Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-09-09
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Balance. sec ,997 is
On the books of the Office Mr.. Gibson
has credited himself with the payment
of S97,65 to the Clerk of the Depart.
ment, for salary previous TO December,
1855. There is, however, no voucher
for the credit on file, nor any other evil
dence of his having paid it. We have
therefore omitted it in our statement of
the account.
SENECA COUNTY BANK Bonds.
The accounts of the Office show that
there should have been stocks to the
amount of 5000, ,648, IA, belonging to
the Seneca County Bank, in the hands
Of the treasurer. As may be seen from
the foregoing statement, S122, 1873, IA
were missing. On inquiry into the
cause of the absence of this amount, we
were informed, by different clerk in
the office, that this amount of bonds had
been sent 10 New York al the request of
the bank, for the purpose of being con-
verted into the stocks of different date.
Though there is nothing in The bank
ing law of 1915 authorizing any such
transaction, yet we had no reason TO
doubt the fairness of il until subsequent
examination showed very different
state of facts.
One hundred thousand dollars Of these
bonds had been sent to New York, ac-
campanied with a power of attorney
from MIR. Gibson, authorizing their sale
and transfer. They had been sold and
passed into the hands of Messrs. Atwood
& Co., and Mr. Gibson, as Treasurer of
State, had drawn on them for S5S, 500
of the proceeds of the sale, 10 meet the
liabilities of the State. This sum they
ca. & Co. J claimed as an offset, (on
demand being made for the stocks but
were willing to account for the balance.
After suit had been commenced, re-
straining them from making any further
use of the proceeds, upon advice of coun-
sci, it was deemed best TO adjust their
claims, release the bonds, and place them
to the credit of the bank.
This was done through the Ohio Life
Insurance and Trust Company, they
holding bonds sufficient to indemnify
them Tor the amount advanced.
At the same time, and forming part
of the arrangement. Mr.. Gibson placed
in the hands of E. Ludlow, cashier, S64,-
900 drafts, falling due in The city of New
York, which were deemed sufficient to
meet the amount paid to relieve the
bonds.
Forty-two thousand dollars of. the
bonds have been returned to the Treas
ury, and the balance will be returned as
fast as the securities mature and are paid. |
OF the residue of the bonds, we can
give no satisfactory account.
As soon as the arrangement was known
10 the bank, $500 of its circulation
was returned TO the treasury, thus reduc-
ing it to the amount of securities held by
the State for its redemption.
THE DEFALcATIoN AND ITS AMOUNT,
A comparison of the money and assets
found in the Treasury with the books of
the office, shows large deficit in The
public funds.
Having ascertained this fact, two ques-
lions naturally arise
LIST. What is the amount of the defal-
cation?
Cd. Who is the defaulter?
To ascertain the amount of the defal-
cation, it will be necessary to state an
account from the accession of Breslin on
he 18th of January, 1852, to the resig-
lation of Mr.. Gibson on the 18th day of
Iune, 1857.
he following statement which has
'een prepared with great care, is, We be-
ieve an accurate and explicit abstract of
Ill the accounts of the Treasury Depart
nent, between the dates above named,
nd exhibits the true amount of the de-
slcation.
Distract Of the Accounts Of ths Treasury from Jan.