The Placer herald., 1857-02-14

only alternative, after the refusal of Mr..
McLane, which presented itself and was en-
braced from necessity. The dangerous prox-
unity of the Legislature required either a re-
turn to the vaults of the absent funds, or
something which would represent it.
1t will be remembered that in the outset
of the inquiry, the impression was studous
ly sought to be created that the house of
Wells Fargo u Co. had undertaken the
payment of the money, and Legislative
committee appointed TO examine the affairs
in the Treasury made their report under that
impression. The clerk who made the entry
upon the cash book as before stated, made
the same upon the authority of a memoran-
DUN in the handwriting of Mr.. Rowe, who
seemed to be of equal authority in the office
with the Treasurer himself That entry was
not changed until after the publication in the
newspapers of a copy Of the bond given by
the Pacific Express CO. to the Treasurer, and
then the words "Wells, Fargo II Co." were
erased, and the words "Pacifc Express"
written over the same. 1t is evident that
the Treasurer and Mr.. Rowe were both de-
sirous that such impression should be crea
ted, as it would be calculated TO allav susp-
| N'oi otiti, ~ icdot, pi icSctNc coHllutHcO dS 10
the safety of the funds, leaving the single
point of the propriety Of the premature pay
ment to be defended.
Mr. Rowe has been rigidly examined bv the
committee, in regard to the large sums of
money used by him for the last four or five
months, and particularly the amounts depcs
tied with Wells. Fargo & Co. in December
and January. He generally drew out as fast
as he deposited, so that no large balance ap-
| peared TO his credit for more than a few
days. But his memory does not enable him
to state from whence any Of the money came
or whittier it went. This singular lack Of
very useful faculty, and the private nature
of his financial operations, are the only cause
assigned by the new fiscal agent for not fur
nishng the committee with a satisfactory
solution of a question which naturally pre-
sents itself to wit: How clerk in the Treas
urers office, with no fortune and no credit,
became possessed of such large sums of mo-
ney, and gained such an influence over his en-
ployer AS to induce him to violate his official
contract with Wells, Fargo& 4 Co.. and con,
fer on himself trust which no faithful Off
Ger would conide to any but the most res
ponsible characters.
The act was the private act of the Treas
urer, the bond never having been submitted
for approval to the Governor The amount
of $l24,O0O was about eight thousand dol
lars more than was needful to pay the inter
est and the additional three per cent. for
exchange was entirely gratuitous ANY re-
sponsibIe banker would have furnished it at
ninety days, at par.
We are, therefore, of the opinion that the
Treasurer is a defaulter in the further sum of
$l24,O00 which makes, with the sum of
S73,5S0 before mentioned, together with le-
gal interests, the sum Of two hundred thous-
and dollars in round numbers
The discouraging conviction is forced up
on US that the July interest will not be paid
unless the Legislature depends upon some
other means than the ability or faith of those
to whom the Treasurer has trusted 1t is
with much reluctance that the Committee
express tins opinion; but it is better to know
the worst and prepare to meet it, than
to conceal from our minds unpleasant reflec-
tions, and procrastnate our efforts to provide
against future, but certain evils.
The evidence, upon another subject of in
quiry which engaged the attention of the
Committee, confirms the truth of the opn-
ion that the money in the vaults of the
Treasury has been used outside for purposes
of private speculation. When a committee
of both Houses of the Legislature, on the
18th January, found, by actual count, the
sum of one hundred and thirty thousand dol
lars in the office, it appears that the Treas
ertons Of his friends, and especially to Mr.
| e. e., -. a. l.
through that ordeal. On the morning of
the 18th, he borrowed, for few days, five
thousand dollars of John NJ. Rhodes. ban
ker of this city, which he placed in the Of
! flee Of Wells, Fargo & Co. to the credit Of
Mr. Rowe. Upon the credit of verbal
promise of Mr. Rowe that he would furnish
the draft of the Treasurer upon Wells, Fargo
& Co. for twenty thousand dollars ($2O O,OOO)
Mr.. Mcneil, cashier of that house in this city
upon the same day, placed that amount to
the credit Of Mr.. Rowe, who ordered the
amount of $4,000 to be sent to the Treas
urer's office, which was done some time dur
ing the fore part Of the day, Ohe 13th,)
| Mr.. Rowe obtained from other sources about
ten thousand dollars more and, drew the
same from the bank of Wells, Fargo ~ Co
the same day, but it does not appear what
was done with this latter sum- Mr.. Rowe
declines to explain what use he made of it,
which leaves it but reasonable to suppose
that it also found its way to the state treasury
on that day. The sum of twenty five thons-
and dollars is proved to have been delivered
at the Treasurer's office, and remained there
about four days, when it was returned to the
person from whom it was obtained. The
draft which Mr.. Rowe promised Mr.. McNie
and upon which the tive ty thousand dollars
was obtained, was given to him on the 18th
for the sum of fifteen thousand dollars only