The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-07-11
NEW ORLEANS, SUNDAY, JULY IL, 1875.

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Q.-Has Mr.. George G. Benham an account
with Mr.. Clinton on his private books?
A.-Yes he has some three or four accounts
say George G. Benham, Benham Bros, BEN
ham s Nash, and George O. Bsnham, lumber
account
Q.-What has been the condition of these &C.
counts?
A.-(E1hibiting account current book. On
February 49, 1873, Benham l. Nash stood in
debted to MIR. Clinton 1880 Sc. On April 7, Geo.
q. Benham 1886 so; and on September I, Geo. O.
Be nham, lumber account, 1857 63. During 1873
the account Of Benham 4 Nash was reduced by
payments and sales Of cotton. On September 1,
1874, they owed Mr.. Clinton balance of 1888 81;
Benham, lumber account, $ll97, and Geo. G. Ben
ham in the month OF August, 1858.
Q.--Have these accounts been paid In whole or
in part since August, 1874
Ayes, in part. In September, 1874, Benham
turned over to Mr.. Clinton l01 900 feet of cypress
lumber at $40 per thousand, which was duly
credited to him, and on Goth August he gave
him twelve consolidated bonds Of $1,000 each,
which at fifty cents on the dollar amounted to
IS o. This amount was credited as follows
Say TO account Benham Il Nash 1888 81, and
balance to account George G. Benham $4e6 43.
Q.-Does Mr.. Benham still owe Mr.. CGnton2
Ayes; he owes him some 1896.
PETER MOONEY.
New Orleans, May Is, 1875.
4nGl6 WUulu stcIu w Uo D ulULV0 Ill tu6 dCuUu
ofthe Auditor in the subsequent funding of these
warrants, looking perhaps to the collection of a
bad debt. To this end We questioned Mr.. Clinton,
with the following result:
Q.--Have you for the past twelve or eighteen
months considered your various claims against
George G. Benham as good?
Al have, inasmuch as l held. and have for
some time held his notes secured by mortgage
for some fifteen thousand dollars, as collateral
security for any amount he owed me or might
currently owe me.
The act of mortgage was before James Fahey,
Notary Public, and is on record in his office.
Of the Armstrong warrant, and the proceed
ings that led to that being issued, the COM
mittee say, after reciting the charge and tes-
timony of witnesses
While we do not desire to screen the Auditor
from just censure in this, or any other matter,
justice compels us to say that if there is fraud
on the State involved in the vouchers named
and we do not ourselves doubt 1.-THE chief, if
not the entire
CRIMINAL RESPONSIBILITY
rests elsewhere; and the chairman Of the Con-
tingent Expense Committee, and possibly the
Speaker OF the House, owe it to themselves to
explain the suspicious circumstances connected
with them. (See examination OF Auditor, ap-
pended.)
The committee still follow up the charges
contained in the report of the legislative
com mittee, and as above stated, in each case
either exonerate or sustain the Auditor. In
conclusion they say:
Our examination has led us into the history of
the bonded and floating debt of the State, and
shows the transparent fraud by which large
portion of it has been crea.ed. Without taking
into consideration bonds issued for building
levees, to railroads and to other interpretations,
large issues have been made for the purpose of
absorbing the floating debt.
1t is evident that the market being flooded
with warrants issued under the reckless and
fraudulent acts OF the Legislature, schemes for
funding them is a favorite plan for getting them
out OF the way, thus making room for fresh
issues. The most infamous illustration perhaps,
is act 81, of 1872. by which the school fund was
deliberately robbed.
The unrelentless systems of plumber which are
pertinaciously ma ntained, would lead any lover
OF the State, cognizant OF the facts, to conclude
that the only remedy is to make an example Of
some or all of the thieves who have, under the
title Of honorable" been and are preying upon
the treasury, by giving them an opportunity to
serve the State for term of years In the Peni-
Tertiary.
on the part Of the Attorney General, under tho
direction of your Excellency.
In the effort to place the
FINANCES OF THE STATE
upon sound basis, we consider:
]. That 1t is absolutely necessary that the
existing bonded and floating debt Of the State
should be rigidly scrutinized by the Board Of
before it's form is changed into the
new consol dated bonds. This lis due both to the
State and to the holders Of it's valid obligations.
2. A thorough reorganization of the offices OF
the Auditor and Treasurer, IN order that the
accounts of the State may be properly kept and
the proper checks had against error and fraud.
8. Reform in legislative appropriations, par
ticularly in the contingent expenses Of both
branches Of the General Assembly, which in the
past has proved perfect "bonanza of fraud
and corruption.
f. Reduction in the expense of assessing
and collecting taxes.
For the year ending December 81,
1873 the parish Of Orleans paid
taxes to the State amou ting to. 2,770, 541 10
The remaining parishes paid. ..... 995,3l7 70
Total taxes collected SO, 765, 1858 Sc
The commissions paid to collectors were as
follows:
Other parishes ................... $3.50 20
Total commission paid. ........... s256,8l4 63
5. The most rigid economy in the annual
reduction Of salaries and abolition
)f all useless and unnecessary Offices.
1t is utterly impossible for us to report any
hing in this lion but the bare facts as we
nave ascertained them.
The character Of the vouchers on which this
,laim against the State was based, their having
title or no value in the market, the described
manner in which the warrants for them were is
,ued from the Auditors Office the record OF their
unding by the Board of Liquidation, the fact
hat they did not come within the provisions of
he act creating That board and that their funding
vas clearly Illegal all lead us to cay thlt while
We do not assume to fix the immediate RESPONSE
oility upon any person or persons, we are Of the
opinion that gross wrong was committed, both
n the issuance Of these warrants and in their
subsequent funding.
We respectfully suggest that, considering the
arge amount involved in the transaction, it is
worthy OF investigation in order that such
may be fixed upon the proper par
les to the wrong. It cannot be done otherwise
han ex parte by examiners. as they have no
PRACTICAL power to compel testimony.
1t is greatly to be regretted that the Auditor
lid not press his opposition further in this mat
or, and that he yielded apparently to a corrupt
PRESSURE so far as to share the responsibility,
With others. OF funding these warrants.
We must frankly say that this is the most re-
of anything we have found, either in
lis records or in his history as Auditor.
And if policy or political reasons swayed him,
lis object failed, and his participation in the
unding has given his opponents material for
What we consider the only serious charge alleged
gainst him. In this matter there was loss to |
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