Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-06-23

not before.
2l. We have charged that the present Agent
Of State became aware Of the fraud soon after
he went into Office: that Tor nearly a year he
withheld this Information from the State authori-
ties and the public; that the State Agency IN New
York was used in the meantime az a cloak 70 the
swindle. the fraudulent bonds being returned
there aud treated as genuine: that the Agency
was used for the same purpose after the Governor
va. advised Of the fraud, knowing that such was
the case, and believing that the State was in no
way responsible for the bonds thus fraudulently
issued. and within a few weeks. be has seat
agents from here TO New York to aid in retiring
the said bonds from circulation and destroying
them, to relieve the liability of the State as it
is averred.
Sd. We have also charged after the matter
was placed in the hands of the District Attorney
in February last, for the purpose OF prosecuting
the guilty parties. the Governor wrote a note TO
the Attorney General of that State, requesting
him TO keep the affair a State secret for the pre-
sent. This has not been denied.
4th. That for about four months from Jan
nary or February last, the Governor withheld
from the public a knowledge of the fraud, and
permitted the State Agency in New York to act
equally as the ageut for the parties issuing the
fraudulent bonds, in retiring or transferring said
bonds, as for the State in retiring and transferring
genuine bonds or certificate Of stocks
We have had no disposition, and have none
even now. to continue a personal controversy
with the Governor as to the facts involved in
this important affair to him, and only allude to
il now to correct some gross Misrepresentation
of his organ. The public cannot fail to see that
his connection with il, to say the least. has been
bunglingly managed by His Excellency, and to
the damage of the good name of Indiana. The
magnitude Of the crime seems to have given il
az odor of responsibility. If the parties engaged
ia it had stolen Governor MoRToN's State car
rage. ere now they would have been in Jeifer-
sonyille, but two-million swindlers seem TO be
regarded with distinguished consideration.
When the Governor has explained the matters
to which we have called his attention in this ar
ticle, We have a few others which will need illu
minatiOn, but which We reserve for the present
As a matter of curiosity. and as a part of the
history of this great swindle. We apPerd the fol
lowing defense of Mr.. HALLErr. one of the
alleged parties thereto, which We find in the New
York papers OF last Friday.
THE INDIANA STATE BONDs-ToT THE PUBLIC.
Various rumors have recently been circulated
in reference to an alleged over issue OF Indiana
State bonds. Ny connection with bonds of that
State commenced by my receiving them in the
regular course of business, as collaterals for add
vances made and money loaned on faith OF those
instruments; afterwards, to receive money Dor
rOwed, | hypothetical some of them. and when
it was deemed necessary that a number of them
should be retired, | cO-operated in effecting that
result with the legally authorized agents of the
State of Indiana. The idea has been in some
way conveyed to the public that these bonds were
fraudulently circulated. and the charge has been
made that the authorities of Indiana, knowing
the bonds were improperly issued, took no steps
to expose parties through whose agency they
reached the public. The result is, that the Grand
Jury have been induced, as | understand, upon
an unswOrn and informal communication. with
out any complaint or charge before a magistrate,
to investigate these matters, and as these pro-
ceedings are secret, aud they receive only testi-
mony from the prosecution, and no accused party
can be heard before them, it is not impossible
that on the imperfect or misrepresented state of
facts presented to them. they may find an indict-
ment against those to whose hands the alleged
illegal bonds have come, and thus attempt to i'm
plcate me.
No Indiana State bonds have ever reached my
hands which were not in the usual and regular
form of those admitted TO be valid obligations.
IL is not pretended that any signature or attesta-
ton essential to their legality is wanting, nor that
any name OF attestatiOn they bear is not genuine.
But it is said that though legal and binding on
their face they are invalid because they were is
sued "in excess of authority"
This is not the first time that obligations, in
formally or Irregularly issued, have come to the
possession of our business community, and |
need not say how frequently similar informalities
or irregularities have failed to prevent ebllga
tons being enforced. In the present instance |
am advised bv counsel that the bonds alleged 80
70 be void, are valid and legal obligations bind
ing on the State of Indiana, and that whatever
objection may by any possibility have existed IN
reference TO the original issue OF the bonds by
the State Agent has been removed by the fact
that the authorities of Indiana have, with a
knowledge of the circumstances. permitted the
very bonds now claimed TO be invalid 20 be trans
ferred at the agency and Others issued in their
place. and otherwise and in all respects treated
and recognized them as bonds properly and law
fully issueu.
From the moment when l understood these
bond transactions were 10 be investigated, | have
most earnestly desired and siriven to have the
investigation publicly conducted being assured
that. having an opportunity to explain, | could
satisfy any tribunal THAI. so far As | am con
cerned. nothing culpable could oe imputed to me
in such transactions, but for reasons already
stated, | could not effect what | 80 much desired.
The Grand Jury cannot be required to hear a
person i'm any wav charged or implicated. and as
no one originated any proceeding against
me, / have had no opportunity whatever
to present an explanation, or call a witness.
This seems the more unjust in view OF the
fact that in January last. after had hypotheca-
ted many of the bonds now alleged to have been
created without sufficient authority, and after the
arrangement for retiring bonds as above men
toned had been made. | purchased directly from
the authorities of the State of Indiana. aud paid
for two hundred thousand dollars worth of its
State bonds in all respects upon their face like
those which are now alleged to be invalid.
Ii any banker, merchant or broker, having pa
per which was ostensibly genuine, should find
himself suddenly accused of injustice in dealing
with 1t. or subject to the inquisition Of a grand
jury because such paper was alleged to have been
issued under circumstances which in law might