The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-03-13
TREASURY DEFALCATION IN OHIO.
NEARLY 100000 ABSTRACTED.
REPORT OF THE INVESTIGATING COMMISSION.
Extraordinary Operations Of the Three
TreaguVerS.
Banks and Railroad Companies Involved
Chittenden (Banker), Of New York,
and the Clio Life Insurance
and Trust Company,

The Ohio State Journal publishes extra of fifty
columns, than pages, which would make q
book siderable size giving report of the Invest-
eating Commission appointed by the Legislature to inquire
into extensive frauds committed on the State Treasury
during the period which successive reasurers have
held Office. presented 10 the Legislature the Sth
instant, accompanied by message from Governor Chase
The report, and the evidence which is founded are
voumnOus that the details would be too tedious
readers, our space permitted the insertion of the
extended report The points, however, are Of sufficient
public interest possess claim upon columns An
amount OF rascalty laid bare which highly Instructive
to the people, The total amount robbed from the Treas
uy during the three administrations ascertaned by the
Commissioners to be 1851 ,8ll.
Governor Chase in his message, maintains that the
appointment OF the Commissioners illegal and
Unconstitutional the part of the Assembiy-that
they might appoint committee Of their own body aud
name its members-lbat they could even create a CON-
mission Of citizens who not OF their body thew did
DO, but that there their constitutional power ended and
Mat they had no right 70 name or appoint the Commission
ers ivcge which the constitution did not vest in the
Legislature, but in the Executive.
The Governor however did not wish to throw any diff
euks in the way, but evinced his desire to fula the
wishes Of the Assembly The Legislature notwthstaud-
ing, felt rather indignant this message In the House
laid The table, in the Senate resolution offered
by Mr. Saord ordering to be printed with the executive
documents was adopted. The majority in both houses
refused 10 allow the message TO 60 " the people with the
report
were Messre A. p. Edgerton, Charles Reemeln and W. b.
Morgan. They opened their report with apology for
lis enormous length but state that their specific instruc
tOns lett them option. Mr. Reemcin, doubling the
consutonaty Of the creation OF the commission scruped
70 serve until the opinion Of the courts had been obtained
The decision having proved favorable the commission
proceeded with its dnties and took up in turn cases
cf Albert A. Blss, John g. Brcs!in and VIM. a. Gibson
These parties successfully State Treasurers of Ohio
The commission examined the accounts OF each and re-
port In detail
The commission speak of the difficulties they epco.n
n Dnft thnr 1vr unft Tho
course pursued towards the three deaung Treasuers
who in their opinion should have all been arrested when
the defalcation first became known and their books
papers immediately subjected 10 examination They
. say;m
There are some who have appeared before us as un-
wiling witnesses, who have, believe, withheld the
whole truth. Had they presented all the facts and
plantations in their power, which earnestly desred they
should do, our opinions and conclusions might have beer
materially changed or modified II to such We seem un
just or too evere they have TO condemn
but themselves
we beg n 70 remember that We were directed TO eya
mine into deeds and practices from two 10 twelve years
after they happened,hat they deeds of darkness
from their very orgin-and that books and papers, as
well as mems memories do tgrow stronger and brighten
in the progress Of time, but weaker loss re-
liable There had been just enough investigation to make
the wrong dcers adrot IN hiding their acts and
lnventing most plausible explanations with which to mis-
head their examiners.
The pursued towards the dcfauting Treasurers
mme datcly alter the deacation became known, not
Calculated diminish the ntricaces OF subsequent nvcs
tgaops The three freasurers all In the city hover
ng around The Of their misdeodr and should IN
opnon have all been arrested and their books and
papers subjected to the closest scrutiny and we cannot
their existence would have been found, making all srbse
quen, examinations comparatively easy"
ALBERT A. BLISS, DEFAuIT1SG TREASURER 40 /.
The inability OF Mr. Bss, (who state Treasurer for
two terms from March, ls4 TO January, 1922 to to
inquiries, which met by Mr.. Bresn, to whom they
directed By a an unfortunate attempt conceai
m.nt" OF subsequent Developments the public are now
informed. 10 appears that Bliss poor when he took
the office and that his suretes parties with whom
he had personal acquaintance but who backed him
order profit by his personal obligation 10 them order
. TO make Of the public money. These gentlemen,
eight n number were with exception residents the
city of Columbus these suretes was president Of
the Clinton Bank OF Columbus, who swears he became
cury in order TO the benefit of the deposits, and
appears that the Treasury was source oprot 70 various
banks and bankers for many years.
MIR. Bliss states in bis testimony that the time his
accounts were made up he found deficiency for which
ne was unable to account and attributed IL to wrong
tres IN The books or the loss Of cash in way
known 70 me-" Tae committee says
awe have adopted sevefa methods OF determining the
amount due from Mr. Bliss to Mr. Br sin, all OF which
produced substantially the result The fact that
provsion made by law for full and perfect adjust
of all accounts both In the Treasurers and AUDITORS
has tended much by the absence Of proper checks pro-
duce the dealcaton, and now renders it exceedingly dit
hcut 10 arrive at sateactory or truthful result The
Auditor had no official knowledge Of the settlement by
Treasurer with another. The accounts his Office were
In fact with the Treasurer Of State although in form with
the Individual Treasurer and continued from one fiscal
year another intermediate balances by the Treasurers
not being recoenzed and the accounts not verified until
the end Of the fiscal year."
The testimony Of w. g. Dcshler, Mr. Noodle D. w. Desh-
ler and Thomas Hcaton shows that Mr.. Bliss the
Cpent Of interest his deposits Of funds OF the treasury
does not appear that he accounted to the State
for any portion Of it The amount he received i'm.
POSSIBLE to ascertain.
Mr. Heaton testiHes that Mr.. Bliss kept running &C.
count with the bank in hs Treasurer OF State
averaging from $4,000 TO $50 o00 that in 1851 $4,000
the amount standing TO his credit diverted from his
official account and invested In the stock of the bank that
he gave his check on his official account for the Ooo
ana received two certificates n the Of two OF his
Trends in the northern part Of tho State that during the
time he held the stock he received dividends upon it, and
that was afterwards retranserred TO John Resuor
Evidence more conclusive could not be required that this
$50 000 Of stock purchased with moneys belonging
he treasury, and which not refunded until near or
sfter the expiration of his term Of Office
So various the modes Of conccament resortcd
banks Of the payment of interest in such any
nber illegal transaction that enly BY accident that
he casual examiner obtain any clue 10 extent,
ven fraction Of the amount Unquestionabiy, large
sums, for interest, received by MIR. Bliss from var
us sources, Of which no definite Intelligence ever
each the public. Shortly after Mr. Bliss became
er, be commenced purchasing and specuatiDg in real
state In and near the city Of Columbus.
Near the expiration OF Bliss term of Office he
avc made an arrangement with his successor John G.
sresln, for the adjustment Of balances" The COM
mission has ascertained that the amount which should
have been paid In cash TO Breslin 1904 3f5 Brcsin
his report to the Senate, states that he received
246,676. The report says
One Of the inexplicabe circumstances in the settle
ncnt between these gentlemen is, that paper
anoum, or statement receipt is found or known to
nanner of settlement Of the amount asccrained to be
|ne, or Of the money actually paid.
Mr. Breslin, at the time Of his settlement with Mr..
es received from him certificate of deposit of ". e.
brenden banker, New York, for S4S AGA TO- as money
nich was 10 violation Of law and Of every Just OF
hcla conduct, and either by his remissness by
nc anSce o' Mr.. Bss, the larger portion OF lost
tne Ssa.e. In our opinion this sum not in fact
vaaoie 70 Mr. Bliss as money when he sought TO trans
TO Bresln and hence his solicitation that should
perm,ea ,e , 70 remain rem uodsturbed in Mr. Chendens
.tun msna us & .e 'uy following Inducements to withhold
"a Xr Erceiin mn
scotaa IN the testimony for, unfortunately for the
Oh tnesc men, rs well for the interests of tho
rAte, .ney are unying witnesses. As this never was
OF money by Mr. Miss to the State Treasury or
ne s,a'1 I reasurer even, we cannot by what rule
law, or ny what principe Of Justice he or his srcties
an be discharged from their liability for tho payment Of
he balance due Of s35 ,ooe or sac, ,0ooD
III s roor oe aas ny Bliss 70 the treasury $685.
be commission paid no attention TO subp@nas and was
nally waited upon at the town Of Elyria by the Com
sssioners in person But even then Mr. Bps refused "a
rodueo papers or memoranda ~ "