Year: 1874

er urged by me upon the other members OF
the board. Acting upon what l regarded as
good evidence of his capacity and character,
| voted for him, in common with the other
members of the board, and that is the full ex-
tent of my responsibility for his appointment.
That the financial board acted reasonably III
this matter can now be shown by numerous
concentrations of Mr.. Kimpton's manage
ment during the first three years OF his agency,
by the highest financial authorities in New
York, as we'll as by the very great success
which he certainly achieved in many respects
during those years. I am not called upon in
this connection, to defend the entire transac-
tions of the financial agent, but do affirm
that the financial board were warranted, by
good and sufficient evidence, in the appoint
ment of Mr.. Kimpton, and that l had no
larger share of influence in his appointment
than each of the members Of the board.


Another charge made against me is, that as
a member of the financial board, and as At
torney General, am specially responsible tor
the issue of what are known as conversion"
bonds. This charge seems to rest chiefly on
the fact that was member OF that board,
and it is, therefore, needtul to refer to the
constitution and powers Of that board.


The financial board were never charged
with any duty in connection with the issue OF
bonds of any kind.


BY the act of the General Assembly to is.
sue bonds to redeem the "bills receivable, !"
the Governor was authorized to borrow GER
tain sum of money The bonds were to be
signed by the Governor and countersigned by
the Treasurer, and sealed with the seal Of the
State The only duty placed by this act upon
the Attorney. General was to fix, together
with the Governor and Treasurer, the price at
which the bonds should be sold, and the time
for the redemption of the "bills receivable" !"
Every bond issued under this act was signed
by the Governor and Treasurer, and sealed
by the Secretary of State, and the Attorney
General had no pnrt or duty in the issue or
execution Of single bond.


The same is true of the bonds issued under
the act to authorize loan to pay interest on
the public debt. By this act the sole duty of
the financial board in connection with the
bonds was to fix the price at which they should
be sold


The next act which authorized the issue OF
bonds was the "Act for the relief Of the
Treasury" Under this act the sole duty of
the Attorney General was, in conjunction
with the Governor, Comptroller General and
Treasurer, to give directions for the use OF the
honds issued under this act as collateral secu-
rity, and to fix the price at which they should
be sold.


The "Act for the conversion of State secu-
rites" imposed no duty and conferred no
power on any officer except the Treasurer,
who was charged with the work of conversion,
and the Governor, who was to sign, and the
Treasurer to countersgn the conversion bonds.


The four acts now specified are all the acts
under which it is pretended that the financial
board had any powers, or has exercised any
functions.


The Acknowledgement had no duty or pow
er in the issuing of bonds; neither had the
financial board


But it has been said that gave an opinion,
as Attorney General, to Mr.. Cardozo, then
Secretary of State, in which claimed author
ity for the financial board to issue bonds with
out limit As this alleged opinion has recent
ly been made the ground for fixing upon me
the "sole responsibility for the issue" of the
conversion bonds, it is necessary for me to
state precisely what that opinion contained.


Mr.. Cardozo applied to me to know wheth-
er his action in sealing bonds was merely min
isterial or not, and whether by sealing bonds
he incurred any legal responsibility for the
use made Of such bonds by the Treasurer or
the financial agent. TO those inquiries re.
piled that thought his duty in the matter Of
sealing bonds was merely ministerial, and that
| |, IN Ia Ie.
sue of bonds to the financial agent, or the use
he might make Of them. In that opinion l
asserted no authority in the financial board to
issue bonds at all, nor did I say word which
could be construed into claim as has been
recently charged, that it was MIR. Cardozo's
"duty to seal as many bonds as the Treasurer,
instructed by the financial board, requested"


can further say that believe from all
the knowledge which possess that the action
of the other members of the financial board,
both as members of that board and as indi-
vidual State officers, in connection with the
bonds of the State, was dictated by honest
motives, and was intended to avoid the very
results which finally took place.


Another charge is that, as member of the
financial board, Joined in directing the finan-
cial agent to make fictitious entries in his
books so as to disguise the affairs of the agen-
cy. I take it upon myself to say that the
financial board never gave such Instructions,
nor any instructions which were intended to
deceive or mislead the public in regard to the
affairs of the agency. So far as am aware,
the books of the financial agent have, at all
times, been truly and faithfully kept If they
were not, it did not arise from any instruc-
tions to which 1 was a party, or of which l
had any knowledge.


In connection with the sinking fund board,
it has been charged that was a party to a
fraudulent sale of the State stock in the
Greenville and Columbia Railroad Company.
This charge deny in every particular. In
the first place, there was no fraudulent sale OF
that stock, so far as my knowledge or belief
extends. The sale was made at price fully
equal to the value of the stock at that time,
aud was made to party wholly without con-
nection with me, or, so far as know, with
any member Of the sinking fund board. The
statement by whomsoever made, that joined
in sale of that stock to any person who acted
for me, or under any arrangement or agree
ment with me, tacit or expressed, that l was
to have any interest in the stock when pur-
chased by him, is wholly false, and utterly in
capable of being sustained by any evidence.


Another charge is that I engaged in dis
astrous sale of the State stock in the Blue
Ridge Railroad Company. The truth is that
I was not present when that sale was made,
and never in any manner took part in it. My
views as to the proper terms and conditions
of a sale of that stock were laid before the
board in writing, but they were not adopted