The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1859-04-27

took place of similar character. 1t is
very peculiar feature in AGibson's case,
that with an effrontery knowing no bounds
he dares, again, to present himself to the
officers of the State, proposing his schemes
for obtaining in some form the use of the
public money. The most recent transac-
tion, aud one in direct violation of law,
and of every correct principle of official
business, took place about year since,
or nine months after his resignation, and
eight months after he had been indicted
for embezzling the funds of the Treasury.
The law of 1856 made it the duty of the
Fund Commissioners to remit to New
I ork the accumulations of Sinking Fund
in the Treasury as rapidly as they amount
ed to $4,000. Gibson, presuming upon
the continued friendship and regard for
his interests on the part of certain State
officials, Notwithstanding his and Breslin's
embezzlements, and ascertaining that the
people of Ohio were again accumulating
little money into an emotied Treasury,
sets to work to make part of it tempo
rarily available for his own uses. At the
time alluded to, the s hiking Fund had
some $4,000 in the Treasury, to be used
as previously indicated, and Mr. Gibson
being aware of it, proposed to the Acting
Fund Commissioner, (Auditor Wright,)
to transfer to New York free of exchange
--Qhe old form of borrowing from the
State Treasury)-$l4,OOO of the accumu-
lated fund. Mr.. Gibson was personally
aided, in this renewed attempt at reaching
the Treasury, by his former assistant
Charles l.. Johnson, who proposed as an
additional inducement, to release the State
from any further liability to the Seneca
County Bank on account of the $32,12S
transactions with the State bonds. Mr..
Wright advised with Gov. Chase upon the
subject.
The Governor did not recognize any
obligation as existing on the part of the
State to the Seneca County Bank, and
therefore could not consider that alone
sufficient inducement to entertain the
proposition, but thought with Mr.. Wright
that it was otherwise advantageous to the
State. Mr.. Gibson had neither money
nor exchange but needed loan. To
avoid being publicly known as borrow
er at the State Treasury, he uses, as
aforetime, the names of Bartliit 81 Smith,
who gave their drafts on New York for
50, 600 each, at 80, 40, GO and 80 days,
endorsed by q Mr.. Comstock, of Colum
bus, which drafts were discounted at six
per cent, by Mr.. Wright, and the pro-
ceeds paid to Bartlitt & Smith for Mr..
Gibson and Charles L. johnson. At first
only $4,000 thus passed from the State
Treasury into Gibson's hands, but subse-
quently another transaction of like char
acter for 5000 was had. as we must be-
lieve, for Mr.. Gibson's benefit. A law
having passed providing for temporary
State loan, it was known that from it all
funds needed in New York would be fur
nished, and therefore, after the payment
of the first draft by Bartlitt & Smith, an
arrangement was made by Mr.. Wright
for the balance of the drafts to be paid at
the State Treasury in Columbus, and
they were so paid at maturity. Present.
ing this transaction in the light in which
it should appear to the public, stripped of
the fimsy covering of an erchange trans
action with which, it is attempted to sur
round it, and it becomes what Gibson
aud johnson knew it to be, loan to
them of 81 700 from the State Treasury.
on Bartlitt & Smiths paper, endorsed by
| Comstock.
Here we find, that notwithstanding all
| the losses which have resulted to the
Treasury from similar transactions by
Breslin and Gibson, and which were known
to the State officers. Gov. Chase, Auditor
| Wright, and the Treasurer of State who
was consulted as to Mr.. Comstock's res
possibility as an endorser, and approved
of the transaction, make loan of money
to Mr.. Gibson and johnson under the
pretence of selling the State exchange
All the lessons of the past of the nefarious
transactions of the defaulting Treasurers
seem to have been soon forgotten, and
Gibson and johnson were again permis-
ted to approach the Treasury, and secure
temporary use of the public funds. which
the law and public justice should have de.
MED to them.
1t appears from the testimony of F. M.
Wright, Esq, Auditor of State, as well as
from that of Gov. Ford and Mr.. Gibson,
that in lS56---'7 an effort was made on
the part of e. S Hamlin and Colonel
Schouler, of the Cincinnati Gazette to
purchase or obtain the control of the
Ohio State Journal from Follet, Foster &
Co., Hamlin did not wish to appear as
one of the parties to the purchase, and
accordingly went to F. M Wright. the
Auditor, and requested him to give his
note, or to become endorser on the part
of Schouler g. Co. Wright expressed an
unwilllngness at first to incur any liabil-
|ity in reference to il. After an interview
with Gov. Chase, Hamlin presented to Mr..
Wright a letter from the Governor. as.