The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1861-03-12

ported by the Treasurer as paid He accom-
panied Mckinney to New York, as his advis.
or and friend. Mr.. Holmes WAS there, also.
Both consulted together, and il was by their
advice that Mckinney seems to have been
guided. Holmes had been one of the origi.
nal bidders for the loan, as a competitor of
Hazeton d. Co. had been in N. York when
the loan was awarded to them. He had
never then mentioned to the Governor or
Treasurer that Hazleton & Co. had failed to
pay the full price Of the first loan sold them.
Neither be nor Jones, in July when Hazlelon
& Go. declined to take the bonds unless Nc
Kinney would credit them, or lend them
$50, 900 of the amount, aud while they were
acting as his advisers and friends, informed
him that Hazlet0n g. Co. had defaulted in
the fist transaction to the amount of, proba.
bly,, upwards Of $4,000, but on the contrary
advised him that Hazeton & Co. were per
tectly responsible and honorable men, who al
WAYS lived up to, and fulfilled their contracts
and tat the $4,000 would be perfectly safe
with them. Had Mr. Holmes been frank
with Governor and stated this default of Ha.
zeton d. Co. upon the first contract, they
would not have been allowed to become bid
bers for the loan. Had either Of then sub
sequenty stated the fact to Mckinney he
would not, supposing him to be sane, have
parted with the bonds t. Hazleton & Co., un.
I'll he should have received every dollar of
the price to have been paid therefor. Whcth-
or Mr.. Holmes conduct is to be explained
by a fact mentioned by Mr.. Dewey in his
testimony, and hereafter alluded to, that Ha-
zeton Il Co. had lent him money, tho public
must Judge. The Impression of the committee
is that in that transaction the late Treasurer
was more sinned against than shining. He
was utterly incompetent, doubtless, but new
erthcess he seems to have done wrong under
the advice of friends who knew enough to ad.
wise him better.
There are several circumstances connected
with the con duct Of Mr.. Holmes both when
in office aud after he had retired from it,
which seem very difficult of justification :.
Though the custom did not originate with
him-but prevailed before his tiue-yat it
seems to have Teen continued by him as well
as by his successor, Of keeping the accounts
with the various banks where the funds were
deposited, not upon the regular books, but
upon books, called sometimes, "side books. 4"
The deposit for some years have been made
with depositaries upon interest Of five per
cent, and during the administration Of Mr..
Holmes this item of interest was a large one
And yet there Is nothing in the Office to show
where the money was deposited, the amount
OF interest which was Justly due the State up
on them, or anything by which the amount
of interest which really accrued TO the State
can be estimated. Money is entered as hav-
wing been received on account of interest in
gross; sums without anything to designate
from whom received or on what account.
Whether Il interest so entered as paid be all
the interest was due he Stale or whathn- :.
was An tuat was received, thee is no meaus
Of knowing. That this mode Of stating nc
counts in keeping books, leaves the door wide
open to any fraud which public officer may
see fit to commit, is apparent to all. That
any have been committed during Mr.. Holmes
administration may not be true; but if not,
1t Is certainly not or the want of the most
ample opportunity to do it, without fear of
detection. He seems to have been in the
habit of depositng with or lending money :,
TO one {. l.. Anthony, of New York, and
when he retired from office there was an &c
count Of $4,000 aud upwards against said
Anthony, which was turned over by Mr.
Holmes TO Mr.. Mckinney, rs cash. About
half this amount rename unpaid until the
present Treasurer came into office. 1t has
been since settled, but without interest fot
1860, by being deducted from the amount
duo the contractors for the repairs upon the
canal, of whom Mr.. Holmes was one. At the
close of his term, also, there was a draft from
the Detroit 1dvertiser office, in his favor, on
Hosmer Il Kerr for SS26, which they had
refused TO pay, having, as they STATE, previous
ly paid the same. This was left in The office
as so much cash. and so receipted by Mckin-
ney. ln adjusting running account with
these gentlemen, the Deputy Treasurer, Mr..
Hunter, seems to have had address enough to
deduct rle amount Of this draft from monies
due them, and the amount remains now n
subject of controversy between them aud the
Treasury office.
There has already been allusions 10 the
conduct of Mr.. Holmes in connection with the
negotiations with Hazleton IL Co. He did
not require them 10 pay the fu!l price Of the
fist bonds sold them, and yet he delivered to
them all the bonds. About the same time
he received an accommod tion from them in
loan or loans Of money, to the amount Of
$4,000, and il seems to have been the under
standing that he was rot to 0e called upon to
repay it, it having been also understood, as it
would appear, that the amount Of the premi
um on the loans was to remain uncalled for,
or thft the amount lent Holmes should ap
ply as a payment thereof When asked him
self if he had informed tho parties negotia.
ting with Hazleton e. Co. for the canal loan,
of the failure Of that firm to comply with Their
previous contract, and that they had failed to
pay the premium agreed to be paid, his reply
was that he had not, and the reason was that
he still thought, at that time, that he might
Vet got the money, and this though he bad
been out Of office somo months, 1t seems
clear to the committec,that in this transaction
itself with Hazleton & Co. and in all his sub
sodueut conduct, in not informing either the
Governor, when tie information would have
prevented the giving Of the loan to Hszleton
Il Co. and afterwards, when the same infor-
nation must have prevented the transaction
with regard TO the $4,000, arc altogether at
variance with the duty incumbent upon him.
The frst-that is, letting Hazleton & Co.
have tho s2l 5000 Of bonds before the price
was fully paid-was official malfeasance, by
,yb;ob bo G,,,o laas 10 ba eura tban by