Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1858-01-14

effort deemed fit and expeden, By the Prose
cutting Attorney and Attorney General, wa.
made :or his apprehension, and the charge:
were betrayed from my contingent fund. 4
correspondence was also Instituted with The
FEDERAL Government at Washington, in thu
hopes OF engaging the intervention will
the British Government, by which mean:
along the surrender of the fugitive de faultel
could be obtained. The Federal authorities
however declined to interfere, on the
ground that the surrender OF fugitive
charged with embezz lement. was not stipu.
lated in the treaty between the United
States ami Great Britain, and therefore
could not with propriety be asked for
Civil suits have been instituted by the
Attorney General, against the two ex
Ireasurers and their suretes, uson taeir
oiheial bonds. In the course Of the investi-
cations 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 uses made OF the money
distracted from the treasury, and that con-
siderable portion OF it, at least, may be re-
covered.
Up 10 the time of the disclosure of the
deficit, Mr.. Gibson had obtained means for
meeting the current demands against the
State Treasury, and deceiving the legi=la-
tive committees and the Auditor, when ex-
aiming its condition, by temporary loans
from banks and bankers, aud other devices
described in the report of the Special Elk
| aminer. Whether the withdrawal of the
moneys thus obtained and represented to
| belong the State, constitutes deFalcation
anc renders him liable as defauiter, not
withstandng he may not have participated
IN the original abstraction, is question for
the courts The practical effect of that
Withdrawal was to leave The State unpro-
vlded with sufficient funds for the paymen,
OF the interest Oh the State debt, becoming
due on the lst of July, or for tie ordinary
expenses OF the government.
To obtain these :unds was indispensable,
and there were but TWO means of accom-
plishing the object. One vas, to call the
Legislature together. in extra session, and
await its action; the other TO make an im-
mediate arrangement, and invoke for it the
sanction of the General Assembly 1T lis
next regular meeting. Only eighteen days
would e!apse after the resignation of Mr.
Gibson before the interest was payable, and
that time would hard y suffice for the assem-
bling Of the Legislature and the provision
of the necessary lunds through its action.
Under these circumstances, dot dot think
it advisable to incur the expense of an extra
session, but advised the making of such ar
rangemenrs, 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 a5
tanned.
An arrangement was accordingly made
with the Ohio Life Insurance and Trust
Com paDy, under which that institution ed
vaneed to the State, on the lst day of July, !
in New York, the sum sf Sl50.0 600, which |
sum, with what had been previously previ..
ded. pad.the interest on the pnbic debt,
and fully protected the creditor the State.
Another arrangement was made with the
State Bank and Branches, by which these
institutions agreed 10 pay directly to the
parties holding the warrants Os the Auditor
upon the Treasurer, the several amounts
due them, and await :he reimbursement OF
the principal from the incoming revenues.
and of interest at six per cent from the
next General Assembly. BY this arrange
ment, the pecuniary expenses of The State
Government were provided for, and the in
jurinus effect of the defalcation upon the
public interest, as far Rs possible, averte !.
do not doubt that you will promptly pro-
vide for the payment of the interest which
has accrued upon the advances so honorably
and literally made.
The arrangement with the Trust COmpa-
ny resulted in unforeseen advantage to thel
State.
At the time of Mr.. Gibs'n's resignation,
according to the Treasury books, there were
in his custody as Treasurer, State six perl
cent. bonds to the amount OF SS209.62S, IA,
deposited as security for the circulating
notes of the Seneca County bank. OF these
bonds it was soon afterwards ascerainet
that : 49,, ,I2S,l4, had been sent TO New
York, to be converted as was alleged, into
other bonds os different date; and $780,
600 of these had been placed in the hands,
of Atwood & Co., with authority to sell;-I
and drafts had been made on that firm. and
accepted and paid by it, on this credit, toI
the amount Of S5S,500. Proce edings in be-
half of the State were Immediately institu
ted TO obtain possession of these bonds,
which resulted in an arrangement, BY which
the bonds were transferred to the Ohio Lie
Insurance and Trust Fompany. TO be re,ran>-
ferred 20 the State, as soon as the money ad-
vanced bv that institution in discharge of
the claim of Atwood q Co should be real
lied cut Of certain securities deposited BY
Dir. Gibson Before the making of the trans
FIR according to- this arrangement the Trust
Company failed; and it was ascertained that
the bonds had been converted by its Cashier
to his own use, or ;hat of the Institution by
which means the Trust Company had be-
come the dsbt0r of the State in their full
amount Other funds Of the State in the
hands of the Trust Company wer" also con-
yerted in the same manner. The whole
amount thus embezz'ed WAS nearly equal to
the sum advanced, and would have been al
most, if not altogether a total loss, had MT
the arrangement 'or the payment of the Jn-
ly interest, created more than equal debit
to the Trust Company, and thus secured the
State against the possibility Of loss by its
fai ure-
Until within a very recent period no ef-
ectual legislative guards had been provided
Cor the security OF the Treasury. The Leg
islatlon of 1856 and 1857, in great part sup
piled this deIect. 1t made the Auditor Of
State the chief accounting officer of the
Treasury, and required all payments as well
as all Disbursements to be made upon his
warrant; it directed the Commissioners Of
the Sinking Fund to withdraw from the
| Treasury from time to time the moneys be-
longing to hat fund; it provided for the ap-