Monday, Jun. 04, 1951

Who Is Ted Smith?

The city editor of Oklahoma City's Daily Oklahoman read a Page One feature story in the Times, the Oklahoman's afternoon sister-paper, and smelled a "helluva good story." The Times (circ. 114,870) told about an elderly couple whose little country home had been sold at a public sale for $1.13 because they owed that much in taxes--which they didn't even know about. City Editor , Ralph Sewell showed the clip to Reporter Bill Van Dyke. "Bill," said he, "they didn't name the so-and-so who got the property. Go out and see if you can dig him up."

That was in July 1949. Van Dyke not only dug up the real-estate dealer, but a story that went on making local headlines right up to its payoff last week. The dealer was one R. W. Garrett, who hurriedly decided to let the elderly couple have their property back for $55 plus $3.13 "expenses," if only the Oklakoman (circ. 143,894) wouldn't print his name. "This sort of thing happens every day," Garrett protested. "It's not my fault the sheriff didn't serve them notice." The Oklahoman printed Garrett's name, then joined forces with the Times to search through county records to see if what Garrett said was true. They found that several $3,000 houses had been knocked down at tax sales for around $2.50 each. Said a Times editorial: "It Doesn't Smell Good."

Mystery Man. The more the Oklahoman and Times dug, the worse it smelled. The Oklahoman's court reporter, Ray Parr, teamed up with Van Dyke and Timesman Henry Burchfiel to sift through a 20-year mountain of records. They soon noticed that a "Ted Smith" had bought much of the tax-sale land, though nobody in town knew any real-estate man named Ted Smith. When the reporters checked up on notaries who had witnessed "Ted Smith's" signature, they flushed a well-to-do printing-company executive named W. C. Bonney. He admitted he had used the name "Ted Smith" for "business purposes. "Then came the biggest headlines of all: Printer Bonney had kept part of the "Ted Smith" land, but had deeded many of the lots over to the retired county treasurer, William F. Vahlberg, whose office had run the tax sales.

Nine Times and Oklahoman reporters combed through 360,000 names on the tax rolls to find out how much property Vahlberg owned. They discovered 183 lots in his name and more owned by his relatives. At recent tax sales, Vahlberg had bought 116 lots for sums ranging from a few cents to $100.

Grand Slam. When a special grand jury was impaneled, the papers provided it with some vital details. Deputy sheriffs who were supposed to notify taxpayers of delinquencies often reported back "can't be found," without really looking. The published notices of tax sales, required by law, frequently were put in obscure newspapers at the other end of the county from the unsuspecting tax delinquent. Finally, Vahlberg was charged with forgery growing out of the use of the "Ted Smith" name and went to trial. His former deputy testified that Vahlberg went over tax-sale lists before public sale, and instructed the deputy to sing out "paid" or "out" when he came to a piece of property "Ted Smith" wanted. Vahlberg quaveringly said it wasn't so, but he could not explain a personal check he had written to pay some "Ted Smith" taxes. Last week the jury brought in its verdict: guilty. The sentence: five years in the penitentiary. (Bonney and his lawyer will soon go to trial on charges of conspiring to commit fraud.)

More than such a clear-cut reward, the Oklahoman's reporters treasured a note sent by one of the redeemed-property owners to Reporter Van Dyke. "Congratulations on your nerve and efforts to expose this filthy tax resale. Thank God for a real heman, fair and honest ..."

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