The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-03-16

pIiyate means so tiicio "ou.u "a'o oSe 81
loss TO the State or to my oond,men' Inc
second year pursued pretty much the same
course, ioaning money to some OF my bonds.
men and Others, and have to say that oil
these gentlemen paid mo with tho exception
of the individual mentioned above as owing
me at the end of the first year. This man
was able as now regret to be obliged 70 say,
no, only to keep back what he owed mo at
the end of the first year, but by work.
ing upon my credulity or good nature or
whatever you please TO call It, to get a much
larger sum out of me which he still owes.
Whether there was any design on his part to
defraud me or the State leave you to judge.
All the facts connected with this particular
transaction can lay before you If you desire
it.
AT the end of the second year was short
some 500, 900. which made good by dis.
counts at the banks, which carried over, so
that the Committee appointed to settle with
the Treasurer, found my accounts correct on
the books and sufficient vouchers for all the
State funds on or at the close OF business,
Dec. 3lst, 1868.
mention the fact that was accustomed
IN loan the State funds to some OF my bonds
men and others, not for the purpose of Grim
mating Others. hut simply TO show that what
was doing will the public funds, was not
wholly unknown to parties who had deep
interest in the safety of these moneys, and
also to show that others were willing to run
risks as well rs myself, and that this matter
between myself and some Of my bondsmen
has more of a business aspect, of venture, OF
loss and profit, than is generally supposed.
Inow come to the Canada speculation, in
which was unfortunately engaged. be-
came partner in this business in July, 1903;
and nv associates are oil of them gentlemen
in high social and political standing in this
State. The purchase of the timber limits,
2GG square miles of territory with the mill,
blooms, etc., was made of one Edward Scalan
for $4,000 bonus-five thousand dollars
down which payment was made out OF NY
own private funds. For this l was to be re-
imbrrsed at an early day. with interest; so
that in fact, very small sum would be nec-
essay TO meet my liabilities.
Bv papers which l herewith present, you
will see what a aattering exhibit was pre-
scented of speedy receipts and large profits,
BY men whom supposed then, and now sup
pose, were competent to judge, and to know
whereof they affirmed. These receipts and
lIcSc DIOlNS HUNc HUt UCSH hSHNS
am before you to-day in the humiliating pc.
sitpn in which find myself. 1t has been
said-indeed the public minds very gener-
ally entertaining the belief, that have been
brought into this ruinous speculation by my
partners, who care not for me, nor for the loss
which my bondsmen and the State may SUI.
fer on my account. wish only to state the
precise truth in this connection, and leave you
aud the public to Judge how that may be. In
the first place then, did not, and am con-
fdcnt my partners did not enter upon this
enterprise with the intention Of taking a
single dollar from the Treasury to carry it
on.
This enterprise was carried on mainly by
funds raised upon notes Of my own, and potes
furnished me by my associates which my credit
and my position enabled me to use. found nc
difficulty, generally, in raising money at the
Banks whore kept my deposits, even upon
notes that we're OF doubtful character. /
do not say that did not at any time take
money from the Treasury and employ 1t in
this Canada operation because that would not
be true. cid it frequently, but always sought
to replace il by the discountng of notes, and
by placing the proceeds of these notes to my
credit as Treasurer. l have used notes at
the different Banks to very large amount !;
and have also used my checks on time with
individuals and with the Banks to large
amount. The shrewdest financial men in the
State, or those who are esteemed such, con-
nectcd with Banks and outside, have been
ready to take these checks-indeed have
been greedy for them.
repeat here that did not commence this
enterprise with the deliberate intention of
taking a single dollar from the Treasury in
carrying il on. l had no doubt at the start
that l could with my private means and my
credit carry forward my part of the work and
furnish my part of the money without
trouble; and / know now that could have
done it with perfect ease. 1t was represent
ed to me, as you will see by papers herewith
presented. that tho whole enterprise would
cost but $4,000; that this sum would readi.
ly be provided for by early receipts from the
lumber; and that there would be large
profit left after paying for the operation in
the woods and the cost OF the mill, etc.
The mill, booms, etc., as you will see, were
TO cost $4,000 by our books; and by a state.
ment from our agent they have cost, as l
learn, $4,000. The whole operation was to
cost $4,000; 1t hes cost between $4,000
and $4,000. The mill was to start in July,
sure |; and five millions of lumber was To- be
rot TO market. The mill did not start till
October, and no lumber has been sold.
My arrangements To raise money were all
made in the early part Of the season upon the
supposi,ion and belief that the mill would
start in July, and that before January, 1860,
should be in the receipt of 100000 or &c.,
600. Accordingly notes and checks to near
ly this amount, from time TO time. were used !;
and much Of this paper matured and had to
be met in November and December. l was
struggling to renew this large amount of pa.
per to save myself, my bondsmen, and tie
State, when the Norombesa Bank failed and
the crash came.
At the commencement OF this enterprise,
some Of my associates agreed to furnish mon
ey or its equivalent in aid of the operation.
Some Of them have furnished notes and Sc
curties, but none of them have furnished
money. / do not say that any one Of the
men associated with me in this business adj
vised me to use in any one instance the State
funds in the enterprise. They did not Wheth.
or they knew that was doing it or not you
can Judge. Some of them have rendered me
very essential aid in raising money on notes
and checks; and all of them have seemed
desirous to help me in every way. 1t is in
your power to send for persons and papers,
and TO unravel this matter further II you
choose, though / believe have given you
here all the material facts.
In this expose have shown you where the
bulk Of my State deficit has gone to. There
are some outside debts Of mine, and some
parties who owe me small sums which now
consider them as wholly private transactions.
There is also some money that has gone for
interest, cost Of travel, etc., of which can
now make no report. When / have had
time to gather up my scattered papers and
memoranda. and to unravel some Of my af.
fairs, may be able TO tell more of nv finan.