The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-21

Greatest HO4ucst
The affair OF the fraudulent issue Of Indiana
State bonds Is evidently coming to head. In
yesterdays issue we published an obscure,
oracular letter from Mr.. Samuel Halfett, of the
firm Of Samdel Hallett Il Company, Wall street.
upon the subject; and ON Thursday, as our
readers will see by our legal reports in an
other column, this Mr.. Halett was indicted by
the Grand Jury upon the charge OF forgery IN
the second degree, and gave bail in the sum OF
ten thousand dollars to appear and answer the
Indictment. Mr.. Hallett, it will be remember
ed, is the Wall street broker in whose name
the fraudulent bonds were issued; and, as Mr.
ID. c. Slower, the confidential clerk Of the for
mer State Agent of Indiana, who issued the
bonds, is also before the Grand Jury, and will.
it is presumed, turn States evidence, there is
every prospect that this mysterious business
will soon be subjected to the searching light OF
thorough legal investigation.
The fact is now before the public that
fraud has been committed, and it Is admitted
that the overissue Of bonds amounts to two
and . half millions of dollars--a swindle
greater than that Of Schuyler, and equalled in
this country only by the stupendous operations
of Floyd and Thompson. 1t is admitted, also,
that the officials Of Indiana knew Of the OK
istence of these fraudulent bonds for long
time before the matter became public. Mr..
Hudson, the State Agent of Indiana here, is
said to have been cognizant of the fraud fifteen
months ago. Governor Morton, of Indiana,
knew of it FIVE or six months ago, and came to
this city to consult with attorneys and brokers
upon the subject. Other Indiana State officials
are also implicated, since an arrangement was
made by them with the Wall street brokers for
the concealment of the fraud and the redemp-
ton Of the fraudulent bonds through the legiti-
mate State Agent in New York. Such being
the facts of the case already developed, the
question of interest to the bondholders may
be whether or not these fraudulent issues will
be redeemed by the State; but the interesting
question for the general public is, Who are
the greater rogues the officials of Indiana
or the brokers of Wall street?
| There are two sides to every question, and
there is great deal to be said upon both sides
of this question Of comparative roguery.
| long established and well maintained bad
| reputation would seem to entitle the brokers
to the palm; but then official corruption is by
| no means so new thing in this country that
the officials Of Indiana may claim presump-
| tive innocence. If it had not been for the
roguery Of the State officials there would have
been no fraudulent bonds; but, them If it had
not been for the suggestions Of the Wall street
brokers-who probably devised the whole
scheme, and tempted unsophisticated Slower,
as Satan tempted Eve-there would have been
no roguish officials. Verify, the question be-
comes difficult, and needs the acumcn Of
Philadelphia lawyer for its solution. The
vcxed Query in regard to the assault upon
Billy Patterson is nothing to this. That both
brokers and officials were cheek by jowl in tho
matter it is only fair to believe; for when the
| officials came on here, some time ago, the
brokers entertained them with dinners, suppers
and yacht excursions; and when the brokers
found themselves in very tight place the off
cials recprocated by hushing up the fraud
| from the public, in order, as is now stated, to
| secure for themselves q new war loan Of two
millions of dollars more. This patriotic COM
pounding OF felony is noticeable feature Of
| this extraordinary affair. We are of opinion
| that the Indiana State officials might better
have adopted the policy Of honesty, and al
lowed other States, not thus embarrassed, to
carry on the war. Perhaps patriotism was not
the only motive for silence, however. 1t very
seldom is in such cases.
| But while this patriotic sham moves us to
award the merit of the greater roguery to the
State officials, the course of the New York
Tribune also impes us to the same decision.
The Tribune, having government job or two
on hand itself, very naturally favors the worst
rogues, upon every occasion, particularly if
these rogues happen to belong to the republic
can party In this affair the Tribune throws its
| bat into the ring in defence Of the Indiana
party, and even goes so far as to insinuate that
our Attorney General, Mr.. Dickinson, and our
District Attorney, Mr.. A. Oakley Hall, were the
public Of all knowledge Of this fraud when it
was first revealed to Governor Morton and his
| friends. 1t will be difficult, however, for the
Tr;J,ae to explain why Governor Morton and
the other Indiana officials did not go before a
magistrate, prefer q charge against the guilty
| parties, take out warrants and have arrests
made as soon as the fraud was discovered by
| item, If, after such proceedings, the Distrc.
Attorney Or The Attorney General interfercd
and advised silence, we'll aud good. But what
does the fact tist tho Indiana officials did no
such thing plainly intimate is IL that the
officials had seen the guilty parties before they
visited Mr. Oakey Hall! Is it that an arrange
mcnt was made between the officials and the
brokers before Mr.. Hall was called in? Mr.
Hall could do nothing against the criminals
until charge was preferred against them
under oath. As soon as this charge was pre-
ferred he had Slower arrested and IIallett in
Ii a.. II.