, 1859-02-21
THE GREAT FRAUD. ;
Report ef The ftuate Investlgattng Committee
en- the Caual Cheek 6Windie.


THE CoMMIrTEE AUTHORIZED
TO CONTINUE TIE INVESTIGATION.
EEyATk, EF1txGy1EEh Fet. II, 1859.
The matter Of the alleged fE1uds upon tue Trea.
sury, by reason ofimrroper funding cauai SCRIP ar
checks has taken much Of the time Of your COM
nittee. and. amid thc bury aud labor Of ordi9ary
Legislative duties they hare not been able 90 fa'iy
to hear all matters relating to this subject is they
could bare desired. The testimony has been
taken in short hand by reporter: and most Of It
i not yet written out; nCr can 1t be prepared for
publication during the present session, even # it
14c1c thought proper TO do SO.
Your COMMITTEES cab therefore only state the
leading facts which have been deTeloped--aHnit."
ing future opportunity Of publishing detailed
rport Of tue whole proceedings.
1u the year 1889, the proper officers Of tue Nli-
nois and Michigan Canal, to meet their pecuniary
necessities, and your committee believe. pnrfuaae
10 lheir power, By law conferred, issued s2G5 ,237
Of what werc called 80 day checks, dated May !,
1885, aud due 80 days after date, and they nEso it.
sued $l23 SIT Of similar checks, dated August l,
1882 Tue=e checks were by them put ln circu
lalion for q temporary purpose, from tie eanal
Office at Lockpor, 1llnois, and were In part re-
deemed at the braucl Of the State Bank ct Illinois,
at Chicago, and part were received for dues to
The canal, or Otherwise redeemed at the canal
Office.
While preparing the amount 50 Issued, tue offi.
GERS who prepared md signed the chccka not
knowing bow many they might need, partially
executed and filled up for future use large
auouut Of other checks similar in their character,
w., Tsassnra,s nane f1iIsd e. 0uo Aa D'+
Hov lave m aTnmnt voa sn nsr4,,3fv arecutad
and filed up, yOur committee have not learned,
because no register WAS Kept Of it, there, nor, in
deed Of tie Others until they wers actuIly iss1cd
By tie Secretary for circulation, when he entered
tie omount Of The difIercnt de.nminatjons in a
hook kent for that mrnnsn finr, trhicb lie yna
af' n dnterr,ne tfte ameuot IN crc"iatsou At anv
ono t;me, ~
a. ~ these checks xyere onlv intended for tenno.
rary il nnneara fnom the renorts Of Ike carsl
o{;ce,s to thc Iecislature in liz year 1910. that
thev lad reileemeG and taken m ali OF 10th the
Nav anal AuEust issue. exeen, $50: trum similar
repotts made in 1872 ), il appears that only 1898
was then in circulation. and from various suisc-
quent reports this amount vas redu:ed to s3tG,
ed.
Genera! jacob Fry, the Treasurer Of tbe Canal
Board, aud Joel Manning, Secretary, testify that
in the fall OF 1870, they counted and packed in 4
large sealed box, the checks 50 redeemed, along
with other redeemed evidences OF catai indeb1-
edncss, and Mr. Manaing carried this box, with
other packages. to Chicago, and deposited it in
the branch state bank. This box they believe 10
nase; aIso, eontalned some ol the partlaA' execn"
Eo Suechs' y aPl'eats llo;a we Nssltneny .! ~.
q. neo%m, t" caSuef @ 81. .! ss,a oank, and = saef-
an. .caIt tnas 1ue ", lau otpSt nuAes u
SnaSs ~ ~ n tosm ~ .le saua' ~ o!nsets r.
NAMED IN sald bank undlstnroe9, 80 'ar rs they
knew, until tue year 1848, when It was rcmored to
.ue cana! olncs ~ CAasAso. ?uis pox WIN otaels,
INV hno bass1a iasAas ~ 1anat t mu'cn
tan peeu ~, Sa hau s saeaA
~ ~ . ~ " ~
s 1a eadDas tesstp'7 6ssa ~ TnI ! e@na gne7s 70
,,ett. !; m 1rooi 3afnr ne c6nnt+ea that o, er ~
tsse On ,r cacra 1rer ~ 49, ss n ~
excent to 4 reTy rn;ted and trifiinr a,nonnf soon
a1tsr 1ato &c M nd 1s41 peo a4a anoun' so'a
r. 7RsS Ioa;sh H. Roh.,f. u.s +, fac Mt
+..an Aor nae;n,ad .-s.tsn ~ W.. na
~ ~ aarsi 80 .ns.t =. TL:"a. -. 40 -;ss,
T-.~n az o." wsi. ~ pu.SuHus ~ .essI
atf;oa WI H. ~ sa;rst ~ ane as's's VI 'ns eanal
th;ss. a.anS,sH ~ ssom LII po1; .nIs ne
XIII aba 1:h;eson Haa tans4hsr -;.h a1s.haa ~
hor w;.t 1ooEa ia ~ ro1sr eoa,sin;n saL
n7s. ~ e,raf ~ a5ahssd.ssa ~h;;sh - ~ pss.
ce;ist with a ranesitn1 h"n,nsr ~h;e6 u sars saas
h,ntan md m he ra1tert. "a saS
~ aon.s;- e ;n.tsn.es .a ~ .oauS
~ ~ tIaau ~ ~ ao9 1nssance1 .ns aaounu notea
sn.a w wv - ~1sppo ppi iaet. aso 'GauE atse pseA
,;sI,r h.oran nnd nsrt 80 +h 1as a. 9 par
t'et "a'AeA' ~" Pa4t VI 'n7 eoa1e1io "e1e
mlsslng.
As asates he was adri8eQ 1T Hov. Wells. bis
predecessor, IN substance: that she *ouihers
Or ont and proTe correct, but auch as Were
There then Of the papers, vouchers md susn'-
1nre OF the ofhce, he reeelved from GoVernor
"ena
. he then advised Gov. Joel 4. Matteson, then
Gorernor Of the Sta1e. that he had received the
pooka, vouchers, &c, Of the canal office, and
tbat much useless matter Eas omorg them which
should be in aome way disposed OF, and BY the
direction Of Gov. hasteson ha packed al! Of the
evidences Of canal or other indebtedness which
be received from Gov. Wells in trunk Of box
tan ordinary shoe box) Tor transmission TO
ssa!ea &c; ho1 "h,ch ne had received from Gov.
"sis into the trunk and SHOE boz. but 1t was
loo large, ana ha broke It open end packed tho
contents elanef IN 1he trunk or IN the shoe bog,
OF part 10 each which be cannot certainly
a1ate. alter packing the trunk aud shoe box,
ne locked and eealed the trunk 8nd box, direct.
ca them TO aov. joel d. Matteson, at Spring
1sld. ILL.,; pet them on board the railroad at
chicago, and came With them to La Sale. en-
foute 'of spflngneld, iitDois, Where be pnt
soem IN caafge oi tto7' hatteson, WHO "as then
gni:g 10 Sprlpgheld.
mls'ee taat taa shoe boz has ever been seen
since. out tne trunk WAS foInd, dprlng the course
o. Inc lnSesughtion. In basement room Of the
oap'.al IN splngneld.
IL was opened tthere were upon it some ap-
pearance Of having been sealed twice, as it
opsnsa ano ssa1ea o&aln' ana the contents
tauna 70 sons.ss 81 Rteat VARIETY Of evioe3ess
o. canal inoebtedness, some complete, that bad
oeea IN cnoa!at!on and redeemed and cancelled,
anu soule unaals1eo scrip 8lso eancel!eo With
manner; n me whole eontenta counted "a near
y <z.ao9ooo OF al softe, although NJ McRob-
esM stated IN his report 70 GOV Nafteson in
is53. that the contents OF the trunk and box
dehEered ny him TO Gov. hatteoon, in the spring
OF that yssF, we're only estimated to amount TO
apoaf <d5o, Qto
1t Was omitted in the proper p9ase 10 state
Mr. Manning stated TO have been placed with re-.
deemed and incomplete scrip and checks, and
by him deposited III tbs Chicago Bank, was tax
en- bg him from the bank to tho canal Office, in
the year l647, and was the same that Mckoherts I
broke up ind repscked in the trunk and shoe
box delivered to Governor Aatteson in 1883,
General Hart l.. Stuart also testiHes in Sub.
starce, TINT for several years frcm and after I
ls47, be wss engaged il buying all kinds Of pub
Chicago and in The citv Of New York: that he
advertised in the papers in she latter CITY his DE-
sire and reBdinesa 70 bpy such indebtedness, |
and did actually purchase bstHsen four and hre
hundred thousand dollars Of snch Indebtedness,
among all Of which be saw, to this best of his re-
collection. hut little over one hundred dollsys
Of the checks Of 1889, ard thoss OF emal1 de- |
nomination.
Gov. joel 4. Mattesou VIVA Governor Of this |
State frou January. 1S53 tn L.nn.rv 1877 -
1t appears TINT IL December. 1864. iu,t beiofs (
the c!ose OF bis term Of o3Icr shout xIs fes1 ~
amount Of The checks Of 1899 ahoTe descrihed
were hY Gov, NafteRon nresetted to Mr. Monre
Secret9ry of the Fund f!omm;ss;on~rs ard 49,
state bonds issued the,eior. thxt dur;no tha
wear 1857. shout fa3 E7f} add,tfon.i If the .,n,s
checks vera by Gov. Matteson presented to he |