The Placer herald., 1857-02-14

defaulter, when the money is missing from
the Treasury and cannot be procured upon
demand. Nor can the State be turned off
with the bond or contract which tbs Treasur-
er receipted from Palmer, Cook Il Co., as it
was not an official act-said bonds never
having been presented to and approved hv
the Governor, as required by law Had the
Treasurer, before making any arrangement
with them, submitted a good and sufficient
bond from them to the Governor and OBJ
tained his approval, and loss had then occur
red, he and his 'sureties might have escaped
the responsibility; but, having violated the
law in this respect, the payment to Palmer,
Cook Il Co., became his own private act, out
side Of the line Of his official duty.
By following the history of the Treasury
transactions, with regard to the payment of
The semi-annual interest, we are brought to
the other and principal object Of inquiry. to-
wit:-The alleged remittance to New York
to meet the July interest for the year 1851.
The January interest for the present year
was RENTED through Wells, Fargo DO. in
pursuance Of the before mentioned contract
with them, on the 5th day of November last
by the recent arrival of the steamer, inelli
gence is received that the demands of our
creditors were promptly met by that house.
sixtyfive thousand dollars having been paid
upon the coupons for interest before the sail
ing Of the steamer of the 5th of January
On the 3lst day of December last the
State Treasurer applied to the house of Wells,
Fargo IL Co., through Mr.. Mcneil, their
cashier at Sacramento, to make arrangements
to meet the July interest. Mr.. McLane, the
chief agent of that firm, and the Treasurer,
went to San Francisco on the same day for
the purpose, as we UNDERSTOOD by the former
to make such arrangements. On the follow
ing day Mr.. e. A. Rowe, late clerk in the
Treasurer's office, but then President of the
Pacific Express Co., accompanied by the
Treasurer, had an interview with Mr.. McLane.
The Treasurer, however took no part in the
conversation, but remained within view, but
out Of hearing Of the parties. Mr.. Rowe de-
sired Mr.. MrLane 20 give bond and surety to
pay the interest without receiving the money.
This proposition was declined. Mr.. Rowe
urged its acceptance, promising to furnish
collateral securities upon which the money
could be realized in thirty days But Mr.
McLane declined the offer peremptory, but
signi6ed his willingness to furnish sufficient
bond at any time upon receiving the money.
Upon this he was informed that the Pacific
Express Co., would give bond. Mr.. Nc
Lane then claimed that he should insist upon
compliance with the Treasurer's contract with
him, to which Mr.. Rowe replied by assuring
when the time arrived for forwarding the
money, it should be forwarded by the house
of Wells, Fargo d Co., and the business
transacted in pursuance of the contract.
Two days afterwards the Treasurer made
the contract with Mr.. Rowe, as President of
the Pacific Express, as will appear by refer
ence to copy thereof hereto annexed.
1t was publicly announced about the mid
die Of January that the money had been ac-
tually forwarded to New York by the Pacific
Express Co., by the steamer OF the 5th, and
Mr. Rowe informed various persons, among
them the Governor and the Attorney Gene
raj, that such was the fact. Many reasons
were given to the public for this remarkable
activity, some of which were not very COM
plimentary to the character Of the LegiSla-
ture but were quite commendatory of the
financial abilities and political sagactv of
the Treasurer. He was applauded as being
the guardian of the honor of the State in
having determined to assume the response
bility of paying the interest due next July,
and by the same stroke of policy saving the
money from the anticipated extravaganza of
the incoming Legislature by the supposed
precauiion Of transferring the same from the
vaults of the Treasury to the city of New
York
But an examination Of The facts developed
10y the testimony herewith submitted must
convince the most charitable mind, that an
unmitgated fraud was attempted, and in fact
has been successful. That Mr.. Rowe has re-
ceived the sum of $l24,OOO from the Trea-
sury is sufficiently true, but that it was paid
to him on the Sd day of January, in the
manner represented by the Treasurer, must
be regarded as very doubtful. Mr.. Rowe
says that it was paid to him at the Trea-
surer's office on that day in coin, by the
present, and ref,l~es to give the committee
any information Of the place to which he re-
moved the same, or how or in what manner
he. disposed of so large sum. The Treas
urer substantially atfirms the same statement
except that he states that either Mr. Bunker
or Mr.. Rhodes was present, but it is disaffirm
ed by the fact that neither of the clerks in
the office ever witnessed such payment,
though one of them was in the Office during
the business hours of that day; and by tie
fact that it was entered in the cash book of
the office as having been paid to Wells, Far
90 and Co., on the 10th Of January. The
book keeper, Mr.. Rhodes remembers seeing
the Treasurer paving Mr.. Rowe some mo
nev about that date, but had no reason for
supposing that it had any connection with
the alleged interest remittance, as is abun-
dainty evidenced by his own statement to that
effect, and by the fact that when on the 10th
he made the entry in the cash book to Wells
| Earor., e. % ho hnA ronoirod no in tim af fion