Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1858-01-14

States aud Great Britain, and therefore
could not with proprety be asked for.
Civil suits have been instituted bv the
Attorney Genera, against the two ex.Tress-
nrers and their sureties, upon their official
bonds Ia the course Of the investigation,
required by these actions, as BY these &C.
mai prosecutions upon the Indictment,
tound BY the granc jury, it it hoped that
some further light may be thrown upop
the uses made Of the money abs,racted
from the treasury, aud that a considerable
portion Of it, at least, may be recovered
Up 70 The time Of the disclosure Of the
deficit Mr.. Gibson had obtained means c,y
meeting The current demands AGAINST To
State Treasury, and deceiying the ierisl.ye
committees and the Auditor, when EVAN.
ining its condition, by temporary loans
from banks and bankers, and other device,
described in the report of the Special Ex.
amines. Whether the Withdrawal Of the
moneys thus obtained and represented 10
belong TO the State, constitutes a der,lcs.
ton and renders him liable as a defagIer
notwithstanding be may not have partici.
pated 10 the original abstraction, is a cues.
ton for the courts. The practical epect of
/ that Withdrawal was 10 leave ths STATE I'M.
provided with sufficient funds for the pay.
ment Of the interest on the State deyt' Be.
coming due on the lst Of July, or for the
ordinary expenses Of the government
To obtain these funds was indispensable,
and there were but two means Of accom-.
| P.lsbing the object. Que was, 10 call the
Legislature together, in extra session. and
avail rs action; the other to make an i'm.
mclia'e arrangement, and invoke for il the
action Of the General Assembly At its neyt
regular meeting. Only eighteen dave
would elapse after tue resignation of Mr..
Gibson before tue interest was PAYABLE. and
the time would hardly suffice for the as.
sembing Of the Legislature aud the pro-
vision of the necessary funds through its
action. Under these circumstances. | did
not think it advisable to incur the expense
Of an extra session, but advised the making
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 ex-
cetdiug the rate Of six per cent. per annum
| Oh the amount obtained.
An arrangement was accordingly made
with tie Ohio Life Insurance and Trust
Company, under which that Institution
advanced to tie Stale, on the first day of
July, in New York, the sum of $4,000,
which sum, with what bad been rreyious.
y provided, paid the interest on the public
debt, and fully protected the credit Of the
State,
Another arrangement was maGe with
the State Bank aud Branches, BY which
these institutions agreed to pay directly TO
the parties holding the warrants of the
Auditor upon the Treasurer, the several
amounts due them, aud await reimburse
ment Of the principal from the incoming
revenues, and Of interest at six per cent.
from the next General Assembly. By this
arrangement the Peeuniary expenses Of the
State Government were provided for, and
the injuriOue effect Of the defalcalion upon
the public interest, as far as possible, avert
ed. l do not douct that you will prompt.
ly provide for 'he payment of the interest
which has accrued upon the advances 60
houorably and Literally made.
The arrangement with the Trust Com.
psny resulted in unforeseen advantage 10
the State.
At the time of Mr.. Gibson's esignalion,
according to the Treasury books, there
were in his custody as Treasurer, State six
per ceIt. bonds to the amount Of $685.
628 IA, deposited as security for the circu-
latng notes on the Seneca County Bank.
Of these bonds it was soon afterwards as
ceitaiued that $l32,12 IA bad been sent
10 New York to he converted, rs was al
legged, into other bonds Of different date;
and 100000 of these bad been placed in
the hands of Atwooe & Co., with author
ity to sell; and drafts bad been made on
that firm, and accepted and paid by it. on
this cieiit, to tie amount of S58,50O.-
Proceedings in behalf Of the State were
immediately instituted TO obtain possession
of these bonds, which resulted in an ~.
rangement by which the bonds were trans.
ferred to the Ohio Life Insurance and
Trust Company, to be le.erred to the State,
as soon as the money advanced by that 10.
stitution in discharge of the claim of At
wood d Co. should be realized out Of
certain securities deposited by Mr.. Gibson.
Before the making Of the transfer accord
ing to The arrangement, the Trust Compa-
ny failed; aud it was ascertained that the
bonds have been converted by its cashier
to bis own use. or that of the Institution,
by which means the Trust Company bad
become the debtor Of the State in the
full amount other funds of the State in
hands of the Trust Company we're a'sn
converted in the same manner. The whole
amount thus embezz!ed was nearly equal
to the sum advanced, and wonld have
beeu almost, if not altogether total loss,
had not the arrangement for the payment
of the July interest, created a more than
equal debt to the Trust Ccmppny, and
thus secured the State against the possibiI-
ity of loss by its failure.
Until within very recent period no
effectual legislative guards had been provi-
ded for the security of the Treasury. The
Legislature of 1856 and 1857. IN great
part supplied this defect. 1t made the
Auditor of State the chief accounting off,
Ger of the Treasury, aud required all pay
ments az well as all disbursements TO be
,nada nnon bis uayrapt. II di,ae,al tLa