The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-01-14
Alleged and swindIc.

LOSS OF SEVENTY THOUSAND DOLLARS OF THE saul
STE. MARIE CANAL rUND-REPUDIATIoN BY TIKI
STATE BARELY EsCAPED-INCOMPErENCY or RAs
CALITY OR both, AT LANSING.
From the Detroit Free Press, Jan. IL
II has been known in this city for three four weeks
past, that through the naismanagement, something
worse Of the State ADMINISTRATION the Saul Ste. Marie
Canal fund had failed 10 realize from the bonds Issued
pursuance of the Of the last Legs aure providing
extensive repairs Of the canal and that the probability
that the fund would realize from them, the
greater part 0. them We have remained silent in rela-
ton to the matter because supposed that the
State administration itself would communicate With the
public concerning state Of things d the highest public
importance, and because have hoped 10 have off,
csl explanation OF all the circumstances Of the affair be
fore commenting upon selves Neither the supposi
ton the hope which have entertained having been
realized and there seeming no prospect OF their reaa
ton, duty TO make puolc many OF the facts OF
the affair as have come 10 our ears.
estimated that the necessary repairs Of the canal
would cost hundred thousand dollars and this the
for which bonds authorized 10 be issued by the
act of the last Legislature The act provided that the
bonds should not negotiated less than their par value
and that the proceeds should be used for other pur
pose than the contemplated repairs As understand
Il, the bonds negotiated with the Artisans Bank Of
New York, institution which has stood high in
monetary circles and the proceeds left with it, subject
the draft of the proper State officer at Lansing 1t
that this State officer for seventy thousand
dosrs Of these proceeds in favor Of T. H. Hazleon & Co
firm Of brokers lately doug business in this city whose
banking concern collapsed the other day II Is said that
the Artisans Bank honored the draft and that II. Ha
zleton Co. instead Of paying the proceeds Of To
the Saut Ste Marie Canal iund, devoted them to their
over These seventy thousand dollars are lost 10 the
canal fund.
Whether the State administration is only guilty of the
grOscest Encouragement and ncompeency, Or through
of its members, Is guilty OF criminal
collision with others in successful scheme 10 rob the
canal fund, remains To be asccrained 1t matera little
10 the people Of the State which Of these hypoheses shall
be established as true, snce IN either event. the loss to
the canal fund is irretrievable
There have been other Developments which leave
doubt minds that to say the least, the very
worst possible ment has marked the whole ad
m!nstraton Of the State finances certain amount of
the old State Indebtedness fell due the st of January
inst At one time during the month Of December IL had
been fully resolved upon by the administration 10 let the
bonds covering this Indebtedness 10 protest, and this
would have been pursued but for the energetic
monrance OF certain parties in this city who accidentally
became acquainted with the intention OF the adminsra
ton Such default would have been tantamount 70 repu
diaaon by the STATE and public credit would have
been absolutely ruined. We understand that this result
was averted only by the advance, by oDetery nsttu
ton in this city OF the requisite 10 take up the bonds
The last Legislature provided the take up these
bonds--what has become Of the money!
The State Treasurer has kept scarcely any deposits in
the banks of this city for several months past the only
banks in which he is authorized 70 deposit treasury
balances. We credibly Informed that he has had
latons With banking concerns in New York. Of doubtful
responsibility Whether this state OF facts has anything
to do with the collapse Of the Treasury will perhaps be
some time known.
The reeut Of the loss Of seventy thousand dollars
the canal loan must bean extra Sessioa oil the Legsa
ture TO provide for Loan, abandonment OF repairs
of the canal which have hitherto been represented as in
the other OF which the State administration must
seize Let US see upon which will seize. An extra
session Of the Legislature will cost not less than twenty
which We have disclosed, for thd viii The time
be made that the financial affairs Of the State are
in desperate condition. and that wreched ocompetency
scandalous rascay presides over those affairs They
viii be made aware, TOO, that they have out barely
ee ds e e ey 81 be mae she
gulf " hch opeus wide before them.