Mountain Democrat., 1857-11-14
Reeds Defalcat 80 state Journals
Sympathetic Appealed Plain
statement Of ERcfa,

pCHrrh in the Ndfe JOH!HuL Oi WcdnC Sday iaSt, III
regard to the drfalcnton Of the late Treasurer Of this
county. T. W. Reed, Esq aud the insinuaton IL thrre
made that his surctirs have dealt hardly by hlni
As insidonS attempt Is evidently being nlhue '"
create false sympathy in bciIalf of the treasurer
we have been requested to give plain statement oil
the facts 50 far as Reed himself is concerned leaving
the connection Of other parties with the matter, for
/ future article,
| About the mtilc of October 7. NJ Reed came to
Mr. Newell one of hs snreticS, and Informed him Of
his dcfacaiion, and told him he would transfer to him
all the property to him (N.) and Mt the same
time Informing him that all of His suretics inso
vent, hut himself. Mcssrs Iuhrrtsnn and jackson.
who, hc said, had property. Mr. ~ refused 80
take the assignment until he could Mr. Robertson,
and went Immediately to Coloma for that purpose
but failing to find him at home he returned and had
the assignment made to himself, accompanying It
with power authorizing him ($) t" sell the property
~thOut foreclosure to satisfy any debt thai his sure
cS might pay, and appointing him trustee for that
purpose. Reed ,tated that that all the property
hr had. Ou the fofowing day Mr. Robertson, having
come I7acrryiIlr he and Mr. y. had several inter
views with SIR. Reed, in which he stated that he had
paid about $ljOOO Of the money the debts Of the
old firm of Connrss Reed; stating at the same time
the reasons why he did 30, the persons to whom he
paid It, and the woris passing between HIN and Con
ness about paying the AaMe-dH Gf tnhi,h trW here
Gftrr he Qirrn. McS-rs. y. 4 II. then proposed to
Mr. Reed and his fricnds II Ihet, from all sources,
would raise one. third Of the money, they IN. R)
would raise twOthir's pur il over 80 that no defaca-
tion should occur, and that they wnuh share the Sc
cnritCs with them in proportion to The money ad-
vanccd. This proposition was agreed to, and they
were to meet In Sacramcnto'with the money. Mr.. N.
went down with twO-thrds Of the money fnr himself
| and MIR. Robertson and met there Mcssrs. Reed and
Mckinney, who informed him they had onc-tlrd of
the money and upon his transferring oncthird Of the
stock tO Mckcnncy, absolutely, they would pay it
over. Mr.. y refused stating to them that he could
not for three reasons:
ist-Tlat he held the stock a trustee for Reeds
| suretirs. nnd could not. -.
| 2ndly-That the money they proposed paying
only onrthrd Of one settlement to the State and that
there WAS still additional dc!alrations which they
would then haze 10 settle without any security there
| for and
Srdly--TInt by transferring the onc.thlrd Of the
stock absolutely, It made the securities in the hands
Of Mcssrs. " H. comparatively vHluclcss.
Mr. Newell was then asked what was his PROPOSE
tion. lie stated that h. and Robertson would trans
fer tc them onc.third ~ the securities AZ follows -
That an agreement should be drawn and signed by
all parties, stating the amount uf money paid by each
and the amount Of property transferred by Rccd and
by said agreement, the property should ne transferred
and owned by each one In the proportion In which he
advanced money, and should lie represented BY each
one IN the same proportion nnd when the whole or
any part OF IT, was Sold or money realized from it IN
ANY way whatever, that it should be divided amongst
all advancing money in that proportion, but that no
should BE- permitted to sell part Of that proper
~ and appropriate the money exclusively to the pay
mcnt Of his debt Thisi propositions FUR and
sonable, was refused by them, McKenncy giving AS
reason that he had individual stock in the same COM
pnny that might be injured by this arrangement.
Mr. n then proposed to him that II he desired that
an agreement should also be made with linn (Mck. }
that trade should be made Of the security stock
without Including his also, II he desired, rs to pro-
tcct his stock and make II realize tO him much M
the other did to the surctcs. This was refused. MIR
Newell then, out of the money of himself aud Robert
ron, paid OF the State Indebtedness, &i52I5 - less
4l0lO which was ON hand wclI Reed made his deial-
| cation known.
II IL said that though Reed did wrong In using the
money, he acted noby In atoncmcnt by giving up his
property. There some facts unexplained which
would make doubt this assertion. Why did he not
tell his surccS Of the $S'H he held against the
~, and which then before the board Of Supcrvi
for allowance, and transferred that to them,
wllrn he was giving up ar Why didn't he let them
have that sack Of gold cuin he took from the county
sale while this arrangement was being made, which
Messrs Park AMI Esther can speak Of supposed to
contain from - ldl To AS,Uhb.-and to whom did he
give II? Again Dr. IIcrrick, who acted ut times as
Deputy Treasurer, says since the LIST OF April le51,
T. Reed has been receiving At different times from
| btIOH--by mail and cXprcss-a number OF packages
| Of state Scrip! IIcrrick says that he swear To
Reeds receiving large parcels at many MS four diff
frrcnt times; one he got when hu and some OhsrS at
tended the American state Convention. The last he
received about six weeks before going out Of Oice-a
package IL sixteen pieces Nome Of this haE been re-
crivrd by the State Treasurer! Why did he not pay
II tu his srctics tn indemnify thcnor tell them
what disposition he had made of II ! For what puT-
pose did hr go tO the Sheriff and draw In advance
~ tNO of taxes, and send II upon u Geographic dis
| patch To Triend from this county who was then In
| Sacramento, and not give an account Of ity
1t is also insinuacd that his hurctics wanting
to speculate out Of the stocks 0t Reed. We are au.
thurizcd To say that MrssrS. Newell and Robertson
offered to give up all securities they had, and give
H3iHO, II Reed or his friends would indemnify them
and that they StW OdSr il That they offered To give
the of all the money they had paid for year,
without any interest and give up the securities too,
II Reed aud his friends would make them good note
payable Mt that tnr-IHd they NW GFer I! We
alSO authorised to say that NCssrs n. 4 X. have
offered To any Onc nf Reeds friends that they should
have securities with them TO any extent they would
advance money for him, from $H0 up, and that they
are StW WiHin0 10 dc'e6e To any az their PrOIIOSi-
HOHH These, We are infOrnrd are the main fncts as
To Reed himself The connection Of other parties
with the matter, understand Is now being invrSti.
gated by the surers, and the facts, when all collect
ed, will be made public aE to them.
Reeds suretirs may have "dealt hardly by him, "
hut the above facts would to indicate TINT some
uf them have had to suffer In the matter rather Sc
vcrcly in purse.