Orleans independent standard. [volume] (Irasburgh, Vt.) 1856-1871, 1861-11-29
The Bates Defalcation.

Report of tho Commissioners appointed
| BY the Act entitled an Act Relating
to the accounts Of the late State Treas
yer," approved NoU. &c, 1860.
To the General assembly Of the State o.
Vermont
The undersigned, Commissioners APP
pointed by an act entitled "An act re-
lating to the sureties Of the late State
Treasurer" approved Nov. 26, 1860, beg
leave to submit report of their proceed
ings as required by said act.
Soon after the passage of said act, the
chairman of the commission sought and
ATTAINED an interview with ii. M. Bates,
Esq, in the city of Montreal, and find
ing that bis personal attendance before
the board would be advantageous to the
interest of the State, procured him to
come to Mortified, under the protection
extended to him by the act entitled "an
act e1empting the body of H. NJ. Bates
from arrest in certain cases therein nam
ed" approved Nov. q, 1860.
Your commissioners examined said
Bates under oath, and other witnesses
and written evidence, from which they
find that said Bates account showed
deficit of $48,431 "a, which amount is
to be found in the statement of the
Treasury account, contained in the re-
port of the Auditor Of Accounts, from
which should be deducted the sum Of
$2.98, which has, since the making up
Of that statement, been accounted for.
This deficiency was created by said
Bates, using from time to time the mo-
ney Of the State for his own private use,
aud for the private use of himself, jointly
with others, in schemes of speculation,
with the expectation upon his part and
upon the part Of those engaged with him,
and the money be returned to the treas
ury without it being publicly known that
the same had been used, and thus be and
his associates would have the use of the
money without interest.
For this purpose, and in the prosecu-
ton Of some Of these schemes, said Bates
and one 7. Belknsp of Mortified (who
WAS one of the sgners of said Bates
bonds for the years 1854, 1865, 1856,
1857 and 1859 purchased on a joint
speculation, farm in the town of North.
field and one in the town of Burlington,
with some quarry rights, and the same
KNAPP; and the same stood in their name
until said Bales conveyed his interest as
hereinafter stated, and the money which
was paid for the same was taken from
the treasury Of the State. The said
Bates and Belknap also purchased a
patent right for the manufacture and sale
of pegging machines, which was convey
ed to said Belknap, and the money which
was paid for the same was also taken
from the treasury of the State. The
said Bates from time to time loaned the
money belonging to the State to divers
persons, and took their notes and obliga-
tons therefor, running to himself, which,
with other property, said Bates turned
out to one Heman Carpenter, Esq, of
Mortified, another signer of said Bates
bonds for the years 1854 to 1853 inclu-
sive, for the purpose of securing said
Carpenter and others for signing said
bonds. And said Bates also conveyed
by deed or deeds to said Carpenter, or to
said Carpenter and Belknap, the farms
in Mortified and Burlington aforesaid
also house in Mortified, aud undivided
interest in block Of stores, and some
houses and lots in Mortified, and guam
tity of land in Eden and Westfcld. Tie
nominal value Of the property thus turn
ed ont by said Bates is about $4,000,
and said Carpenter estimates them at
100000 in round numbers.
Your commissioners proposed to said
Carpenter to hand these securities over
to the State, to be collected and applied
where in law and equity they ought, as
between him and said Bates and the
other sureties but said Carpenter who'll
ly declined to do so, except upon his be-
ing Internationally discharged from all
liability as surety for said Bates and he
wholly denies that he is liable at all. To
this your commissioners could not con-
sent for the following reasons, amongst
others, viz: That said securities, in part
at least, were the proceeds of the money
taken wronsfully from the state treasury,
and the same we're put into said Carpen-
ter's hands by said Bates for no other
! purpose than to secure him and other Of
Bates sureties for signing the treasury
bond; and the State had right to have