The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-03-23
ed him, but I did not know who his friends
were. supposed he could get money from his
friends endorsement on their notes."
~. N,.k;ng s.;d

ed him, but did not know who his friends
were. I supposed he could get money rom MS
friends endorsement on their notes."
Mr.. Gushing said:
al never supposed Peck was using States
money. though had fears he was using State
funds in October, the amount was so large, but
nv fears were quieted by Hallowell and Leavitt,
who said he was helped by his fsisnds-that is,
using Hallowell's, Leavitt's and veston's notes,
and notes Of his Portland friends'
Mr.. Smith testifos In similar vein. He
says:
"I don't know that suspected Peck was us.
ing public money In Canada till December
When saw don't know, mean that don't
recollect. I never assisted In raising money for
Canada. All the money Peck got nj me, he
got ON official checks. / think there was one
instance in which he had some OF our bills and
paid them to Cushing to carry to Canada. /
don't rccollect how he got the bills
While adhering to these declarations. these
gentlemen, one and all, acknowledged that
they had no reason to suppose Peek posssssss
private means t. any considerable amount
the highest estimate venturcd by any one be-
ing some ten thousand dollars, and this an
unreliable "guess" without any foundation.
At the same time, they all knew that the
very first payment on the Canada property
had been made with official checks on official
funds, and that of necessity the payments
that fell upon Peck afterwards, must have
been met with money from the same source.
Mr.. Leavitt in one breath tells the Commit.
tee che never knew or suspected that Peck
was using State money" and In the next
breath confesses to have negotiated nearly
thirty thousand dollars Of Peoks official
checks as Treasurer. II the funds on which
the checks we.e drawn had not been public
funds, why the need Of making the checks
oiticiali The Committee have no desire to
handy contradictions with Mr.. Leavitt or any
other witness, but they could hardly help
feeling that his declarations, and some Others
were little less than an insult to their intel
lgence. Tho theory Of these gentlemen was.
that Peck could be furnished with notes, and
that these notes could be discounted, and when
they matured they could be met by other
notes discounted. and &C on, with one hand
washing the other, until that good time when
five millions of lumber in rising market,
would usher in financial jubilee and pro-
duce general liquidation. They never seem
to have taken any heed or care of their notes
after they were put in Peck's hands s-relying
on him to watch for them ut maturity. and
leaving him in position whero continued
protests or systematic depreciation on the
public money were the only alternatives. lie
chose this latter with apparent readiness, and
pursued 1t to his destruction.
When the crisis arrived, and Peck was
exposed as q public defaulter, he tried to
place something in the hands Of his bonds.
men wherewith to meet the liabilities incur.
red by their position, and he made to them q
transfer of all his interest in the Canada prop.
crty. But upon attempting to take posses.
sion. the first stumbling block was the trust
deed to Hallowell and Smith on the plan de-
vised by Weston and Leavitt, and on which,
demands from the Norombega Bank, other
than those specified in the" Bond" were per.
sis,ently preferred; next was the amount
still due to Scallan next claim OF Lane,
Stephens & Co., OF Montreal. for some $4,000,
for which the property was under at.
tachment; and lastly, numerous claims
from parties in Canada for provisions,
&c., to carry on the business. In short,
tho property was so embarrassed with
conveyances and trust deeds and claims OF
various kinds, that the bondsmen were fain
to relinquish all title to IL, and to release
Peck from all liability on their account, by
being put in possession OF unencumbered real
estate to the supposed value Of $4,000.
Further reference to this transaction will be
found under the head of the " Paulk lands"
The parties therefore left in possession OF
the Canada property upon the payment OF
the lIallowell and Smith notes, of Peck's ar
rearages at the Norombega Bank. of the bal
ance due to Scsllon, and OF the various Cana.
dian attachments upon II, are Dudley +.
Leavitt. A. X. Hallowell, George NJ. Weston,
Theophilus Gushing. each one-sixth; George
II. Smith one.tweltth, and the whole compa.
NY owning in proper proportion tho one.fourth
that belongs to Peck. Such Is the finale OF
the Canada operation-rcmarkable, at all Q.
vents, for being the chief cause ofthe defa!ca.
ton which has robbed the people OF Maine Of
so large sum Of the public money.
LOAN OF MONEY TO poSpsNES.
Mr.. Peck was State treasurer for three politi
cal years, 1857, 1858 and 1889, and his bondsmen
we're respectively us follows:
lS57-Neal Dow, st John Smith, Saml T..
Spring, Ezra Carter, Jr., Isaac Dyer, Dan Il.
Somes, J. d. Cummings, William Chase, V. Z.
Hanson, Scwall G. Chase.
isSs-Neal Dow, Ezra Carter. Jr., Isaac Dy-
er, Allen Haines, Thomas Abbott, j. u. Cum.
mings, William Chase.
lS59-Ncal Dow, j. B. Cummings, Scwall C..
Chase, s. +. Herscy, Walter Brown, c. o. Fam
ming, Henry Hill, Michael Schwartz, Chas. d.
Gilmore.
From the first, Mr. Peck seems to have been
in the habit Of accommodating such Of his
bondsmen rs called upon him for loans, tho his
operations of this kind were not 50 frequent rs
they probably would have been, had he not had
such pressing demand for the surplus In the
Treasury for his own private speculations.-
The following Is q complete list, so far as the
Committee could ascertain from Mr.. Peck, Of
all the bondsmcn that have ever had the use Of
the States money:
Ezra Carter, Jr., in 1857 borrowed some
$1,000 and paid It back according to promise,
without interest.
Isaac Dyer, bondsman In 1857 and 1858, bor-
rowed modemte sums ut different times, from
$4,000 to $4,000 ut time. Always paid back
as agreed
William Chase and V. G. Hanson, jointly
borrowed in 1857 some $4,000, and repaid II ac-
cording to appointment.
Sewall Chase borrowed in 1859, $1,000 or 90
at different times, and once had $4,000. Al
ways repaid promptly.
Daniel +. Somes was borrower from Peck
the first year (lS57,) toa considerable amount,
but according to the testimony Of the latter,
paid 1t nearly all back before the last Of Dcccm-
Der. lie still owed, however, some $4,000 or
$4,000, which, rs Peck says, was made up by
having notes, with their names on, discounted.
Peck paid these notes ut matutity, early In the
ensuing year, (iS5S) and thus Somcs remain
ell his debtor on the account OF 1897. This IN
debtcdness was very speedily and largely in.
creased by fresh loans from Peck, during the
winter and spring OF 1853. and at tho close OF
the year Peck had the notes OF somes Tor 'ne
following sums: .
Threo notes dated April %, ISIS, 500 sseh' sso 40
ono {. :. Ja.ss. - 500
ono . |. . ~ loo
Ono . !. ,,rS' 600
ono . !. 600
Ono . IN . siooo each, 2.oOo
Two "A ~ 500