The Daily state register. [volume] (Carson City, Nev.) 1870-1872, 1871-03-02
REPORT ON The DEFALcATION OF
The LATE STATE TREASURER

10 the senate and Assembly of the
State OF Nevada:
The undersigned, of the Speci,,
Joint Committee Ia examine info all
matters touching the daflcation of
the late Treasurer OF this State. Eban
KhoadcS, nave 10 report thai they have
examined the records in the suit of the
STATE ag3lISt the securities of said
treasurer, now pending in the Su-
preine Court, and also a number of
witnesses produced before or sum-
moned by the Committee.
Inc Committee do not deem il with
IN lhelr province to express any opin-
ION ia reference to the probable result
81 lhc sun referred to, but have to saw
thai thcy lind that the counsel repre-
Schting Tho state have earnestly and
i'"lhiuilE discharged the duties which
AVE deNoivcd upon them.
-" committee caused the suhstan-
ia. and material parts of the testi-
mnny of nj! witnesses examipeJ nv
them 10 he reduced 10 writing. which
testimony they herewith submit.
u Homcli.tcc beg, also. To briefly
St;'lc some OF the conclusions a, which
theN have arrived in regard to aues-
lions made 10y the testimony.
lAeN and that during the last term
OF office OF Eheu BhoadeS, the Board
Of Examiners f3ilcdto count, or rather
To 20 through tho form of counting
the money in the State Treasury as
oI.cn ~ required by law, and in thar
particular they violated the law. But
your Committee find that owing to h
condition OF the Law, as construed bv
the Treasurer, which allowed him Ia
uclosii Inc money Otthe Stat IN banks
III lrginIa city, Carson City, and San
Francisco, Il to carry NJ upon his
person; and owing L the further facts
.ilat tho Controller and Treasurer
failed to make monthly settlements.
as required by law. and that the Con-
trnllcr's books did not and could not
show the state Of the land and green
back FUNDS; that the Board Of Ex-
alnIncrs only regarded the law re-
curing them to count the money as
directory, and that all attempts on
Their part 20 ascertain the true condi-
tlnn OF The Treasury would be fruit
les. they neglected to comply with
the requirements of the law.
Your Committee express the belief
thai under the circumstances. the
counting OF the public funds in the
treasury al carson, by the Examiners.
monthly or Oitcucr, could not have
detected the deficiency or prevented
the misrepresentation OF the puhic
money.
Your t1inHl.,ee will further state
III this connection, that they are fully
satisfied that there was no complicity
oi tHc part ot any member OF the
Board ot Examiners with the Treas
urg. in his unlawful use of public
moneys. But they are thoroughly
satisfied that the late Controller Of
state did, % Il considerable extent. par
iiclplte "ith the Treasurer in using
the money Of the State for their pri-
waite purposes.
Your Committee fail to find any
foundation 1or the charge, that some
oi the buHdNmen of tine late Treasurer
have been unidentified by the Treas
urcr against loss.
one feature Of the examination made
by the Committee related tothc charge
which has hcan made against the re
firing Governor Of the safe, to the cf-
feet THAI lie had borrowedState N
from Treasurer Rnoadcs.
Your Committee find that Governor
8laScel had some few months before
the death of the Treasurer. heard ru-
nloTs 10 the effect that the Treasurer
WAS 4 d~eiaul.er, and had. with some
""N @'A NNTAA-AAfAA AAAG 4llsANttl. atlI
concluded THAI there was 10 founda-
ton for The rumor Afterwards, to-
wiz: ON the sixth day of August. 1869,
the Governor borrowed of the Treas
the sum of two thousand dol
lars. and gave rs security Controllers
drawn for his salary. The
loan was made BY "A check drawn by
Rhoades, as Treasurer, upon his ac-
count, as Treasurer, with Wells, Fargo.
< Co.. M Carson City, III favor Of II.
q. Bia>tCi or bearer. MIR. Rice testi-
fed that the check was drawn by
ithoadcs and handed To Blasdel, who
banded /; TO him atId directed the ap-
piicStion Of the money, while BlasdeI
swears that he did not have the check
IN his hand, and supposed that it was
drawn upon lthuades' private account.
Without arguing the question, tho
Committee nave 10 state that. while
they regard the act OF the Governor in
borrowing money from the Treasurer
after having heard the prOpriety of
the othc!a conduct of the latter doubt
a. lmprudcnt, yet they 10 not be-
lleve that he knew or believed that
public money was being loaned to
him. II certainly must be evident to
the most ordinary mind, that il Gov
ernor RlasGel had intended to coun-
tenance an improper use of public
funds, lac would not have done so in
the public n alleged.
III justice to Mr.. Rice, the Commit
have TO say, that in their belief no
truthtully states his recollection OF the
transaction referred TO.
Respectfully submitted.
Ms. BoNNIFIELD, So,.
&. II. EASTMAN, Ieiiate
\. {. CLEVELAND, 'oh.
\. G.. HAY, I
J.. \. SAVAGE, rehpis
II. j. TENANT, 'oh'
L concur in all Of the foregoing re-
port except that clause which express
* the belief that a monthly count
ing could not have detected1 the
deficiency, or prevented the misappro-
priation of public money.
THos. II. WILLIAMS,
Chairman Of Committee.