The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1860-02-28

mon, of all the facts within my knowledge IN re-
la,on 10 the negotiation and sac OF the "Saut |
Canal Bonds" under the act OF the lith OF feo' |
mary. 1859. Ii will be observed by reference
IN said act, page AIS of the Session laws OF
1879 that il became the duty OF the Governor
and State Treasurer 10 negotiate anu CONTRACT
tor a loan in the city of New York or elsewhere,
no, exceeding in all one hundred thousand dol
lars ION the most favorable terms and condl-
lions that in their Judgment could be obtained,
AZ a rate OF interest not exceeding SIX per cent'
per annum. payable half yearly That for the
nurnose Of negotiating said loan, and as an evi-
dence thereof bonds were to be issued and sold
in the manner pointed out by said act, and which
said act contains the following proviso: Provi-
ded however. THAT said bonds should be sold
TO the h;gheSt bidder, but shall not be sold at
less than par, and the money accruing from said
loan or loans shall be paid oper 10 the STATE
Treasurer" (See section two of the above men-
toned actl Ia pursuance OF said act Mr.. Nc
Kinney and | advertised in several pubic pa
pers that We would negotiate said lean and sell
said bonds 10 the highest bidder at the Artisans
Bank in the city of New York, oa the 25th day
of April last past. 4 copy of said act Was reel
ted at length in said noticc) Aud all proposals
were to be sealed, and by Us opened AT the time
and place above designated In pursuance of
|
Bank. upon the said 25th dly OF April, 1859,
and then and there at . O'Clock p. NJ, we open
ed such proposals as were presented 10 US in re-
lation 10 said loan. II do not distinctly recollect
the precise number Of proposals by Us received
and opened, but according TO my best recollec-
ton there We're eleven of them.) Upon exam
nation il was found that "E. II. Hazleton
| CO.." of Detroit, Michigan, were the highest bid
ders of said loan by nearly one per cent on the
whole one hundred Thousand dollars The law
required that we should make sale Of the bonds
| on the most favorable terms that We could OBJ
| tap and 10 the highest bidder. We did 80 and
| awarded the loan to Z. H. Hd-lctoR Il Go.
Before declaring the award We sent for T.. H.
| IIazleton, who was then in the CITY and upon
his appearing before w., We informed him that
| T.. u. iiazlcton \ Co, were the highest bidders
but that We should not award the loan Ia them
unless bond with satisfactory sureties was first
! executed, and delivered To Us conditioned that
| thew should pay John Mckinney the State
Treasurer Of Michigan, on the lst day of July,
/ 1859, the full amount ot said loan together with
the premium bid thereon, (which premium was
little over threep per cent? aud in default of such
payment, that they would pay 10 the State q;
Michigan as lqudated damages, the sum of five
thousand dollars This bond was executed by
f. H. HsZleton, with four sufficient surcties and
delivered To u.s. and We then awarded the loan
to T. II. llazleton { Co, the highest bidders.
| then returned home bringing with me said
bond executed by said Iiazelton and his sure
ties as aforesaid. This Is all that took place
within NV knowledge, in regard TO the ncsotia.
ton of said loan. Subsequently, and in the
latter part of June 1879, the loan bonds CON
| templa,cd by said act to the amount Of one hun
drcd thousand dollars, drawing interest from the
| FIRST dav OF July 1859, were 10y me executed in
the city O. Detroit, in the Office of Hon. j. NJ.
| Howard, the A,torney-Gcneral. and were then
and there III the presence of Mr. Howard dcliv-
cred over to the State Treasurer Ia be by him
| taken To the city of New York, that thew might
be delivered 10 +. II. iIazet0n * Co, upon
their paving to him the full face thereof, to.
cether with said premium, according TO the condi-
ton of said bond, executed by said Hazleton as
aforesaid
| At the time said bonds were executed by
me in Mr. HowaId's Office, both Mr.. Howard
aud expressed to Mr.. Mckinney a hope that
under no circumstances would he part with said
bounds, without receiving the full pay therefor
| did not 90 to New York with tho Treasurer at
the time said bonds Were to be delivered, for the
sole reason that my duty in the premises had al
ready been performed.
We had, in April, negotiated sale Of the
bonds to the highest bidder, ard had taken Ha-
zleton's bond to pay the full amount Of the loan,
inclnding premium, to the State Treasurer,
on the first day OF July, and it seemed more
than folly for me 10 perform journey 10 New
! York at the expense OF the State, simply 10 wit.
ness the ceremony OF seeing Hazlcton & Co. paw
to the State Treasurer the amount of the loan.
for the law required the payment of the money
/ TO be made Girectty to the Treasurer On Mr..
Mckinneys return from New York, IN the fore
part OF July, | met him in Detroit city, and in
answer to my inquiry If he had received from
! lIdZcton 60, the money On the canal bonds
/ he assured me that he had. This i the sub
stancc'ot the conversation that passed between
Us on that subject. | did not inquire of him as
to what disposition be had made of the money
| lt would have been impertinent in me to have
made such an inquiry. l had no reason 10 sup.
pose that the full amount of the loan and premi.
um was not then in the Treasury From that
time down TO the latter part of November last,
had no reason to think, and never heard it in
timated or suspected that the full amount of the
cana. loan and premium was not in the Treasury
The first intlnation TO the contrary that recei-
we'd from any one was in the month of Novem-
Der last, III the city Of Lansing. Mr. Mckinney
was then IN New York city, and did not return
until some time not far from the 10Th Of De-
cember last. l saw him upon bis return in De-
ceinber in Mr.. Towards Office ard he Their and
there, in the presence OF Mr. Howard, gave me.
a. believe, a fall aud frank statement of all the
facts IN relation 10 the Hazleton loan Tie
Board of State Auditors on the 9Th Of Deccm-
Der, closed their settlement with the State Treas
urer, aud upon the 29th OF the same month GER
we'd upon me certified copy Of such settlement
and upon the next morning the Attorney Gener-
al and started for New York city, with a view.
II possible, OF obtaining security Of - IIazleton
* Co, tor the s50,0Do loaned them by the
Treasurer. We obtained from Hazeton K Co
the best security we could, and such a. We think
Is amply sufficient to secure the repayment of
the iuli amount, with principal aud interest, into
the Treasury of the state
The above and foregoing ia full statement Of
the facts connected with the sale Of the canal
bonds and Of the Hazleton loan. and the mart
that have taken in the transaction So far a. the
the same l. within my knowe
| wish 20 add that did not know that "E
IA. Hszleton & Co" intended &C. compete for the
canal loan until the sealed bids were opened
at said Artisans Bank on the said 25th day
OF April.
J never knew who composed the members
OF the firm Of T.. II. Hazleton K Co. -" until
their names were disclosed to me in the CITY of
NeS York on the first day OF January last past
IN taking the security for the REPAYMENT Of the
said $4,000. never knew that they designed
10; TO pay the foil amount Of said loan upon the
let dis OF July last past or that ihey had no,
pad It, or that they had loaned from the Treas
ufer any sum of money whatever until I WAS IN