The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1862-07-04


membered that the select committee was
composed Of the most honorable and res
ponsible members of the Legislature, and
that only one of them dissented from the
whole Of the report, that report having
been subscribed to by six members of the
committee. We have endeavored in max
ing the abstract merely 10 candidlv pre-
sent the statements Of the committee in a
shape convenient for reference and circua-
ton.
Gov. Randall appointed favorites to Of,
fee without reference to physical, mental
or moral qualifications.
Tie moneys Of the State were paid out
upon insufficient and inspecific vouchers,
the proofs OF payment in possession Of the
State being ga great and crude mass OF
writings, papers and documents"
Randall was appropriated S 900 for
contingent expenses, as commanQer-:n-
chief, besides other fees and salary as Gov
ernOr.
The Legislature voted 70 issue bonds 10
the amount Of 81, 100000, most of which
were entrusted to Governor Randall,
Treasurer Hastings, and the Secretary Of
State.
Randall 4 Co., took the corporate bonds
Of certain banks in payment O.. State bonds
to an amount exceeding over quarter Of
a million dollars, which bank bonds the
committee consider nearly worthless.
For million of dollars in bonds, of q
State before comparatively out of debt the
State realized less than seven hundred
thousand dollars in cash.
The officers paid 81 ,427 90 for printing
in New York, basides the expenses of
Hastings to that city, when the whole
might have been done by our own citizens
at much less expense.
No attempt was made to negotiate the
bonds of the State in the principal money
markets, but the bonds were reserved to
be sold at discount to our own bankers
The Commissioners falsely pretended to
the people TO have sold the bonds at par
They knew they did not sell the bonds at
par, and acted upon that theory.
The plain letter and obvious spirit Of the
law authorizing the sale of the bonds ''were
disregarded and eyaded."
1.-The most specious sabterfuges aud pre-
varications were resortel to, evidently for
the purpose of conceaIment."
Even should the banks pay in full THEN
corporate bonds held by the State, which
is not expected, the loss to the taxpayers
even then, will be the round sum of $II5,-
900, in this simple particular.
The Commissioners negotiated the bonds
as they did. mainly for the purpose Of re-
instaling ten banks whose bills had been
discredited, and thrown out as almost
worthless.
Tie Commissioners received from these
ten discredited banks. their corporate bank
bonds at par, in payment for State bonds,
to an amount exceeding $50, 600.
Tie law provided that no bank bills
should be received unless at par; vet the
Commissioners took comparatively worth
less bills of six Of the ten banks mentioned,
" for the purpose Of furnishing securities
to render them good"
Rotten banks were thus enabled to pur-
chase state bonds, paying therefor but 70
cents in their own discredited bills, and
giving their corporate bank bonds for the
balance.
Some of the banks who were parties to
this transaction are already winding up
and the 10 per cent. which they paid in
their own bills is probably all the Stase
will ever get.
The banking law provides that no onds
of any kind shall be received by the Bank
Comptroller as securities for banking which
have not been offered in the New York
market, and which have no established val
ue ihere-and even then they shall not be
received at over 80 cts. Yet Randall anC
Hastings, after having ascertaincd that the
State bonds could not be sold in New y Iork
at any price, advised the Bank Comptroller
to receive them as banking securities, and
at par, and he did so.
Thus the banks secured from the Comp
troller dollar in currency for what cost
them directly but 20 CTS. in their own de.
preciated bills
The State made large contracts for sup.
piies, al large prices, because to be PAID
| for in State bonds-vet Randall and Has
tings paid the fuI!Iprices contracted in GOLD
and treasury notes, reseving the bonds &c
sell to bankers at 20 cts. in deprecated
bills
Thus Randall and Hastings made them
selves popular with the bankers and The
contractors, at heavy loss to the State
During the session Of .he Committee all
the contractors aforesaid were out of the
State, with one exception, and he kept out
Of the way of the Commiltee-so that the
Committee could not ascertain with whom
the contractors divided their i'll aotter
profits
/ Before the negotiation Of the lands Has
tings went to New York and procured anc
paid flr ieuai opinion - IT, effect lla