The New York herald., 1875-12-21
THE CANAL FRAUDS.
EXAMINATION OF THAYER CoNTrNUED-pUR-
CHASE OF CEgTIFICATEs-THE WILLARD
JOHNSON BILLs-TEE PROFIT PER CENT

EXAMINATION OF THAYER CoNTrNUED-pUR-
CHASE OF CERTHIcATEs-THE WILLARD
JOHNSON B11Ls-THE PROFIT PER CENT
ALBANY, Dec, 90 1875.
The Canal Fraud Investigating Commission met this
morning to continue the examination Of Auditor
Thayer. Mr. G. W. Miller counsel for Thayer, said his
client had prepared statement Of facts as TO each
transaction under investigation. II agreeable he would
present the statement and them If desirable submit
to a examination
After some parley II was understood that the ex.
animation should go hrst and the statement might
be heard aftcrward.
Mr. Thaycr attempted to explain, in to ques.
tions his action in connection with the bill Of McDer
mott He said that John b. Person of Troy suggested
getting him an award; by taking McDermott's struc
tore Il WIS thought IL would cost less; he made the ap
pcaton on the ground that he not likely TO live
long; he spoke to the canal appraisers about the
matter. ~ .-----
O. Did you not go to Mr. McDermott and get him to
reihquish in blank to PiersonY don't know
whether did or not think McDermott executed a
power OF attorney Pierson; got up the claim the
theory that this water power was given on the consd
Grafton that another water power was taken for IT, and
that the State could not take without CONSIDERATION.
@ Then as Auditor of the State, you assisted in gen
tffs 6p pretended claim the StsteF A. No sir;
did not assist in any pretended claim; regarded Cas
just.
Mr.. Thayer denied tnat payments which he had
made under chapter 270 Of the Laws Of 1875 were un-
lawful thai he took appropriations to pay certificates
in which he himself was Interested Paid warrant for
$50 was produced for work done prior TO May !,
1875 He said he interested in all the certificates
cancelled by the warrant He claimed that he under
stood the law of 1870 as justifying the payments
O. Did you have an interest in these certihcates9 A.
had an interest in some of them.
Mr. Magone-Which onesY A. don't think had
any interest IN the $3l, 600 one
Mr. Orr-What was the aggregate Of the transactions
you had with the Troy City Bankf A. $2Sl $50 SO,
Mr.. orr-Have you any record of these transactons2
A. None, except upon scraps OF paper; never Kept
Mr.. orr-Have you those scraps OF papcrS A. may
have; don't know.
Mr. Orr-Will you look for themp A. will, have
no concealrnent to make.
Several certificates the part Of Schuyler work
were shown him and he said he thought he author
lied to pay them without the passage of the OF 1870
Thayer paid Dennson $50, 542 less nearly months
interest He bought these certificates for himself and
eighteen nineteen days afterward paid himself;
he did not audit these bills.
Mr MaRone-I ask If you did not have 10 audit them,
when the law requires you 10 auditY
Mr.. Thayer-Yes sir.
Mr. Magone-And yet being Auditor OF the state, you
purchased certificates which you we're 70 audit
He purchased certificates for sss 600 for G. A. stone,
account Of the Troy CITY Bank.
Mr.. Magone-l find that you we're put IN possession
OF $500 600 by the Comptroller TO apply to this work be-
tore you made these purchases
Mr.. Thayer-lou must bear in mind that borrowed
money must be taken care of hrst
Mr.. Magone-That we know nothing or We did not
know OF your borrowing money for this work
He did not know whether any money was borrowed or
not, the books would show uhey showed payment OF
$l35 600, leaving 900 OF The $500, ,00Ol he had
money Wheh Inc oerthVates "sIs Ptescnte1- SeNelA,
certificates shown him which he purchased and
afterward audited In the OF the Willard johnson
certificates borrowed the money from the Troy City
Bank and passed thom over 10 Mr. Pierson, President
OF tho bank, to hold them for me-
. Mr.. Hagone-Dont you remember that we gave you
before the purchase Of those certificates that
they frauduentf Wness-No sir.
MIR. Magone-I know, and all the members of the
commission know IL, for gave you a written notice.
Mr. Thayer--I was assured that they were not
fraudulent in affidavit made by Dcios pe Woii that
affidavit drew up IL part Of the bargain that
was have that affidavit; paid for the Willard John
son certificates eight per ccnteight per cent OF the
faces accrued interest," that amounted to 1910 GO
in addition TO the accrued interest which amounted to
about ST. 900, the gross discount about ten per
cent; received from the about SIS 600 than
The certificates which gave security amounted TO.
Adjourned I'LL twelve O'Clock noon TO morrow.