The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1857-08-28
~} FINDLAY, O., FRIDAY, AUGUST 2s 1851

The reports OF the Joint Committee
and OF The Auditor OF State were made
after the passage OF the Act OF 1856
which required but single examina
ton between the LIST Of September and
the LIST Of November in each year.
Tho supplemental Act of March 3Oth,
1857, required quartely examinations
by the Auditor and some one appointed
by the Governor. The present repor,
is made in pursuance Of the last named
Act.
CONDITION OF THE TREASURY, JUNE l5TH,
The underligned, together with vii.
liam Demnison, ESQ.,, were present al
the opening Of the vault Of the Treas.
ury by A. p. Stone, the present Treas.
urer, on the 18th OF June; and assisted
in tho counting Of the funds, draft. and
other evidence OF debt due the State.
SENECA COUNTY sAsK sosDs.
The accounts of the Office showed that
there should have been stocks to the amount
OF S2O9, ,649. a belonging 10 the Seneca Coun
W bank, IN the hands ot the Treasurer. As
may he seen from the foregoing statement,
Sl3z, l2S.l4 were missing. On inquiry into
the cause OF the absence of this amount we
we're informed by clerk in the office that
this amount Of bonds had been sent to New
York at the request of the Bank, for the pur-
pose OF being converted into stocks Of diff.
feTent date.
Though there is nothing in the Banking
Law Of lS45 authorizing any such transac.
ton, yet we had no reason TO doubt the
fairness oil 1t, until subsequent examinations
showed a very different state of facts.
One hundred thousand of these bonds had
been sent to New York, accompanied with
o power OF attorney from Mr.. Gibson, author-
izing their sale and transfer. They had been
sold and passed into the hands Of Messrs.
Atwood g. Co., and Mr. Gibson, os Treasur.
er Of State. had drawn on them for SIS, 500
Ell the proceeds OF the State. This sum they
Atwood d Co. claimed as an offset ION de-
mand being made for the stocksl but were
willing TO accouht for the balance. After
suit had been commenced, restraining them
from making any further use of the proceeds,
upon advice of counsel it was deemed best
to adjust their claim, release the bonds and
place them to tbe credit Of the Bank. This
was done through the Ohio Life Insurance
d Trust Co.-they holding bonds sufficient
to indemnify them for the amount advanced.
AT the same time, and forming part OF the
arrangement, Mr.. Gibson placed in the hands
OF Z. Ludlow, cash, S64,000 drafts, falling
due in the City OF New York, which were
deemed sufficient to meet the amount paid
TO relieve the bonds. s%2, 900 Of the Bonds
have been returned to The Treasury, and the
balance will he returned as fast as the secu-
rites mature and are paid.
OF the residue OF the bonds, we can give
no satisfactory account. As soon us this ar.
rangement was known 10 the Bant, they re.
turned ) 81, 600 of their circulation -thusre-
ducing II 10 the amount Of the securities held
by the Stale for is redemption.
THE DEFALcATIoS AND ITS AMOUNT,
comparison of the money and assets
found IN the Treasury, with the books of the
Oilice, showed large deficit in the public
funds. Having aScertaned this fact, two
questions naturally arise:
list. What is the amount of the defalca-
tionl
I'd. Who is the defaulter'
To ascertain the amou mt Of the deGalcation
II will be necessary to state an account from
The accession of Mr.. Breslin. on the 18th of
Jan. fe52, 10 the resignation Of Mr.. Gibson,
on the 18th OF June, 1857.
The following statement, which has been
prepared with great care, is, we believe, an
accurate and explicit abstract of all the ac-
counts OIL the Treasury department, between
the dates above named, and exhibits the true
amount OF the defalcation.
statement OF the accounts Of the Treasury
from Jan. 10Th 1859, 10 June 18th ls57,-
showing the amount Of defalcation.