Buffalo County, Nebraska - Chapter 54: Defalcation of James Van Sickle, County Treasurer H. C. M'new in Shel, 1916

Earns A Precarious Living By Hunting And Trapping

"It was during the year 1879 that the county treasurer, James Van Sickle, proved to be a defaulter in the sum of $14,000. This defalcation has never been settled, and a lawsuit is now in the Supreme Court between the county and the last term bondsmen, who claim that a portion of the defalcation occurred during the previous terms. What will become of it is hard to say. Probably a long law suit, putting the county to a great deal of expense will be the result. The last term bondsmen claim that they should not be held responsible for all of the lost money, as there is positive proof that a portion of it occurred during Van Sickle's second term. The commissioners settled with the treasurer before beginning the third term, and he counted out the money, but it has been ascertained that the money was only secured for the occasion of settlement with the county. Such was the game practiced by some of Kearney's leading citizens."

It is not pleasant to write of the history of the defalcation of James Van Sickle, treasurer of Bufifalo County. James Van Sickle was not a deliberate and intentional thief. He was as honest in his intentions and purposes as were many of the people of Bufifalo County at the date when he served as county treasurer. He was of kindly disposition, generous and trustful to a fault, one who found it well-nigh impossible to say "No," to a personal friend. It was at a time when a large majority of residents of the county were sorely pressed for ready money to meet outstanding indebtedness and to establish themselves on their claims and in business. As a defaulter he was largely a victim of circumstances and conditions.

money, both parties knowing it was the money of tlie county. It was not deemed so great a sin to misappropriate pubhc funds in that day and generation as in the year 191 5.

Interest on pubhc funds was deemed the legitimate office income of a county or state treasurer. At that date the Union Pacific Railroad Company was evading the payment of taxes in Buffalo County on some one hundred and forty thousand acres of its land within the limits of the county.

This company had secured a decision from the courts that, as the general Government had not issued patents for these lands, they w^ere not taxable, and yet the company had mortgaged these among other of its lands for $10,000,000 and sold the bonds on the general market, the lands being the only security.

To illustrate how flagrant and unjust this decision of the court was to taxpayers in Buft'alo County let us cite a specific instance. Section 7, town 9, range 13, in Shelton Township, was railroad land, and all of this section except the east half of the southeast quarter had been purchased of the railroad company by settlers who were paying taxes on same. The state auditor notified the clerk of Buffalo County to strike from the assessment rolls of the county the east half of the southeast quarter of section 7, town 9, range 13, the same being not taxable.

.V homesteader in Buffalo County had seven years in which to make proof on his homestead and secure a patent from the general Government, and yet the courts had held that at the end of five years the lands of a homesteader were liable for taxation (and homesteaders were compelled to pay taxes on homestead claims) at the end of five years, although they did not make final proof and secure a patent until the end of seven years. These instances are not cited as any justification on the part of James Van Sickle, county treasurer, or of men who borrowed knowingly of him of county funds, but simply to illustrate public conditions and public opinion as to use of public funds.

Promoters induced Treasurer \^an Sickle to invest of county funds in schemes which seemed to promise profitable returns, but which proved a financial loss. As an instance, take the promoter's scheme to establish a stage line from Kearney to the Black Hills in which was invested county money to build bridges and furnish stage-line equipment. Stage lines had been established from Xorth Platte and Sidney, and it was hoped to reap a profit l)y making Kearney an outfitting point for such a stage line, but as a financial venture it was a failure.

James Van Sickle was in no sense fitted to be trusted with the duties of so responsible an office as county treasurer. Fie was not eflicient as a collector of taxes ; he was not competent as an accountant or a keeper of public records. He was an easy dupe of designing individuals. He was compelled to give a personal bond (bond signed by individuals - friends) which tended to place him somewhat at the mercy of dishonest bondsmen. Fle was modest, unassuming and exceedingly popular with the mass of the people. He was an active member of the Grange, and the Grange movement being in a flourishing cTDndition in the county, he used his Grange acquaintance and influence to further his political aspirations. (The meddling of politics and politicians was a death blow to the Grange movement in the county.)

The trip had been arranged for, the other members of the party in waiting, the team with the wagon loaded with supplies of food, ammunition and camping equipment stood waiting on the street of the county seat, when Treasurer Van Sickle, who had been engaged during the day in his office, entered a bank in which he deposited county funds, took from pockets in his clothing rolls of county money, placed it uncounted on the bank counter, requested that it be counted and he be given credit- - and at once departed on his hunting trip, to be gone weeks.

It was the duty of the board of county commissioners to settle with the county treasurer. In a settlement during his last term of office it was notorious that the cash to make settlement with the commissioners was hired for the occasion of an Omaha bank, brought to the county seat, counted out to the members of the county board as county money, at once placed in a handbag and returned to the Omaha bank.

County Treasurer James Van Sickle was not competent to originate and carry out a scheme of this character, and hence should not be held wholly responsible for the shortage of county funds which occurred during his term of office.

No steps being taken by the county board to proceed against the county treasurer for defalcation in office, his removal came about in the following manner: The Union Pacific Railroad Company at that date paid a major portion of county taxes. It made comparatively little difference to the county whether individuals were prompt in payment of taxes or not. Should the Union Pacific refuse to pay its county taxes, the financial affairs of the county would be at a standstill. A taxpayer of the county wrote officials of the Union Pacific company, stating that it was well known that the treasurer of Buffalo County was short in his accounts, that the county board seemed not disposed to take action, and requested the company not to pay its county taxes, then about due, until some satisfactory arrangement could be made to safeguard the county funds. The result was that John G. Taylor, an employe of the Union Pacific company in the auditor's department, was installed as deputy in the county treasurer's office, having full charge of the office, and served to the end of Van Sickle's term. It appears that the prosecution against Treasurer Van Sickle was abandoned. The county records do not seem to disclose that the county recovered any part of the shortage from either Van Sickle or his bondsmen. Some of the bondsmen offered to pay whatever the court found them holding for, but it appears the court could not determine the amount.

It did not appear that Mr. Van Sickle profited in any marked degree by reason of his defalcation as county treasurer. He lived for many years after retiring from office, earning a precarious living by hunting and trapping.