The Placer herald., 1857-02-14

the Treasurer's official draft to raise $4,000
for his private uses, he does not attempt to
explain. .......
When it is remembered that on the third
of Jan. he claims to have received $l24,OOO
in cash, which sum, the evidence shows,
could not have been sent to New York, it
is remarkable that he should have been com
PEELED to resort to such active and ingenious
financial manGuvers in order to assist the
treasurer in being prepared to meet the count
on the 18th The whole transaction shows
the truth Of the adage that necessity is the
mother of invention. 1t is worthy of remark
also, that the application of Mr.. Rowe to
Mr.. McLane on the lst Of January created
strong suspicious in the mind of that gen.
tleman. He gave orders to Mr. Mcneil cash
ier of the Sacramento office, mot to allow him
to overdraw his account And when Mr..
McNei! asked Mr.. McLane if he might not
let Mr.. Bates have money to make count
his reply was in the negative, saying that
Mr.. Bates might meet his count the best
way he could. At this time Mr.. Rowe fire.
quently applied to Mr. Mcneil for loans,
and though he does not knov that the mon
ey was wanted for the Treasurer, and does
not remember that he used the word 'count"
in his request, it is quite probable that Mr..
McLane's memory is the best on that point
and quite improbable that the nature of
the request should have been misunder-
stood.
The committee having been unsuccessful
in obtaining information from Mr.. Rowe, as
to how or in what manner lie disposed of
this large amount of money, are compelled
to form, from circumstantial evidence, their
conclusions in regard to it. Mr.. Rowe in
substance admits that having given bond to
pay the interest, the money became, in his
view, his own private property, and he ac
cordingly used it as such. The only parties
with whom he appears to have had any
large business transactions, are Palmer, Cook
Il Co., and his intervention in their behalf
in the matter of the affairs of Adams d. Co.,
as described by himself, affords reason to
believe, that good portion Of the money
has been sunk in speculations in connection
with that bankrupt concern.
The committee regret to say that they are
unable to throw any light upon the where
abouts of the large amount of funds com
mitted to Mr.. Rowe, on account of his OBJ
stinacy in refusing to answer questions deem
ed to be proper and necessary.
The 18th section of the funding act of
1852, the lth section of the funding act of
1855, and lth section of the funding act Of
1856, are Identical in language, and read
as follows:
"The Treasurer of State having occasion
to employ or trust any person or persons in
or about the business developed upon him
own security and for the security cf the State
such security by bond and mortgage, or other
wise, as shall be approved by the Governor,
which bonds and mortgages so approved by
the Governor, upon defaults of the obligor
or mortgagor, may be prosecuted in the name
of the obligee or nortagee for his own use
or for the State"
We are therefore of the opinion and SO
charge the fact to be. that the Treasurer of
State is guilty of ma!feasance. in office in the
violation OF the above statutes, in the pay
ment to Palmer Cook & Co., and to the Pa
citic Express, without first having obtained
the approval of the Governor to the bonds
or obligations taken from those parties re-
spectively.
We further find the fact to be, and so re-
port, that the Treasurer of State is guilty of
felony, according to the provisions of an
act entitled can act concerning the State
and County Treasurers," approved May 9TH
1855, for having drawn his official draft for
the sum of fifteen thousand dollars, upon
Wells, Fargo & Co., and delivering the same
to E. A. Rowe, for his individual use, and
for having, at various times permitted mo-
ney belonging to the State to be used by
the said E. A. Rowe.
The evidence of the witnesses examined is
herewith submitted Each witness was
sworn in the presence of tho comittee, and
his testimony carefully read over and signed
by him.
To the testimony thus taken the Com
mittee invite careful attention, as many facts
will be found therein bearing upon the sub
lects of investigation, to which direct refer
ence could not be made, without making the
report unnecessarily voluminous.
Subsequently to the appointment of the
Committee, they were instructed by resolu.
ton to inquire into the subject Of the pay
ment of Controllers warrants into the State
Treasury, instead of cash. At about the
same time joint Committee of the House
was appointed for tn. same purpose, to whom
his committee have transferred such evidence
as they have received upon that subject.
All Of which is respectfully submitted, and
the Committee ask leave to be discharged
from the consideration of the subject.
A. PCatlin,
Robt. G. Clark
p X Stafford