Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-08-09
SPURIOUS SECURITIES.

as we are menaced with solid South.
SPURIOUS SECURITIES.
Discovery Of an Oserissue of One Hundred
Thousand Dollars Of Pennsylvania Bonds
Of 1S53-TAeir Origia a Mystery.
Harrisburg Special to Chicago Times.l
For some time the commissioners of the
sinking fund and the officers of the Farmers
and Mechanics National bank, of PhiladeI-
phia, the fiscal agency of the State treasury,
have been mystified concerning an overi:sue
of bonds of the loan of 1858. Since the LIST
of February last i .sle e4.;'s Of That
issue of which the company had no knowl-
edge or suspicion have been dropping into
the treasury for payment. On the 18th of
May last the banking house of j. d W. Selig-
man d Co., of New York, sent to the Farm
ers' and Mechanics bank eighteen bonds,
5000, with the August coupons attached.
In the letter accompanying the bonds
the Seligmans say: ''We don't expect you
to redeem them yet, but merely to examine
them carefully and report to us tomorrow,
by wire, at our expense, whether they are
genuine and regular in every respect, and in
order for redemption. We ask the informa-
Europe" This cautious letter was sent
with the bonds to the sinking fund commits
sioners, and gave those officials the first ser-
GUS alarm in regard to the loan they were
about to redeem. The bonds were sent back
| to the Selgman's at their own request that
| they might make further inquiries con-
corning them. The act of May, 1852, au-
| thorized 5 per cent. loan of $5,000,000, in
| terest payable semi-annually. All the issues
of this loau was in bonds of $1,000, and
were numbered from / to 5000. By the act
of April 10. 1858, an additional loan was au-
thorized in such amount as might be neces-
sary to to take up the outstanding loans.
This loan Of 1858 began at No. 5,0ol, where
| that of 1852 left off. The minutes of the
| sinking fund commissioners show that only
| $4,000 of this loan was issued
and the money placed to the credit
of the State. Five years after bonds
to the amount of $4,000 were put upon
the sinking fund ledger. and the treasury re-
| port of the year contains the following
Received from the Girard bank, on account
| of coupon loan of April 10, 1858, the coupon
| having been left III charge of the Girard
| bank, of John M. Bickel, former State treas
| urer and but recently accounted for, $2S,-
O00.o The loan book shows no decrease OF
the old debt and no increase of the new tc
that amount. The records of the sinking
fund further show that on the 29th of De
cember, 1859, the commissioners destroyed
bonds numbered from 55O1 to 500, which
were fou"d in the vaults of the treasury
numbered but not signed. Had not the
bonds from 5,501 to $500 been issued, they
would have also been found and destroyed
pat the same time; but they were out ane
gone. The treasury books show that 4Ot
bonds for 100000 were issued and sold fol
the credit of the commonwealth IN 1853; bu
there is no account or minutes on record o
the call of any other amount under this loan
On the LIST of February, 1873, the amount o
coupon bonds of the loan of 1858 was 1926.
900. 10 meet the interest due on tn
date SIS, $50 was RENTED to the fnancia
agency in Philadelphia, but it was no
enough, as other coupons began to drop i
for payment. Up to February, 1873, TIL
amount RENTED by the treasury paid th
, interest in full. Previous to July l, 1871
one hundred and forty-two bonds of 1856;
l commencing with No. SOIL and ending wit
No. 5.499, scattered throughout the serie
were redeemed. This goes to prove that fly
hundred bonds (s50o.0Oo) of the loan W;
Q issued, though only 100000 was put to IL
Y credit of the State. Who disposed of tt
< remaining 100000? The fact that fl
nineteen years the coupons of none of tt
bonds in excess of the 100000 Except tt
: $4,000 that turned up in 1859 have bee
; presented for payment indicates that uni
i, very recently the bonds We're in possessic
of the person or persons who fraudulent
converted them. The bonds We're in the
hands as late, at least, as Augu!
@t,<> In
:, 1852 was made. This was notice to perso
u conyersant with the treasury that the he
II call would be for the loan Of 1853. L
bonds must be gotten into innocent hant
oil be lost by the refusal of the sinking-fu
70 commissioners to pay them on discover
m the fraud. AS interest would cease, th
If could no longer serve as collaterals, and MI
I'd be taken up and disposed of. The
d. sinking fund book of accounts. prior to IS
e' including the time of this transaction,
y missing. When these loans were, issr
rs William Bigler was governor, and Ephra
AL Bank auditor general; but no suspicion
Mt wrong. of course, attaches to them, as Il
on signed the bonds. John NJ. Bickel, the ST
I'M treasurer in 1852 and 1858, lives in t
ELL mansion on Broad street. Philadelphia, ant
LIS believed to be in good circumstances. IL
now suffering from severe illness, and WI
100 called upon by tho sinking-fund comm
90 sioners for an explanation he was not IL
er- physical condition to permit an intervi
nd The sinking-fund commissioners have
cided to redeem the loan as it comes due
til the amount Of S428OO0 is reached. I
do not consider themselves empowered
greater amount, though the genuinenes
tth all the bonds of this issue is not question
The amount already presented in exces
Re- the 100000 is $4,000. AS interest on
the loan ceased OH the LIST of August they viii
rapidly presented for redemption. AS
sented, the treasury officials will keep Il
ere out for the sources from which they com
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