The Nevada journal., 1858-11-19
Friday Morning. November 10Th. 1858
Another Fraud npOn the State.

upon the State. Twenty-Five thousand
dollars in warrants paid years ago, but
which through the carelessness of the
occupants ofthe State Treasurer's Office
at the time, were not defaced, have been
distracted from the vaults of the Treas
ury department, and presented for
funding at the counter of the present
Treasurer and bonds have been issued
therefor. The fraud has been discovered
but too late.
Who purloined the Contr oler's war
rants is, and perhaps ever will remain
my stery. Wells, Fargo&Co. presented
the warrants for funding, as the agents
of others, as they have done for
numerous parties living iu the Atlantic
states and Europe. The State Treas
urer for some reason best known to
himself, insisted on making the presen-
tor of claims the principal to whom new
bonds are issued, When the fraud be-
came known, the Treasurer, acting upon
the advice of the Attorney General, de-
manded Of Wells, Fargo & Co. repay
ment for bonds issued them as principals
without just consideration. In default
of payment, sui: has been commenced
against them for recovery. Thus stands
he case.
We hazard the prediction that the
State in this as in her attempts to recov-
er escheated estates, and to compel the
P. N. steam ship company to pay taxes
in this State, will e1pend thousands of
dollars and accomplish nothing Our rea-
sons are, first, because it is the almost
nvariable rlle, and second, because the
acts are, to our mind, greatly in favor
of Wells, Fargo & Co.
This firm has sharp business men to
conduct its affairs in this State and else
where. Some of its agents are better
posted on the transactions of the treas
ury and other departments of the State,
than many of the States agents 1t is
presumable that the firm took no respon-
sibility in dealing with the State Treas
urer in the transaction for which the suit
has been brought, which was not taken
deliberately or advisedly. The records
of the State were before the agents of
Wells, Fargo & Co. They examined
them carefully, and with an eye to the
responsibility they might assume by in
considerate, hasty, or criminal action.
They might, when the stolen scrip came
TO their hands. have taken the precau-
ton to investigate the records of the
State to see if chance of fraud existed
They might have heard, or they might
not, that Controllers warrants were
found in 1856 in the vaults of the Treas
ury in perfect state and undefaced
though the redemption register kept in
the Office showed these warrants had
been redeemed. 1t would occur to these
men of business, that at least when at
tention was called to the fact of the ex-
istence of these undefaced warrants, that
some steps would be taken to spoil them
for future circulation. The agent of
Wells, Fargo & Co. might have discov-
cred, and perhaps did discover that a
committee had been raised in the two
houses Of the Legislature for this rery
purpose. 1t might be taken as fact
that the committee discharged its duties,
and defaced those warrants, especially
as nothing to the contrary appears on
the record. The State then had left the
business world to understand by her
published journals that.no spurious or
invalid warrants were left an existence
to cheat the people.
And as further protection to herself
she had Treasurer to guard her
against illegal claims, whose implied
duty it was to examine each evidence
of a claim as it was presented to see
that it was Just and right. The Treas
urer had the touchstone in his own hand
bv which to test the stolen warrants.
He had the Redemption Register of one
of his predecessors in which 1t is record
ed that these stolen warrants had once
been paid. To this document Wetie'
FARGO g. Co. had no access, The evil
dence given them and the public by the
State was that the warrants were good.
The eridence to the contrary 'cas only ac-
ce,sible to the agents Of tie State.
But the State established othe' guards.
Two other Gerber were set to guard the
portals of the Treasury. Section 10th
Of the State Debt Act which was voted
upon and adopted by the people in 1857
says;
"It shall be the duty of the Governor
T. Controller to attend, at least once In
,,,on+b ut the Treasurer's ofhce,