I am sure you have heard of “Tricky
Dick” Nixon, and probably “Slick Willy” Clinton, and maybe even
Martin Van “Ruin”, or “Ruther-”fraud” B. Hays. I certainly
believe Mitt “47%” Romney should have known about “Ten Cent”
Jimmy Buchanan - who opined that a dime was a fair daily wage, and
vetoed new colleges because “"there were already too many
educated people -” because if Mitt had, old “47%” would have never
said such a stupid thing...in public. But I'm willing to bet you have never
heard of James William “Honest Dick” Tate, even if you are from
Kentucky. But you ought to have.
Sans his nom de plume, there was
nothing special about James Tate (above). He was of average height and
average weight. His forehead was made large by his retreating
jet-black hair line. But his bushy “coffee stainer” mustache was
the fashion in his day. However, it did hide a down turned
mouth, that perhaps hinted at the tragic death of Howard, his three
year old son. Still his daughter, Edmonia Lloyd Tate, survived, as
did his loving wife Lucy Hawkins Tate. Then in 1867, after 13 years
in various appointed positions in Kentucky politics, the 36 year old
James Tate had so “materially contributed, by his personal
popularity, to the great success of the Democratic party" the he
was nominated and elected State Treasurer.
The Treasurer was responsible for all
funds collected in fees, permits, taxes, fines and rents, managed the
state's bank accounts, paid state employees and dispensed benefits
and verified and paid all bills. And despite it being about now that
James acquired his cognomen, I cannot escape the suspicion “Honest
Dick” Tate was not chosen for his probity, but for his
“popularity”. In fact it was Democratic Party supporters who
actually bonded him, pledging their wealth as a guarantee of Tate's
“rock sand honesty”, as required by law before he could assumed
the position. But that guarantee was contingent upon other state
officials verifying “Honest Dick's” work And there is no evidence
anybody ever actually did that.
To the public, James “Honest Dick
“Tate was an average man, making an average salary, just $2,400 a
year (barely $60,000 today), with perks worth perhaps a thousand
dollars more. Jame's average unassuming home, at Second and Shelby
Streets in Frankfort, cost all of $6,000 (about $100k today). But
James was moving in powerful circles now, re-elected every two years
for the next two decades. He was the “Treasurer for Life”, and it
became known in Frankfort Democratic circles that should a politician
need to borrow a few thousand dollars, as Governor Preston H. Leslie
did in 1872, then “Honest Dick” would be happy to accept their
IOU, and not be too bothersome about demanding prompt repayment. So
amiable was “Honest Dick” that he had a safe filled with personal
checks, cashed for Democratic friends, but never submitted for
reimbursement.
James Tate also chased his own
financial Eldorado, investing in land in Indiana, Virginia and
Tennessee, along with several coal mines in Kentucky. However the
land he bought does not appear to have appreciated in value, and the
mines never seemed to produce enough coal to justify their purchase
price. James also tried speculating in stocks and, it appears, when
those investments failed, more direct forms of gambling. And like all
gamblers, losing was just another excuse to risk more.
All of this was below the surface,
while in the public view the 1878 “Biographical Encyclopedia of
Kentucky” noted that “Honest Dick” Tate was “successively
re-elected by popular majorities, perhaps exceeding those obtained by
any other candidate for office in the State...it would seem that his
lease on the office might be regarded as a fixed fact.” And in
1886, John McAfee described James Tate as the “trusted and honored
treasurer” with an “unblemished record for probity and
principle...(James) is held in high esteem, and his integrity and
forbearance are regarded as of the highest order.”. But rumors
must have been floating about Frankfort, because during the 1887
campaign for governor, the perennial second Kentucky party Republicans brought the issue to the
surface.
Their candidate that year was the
ex-prosecutor from Garrard County, orator William O'Connell Brady,
and in what may have been the first Republican use of a “Big
Government” attack, Brady charged the Democrats had created
unneeded extravagant new offices, like Railroad Commissioners and an
Agricultural Bureau. And almost as an aside, Brady suggested the
time was past due for an audit of “Honest Dick” Tate's books.
The Republicans had no evidence, but the attacks were so successful
that after just one debate, ex-Confederate General and Democratic
candidate Simon Bolivar Buckner, invented a reason to avoid any
further debates.
Democrat Buckner defeated Republican
Brady, of course, but his August 3, 1887 margin of victory was just 5
points, compared with a 19 point Democratic win in the 1883 election.
Brady had made the strongest Republican showing since the Civil War,
and it scared the hell out of the Democrats. In the same election,
James “Honest Dick” Tate won re-election for the 11th
time, by a margin of 67,000 votes, far more impressive than Governor
Buckner's 16,712 vote margin.
It was that fall, that newly elected
Democratic State Senator John Kerr Hendrick, an ex-prosecutor from
Livingston County, called for a full audit of “Honest Dick”
Tate's books. But James Tate said a family illness required his
attention, and he needed a little time to get the records together.
Senator Hendricks thought Tate was stalling, but the Governor agreed
to put the audit off until the spring of 1888.
It was than that a change appeared in
“Honest Dick's” modus operendi. Some on his staff noted cash
deposits in the state's bank accounts slowed to a trickle. And, if
any had noticed, he paid in full a number of his personal debts.
Then on Wednesday, March 14, 1888, Henry Murray, a Treasury Clerk,
noticed his boss in the office vault, filling two tobacco sacks with
gold and silver coins, and an approximately 4 inch thick roll of paper
money. Murray assumed the Treasurer was preparing to make a bank
deposit. And even after “Honest Dick” was found to have slipped
out of the office unseen, no one was alarmed. A note left on his
desk, informed the staff he was going to Louisville for two days. It
caused little notice. Long time staffers knew better than to expect
the boss to return to the office before Monday.
But “Honest Dick” did not return on
Monday morning. A staffer dispatched to his home on Second Street,
was told his wife Lucy had not heard from him since he left for
Louisville, the previous Wednesday. Telegraphed inquires to the
Ohio River town said the Treasurer was last seen on Friday evening at
a bar, drinking heavily. Saturday, March 17th, he was seen boarding a train for Cincinnati. After that, James “Honest Dick”
Tate simply vanished. Newspapers would call it the “Great Kentucky
Absconsion”.
The scene left behind told the story of
a desperately disorganized personality. Staffers said it had always
been that way. The account books seemed written in barely legible
hieroglyphics, filled with post dated transactions, erasures,
corrections, and indecipherable notations. The safe contained women's
beaded bags and purses, and a satchel belonging to a dead infant. It
was also brimming with $150,000 in IOUs and “cold checks” from
$5 to $5,000, some going back ten years. No hard cash was left behind
except for a bundle of $1,000 in $10 bills, found under the safe. How
long it had laid there in the dust, no one could say.
In the afternoon of Tuesday March 20th,
1888, the Speaker of the Kentucky House of Representatives, and the
President of the state Senate, the Secretary of State, received the
following message: “It having been learned this morning that said
James W. Tate has been absent from his office since the 15th
instant...there is in all probability a large deficit in his public
accounts...we by virtue of the authority vested in us...hereby
suspend said James W. Tate...” It was signed “S. B. BUCKNER,
Governor”. From this day forward, “Honest Dick” Tate would be
referred to as “The Defaulting Treasurer.”.
George Willis, a Democratic spin doctor
was left spinning. “Such flash of lightning and peal of thunder as
was never heard before or since came out of clear sky and rocked the
state and the Democratic party as nothing had done since the (Civil)
war." Kentucky's state historian noted that “almost everyone was under suspicion
either as an accomplice of Tate or because of owing the treasury
money, and those who had borrowed money from the treasury were
numerous.” Briefly, and perhaps for the first time in Kentucky
history, the politicians were ashamed. The Governor made a personal
loan to keep the state afloat for awhile.
So inaccurate and confused was The
Defaulting Treasurer's record keeping that it proved difficult to
make an accurate account of the missing funds. And it was not in the
interest of those with checks and IOU's in the safe to make an
accurate accounting. A week later Governor Buckner announced the
missing tally at approximately $247,128.50 (almost $6 million today).
Within a week James “Honest Dick” Tate was impeached in absentia
on six counts and removed from office, and then indicted by a grand
jury. A reward of $5,000 was offered for his arrest. But the money
was never claimed.
Luckily, daughter Edmomia had married a man
named Martin, and was living free and clear in distant Kansas City,
so the abandoned Lucy could live with her. Wife Lucy had to leave Frankfort
because the state of Kentucky had seized the house and everything of
value within it, all Jame's bank and stock accounts, including 100 barrels of “Big Spring” bourbon
whiskey – another bad investment by the “Defaulting Treasurer”.
The house, the whiskey, the
investments, were sold at auction, and collected $50,000 (over $1
million today.) But that left the bond holders on the hook for the
remaining $200,000 (about $5 million today). They paid, but thanks to
a Kentucky Supreme Court decision in 1895, none of those who had
authored checks or IOU's found in the safe were required to
reimburse the bond holders. That judgement was marked “Not to be officially
reported”, and sealed. Most of the names on the IOU's never became public.
But what happened to the “Defaulting
Treasurer”, “the Great Absconder”, AKA James “Honest Dick”
Tate? He was rumored to be everywhere from Bremen, Germany, to
Toronto, Canada. Some said he had joined the expiate Confederate
community in Honduras, or Brazil, where slavery remained until May of
1888. In October of 1893 there was a brief flurry of excitement when
a newspaper reported he was “Said to have been seen on the “Cotton
Belt Train.” in Arizona Territory. But that proved to be mistaken
identity, since the New York Times had reported “friends who should
know” said he had died in China three years earlier. In 1894 Navy
Ensign Hugh Rodman, who had known Tate back in Frankfort, reportedly
had dinner with the “Defaulting Treasurer” in Japan, and said he
was not well. That should not have been surprising, since he would
have been well over sixty by then.
Edmonia later admitted to receiving
letters from her father, posted from San Francisco, British Columbia and Japan. The last one
read, in part, “I know I will be much denounced and by parties who
forget former circumstances”. He professed to being interested in
returning to denounce his partners in crime. In 1896 1,200
Kentuckians signed a petition asking the Governor to grant a pardon
to James Tate, so he could return and name names.. No such pardon was ever offered. With time new
scandals rocked Kentucky, and people forgot about “Honest Dick “
Tate. But we should remember our mistakes. That is how we learn.