The New York herald., 1875-12-23
THE CANAL COMMISSION.
AUDITOR THAYER's TEsTIMoNY-NoUrRY AS TO
THE DEPOSITS AT THE TROY CITY BANK
PURCHASE or coNTRAcToRs' cERTIFIcATEs.


Albany, Dec %, 1875.
The Canal Fraud Investigating Commission reassem-
bed al ten A. NJ and another portion Of Mr. Thayer's
testimony was read over TO him and corrected This
occupied untl halfpast twelve 7. NJ The examination
then resumed.
Mr. Magone-Mr. Thayer, the money borrowed under
the resolution Of July 2s 1874 not paid until Sep
tember 30 1875 and there nothing in the law OF
1874 that made the FIRST money paid by the Comp
troler applicable to the payment Of the money thus
borrowed2 A. No, sir; not that know OF;
stakeholder and director in the Troy
City Bank; il was made transfer and
check bank in July, 1874 that bank had passed div
dends for three times 1873, 1874 and 1875; can't
say that IT was account of doing losing business
II was deemed advisable TO pass them; the first State
money was put In the bank at the opening OF nayga-
ton; the Canal Board directed that transfers be
on the Cd OF August, 1874
Mr. Magone-The records show that the transfer was
actually made in the July preceding.
Mr.. Thayer-That is not the fact 50 far this fund
is concerned
MT Magone-And insist have evidence that the
transfer took place in July say Il was done by
the Treasurer for good When was the first
money Of the sl35oo loan made applicable TO your
warrant, and what bank was it put into?
Mr Thayer-I don't know where that money was
| put; draw the money from any bank we want IT,
mained there
4 Mr. Magone-Here Is the contract Dennson held for
new work near Utlca which he lett in such condition
that 1t had TO be completed by your brother, through
Horatio Seymour, Jr A. Yes sir.
Mr. Magone read the provision relative TO delays in
carrying the work necesstatng the interference of
the Canal Commissioner and charging expense TO the
contractor. He then SAID the Canal Commissioner
do this and he must that the canal is In navgahe
condition A. understand he has this power in the
| OF breaks
O. Don't you understand that it is his duty to do this
under any circumstances. A. No, sir
Mr.. Magone read the law which was very general in
its provisions
Mr.. Thayer-I did not understand by Dennison aban-
donng his contract the Commissioner could 60 with
work; did not think this was case; | understand he
can go on with ordinary repairs, not new work;
understood there was work necessary to be done to
prepare the canal for navigation OF this
Character did understand there new work there
and there work absolutely necessary to be done TO
put the canal in navigabe condition; / understood
there other work, such walls, &c
Mr.. Magone-Who told you? A. | don't know.
| Mr. Magone-I was there and saw none you cannot
tell who told your A. No, sir; i think there
authority for my brother 70 employ Horatio Seymour
Jr, TO go on with this work. he could call on the Res
dent Engineer; tho Attorney General told that this
employment OF Seymour the most irregular thing
he knew of; was governed by my advice.
Mr.. Magone-Now we viii 60 back to the Troy City
Bank TO the amount on deposit there the 2st OF
July, 1874.
Mr. Thayer-The amount there had remained there
since the year before. This paper handed me show,
there canal tolls money the bank that dates
1862 % To the best OF my knowledge IL includes all
they had, including receipts since navigation opened
There also interest due amounting to S26S % On
the 10th of August there was $2,s2l o. on July 80
1874, the State had nthe bank S5l Oo0 There to be
added ZOO to this, making $50 000 On the 2Sth of
July S1o4 went into the bank under the transfer
oiuton OF that date
A taken tin half past two.
The commission reassembled at three P NJ.
Mr. Thayer resumed the witness char, and
asked what was the first deposit in the Troy City Bank
under the transfer resolution Of July Il A. f34 900
on July II on the 2sth OF July, $lo AS and on the
3lsSof July ST. 600 tho OF designating the
as transfer bank authorized me TO transfer moneys
Mr. Marone Dto this reeoluffon autborizo Won %
transfer this money this bank-don't you know that
the Auditor has right to make such transfer without
direction from the Commissioners oil the Canal Fund?
! A, Yes, that is the
Mr.. Magone-Don't you know that that money
! was unawfuiy transferredy thought had au-
Mr. Magone-Donr you understand that the canal
funds OF the State under the control and custody
OF the Commissioners ofthc Canal FUND.- A. Yes, SO
understand now.
Mr., Magone-Then don't you understand that the
transfer Of July II done without authority by the
treasurerS A. understand that the law gives the
! Treasurer and Comptroller the power to make these
transfers after action by the Commissioners of the
Mr. Magone-Aner moneys are deposited IN lho
transfer bank there is power anywhere except in the
Commissioners OF the Canal Fund, to get IL out A
Nj Magone-This is no matter or yours You are
not implicated in any violation Of this law. Now, do
you know Of any single instance except this OF the
Troy Bank where transfer was made by any
thority but that Of the Commissioners OF the Canal
Fund? A. don't know of any now; ! would have TO
look all the records l have always understood
the transfer bank then the transfer the
Treasurer and Comptroller; know they do make
transfers.
Mr Magone-I have no doubt they do Now how
this done; there any other action in the
only designating the bank the money In the Troy
Bank under the control Of the Comptroller OF the Canal
Fund.
Mr.. Thayer then produced letter from Governor
Tilden informing him that be could approve Assem-
bly, bill No $50 except as 10 ordinary repairs
plainly IN violation OF the constitution as regards the
al
tent oil $l5 COO might be paid for ordinary repairs
as il was for work TO put the canal in naygable order
Mr. Thayer produced another letter from the Governor
dated June 25 1875 in which he says his OF the Ex
traordnsry Repair bill would not prejudice the $4,000
he tThayer) had paid out The Governor advised him
that he could get the money ($l50Ool under the 0rd
nary Repair bill
General informed you that II would be wrong for your
brother to pay for the work at Utica out Of the Ordinary
Repair fund. A. had several conversations with him
on the SUBJECT and he told me Il would be irregular; he
never gave me written opinion; the Deputy Attorney
General told It could be paid Of the 0rd-
nary Repair fund my brother told that be-
ieved he had right pay for that work OF the
Ordinary Repair fund, but that he dsked 70 increase
such expenses; II suggested by the Attorney Gen.
era that aw 70 meet this expense might be passed;
that was when Seymour was down here to see II he |
could get the money; II was some time IN April; the
Governor thought IL could be paid out OF the Ordinary
Repair fund; never knew what work done there;
told the Attorney General the contract had been
abandoned by Denison; that Seymour had been put in
charge OF the work by tho State and the contractor
was after me TO get money for doing the work under
Seymour heard that Denison had thrown the old |
slope wall into the canal and in order the canal
this wall had to be taken out and thus make the canal
navgable. In view Of these facts the Attorney Gen
era gave II his opinion that II would be irregular to
pay for putting the canal in navgabe order after the
abandonment by the contractor purchased the
tractors certificates and subsequently paid myself II
only few days alter the abandonment that pur
chased the certificates. aware Of the fact that
the Governor had pointed out the willard johnson con-
tract as one OF the unbalanced ones
Mr.. Magone-Didnt you seek an interview with the
Governor October last, ard didn't he ask you who
held the Willard johnson certificates. and didn't You
refuse to tell him2 A. have recollection o! his
asking such question.
Mr.. Magone-Do you rccollect saying you would not
buy these certificates without statement hko that
contained In DC VOLTS afldavit' ! said would not
have anything do with them without such statement
\ Tho statement was made saw De Wolf, and he said
/ something against II being made public ! said 30
much had been said about IL that 1t must be published