The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1859-02-12

OTTAWA, FEBRUARY II, 1859.
Strange DeyeIopemeutsa at Sprinsfeld--Is-
sue of state Bonds on Fraudulent In
deb,edness..The state SwIndled cut Of
S2OO, 600!
All the newspapers-the very alr-has
been full of the strangest reports from
Springfield during the week, of the discovery
Of astounding frauds upon the State, by
which she has been robbed Of over $20O, 600.
There are so many conflicting rumors atioat
CD the subject, and so much IS SAID that
seems to have no solid foundation, that 1t Is
difficult to give the real facts that have tEus
far been developed; but substantially we
believe they stand about as follows:
tappears, in 1889, while our canal was
in rapid progress Of construction, the State
had negotiated loan of 100000 from
the U. s. Bank. For some reason, one or
tive instruments we're not received at exact
" the expected time at the Branch Of the
Illinois State Bank at Chicago, in which the
canal money was deposited, and in anticipa-
ton of the instruments, the canal board is
sued checks on the Branch at Chicago pay
able in 80 days. Some 100000 of these
checks we're issued, and for year or two
were afloat in this region, as many of our
old settlers recollect, as the common curren-
cy of the country. Not long after the issue,
this scrip was largely counterfeited, and we
recollect that Otis Allen and some others
were tried and sent to the penitentiary for
the offence. By 1914, however, the genuine
checks had all been redeemed except S316,
which were supposed to have been lost, and
none but counterfeits were believed to be
afioat.
On the I'd inst, Mr.. Campbell, Represen-
tative from this county, showed one Of these
checks to Gen. Fry, who, knowing the gen.
uine had all beer redeemed, pronounced it
a counterfeit, and Immediately proceeded to
the Auditors Office to caution him against
them. The Auditor looked up pile Of ca
nal indebtedness that had within the last
few years been funded, and to his astonish-
ment discovered that large amount consis-
ted of these checks. The first conclusion
come to was, that the State officers had been
imposed upon and that they were counter
feits. On close examination, however, to
the further astonishment Of all present, 1t
was found that they were not counterielts,
but genuine. 1t was evident great fraud
upon the State had been committed. The
III hron before
the Senate, and the finance committee in
structed to send for persons and papers and
probe the matter to the bottom. That com
mittee have not yet completed their investi-
cations, and of course the facts given below
as elected by their investigation are only
such as are caught up by outsiders, and fire.
quently distorted in passing from mouth to
mouth.
The testimony of Gen. Fry, John A.
McLcarnaud, and others, showed, that these
checks after having been redeemed in Is
80 40, &C., by the Branch Banks at Chica
60, had net been cancelled, except those in
boxes and turned over to the Canal Office
When Gov. Wells was appointed Trustee
they were turned over to him he turned
them over to his successor, &C., until they
came into the hands of Mr. McRoberts.-
He, the porter in the canal Office at Chica-
60 testifes, had them put up in trunk and
a shoe box, directed On the outside to 81.
A. Mattessn, Governor of Springfield" AT
carried to the Rock Island depot and put in
baggage car to be thus forwarded, Mr..
McRoberts going as passenger with the
train. The trunk, which contained the
smaller checks and other cancelled canal in
debtedness, appears to have arrived safely
at Sprnfield and is there still, with its con-
tents; but of the box, which is supposed to
have contained these checks, no further &C
count whatever can be given.
The first temperance Of the checks was
January 9th, 1857, when Gov Natteson,
along with large amount of other State in
debtedness, presented 5000 of them to
Enoch Moore, the clerk of the fund commits
sioner at SPrinc field Cthe Governor--then
Bisseli-is er oticio fund CO nmissioner) and
received for them State bonds. In February
and March following he presented further
large sums of these checks, in the names Of
dozen different persons, amounting in all
te over 100000, and at later dates still fur
Their sums were presented and funded, until
the sum total is said to reach S21O 900.
How die they come into the possession OF
Gov. Mattcson? His own account is (for
Gov. 81. is present with the committee, and
apparently the most anxious man among
them to slit the matter thoroughly that he
bought them, along with 81 900, coo of 9th
er State Indebtedness, Of different individu
ais, to deposte with the Auditor as security
for the circulation of his banks. He recol-
lects the names Of but few. Among those
be recollects were l.. P. Sanger and B. C..
Cook of this city, who both testify that in
1856 they sold to Gov. Matteson some 81
200 to $500 each Of these checks; but
most Of them he thinks came from n York
Mr.. Sanger teslifies that he bought his in
Litchfeld's Office, in New York.
The testimony of Mr.. McRoberts, who &C.
companied that mysterious box from Chica
go on the Rock Island Railroad, would be
important to afford a clue Of its manner OF
disappearance; and a correspondent Of the
Chicago Press says the committee are en-
barrassed in their action by his strange alb
sence. He was summoned to appear before
them but day or two after the fraud was
discovered, left home for Washington, "Ne
one accuses him Of completely in the affair
but there is a general expression of regret
that he is not here to add his testimony tc
that Of the other witnesses. He has been