A $100,000 Hole in the Railroad's Land Books

TACOMA, April 19.—Ever since his death there have been rumors that the late Paul Schulte was in a queer position as general land agent of the Northern Pacific Railroad. The friends of the dead man have been inclined to discredit such reports, though an investigation of his accounts has been in progress for three days. It is known now that there are indications of a shortage in the land accounts, and some of Mr. Schulte's close friends have hesitatingly admitted that his affairs are in a much more complicated state than was supposed at the time of his death.

What the shortage will amount to, if it turns out to be one, cannot yet be told. It will take months to go over all the figures in the land office accounts, as it will be done in a very careful manner. Land Commissioner Phipps has two experts, whom he brought from St. Paul with him, going over the books. It is significant that Mr. Phipps has remained here personally supervising the investigation, while his brother and others have gone on a trip to Grays Harbor and Portland. When seen tonight Mr. Phipps refused to talk on the subject.

It was reported this evening that up to 4 p.m. a discrepancy amounting to $100,000 had been found in checking up the actual land sales with the land contracts and cash receipts. The truth of this cannot be definitely ascertained, because the gentlemen in a position to know will not talk about it. An investigation of the accounts of the Yakima Investment Company, of which Mr. Schulte was president, is in progress.