Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-03-15


hls examination also, that he stocSh)ler the staten
Island and Whaling company and director the staten
Island Bank Il IS bat justice % say that Dr. Coo ac, that
h, Office 81 director was assumed with view Of guarding
The interest oi the State Such tie NIudic0n Of his
duct presented by himself and your committee nothing
ODD e facts disclosed relating TO tins matter, ty which an IT,
injurious o him could De drawn. OF the
matter DR.. Goes Official conduct, worthy of particular no.
tee, your committee cannot make favorable report In
order that exact justice may De him, your committee
VIII here quote hi~ words IN Pare OF The journal Of
the committee, VIII Jc found Ac JIswng statement Of Dr.
Coe. VIZ:
some three or four months after the renting
tory, AMI tcore had received payment for the Winchester
and Potomac bonds oef made Of 00o00 of In
diana i've per cent bonds, beor par the lowest plce the
commissioners had then sold them, and experimenting that
theF might be offered still lower il taken out If the
kef, and thereby inuie any further sales for the state, Oh
refusal them; Morris and Banking
company being large holders 0 bonds, aud therefore
tef,ted preventing depression ice applied 70 them
70 take them out oi the markets they however refused TO
purchase them for cash at that price which they
offered but agreed, if coul make them ced,
that they woad 70 facilitate the operation, discount the
paper d te Necunty was md 5uoted shortly after TINS,
received ptauce time the house OF Brown Of
Baltimore for Potomac and Winchester bonds which
-l discounted OF the house ~ Brown Brothers IN New
York. ana purchased % of these bond, for the Staten Island
aud NuanE npany, and think exh nged them for those
previously pu ,,cs-i5u not they sub,li
nicd beng % the denomination ana value, bnt my
present belief that they exchanged There still
manned hty 81 the bombs offered fr sale and by dut 90
several nrS taous eventually procured for them pant On
cash. 4aa l'e iehaiief ~ pPe Wei secel al about SIX
iu. 81 winch ftc Morn, tan and Bsunz company
V'tH'd pm 10 ue bonds; bat 10 oieuuE tat> once,
ani only Iecoect OF using twenty State bonds 2oooo
collateral security lew days while making The eNchan-
-, accessory i'r the Gtclc1 transactions the stock beng
taken different parcels which felt u,tiie Ia ordering,
ii being -ecesay 20 facilitate the taking Of these bonds ou
tie m4raet anl much m ne as believe fgr the interest
Of the State than my addull profits and had these twenty
hon been by any means lost myself aud securities would
have been abludanty responsible 20 The state"
Dr. Cae proceeds, little further down the page, in aluS0n
T. thee transactions that he d make something individually
hut without possible prejudice o. the State for he asked
te erou oegias 20 take less than bis first olcr Your
committee have gwen tins extract more fully m order that
Dr. Goes yinicaton of himself should the more distinctly
appear the face of the report The law of the is
clearly the Doctor tar0u h the whole Transaction.
does not permit agent @ make profit % himself By any
dealings IN the uolertv committed - his charge lie j. not
permitted 10 place himself situation IN which his indi-
Nuh inefes Is opposed TO the interest OF his principal AMI
H he max poht ty ans operations connected with the sub
Jet matter OF las tuSt. he is compelled 10 account TO hs
principal - apply these principles 10 this elSe, d. Zoe
was agent ot the State maze sales If her bond, the
eastern markets the best terms practicable Il Is evident
that d" t1e purchase % these Ste bond, with his individual
means his interest was brought IN conflict with the interest
OF the STATE The charge Of keeping up the cred of the
state was committed 10 hlm and hc evidently bal The power
OF depressing the stocks market il be wished
ever uc became buyer of State stocks it became his
The law doe not permit this conflict If interest
and duty; aud whatever pot Dr. Zoe may have made In the
uauNeOn enures % the benefit OF the state although
he had employed ouly his mitviual means ~ The uanSac-
ton Tins however, not tie Dr. Coe cone>ses
tt $4,000 worth oi tie state property e. - bonds Were
employed collateral security aii hin eecug these
operations by which be says he made some proht Ii the
'plt 4" the state was enp yed y and hm IA the transact
un on what principle can he Justify himself In not dividing
Pio with The >ate The amount OF profit made by d. Ce
IN ms transaction does not appear ON the face OF his
anu Nour committee did not feel Justified IN pressing
voluntary po6t
ale on The principle that 10 person he compelled To
testify tn,t himself. The circumstance OF its being with
held induces Your commit believe that the profit
e.n'lerle t., and TIN, conclusion l. JUSTIFIED By The evidence
o James rarhgon Esq. u whom Dr. Coe said he had he
an ut 7looJ9 by so operation Al state stocks, bonds and
mortgages Whether h.' was was not the tiansae-
uoa, yoar committee cannot determine. There other
operations o Dr. Coo stocks and bonds which
mittcc dsappovc, more minute notice f which Dot
deemed 'e>ay as nothing connected with the Transactions
10 any h5ty. Bat your committee ca,uot sanction the
rncse OF fund commissioner ing msrkct. amy
fetcN ~aeve, ana buying NJ state bonds with iud vdual
ne MS The temptation 20 Use the aenS oil tie State, aud
10 A3u'e her credit Tor niya GIN Is 50 great that It CAM
not but result 10 the gro>,est abuses It be necessary. TO
sustain the credit of the state, fn the fund
t mp hang ndS the purchases should be- male with the
funds % he State, aud The prdt acceu4td for Your
miee recommend tie hinS of bun ehanrery Against d..
zoe compel ann 70 disclose on oath the amount OF Tont
which he male all ctons compel him 10
account ioE the same t. the state Treasury.
Your committee deem him cen,uraa e fr rash and PR
piry. au to tine Enc County Bik This se appears 10
have been made without the Of his colleagues ana
against taet ld, nent The bonds delivered before
the size wa> contained by them. This circumstance rea-
dctcd A. doubtful. IN the OPINION II Dr. Goes colleague.
whether the bon could trgliacd and made il eNre,ent
teir Jnds neai i1r them 10 confirm The slie The sale
suited Me,>gs Fauinsfoa feared. in heavy
' 10 The State In mitigation Of TINS censuge, your COM
miec en- lsi 10 state that TINS sale made for very
- prize; BAT D. Coe 10 his elgesucss 90 effect g,ol
sale, was Mt sufficiently ccumsqcct the soyeucy Of
the purchasers and alelutcv Of security
In order show Or. Coe, AMI his spccula
uoS whist fund the following additional facts
are gwen a. they appear from the testimony.
pans 49, t'es term Of service the Lawloncebugh AMI
lndin1p9s rllroad company DESTROYS 81 converting
int csh the bns Of the State. which they he for $780,
Ooe. and of that pur despatched Nj Omeg Tuu>ey,
New York That gentleman. finding n 10 De almost mpo,-
soe 20 cash the bonds, ewing % tie great scarcity Of money