The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-21
MISSOURpS CRIPPLED Treasury
Paid Railroad Bonds Alleged To Be !lypolhe-
Gated 10 Secure a Loan in New York.
AN Ex-TREASURER TO BE SUED.
Claims Of Over Million and Halt Dollars
Pressing for Immediate Payment
rpx rsrnasApH TO THE HERALD. ]


An extra edition OF the Ecening Post this afternoon
contains more revelations concernins tho present
ondtiou Of the Missouri treasury and The ope-
r.,ious OF the Treasury Ring. A special despatcn
nom Jefferson City says:-"rne State officials are in
a STATE OF great conservation. They were much
chagrusd over tho way ST. Louis papers treated
the mensry report OF State Treasurer Cafes,
and they consulting as to the advisaoii'y Of
throwing every thing on the mercy Of speca' csieo
scssIon of the Legislature Tao call Is liable 10 DO
issued by tho Governor at any moment Gates Is
almost distracted and does not know which way 70
turu. Tho mans condition Is really pttiaole. your
ndcnt IL enabled to make some more new and
,urprispg revslatiops 1. may now 10 positively as
serted that In his embarrassment the treasurer mas
gene 70 exirems not heretofore suspected There Is
reliable authority Tor saying he has hypothccated
With the National Bank OF commerce IN New YORK
city $500 600 the old Atlantic and Pacific Railroad
bonds part security for the advance OF $780, 600
with which TO pay the interest ON the Stale debt.
Tbsse bonds been paid but never cancelled. and
they should remain In the hands Of innocent hold
Srs she state of Missouri can be made 10 pay them
again.
ANOTHER LEAK SUSPECTED
There Is also GOOD authority TOR saying that when
the treasurer strait to get money TO pay
the State interest LIST of July applied TO the
Bank OF ST. Joseph for the $12S 600 Of State money
then deposit there, and that he was told It could
not DO paid; but whssever funds are coming TO the
treasury from taxes and other sources are rushed
right up tho Bank OF St Joseph the President Of
which Is on the treasu rsrs bond Fears are expressed
Of q repetition o. tins Mastiu Bank business.
PRESSING DEMANDS on TIE TREASURY
The amount coupons Of the state hold by the Ma
,iopm al Bank Commerce little over $3.50 600 These
coupons due anu 10 be psla in 1878 ana the Same
that Auditor Holiday declared IN ST. Louis the other
day be PAID alta cancelled, and were then in the
vault OF the state treasury The fetal amount OF State
und maid Ia hA
himself and ali the oIner State officials have been
carrying warrants for their salaries their pockets tor
three months With litte prospect for their payment
lii utter tho money Is paid back that Was borrowed
10 pay interest on the State DEBT Your correspondent
ISSUED by authority OF the Tweniy-uinth General AS
Bembly. and running only two years, that must DO
win be an addillonai burden on tho State treasury
that heretofore taken consideration.
MAsrIN DEFICIT.
The treasurer evidently has NO faith In the secu-
rlty he holds Tor the money lost In the Mast'n Bank,
since u has boen dsiermiusd to enter suit against
J. W. Mercer his prsdscossor on his oniclal
SOW discovered that the M.s.in Bank has
not been able to settle with the State since 1878,
statement Of CAFES written by Colonel Jim Burns,
Of last week. ana who. they say, IS in
bic the treasurer himself They ali believe tnat
the Massins suchersd them, ana Designed Inc very
inus that has occurred The ocials Of tho treasury
ere very retcent, ana but little Information Can be
secured from them.
1t learned mere In 81 Louis that those Atlantic
and Pacific Railroad bonds have been paid and should
1868, aud the State was bound Tor tueir payment,
bat II Is known TACT that thoy, with
paid. have never been cancsiIod. bot hsvS
been ths vault OF The State treasury for years. Al
brown . legislative committee vas appointed 70
make an examination Of the State treasury and re-
snsy bad found large quantity Of old ruOSsh, sucn
bonds, coupons warrants, vol scalps certificates
&c which appeared IS retired. Ia the books Il the
auuItOr,e auo thsy rscomme nded that they be de-
stroysd. The report was agreed 70 and the cotrmit
tse made a bonnrc snd burned the rubbish IN the
month Of February, 1873; but there was y large
quantity Of old bonus that escaped destruction.
Among tnem were those Atlantic and Pa.
tnno.icsd tin the latter part OF tho Twenty eighth
General Assembly, when another committee WIS ap-
pointed examine the treasury vaults and sep what
arbAfsn. rho committee found large Dplnber Of
Saggs pf Which no rscstd had been kspty san mnieh
these same Atlantic and Pacific bonds. They were
counted, sorted and bound ny In separate packages
me back OF each package also tho Of
the chairman OF tho Examining Committee. SEN
10 give receipt Tor The bonds, but
he declined to 40 Upon this resolution
introduced into the Senate demanding receipt from
the treasurer Tho resolution passed the senate but
Mercer and bis friends banosd together defeated
IL In the House; Thus the bonds were left with no
person responsible Tor their sale keeping and subject
10 any use the treasurer might soc III TO make OF
thsm. II has been reported that they were ny
potnsoated dupiag nSgcOr's adminiseru-
tion. Never having bsen cancelled their payment
could DO forced by aay innoesnt heideE The news
tnnt Colonel Gates has used them his great
extremity creates much surprise among hts friends
here, serious fears nov entertained that the
treasury will NOT b. able 10 moet tho states obliga
tIons promptly.
MATURING sTArK oBLECArioNs.
The following are the obligations which the State
must par IN the noxt six months:-$2200 900 borrowed
IRON The National Bank OF Commerce Of New York;
siSo,ooo In state warrants $50 600 Interest ON state
deut ON January /, 1879; s250,00o IN State bonds
issued BY Twenty-sisnth General Assembly, and
$500 of ordinary State expenses This makes grand
total Of $3.50 600. Many leading men OF the
STATE opinion that the pubic credit VIII be i'm
paired u session oil tho Legislature IS not
called at once submit to the people proposition
Tor direct tax to meet tho deficiencies. Much s!
pathy Is expressed for Treasurer Gatcs He Is gen.
crafty admitted 90 be honest man. hut having lftc
experience a public Official he mas been made the
uuwittng cups aud victim OF the Treasury Ring
A NEGRO PREACHER SHOT.