The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-03-31
HreOHr. OF wgE C0NMzxEE AP.
YorxasD TesHyasr1aA aF THE
ATE SnErA SATls&
rs T. - - VI ~ /
THE TWO AUDITORS. EXOAERATED.
DETAILS OF THE CHARGES AGAINST
TREASURER MAYO AND
J =. ,s's COL. COLEMAN.
LEGISLATION RECOMMENDED FOR FU-
! CTuRg MANAGEMENT OF THE FUND. u
rhs Loss ia Bonds, s15, 1855. se-1n
Currency, $3,2o1.

ing Fund, presented their report 10 tue LIZ
pisIature Yesterday, together with VoiuMl-
nous report of the evidence taken curing
the examination. .".r.. = ~ vi
The following Is '~' ...,-, = 40.
-'..1 THE REPORT. --sa 81, 40:
10 the Senate and House Of Dele9dtes %
he Slate of. Virginia: The undersigned re.
spectfully report that they constitute JOHN
cnmmittee of the General Assembly OF yir-
oinia under q resolution originating 10 the
House of Delegates and approved feoiu-
arv 18th. 1874. aud which is in the following
words-to wit "Resolped 1.-THE Senate con-
curing, That Joint committee be appoint
ed To consist of three members on the part
of the House and two on the part or the
Senate. to whom shall be referred so much
of the communication of the Governor as
relates 10 the late defalcatiOn which has oc-
cnrred in the office of the Board OF Com
mis,ioncrs of the Stalking Fund, and all
matters connected with said defalcatlon, ana
that said committee be authorized to employ
an expert (if they deem it necessary and to
send for persons and papers," Aud they
present the following report OF their action
under the said resolution:
Your committee organized in the Second
Auditors office on the 10Th day of Febru-
airy, and proceeded to the business OF their
investigation. They deemed it necessary to
employ an expert, and engaged the services
of r. II. Maury, an experienced broker, and
to whom they were indebted for much Valu-
atle assistance.
They first made full and thorough e1ami.
nation of all the affairs of the Sinking Fund, as
represented by the books in the office of the
Treasurer and Second Auditor, and the bonds
the accounts of the railroad securities Of the
State correct, the following being a sum-
mary of the bonds received by, the Board OF
Public Works from railroad companies in
the settlement OF their purchases of the
States interest in their respective roadside
wit: ... ...... ..-...........-.... ..
From the Richmond aud Danrille Railroad Com
EaIlS. -......................... S.oT,oSf ~
FROM the Orange and Alexandria - ~
From Richmond aud Petersburg =.
Company ......................." 3fS'4uf 10
-.- .... ... .. $2,5S4,453 10
a detailed statement Of the purchases OF
State bonds by the Sinking Fund Board i
herewith returned in duplicate, showing the
particulars OF each purchase, date, amount,
from whom made, &c. . .-
From this statement il will be seen there
have been purchased in all tor account OF TIC
Sinking Fund, and which should low bc on
hand, the amount in bonds OF S3IG, l10.Gl !;
vet the amount on haEt is only 1850. 7I0.12,
SHOW inc Il deficencr of $15.9G9.S9. -.
In the further performance Of their duties
the committee proceeded to take the testi-
mony Of numerous witnesses, which is here
with returned, and thar, in connection with
the examination, dlscloSes the folio wing
facts:
Seven registered consol bonds of the sum
of $4,000 each were, on the 4th and 9th OF
February, 1878, converted into seventy cou..
pom conSol bonds of $1,000 each. This was
done by the late secretary of the Sinking
Fund Board, without authority Of the Board.
OF the coupon consol houdS issued under
the funding bin, and which had come into
the Sinking Fund the amount e S61,To0,
were converted by Joseph Mayo, Jr., Traa>u-
rer. into peeer bonds a. various times during
the year 1878, and the amount OF $4,000
so converted by William d. Coleman, late
Secretary of the Board of Commissioners
The average difference in value Of the two
classes Of bonds is shown to have been about
three per cent, at which rate said Mayo re-
ceived 81 ,S51, and said Coleman 81 $50, max
ing the sum of. S3,20l which should have
been accounted for to the State.
These transfers and exchanges Of consols
for peelers were made by the Secretary and
Treasurer, without the consent or authority
OF the Board of Commissioners being obi aim
ed, and without the knowledge of the First
and Second Auditor, Composing a majority
of the Board,) except LII so much as knOW-
edge Of the issuing OF new bonds for regis
tered conSois, must have come to the Second
Auditor, from his signing the bonds. His
testimony explains the custom and routine
of the Office. by which that act was per-
formed by him, without Il suspicion OF the
want Of authority in the issue Of the bonds.
IL appears that there were no regular meet.
ings of the Board, and that the matter of
purchases was usually regulated and man.
aged By the secretary and treasurer, on con-
sutation with one of the other members,
but that exchanges in all cases were made
without such consultation. i -:
From all this 1t will appear that there was
not that regular system in the management
of the Sinking Fund by the Board OF Com
missioners which ought to obtain in mat
ter of so great importance to the State, and
that there is not, in the present condition
and arrangement of the offices which con-
stitute the repositories OF the fund and
regulate its management, the requisite
legal provision for its safety. The CON-
mittee deem it but just to the Treasurer
10 report that be appeared before them
promptly and indicated a desire TO meet
tneir Investigation, and expressed his ability
to show that the amounts received by hlm,
in the exchanges mentioned, had been put
to the credit Of the State. When presented
with the items he was desired to correct, on
the 10th instant, he asked for day to look
up the evidence he wished, by which to
establish the fact he had asserted. This was
gwen him; but on Monday, Odd, he was en-
gagged as witness in the trial OF the Secrc-
tary and also on the Oath, and his condition
of mind i, not now such as TO enable him to
attend to any business of this character.
They reserve the privilege of hearing his
statement hereafter, and 10 make further
report if necessary. ~. '-'.'f '..'@
The numbers of some of the missing
bonds have been trnced and the Common
wealth may possibly have further eyiuence
to report hereafter as to them. While the
COMMITTEE entirely eX0ncrate tue First and
Second Auditors from the suspicion OF a dis
honest purpose in their connection with or
omission to prevent any of the transactions
mentioned, yet they can but depreeate and
condemn The negligent manner in which the
uffAirs of the SINKING Fund have been con-
Quoted, and they deem it an important ques-
ton tor the General Assembly to determine
whether the officers of the Sinkiog Fund
Board are not responsible on their official |
bonds tor the Deficiencies existing. And if
they are not responsible, then they recon-
mend such legislation us will for the future, |
at least, provide un ample security for tue
State against such Declarations, and the es.
Enlistment OF such legal safeguards as will