"EXHIBIT D.
"The commission to investigate the affairs of the canals of the State present to the honorable commissioners of the canal fund:
"That Hon. Francis S. Thayer, Auditor of the Canal Department, has violated his duty as such auditor 'in respect to the public moneys in his charge and subject to his draft':
"First.—In that, on the 21st day of July, 1874, he procured the passage of a resolution by the commissioners of the canal fund whereby $200,000 of the sinking fund was directed to be invested in the taxes to be levied pursuant to chapter 462 of the laws of 1874; and after procuring the passage of such resolution did set apart said sum in violation of the Constitution. That the auditor's motive was to benefit George D. Lord. That in carrying out such intent the auditor paid $120,497.02 of said sum of $200,000, so set apart, within two days thereafter to Thad. C. Davis, as the agent of George D. Lord. That this was a violation of the Constitution, see article seven, sections two and thirteen. That the auditor is responsible for this misapplication of money, see his testimony, pages 2544, 2546.
"Second.—In that, on or about the 1st day of December, 1874, there being money subject to the warrant of the auditor for that purpose, the said auditor refused payment to S. R. Wells, administrator, of an award in his favor for $5207.50 on the false pretence that he had no funds, and immediately after such refusal negotiated the purchase, and did purchase, the said award at about $200 less than it called for of principal and interest, and on the 9th day of February, 1875, audited the said claim at the sum of $5454.92, and drew his warrant therefor in favor of George A. Stone, as assignee.
"George A. Stone had no interest in the transaction, and the auditor testifies that it was purchased for his brother-in-law, E. J. McKie. As to the evidence of this charge, see testimony of S. R. Wells, page 37 (folio 513 to folio 517); testimony of D. Willers, Jr., page 42 (folios 571 and 572); testimony of the auditor, pages 2507-2511; that the profit went to the benefit of the auditor, see pages 2595.
"Third.—In that, on the 11th day of March, 1875, there being money subject to the warrant of the auditor for that purpose, the said auditor refused payment to George M. Case of an award in his favor for $9768.71, on the false pretence that he had no funds, and, immediately after such refusal, negotiated the purchase, and did purchase, the said award, including accrued interest, at $10,510.73, and did on the twentieth day of May thereafter audit said claim for the full amount thereof, including interest, to wit, $10,730.60, and drew his warrant therefor in favor of George A. Stone, assignee.
"George A. Stone had no interest in the purchase, as appeared by his testimony, pages 2160-2229, and the auditor testified that he made the purchase for his brother-in-law, E. J. McKie.
"As to the evidence, see testimony of Auditor Thayer, pages 2507, 2586, 2595.
"Fourth.—In that, on the 15th day of March, 1875, the auditor purchased a certificate in favor of E. H. French for $1184.26 at a discount of $24.64. It was paid May twentieth thereafter at its full face. As to evidence of this transaction, see testimony of Auditor Thayer, same pages and folios referred to above as to George M. Case's certificate.
"Fifth.—In that, on the 12th day of April, 1875, the auditor purchased sixteen canal commissioners' certificates, amounting in the aggregate to $29,962, from Nehemiah L. Osborne at a discount of seven per cent. per annum from the face thereof, but for what length of time the discount was made we are unable to ascertain, further than that the time was in excess of the time between the purchase and payment by the auditor.
"These certificates were paid May 20, 1875, to George A. Stone. That the auditor derived a personal advantage from this transaction, see testimony of George A. Stone and of Auditor Thayer, pages 2229, 2595.
"Sixth.—In that, on the 28th day of April, 1875, the auditor purchased from H. D. Denison five canal commissioners' certificates, of the aggregate amount of $49,610, at a discount of seven per cent. per annum, but for what time he discounted them we have not been able to ascertain, further than that it was in excess of the time between the purchase and payment. On the twentieth day of May thereafter the auditor audited said certificates and drew his warrant for the payment thereof in favor of George A. Stone, assignee, at $50,542.06, and the amount gained went to the personal advantage of the auditor. As to evidence of this transaction, see testimony of George A. Stone, page 2229; Francis S. Thayer, page 2476.
"Seventh.—In that, on the 29th day of April, 1875, the auditor purchased from H. D. Denison six canal commissioners' certificates, of the aggregate amount of $30,687, at a discount of seven per cent. per annum, but for what length of time he discounted them we have not been able to ascertain, further than that it was greater than the time between the purchase and payment; that on the twentieth day of May thereafter the auditor audited these certificates and drew his warrant therefor in favor of George A. Stone at $31,153.03. That the personal gain from this transaction went to the personal advantage of Francis S. Thayer, see his testimony, page 2595.
"Eighth.—That the auditor drew his warrant in payment for a canal commissioners' certificate, in favor of John D. Hamilton, for $38,000, on the 28th day of June, 1875, in violation of law in this: that he paid it without the sworn certificate of an engineer, as required by statute.
"Ninth.—In this, that the auditor, in June, 1875, purchased a canal commissioners' certificate, subject to his own audit, from James P. Buck, for $6496.28, at a discount of ten per cent. For the evidence of specification, see testimony of James P. Buck, page 2216.
"The auditor claims he made this purchase for his brother-in-law, E. J. McKie.
"Tenth.-In this, that on the 2d day of July, 1875, the auditor purchased canal commissioners' certificates, subject to his own audit, to the amount of $49,953.91, at a discount of eight per cent. and accrued interest, in favor of the purchaser. For evidence of this purchase, see testimony of Willard Johnson, page 2386; testimony of F. S. Thayer, page 2514.
"Eleventh.—In that, in addition to those above enumerated, the auditor purchased, between the 9th day of March and the 14th day of July, 1875, canal commissioners' drafts and certificates, subject to his own audit, to the amount of $64,959.81, all of which he afterward audited and drew his warrants in payment thereof. As to the evidence of these several transactions, see testimony of George A. Stone, page 2241; that the auditor derived a direct personal advantage from these transactions, see testimony of Francis S. Thayer, page 2595.
"John Bigelow,
"A. E. Orr,
"John D. Van Buren, Jr.,
"D. Magone, Jr.,
"Commissioners."
"EXHIBIT E
"COPY OF THE REQUISITION OF THE COMMISSIONERS OF THE CANAL FUND
"The undersigned hereby certify that, at a meeting of the commissioners of the canal fund, held at the Canal Department, in the city of Albany, on the 28th day of December, 1875, at 10 o'clock A. M.,
"Present—William Dorsheimer, Lieutenant-Governor; Diedrich Willers, Jr., Secretary of State; Nelson K. Hopkins, Comptroller; Thomas Raines, Treasurer; Daniel Pratt, Attorney-General,
"The following proceedings were had:
"On motion of the Attorney-General, it was
"Resolved, That a requisition is made upon his Excellency the Governor to suspend Francis S. Thayer, the auditor of the Canal Department, and to appoint a suitable person to perform his duties, if it shall be made to appear to him that the said auditor has violated his duty in respect to the public moneys in his charge and subject to his draft, the particulars of which alleged violations of duty appear in the report of the commission to investigate the affairs of the canals of the State, which has been submitted to this board, and which is herewith transmitted.
"The members of the board who voted in favor of the adoption of said resolution were as follows: The Lieutenant-Governor, Attorney-General, and Secretary of State. The Comptroller voted in the negative. The Treasurer was not present when the vote was taken, by reason of illness.
"William Dorsheimer,
"Lieutenant-Governor.
"Daniel Pratt,
"Attorney-General.
"Diedrich Willers, Jr.,
"Secretary of State."
"EXHIBIT F
"EXECUTIVE ORDER FOR THE SUSPENSION OF AUDITOR THAYER
"State of New York: Executive Chamber,
"Albany, December, 1875.
"Whereas, The commissioners of the canal fund, by their requisition hereto annexed, have required or recommended the suspension from office of Francis S. Thayer, the auditor of the Canal Department; and, whereas, it has been made to appear to me that the said Francis S. Thayer, as such auditor, has violated his duty in respect to the public moneys in his charge and subject to his draft;
"Now, therefore, in pursuance of the provisions of section 2, of chapter 783 of the laws of 1857, I do hereby suspend the said Francis S. Thayer from his office as auditor of the Canal Department.
"In witness whereof, I hereunto set my name and cause to be affixed the privy seal of the State this 28th day of December, 1875.
{ State of New York. }
{ Excelsior. } "Samuel J. Tilden."
{Executive Privy Seal.}
"By the Governor,
"Chas. Stebbins,
"Private Secretary.
"Indorsed: Order by Samuel J. Tilden, Governor, suspending Francis S. Thayer, auditor of the Canal Department.
"Filed December 28, 1875, at four and a half o'clock P.M.
"Diedrich Willers, Jr.,
"Secretary of State."