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


position o. the facts alone viii make evident
lie Is credited with commission Of I'VE per cent mon
sale Of 100000, supposed stocks S2o0.0
fits half profits a sale Of 2S0 bonds 9li.209
al his stock 53s shares IN the Morn, Canal l9nk
al par which at the tine not worth 10 ~
than iftcen cents ON the dollar, making di-
ference OF about S336S0
Also his note l0r about 29OyO
Here have it evident that DR. Coc received commissions
and profits aad benefits the Morris Canal Banking
company alone OF than 100000 ltnccdS 10 comment
II Is proper 10 add TO this statement the manner m which
tins testimony procured Dr. Or refused TO inform the
committee Of the amount of his stock III the Morris Canal
Banking company and Mr. SweetSer was just staItng ID
New York gent OF The fund commissioner, II thought
isisabe ak him 10 procure such abstracts from The
books # th company as would light this ect He
accordingly enclosed letter unauhentcaed an
script Of the books, from which these facts appear
Note Of Nr. EggiesioH 10 D.. Goes case
Since the report read Dr. Coe informs me that the
committee have committed an error an The statement OF las
with the NIorris Canal Banking Company lie
items in the account as stated 10y the committee alter the
first two said 4 be incorrect Tins may be 50; The
have understood the raule ot ac entres
The paper furnished q the Vagueness OF the ac-
count. and accordingly opnan not expressed IN an un-
qualified m1nuer ab the remaining i'cmS. They appear
t. 4s 10 0e correct however. = = E""l-ES1ON
CALEB b SMITH AND JAMES HARRINGTON.
Aou committee have examined hc statements II these
gentlemen They were both fund commissioners at the
time cf the sales made of State bonds TO the Ere county
Bank and Tie Pontiac railroad company, by winch the state
sustained They clncprcd i'm opinion relative TO The
un>ouudHes> OF the Fce-hanNlns system of New York,
opinion winch time has verified, anu united h opposing any
credit of our stocks any these institutions. The
sale made 10 the Pontiac railroad mny and Erie county
Bank they opposed in N uclpcnt stages aud but for the
discreet of d. Cue la delivering the bonds before the
sale confirmed they would not have sanctioned the sale
In MAXIM the sale 20 The Western Bank Of Ncw York your
committee have every reason y believe that they used all
due pceantc' 10 secure the dot The securities eAeed
by them Appeared ample, and many precautions APP
pear 10 nave been taken TO Si'il Inst l"lo'., - U
circumstances permitted any o these Were worthless az
the time, very EeuiluS fraud covered by testimonials
Oh the most imposing knd) must have been pracSed on
them la order o5ette the necessity OF moc detailed
report the various bv fund commissioners
credit your committee would here remark thar frequent loss
eventually ensue uud the system The ao,eness
# the law defining the duties OF the fund commits
there having been legal provision 10 prevent IT. uat the
winter OF ISL, throw the whole oa"' 81 these LOSSES upon
the legislative department 40 government. except ttose
es IN which losses might have en>uei a 'e
on fraud Of the fund commissioners. IT. great majority oi
where losses have eusued your think them
cagcabe 10 the system, not y the agents employed It's
out of the nature OF Things that sent 10 strange
ket - deal with Of whom they could have 10 previous
knowledge, entrusted with millions Of state bonds, which they
directed sell Time could esca being occasionally
imposed ON by false securities and fraudulent practices The
lessons which our eNnert nee on tin, subject has taught as
have been Too elly Learned % he Gi>lcaIdci Thee
marks intended 20 apply all those which
losses have been sustained under The system, without mis-,
conduct the part Of the officers engaged in ehectng sales
from either careleue,s fraud ia any Of their sales.
In Use case If Nj Smith the attention of The eomm tee
dawn erauify 500, made him by Nh Iancr OF
Madison. srltuity Of like made, by the saline
individual 10 DE-. &c While fund commissioner.
Your committee examination of the facts can find n
shadow # tending show that it lad c1uucx-
ION whatever with their official duties thai Il, any way
Influenced their official e. nluct The rru of II i, tn
merely question OF poiuctr. q 0e decided iv their
"e"cy, GA which your inniltcc nave 10 night - oX res
an opinion.
MIR SAMUEL MERRITL-Ths Gentlemen acted as
Bunk agent AMI made loan on cel 10 the Mous Canal
Banking company by which the State lost large If
money. We do not see any Thing in Mr. MGuas loan 10
Distinguish tbs transaction from other loans credit which
have turned ont unt runately. There 40 charges
against hn ciiecag his chaiactcr. We believe tlat he
acted lmpmienty in tai, got aln and without the
proper or securing the interest of the state lie
pears t. hive been much infatuated AID spell bound as
any OBJ our caste agents.
MIR II CTS u. SCOTF-Therc M charges arainst
this -entieman ro ht hc be * miaed. being unarei-
by prevented f.om attending At ludiuspo4>.
NIX SAAlt I'll HANNA->crvci as fml commissioner
iol >exeiai Nears here aie NJ char ses aSrsi HIM
JEREMIAH SULLIVAN, EsQ-Ine same remark Will
apply 10 tins gentleman
NICHOLAS MCCARTHY There is nothing this gent To-
mans case To distinguish II nom Aess.s. suysn aud
Hanna.
MILTON SrApp. FUND COMMISSIONERS. COM
mi tee deem npractcahle the conduct of -cn-
ucmen by the Tiyi rules ST rsht AID lew. The task would
he mtenuab'e for Tie enquiry obviously would rot le,
what has he done wrong, but what is there his Whole bu-
Slnes, correctly done. Ills complicated no goitou, with
Sherwood, D4uiogh. DO '.c Robin, ul others lolus
ct state property T. sustain ottcg >wndiug SHOPS has
ahieiaed letters and receipts lbs negligence ami confusion
ID bus nt>s, has improper connections with brokers' shave
aud sindiers facts t2o glazing To be denied. goIv
wrong 10 alW oI plliiln, aud too palatv idtiqlste
- invite attack our VIII occupy tho
at he Senat with laaoiCd Comment tae matet>
cu>auon and defence contained n tho report of GOV Ne
and the letters of Gencal Stspp bat deem Their uy
report such adit nj nl1nl they have been
t. procure tending To throw any light the subject
81 these OTIS. 1t appears from the testimony OF Wm.
Hendricks. that Sherwood introduced Us
Sapp, ani that Gen. Sapp recommended HIM a suitable
agent - use Gapols paper, the purchase Of treasury
hltN that ne ana hl> suJ-aSent, purchased e am uut
Of treasury pepper fr Sherwood. Ar
ant wltttSs teole the committee te>ue Tat be VA, IN
N,w orr short time le9re eNpl,SY CALI
polls concern. December l>io. with twenty fHn..
which lie wished % d.sp OF. Gen. Sapp advised h 90
sell tie bonds ior Gap ID, paper, afn- that be- ci
polls paper would Sewalt> parpl>e, he intended
u dlsiui>e the IN naua stewart iectet 4, ah
the Galp3is paper. bclici dat he
s'Fh' ueeaus a. was endeaNouiE TO circulate all = IT. pa
per thar possibly could Goa Sapp eteued 10 The report
o The bank AMI the character Of Is directory. t. WHICH
te"aIi ieitI1d his opinion - the insolvency oil TIE taak
ten Sapp then stated that be would guarantee The bunk
tie Inst u NAV. After CiHsins ID New Tx og1t ds
-lr. Stewart made Arrangement. bv soli +,
ond' On condition tlat he money. ten. >apq gave
him an ORDER on SteWats Sheiw ol, agent IN Madison
To- the Gallpos money delivery II the bonds. winch
stewart 90 10 Madison tie bank exploded which Detected
the contract Before ,ef, New York stated
en- app that b. should need about $1,000 as he hsd
C,ut> 70 pay IN ihaaepha, AMI that be would thank lw
II he Would ID pose III bonds him th he Kind
consented. lie dspse of them Drew, KotIr> y CO.
pad hm their draft Eve days sight on btnA in New
lotS, except $500 which paid Tic craft he
attempted l. asio>e Of IA Phladet hia could
count OF the doubtful character o Dew, Ro,uen Co.
and had to wait until the daft ed winch. pre-
Se'td wa pad Sher~ools character l. proven T. haze
been az that uHe By the witness u al arta
signing man. III stewart also heard Nev iotA.
Neisaen letween sherwood and 6tnefal II PIP from when
II eaEed that an Illinois COMMISSIONER had sod >lelNOo
SltuUu1 Of Illinois bonds for e lal II Gath
paHer under agreement would buv Illinois
AMI SAID commissioner Ihai tie commissioner had u,
home and reported The sale TO tie Governor s q bond
al PAT H. Sherwood appeared much dispeasei with ih'
commissioner and G,neIal Sapp remarked IN ocular maa
ner, that the Illinois commissioner a-csl AID .4