Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1861-11-21
REPORT OF THE COMMISSIONERS TO
SETTLE WITH THE SURETIES OF
THE LATE STATE TREASURER


Hon. A. p HUNToN,
Speaker Of the House Of Representatives.:
DEAR SIR:
herewith submit to the General Assembly
a report OF the proceedings of the commission
ers appointed By the act entitled "an act relat.
ing to the suretes of the late State Treasurer"
approved Nov. 81, 1860
LEVI UNDERWOOD,
For Commissioners.
MONTPELIER, Nov. ~, 1861.
To the General assembly Of the State of H. 4:
The undersigned commissioners appointed
by an act entitled ian act relating to the sure
ties OF the late State Treasurer" approved Nov.
p, 1860, beg leave to submit report of their
proceedings as required by said act
Soon after the passage of said act the chair
man of the commission sought and obtained an
interview with FL. NJ. Bates, ESQ.,, in the city of
Montreal, and finding tha his personal attend.
ance before the board would be advantageous
TO the interest of the State, procured him to
come to Mortified, under the protection ex-
tended to him by the act entitled tan act ex-
empting the body of II. NJ. Bates from arrest
in certain cases therein named," approved Nov
81 1860
Your commissioners examined said Bates un-
der oath, and other witness and written evi
dence, from which they find that said Bates ac-
count showed a deficit of S4S,431 n, which
amount is to be found in the statement of the
treasury account, contained in the report of the
auditor of accounts, from which should be de-
Quoted the sum of S29S, which has, since the
making up of that statement, been accounted
for.
This deficiency was created by said Bates u.s.
ing from time to time the money of the State
tor his own private use, and for the private use
OF himself, Jointly with others, in schemes of
speculation, with the expectation upon his part
ana upon the part OF those engaged with him.
that these schemes would be successful and the
money be returned to the treasury without be-
ing publicly known thaC the same had been US
ed, and thus he and his associates would have
the use OF the money without interest
For this purpose and in the prosecution of
some OF these schemes, said Bates and one 7.
neiKhap OF Northteld (who was one of the
signers of said Bates bonds for the years 1854,
io'o' 1906, 1857, and 1859, purchased, on
JOINT speculation, farm in the town of North
held and one in the town of Burlington with some
quarrying rights, and the same were conveyed
to said Bates and Belknap and the same stood
in their name until said Bates conveyed his in
terest as hereinafter stated, and the money
Whlch was paid for the same was taken from the
treasury OF the State. The said Bates and Bel
knap also purchased patent right for the man.
uiacture and sale OF peggng machines, which
was conveyed to said Belknap, and the none,
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 obligations therefor, running to HIM
sell, which, with other property, said Bates
turned out to one Heman Carpenter. ESQ.,, of
Northhed, another signer of said Bates bonds
Tor the years 1854 to 1868 inclusive, 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
Northteld and Burlington aforesaid; also a
house IN Northfeld, an undivided interest i'll
a block OF stores, and some houses and lots in
Northheld, and quantity of land in Eden and
Westtield. The nominal value of the property
thus turned out by said Bates is about $50 900
and said Carpenter estimates them at $4,000 |
in round numbers
Your commissioners proposed to said Car
penter to hand these securities over to the State
to be co llected and applied where in law and !
equity they ought as between him and said
Bates and the other sureties but said Carpen-
ter wholly declined to do so, except upon his
being Internationally discharged from all liza |
bility as surety for said Bntes; and he wholly |
denies that he is liable at ALL To this YOUR
commissioners could not assent for the follow
ing reasons, amongst others, viz That said
securities, in part at least, were the proceeds of
the money taken wronglully from the State
treasury, and the same were put into said Car
penter's hands by said Bates for no other pur-
pose than to secure hm and other of Bates sur
cites for signing the treasury bond and the
State had Il right TO have them so applied
whether said Carpenter was or was not liable
upon the treasury bonds, without submitting TO
the claim of said Carpenter to be discharged
which your commissioners considered TO he
without any merit, legal or equitable.
Your commissioners believe that the interests
of the State require that a suit in ohoncerv
should be instituted against said Carpenter and
Belknap, and an application be mad. for a re-
ceiNer to ,ake, hold and collect and convert such
securities for the benefit of the State, making
such other persons parties at the States coun.
set may think advisable; and your commission
ers would have instituted such suit had the pow
er been conferred upon them: but your com
mlssioners do not consider that the legislature
intended to confer upon them, by the act APP
pointing them the power to institute and pros
ecute suits in behalf Of the State ard employ
counsel at the expense of the States and wheth-
er they ought to have such power is for the leg
islature to determine
The Burlington farm was mortgaged to one
Nathan Stearns of Burlington, for the unpaid