The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-12-12
The, following communications were sent
to the General Assembly Yesterday: osn
ss-.,.,ss. sCoMHoNwEALTHioF OF VIRGINIA, j.;
GOVERNORS g. OFFICE, -

GOVERNOR 8 OFFICE, !.
RICHMOND, December II, 1877. j.
To the Senate. and House of Delegates:
For the information of the General As
sembly I have the honor totransmit, here
with Communications which have passed
between this office and the Treasurer and
Second Auditor in relation to the recently
discovered abstraction and Illegal refunding
of State bonds. -
It is proper to state that the first disclo.
cure of these transactions ever conveyed to
the Executive was received through the
publication Of the letter which the Second
Auditor addressed to the General Assembly
on the subject on the 5.h instant. ~,
.a'@-'..' Fl JAMES L. KENPEg.
THE GOVERNOR TO GENERAL ROGERS.
F.. COMMONWEALTH OF VIRGINIA }
Z '.E,ir,,i a. = = GOVERNORS OFFICE,
. RICHMOND, December s, 1871.
General asa Rogers, Second auditor: :.
Sir,-I have the honor to request answers
to the following interrogations at your ear
liest convenience: -" .c
/. At what date did you discover the abb
straction and illegal refunding Of State
bonds mentioned In your communication OF
the 9th instant to the General Assembly on
that subject? ,., l5 4. .G. .- ,zr..es..rr.E
2. How was such. discovery first brought
to your knowledge? ..i sr s,2 f.s.aE..s. .
3. Have you ever made any communica-
ton to the Executive on the subject OF that
discovery; and if not, why was he not made
acquainted with the. facts in the absence OF
the General Assembly or prior to your re-
port or the particulars to that body?
Very respectfully, your obedient servant,
. '. JAMES L. KENPER.
THE GENERALS REPLY. g..
SECOND AUDrToR's OFFICE,1
December 10, 1877.
His E1ceRency James L. Kemper, Gov-
ernor Of Virginia:
. Sir,-I have the honor to acknowledge the
receipt Of yours of Saturday evening, which
came to hand while was in attendance on
the committee of investigation in my Office,
where was detained till at night. Hence
my delay in replying,
And, first, beg to assure your EXcellency
that not the slightest disrespect for you
either personally or officially was intended
by the course pursued by me in addressing
my communication OF the 9th instant
directly to the General Assembly. =
It was my purpose in that paper TO make
q plain, candid, and fair statement in the
outline Of the facts presented as they ap-
peared, and the reason was stated for the
manner in which it was brought to the at
tention of the Legislature. The examina-
ton was not and is not now concluded. It
was very desirable for many reasons that
the Investigation invited should be made
as soon as practicable. II in doing so I
have in anywise violated the eanons OF
official courtesy and respect regret it sim
cerely. 80"
In my communication it appears to me
that the first and second interrogatories are
I am unable to say sat what date I dis
covered the abstracting and illegal refund
ing OF the bonds" It was some two ~
months ago when the clerks engaged in the
work first called my attention to the diff
Guilty which they had in respect to some of
the bonds which appeared to have been abb
stracted, and the examination was contin-
ued, as I have stated, so as to reach 2 more
certain result. ~ ....
In the paper addressed to the General AS
sembly intended to state as explicitly as
possible the reason for the delay and for not
giving the communication the direction
which it now seems was proper-to wit,
through the Executive Department.
Trusting that this explanation will be sat
isiactory, am, most respectfully. yours,
.-I 5~'>E ASA ROGERS.
THE GOVERNOR TO THE TREASURER.
COMMONWEALTH OF VIRGINIA, }
GOVERNORS OFFICE,
.~: -. ........s December s, 1877. }
Hon. Il. III. Z. Hunter, Treasurer: H.. J..
Sir,-I have the honor to request answers
to the following interrogatories at your
earliest convenience: :,.3>1.a4. ,-~5:>si
/. at what date and by what means did
vol receive your first information in respect
to the abstraction and illegal refunding OF
State bonds disclosed in the communication
which the Second Auditor addressed to the
General Assembly upon the subject on the
5th instant? : y4f@. Il: .a.sz 3sa i i
2. II you had any knowledge of the par.
ticulars prior to that. communication did
YOU report them to the Executive, and il
not why not? ..i. 80; - ErEE-5..G',G =
8. Be pleased to state any Information
you now have bearing upon those illega
transactions. s1i'e = tar;
Very respectfully, your obedient servant
.',.1,....' /. a. JAMES L. KEMpER.a
TIE TREASURER TO THE GOVERNOR =: II
= OFFICE OE STATE TREASURER,
~ 1, 50 ssHoH':2; December Sth.
His ErceHency, James L. Kempsr, Governo,
49,, - of Virginia: a.,.-g, ..5.> 4
In reply to your letter OF this date, I bayt
the honor to state that until few days be
fore the meeting of the General Assembly
was ignorant Of the precise object OF 6
search being made by, an officer Of the Sc
cond Auditors Office into the vouchers fol
the funding operations of the, Treasury
Office, which were kept in the presses stand
ing in the part OF the Treasury office used
as passage between the two offices. Find.
ing that much of the time of one OF the
Treasury clerks was employed in assisting
the officer from the Second Auditors Office
which was necessary to keeping up his own
hook, I objected to his absence, from the
book which he was keeping until it was in.
timated to me that search was being made
into some fraud, actual or imagined, sup
posed to have been discovered in the Second
Auditors Office. After this made no fur
ther. objection to the employment of my
clerk, Mr.. Newman, in the investigation
Soon after this General Rogers informed me
there was good ground for suspicion that
more than one bond had been issued In
place. OF the old bond. in many instances
he said he was anxious, to ascertain te
what extent this embezzlement; had gone
His clerk, Mr. Morrison, was soon attei
taken sick, aud up to that time the origina
on which the second bond was issued haG
not in all cases been found, But that searct
was neither thorough nor complete. .Upor
what evidence General Rogers states the
amount funded twice I am not yet aware,
II the opinion Is founded on any search IL
the Treasury Office it would seem that al
the vouchers, lying in q confused heap
should have been examined before any opin
ion was expressed. -. ,.,yr!
II, on the contrary, the books had beer
kent which were required by the funding
- q. ..nooA y. hh l.o,,f hu. the 2annnd Audi