The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-08-07
PRICE TWO CENTS.
AN OVER ISSUE OF BONDS.
PENNSYLvINId'S SINKING FUND COM.
MISSIONERs MYsTIFTED.
Letter from seIgman a. 60. that Led 10 the
Discovery-Forty-nin Thousand DoiIars
worth Already Presented for Payment

N sengman ~ 20. that Lee q
ACKNOWLEDGEMENTS Thousand DoIIsrs
worth Already Presented for Payment
HARRISBURG, Pa, Aug. 6.-For some time
the Commissioners Of the Sinking Fund and
the officers Of the Farmers and Mechanics Ma
tional Bank Of Philadelphia. the fiscal agency
OF the State Treasury. havo been mysti-
fed concerning an overissue OF bonds OF
the loan OF 1883 Since the LIST Of
February last coupons OF the bonds
OF that Issue. OF which the Commissioners
had no knowledge or suspicion, have been
dropping into the Treasury for payment. On
the 2oth OF May last the banking house Of j.
W. Seligman Co. OF New York sent to tho
Farmers and Mechanics Bank eighteen bonds
offs 900 each. with the August coupons at
tached. In the letter accompanying the bonds
the Selgmans say: We don't expect you to ro-
deem them yet, but merely to examine them
carefully and report to us tomorrow by wire at
our expense whether they are genuine and reg
ular In every respect and in order for redemp-
ton. We ask this information, az they como
from strange party in Europe" This cautious
letter was sent with the bonds to the Sink
Ing Fund Commissioners. and 1t gave those
officials the first serious alarm in regard TO the
loan they were about to redeem. The bonds
were sent back to the Selgmans at their own
request, that thew might make further Inquiries
The act Of May 4, 1852. authorized Ave per
cent Ian o 5000 600 interest payable y semi,
bonds Of q 600; and were numbered from to
5000; BY the act Of. April -. 1853.
such amount rs might be necessary to take up
thu. outstanding loans, This loan OF 1853 began
minutes Of the sinking Fund Commissioners
show that only 100000 Of this loan was issued
and the money placed to the credit of the State:
Five years aiterward bonds To the amount Of
t2s,OQO wore put upon the sinking fund ledger.
and the Treasury report OF that year contains
Received from the Girerd Bank on account OF coupon
loan Of Apnl ~ ls5a The coupon hayug been let in
State Treasurer and but recently accounted Tor tsOo.
The loan book shows no decrease OF the old
debt anu no Increase OF the now to that amount.
The members OF the sinking Fund Commission
show that on Dec. 90 1859. the Commissioners
DESTROYED bonds numbered from 5,jOi to 5.700.
which werc found in the vaults Of tho Treasury.
numbered. but not signed Had not the bonds
from 5.iOl to $500 been issued, they would have
also been found and destroyed at the sumo time.
but they were out and gone. Tho Treasury
books show that four hundred bonds for si0O.OO0
were issued and sold Tor the credit Of the Com
monwealth in 1853. but there is no account or
minutes on record Of the call Of any other
amount under this loan
On the lst OF February. 1878 the amount Of
coupon bonds Of the loan Of 1853 outstanding
hat date s. ESQ was rem remi,t"d 10 The financial
agent in Philadelphia. but it was not
enough as other COUPONS began TO- too drop
amount rcmitted by, the Treasury paid
9'eTIs bond, full r ssS to S%s
! with NJ. sou and ending with 5,i99. scattered
| throughout the series were redeemed. This
| goes to prove that 500 bonds $500 600 Of the
| loan were issued, though only. 100000 was
| put to the credit Of the state Who disposed OF
| the remaining 100000?
| The fact that for nineteen years tho coupons
Of the 9Sps in ,6 seeI ,9 S saS sioo n
| 1858. have been presented for payment.
| indicates that until very recently the bonds
wSre in the possession Of the person or person.
| We're in their hands "a late at least rs August.
1871. when the call for tho loan OF
coHvSrsapi With the tha, tho mkt
bonds must be gotten into inn9cent
the Sinking Fund Gommissionefs to pay them,
| Gu discovery Of tho fraud. As interest. would
cease. they could no longer serve as collateral.
The old sinking fund book OF accounts. prior
| 10 1883. including the time Of the transaction.
| is missing.
when these loans wore issued, William Bgler
Of course. attaches 10 Them. as they
tho State Treasurer IN 1852 and 1883. lives in g
iine mansion ON Broad street Phindrlphin and
t,ncess. lie is now suffering from severe
the Sinking Fund Commissioners for nm ex-
PLANTATION. hc WIS not in physical condition to
Tho Sinking Fund Commissioners have do
| cidcd 90 redeem the loan rs II comes due until
the amount OF si2SuOO is reached. They do
| not consider themselves empowered 10 Hgrclter
| bonds Of this issue Is not questioned. Tho
| amount already presented IN excess Of the
100000 is $4,000; As interest on, tho loan
| presented for REDEMPTION. As presented. tho
| Treasury officials will keep u lookout for the
| sources from which they come