The New York herald., 1874-11-21
GOVERNOR LYONS BOND.

Yesterday, In the United states District Court.
before Judge Biaschlord and the Jury. the case OF
the United states W. william Gibson was resumed.
The action was brought by the government against
the defe ndapt TO the sum OF $50 000 being
the amount OF bond which he had entered into
rs surety Ior Ca.eb Lyon, who had been appointed
Governor OF Idaho In 1894 by President Lincoln.
On the settlement OF his accounts Governor Lyon
owed balance to the government OF Si65S5 rs,
and his allegation Is that as ne was proceeding 20
Washington 10 deposit this money in the Treasury
1t was stolen from him. the suit was accordingly
brought against MIR. Gibson as surety to ,ndem-
Nifty the government for the loss In question.
Mr.. A. Oakey Hail and MIR. Ethan Allen were
counsel for defendant, and kr. sherman, United
States Assistant District Attorney FOR the govern
ment
TESTIMONY OF Mr.. CALEB LYON.
Mr.. Caleb Lyon sworn ana examined by Mr.
Ethan Allen IL 1--we on Staten Island; lived
there In 1864 ana 1865 and ever since; was
appointed Governor OF idaho In February, 1894. by
President Lincoln, and l remained in once until
1866 when was superseded by order OF President
Johnson; also hela the position OF Superniend.
ent OF Indian Affairs bond Produced made
that bond to the government; this bond vas sent
to me In blank from the once OF the Secretary OF
Indian Affairs; 1t came to me through the mali,
and that was the arst time ever saw il: with
the bond came my Instructions from the Interior
department; had previously spoken TO Judge
Seagur 10 De one 0i my bOndsmen; l went WIN
Mr. Gibson to the District Attorneys ONCE 20 nave
chat bond executed: understood at that time
Ney; the bond was executed on tue 22d OF June,
1854 I went 70 the District Attorneys olHce
/ was informed that Mr. smith was not IN
then was directed TO go INTO another room OF
n wSsT GIBSON Mr. sn n s
i had come TO execute the bond; you went with
me into rhe office OF Mr.. Rice and Introduced us
Attorney; you said that you did not do tAat tusI-
ness, but that he dif; had never seen Mr.. Rico
before there was some conversation ABOUT my
b0ndsmen: said that Mr.. Gibson, Judge Seagur
and Mr.. springsteen were TO DC my bondsmen;
nsr an Snnr M, tcsv nor anu comn , d9s
me tnat Mr.. Gibson could sign tae bond and that
could go out and set the others Mr. Gibson signed
bond was then blank, vito the exception or Mr.
Gloson's signature then talked with Mr.. Rice .
short time, and he made the remark tAat II
curious Territorial Governor should be called
upon to give BOND.
the bond, that you put II IN your pocket. ana then
went 70 LOOK for the other suretles A. Yes |
went 20 B!eecxer street 70 boarding house, where
expected 10 nna Judge Seagur, out did not meet
him on the same day returned with the BOND TO
the District Attorneys ONCE, Mr.. Sprngsteen com.
1ng with me then signed the bond Mr.. Sprinsteen
also signed it; Mr.. Rice said tnat Was sufficient;
told him that Judge Seagur was sloK ana could
ing justified that was suf11cient; then took the
bond and carried 1t with me TO Washington,
ee w vas ;nen % ss 10 nov
his accounts, aud he answered That the amoaht was
S4s,6s5 70. That amount was no, returned ~ hlm
not returned 1t. BE answered rbat he had been
robbed OF IT, Counsel ior the government got
swer Counsel for defendant put another
question, Why was not that money returned
Ss e
the question, and In doing 30 mace long speech,
claiming that the evidence already IN the case
showed that the money involved In this suit came
Into the hands OF nr. Lyon on the 2sth OF eeptem-
ber 1885, and the plea set up that 1t Was stolen
received re- Counsel oonsended thai @ sais , was not
m honest accounting anu could not be set up in
defence, as 1t was the duty OF Mr.. Lyon, under the
law, to have had prompt accounting VITA the
government. lie referred 70 tne case Of Prescott.
repor led In the third Of Howard. az sustaining his
view Public policy demanded that every depos-
itary Of pubic money should be held 70 . strict
accountability. The condition OF the bond 10
government without iraad or delay. Mr. A. 0aKey
Hail. OF counsel for deiendBnt WAS heard IN reply.
h cd sas a coas yg
object 70 the testimony. He further c0btended
that o public ofIicer coua not DO ncld responelble
for public moneys stolen from aim n IL WAS other
wise shown that ne acted In good laith. Mr.. Lyon
had returned Just account 70 the government,
with the exception Of the money stolen from hun.
and that was stolen from hun without any neg.
ligence on ais part. Judge Blatchivfd alter LIS.
6edne & 70 s m wa 70 " a. sa .nss e
II had been always aeld, under the law, that .
claim for credit must be sybpittod 70 The .aysrQ-
Snent ana allowed Or dlssllowed, Aud chat did not
appear 70 nast oeon do1s n tbs case. he ex-
GUIDED the testimony, and ior the SAKE OF having
the record perfectly clear he TOOK down she fellow
Ing oner from Mr. HALL
~ propose to ask the witness. At the time OF
presenting his accounts or before ne made
Claim any of1cer oil the Treasury for u credit of
tne amount SET up In the pea on the ground that
1t WAS money icioniously stolen from hlm, ana
whether or not 1t MAS dlSaliowed W them. wholly
or In part
The government eounsei objected 70 the question
~ incompetent. immateiial and irreevant.
yudge BiAtchiofd sustained the objection ana
Mr. Hall noted al exception.
z. When did you render this account aud strike
. balance Of e.e,5o3 1871 A. rendered that account
on the 16th or December. 1859.
AT tRis stage Of the proceedings Mr. Hal begged
to ask the Court for continuance OF the trial
until they could obtain from the government
certificate OF the dsaliowance of shis claim, Or
their reasons f0r disallowsnce, Tns was ar ap-
peal 70 the user elton OF the Court Inc defendant
had been taken oy surprse, ana tae government
had taken LITTLE notice OF The case except 70 nle
It's lssuaole plea before the beginning OF the pres
ent term.
Judge Diatchford said that, looking at all me
surroundings III the case, he thought II would be
. wise exercise oil tne discretion or tue Court TO
refuse TO gran TIE motion made by bir. Hal.
Mr.. Hall offered 10 prove That Gibson signed the
pond on tue understanding that Juogt -cdgur
would sign the bond also, and that without ais
s0toson's) knowing II, b. G. Spgln2stein became
surety on the bond.
Judge Blatcblord excluded the ofrer, and the
jury, oy direction OF the court, found verdict for
the government for S5o,v0G-ths luil amour. OF
the bond.