The Cass County Republican. [volume] (Dowagiac, Mich.) 18??-1880, 1861-03-07

and House of Representatives., appoint
ed to investigate the Treasury Depart
ment and the official acts of Johr
Mckinney, and slse the previous man
agement of that department, and the
contract for letting the work for the
repairs to the St. Mary's Ship Canal
have made their report. We have moi
space to publish the report entire in
this issue, 1t is quite lengthy, and the
Committee have evidently. sought tc
arrive at the whole truth, and state
their conclusions without fear or favor
The report exonerates the State AID
ministration from any censure in the
letting of the contract for. the repairs
of the Saut Canal. The contract was
not let to the lowest bidder, but to the
firm that gave the best security for its
performance. The securities were E.
b. Ward, Philo Parsons, q. Chandle,
and John Owen. The contract, was q
profitable one. The cost of the work
was somewhere between s55, 900 and
$4,000; but Mr.. Holmes, one of the
contractors, declined to state what the
actual cost was. The committee state
that they feel themselves compelled to
come to the conclusion that the contract
was fairly let. 10 ads l9i 40. II
The Committee censure. in unmeas.
nred terms, all the parties connected
with the letting of the Canal loan, and
the Hazelton transaction. They think
the transaction, from the original adj
vertising for proposals for the loan to
the final disposition of the bonds, was
conducted with but little regard to the
principles which govern such transac-
tons in the money market. The report
unqualifiedly states that John McKin-
ney was evidently person incompe-
tent for the position, and his incompe-
tence and inexperience in negotiating
in business manner for the loan re.
CURED by the canal, oceasioned in some
degree the loss that has accrued; but
add that he was surrounded by friends
as unfit as himself, if not much more
to blame. S. M. Holmes, the prede.
cessor of Mckinney, is shown to have
had transactions with Hazelton & Co.,
which were concealed from the other
State officers! For instance, $780, 900
of State bonds were sold to Hazelton
& Go. during the time that Holmes was
State Treasurer, the premium on which
amounted to between $4,000 and $4,-
900. This premium was never paid.
But in return it is stated that Hazelton
lent Holmes $4,000, which has never
been returned. When Mr.. Holmes re-
tired from office there was an account
against G. L. Anthony of New York,
for SIS, 900 deposited with him. One
half of this remained unpaid when Mr..
Owen came into office; since then it
has been settled by deducting the
amount from the sun due the contrac-
tors for the canal repairs. The COM
mittee attach great blame to Mr..
Holmes for his concealment of the true
character of Hazelton & Co., and it
shows that if his conduct had been
frank with the other State officers who
officially relied upon him for correct in
formation the canal bonds would not
have passed out of the hands of the
Treasury.
The method of keeping the books in
the Treasurer's office is shown to have
been such that no one could ascertain
to whom loans were made of the State
moneys, nor what interest was paid,
nor who it was paid by, nor what sums
the State was entitled to for interest.
The report duplicates Hunter,
McKinney's deputy, in the populations
and frauds which they assert have been
committed in the Treasurer's office,
equally with his principal. Of the of.
fetal acts of this officer the report says
''Mr. Hunter was deputy of the
predecessor of Mckinney. He seems
to have been ready accomplice and
willing and jealous to aid him in des.
troying everything which could by any
means enable the committee to trace
these accounts where most easily mon.
ey might be distracted with discovery.
When he went out of Office, he delib.
erately and carefully burned, and that
since this Legislature has been in ses-
sion, all the books upon which the &C.
counts of the Treasurer were kept with
banks and other repositories, and many
papers Of the Office, also. So thorough.
ly was this done that there remains
nothing in the Office to. show any
account with any bank or individual
depository. The difficulty, therefore,
which the committee has met with
from these causes has been so great as
doubtless to prevent the discovery OF
many practices which would otherwise
have appeared. -
The destruction of these books, and
tb a rof,,col NJ HoK;pnou n fost;c,r b,,