Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-05-31


,hority. and If the same was done for the purpose
of obtaining credit thereon in any manner, where
BY any person might be deceived or deirauded.
tie az Of New York made 81 pirtles parti
cipating in the fraudulent act, guilty Of for
gerry
Had the Agent Of State recognized these false
issues by accepting and canceling them, aid CIV
ing Others instead thereof 70 an innocent holder,
II might be questionable whether the state "onin
not be under moral obligation TO protect the
holder Of such certificate. but from my invest
CATION Of the matter, / am satisfied that 10 false
certificate has ever been transferred at the Agen-
ev either by St0ver the present incumbent.
Rnt supoose am mistaken in this, and that some
of the false certificates have been recognized at
the Agency how can that benefit the holder Of
other false ceftifcatesl IS well might the hold
ers Of counterfeit bank notes expect to make the
bank liable for their payment, because the officers
Of the bank had ignOrantly or corruptly Of you
please paid like paper
These false certificates, called "an irregular
issue" certify that the State OF Indiana owes
some named person a certain of money.
That person, whoever he may be, is confeder-
ate and principal in the crime of the issuing the
false certificates called irregular" How can
lie be bona fide holderl and under what obliga-
ton is the State to pay himi Whenever he seeks
to transfer il at the Agency upon the books of
the State, he and his contemplated assignee will
be met by the objection that the certificate is spu-
rious.
But, says the Herald, in offering reasons why
the State should assume the payment of these
forged certificates, and recognize them as genu-
ine tha. the Loan Commissioners were about
to the guilty parties. and "were inform
ed by the District Attorney here New York;
and also by the Attorney General OF In
diana, that il was very doubtful II they
had any case" land their defense u that
the bankers and brokers whom Slower had con
triyed to involve in his transactions had capital
and reputation enough at stake 10 redeem the
whole irregular issue if no expose made
AS has been shown, there could, by no possibil-
it's, be an innocent holder OF these false certif
Gates. Mr.. Slower contrived To involve 10 one
who was not willing. and who was not an active
plrticipaior with him In the crime certificate
exhibited 10 me, suppcs, d TO be false, was filled
up in the name OF one Hallett, and had a blank
power of assignment inGorsed on the back OF il.
Now, If this really false certificate, and
this Endorsement upon the back was :ls genuine
signature, he has not been involved IN that trans
action by Slower, but was equal participant la
the fraud with him. and neither will venture TO
that the State Is liable; Will any holder
of these certificates, whether by purchase from
or pledged for loans to Slower and his coneder
ates have any better success in charging the
State with their payments. for the plain reason
stock certificates forbid such purchase pledge,
and that there might be no mistake, aud that all
persons proposing TO take these securities might
distinctly understand how il be done,
they are nJtihed in the body OF the certificates
that the same not the subject OF transfer and
assignment except upon the books of the agency.
No amount of fraud at the agency, insecurity
of any kind therein, will Justify such holder IN
the belief that the State Is under any obligation
whatever to pay them. Such holder is bound to
know that the agency has but limited and special
authority, and that the State Is only bound to
the extent of its lawful exercise. When he reads
his certificate he knows he has no property IN IT,
till it is transferred at the agency, and has no
right 20 expect that il will be 80 transferred if il
is false illegal IN any respect. SO that, IN my
judgment, the State is under no obligation what
ever To recognize any OF these spurious certh
Gates as genuine, and indeed it could not be done
without legislation and probably an amendment
OF the Constitution OF the State. Ii the Agent
of the State any OF its officers presume To rec
ognize them valid, and pay interest upon them,
they will be liable upon their bonds for the funds
of the State thus unlawluly appropriated. There
is but little probability that there will be special
legislation in INDIANA in favor OF Slower and his
cOniederates, and quite as little in favor OF the
holders of the spurious certificates who have
ventured upon the integrity OF some broker per
haps to take them and advance him money upon
them, though expressly warned by the certificate
itself that II would not be good in their hands.
Being the Attorney General of the State of In
diana ut the time the frauds of Slower were dis
covered by the Governor, my attention was by him
called TO investigation OF the possible liability OF
the State for these false certificates. and | was
then satisfied from investigation OF the subject
that there liability the pant OF tue State
for their redemption.
A. an attempt has been made through the press
~ I'd 70 believed
Morton aud other State officials eOnnived at
keeping this fraud secret from the public To It's
prejudice, | have 10 say in answer 10 that imputa
ton that some time last winter, in February,
think, in the city of Washington, | received a
dispatch from Governor Morton to Immediately
90 TO New FORK; upon my arrival there l was IN
formed by him of the fraudulent issue OF these
certificates OF stock, and required To take such
action as in my judgment the interest of the State
demanded An examination OF the affair in con
nection with eminent lawyer of New Y ork
satisfied me that the transaction did not involve
the State OF Indiana in any manner whereby an
action could be maintained in its behalf against
Slower or any OF his coniederates. but that the
crime OF forgery against the laws OF New Iork
had been committed and to the end that
the guilty parties might be prosecuted without
any delay, Gov rnOr Morton and my sef, within
day or TWO after my arrival in New Ork
called upon the Attorney General ot that State
anu the District Attorney OF the county anu CITY
OF New York and made known to them the
existence OF the crime. The delay to prosecute
since that time has not occurred out OF any de
sire or arrangement to let the "baakers and
brokers tchOm Mr.. SfOUer cORtriUed 10 inrOLce IA
has transactions escape, but ii they are guilty
the delay will not prove beneficial to them. But
whether there has been unreasonable delay OF 1ot
Is not the fault OF the officials OF this State as
believe.
Seeing that il is the wish of every citizen of In
diana TO do nothing winch shall impair the credit
the State, and being confident that YOU would
not willingly nhict uumerIted cenSure upon any
one | have addressed YOU this communication
hoping that YOU m sht think it OF sufficient i'm
porianee to give il place in your columns
J. p. UsHER.
MAY 80, 1862
Hon. VIM. Duer on Mon for the
Union.