Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-03-24

was that the money to my credit in the CITY
Bank of Cincinnati whether it consisted Of un.
paid dividends or deposits was paid into the
Treasury
As to the causes of my deficit of $e5, 900,
the coDmitte are clearly Of the opinion that it
was produced by some rascality of nine
Whatever may have been the cause, know it
never would have happened if there had been
sufficient clerical force in the Office. The same
amount Of assistance was provided in nv time
as in former years; but the business had large
ly increased. 1t would not be considered verv
safe for Bank that was handling three or four
millions Of dollars annually, to permit its books
to run for weeks and months without being bal
aneed. yet it was the case in the Treasury office
While there is no safety unless the books are
balanced every day in any well regulated Bank,
In the Treasury there WASH serious effort TO do
1t, FORT could not be done. Always, from the
commencement Of the sessions of the Legisla-
ture to the close, there was other business
enough to occupy the time; and, subsequently,
during the Summer the books were written up.
In this state of the case should mistake occur,
it would not be likely to be known. For such
state of things, do not consider myself ne
sponsible, although think am very blameable
for acquiescing in, and submitting to it. But
did not realize the danger till it was too late.
endeayored to impress upon Mr. Breslin the ab-
solute necessity of change in this particular:
that he would not be safe for week unless his
books were balanced daily, and would not be
free from danger unless he continued it thor
oughly through his term. When commenced
the examination for the purpose of discovering
the cause Of the deficit l supposed it was occa-
stoned by wrong entries in the books. In the
process of the examination various ways were
found that had not before been realized in which
money might have been lost, or where I might
not have obtained the credits to which was en-
titled. 1t was also seen that at that late date it
was almost impossible to find clue to any loss
es, not knowing when they may have occurred.
Had the books been balanced daily, so that the
exact state Of the accounts could at any time
have been seen, and had any loss occurred, Ell
ther from want of proper credits, or in any
other way, it is probable that clue could have
been found, and the deficit ascertained and rec
titled. Twill here refer to some of the ways in
which money might have been lost.
The system of keeping accounts with the
Board Of Public Works was very imperfect
one. The checks Of the Acting Commissioners,
amounting TO three or four hundred thousand
dollars annually were made directly upon the
Treasurer, andpaid on presentation. If the paid
checks had been cancelled and the proper en-
tries made daily on the books, it would have
been right. But it was frequently the case that
a large number Of these checks would accumu-
late before the proper entries could be made,
and the books written up. 1t will be seen, that
should any Of these checks be lost before being
entered on the books l should get no credit for
that amount whatever it might be. Checks to
the amount Of 81, 500, / assertained had been
paid, for which have never yet received acred-
it. Checks to this amount, one of 81, 200, /
think, aud two or three smaller ones making
81, ,505 were on one occasion redeemed by
Bank in Zanesvilte, and transmitted for credit.
There was credit made in the bank account,
but no trace of the checks themselves, nor Of
any other entry with regard to them can be
found. Ipaid the amount to the Bank, but have
no credit on the books of the Office IF these
checks had been presented directly to the Treas
urer, paid and then lost, probably the fact would
never have been known. 1t was through the
entries in the Bank account that the loss was
discovered.
On the goth of December Of each year, the
County Treasures were required to pay into the
State Treasury that proportion of the State tax
es which had been collected This was to be
turned into exchange, and placed in New York
on the 1st of January following. The money
was usually deposited in banks in all parts of the
State. There was rot time in the ten days that
between the time of making the de-
posit and the lst of Jannary to transmit the mo-
ney to Columbus and then procure exchange and
have it in New York in time. 1t was arranged,
with the banks generally, on receiving
the deposit to forward it directly to the Trust
Company in New York This money to the
amount Of half million dollars and sometimes
more, was forwarded in sums of $4,000 or less,
TO S25, 600 or more, in large number of differ
ent items. Some portions of it would be for
warded directly to the credit of the Treasury
and other portions the credit Of the Fund Com
missioners. We sometimes would receive lac
count Of money sent, as having been transmit
ted 70 the credit Of the Treasury when perhaps
it would really be to the credit of the Fund Com
missioners. And also money purporting to be
sent to the credit Of the Fund Commissioners
would be TO the credit of the Treasury Subse-
Quently in adjusting these accounts, difficulties
would occur, and have always feared that errors
were made in connection with these transactions
either by wrong credit, in New York or in some
other way. Such errors could not be detected
without lengthy examination for which I have
had no opportunity.
There was also greater liability to error
than there otherwise would have been, in the
fact, that the funds Of the State were kept in so
large number Of repositories, instead Of being
kept in the Treasury. 1t multiplied, and in-
reasedvery much the labor and risk of keeping
the accounts and with the lack of force in the
Office, added to the liability to error. But what
the apparent deficiency, and wheth-
or it had any connection whatever with either
Of the matters above alluded to, or whether it
was brought about in some other way, 1 cannot
tell. l perhaps shall never know. But have
this satisfaction that although it has cost trouble
and anxiety to others, as well as to myself the
pecuniary loss is entirely my own, and every
dollar that was due the State has been paid by
me alone
The Commissioners find, in my general con-
duct, proof satisfactory to themselves of deep
guilt They allege that they have given me
"every opportunity to exoneFate mYseh from
that for long time omitted to
avail myself of those opportunities insomuch
that they finally lame to suspect Intentionally
avoided them; Fin fact, positively refused to
appear before Them And when they finally
presented themselves at my house, and 1 was
compelled to testify, no papers o. memeran-
da were produced according to the requirements
of the subpoena. They call attention to two
letters attached 70 the report as best exhibiting
my feelings and fears To all this is added the
fact which j. regarded as the most significant of
all, that was present in Columbus when the
defalcation of my successor was made known,
and have been intensely anxious ever siAee.
To this | desire to make a Wsrd Of reply.
was suhpeenaed to appear before the CoFa-
mittee in Columbus on the 22d or 23d of July,
By service 'of the Committees process at my
house. Twas then absent from the State, and
heard of the subpoena by accident. came
home two or three weeks earlier than should
otherwise have done, for the purpose Of appear
ing before the Committee, and was enabled to
arrive in Columbus on the day named. But the
0ammittee had leff town altar rarnainirc, fhara