FE, NEW MEXICO, WEDNESDAY JULY 17, 1907. NO. 131. REFEREE'S REPORT IN BURSUM CASE WORRYING Ill EXPERT M'MAHON OF 'S EX-PARTE ' EARNINGS F T Thousands of Dollars Credits Omitted in Previous Report Territory Indebted to Mr. Bursum During His Super i indency of PrisonNo Shortage or Deficit Ever Existed. A little over a year ago there was published by tlio Democratic news papers of the Territory, amongst them the Albuquerque Morning Journal, an article purporting to be the report on the receipts and expenditures' of the fund known ns the '"convicts' earning fund" of the Territom.1 penitentiary, during the term of nearly .seven years of which IT. 0. fflir suni was the superintendent of the prison. This report, was prepared and signed by one. Francis M. McMahon, then secretary of the Colorado Title and Trust 'Company of Colorado Springs, Colorado. This party had been employed by ex-Covernor Her bert J. Hagerman for this purpose and, as near as can be ascertained, received the sum of about $1,2.50 out of the convicts' earnings fund for the job. It was then and there claimed by Hagerman and those interested with him in the affair that MeMahon was an expert accountant, had thoroughly and honestly investigated the accounts, had demonstrated that Mr.' Bursum owed the Territory over $12,000.00 of this fund received by him and not accounted for. This, of course, meant that Mr. Bursum was guilty of ofiicial mis-conduct and embezzlement. The rcKrt was given the widest possible circulation in the yellow press under flaring headlines and paid for by a combine of Ilagcrman. administration officials, Demo- eratic politicians and personal enemies of Mr. Bursum. The report was .absolutely ex-parte and the Hagerman administra tion had denied the request of .Mr. Bursum to be represented during the investigation of the accounts by an expert accountant for the purpose of checking the work of MeMahon as it proceeded. After the publication of this so-called "expert's report" Mr. Bursum and his friends published an emphatic denial of the false charges and untrue accusations made therein. In order to fully substantiate the absolute falseness, incorrectness and untrue statements in McMahon's "expert report" and to vindicate himself fully to cleanse his record from the unjust charges, foul asper sions, the cooked-up falsehoods and the vindictive assaults upon his char acter, heaped upon him by this report, and the yellow press of the Terri tory, Mr. Bursum determined to secure a judicial investigation and decision. Under and by virtue of an act of the recent Legislative Assembly, Mr. Bursum instituted suit in the Third Judicial .District Court for Socorro County, praying for a complete and thorough judicial investiga tion of the accounts described and known as '"the convicts' earnings fund" under his administration of the. Territorial penitentiary. The suit was filed and Charles V. Safford, traveling, auditor of the Territory, one of the best bookkeepers and accountants in the country, a man of the high- ' est reputation and an official of remarkable efficiency and executive abil ity, was appointed referee by Associate Justice Frank W. Parker, with instructions to take the necessary evidence and submit the same to the court. The Territory of Xew Mexico by its attorney general, William C. lieid, tiled a cross-complaint and became a party to the suit. , An immense amount of testimony was taken by Ueteree Saitord, several weeks' time was spent by him and his assistant in .the taking of this evidence and in the preparation of the report. Some days he and his assistant working from fourteen to sixteen hours. , Hundreds of errors on the part of MeMahon were discovered, most of them against Mr. Bur um. omissions of credits bv the hundreds were found; discrepancies and erroneous additions and subtractions by. the dozen were shown up. - The original memoranda, bills, receipts, vouchers, invoices, and book records were thoroughly examined and checked and as the report shows that not only was Mr. Bursum not indebted to the Tern o y of New Mexico at the time of relinquishing the office of supermtendent of the penitentiary or at any time in any amount, but, on the contrai, the Territory, of New Mexico was then and there and ls today indebted and owes to Mr. Bursum a very large sum of money amounting in the agteSi herewith in full that the people may read and know.' It is a clean cut, easily understoo an, 1 correc . r , :i. ot pvnenses of the fund, and ot tne statement oi every muu iaur T :r 'uanA -.Wice greatest interest to every citizen who desires to mo - right and pist.ee prevail. Fill I TEXT OF OFFICIAL REPORT FILED IN COURT BY REFEREE Santa Fe, N.M., July 12, 1907. , Hon. Frank W. Parker, Associate Jus tice of the Supreme Court, of the Territory of New Mexico, and Judge of the Third Judicial ' District thereof. . . Sir: In compliance with your order naming me as referee, and as such referee' directing that I investigate and report as to facts, in the cause now pending in your court, in which Holm O. Bursum is the plaintiff and the Territory of New Mexico is the defendant and in which suit the plain tiff prays for an accounting as be tween the Territory of New Mexico and himself, concerning moneys that came to his hands, during the time he was superintendent of the New Mex ico Penitentiary, commencing May 5, 1899, and terminating April 12, 1906, I. would respectfully submit the result of my examination. My report, "which Is herewith sub- mltted, shows In detail all of the de bits and credits of all transactions, but the result is so entirely' different from a report made by the Colorado Title and Trust Company, dated Aug ust 30, 1900, that I do not feel that In justice to myself, that I can submit this report without calling Your Honor's attention to the many mani fest errors in the former report. Concerning the books of account this former report charged that valu able records had been destroyed or were not available, and on the other hand I found all books of original en try and from these the financial trans actions of the penitentiary under the superintendency of H. O. Bursum can bo readily traced. The only record missing and which in no sense was a book of original entry, is an old indi vidual ledger, used in keeping ac counts of persons buying material from the penitentiary, and the bal ances from which on all supposed live accounts, were transferred to a new ledger. The absence of this book was not material, as, having the books of orig inal entry, the Journal and impression books (invoice and voucher), although this work consumed considerable time, it has been easily reproduced. The "re-wiitten cash book" mentioned in the report referred to was not cop-( led from any cash book kept by the penitentiary. A cash book was never kept, simply a journal in which all cash transactions were entered as well as other items. This so-called "re-written cash book" made np a few weeks before the retirement of H. O. Bursum as superintendent, was an at tempted statement as to the . cash transactions of the penitentiary for the period of his service? The state ment was made for the information of the Board of Commissioners; was in no sense a book of original entry and would have had no value whatever except for reference, even If it had been correctly transcribe which It was not, many entries having been omitted on both debit and credit sides. This book should have had no place whatever in the examination above referred to except as a guide or a check and this fact should have been recognized by the party who made the audit. That it was so recog nized by him is shown by his repeated complaints that the book was not an original entry and was inaccurate, yet, strange to say, these very inaccura cies were made the basis of charges of shortages. The only books that should have been used in the examination in ques tion were the books of original entry, supplemented by the books in the of fice of the Territorial Treasurer as well as those in the office of the Ter ritorial Auditor, and such other evi dence of the receipts and disburse ments of moneys as could be moulded into shape and furnished proof posi tive of such receipts or disburse ments. In making this examination I have spent a great deal of time, compiled a correct cash account, re-written and journalized all transactions, repro duced the old ledger, verified all ac counts pertaining to the receipts and disbursements of money by the su perintendent and sale of materials to Individuals and herewith submit my original work, consisting of one hun dred and seventy-five special ruled sheets which show in detail every transaction, together with the repro duced ledger as well as balance sheets. . The following statement is a con densed summary of all cash transac tions, covering receipts and disburse ments of moneys that came into the hands of H. O. Bursum during his term in office and for which he was accountable, but does not include the receipt or disbursement of any funds, although penitentiary funds, the actual possession of which never came to the hands of the superintendent I have reference . to the salary fund, general maintenance fund, permanent improvement fund, penitentiary in come fund, and the Scenic Route fund, all of which receive direct appropria tions made by the Legislature, col lected by the Territorial treasurer, retained by him and by both the treas urer and auditor credited to the .proper penitentiary fund and only dis bursed by the Territorial treasurer on warrant of the Territorial auditor on voucher approved by the Board of Penitentiary Commissioners and uo part of which funds were handled by the superintendent In cash or ' its equivalent, or by any one for him in his employ. In the report before re ferred to, purporting to show short ages or misappropriation of funds, no moneys belonging to any of the above mentioned funds were included, but all such items as were claimed to be misappropriated or unaccounted for were included Jn what is termed the ' convict's earning fund" and this sum mary submitted by me covers all cash transactions In said fund. H. O. Bursum, cx-superlntendent of the Now Mexico penitentiary in ac count with the Territory for cash that came to his hands from May 5, 1899, to April 12, 1906, while superintendent of New Mexico penitentiary: To cash from jail receipts.? 5,485.63. To cash paid by govern ment, for support of U, S. prisoners To cash from sale of mat'l. To cash from other funds.. To balance due H. O. Bur sum ;.. 4,3:13.56 29,886.57 80,429.17 31,126.04 Total .$151,200.97 By cash paid Treasurer. .. .$122,436.82 By contingent expenses.... 28,824.15 Total .$151,260.97 I am unable to draw comparisons between the amounts shown In the above summary and the figures in the former report as in that report no summary or general statement was made. However, it. can be readily seen that I have charged Mr. Bursum with more than $32,000 in round num bers than anywhere mentioned in the former report and as to the remit tances to the Territorial Treasurer have credited Mr. Bursum's accouut with more than $10,000. This, of course, includes the money paid in by Mr. Bursum voluntarily; $1,027 and the $2,470.38 paid under protest on the demand of. the ex-Attorney Gen eral, hut after deducting these items still leave in round numbers, more than $6,000 paid over to the Terri torial Treasury and all of which is cov ered by receipts from the Territorial Treasurer, the stubs of which are on file in his office and as shown in detail in the main body of my report. Contingent expenses are composed of expenditures for the following ' pur poses: Freight, which includes freights on materials like brick and lime sold f. o. b. cars at other points and freight prepaid, 6,814.04. Telephone, telegrams and express, $2,233.89. Supplies and material purchased, $5,026.29. Rewards and expenses In pursuit of escapes, $1,921.15. Gate money and railroad fare .of prisoners 'o their homes. A large part of this was on account of IT. S. pris oners and came back to the Territory by U. S. payments and included in the charges' of cash received from that source, $4,274.64. Additional services, $4,625.85. Miscellaneous expenditures, $3,928.29. Total, $28,824.15. I have also compiled and submit herewith an itemized, statement of these expenditures showing dates, amounts and classified as above and of which the above is a summary. The following is a summary copy furnished ex-Attorney General Reid; showing specific amounts and items compiled by the parties who made former report under their direction or from Information furnished by them, which were claimed in the former re port to be due to the Territory from H. O. Bursum, and on which the de mand for payment was based. For convenience for the purpose of read ily referring to these items I have numbered same: Summary of Amounts Due by H. O. Bursum. (1) Ten thousand vitrified brick in A. T, & S. F. Ry. car No. 77870, $100.00. (2) Receipts on journal and not on cash book, $168.45. (3) Remittance of May 26, 1899, belonging to E. H. Bergman and cred ited to H. O. Bursum on cash book, page 10. $700.00. (4) Amount turned over to H. O. Bursum by convicts to pay bill of Win ter's Grocery Co. which bill' was not paid and the money never turned over to Incoming superintendent for disbursement, $175.05. (5) Warrant No. 2012, December 9, 1902, favor H. O. Bursum withdraw ing balance in general maintenance fund, fifty-third fiscal year and npt ac counted for, $152.27. (6) Warrant No. 2401, November 30, 1903, favor H. O. Bursum with drawing balance in general mainten ance fund, fifty-fourth fiscal year, and not accounted for, $861.92. (7) Warrant No. 3138, January 8, 190C, drawn favor of "Jack Donovan FISHERY Washington Must Settle Newfound land Question SUBJECT II DELICATE ONE Unless Satisfactory Agree ment is Reached Grave Complications Feared. Washington, July 17. The ap proach of the first of August, marking the beginning of the new Herring fishing season on the coasts of New Foundland, is a matter of great con cern to the state department for it finds the fisheries controversy be tween America and Great Britain in a most confused and unsatisfactory shape. The Modus Vivendi entered into last year, by the terms of which and greatly against t'ne wish of New Foundlanders, American fishermen were permitted to ply their vocation unmolested off the shores of 'that isl and, expired with the close of the fishing season. Indications today are that it will be difficult to reach any permanent set tlement of the trouble and the whole effort of negotiations is apparently concentrated for the moment on drafting some form of a modus Viven di to guard against the development of friction that might have serious re sults. New Foundlanders have suggested the reference of the whole subject of the conflicting tneaty to the Hague tribunal and our government is not averse to such an arrangement under certain limitations. ,. PREPARATIONS FOR CURRY INAUGURAL Executive Committee Holds Another Meeting and Progress Is Reported National Guard May Turn Out. Everything is going along swim mingly for the Inauguration of Cap tain George Cury as Governor of New Mexico, which will take place the lat ter part of this month or during the first week in August. Another meet ing of the executive committee having In charge the Inaugural ceremones, was held yesterday afternoon presided over by Acting Governor James W. Raynolds. Chairmen of the several sub-committees who were In attendance reported progress with the various preparations and Governor Curry's inauguration promises to be the most notable in the history of New Mexico. Republi cans and Democrats are uniting to make it such, and ,to welcome home the couquering hero, who during the past few years has been busy quelling the rebellious Pulajanes. The Inaugural ball, which will be the crowning feature of the inaugura tion ceremonies will be held at the Palace Hotel. Tickets for the affair have been printed and the advance sale indicates that it will be well at tended. The price of admission has been placed at $5. At yesterday's meeting of the execu tive committee it was suggested that it would be a good idea to have the New Mexico National Guard partici pate in the Inaugural parade. There is some doubt as to whether the mili tiamen would be able to turn out with out serious Inconvenience, owing to the uncertainty of the date of the ar rival of Captain CUrry. The Territor ial National Guard will be in encamp ment at Las Vegas during the week beginning July 21. NEWSPAPERS PAY $250,000 FOR LIBEL Sensational Sequel Follows Attempt to Organize Soap Trust in England. ' STATE TO HI"" Judge is Aim Ready to Instruct Haywood Jury EVIDENCE ABOUT JILL III Closing Scenes in Famous Murder Trial at Boise are Interesting. Boise, July 17. On the opening of court this morning, Attorney Richard son notified the State that the defense desired three of the state's witnesses to remain in town. Judge Wood an nounced that prior to the opening of argument he would notify counsel as to the main points in the evidence on which he would instruct the Jury. Counsel narrow, for the defense an nounced the sur-rebuttal for the de fense would be very short. O. M. Sackett, of Telluride. Colo rado, for fifteen years an employe of the Smuggler V.iion Mine, was the first witness of the day. lie told of his personal experiences in the big riot at the Smuggler Union mine In 1901, when he said ho and several other employes were compelled to rim a perfect hail of bullets in order to get to the mine. He said Vincent St. John was at the head of the Telluride Union at that time. The witness next told of negotiating with St. John to have the firing stopped and reached an agreement with him. Agreements Offered as Evidence, The witness said that as a result of the negotiations he had with St. John an agreement between Edgar A. Collins, assistant manager of the mine, and St. John, of the Union were drawn up and signed. The agreement was offered In evidence, and although the defense objected, Judge Wood al lowed it to be filed. The agreement, was dated July 3, 1901. In It Collins agrees to cease work on the mine for a period of three days and the Miners' Union agrees to refrain from violence for the same period. The witness then told of thff killing of Arthur Collins, superintendent of the mine, the disappearance of sev eral miners in the district and vari ous other disorders. He said the men were afraid to work and many of them were shot at on their way to the mines and it was because of these conditions that troops were brought Into the dis trict and martial law proclaimed. On cross-examination Sackett said that the trouble in 1901 lasted only three days Then the agreement went into effect and the matter was set tled. "Everything continued peaceful in the district until late in 1903, didn't it?" asked Richardson. "Well, there was sort of an trmed neutrality." Richardson read the witness and Jury another agreement entered into July 6, 1901, by the mine owners and the Union. It set forth that the dif ferences between the mine and Ihe Union had 'been amicably adjusted, the Union expressing "entire disap proval of the recent outrages" and agreeing not to molest union or non union workers. Richardson asked if this agreement was not in effect up to the general strike of 1903. "Ostensibly," replied the witness. Asks State to Close Its-Case. The witness justified the ction of the citizens In taking the law in their own hands and deporting the men. He said it was necessary and that they had the "law of self-defense" to sup port them. He said since the depor tations everything had been quiet and satisfactory in the district. At the luncheon recess the judge announced that if possible he desired the state to close Its rebuttal case during the afternoon. (Continued on Page Nine.) Liverpool, July 17. The attempt in the fall of 1906 to organize a huge soap combine in the United Kingdom which quickly camie to an end under the pressure of adverse public opin ion, had a sensational sequel in court here today when William Hezketh Lever, a Liberal member of Parlia ment secured judgment for damages In the sum of $250,000 and costs against the Daily Harmsworth News papers Malls and News for libel pub lished by them during the course of the controversy that followed the at tempt to bring about the combina tion. After a hearing lasting two days the defendants today suddenly withdrew their plea of justification and agreed to pay the amount demanded. Lever it is declared, took a leading part In the efforts to establish the soap com bine. '- NORTHERN PACIFIC FLYER WRECKED Engineer Found Dead at Throttle In Overturned Locomotive No One Else Kilted. Butte, Mont., July 17. The North Coast, Limited, west bound, the crack flyer on the Northern Pacific Railway was ditched :hree miles east of Gar rison this morning. Two baggage cars the smoker and day coach left the rails. The locomotive overturned, and in the cab, his hand upon the sand pipe valve and the brake lever, was found Engineer James Graham of Butte, dead at his post. MISSOURI AND KAW RIVERS STILL RISING. Kansas City, July 17. The Mis souri, and Kaw Rivers continue to rise slowly but aside from, a few "washouts and the flooding of low lands no serious damage has been reported. f. : i