The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1859-03-02

mutual accounts. With such, settlements will be
made quarterly.
The Great Illinois fraud.
Twenty years ago, during the progress OF
the public improvements in Illinois, the Com
missioners negotiated a loan for the benefit
OF the Illinois and Michigan Canal. During
the tendency of the loan, checks we're drawn
by the Commissioners to the amount OF
three or four hundred thousand dollars on
the bank. In l647 an Act of the Legisla-
ture was passed, providing that persons
holding this paper, or canal indebtedness of
any kind, we're allowed to exchange it for
State bonds bearing interest, and subsequent
ly terms still more favorable were proposed,
and the holders OF such Indebtedness were
paid one-half in cash and the balance in
State bonds.
During Governor Matteson's term Of Office
he presented to the Clerk Of the Commits
sioners, who was also his own clerk ON
several different occasions, various amounts
OF these checks, upon which he received in
all $l07 200 in State bonds, which be de-
posted with the Auditor of State to secure
the issues OF his bank at Shawneetown.--
There was, besides this, over one hundred
thousand dollars obtained, but not deposited
with the Auditor, thus running up the entire
sum to $223, 900.
A short time ago, Gen. Fry, an ex-Canal
Commissioner, hearing them talking about
funding these checks, told the Auditor that
they had all been paid or funded long ago,
and il there were any now in circulation
they must be forged or spurious. On the
investigation before the committee appointed
by the Legislature, it is ascertained that Of
these checks many Of them had special en-
dorsements and bore evidence that they had
passed through the Bank and been paid, and
others were untrimmed and had no name
upon them as payee, but had evidently been
signed in blank but retained in possession
OF the Commissioners at the time. sIt APP
pears further that the checks Of these
issues under fifty dollars were Cancelled at
the bank at the time of payment. The larger
checks, Of fifty and one hundred, were pre-
served entire, and were sent by the bank to
the Canal Office, where they were counted,
inventoried, packed in box, nailed up and
sealed, and sent back to the bank for safe
keeping. There this box remained till, in
lS4s or l649, Col. Oakly, then Canal Trus-
tee, sent for it and had it conveyed to the
Canal Office in Chicago. Here it remained
till 1858, when an order came from Matte.
son, then Governor, to send oil the Cancelled
checks and certificates to Springfield, to be
deposited Ia the State Department. This
box was then In the Canal Office, with It'd
seals unbreken. Upon the receipt of thi.
order, it was opened and the contents taken
out, and, along With other cancelled evidence
OF State debt, they were packed, partly il
trunk and partly in q shoe box, resealed
and directed TO Gov. Matteson at Springfield
and actually delivered into his custody
Search having been made in the State De
partment, the trunk described by the wit
nesses was found, sealed up and undisturbed
but the shoe box does not appear.o
As the matter Stands the fraud rests upor
Governor Matteson. He had charge OF thes,
cancelled and upissued checks, and with al
the marks that should have put any one OF
his guard, be used them. He does not shov
when, where, or OF whom he obtained them
and his wealth has mostly grown out of then
and is traced to them.
1t is clear to the Governor and everybod
else that he can no longer avail himself o
them, and that he must make the amour
good to the State. He, therefore, under til
pressure OF this necessity, affects specia
honesty and generosity in the premises an
proposes to pay the amount Of the principal
That is, he seeks to secure the reputation o
an honest and generous man by returning t
the State her principal, without interest, al
ter ne has used it for number OF years an
made fortune by its use. The case seems
on its face, one Of dishonesty, fraud and EN-
bezziement, and unless explained would, un
der the ordinary administration OF the laws
SEND poor man to the penitentiary; bu
Ssc-s..c- l2..csca, 9 great leader {
the Locofoco party and a rich banker, pro
poses to make political capital and persons
reputation by paying the principal Of tn
money embezzlsd by him.
stampede OF fugtlivcs.
About seventy slaves are reported to ha,
passed through Grinneli last week on tho
way TO the North Star. 1t is supposed TIL
the vigorous preparations now in progress
Missouri for converting that into a free Sta
by scndin1 the niggers down To tho draadx