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

asmsnt bang % marked between Mr. GlbsoR and Mr.,
Smith u viii Be necessary 70 reier % ne nintement c
AF. Bresln, % reconcile possible nm eenaions 'e'
.iR answer % your repusstto explain ihs ereun
stances of lean ma6e 10 Mr. Gibson from Sohn 1honp
son. An New YORK In June, 1855, my ree0 lection Is this
Vac upon casual Walt 70 New York and While tere
called upon Mr.. Gee and Mr.. Ludlow to mzke loan.
eospsrted Win Mr.. Glson and Mr. Smith, 6ok t4sa fa
Mao lork, An negotiating ne lean WIN John 1houp
son note given for Ae lean, and coliateras de-
oie vs. sven, or ne natuFe q the coIstsras deposit
ed The object Of this loan fnrnsh money 70 be
applied % s payment q the interest oi The sae debt
fssseaS n TSconciiins The testimony Of Gibson aud
Smith BresIin disagress with beth. tsl fEI
ThetIuth OF The whole matter a hai Gibson aseer
rase the means 70 meet the Interest due In Jny 1856; and
that upon consultation With Brssiin determinsd
purpose within their reach. The State Treasury as
aoretme con taned Domestic Bonds depo1lted by Banks
security for their circulating notes aud u believed
ther were Enrns fraudulent Domestic Stocks IN existence.
Breso borroWs the Of Smith, who Of course, must
have had satisfactory reasons for loanng his note for
so9 his O.i ,SfS esns Ss hsn MIN agssSSSs s sSss g
ala As appears by the testimony Of George g. Coe and
the letters Of Edwin Ludlow, cashier Of the Ohio Life In
suranoe and Trust Company, TO the Home 0ce az Gin.
onnau they endsayorea 70 borrow the money roqnired
SIS 600 OF S600o0 from the American Exchange Bank
and from the Trust Company xnd oaered ss eoaterals
to make tho loan. they disked the Appearance Of the
bonds and thought suspicious cscumaance that such
securities should S IN the posssssion sion q these Psraes
and upon the hypoheoaon Of these very questionable
securities. Thompson ascertained the securities were
Questionable and endeavored to obtain possession Of the
money but 1t had been paid by Gibson into the Trust
Company the credit Of the Fund CommislOners, and
Eeouid not be withdrawn. - g,t.. -a.-Ft
low Cashier Of tile New York once Of the Ohio Life In
sutance and Trust Company to Charles s,stson, Pres
dent Of the Company, CINCINNATI presents the trasac
9fs has been touch and CO. oday with tho Commits
sioners of the State Of Ohio Ia the matter Of the inter
est money. The Treasurer arrived here this morning,
and only had with him $3.50 900 to pay S4s00OO interest
That amount he deposited with as, with request t
should go on and pay He mas sdded to about $4,000
more making in all about S300p00 Luckily for them,
the payments to day less than that have notified
them that they must arrange With this afternoon,
pace the balance mere beiore zen % morrow morn
them about 100000 Of Domestic Bonds lot Of which
have seen They are bonds which have been brought
out from some dark corner IS they bear cancelled
MARY The above named gentlemen are dying around to.
day much to the annoyance Of the Attorney General
kimba, who does not appear 10 knew Of what Is going
something wrong somewhere What not the least sin.
gular part Of IT, they have only asked $4,000
the shape Of discount Of good paper and evdsnty
unwilling to let US know the extent Of their wants Their
outside operations OF course, reach me- and have heard
Of them at the American Exchange Bank Bank of Com.
metce John Thompson, Bank Of Republic and at Dun
can, Sherman 6 Co, They borrowed $4,000 Of John
Thompson, on $4,000 Of the bonds at heavy shave;
and he in turn took the securities into the Bank Of Re
public 10 get the amount at six per cent but they
declined Lending and at the time pointing their
objections. lie then got alarmed and called upon Gibson
and Bresn for return Of his check, which had been
given to me- and being credited to the account Of the
Commissioners Of the Sinking Fuud for the payment Of
interest, could not be disturbed except upon requsion
signed by i've Of the Commissioners and Il con.
veneut for Mr.. Gibson % call upon Mr.. Kimba to Join
him Id thht. -Fa "'te tNff @t -
Mr.! Coe States in his deposition, that sometime IN
ble5j, John g. Bresn came to my Office In the Amsrl.
Exchange Bank and wanted to make loan with Us,
and showed me- think, Domestic Stocks Of the State OF
Ohio collaterals. declined the loan. Stocks OF
similar character, to the amount Of $4,000 to S00000
were afterward referred to for inormaton on which
other parties requested to loan, advised against
it, from the fact that Dome tic Stocks Of the character
these appeared to be- seemed to be out Of their natural
channel in this MARKET" ft. Je tsE5 Fsi,
In what manner or by whom the note discounted by
Thompson paid, Is unknown. But that the transac.
ton was stained with fraud in some FORM ~ apparent
from the evidence und fron Gbson refusal to testify
to the character OF the colaterals. w 5. ~ ~
Al Incident connected with these Domestic Bonds came
to the knowledge Of Of our Commission, Orr Reeme.
linz who, In bis examination In New York. learned that
Thompson had borrowed some money Of Dir. Cunard up
on hypohecaton Of Ohio securities, and on appii
cation to that gentleman learned that the 9th Of June
1856 he loaned Thompson $4,000. On the 9th Of July,
Thompson paid 10000 On ths 9TH Of August secure
the balance Of S2OO0O he hypothecaed $4,000 Of Ohio
Stocks which Mr. Cunard, In few days thereafter upon
enquiry ascerained wore suspicious in their character
land Immediately thereupon requested from Mr.. Thomp.
Of august, 1855 ss 5IJ,saa -. -~.s.s. - !"
That puroined fraudulent domestic stocks were in
1.-The possession Of these parties. while Bresn
Office Is shown by the pretended deposit by the Seneca
County Bank. Of &c cfeate OF domestic stock No. 7q2
laon. No such certificate ever legally issued and
any was In existence, it was probably used in New
York on the occasion referred TO-. (.
In the form In which this transaction Is presented
coupled with his testimony before Mr.. Taylor Mr.. Gib
Is ntaly compromised both In his yeracity and
bsons management Of the internal affairs Of his Once
Tasin total disregard Of every obligation OF official duty
1t cannot be alleged that he incompetent for the s
charge Of the duties q hs position; for be has exhed
which, II directed to higher hects could have been made
available for the public good,r'ass ID t5atsg Al 5
lie absent from his Office the greater portion of the
time he was Treasurer During the political campaign
of 1885, he was at Columbus but liteth6 Office being
great extent, under the charge Of Mr. ershser the
cashier chief clerk, and Mr. W.o Spaythe Register
In the Bank department, who was formerly johnsons
and Brcsins Cashier Of the Elkhart County Bank and
agentor the purchase Of s deprecated CURRENCY and
ngs Bank. Mr.. Hershiser states that be never knew
GIBSON TO take an account Of the moneys In the Treas
ry neither did he himself know the exact amount
therein, for while his books would show how much there
should be, having had to the inner vault
he could not tell how much there actually was within it,
Probably nothing. Gibson would frequently INQUIRE
how much there should be- but neve sought to as
certain, by actual count, how much there was nei
fher did he ever enquire into the accounts but would
simply look over tho cash book when he came to Coium.
bus. Mr.. Hershiser frequently reported to him yoluna,
ry, and explained his transactions. Instead of being
Treasurer Of State to take charge Of the funds in the
Treasury his time engrossed by Watching and oper
ang with the funds outside of the Treasury. There
was nothing inside seemingly worthy Of his attention.
Mr. Gibson, while Treasurer, continued his connection
with the Seneca County Bank In every conceysbly obiea
ionabl9 FORM His transactions with IT. In the rst ak
months of 1856. amounted to oyer $300000. Through
this institution, and the THIN Bankers he manufactured
funds 70 any extent necessary to deceye committees Of
invesgation and to obtain questionable credit for the
Treasury On the lAh Of March, 1850 he held It's csrta
Gates and drafts to the amount Of 2 and on the
9eh OF March, he held S1l3078 59 and throughout bis
entire term he obtained from the Bank when necessary
~ .a 49, t,a a1p 4 within
State Treasury to make available to him in his eYnbar
rassments speculatons and even after his resignation
he Nsd IT. and en again he furnished the Bank when
n need the assistance OF the Treasury BY deposts nr
lection Of circulation, and BY the Issue Of fraudulent cir
euations az VIII appear To another part Of our report
the Treasury and Of his IDEAS Of the uses to which Ii
could be put not ONLY for the purpose of direct return OF
money to himself or the profits q advantages specu
ations, but to cre&tea community Of interest," and n
nal desire for secrecy and pTotecon the part OF other
Gt 4lss we need but refer to bis loan to Mr. kim
sssT1sy ss SSns e s sn q s sS ssn Pnd
chamberlain and bir. Kinhal hts brothernlaw is Is
stated IN ME. Taylors formed coparnership as
bal 4 Co.. and immediately thereafter received from
Mr Gibson adepos Of $4,000 Of the public funds un
pretencc Of returnilg 1t on tho ist Of the follow
In NoF York, This deposit was IN fact but loan 10 ts
fr and the farce 81 SELECTING them as public depostors
and q requiring them to give bond was gone through
with solely 10 deceive the public to the real intention
Of the parties They gave bond without date In the
$50 eoo and Philo Gbanberain one Of the rm, and
aud George w, Neil, and q. y! Chamberlan, were tRe
securities. The $4,000 was not paid in July following
and part Of il some 100000 0rof other deposits win
the frm, Is yet unpaid sft'5 y
These deposits for the purpose of transfer, free Of ex
change, to New York, or elsewhere were usually made
me rldcuous pretext for loans Mr. =, 8. Hamln in
bis testimony, says ths winter and spring Of Is57I