The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1858-01-13

l ton OF deiaulter, and that he was consequent,
: liable to an arrest which would in my judgmen
e work a vacancy by disability, to be filled imme
c diately by the appointment of a new Treasurer
/. Mr.. Gibson resigned, and forthwith appoint
9 ed Alfred p. Stone of Franklin County, to thu
: vacant Office, who gave bonds, was qualfiel anc
si entered upon his duties without delay.
/, 1t seems to be tie opinion of some person,
S that the Governor has some supervision or con
troll over the other Executive Officers, and i,
: therefore in some measure responsible for theil
) action. Such persons do not reflect that each
of these officers is elected by the people, and is
1 made by the Constitution wholly independent o
} the Governor, in the administration OF his owr
department, except so tar as the intervention 0
the latter may be sanctioned by express enact
, ment. The only act providing for any inlerven-
ton ofthe Governor with the action OF the Treas
, urer, previous to Mr. Gibsens resignation, was
| that of April 8, 1856. That act authorized he
) Governor, upon request of the Auditor OF State
to appoint suitable person to aid that officer in
examining the Treasury, and required him tC
direct the auditor TO make such an examination
under certain circumstances. AT the proper
time, directed the attention 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. lie made no request
for the appointment Of any assistant, and in the
absence Of that request, there was no authority
to appoint ore. His report, und those of the
Legislative Committees, furnished no ground for
{ aoy further direction to him, and none was 9TH
erwise made known to me.
A further duty was imposed upon the Cover
or by the act OF March 30, 1867, which requir-
ed hm TO appoint, once in three months, an
Examiner of the Treasury. The first three
| ,S haI ypir Irh
signedj but believing myself warranted in MAX
ing the appointment at any time in the course of
that period, and regarding the disclosures that
I had beeh made as demanding an immediate and
thorough investigation, l appointed Thomas
Sparrow of Franklin county, to that office. The
results Of the examination made by Mr. Spar
row, are set forth in his report which is here
with transmitted. The n!ture and extent of
the dcialcatiOn; the devices by which it was
concealed from the legislative committees and
the Auditor of State, ut the time OF their several
examinations and the respective parts in the
criminal transaction Of the two State TrcasurerS
implicated i'll it, are carly stated in this dUcu-
nent. No candid person, think, can withhold
his assent from the conclusion to which he ar
rlves that John q. Breslm abstracted the mon
ey from the Treasury, and that William II. q ID.
son, BY concealing the deialcation and denying
its existence, dislegarded truth and his sworn
official duty"
AS soon as this official investigation had been
provided for, the facts which had been known
were communicated to the Prose'g Attorney OF
Franklin county, who is charged by law with
the prosecution Of all otlenses committed within
its limits; and to the judge OF this judicial sub
division, whose duty it Is 10 charge the Grand
jury in regard to such ofienses. The Prosecu.
| ting Attorney was assured of whatever aid the
Executive could afford to him in the discharge
Of his functions, and he, accordingly received the
assistance of the Attorney General, in the in
vestigations which took place before the Grand
Jury. These investigations resulted in indict-
nents against both ex-treasurers Mr.. Gibson
gave bail but Mr. BIeslin fed TO Canada. Ev-
cry effort, deemed ft AMI expedient by the Pros
ecuting Attorney and Attorney General, was
made for his apprehension, and the charges were
betrayed from my contingent fund. A cores
pondence was also instituted with the Federal
Government at Washington, in the hopes OF en-
gaging its intervention with the British Gov
ernment, by which means alone the surrender
o the fugitive detauler could be obtained. The
| Federal authorities, however, declined to inter-
iere, on the ground that the surrender OF tugi-
tive, charged with embezzlement, was not stipu-
lated in the treaty between the United States
and Great Britain, and therefore could not with
propriety be asked ior.
! Civil suits have been instituted by the Attor
ney General, against the two ex-treasurers and
upon their official bonds. In the course of the
| investigations required by these actions, as we'll
as by the criminal prosecutions upon the indict-
mens found ly the grand jury, it is hoped that
some further light may be thrown upon the uses
made of the money abstracted from the treasu-
ry, and that considerable portion of it, at least
may be recovered.
Up to the time Of the disclosure ofthc deficit
Mr.. Gibson had obtained means for meeting the
current demands against the State Treasury
and deceiving the legislative committees and the
Auditor when examining its condition, by tenn
porary loans from banks and bankers, and other
devices described in the report of the Special
Examiner. Whether the withdrawal OF the mo-
neys thus obtained and represented TO belong to
the State, constitutes detalcation ard renders
him liable as deaulter Notwithstanding he may
not have participated il the original abstraction
| is question for the courts. The practical
effect Of that withdrawal was to leave the State
uaprovided with sufficient funds for the payment
of the interest on the State debt, becoming due
on the lst ofJuly, or for the ordinary expenses
ofthe government. @
/ TO obtain these funds was indispensable, and
! there were but two means 0 accomplishing the
object. One was to call the Lenislature togeth-
err in extra session, and await its action; the 9TH
er to make an immediate arrangement, and in
woke for it the sanction otthe General Assembly
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
4 Legislature and the provision of the necessary
funds through its action. Under these circuin-
stances, did not think it advisable to incur the
expense ofan extra session, but advised the ma
king of such arrangements, by the Commission
ers 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
ceni. per annum onthe amount obtained.
| An arrangement was accordingly made with
the Ohio Lille Insurance and Trust Company,
under which that institution advanced to the
! State, on the 1st day Of July, in New York, the
sum Of $150,000, which sum, with what had
been previously provided, paid the interest on the
public debt and fully projected the credit Of the
State.
| Another arrangement was made with the State
| Bank and Branches, BY which these institutions
agreed to pay directly to the parties holding the
warrants of the Auditor upon the Treasurer, tho
several amouots ue them, and await the reim-
bursement Of the principal from the incoming
revenues, and Of interest at SIX per cent. from
the next General assembly. BY this arrange