Page:History of Iowa From the Earliest Times to the Beginning of the Twentieth Century Volume 1.djvu/425



that demanded prompt action, and on the 3d of March the Governor suspended James D. Eads from office and appointed as his successor, Joseph C. Stone, of Johnson County. He was not able to take possession of the office, as Mr. Eads refused to acknowledge the right of the Governor to remove him and retained the books, papers and funds. At the April election the Democratic candidate, Maturin L. Fisher, was elected over the Republican candidate, L. A. Bugbee, and on the 9th of June following he entered upon the discharge of the duties of the office.

The Superintendent was the custodian of the school funds of the State, and it was his duty to apportion them among the several counties and make loans to individuals. In his report to the Governor, made in November, 1857, J. M. Beck says:

“I found in possession of the Auditor of State fifty-four notes which were received from James D. Eads, late Superintendent of Public Instruction, as notes taken for loans of the five per cent. school fund, amounting in the aggregate to $155,199.99. Thirty-eight of these notes were accompanied by mortgages as security thereon. Fourteen of these mortgages had not been recorded. One of the notes was given by James D. Eads himself for $20,000, secured by a mortgage on lots in Fort Madison upon which were mechanics’ liens and another mortgage given by him to his sureties on his official bond. Forty-seven thousand three hundred and fifty dollars had been loaned to the members of the syndicate in Des Moines, which built the temporary State House. Their notes were secured by mortgages on lots and lands.”

After a careful examination of such securities as could be found, the agent reported a deficit of $65,150.78. He says:

“I made examination of the books, papers and vouchers in the office of the Superintendent of Public Instruction. I found that no books of account had been kept by Mr. Eads. He appropriates to his own use in one case $20,000, calls it a loan to himself, hands over as vouchers therefor a note signed by himself, secured by a mortgage on property worth about half the amount. To recognize this note in any other light than evidence