Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1859-02-12
From the Milwaukee Sentinel, 9th.
Astounding Fraud in Illineis!
The State Plundered Of $685., OO0!-
Er Governor IMdtteson Implicated.

DeeH discovered, ana winch, IL Is
thought, will lead to the exposure of a
startling degree of corruptions on the
part Of some persons who have had
connection with the State papers. The
of the fraud, so far as
developed, are these:
In 1889, during the progress of the
Illinois and Michigan Canal, the Canal
Commissioners negotiated a loan of
81 100000 with the United States
Bank; for some reasons the installments
for May Of that year were not paid;
the Commissioners, to meet the emer-
gency, issued 100000 in checks on
the Branch of the State Bank at Chi
cage; these and subsequent issue of
$4,000 in August Of that year were
redeemed. In 1914 there was out
standing an amount equal to $3l6.-
Under the act of 1917, holders of Ca
nal or other State indebtedness were
permitted to fund it and receive there
for interest paying bonds; on the 9th
day of January, 1857, Gov. Matteson,
then In office, presented to his clerk
$4,000 of these checks of 1889, and
bonds were issued thereupon in the
name Of Caleb johnson; few days an
terror to the 9th of February of the
same year, Matteson, then out of office,
presented to the same clerk, packages
Of these same checks, containing in all
$4,000, and bonds were issued for
them also; shortly before the 18th Of
March of the same year, 81, Gov.
Matteson presented s3l 500 in checks,
and for these, bonds were issued as be-
fore; these facts were made public By
the discovery Of these checks in the
Auditors office by Gen. Fry, an old
Commissioner, who supposed them to
be counterfeit
The Senate Committee have now en-
tered into an examination of the mat
ter, and, az we learn from the Press
and Tribune of yesterday:
''It now appears by the evidence of
w. II. Brown and Ezra L. Sherman,
one the Cashier and the other the Tel
Ter Of the Chicago Branch Bank, that
the checks are genuine-that there is
not a counterfeit in the lot; and that
when received by the Bank, they were
counted as cash and not cancelled; that
many Of them, by endorsements on the
back made by correspondents in St.
Louis, Cincinnati, Alton and Michigan
City, directly to Cashier Brown, are
recognized as having gone through the
Bank and once paid. 1t appears fur
Their. that after payment they were
handed over to the Treasurer or some
other officer Of the Canal Board.
Gov. Matteson says that he bought
them, by himself and agents, of various
parties names not mentioned: and it is
admitted by all that they must have
been by somebody surreptitiously and
fraudulently obtained. This is likely
from the evidence of Michael Kehoe,
porter for many years, in the Canal Of
tce on Lake Street. He swears that
when J. McRoberts, of Joliet, took
possession Of the Canal office as Trus-
tee, he found in the Safe and in a coup
lie of boxes very large amount of re-
deemed evidences Of Canal indebted
ness-scrip of various kinds and dates,
checks, cancelled bonds, &c. These.
McRoberts and Kehoe packed in
large packing trunk and in pine shoe
box, both of which were fastened up
and sealed with wax and the office seal.
Kehoe himself took. them to the Rock
Island Railroad, saw the direction
>'Hon. J. a. Matteson, Springfield" on
each, and saw them put into the bag
gage car, McRoberts being passenger
on the train AID having them in charge.
The Tribune learns further, in confirm
alton of Kehoe's testimony, that search
was made on Friday last in the base
ment rooms Of the State House, and
that the trunk Of which he speaks was
found, the seals unbroken; but that the
shoe-box has thus far eluded search
kehoe does not know what kinds of in
debtedness were thus sent, or whether
there were any of these so day checks
in the box or not
In view Of these facts, the Press and
Tribune adds:
The magnitude Of the swindlc-in-
voiving over 100000, principal and
high position occupied by
Gov. Matteson, and the intense ankle
ty of his friends, in which we partici-
pate, for his exculpation, make the affair
one OF much more than ordinary inter-
est; and its full examination cannot be
prevented. 1t must be admitted that
the Governors position is critical
one. That he will be able to show |
that he came by the checks honestly
by purchase; that he will be able to
produce the unknown and mysterious
person to whom, cor bearer" the bonds
were issued, and that he will be able
TO show reason why his own name was