Letters and Literary Memorials of Samuel J. Tilden, v. 2

by Samuel J. Tilden

"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.