The New York herald., 1875-12-29
AUDITOR THAYER.
Yesterdays Proceedings Before the Board Of
Canal Commissioners.
MR.. THAYER'S DEFENCE.
Governor Tilden Orders the Auditors
Suspension
.ALnANY Dec. 2s 1s1f

at half past ten O'Clock this morning 70 consider the
charges made against Hon Francis S Thayer Auditor
OF the Canal Department. There present the
Lieutenant Governor, Attorney General, Comptroller,
Secretary Of State and Treasurer-a full board
| The Auditor was present, and also his counsel G. W.
Miller.
The Lieutenant Governor stated the object OF the
meeting and said he did not know whether any OF the
members Of tho commission would be present The
testimony he added, was here
| Mr.. Magone, Of the commission, hcre entered the
! room.
Mr. Miller said since he had taken his here this
testimony had been placed his hands for the 6rst
time He had asked from time to time for it, but had
been unable TO procure il until He hoped there
was no disposition in this Board TO act unJustly in this
matter, which was very important one. He declared
the Auditor had not had proper and fair trial. He
insisted that If he 70 be tried the charges and
specifications should be distinctly set forth, and the
laws alleged to have been violated cited But here
this late moment, We have batch Of testimony
amounting to 125 pages to act upon without consdera
tion.
Comptroller Hopkins moved that the Board go into
secret session. Carried and the room was cleared OF
spectators
The we're reopened In half an hour and the Sec
reary Of State was designated 10 act Secretary OF the
Board.
The Lieutenant Governor said-Nr Miller this
Board has determined 10 decide upon this question and
you have anything TO say IL will have to be to the
charge made in the report made the Commissioners
which in substance that the Auditor has violated his
| duty.
| Mr. Miller then proceeded to address the Board
arguing that the law which pointed the duties of
the Auditor must be followed stricy-that is say it
must be learned what hts duties are, first, and then
whether he has violated them Now 1t is charged,
far he could understand the matter that the Auditor
has spcculated n-ether for himself or othcrs-ceri-
Gates which eventually to pass through his hands
for payment Hc said the first charge that he had
specuated in certificates when there money
treasury to pay them He had investigated this charge
and found that IL had reference certificates
ing in the aggregate TO SIS 000 The other charge in
! volyed certificates amounting TO from $3.50, 600
5000, 900. Now, in these there money IN
the treasury to pay them, and he had accommodated
the contractors by procuring the for them That
\ was all there was in those cases. There profit
following these accommodations, but 1t amounted TO
great 1t Tor you TO say whether there was a
violation of duty this matter II the law requires
him TO pay certificate when there is money pay
it, and he declined to pay IT, then he has been guilty OF
violation of duty. But there was no violation Of
duty in this regard, and II comes down to this, Did
ho decline to pay from bad motives That is the
question: and when motives to be considered they
want TO be closely scrutinzed. This officer has dis
elimination placed in his hands; matters are
| left to his judgment. He exercised that dis
examination and Judgment when he promised Com
missioner Barklcy that he would reserve
sum of money to pay certain certificates There was
not enough money 10 pay all Some had to 60 with
out payment OF their certificates Now, what did he
dor He did nothing to take money out of the treasury
He was beset at time when panic was in the country
and money was not to be got anywhere Did he use
his position 70 secure money wrongIully from the
treasury for these men2 Not all He took no
money out of the treasury; he simply said that there
no money to pay WITH and then from his private
means or from those Of others money was provided
This violation of law. The law was on the con-
trsry, adhered to- II his offence consists In his pur-
chasing these certificates, show me the law, he said
which prevented him from doing IL may have
been unseemy and ndecorous. but IL not a viola
tion Of law, and shat is what you have pass upon
You asked whether he has violated the law setting
forth his duties and can you point 70 any provision
which prevents him or any ooe else from purchasing
these certificates
The Lieutenant Governor said II could not be said
that tho auditor had violated bis duty n refusing TO
pay these certificates The charge that he became
interested IN these certificates which he refused to
al some time.
Mr.. Miller-Yes, win come 10 that He then in
sisted that he violated no duty which he owed the
State Ii he had injured any It party he
bought the certificates Of He did not injure the State
in these purchases He had discharged his duty to the
State fully He had refused payment when there was
money to pay This was his duty to the State, and
there the interest of the State stopped and ceased He
then referred TO the Governors Message canal affairs
and said had the effect TO damage all canal securities
| II had the effect to depreciate them IL was feared
the canals would not be opened in time for nav
| CATION. You know the Auditor had converse
ton with the Governor on this very subject The
substance OF the conversation that the contrac
tors alarmed they could not raise money their
certificates and they threatened TO give up their
tracts and leave the canals in the unfinished condition
they we're, unless they could have money. II was
communicated TO the Governor that they must have
money and there was no way TO get Il except from
the State. The Governor aid:-Gentemen the canals
must be opened in time You do the best possible
to accomplish T." Then what does Mr.. Thayer do 2
! Why being connected with q bank he made arrange
\ ments with that bank 10 advance ihe
money to the amount Of S16o, ooo Was this good
bad actl He abused from end Of the state the
other for dong whatY Why, for securing money for
the contractors at simple interest and securing the
\ opening Of the canals in time for navigation. Now
this is what Mr. Thayer has done, and do those who
got the money and paid simple interest for IL
I plainS He then referred TO the Willard johnson GER
thcates which, he SAID had not yet been paid and the
who holds them holds them yet at risk; but
! what has that case to do with the charge heres
! those certificates have not yet been audited
! The Auditor had not made single
these transactions; there was nothing 70 make. Mr..
Thayer has SIMPLY acted friend of these contractors
and he has their gratitude
The Lieutenant Governor said he would like to ask a
question. The Auditor BY purchasing the Willard John
son certificates had become interested in them. Now
did he not violate his duty in putting himself in such
position knowing he would have to audit them, and
also knowing that the contract on which they
issued frauduent2
Mr. Miler-He would violate his duty the moment
be fraudulently audited those certificates
Counsel then proceeded TO say that all the Auditor
mad do in the matter Of these certificates
that they were in proper form He has no right to 80
back to the contract and see u II was fraudulent
Comptroller Hopkins then offered a resolution pro-
vidng that the testimony taken before the Canal In
vcstgatng Commission and their report thereon the
Thayer matter be referred 10 the Governor for such
tion as he might ht TO take Mr.. Hopkins said no
offered such resolution for the that he hal
read the testimony which the Board expected
10 act The resolution lost by vote OF yea
nays, as foows;-Yea Hopkins, Il nays, Dorsheimer,
Willers and Pratt s
Treasurer Raines was absent on account OF illness
Attorney General Pratt said he very anxious that
the matter should be placed before the Senate without
loss OF time and would have favored the first in
resolution referring the matter TO the Senate
Such a reference would look like evasion of
responsibility on the part OF the board Counsel had
conceded that the course pursued by Mr. Thayer had
been in violation Of good taste, and hence tho
Board ought TO do nothing 10 encourage such
conduct He had doubts whether
the Auditors case within the statute to which
reference mad been made, and In deciding how to con
strue those doubts he influenced throw them
against the Auditor by remembering that Il was adj
mitted that he had acted In unbecoming manner
He then reviewed some OF the testimony, dwelling Dar
tcuarly upon tho Wells and Case certificates. lie
would take any action against the Auditor because
he had advanced money TO finish necessary work
the canals; but some Of his Of a diff
ferent nature. In conclusion Mr.. Pratt offered reso
luton, which modified at The suggestion Of the
Lieutenant Governor as to read as folows:-
Resolved That requisition Is hereby made upon His
Excecncy the Governor to suspend Francis rhayer the
Auditor Of the Canal Department. and 70 appoint suitable
person perform his duties II shall be made 20
him that said Auditor has violated his duty
hi. lhecL hi.