The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-12-07
lsinking fund d-or maybe before that time
consols were taken out. At any rate, the
State is loser in bonds, and the sinking fund
no better off than it ought to be.

no better off than it ought to be.
INVESTIGATION.
The funding act required when bonds
were presented to be funded that state
ment OF the principal and interest should
be made on the bonds.
The law requiring statement on each
bond, andth issuing Of new stock accord
ingly, waSbslieved to be impracticable. BY
an agreement between, the offices OF the
Second Auditor and Treasurer q printed
form, with the calculations and requisitio2
on the treasury for new bonds, to be at
tached to the old bonds, was adopted.
The Second Auditor is not yet through
with bis investigation. Mr.. Morrison, the
clerk who was actively at work on this par
ticlffar subject for months, is now sick.
To the credit OF the Second Auditor be it
said; that nc some risk OF having his Office
subjected to criticism and himself to oppo-
sition when offering for reelection, he has
made public what might have been very rea-
dily concealed, at least until after the time
appointed for his election, If not forever. His
frankness in this matter .is worthy OF COM
mendatioD. There are not many men who
could have resisted the temptation 10 allow
the matter to 60 unreported until after elec-
tion. Indeed, General Rogers was advised
by friends not to be in hurry to make
these deiinquencies public. His answer to
all was that it was his duty to do so, and
that no selfish consideration should be al
lowed to influence him.
THE MUTILATED BOOK.
The first point IN this discovery was made
about two months ago. For time it was
hoped that there was an error susceptible
Of explanation without reflection upon the
honesty OF any one, but fuller investigation
develops intentional fraud, which is con-
tirmed by the fact that leaves have been so
skilfully extracted from the day-books as to
attract no attention from one who uses them
casually. The numbering of the pages Of
the day books lin ink were also changed to
hide the extraction OF the leaves.
For the information OF people not familiar
with the Capitol it should be known that
the offices of the Second Auditor and Trea-
surer are separated by. a door, which was
formerly often unlocked, and day or night
an employe Of one office could easily pass
into the other.
Some OF those in position to know are OF
opinion that several thousand dollars OF
these funded but uncancelled bonds were
sold upon the market, and that when
brought into the Second Auditors office for
| the second time they were brought by in
nocent purchasers. In this way is the fact
accounted for that $4,000 OF them did not
reach the Second Auditors office until after
the end Of Mayo's term OF service in April,
1874. Some OF the fraudulent funding was,
however, done in April and some in Octo'
Der, 1873.
It is possible that the stamp "funded y
had been removed by chemical process from
some OF the bonds which were used in this
fraudulent transaction. That will be found
out in a few days. ..
| THE TREASURY.
Mr.. w. w. Henry yesterday moved for 0
Joint committee OF investigation, and the
House adopted his motion and sent it tt
the Senate.
1t ought to be understood that the devel
opments in the Mayo case caused revolu
ton in the manner OF handling bonds
They are now cancelled by punching hole
through them at the Second Auditors oftic'
as soon as they are funded or transferred
Such thing as double-funding would b.
impossible under the present system. Th
mere stamping OF bond "funded" d" is no
relied upon; but the bond, coupons, an
all, are mutilated with the punch 80 that th
marks may be seen twenty steps distant.
| Inc O0lSSlOH TO uaFk tue JULIUS 'luHu
ed" the Second Auditor claims, rests upol
his Office only with respect to the bond
issued under the act OF 1S71-one lot. A
to the others; it was not has duty to see tina
they were cancelled or marked to preven
fraudulent funding.
The object Of the party removing tn
leaves from the day-book was to prevent th
tracing of the first funding of the bonds, q
the numbers appeared in that book and no
in the funding registers.