The Perrysburg journal. [volume] (Perrysburg, Ohio) 1853-1861, 1858-01-14

ne the appointment at any time in the course OF
hat period, and regarding the disclosures which
lad been made as demanding an immediate aud |
borough investigation. l appointed Thomas
sparrow, Of Franklin county, to that office. The |
'esultS Of the examination made by Mr.. Sparrow,
ire set forth in his report, which is herewith |
The nature and extent of the de-
the devices by which Il was con-
realed from the Legislative committees, and the
Auditor Of State, at the time Of their several ex
and the respective parts in the crimi-
nal transaction ofthe two State Treasurcrs impli.
Gated in il, are clearly stated in this document
No candid person, think, can Withhold his assent
from the conclusion TO which he arrives, that
John q. Bresln distracted the money from the
Treasury, and that William II. Gibson, by con
cealing the detalcation aud denying its exstance,
disregarding truth aud his own official duty"
As soon as the official investigation had been
provided for the facts which had been made
known to me were communicated to the Prose
cutting Attorney oC Franklin county, who II
charged by law with the prosecution of all oIlcn'
ces committed within its limits; and to the
Judge fthis Judicial subdivision, whose duty is
Is to charge the Grand Jury in regard to such
offences The Prosecuting Attorney was assured
of whatever mid the Executive could afford to him
in the discharge of his functions, and he, accor.
dinghy, 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 cN-
Trcasurcrs. Mr.. Gibson gave bail, but Mr.. Brcs-
lin He'd to Canada. Every effort deemed tit and
cxpcdicnt by the Prosecuting Attorney and At
torney General was made for his apprehension,
and the charges were betrayed from my contin-
gent fund A correspondence was also iustItu"
ted with the Federal Government at Washington,
with the hopes ofengagpg its intervention with
II. n.fa. k,. ala
the surrender of the fugitive delautcr could be
obtained. The Federal authorities, however, dc
clincd to Interfere, on the ground that the surreu
der of fugitive, charged with emhc2zlcmcnt
was not stipulated in the treaty between this
| United States and Great Britain, and therefore
could not With propricty he asked for,
| Civil suits have been instituted by the Auor
ney General, against the two cN-Trcasurers ant
their Surctes, upon their official bonds. In the
course OF the Investigations required by these nc
tons, as well as by the criminal prosecutions
upon the indictments found by the Grand Jury
| il is proposed that some further light may b,
thrown upon the use made of the money abstrac
ted from the Treasury, and that a considcrabl,
| portion of it, at least, may be recovered.
Up TO the time of the disclosure of the deficit
| Mr.. Gibson had obtained means tor meeting tn
current demands against the State Treasury, an,
dcceiving the legislative committees and the Au
ditor, when examining its condition, by tempora
ry loans from banks ard bankers, aud other dew
ces described in the report of the Special Exam
incr Whether the withdrawal of the money
Lthus obtained and represented to belong to til
State, constitutes dcialcaton and renders hir
liable as a dciaulter, Notwithstanding he may nc
have participated in the original abstraction,
a question for the courts. The practical effect {
that withdrawal was to leave the State unprov
ded with sufficient funds for the payment of tn
interest on the State debt, becoming due on tn
LIST of July, or for the ordinary expenses of tn
government.
To obtain these funds was Indispensable, an
there were but two meana of accomplishing ii
object One was to call the Legislature togetl
or, in extra session. and await its action; the ot
er to make an immediate arrangement, and il
woke for il the sanction Of the General Assemb
at its next regular meeting. Only eighteC
days would elapse after the resignation of NJ
Gibson before the interest was payable, and th
time would hardly suffice for the assembling
the Legislature and the provision of the necess
ry funds through its action. Under these ci
cumstances, did not think it advisable to inc,
the expense of an extra session, but advised q
making of such arrangements, by the Commi
sioner of the Sinking Fund and the State Trca
urer, as would promptly secure the needed meal
on the best terms, not exceeding the rate Of $
|
! An arrangement was accordingly made wi
the Ohio Life Insurance and Trust Company, u
der which that institution advanced to the Stat
. on the LIST day OF July, in New York, the sum
Sl5O,O00, which sum, with what had been pre-
q ously provided, paid the interest on the pub
y debt, and fully protected the credit OF the Sta
/ Another arrangement was made with the Sta
: Bank Branches, by which the Institutions agre
to pay directly to the parties holding the
Of the Auditor upon the Treasurer the seve
. amounts due them, and await reimbursement
the principal from incoming revenues, and
interest at six per cent. from the next Gene
$ Assembly BY this arrangement, the pccuni0
expenses of the State Government were provid
for, and the injurious effect of the detnlcati
upon the public interest, as far as possible ave
G ed. ! do not doubt that you will promptly p
# vide for Tic payment. of the interest which
o accrued upon the advances so honorably a
o libcrally made.
It The arrangement with the Trust Conpa
resulted in unforeseen advantage to the State
It AT the time Of Mr.. Gibsons resignation,
r cording to the Treasury books, there were in
l., custody as Treasurer, State six per cent. boz
IS to the amount OF $2O9,62s IA, deposited as Sc
q rity for the circulating notes of the Seneca
n Bank. OF these bonds, it was soon after asc
r. tanned that Sl32,l2S II, had been sent to n
\ York, to be converted as was alleged, into otl
@ bonds of a different date and 100000 of th
e had been placed in the hands Of Atwood &
It with authority to sell and drafts had been ms
G on that firm, and accepted and paid by it, on t
|. credit, to the amount of $5S,500. ProceediI
q in behalf gof the State were Immediately insti
p ted to obtain possession Of these honds, VIII
@ resulted in an arrangement, by which the boz
IS were transferred to the Ohio Life Insurance
|. Trust Company, to be retransierred to the Sta
NI..As
If i'll discharge of the claim of Atwood Il Co. sho
{. be realized out of certain securities deposited
d Mr.. Gibson. Before the making of the trans
,f according to this agreement, the Trust Comps
lie failed and it was ascertained that the bonds
k been converted by its Cashier 10 his own use
y that Of the institution, by which means the Tr
= Compuny had become the debtor of the State
I. their full amount. Other funds of the State
le the hands of the Trust Company were also C
ID yerted in the same manner. The whole amo
thus embezzled was nearly equal to the sum
yanced and would have been almost if not nj