The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1855-02-13
From the Detroit Evening Tribune.
EDITORIAL CORRESPONDENCE.
Frauds Of Locofoco State 0fflcers---Nearly %60,
600 taken from the Treasury--The Conteste(
Seat and /" Democracy" backing out.

LANSING, jan 81, 1000
In my letter of yesterday, promised to ex.
pose some rather startling frauds that had
been perpetratcd upon tho public Treasury by
had received the verdict of the people at the
late election, and indeed upon tho very eve of
the expiration of their Offices. They seemed
10 have asted upon belief that II was the last
chance to make "grab" at the Treasury, and
they resolved 10 improve IL to the full extont OF
their power, and upon the most flimsy pretexts.
But will give the facts in support Of this sup
position, and leave the readers of the Tribune
to Judge for themselves, whether do the late
State Officers Injustice in charging them with
the most stupendous frauds upon tho Treasu-
ry. These facts are as follows:
On the 18th of March, 1888, John Norton.
Jr., then Cashier Of tho Michigan State Bank,
and "Fiscal Agent of tho State" negotiated
loan with the Phoenix Bank Of New York, un-
der the authority of Gov. Mason, amounting
to Gle, 400. This loan was made, as II Is at
lodged, expressly on the faith and security of
State Bonds, which NJ. John Delafeld had
been authorized by Gov. M. to negotiate, but
which he subsequently, upon the written order
of Gov. NJ, surrendered to Theodore Romeyn
on the assurance that the latter would hand to
him, (Mr Deafed) the amount of the loan
which the Phenix Bank made to Norton as
the bank was thus left without any security
for the loan. This advance was made by the
Phonix Bank in the shape of draft for @s.-
500 on the Farmers & Mechanics Bank Of
Detroit, and n draft on ths Bank of River Raj
sin, for 81 300, making up the sum OF &c.
The claim was presented against the State
by tho Phoenix bank, as l understand through
it's Attorney, George v. N. Lothrop, Esq, and
is as follows:
"John Delafeld, Agent Of the State Of Michigan
1888, debtor Phenix Bank, New York,
March 10. for draft on Farmers and Me-
do do Bank Of River Raisin 1900
Both delivered to S. Norton, Jr., Cashier,
&C., by order of Governor Mason, being
advanced in State Bonds" ".,;..;:.:.... eie,4co
With interest, from March 18th, 1888, to
the time was allowed.
In support of this claim and the principle
evidence presented to the Board of State Au-
ditors, aside from the arrangement or state
mcnt If the claimants attorney, is an affidavit
made by John Deafed, now dead, in ls40,-
nearly fifteen years ago. Yet the claim was
allowed, with interest, amounting to BIS, 200,
making tho whole sum allowed S35 500! Tho
readers Of tho Tribune will recocct tho outcry
raised by the Locofoco press all over the coun-
try, because tho Administration Of Con. Tay-
lor allowed interest on an undoubted ella i'm
long before adjusted and recognized by the
Government The howl thoy set up about
that act has scarcely died away. But here
the late State officers have allowed interest for
| seventeen years on claim Of doubtful legality
and justice, even as tho case is presented -
But this is not The wor.t aspect of this matter
| The loan tcas not made 10 the Stale; and still
worse--it turns out that Me ,0hoie claim ,oas
paid gears ago, 10 the Pheair Bank,
On the q! of October, S36, the Phenx Bank
| had a credit for draft on the Farmers and
Mechanics Bank Of Detroit for Ss 500, and on
the 30'h Of October, 1910, tho Bank wns cred
tied with the further sum Of $500, being for
interest thereon. On the same day,-Ocio-
Der 30th, 1910, tho Michigan State Bank con-
veyod 10 the Phoenix Bank 1897 40-l00 acres
of land, estimated at 1866 SO, and also Paid
to Charles Henry Stewart, she Attorney Of
said Phenix Bank, who madc the se,tl ment,
$500 in Illinois Canal Scrip. and received from
said Stewart draft of the Bank of River Raj
sin, for Sl55.53 to balance the account. The
draft for the last named sum was on the Mich
igan State Bank. Thus it will bo seen that in
1910 the Phenix Bank was paid tho full
amount Of its loan of $500, with interest,
being the draft it gave on the Farmers and
Mechanics Bank as part Of the GIG, 400 loan |!
II this money was really loaned to the State
of which there is no oviden co, tho claim was
| fully paid and the debt discharged fifteen years
ago, and there was not shadow Of claim even
against the State Bank, much less against the
State, on the part of tho PhGnix Bank, for
this amount. Tho books of tho State Bank af
ford conclusive evidence on this point
! Whether tho lands conveyed to the Phoenix
Bank were worth what they were taken for by
their attorney, is matter with which tho State
had nothing TO do. If the Bank made bad
bargain it was its misfortune, and not the fault
of the State, even il the .oan was ever made 10
it. Tho Bank received what IL considered q
| full equivalent for the Ss500 II had loaned to
| John Norton. Jr., for tho State, but in reality
| for the Michigan State Bank.
| Whether tho amount of tho draft OH tho
Bank Of River Raisin was paid, tho evidence is
not quite so conclusive as that tho S8, 500 were
| But gentleman who resides in Detroit, of the
very highest character for integrity, who was
| then connected with the Bank Of River Raisn,
is confident that no settled the draft on this
| Bank at or near tho same time that The othor
draft was paid. There is little doubt, there
fore, that the whole sun Of Sl6,400 was paid
to the Phoenix Bank years ago. Thus it will
be seen that the State has absolutely beon
swindled out Of the large sum Of THIRTY
FIVE THOUSAND SIX HUNDRED DOL
LARS by the late Locofoco Board of State Au-
ditors for debt originally due to one of the
Banking Institutions of tho State. and which
the State was under no moral or legal obliga-
ton to pay. had ii not already been satisfied
| by the Bank TO which tho loan was made.
II will strike every one with surprise. that
this claim should havo remained unpaid for fif.
teon years, all of which time. except single
year. the Locofocos wore in power. and then
have boen allowed and paid almost tho last day
| they were TO remain in power. If it had poss.
essed any merit, why was II permitted to re.
main unsatisfied for so many years; or having
so long refused tn pay it, why was II smugglel
through at so late day. If they had not
known II was fraud, why were they afraid to
trust it with their SUCCESSORS. then about TO
come into power, or having determined to al
low il, why did they not do so In season to
have II como into their biennial Report Are
not these facts. taken IN connection with the
nature of the Of tho claim and it's long stand
ing, strong presumptive evidence that they
knew the whole thing TO be a qlaring fraudi--
They understood that by keeping IL out of