The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1859-03-02


Cashier Of the Elkhaft County and Seneca
County Banks, in folhlment OF bis agreement 70
protect Breslin, Johnson took from him all the
Newpo currency then in the Treasury--the
amount unknown-but Indicated by loan made
to one McArthnr, by the Seneca County Bank.
Whether the Treasury was ever reimbursed for
This currency is not proved.
II appears by Johnson's testimony that he has
q clam against Macarthur, "arising out Of busi-
ness transactions with him. and loan from
the Seneca County Bank. This loan was Of the
notes Of the Newport Safety Fund Bank returned
to johnson by Breslin, and amounted to over
800, 600. s- ~ eTl.la ~ ru..
But there was another item in the indebted
ness Of Macarthur in which Breslin assuredly
bad an interest. Johnson forwarded to him
50, 900, with which to take up, at the Ohio
Agency, for the redemption Of Western money in
Cincinnati, that amount Of Elkhart County
money He redeemed the circulation but again
used IL. and became O debtor to the ElkhaTt
Cashier for the amount To secure johnson for
This Indebtedness, which together now amounts
to about $50, 600, Macarthur has mortgaged some
property in Cincinnati, atthe corner of Main and
Third streets, which he now holds johnson
denies that Breslin has any interest IN this claim
but their interests were SO eoinmingled, that it is
ncitheruDiust nor improt able to believe, as long
hidden interest of Breslin's yet exists in this
property or claim Besides the connection be-
tween johnson and Breslin in this matter. there
were Dultitudes OF others quite as intricate, and
perhaps more confidential, srislng out OF the
- ''as SENECA COUNTY BANK.
With this insti uiion, from his entrance into
sofice to the close Of his last term, Breslin was
intimately connected; and yet he kept no account
with it on the books Of his office. 1t was natu-
.ral, as this bank was located 10 his place of res
lidence and all the parties interested in it person
ally known TO him, that his transactions with it
should have been somewhat extended and diver
sifed in their character. The bank had occu-
pied very nearrelations to the Treasury duringthe
term of Office Of his predecessor. In that part of
our report having more especial reference to that
bank, the duty Of particularly examining it be-
ing assigned to u.s. will be fully stated history
, of its organization and management-the con.
nection of the Treasury of the State with it, as
appears by the eaccounts--and every other circum'
stance by which the public can be fully enlight-
ened as to the causes of its failure the overssue
of its circulaton--and such other matters as
shall, as far as possible, carry out the wishes Of
the Legislature, and fulfill the expectations Of
the people in regard to it.
By the relations of the President, Mr.. Gibson,
and the Cashier, Mr. johnson, to MIR. Breslin, af-
ter this connection with the bank through his
aid, as We have heretofore stated, the treasury
was made available for every conceivable species
of uDiustihable outrage upon personal and official
integrity, and the laws Of the land. There is
neither excuse nor palliation for the conduct oi
either the President or Cashier Of the bank, OF
the Treasurer of State The bank became, To
the extent Of the wishes and demands of its
officers the reasury of State. Its currency was
received at the Treasury in packages for clrcua
tiop, and by the exchanges OF other currency fol
:, deposit for protection, Il became part OF that
extended system of financiering which had been
resorted to by the Treasurer, through the various
banking institutions in which he was interested
/. as ao illegal and dishonorable source of profit
as was expected; but tf disappointment, sad
misfortune and disgrace, as it has terminated.
$ 1t is not necessary we should state in detail
/ every improper or illegal transaction in which
| these parties were concerned. They will all ap
pear in the testimony at large, and to that, as i
| forms the basis Of all our conclusions and state
ments, we ask an earnest attention.
Mr. johnson seems to have possessed the hap
py faculty of obtaining from Mr. Breslin, in di
rect violation of law, as was known to both o
them, the circulating notes of the Seneca Count,
Bank, whenever necessary, without previous de
fpost of State Stocks as security. And this wa
/ with the knowledge Of Mr. Gibson, the President
who, johnson swears, was informed of the trans
action. This circulation was obtained by tn
I bank for the express purpose of enabling then
to purchase bonds for deposit, if for no wors
transactions Of $4,000, 1927 600, and $27,
900 of this character were discovered by an ex
animation of the books, and rs stated by John
son himself So extensive occasionally were To
! transactions b, tween Breslin and the bank, tina
}eyen Johnson, with all his boldness was force
to resort to peculiar expedients in order to give
color Of propriety TO them. He would obhi
from Bresln such large amounts Of currency
$20,000 and $50 900 at a time, that it would tax
two or three weeks for him to get it into his ban
in such manner as to justify its use. The none
would be deposited in the name OF bankers an
farmers, ami business men, in Titiin, or its
einity in amounts of from 81 900 to $5,000; an
certificates issued to Johnson's order partlt
whose names were used and appeared upon I'll
books as depositors, being entirely ignorant
the transaction This was done, that Bresl
who was the real depositor, might not appear
such upon the books Of the bank
The testimony of Mr. johnson is ofpeculiari int
rest, as it fully develops the relations subsisin
. and which doubtless continue osubsist betwet
I MIR Gibson. Mr. Breslin and himself On his Q
animation, he produced areceipt from Mr. Bresll
as evidence of settlement between them OF {
their accounts This receipt is not official in !
gard to either of them neither does it relate
the Elkhart County Bank, for that, Mr. Johns
states, is vet unsettled bat is evidence OF
/ settlement Of their private transactions onl
, The following is a copy Of the receipt, as Civ
in Mr. Johnson's deposition:
! "TTFIN, July 4, 1856.
Received of L. johnson, twenty-five the
, sand dollars, on account in full.
! s25.0O0. JOHN @. BREsLN.'
al, In regard to this as well TO every other ca
. transaction of John g. Breslin, while Treasu
Of state. and since, which amounted to over
! sum Of 81, 900 or $4 600, in which he represent
a himself as using OF depositing bis private fun
q we have no hesitation whatever in declaril
that it involved The use Of the funds Of
o Treasury, or the official credit of the Treasur
y and there is no man who had private trans
= y tim with Breslin--ore not recognized and
8 thorized by law as official,-to any greater
g tent than the sums we have stated, but ID
q have known, or had good reason to suspect,
e they were using, illegally and clandestnely,s
d funds OF The State. And any bank that KEEP
% deposit account with him upon its "individ
=, ledger. |. by which its Indebtedness was made
/, appesr to him individually, or that issued &C
4 fcates Of deposit to him individually. and
y officially, was, perhaps, unintentionaliy ac'
= hsry to his defalcation.
ss II will not answer to pass unnoticed anot
investment by Mr. Bresl N, on behalf Of
d State, of $l2,565 80, in the
or ~ 'F' Ono SAVINGS INsTITUTR,
70 at Tiffin, owned by Samuel Waggoner, gen
- man whose financial abilities have not been
l9 filmed to Seneca county alone, but have reac
q New York, Tennessee, Maryland and Te