East Saginaw courier. (East Saginaw, Mich.) 1859-18??, 1860-02-02
The Cnrni Loan WHOLLY diverted
Co ether Purposes.

constitute part of tho canal fund, and
that they should be sued fer no other pr.
JoIs Wha'ers''
We ssscrt--and we shall rot bc con.
tradictcl- HAT not one dollar of the pro.
crcds Of this loan has bccn made TO con
stitntc part Of the canal fund Every
dollar Of them has been diverted % o'Ap'
gWsosey. filtg1housaad dollars Of them,
n, the pubic knows, have boom loaned TO
lIAzELroN & Co, aud viii DC wholly LIST T
t1thc canal funi. tiOy-threc thcasand (
dollsrs, the remainder Of the proceeds, I
were used TO pay the interest on the State +
debt dec on the lst OF July last, the
treasury having no other means with
which To pay that interest Thus has
tho whole Sim Of thc proceeds Of the loan
been absorbed Tor other purposes than
those prescribed by the law.
VIII Il be said that the Treasurer was
alone guilty OF this diversion of these
proceeds from their specific object, and
that no other member of the aAministra-
ton knew any thing of il? 1t hes been
said that he was alone guilty of the Hazel
ton transaction, and that no other Nom
her Of the administration knew any thing
Of IT, But we have shown that this was
impossible that he should have been alone
guilty OF the diversion of the remainder
Of the loan to the payment Of the Unrest
ON the State debt due in July last. ne
could not have made this diversion with
out the knowledge and the joint action
too, Of the Auditor General, for dreyy
transaction Of the treasury must appear
upon the books Of the Auditor, and it is
upon the Auditors warrant that the pay
meuts are made from the treasury. So
the Auditor is certainly particeps criRjRis
with tho Treasurer in all the violations
Of the canal loan law; and it is Of no use
20 tell us that the whole administration
were not privy to the transaction.
Perhaps we shall be asked whence the
money has come which has already been
used In tho "rcpairs' on the canal. 1t
has come from the ordinary revenues Of
the canal, which amounted to 5000 in
1853 and $4,000 in 1889 aud which
have been in the past, and will be in the
future, more than enough to keep the
canal in complete repair and make all
necessary improvements upon il.
this canal loan, IL is more than probable
that the obligations for the interest dine
in July last on the State debt would have
gone 10 protest, Just as the State prison
bonds due on the lSt instant would have
remained unpaid had not joins Owe,
stepped forward and insisted upon thei,
payment, as indispensable 70 the preser
walton Of the credit of the State, and al
vanced the means TO pay them, or, rather
agreed to hold the bonds, or a part o
them, until the treasury should be abb,
20 pay them.
And had it not been that the Michigan
Central Railroad Company advanced tn,
amount Of their specific tan for the yea
-ST5, 000-not due until February, III,
intcreS: due on tho 1st instant on til,
State debt would not have been paid.
Il has only been by these extraordin
nry measures that the public credit ha
been saved from ruin.
/: shouid not be forgotten that tn
Attorney General gave a written opinion
that the State might, as it's option, deie
tho payment OF the State prison bonds du
On the lst Instant The Attorney Gen
cral seems 10 have never hesitatcd to civ
such opinion rs his rartisaus applying 70
il wanted.
When it is remembered that the las
Legislature provided the means require
by the treasury to meet every cXigenc,
the important inquiry arises, what h;
become Of the money? Few Of the AZ
preparations have been paid Those {
the asylums are wholly behind. Til
trust funds have been encroached upol
The treasury is now empty. WhGt h
tscome Of N. moaep?-Eree Press.
EE The earthquake down South
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