The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-07-05
A Finnp .e,ni Sensation.

IRREGuLARIry IL FUNDING SOUTH CAROLINA
STATE BiLLs--ARREsT OF ALEXANDER
LAuGnfiN, THE rUNDER RxPERT-TuE
VALIDITY OF FIX HUNDRED THOUSAND
DOLLARS OF BILLS INVOLVED.
COLUMBIA, july This morning II was
generally known that Commissioner Colt,
who Ia Charged with the settlement OF The
bonded debt OF the State I'm accordance
with the decision OF the Supreme Court OF
the State, aud also with the funding Of the
bills OF the Bank Of the State under a recent
act OF the Legislature, had made an affidavit
before Trisl Justice Tickling charging
Alexander &. Laughlin with grand larceny,
in that he had upIamfully and with fraudu-
lent intent appropriated TO his own use
certsiu bills OF the Bank Of the State pre-
sented to the special commissioner for fund
ing under the act OF 1880.
On the examination to-day Hon. James
{. Colt, sworn, testified as follows Is spe-
cial commissioner under the acts to settle
the debt OF the State in accordance with
the decision OF the Supreme Court aud Of
the act to provide for funding bills of the
Bank OF the State In consolidated bonds or
stock. The latter act provided for an ex-
pert TO examine the bills presented, and de-
termine between their validity or invaldity.
Under the provisions Of the act he em-
ployed Alexander G. Laughlin so To ex-
anime those bills. His duties were to ex-
anime packages OF bills presented for
funding and count them, separating genu-
inc from the spurious bills, and to cancel
them after examination, put them up in
packages. seal and certify upon the face Of
each package the amount OF bills found
valid, also the amount found invalid. The
pl aH in,
all the corners sealed with wax, and
stamped with seal especially made for the
purpose.
Tee first intimation that things were
going wrong was on the 29lh OF June,
when Governor Simpson sent for witness
and sid that he had been informed that
there was suspicion that irregularities eX-
isted in connection with funding the bills.
Governor Simpson also stated that there
was certain package that did not contain
a number OF bills corresponding with the
endorsement on the face OF the package.
The Governor said he had beard it tue night
before. Witness went TO the State Treas
urer and told bin that be desired to make
an examination OF certain packages.
just at that time it was not con-
venient TO make an eXamiOatiOn, but
witness afterwards made an examination in
the presence OF the Treasurer and Mr.. Mar"
tindae. Upon the count the witness did
not find the bills In correspond with the
amount certified on the face OF the package.
The package said to contain S2,0l5 80 was
found to contain only S1,61G.10. He found
nothing further. Mr.. Colt stated that
100000 of bills bad been counted. sealed.
and certified. for which only about 100000
in bonds had been issued. To recount
the bills, which had been counted by
Laughlin, would require fully three
weeks, and would take five experts. A
recount would not involve an eXami-
nation into the geDuinenesS OF the bills.
The canceling OF the bills was done by
machinery, Adam Green, the colOred mes
senCer, generally being employed in this
service. Up TO the 9Th Of June witness had
two assistants in his Office. Lee Hagood
and IL. NJ. Davidson. The latter kept the
KEY Of the safe. Lauehlin counted. the
bills, and the custom was to put the pack
ages in the safe. Witness was sometimes
absent during the counting and cancellation
Of the bills.
The Court decided to fix the bail at
40, 500 for the appearance OF the defendant
at the July term OF the Sessions Court.