San Andreas independent., 1857-06-06
Losses at the Mint.


mors have reached us, as to some mismanage-
ment in the affairs of the U. s. Branch Mint in
this city but as they never assumed any tangi-
BILE shape, and could be traced to no reliable
source we have refrained from mentioning the
matter For the last few days, however, rumor
has been rife in assigning defalcation to vari
Gus parties, and yesterday 1T was openly charged
on Col Haraszthy the melter and rehner of the
establishment. AS the reports circulated in the
morning papers, (which variously estimate the
loss from one to four hundred thousand dollars)
may produce an unnecessary panic throughout
the mining country, we will lay before the pub
lie what information we have been able to gather
on the subject, from conversations had with the
principal officers of the Mint
We have not the space at this time to give
minute detail of the workings of the establish
ment. 1t will be sufficient, however, to state
that the checks placed upon the various depart
ments are such that a discrepancy in the
counts of any of the officers could be readily, al
most instantly detected, with the exception of
the melting and refining department In this
branch it is impossible to have final settlement
oftener than once year, without great expense
and retarding the business of the establishment.
This happens because large amount of fine
gold escapes into the chmneys and tlues, which
have to be torn down for the purpose of collect
ing the waste. The officials of the Mint have
been aware, for a long time that there would be
a deficiency in the refner's department, on ac-
count of the bad construction of the fues and
chimneys. Various alterations and improve
ments have been made at different times to pre-
vent this waste. No correct estimate, however,
of the deficiency could be come at until last
fall, when the Mint was closed for this purpose,
and III order to make the annual settlements
The deficiency was then found to be greater
than had been anticipated This was in meas
ure accounted for in the following way four
years accumulation of base metal which had
been separated from the fine gold had been
over-estimated-the great press of business hav-
ing rendered an earlier separation impossible,
as the Mint had been worked night and day, by
orders from Washington, to meet the public de-
mand.
Immediately upon the resignation of Colonel
Haraszthy when final settlement would have,
to be made, this refining of the base metal was
commenced. No final settlement of the accounts
of the Mint has yet been made, and it will be
impossible to say what is the actual deficit. At
the time when Col. Haraszthy demanded an cx-
animation by the Government agent in this
city, the deficiency considered to be four
teen thousand ounces. 1t has already been
duced to five thousand ounces. AS the exam
ination progresses it may be still further re-
duced At the closing of the Mint last fall, when
the wastage was found to be very great, Il zig
gag chimney erected by Col. Haraszthy,
and in the course of two and n half months
work, the amount Of eleven hundred and eighty
ounces was collected from it. To show how
great must have been the loss during the last
four years, we have been told that in the sweep
ings from the roof of Davidson's building, three
hundred ounces of gold was collected At Ar
mory Hall, which is at least two hundred yards
distant from the Mint, one hundred and eighty
dollars was collected. Other ncighboring build
lngs supplied like proportion of loss. Major
Snyder, the Treasurer of the Mint, than whom
we believe, there is not a more honorable man
in the State, and who is extremely cautious in
any statement he may make, informs us, that to
satisfy himself, he went on frame building
near by, and personally collected considerable
amount. The employees and officers of the
Mint, with whom we have conYersed, look upon
the deficiency, whatever it may prove to be, as
caused by natural means, for which no officer
of the establishment could be responsible.
The present refiner is aware, that, even now,
with all the precaution that can be taken the
loss is immense. This matter of wastage has
been the subject of frequent communications to
the Department at Washington, and means have
been asked to enlarge the ehmneys and i'm
prove other departments of the Mint but with
out success
These are the facts Of the case, so far as we
have been able to learn. With the various ru-
morS that are a1oat respecting Col. IIaraszthy,
the public may be able to judge from the state
ments we have made coming direct from the
officers of the Mint. Col Haraszthy and his
friends all profess to feel confident, that when
the proper examinations have been made, every
thing will be satisfactorily explained At any
rate even if defalcation did exist, the miners
and others who have transactions with the
Mint, need have no apprehension that they will
be the sufferers thereby. There is no trouble
about Uncle Sam saddlng the losses on them.
The United States Government is their surety,
and any attempt to create an alarm amongst the
depositors at the Mint will prove futile.
We understand that Col. Haraszthy, against
the advice of his friends, is now engaged with
the u. S. District Attorney and the special
agent of the Government, in making over all
his private property, which, from the schedule
exhibited to us, is ample to meet double the
amount of the alleged deficency--to be held in
trust for the United States Government. against
any deficiency which may be fairly chargeable
to him. This indeed, seems to us the best
proof that Col. HaraSzthy could give of his in
nocence of anything wrong. Would to Heaven
our State and city officials, who have been
charged with misdemeanors. were governed by
like honorable course of conduct-San Fran
CISCO BuitetiR June 3D.
AcQuITTAL OF NED McGowAN.-The jury in
the case of the People rs. Ned MCGOWAN, only