Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-05-26
Fraudulent Issue of Twelve Hundred
Thousand Dollars of State Bonds


''Stocks lower, under rumOrs OF heavy over
issue in some description of Indiana securities"
Upon inquiry we ascertain that some twelve
hundred thousand dollars of Indiana FIVE per
cent. bonds had been fraudllently over issued by
d. G. Slower, while Agent of State. Some
100000 of these bonds have been returned and
cancelled, leaving outstanding of the over issue,
it is supposed, some $500, 900. Mr. SLOWER ad-
mits these facts but refuses to give any informa-
ton as to the whereabouts of the fraudulent
bonds outstanding.
The Hen. JAMES A. CRAvENs, the present
member of Congress from the Second District
elected Agent of State. as the successor of J.
NJ. LORD, Esq, by the Legislature OF 1859. Mr..
SLOWER was a candidate for the Office at the same
time. Upon the election of Mr.. CRAvESs he APP
pointed Slower his deputy, and the latter trans
acted and had entire charge of the business of
the office, the former givingsit but little if any
personal attention during his term. The bond
OF Mr.. CRAvENs was approved February IL 1859
On the 9th of December, 1859, Mr.. CRAvENs
resigned the Office and Governor WILLARD APP
pointed Mr., Slower to the vacancy and his bond
was approved on that date. Mr.. SLOWER had had
considerable experience the duties of the Office
holding the position of clerk during the term of
the late ALLEN MAY. He was regarded by po-
litical friends and opponents as we'll qualified for
the position and as a gentleman of the strictest
integrity He a resident of Ladoga, Mont
gomery county, and had the entire confidence of
the people of that section of the State. He was
strict church member and was most exemplary in
all his business and social relations He is the
last man whom we would have suspected as ca
pable of committing such crime.
Up to 1859 there was no adequate check in the
transfer of the certificates of the stock of the
State at the agency in New York; we may better
say there was no check whatever upon that off
Ger. This office was created under the BUTLER
bill, and its object was to facilitate the transfer of
stocks. The Agent had no right to issue new
bonds, but his duty was to pay the interest upon
the bonds which were registered in his office; to
take up and cancel transferred certificates and re-
issue new certificates Of stock to the assignee or
purchaser. For the convenience of the tranfer
large quantities If blanks were signed by the Off
GERS of State and kept at the agency. This loose
mode of doing business was changed by the law
of 1859, which took effect on the llth of March
that year. The certificates of stock by that law
had to be sent here for transfer and new certi6
Gates were issued here signed by the Auditor and
Treasurer of State, and registers of these trans
fers were kept by the Auditor of State here, as
well as at the New York Agency. Section of
| that law provides:
That any and all certificates or certificates Of
stock issued or transferred in violation OF the pro-
visions of this act shall be deemed fraudulent and
void as against the State of Indiana.
Ii appears that these fraudulent bonds were
issued after the passage of this act but to obvate
were antedated-we believe they are all dated in
February. 1859. The old blank bonds in the
New York Office were used for the purpose, signed
we belive mostly by W. R. NoFFsINeER, ESQ, as
Treasurer, and JOIN W DoDD. ESQ, as Auditor
of State, countersigned JAMES A. CRAvENs,
by Slower as Deputy. SrovER relieves Mr..
CRAvESs from any knowledge of the fraud
whatever, and Acknowledges to his thus hav-
ing used the name of that gentleman and abused
his confidence. We hear that the bonds were
even dated previous to the 18th of February,
the day that Mr.. CRAvESs's bond was approved
and the time his acts as Agent of State became
legal.
Slower had some Wall street brokers or bank
ers for accomplices, and he alleges that he never
received any of tho ayails of the frand. On the
other hand these bankers say that they had no
knowledge of the true character of the bonds
and believed them to be genuine They state
further that they regarded SLOWER a man of
great wealth and had all confidence that he came
by the bonds legitimately With the proceeds
those parties started or purchased the Bank of
Beverly, in New Jersey. They had there fine
banking house. costing several thousands of dol
lars, and fnanciered in the most modern style of
banking. Now these individuals, one and all,
deny any ownership in that bank and, like Japhet.
it is in search of father. This fraud was sus
pected some time ago, and the matter has been
in the course Of investigation for some months
Mr. OAKEY. the attorney employed in the case,
thinks the testimony of SrovER sufficient to con-
Wet his accomplices. whose names we withhold
for the present by request. The severest penal
ties of the law should be visited upon all the
parties engaged in this crime. SrovER is guilty
of double crime. gross violation of public
trust and an Infamous abuse of the confidence Of
friends who became bis security in large
amount. $50 900. for the faithful discharge of
the duties Of the Office. His bond was signed by
number of his friends in this city and in Mont.
gomery county unhesitatinsIy, such was their
confidence in his personal integrity and business
qualifications.
Fortunately the war bonds of the State were
all disposed of at high rate, ninety-two. before
the fraud was made public. At the first stock
board in New York ON Friday last Indiana SIS
sold at 81 q; at the second board. after the
fraudulant issues became known, they dropped
TO rs. STovER refused TO disclose any informa-
ton the disposition of the issue. It is
known into whose hands these fraudulent bonds
have fallen. They can be identified, however, and
innocent holders must suffer by the rascalny
The effect will be to weaken confidence in the
stock banks based upon Indiana securities, until