The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-03-25
What a Noss-Ton,Nercisi Banker knew
About Aix sI0e Bonds.
rEOTRACTED EXAMINATION.


The iin>tiNUS ArtI!t ItSulilcN lis SESSION ri
1O2 o'>lack Yesterday. and the examination
ut witnesses III the case oi ". ID. Coleman
WAS continued.
Ipou the opening Of the court, Mr.. Wise
suywrsica that 1t ) o'clock recess be taken
for dinner: after which the court might have
an afternoon session. This suggestion he
p,ad,, IN view q! the fac! that the case VIII
prol,sblv OCCUPY considerable length OF
tine.
The Judge said he would see how the tts-
liuauy ran. and ri a later hour decide the
matter.
THE STATE TEEAsVnER on TllE STAND.
Cnlnpel Navo was then recalled to the
stand, and questioned by the dcichre rs 10
the transfer of sinking fund consoS INTO
pyelrrs. lie believed that he had caused
ahou; 100000 cousol bonds to be converted
INTO prc!crS.
Mr.. Rnvall: Wasn't this transaction known
TO the rest Of the Board:
CoIopc! Aavo: thought so; but Cen
cfal Rogers ard Ilr. Taylor denied all knowl-
rl.a of il. There was no secret about the
matter. l think the su .Scstlou OF this kino
MS first made hy Colonel Coleman. /
thought il would be a good investment Tor
tnc State. Ny apprehension at that time
was tia, the difference mas temporary mat
ter. All purchases made at that time re-
rardcd 4, good that is of this kind oI bonds,
but il WAS difficult 10 find them.
Mr.. Wise: Is there any means OF telling
how many bonds ought to belong TO the
sinking fund except from that BOOK ana tnc
warrants!
Colonel Mayo: No. sir !; there is no means
OF telling except from the warrants ana
| book.
Mr.. Wise: You couldn't say if those war
| rants or that book wprc out Of existence that
| one single bond IS gone out of the fund?
| Colonel Navo: Not of my own knowl-
edge, except from the report which Colonel
| Coleman made. The bonds were kept in The
| r,rartaclc for the funds Of the sinking fund
| in liu.boy in my safe. 4 large number
were kept there; all Of them sometimes.
| Sometimes the box was not in my safe. The
| bonds we're continually being taken OFT and
! put buck. Nearly all the purchases that
we're made were Of coupon bonds, though
some registered bonds were bought. There
was about 100000 worth Of coupon bonds
| kcps open in my safe. Witness mere de-
scribes the size Of package made by the
three hundred thousand dollars worth OF
hoads.l Most of the packages We're in 500
600 packages, though many were loose.
| Three persons know The combination Of the
lock of the safe which is in my back Office.
| The room is retired from the main business
Office. Witness here describes the location
CT tho Ireasurcr's office and the private Of
nee referred lo.l E.
Mr.. Royal: Is your safe always kept
locked? ..-.- :.
! Colonel Mayo: No. sir, notalways; during
| business hours il is open. The sale Is usu-
ally open from 9 TO O'Clock. There Is NOT
ALWAYS person in the interior room. where
the safe is, hut the officers are generally III
the main O1flce.
Mr. Royal Do you not sometimes go
into your cllice and find strangers there!
Colonel MAYO: Ies. sir. have found per-
sons waiting toc me there when the Coor OF
lhc safe was open.
Mr. huTai!: VI ere you present WDen
Governor kcmrer mentioned his fears in
regard to the sinking fund to Mr.. Coleman,
and what was his manner:
Colonel Mayo: ! cannot recall his exact
language, but | believe ii was agreed that he
ShouId state TO Colonel Coleman what was
the object of the examination. He told
! Colonel Coleman that lie had heard that there
had been some irregularities connected with
the affairs oil the siuking turd, and that ne
(Colrman) had been seen with certain papers
II hi. possession which he ought not 10 have
had. and that he had been drunk and guilty
of gambling that such conduct was not TO
be tolerated, and that rs it was matter OF
common talk he had sent for him ID
order that an examination mlght DC
made: that lie had been seen where
he ought not to have been with thesc
papers. His manner was deteflpineu'
Nr. Coleman replied that he had been sull'y
OF impropcr conduct, and if the Board
l ly,l-
wotlld do better. He acknowledged that he
had been guilty of improper conduct, but
nothing criminal, and threw himself upon
l the clemency Of the Board. General Ken
per then proposed to 90 into the eXamina
: ton. On Friday night the book vas locked
I'D in nv office. 1t was on top Of the desk
with the pencil memoranda which Mr. Fay
! lor and General Rogers had made. 1t was
i called for between 10 and II O'Clock The
next morning. Mir. Coleman came into th'
Capitol about Ii o'clock on Saturday morn
ing.
Mr.. Barksdale: Didn't you say yesterday
thar there is 10 record OF the number Q
: bonds which the government had!
Colonel Mayo: | said that there was M
record showing what number OF bonds tn
sinking fund was entitled 10. Soft appears
, ,hnurh there ought to have been. have
| never counted the bonds since | have Occu
member OF the Board. The report "hict
WAS made Trha published reportl was aMon!
r the last scut TO the printer. l presume tha
when the report was made the bonds were
counted. The report went 10 the printer
: the day before Christmas.
Mr.. BarkStale Was Mir. Coleman required
to kccpa record! Did The Board ever enter
an order requiring him to keep record!
+ Colonel Mayo: Not during my connection
with The Board.
> MIR. Wise: What did You say was tb(
, amount of deficiency in bonds:
: Colonel Mayo. In value very nearly SIC,
/ 600.
' Mr, Wise: If the consoIs were changed
1 into pcclcrs it was a good operation TO the
State. Now. if Virginia made by this eX
change. ought not the book show an cxceS:
c in place OF deficiency, provided the trans
fer was properly accounted for to the State
; Colonel Mayo: IeS, sir; and there is
: loss of $4,000 IN bonds which Is not &C
| counted for. This result is ascertalne1 D!
the book. ....s.
Mr.. Wise: Did General kemper say what
Kind of papers to Mr. Coleman:
COLONEL Sluyo: / think he said papers
! probably securities. lie did not say where ht
was seen.
t Mr.. Wise: Do you know the party who
, furnished General kemper that iul0rma
liOp: .
, Colonel Mayo: No, sir. .... ....#
MIR. Wise: What three clerks have the
means Of access 70 your safe?
l {nlnnGl h.Jnr ('nl>fnn