Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1858-01-14
confirmed by a thorough and impartial exami.

confirmed by thorough and impartial exami
nation.
l therefore availed myself of the earliest op
portunity of conference with him to urge his re
signation, expressing to him my conviction tha
he had placed himself, by his own statements
in the position of defaulter and that he wa
consequently liable 10 an arrest, which woule
in my judgment work a vaeancyby disability
to be filed Immediately by the appointment o
a new Treasurer.
Mr.. Gibson resigned, and forthwith appoint,
ed Alfred P. Stone of Franklin County, 10 the
vacant office, who gave bonds, was qualified
| and entered upon his duties without delay
| 1t seems to be the opinion of some persons
that the GoAernor has some supervisors or con-
troll over the ether Executive Offices, and is
| therefore In some measure responsible for their
action. Such persons do not reflect that each
of these officers is elected by the people, and is
made by the Constitution wholly indepedent
of the Governor. in the administration of his
own department, except so far as the interven-
tion ofthe latter may be sanctioned by express
enactment. The only act providing for any in
tervention of the Governor with the action of
the Treasurer, previous to Mr.. Gibsons resig-
nation, was that of April 8, 1856, That act
authorized the Governor, upon request of the
Auditor Of State, TO appoint suitable person
to aid that officer in examining the Treasury,
and required him to direct the Auditor to make
such an examination under certain eircumstan-
ces. At the proper time l directed the atten-
ton Of the Auditor to this law, and he made
the examination required by it, and reported
that the funds OF the State were safe In the
Treasury He made no request for the appoint
ment OF any assistant, and in the absence of that
request there was no authority to appoint one.
His report, and those of the Legislative Com
mittee, furnished no ground for any further
direction to him, and none was otherwise made
known to me.
A further duty was imposed upon the Gov
ernor by the act of March 80, 1857, which re-
quired him to appoint, once in three months, an
Examiner of the Treasury. The first three
months had not expired when Mr.. Gibson re-
signed; but believing myself warranted in max
ing the appointment at any time in the course
of that period, and regarding the disclosures
which had been made as demanding an imme-
diate and thorough investigation, l appointed
Thomas Sparrow, of Franklin county, to that Of
fee. The results of the examination made by
Mr.. Sparrow, are set forth in his report, which
is herewith transmitted. The nature and ex-
tent of the defalcation: the devices by which it
was concealed from the Legislative committees,
and the Auditor of State, at the time of their
several examinations, and the respective parts
in the criminal transaction, of the two State
Treasurers implicated in it, are clearly stated
in this document. No candid person, think,
can withould his assent from the conclusion to
which he arrives, "that John G. Breslin abstrac'-
ed the money from the Treasury, and that VIII
ham ii. Gibson, by concealing the defalcation
and denying its existence, disregarded truth and
his sworn official duty"
AS soon as this official investigation had been
provided for, the facts which had been made
In mo xvoro com tod To tho Proco.
cutting Attorney of Franklin county, who is
charged by law with the prosecution of all Of
fenses committed within its limits; and to the
Judge of this judicial subdivision, whose duty
it is to charge tie Grand Jury in regard to such
Ofenses. The Prosecuting Attorney was as
surcd cf whatever aid the Executive could af-
ford to him in the discharge of his functions
and he, accordingly, received the assistance of
the Attorney General, in the investigations
which took place before the Grand Jury. These
investigations resulted in indictments against
both the ex-Treasurers. NJ. Gibson gave bail,
but Mr.. Breslin fled TO Canada. Every effort,
deemed fit and expedient by the Prosecuting
Attorney and Attorney General, was made for
his apprehension, and the charges were defray-
ed from my contingent fund. A correspondence
was also instituted with the Federal Govern
ment at Washington, in the hopes of engaging
its Intervention with the British Government,
by which means alone the surrender of the fu-
{ itive defaulter could be obtained The Fed
efal authorities, how ever decided net to interfere
on the ground that the surrender of a fugitive,
charged with embezzelement, was not stipulated
in the treaty between the United States and |
Great Britain, and therefore could not with |
propriety be asked for.
Civi, suits have been instituted by the Attor-
ney General, against the two ex-Treasurers and
their sureties, upon their official bonds. In the
course of the Investigations required by these
actions, as well as by the criminal prosecutions
upon the indictments found by the grand jury,
it is hoped that some further light may be
thrown upon the use made of the money ab-
stracted from the treasury, and tha: a conside-
rable portion of it, at least, may be recovered.
Up to the time of the disclosure of the de-
fcit, Mr.. Gibson had obtained means for meet
ing the current demands against the State
Treasury, and deeiviHg the Legislative commit
tees and the Auditor, when examining its con-
dition, by temporary loans from banks and
bankers, and other devices described in the re-
port of the Special Examiner. Whether the
withdrawal of the moneys thus obtained and
to belong TO the State, constitutes
a defIlcation and renders him liable as a defaul-
ter, not withstanding he may not have par
ticipated in the original abstraction. is ques-
tion for the courts. The practical effect of that
withdrawal was to leave the State unprovided
with sufficient funds for the payment of the in
terests on the State debt, becoming due on the
LIST OF July, or for the ordinary expenses of the
government.
To obtain these funds was indispensable, and
there were but two means Of accomplishing the
object. One was, to call the Legislature togeth-
er, in extra session, and await its action; the
other to make an immediate arrangement, and
invoke for it the sanction of the General Assem-
bly, at its next regular meeting. Only eighteen
days would elapse after the resignation of Mr..
Gibson before the interest was payable, and that
time would hardly suffice for the assembling of
the Legislature and the provision of the neees-
sary funds through its action. Under these
circumstances, did not think it advisable to
incur the expense of an extra session, but ad-
vised the making of such arrangements, by the |
Commissioners of the Sinking Fund and the |
State Treasurer. as would promptly secure the |
needed means on the best terms, not exceeding |
the rate of six per cent per annum on the amount
obtained.
An arrangement was accordingly made with |
the Ohio Life Insurance and Trust Company,
undor which that institution advanced to the
State. on the lst day of July, in New York, the
sum of $l50,00O, which sum, with what had
been previously provided, paid the interests on
the public debt. and fully protected the credit
of the State.
~Aho.neL "tiohSciHeHt WIS tn1ue Wltn the
State Bank and Branches, by which these Insti-
tutions agreed TO pay directly to the parties
holding the warrants of the Auditor upon the
Treasurer, the several ammoupts due them, and
await reimbursement of the principal from the
incoming revenues, and of interest at six Der
cent from The next General Assembly By this
the pecuniary expenses Of the
State Government were provided for, and the
injurious effect of the defalcation upon the pub
lie interest. rs far as possible. averted do not
doubt that you will promptly provide for the
payment of the intsrest which has accrued
upon the advances so hononrably and literally