. >f-< Nr\ I ILLINOIS CANAL SCIUP FRAUD. IE FORT OF EVIDENCE . n ^jnvriitigatiou by \\\t 6vand ^(uvjj (U" Q \\t: aathv roT'Vfy jyj^ TLnj! OF THE CiRCl'lT COUKT OP SAID CoiSTV, J'i.i';'; fvcb io br publishrb bn ;i lloft of !l)f 4^ninb |un]:) 5< >^ UNIVERSITY OF ILLINOIS LIBRARY Class Book Volume 38 U Sa583 Ja 09-20M _ THE GREAT CANAL SCRIP FRAUD. MINUTES OF rPvOCEEDINGS, AND REPORT OF EVIDENCE IN TUB INVESTIGATION OF THE CASE, » BY THE GRAND JURY OF SANGAMON COUNTY, ILL., AT THE APRIL TERM OF THE COURT OF SAID COUNTY, 1859. Orbcrtb lo be p«bHshcb bn n JJote of the (!:r3ub|uriT. > >♦« DAILY JOURNAL STEAM PRESS, SPRINGFIELD, ILL. 1859. Sa5S3 INTRODUCTORY. C- V y U- Tbe Circuit Court of Sangamon county commenced its session at the Court House, in Springfield, on Monday, April 25th, 1859. The panel of the Grand Jury selected by the County Court, was as follows : WILLIAM BUTLER, Council Sampson, WiLLrA\: Vermillion, Samuel H. Jemison^ William Crafton, TuoMAS Kerlin, Jesse Ruble, Orlando Wadham C. W. Vanderen, B. A. Vanderen, Andrew Rauch, Armstead Sims, William Patterson, Jacob J. fVeber, Harrison Baker, John L. W^illson, Joseph McDaniel, James T. Robinson y Abner Wheeland, GeoRge Poaver, AVILLIAM a. LOCKRIDGE, Samuel H. Jones, John Caldwell. Of the above, all except those whose names are printed in italics, appeared and were qualified as Grand Jurors. The names of those selected by the Court to fill the vacancies are given in the body of the minutes herewith appended. '.^ 1.39378 MINUTES OF PllOCEEDINGS. Grand Jury Room, April 27th, 1859. The Prosecuting Attorney came before the Jury this morning and asked their attention, which was granted. He then stated that he had a communication to lay before the Jury, to which he wished to call their attention, and, handing the Foreman a letter, retired. The letter was laid on the table, and the Jury continued the investigation of matters then before them. During the day the Foreman called the attention of the Jury, and read the following letter and list of names thereto attached: Springfield, Ajjril 27th, 1859. To the Grand Jury of Sangamon County: Gentlemen : — The undersigned feel called upon to present to you for your consideration, a great fraud commit- ted upon the people of this State, in the funding of what is known as " Canal Checks'' once paid by the State; and request that you will give the matter such attention as the magnitude of the offence and the interests of the State demand. Herewith you will find a list of witnesses, with their residen- ces, whose testimony may aid you in your investigation. Truly, Yours, &c., (Signed,) JESSE K. DUBOIS, 0. M. HATCH, JAMES MILLER. WITNESSES. Enoch Moore, SprinrjfiehJ, Illinois, W.M. F. TUORNTON, Slu'lhijvillc, " Jacob Fry, Ottawa, " John A. McClerxand, Springfield, Illinois. Joel Manning, Lockport, *' "William II. Brown, Chicago^ ** Ezra L. SiieriMan, " " Michael Kehoe, " " Josiah McRoberts, Jolief, " Jesse K. Dubois, Springfield, " John G. Nicolay, " " Hart L. Stuart, Chicago. " The Foreman then asked the Jury if it was their desire to go into the investigation, stating that the witnesses were residing in different portions of the State. He thought if they went into the investigation, it would recjuire time to get the witness- es ; he therefore wished to know the views of the Jury, and for that purpose, he would put the question — All who were for pro- ceeding with the investigation, would rise to their feet — all rose up, except one Juror. The Jury then instructed their Foreman to issue subpoenas, or have it done, to the several counties, returnable on Wednes- day, the 4th day of May next — except for the witnesses residing in this county — that thoy set apart Tuesday next for the exam- ination of witnesses in Sangamon county, so as to facilitate the investigation as much as possible. The Jury also instructed their Foreman to ask the Court to fill the panel from the panel selected by the County Court — only eighteen being present. — The vacancies were afterwards filled by the Court from the by- standers, as follows : Samuel Clark, John TV. Priest, Washington E. Moore, A. D. McGraw, Joel Ballard, James Maxcy. Edward Perkins. TESTIMONY. 3Iay itJiy 1859. Enoch Moore sworn. Question hy the Foreman of the Jury : — How long have you been acting as Secretary in the office of Fund Commissioner in this State? Answer. I have been acting in that capacity sixteen or seven- teen years. Q. Are you acquainted with the different kinds of indebted- ness of the State of Illinois ? A. I am. I am somewhat acquainted with several kinds of in- debtedness. Q. Do you know anything about a certain kind of canal in- debtedness known as ninety-day checks, that was issued by the Canal Commissioners, dated in May and August, 1839 ? A. I have seen such Canal Indebtedness. Q. How many dated in May, and how many in August? A. Of the issue of May, $95,900 — amount I have seen of August 1st, was $10,900. Q, Are those checks you have described made payable at the Branch Bank of the State of Illinois at Chicago ? — and, if 80, to whom are they made payable ? A. They are made payable to the order of the Treasurer of the Illinois and Michigan Canal at the Branch State Bank at Chicago. Q, Are they indorsed by him — and if so, to whom ? A. They are generally indorsed by his name being written across the back. Q.\ Is any portion of them indorsed to any other person — and if so, to whom ? A. In this bundle I find four indorsed, payable to the ordor of William II. Brown, Nus. 271, 2U7, 703, and 96, of date May 1st, 1839. Q. Do you know of any law authorizing the funding of this kind of indebtedness — and if so, when did it pass? Q. I think there was an act passed in the winter of 18-47, au- thorizing the funding of State Scrip. Q. "Was this kind funded under that law — and if so, what amount ? A. In October, 1854, there was $300 of this kind funded ; and in July, 1856, ^200; and only in January, 1857, §13,300 was funded. Q. "Whose name was this $13,300 funded in ? A. $5,000 in John Kellogg's name ; §8,000 in Caleb John- son's name, and §300 in name of William Smith. Q. Did any portion of this amount funded as part of the $13,300 include the Scrip you have described by numbers ? A. They did not. Q. Did you ever see any one of the persons in whose name this Scrip was funded ? A. I don't know that I did, except Mr. Smith. Q. Who handed you this Scrip, or lots of Scrip, makinf up this 313,300 ? A. I don't remember, unless it was Gov. Matteson. Q. Do you know the numbers of the bonds issued on this Scrip ? — and if so, give us the numbers. A. Numbers 886, 887, 888, 889, 890, 891, 892,893,804, 895, 896, 897, 898, and a part of the bond to William Smith— 899. The bonds were issued to bearer. Q. Whom did you hand these bonds to ? A. I don'i recollect. Q. Have you ever seen those bonds since? — and, if so, where? A. I have never seen any of them since I issued them. I sec on the Auditor's Book Bond, No. 899 as being in the Bloom- ington Bank, as deposited as security for its issue. Q. Waathis or those amounts above specified, all of this kind of Canal Indebtedness funded while you have been acting as Secretary? — if not, how much, and when funded? 8 A. Ninety-three thousand and five hundred of that kind of Canal Checks was funded in March, 1857, or in February and March, 1857. Q. By whom was it funded ? A. It was funded in several different names, but for Gov. Matteson, I suppose. Q. To whom did you hand the bonds when issued ? — and why did you think they belonged to Gov. Matteson ? A. I don't remember who I banded them to, but from con- versation between me and Gov. Matteson I understood the bonds were for himself — from conversation that took place between me and him. Q. Can you give us the numbers of the bonds issued on this $93,500 of Canal Checks? A. They are from 900 to 992 inclusive, and one-half of 993. 1^. What amount of interest was on those Checks up to the date of their being funded — that is, this last ^93,500. A. $45,729. Q. Did the Canal Checks indorsed to William H. Brown, Cashier of the Branch Bank of the State of Illinois, as identi- fied by you by numbers, constitute any portion of this last ?93,- 500 ? — and, if so, what bond did it go into ? A. The Scrip or Checks identified by me, indorsed to Wil- liam H. Brown, Cashier, does constitute a portion of the ^93,- 500 ; and Check No. 703 constitutes a part of Bond No. 931 ; and Check Nos. 96 and 271 constitute a part of Bond 933 ; and Check No. 207 constitutes a portion of Bond 934. Q. What was done with the interest due on the Checks up to the date of their being funded ? A. Interest Certificates was issued for it up to July, 1847. Q. Were they numbered ? — and, if so, give us their numbers. A. They were numbered from 1,206 to 1,248, inclusive. Q. In whose name were they issued ? A. In the same name the bonds were issued in. Q. Has any portion of them ever been funded ? — and^ if so, in whose name were they funded 1 A. The most of them have been funded, and in the name of 9 the Auditor of Public Accounts, in trust for the State Bank of Illinois. Q. What amount has been so funded, and their respcctiro numbers? A. It I am correct, about ^84,884 has been funded. The numbers of the certificates making uj) that amount are from 1206 to 1200, 1211 to 1237, inclusive, and Xos. 1239 and 1240. Q. Tell us the numbers of the interest bonds that the Scrip you have just described constitutes, and to whoin -were they is- sued. A. They constitute Interest Bonds numbered from 37 to 69, inclusive, and most part of 30 and 70. They were issued to tho Auditor of State in trust for the State Bank of Illinois. Q. I see near ten thousand of the interest certificates yet un- accounted for. Can you tell us what became of them ? A. Nos. 1241 to 1248, amounting to $8,555, funded and in- terest bonds issued for them. Nos. 162 to 169, inclusive, and part of 170 to the Auditor of Public Accounts, in trust for State Bank of Illinois. Q. I see in the first part of your statement you mention $500 of this kind of indebtedness as being funded in October, 1854. By whom was it funded ? A. It was funded by N. II. Ridgley. Q. Do you know whether this is now claimed as being coun- terfeit ? — and, if so, has suit been commenced for its value or for the amount it was issued for? A. I understand it is said to be counterfeit, and that the Auditor has commenced suit for it. May m, 1859. Testimony of Exocn Moore continued. Question. Do you know of any other Scrip having been fun- ded by Gov. Matteson ? — and, if so, state what kind and by whom funded. Anstver. Yes, there were other kinds than the Canal checks. Q. Was there any funded of the denomination known as Ca- 10 nal 90 day checks, other than the $93,500 spoken of yesterday in your testimony ? A. Yes, there was. Q. Do you know what kind of Checks was funded in the $13,300 funded in January, 1857, spoken of in the preceding part of your testimony ? — and, it" so, describe them and produce the Checks if in your possession, and give us their numbers. A. Here are the Checks — they are numbered — or those with- out the Treasurer's name in the body of the Check — fi'om371 to 397, and from 399 to 406, inclusive, and fi^m 408 to 410, in- clusive — they are all dated August 1st, 1839. Q. What do they amount to ? A. $4,400 — they are all one hundred dollar Checks. Q. Can you give us the numbers of the Bonds issued upon the funding of those Checks you have just described? A. They are part in Bond No. 886, all of Bonds 887, 888, 889, and part of 890. Q. State to whom were these Bonds issued, and f»r whose benefit, if you know? A. They were issued to John Kellogg, and I do not know but they were for him. Q. Who was it handed you the Scrip for funding? A. I think it was Gov. Matteson. I think it was his place to receive it, as he was ex-affieio Fund Commissioner at the time. Q. Has anything transpired since the funding of the Scrip above alluded to, to give you any impression who these Bonds actually belonged to at the time they were funded? and if so, state what it is. Mr. Meggs (a juror) objected to the above question being answered by the witness. The question being then referred to the Jury, it was decided to be a proper question. A. I don't know anything has transpired to give me any ditterent impression than that I had at the time they were funded, I have understood they were sent on to New York to be sold for Gov. Matteson. 11 Q. By Mr. i^rcGraw. Who did you undcrstjind that from ! A. Mv. O. F. Lowe, of Now York, wrote to mo to that eftect. Q. Have you that letter ? A. I linve. it at the State House. (>, Will you ]iroduco it i A. I will, if the Jury will f^ive me time. Here is the letter marked " B." (OOPY OF LETTER MARKED " B.") New Yokk, March 10. 1859, 95 Wall Street. Dkar Sin : — Tour favor of tho 4th came to hand, and I am surprised there was any he»ita:ion in rc;j;nrd to funding tlio Canal Scrip under the law of 1S57. If tho Scrip is gcuuino and the law has not been repealed, there is no course for the Governor to pursue but to fund, as desired. If he declines to do so, you will oblige me bypupply- iug Interest Stock for such porlio# of the arrears as he chooses to discriminate in favor of. I trust he will determine to fund all, as I do not care to have a small parcel that may be repudiated by-aud-by. I have been fully advised as to tho Canal Scrip investigation, and although much feeling has been excited here in regard thereto, I am truly pleased to inform you that your position in the matter has not impaired tho ro peet heretofore felt for you by all who have experienced your courtesy and attention. Tho extremely censorious hint that there was collusion somewhere ; but no one, so far as I know, has been so uncharitable as to connect your name improperly with the transaction. My business and friendly relations with Gov. Matteson have suggested to tho unkindly-disposed that I might have known of the fraud before it was revealed, or at the time of its consummation, and perhaps profited thereby ; but this opinion is confined to that class whoso mischievous propensity is greater than their powvr to fix defamation upon character. Soon after the issue of the first Bonds for the 90 day Scrip, I sold for Gov. Matteson eighteen Bonds, Nos. 882 to 899. A part of these (SS6 to 899) were improperly issued, and are now held by some Banks in Illinois or Wisconsin. Can you inform me what Banks own them now? You can ascertain in tho Auditor's oflSce. If tho Governor has approved tho law removing tho agency, Ac, I would bo obliged for a copy, and also for instructions how to act as a Com'r. for Illinois. About tho loth March, 1855, Mr. Osgood receipted for tho books, Ac, to W. A S. and J. Wads- worth, and at the same time tho American Exchange Bank receipted to Gov. Matteson and Mr. 0. Copies of all the receipts and statements were furnished the Governor. I remain, very truly. Your friend, 0. F. LOWE. E.vocH Moore, Esq., Springjitldy HI. 12 Q. Is the foregoing a correct statement of your testimony as concercing the thing therein stated ? A. Substantially correct. Q. Did Gov. Bissell examine this $93,500 funded since he came into office, that was handed you by Gov. Matteson ? A. I do not remember certainly whether I showed him any part ol it before it was funded. 3fay Gtli, 1859. Jacob Fky called, appeared in Grand Jury Room and sworn. Q. How long have you resided in Illinois ? A. 1 have resided here, or in this State, forty years, I think. Q. Have you been acting as C^liml Commissioner in this State ? and it so, when did you commence and when did you cease acting in that capacity ? A. 1 commenced acting as Commissioner in March, 1837, and ceased acting as Canal Commissioner when Trustees, or Board of Trustees, of Illinois and Michigan Canal was organ- ized, which took place in May, 1SI5, if I am not mistaken. I was then appointed by Gov. Ford as State Trustee, and acted in that capacity up to June, 1846 or '47. Q. AVere the affairs of the Canal during the time you were acting either as Trustee or Commissioner such as to require you, acting in conjunction with others, to issue any kind of in- debtedness to contractors or other persons to whom the Canal was indebted ? A. The affairs of the Canal were such as required the Board of Canal Commissioners to issue both Scrip and Checks. Q. Had you the power, or were you authorized by law, to issue the kind of Checks that were issued May 1st and August 1st, 1839 ? A. We had — they were issued by authority of law. Q. Can you state the amount issued in May 1st, 1839 ? A, Of the regular Checks of the May issue, ^219,324 ; and 18 of what •VTG termed tlie irregular Checks, $'40,735 — making a total of $2(5'J,OoU. The irregular Checks were Checks issued to a contractor on the Canal f<»r the amount due him, or in such Bums as he called tor. W a balance was due him over and above the sjiecitic amount he had called for in one check, we l)aid him what we called regular checks for the balance. The regular Checks, both of the May antl August issue, were issued in sun)s from $1 to $2, $o, •'rilO, ^50 and $100. The May issue was all made payable to the order of J(»lm A. McCler- nand, Treasurer, and the August issue to John Calhoun, Treasurer. The August issue was all $100's— of those denomina- ted the regular Checks. All the Checks of the May and August, 1830, issue, were made payable ninety days from date, at the Branch Bank of Illinois, at Chicago, Three thousand eight hundred and twenty-two dollars of the regular May issue was registered and charged to the Treasurer, liut never put in cir- culatit)n. Q. Here are some Checks, purporting to be of the l^Fay issne, Nos. 703, 271, d6, 207, — are they a portion of the May issue you have been describing ? -.1, They are. Q. Have you any of the Checks of the August issue you have been describing? — if so, show them to the Jury, A. 1 have, here. TJacy are three in number; being Nos. 125, 922, 0-40. They are genuine, I think. Q How many of the August issue have you now in your hand of the denomination of $100? A. Forty-four — all hundreds. Q. Did the Board ever issue them ? A. They never did — they never put them in circulation. Q. Please give me the numbers. A. They are Nos. 371, 372, 373, 374, 375, 37(5, 377, 378, 379, 3S0, 381, 382, 383, 384, 386, 386, 387, 388, 380, 390, 301, 302, 303, 304, 395, 306, 397, 399, 400, 401, 402, 403, 404, 405, 406, 408, 400, 410, 411, 412, 413, 414, 415, 416. Q. Do you recognize this, or those Canal or Bank Checks, 1^ as yon term tliem, as the same you have been describing, as of the May or Angust issue of 1839 ? A. I do. Q. Have they ever been paid, of your own knowledge ? A. They were paid by tlie Bank. YV e had the money there for that purpose — they took them up and charged us with the amount. Gen. Thornton took up about one hundred thousand dollars of the May and August issue, as I now recollect. Q. Has all of the May and August issue been paid and taken up ? If not, what amount remains outstanding ? A. When I was superseded, in 1847, they were all paid and taken up except §315 of the May issue ; and I reported the fact to the Governor and he laid it before the Legislature, as I see it has been published. Q. Did you ever caution the State officers against receiving any of this kind of State or Canal indebtedness, saying it had all been taken up, except $315 ?— and if so, when did you warn them ? A. During the session of our last Legislature, Mr. Campbell, of La Salle, showed me a $100 Cheek of the May issue, and asked me if I knew about this. I told him I knew it was a counter- feit—that there were no $100 Checks in circulation — they have all been paid and taken up many years ago. I then wrote to Mr. Manning, calling his attention to it, and told him my re- collection of the matter was that it was all paid, and asked him if I was correct — he answered me, I was correct. I then went and told Col. Dubois about it, and put them on their guard about it. Mr. Dubois then called for Mr. Moore, and asked him if any of this kind of stuff had been funded. Mr. Moore remarked that a good deal had been funded. This was the first I ever heard of the fraud. Q. "Was Joel A. Matteson a contractor on the Canal at any time while you were acting as one of the Commissioners ? A. He was. Q. Did you, or any one of the Board, ever pay him for work done on the Canal with Scrip or Checks of the May or August issue ? 16 A. I can't Eay whether any of the Checks above spoken of were e\'er paid to Joel A. Matteson, but my impression now is that there was some of the kind paid to him. Q. Tell the Jury what you know — if anything — about the 00 day checks of the regular issue of date May Ist and August 1st, 1830, of all denominations, after they were paid olf and returned to the Canal Ollice. ^1. "We got a box made and put all the Checks in it that were redeemed up to that time — the 90 day Checks of May and August issue. The denominations that were issued were $1, $-2, $5, $10, $50 and $100. I speak of the regular Checks. There may have been irregular Checks in the box — my im- pression is, there were — they were tied up in bundles with an envelop around them, and the amount of each package marked on the envelop. A schedule of the amount of each bundle •was made, one copy of which was packed up with the Checks in the box — another copy was kept by the Canal Board. The box was nailed and wrapped with red tape — an auger hole bored in the edge of the box where the lid and side join to- gether — the hole filled with red sealing wax, and the impres- sion of the official seal of the Board placed upon it. The box was then taken to Chicago by Mr, Manning, the Secretary of the Board, and deposited in the vault of the Branch of the State Bank at Chicago — remained there during my continuance in office as State Trustee, which^ if my recollection serves me, was in May or June, 1817. Q. About what time was this box packed ? A. My recollection is, it was packed in December, 1840. Q. Have you any further knowledge about it? — if so, state all you know. A. When I was superseded by Col. Oakley, I took his re- ceipt for it — I have no further knowledge of it. Q. Have you any knowledge of any other box being in the Bank, and cuntaining property, or anything else belonging to the Canal Board t — and if so, please tell the Jury all you know about it. ^1. There was a small box, about the size of a candle bo;( 16 packed by Col. Manning, some time in 1812, containing Canal Sight Checks and others of various denominations. There might have been some Scrip in it. A schedule was made of the number of packages and the amount of each package, and a copy left with the Board of Canal Commissioners, and the box turned over to Col. Oakley, and his receipt taken. The aggregate amount of Checks and Scrip in the box was a little over $25,000. Q. By W. E. Moore. Do you positively know that the packages put in the first named box contained the amount marked on their respective envelops ? A. I would not undertake to say positively that they did — - I did not count them — but I have no doubt, in my own mind, but that they did contain the amounts so marked on the en- velops. May 7th, 1859. Mr. Joel Manning sworn. Q. Have you been acting as Secretary to the Board of Commissioners of Illinois and Michigan Canal, and if so, how long ? A. I acted as Secretary of the Board from the time of its organization till it went out of the hands of the State into the hands of the Trustees — from the winter of 1836 to the summer of 1845. Q. Do you know anything about a certain class of Canal indebtedness, issued by the Board, denominated 90 day Checks — issued first of May, 1839, and first of August, 1839? A. Those issued first of Maj,1839, we denominated on our books as 90 day Checks, No. 1 ; and those of August, 90 day Checks, No. 2. Q. Tell the Jury what amount of 90 day Checks, No. 1, was issued or put into circulation, of the May issue. A. What we call the regular Checks are of the denomiua- 17 tions of $1, $2, $5, $10, $50 and $100. The irregular Checks are those issued to contractors in such amounts as they re- quested. Q. What amount of the re-ciUing .\ttorney omitted, during Ibe progress of tiie in- eHtign'ion, and until after several votes had he n titkou, to furnish the .Jury witli a bill. About spNeii o'clock on the PToiiinir of th" 11th. nftur the la-;t vnto had been takcD, arjil »hpti it hail become generally known that an indictment wonld not bo f mnd, a bill was presented, with the request that it nhoiild \m " ignored ;" but uodei' tht existing circuiuttauces I deemed it my duty to decline to accept it. REVIEW OF TESTIMONY IN THE INVESTIGATION OF THE CANAL SCRIP FRAUD, BY THE FINANCE COMMITTEE OF THE ILLINOIS STATE SENATE AND THE GRAND JURY OF SANGAMON COUNTY, ILL, About the first of February last, the fact was brought to the attention of the officers of State and of the Legislature, then in session, that a fraud had been perpetrated upon the State in funding a certain class of indebtedness known as Canal Checks of the issues of May and August, 1839. The following resolution was immediately adojDted in the Senate, empowering the Finance Committee of that House to investi- gate the subject : Whereas, it is said that a large amount, in Certificates of the Stock of the State, has heen issued, based upon counterfeit or spurious Canal Scrip ; therefore, Resolved, That the Finance Committee be instructed to inquire fully into the mat- ters herein alleged, and report the same to the Senate, and that they have power to send for persons and papers. After several sittings, during which a large number of wit- nesses were examined — most of whom had been public officers under the internal improvement system of the State — this Committee finally reported, under the above resolution, on the 17th of February, a few days before the close of the ses- sion. The investigation was conducted openly, and opportu- nity afforded by the Committee for the introduction of testi- mony bearing upon the subject, both on the part of the counsel who appeared for the State, and in behalf of Gov. Matteson who was present, personally and by counsel, during the whole 6-- 42 of the investigation. The Committee continued to hear all evidence produced, until the counsel for the State, and Gov. Matteson and his counsel declined to introduce any more. In their report, so far as it was not general, and relates to this particular subject, the Committee content themselves simply with giving a brief abstract of the evidence brought before them, and proposing a plan for the indemnilication of the State from loss in consequence of this fraud. They fur- ther say that, " at divers times there has been paid to Gov. Matteson, from the State Treasury, an amount of money, for principal and interest, to make, with the bonds so issued to him, the sum of $228,182 66, paid, or promised to be paid, to Gov. Matteson on account of the Canal Checks so presented by him." On the recommendation of the Finance Committee, an act was passed authorizing the Governor, Auditor and Treasurer to receive from Matteson, within a certain time, satisfactory security for the repayment of the above amount to the State, within five years. The contemplated security was furnished, ■vfrithin the time specified, by mortgages upon real estate loca- ted in different counties of the State, and also by an indemni- fying bond entered into by Joel A. Matteson, as principal, and R. E. Goodell, John McGinness, jr., and Charles Matteson, securities. On the 27th of April, with a view to a judicial investigation of a crime known to have been committed by some one, this subject was brought to the attention of the Grand Jury of Sangamon county, by a joint letter from the respective heads of the State Departments. As shown by the proceedings of the Grand Jury, herewith published under authority of a vote of that body, it was resolved, by an almost unanimous vote, to enter upon the investigation as soon as the witnesses could be in attendance. The investigation commenced on the 4:th of May, with the calling of Enoch Moore, Secretary in the Fund Commissioner's office, as a witness, and was con- tinued for several days. To examine the testimony adduced 43 before the Grand Jury, and that taken by the Finance Commit- tee—which has also been published since the close of the session of the Legislature — in fact, to present as brief a resume as pos- sible of all that has been elicited, in an authentic manner, in reference to this subject, will be the object of this article. INVESTIGATION BY THE FINANCE COMMITTEE. And first, in reference to the revelations before the Finance Committee. The Committee, in their report, say : In the year 1839, the proper officers of the Illinois and Michigan Canal, to meet their pecuniary necessities, and, your Committee believe, pursuant to their power, by Jaw conferred, issued $265,237 of what were called 90 day Checks, dated May 1,1839, and due 90 days after date ; and they also issued $128,317 of similar Checks, dated August 1, 1839. These Checks were, by them, put in oirculation for a temporary purpose, from the Canal office at Lockport, Illinois, and were in part redeemed at the Branch of the State Bank of Illinois, at Chicago, and a part were received for dueg to the Canal, or otherwise redeemed at the Canal office. While preparing the amount 8o issued, the officers who prepared and signed these •Checks, not knowing how many they might need, partially executed and filled up for future use, a large amount of ether Checks similar in their character, but were un- trimmed, unregistered, and had not the Treasurer's name filled in. How large an amount was so partially executed and filled up, your Committee have not learned, because no register was kept of it, there ,• nor indeed of the others, until they were actually issued by the Secretary for circulation, when he entered the amount of the difierent denominations in a book kept for that purpose, from which ha was able to determine the amount in circulation at any one time. As these Checks were only intended for temporary use, it appears from the reports of the Canal officers to the Legislature, in the year 1840, that they had redeemed and taken up all of both the May and August issue, except $822; from similar re- ports made in 1842-3, it appears that only $?23 was then in circulation, and from various subsequent reports this amount was reduced to $316, which amount it was supposed was lost or destroyed. The witnesses called and examined by the Finance Com- mittee were William H. Brown, Cashier of the Branch of the State Bank at Chicago, from 1835 to 184i; Ezra L. Sherman, Teller in the same from 1836 to 1840 ; Michael Kehoe, Porter in the Canal office at Chicago, from 1847 to 1853 ; Enoch Moore, Secretary in the Fund Commissioner's office ; John G. Nicolay; Joel Manning, Secretary Board of Canal Commissioners from 1836 to 1845 ; John A. McClernand, Treasurer Canal Board from 1837 to 1839 ; Jacob Fry, Acting Commissioner from 1836 44 to 1845, and State Trustee after the dissolution of the Board in 1845 to 1847, and predecessor of Col. Oakley ; Alex. Starne, Secretary of State under Gov. Matteson's administration ; Thomas Conner, Porter in the State House during the same time ; B. C. Cook, Senator from La Salle county ; Jesse K. Dubois, Auditor of Public Accounts ; Wm. F. Thornton, Pre- sident of Board of Canal Commissioners from 1839 to 1841 ; A. J. Galloway, Clerk in the office of J. B. Wells, Canal Trustee after the death of Col. Oakley, from 1849 to 1851 ; Hart L. Stuart, Agent under Gov. French for the funding of State indebtedness from 1847 to 1850 ; Josiah McRoberts, Canal Trustee from 1853 to 1857, and one or two others ; and those called by Gov. Matteson, viz : L. P. Sanger, I. B. Curran, A. II. Moore, AVm. Smith, R. E. Goodell, Lotus Niles, John Nesbitt and N. II. Ridgely. To commence in the order of time after the issue of the May and August Checks of 1839, referred to in the report of the Finance Committee : It appears from the concurrent tes- timony of Messrs. Brown and Sherman, of the Branch Bank at Chicago, and of Messrs. Fry and Manning, of the Canal office, that a part of the Checks were redeemed at the Bank and a part at the Canal office. Mr. Brown, relying upon the books of the Bank, testifies that $100 Checks of the May issue to the amount of $167,000 were redeemed at the Bank, in 1839. Of the August Checks he says $31,471 were redeemed at the Bank. Nearly all the above witnesses agree in saying that the $50 and $100 Checks of both issues, redeemed at the Bank, were not " canceled" or defaced, while the small ones were, Mr. Brown also says, that all these amounts were re- ceived at or before maturity, and were surrendered on the check of the Treasurer of the Canal Board. The last of the May issue was surrendered on the 16th of September, 1839, and Mr. Brown thinks there were none redeemed by the Bank in 1840, as the books do not show it. A report of the Canal Commissioners, bearing date December 10th, 1839, ad- duced in evidence, states that all the May and August issues 45 had then been withdrawn from circulation, except $4,039 of the former, and $2,388 of the latter. Messrs. Fry and Manning both state that nearly a year after the date of the above-mentioned report, viz : early in December, 1840, all the Checks then in the office of the May and August issues, 1839 — both those redeemed at the Canal office and those redeemed at the bank — both canceled and uncanceled — were carefully counted by them and Mr. McFar- lane, Mr. Manning's clerk, and, together with the unfinished Checks of the August issue, packed in a box prepared for the purpose. This box was then sealed with the seal of the Canal office, taken by Mr. Manning to Chicago, and deposited in the Branch Bank of the State of Illinois. Mr. Manning at first was not clear whether more than one box was taken up at that time ; but the receipt of Mr. Brown, the Cashier, was produced in evidence stating that it was " one large box, said to contain Canal Scrip." The date of this receipt is Decem- ber 5th, 1840. In reference to the contents of this box, Mr. Fry testified that it " contained all [of the May and August Checks] that were in the office at the time." Mr. Manning testified that, when the box was packed, the Checks of the May and August issues which had been redeemed ^^were all iJieri'' — that none were missing, except a few of the smaller denominations of the May issue, and two or three of the $50 and $100 Checks of the August issue, which were still in circulation. [ There was another box, similar to a candle box, which Mr. Manning says he afterwards packed at the Bank with small Scrip, and which he says contained about $25,000. This, however, plays no important part in this investigation. We mention it now, only because it will appear in another connection hereafter.] A report of Mr. Fry, Acting Commissioner, of the date of December 21st, 1840, alluded to in the foregoing quotation from the report of the Finance Committee, says that, at that date, there remained unredeemed and in circulation of the May Checks, $722, being all of the denominations of $10 and 46 less, and one $100 Check of the August issue. Mr. Fry also stated that the amount packed in the box corresponded with the report — that " it was all 2)(icJ^<^d in that box, except the amount reported there.'*''* It now hecomes our duty to trace this box as closely as pos- sible; as it was, undeniably, by means of the uncanceled and unfinished Checks deposited therein that this enormous fraud •was perpetrated. Mr. Brown testifies to the receipt of the above described box in 1840 ; says it was placed in the vault of the Bank at Chicago ; that he occasionally saw it there, and "it a])parently remained intact;" that he had no doubt it went away in the same con- dition in which it came; supposes he delivered it to Kehoe. Michael Kehoe, porter in the Canal Office at Chicago, testi- fies that, "in 1848, Col. Oakley (then State Trustee) sent him down, with an order, to Mr. Brown's, at the old Bank at Chi- cago, for two boxes and two packages." One of these boxes he describes as a candle hox., and the other answers to the description of the box containing the May and August Checks deposited by Mr. Manning, in 1840. lie says he brought it to the Canal Ofiice, and it remained there until Mr. McRob. erts came into office, in 1853. He never saw what was in the boxes — believes Mr. Bradford, a clerk in the office, opened the candle box,_6aw it contained "old scrip," and covered it down. Kehoe also testified that, in 1853, after Mr. McRoberts came into office, he assisted the latter to pack up the contents of the two boxes and some packages in the safe in the Canal Office ; that they were packed part in a trunk and part in a shoe box; that the trunk and box w^ere addressed to "Hon. Joel A. Matteson, Springfield, Illinois;" that he accompanied them to the cars, on the following morning, and delivered * A slight discrepancy occurs in the testimony here. The rcceij)t of Mr. Brown to Mr. Manning, for the box containing the May and Angust Chocks, in the jiulilishcd report, bears date " December 5th, 18 lU ;" whereas, Mr. Fry fiays that the boj was jiacked lictwccn the 21st and the 2jth— evidently belicvin;^ tiiat tiie box was received by iMr. Urown on the 2jth. We are inclined to believe tliat there is an error in the copy of the reeeijit, and that Mr. Fry's uudoratauding was correct — though tho poiut is UDiniportant. 4r them to Mr. McRoberts, who was going to Joliet. Kehoe identified the trunk wliich was found in the State House, and was produced before the Committee during the investigation^ as the same which had been packed by himself and McRob^ erts in the Canal Office ; but the shoe box was not found. The trunk was examined and found to contain nearly twa millions and a half of indebtedness of different kinds, among which were $50 Checks to the amount of $21,800, and $100 Checks to the amount of $11,800, of the May issue, 1839, and $26,400 in $100 Checks, of the August issue, 1839. All the above pcijters were cwneeled. The Investigating Committee, in their report, speaking of this trunk, say, '•'' there were ujpon it some appearances of having heen sealed twice, as if opeiied and sealed againP Mr. Mclloberts, Canal Trustee from 1853 to 1857, (having' been appointed by Gov. Matteson,) and successor to J. 13. Wells, corroborated the testimony of Kehoe with reference to the packing of the trunk and shoe box in the Canal Office, their being addressed to " J. A. Matteson, Springfield, 111.," and their delivery to Matteson at the Depot of the Rock Island Railroad. He further stated that he took possession of the office on Saturday, March 22d, 1853 ; that the packing was done on the next (Sunday) morning ; that the lid of the smal- ler or candle box was loose ; that he examined some of the packages in that box, and found they did not hold out ; those he saw were canceled; did not remember seeing any $50 or $100 ninety day Checks; that he tried to put the large sealed box in the trunk, and afterwards in the shoe box, and neither would receive it ; that Kehoe then broke open the sealed box, and he (McRoberts) took out its contents and packed them in the shoe box or the trunk, or in both ; and that the contents of the smaller box and the other papers in the safe were pack- ed in the same manner. Mr. McRoberts also testified that the contents of the sealed box were in large packages, bound with tape and pasteboard ; he did not open the packages, but simply laid them in the 48 box ; they seemed to be " undisturbed," and in the same con- dition in which they were first packed ; did not examine them 60 as to know what they were; and that the description by Messrs. Fry and Manning of the box which they packed with May and August Checks of 1839, at the Canal Office at Lock- port, corresponded with that of the sealed box which he re- ceived from Gov. "Wells and broke open. Mr. Brown, on being recalled, stated that he received such a box as that de- scribed by Messrs. Fry and Manning. McRoberts, having received the box and trunk from Kehoe at the Rock Island Railroad Depot, went with them to Joliet. There he met with Gov. Matteson. The next day, or the day following that, he and Gov. Matteson started to LaSalle to- gether, and brought the box and trunk with them. Gov. Matteson was on his way to Springfield, and McRoberts delivered the box and trunk over to Matteson at La Salle, and they were put into the baggage car, to be taken across the river and shipped on the Illinois Central Railroad. That ended McRoberts' connection with the trunk and box. To this point, viz : the delivery of the trunk and box into the hands of Matteson, the chain of evidence is complete — each link is unbroken — the conclusion inevitable and irresisti- ble. Messrs. Brown, Sherman, Fry and Manning agree as to the manner of issue and redemption of the May and August Checks, 1839 ; that by far the largest proportion of the $50 and §100 Checks of these issues were redeemed at the Bank ; that they were counted as cash and not ^'"canceled f that they were returned to the Canal Office in the same condition. Messrs. Fry and Manning testify and their official reports prove that in December, 18^0, the whole of these issues had been retired from circulation, except a few hundred dollars of the first and a single hundred dollar Check of the last : they agree that the whole of these Checks about the same time, in the condition in which they came from the Bank, were packed in a box at the Canal Office, sealed with the seal of the office, and by Mr. Manning taken to Chicago and deposited in the 49 Branch Bank at that phace. Mr. Brown testifies that he re- ceived this box; that it remained in the Bank until 1848; that in that time he believes it to have been unbroken; that in 1848 he delivered it into the hands of Kehoe, to be taken to the Canal Office; that when he delivered it, it was in the same condition in which he received it. Kehoe testifiies to having received the box from Mr, Brown at the Bank ; that (with other matter) he removed it to the Canal Office ; that it remained in the Canal Office, apparently in the condition in which it was received, until Mr. McRoberts came into office ; that it was then broken open and its contents packed into the trunk or shoe-box, or both, and taken to the Rock Island Rail- road Depot and placed in charge of Mr. McRoberts.* Mc- Roberts states that a box answering to the one described by- Messrs. Fry and Manning, and the same spoken of by Kehoe as having been received from the Bank, was in the Canal Office at the time he came into it ; that it was sealed and ap- parently unbroken ; that he and Kehoe broke it open ; that its contents appeared to have been undisturbed ; that they trans- ferred them to the shoe-box or trunk, or both ; that they were addressed to "J. A. Matteson, Springfield, 111.;" that he (Mc- Roberts) received the same from Kehoe at the Rock Island Railroad Depot, at Chicago; that he took them with him to Joliet, and delivered them into the hands of Matteson at La Salle. Although Gov. Matteson was present, with counsel, during the whole of the investigation, and each witness was subjected to a most rigid cross-examination, there was nothing elicited in contradiction of these facts. So far, the history of the sealed box containing the uncan- celed Canal Checks of May and August, 1839, and the course taken by its contents, has been traced clearly, and it is shown, beyond the shadow of a doubt, that they came into the hands of Matteson. * A. J. Galloway, a Clerk in Gov. Wells' office from 1S>^9 to 1851, swears that two boxes were in the office, at that time, sealed j and were bj him delivered to Gov. WoUs, sealed, when ho left the olBce. —7 50 Now, in rcijanl to the indebtedness funded by Gov. Matte- son, the Finance Committee, in their report, say : "The greater part of the Checks so presented by hitn are recognized by General Thornton, General Fry and Mr. Manning as the genuine fifty and one hundred dol- lar Checks of Miiy Ist and August 1st, IS.'5'J, by them is-sued and redeemed as herein- before stated, and as part of the redeemed Checks packed ))y Mr. Manning and Gen. Pry in the box deposited in the Bank at Chicago, in the year 1840. "There is also found among the Checks, funded by Gov. Matteson, two packages of the Checks dated August 1st, 1839, amounting to $10,500, which are fresh in ap- pearance, have the edges untrimined, but fully signed by the Commissioner and Sec- rctarj- of the Canal Commissioners, indorsed by the Treasurer of the Board, but want- ing tlie name of the Treasurer filled in upon their face, and lying upon each other in consecutive numbers." "About $ 3,000 of the Cheeks funded by Gov. Matteson appeared to be specially indorsed to Wm. II. Brown, Cashier, and not re-indorsed by him." There was much evidence to prove that the May and August Checks ot 1839 were not in circuUition after 184:0 to 1812. Mr. Brown thinks that no considerable amount was in circulation in 1810. Mr. Sherman might have seen some of it, but '• no amount, however." Enoch Moore states that none of them were funded during Gov. French's administra- tion — that two Checks of the May issue, one $50 and one $100, were funded in the name of " John Johnson," April, 1853, that three $1100 Checks of the same issue were funded for Mr.' Ridgely in October, 1851, and that two Checks, of SI 00 each, were funded for Charles Thompson, in July, 1856 : but all these have since been discovered to be counterfeit. Several other witnesses testify that some two or three thousand dol- lars of counterteit Scrip were put in circulation in 1839, but such counterfeits were at once detected by the Canal officers, and some of the parties punished for forgery. These, plainly then, could not have come from the box of geiv- nine Checks deposited in the Branch Bank at Chicago, and afterwards reboxed by McRoberts and placed in the hands of Gov. Matteson. Mr. Dubois testifes that he never saw any of any kind of ninety day Canal Checks, either counterfeit or genuine, until he saw the counterfeit piece shown to him by Gen. Fry. Mr. Manning says it M'as known in the Canal office that the ninety day Checks issued by the Canal officers 51 Lad mostly been retired. Mr. Galloway says such ninety day checks " had mostly disappeared before his advent, in 1841." Gen. Thornton never saw any of those issues hi circulation after he left the Canal office in 1841. Ilart L. Stuart, a contractor on the Canal in 1839, and agent for the State for the purpose of funding State indebted- ness trom 1817 to 1850, having been appointed by Gov. French, states that, although it was generallj known he was engaged in funding State indebtednes, and had advertised himself as such in New York city, and probably funded from $400,000 to $600,000 of various kinds, yet he never received more than $150 to $200 of the May and August issues, 1839, and those? " all of the small denominations." He thinks they did not generally circulate " more than six or eight months, or a year at farthest" — " don't recollect seeing any of them of any ac- count the year after thev were first circulated." This, of it- self, is sufficient to prove that the Checks packed by Messrs. Fry and Manning could not again have been put in circulation up to 1850 — even if it were not known that they were still safe in the box at the Canal office. The testimony of Messrs. Thornton, Fry, Manning and Brown was clear, as stated in the report of the Finance Com- mittee, in reference to the identity of the Checks said to have been funded by Gov. Matteson, with those redeemed by the Bank, and afterwards packed in the Canal office in 1840. The testimony of Enoch Moore was positive that the whole of these Checks had been handed to him by Gov. Matteson, to be fund- ed in different names, at various dates, from the 9th of Jan- uary, 1857, to the 18th of March of the same year, and that he knew no other person in the transaction besides Gov. Matteson. He also stated that he had never seen a single one of the (pre- tended or real) individuals in whose names this indebtedness had been funded, (except William Smith, for whom $ 300 of the lots had been funded,) and no testimony was offered to prove that any of them had an existence. B. C. Cook was introduced by Gov. Matteson to prove that he (M.) had bought State indebtedness of Cook in 1867. It 52 was proved, however, that the indebtedness sold by Mr. Cook was Internal Improvement Bonds and Interest Canal Scrip of 1840. i\o 7Mr^ of it was of the May and August issues, lb39. So nothing was elicited pertinent to the investigation. Messrs. Sanger, Curran, A. II. Moore, Smith,GoodelI, Niles, Nesbitt and Ridgely, were called by Matteson to prove that he was engaged largely in the purchase of State indebtedness during the winter of 1856-7, and that he obtained large sums of money from the Bank at Joliet and elsewhere, to be used (as was understood) in the purchase of such indebtedness. Sanger stated that he had seen Matteson buying indebtedness of ditferent parties whom he did not know, at various times — claimed to have been " familiar" with Canal Scrip — thought he bought some of the May or August Scrip, 1839, in New York, three years ago — thought he sold it to Matteson — was not certain that he did so — did not I'noiv there icere two issues in 1839 — thought the Scrip he saw Matteson buying was ninety day Checks, but could not tell whether they were of the May or August issue. Curran claimed to have seen Matteson buying ninety day Canal Checks at the St. Nicholas Hotel, in Springfield, in the winter of 1856-Y — was introduced by Matteson to some of the parties who sold, but could not tell their names nor where they came from, or other particulars — was not familiar with the May and August issues, 1839 — only remembered there were $50 and $100 ninety day Checks — knew no other facts. Asa H. Moore's testimony was to the same purport — had never noticed the denomination more than once — could not identify the May and August Checks as the same he saw Matteson buying. Smith and Goodell swore to Matteson's procuring a large amount of money from the Bank at Joliet, which, they understood, was to be used in purchasing State indebtedness. So much for the testimony before the Investigating Com- mittee. We come now to that taken before the Grand Jury of Sangamon County. 5^ INVESTIGATION BY THE GRAND JURY. The witnesses who appeared before the Grand Jury were : Enoch Moore, Jacob Fry, Joel Manning, Wm, II. Brown, Michael Kehoe, Josiah McRoberts and John G. Nicolaj, all of whom were examined by the Finance Committee; also De- puty Sheriff T. W. S. Kidd, J. B. White and John T. Stuart. The testimony elicited by the Grand Jury corroborated that brought before the Investigating Committee, except that it was more clear and direct, and less burdened with extrene- ous and irrelevant matter. The same facts were not only con- firmed, but new ones elicited. Certain bonds were identified by numbers in the testimony of Enoch Moore as having been issued on the funding of Canal Checks of the May and August issues, 1839, Moore also stated that the Checks were handed to him by Gov, Mat- teson at different times — that the Checks were funded in the names of other parties, but that the bonds issued on such fund- ing were received by Gov. Matteson — that he did not know any of the persons in whose names the Checks were funded, except Wm. Smith, to w^hom $300 was funded in January, 1857. Mr. Dubois swore that these bonds, identified by num- bers, or a large proportion, were deposited with the Treasurer as security for the circulation of certain Banks in which Mat- teson is interested. There was a difference between Matteson and the State ofiicers in reference to $13,000 funded in the name of John Kellogg and Caleb Johnson, during Matteson's administration. Matteson claimed that, although he present- ed the Checks, yet he did it as a public officer for other parties, and that he received no benefit therefrom, and therefore that lie should not be compelled to idemnify the State therefor. A letter (which is published with the evidence) from O. F. Lowe, of New York, to Enoch Moore, states that "soon after the issue of the first bonds for the ninety day Scrip, I [he] sold for Gov. Matteso'ni)'' the tdentical bonds received therefoi*, viz : bonds numbered 886 to 899, inclusive — and that they are now held by some Banks in Illinois or Wisconsin. The $300 64: funded to tlie name of "Win, Smith was included in tliesc bonds — being part of bond 809. Gen. Fry's testimony was substantially the same as that he gave before the Investigating Committee. lie identified the Checks produced before the Jury (which Mr. Moore had already identified by numbers as those presented by Matteson to be funded) as the same Checks of May and August, 1830,* issued by the Board of Canal Commissioners — testified to the fact that they had been ])aid at the Bank at Chicago, or at the Canal oftice — that all, both those redeemed at the Bank and at the Canal office — the former in the condition in which they were received from the Bank — were packed in a box by him- self and Mr. Manning, in December, 1840, which box was afterwards sealed and by the latter deposited in the Branch Bank at Chicago. Mr. Manning's testimony was to the same purport, viz : as to the whole amount of the Checks, their character, the man- ner of issue and redemption, the return of the redeemed Checks from the Bank to the Canal office ; the fact that all the redeemed Checks in the office at the time mentioned by Gen. Fry, were carefully examined, counted and packed in a box — that this box, having been sealed, was taken by him to Chica- go and deposited in the Bank — that at that time there was only $722 of those issues still out — that the Checks of the de- nominations of $50s and $100s received from the Bank were not cut with a canceling hammer, and had been so packed, &c. lie said, " most of the Checks now before me, (meaning those of the May and August issues funded by Matteson,) brought in by the Auditor, are the same that were j9a6'/('(?(^ in the hoxP He recognized the unfinished Checks of the August issue as those which had been packed in the box, and thought they could never have been in circulation. *Mr. Frj' states that the amount of the May Checks of 1839 prepared, was as fol- lows : Of the regular Checks, $219,324, and of the irregular Checks $49,735, making in all $269,059. Of this amount he says $3,822 were, for some reason, subsequently rejected, and never put in circulation, leaving $265,237 for the amount actually put in circulation, which agrees with the report of the Senate Investigating Committee, as quoted in the preceding part of this summary. 65 Mr, Manning also testified, that in the spring of 1841, he went to Chicago for the purpose of receiving the small at sight Checks of $1 00, $2 50 and $5 00— that he did so re. ceive them, and having carefully counted them, put them up in packages, with the amounts marked on the packages, which he afterwards deposited in a box which he called " box JSTo. 2" (also, he says, by some called the canclle-hox) — that a list of the packages in this box was taken by Mr. Howe, the clerk, and one copy (he thinks) deposited in the box, and the other received by himself, which he still has — that this box was sealed up and left in the care of the Bank — that the Checks put in it " were all cut vnth the canceling hammer,^'' either by Mr. Howe or Mr. Brown. Mr. Brown again testified to the redemption by the Bank of about $LTO,000 of the May and August Checks, 1839, pre- vious to IGth September, 1839 — to the fact that the larger Checks were uncanceled, and were so delivered to the Trea- surer of the Canal Board. He recognized many of the Checks placed before him as those which must have been redeemed by the Bank, as they were specially indorsed to him — stated that he had never put any of them into circulation — testified to the receipt of the box described by Messrs. Fry and Man- ning, also to the receipt of the candle-box packed at the Bank by Manning, in 1811, and to the delivery of these two boxes to some one from the Canal office in 1848 or 1849. He fur- ther said : " The boxes, while in my possession, were never opened by me, or, as I believe, by Mr. Howe, my clerk. For the last'"^ve years I had exclusive possession of the keys of the vault, and it was not opened by any one but myself." Kehoe testified, as before, to receiving the abovementioned boxes at the Bank in 1848, and their removal to the Canal office, where they remained until McRoberts came into office, in 1853. Their contents were then placed in a trunk and shoe- box, as already described, these were directed to Matteson at Springfield, taken by him (Kehoe) to the Rock Island Rail- road and delivered to McRoberts. Kehoe says, "the candle lox was shuch in one corner with standino; on it at the canal 56 Scales — the office was so throng with the people." lie also eajs, " Thomas Bradford looked at the corner of it, to see what was in it one time" — believes " he said it was canceled SeripP Kelioe i)lainly knewthe larger box, containing the May and August Checks, to be still sealed and uninjured. McRoberts, more clearly than before the Investigating Com- mittee, testified to having received from his predecessor (Gov. Wells) in 1853, among other matter, two boxes, one of which (the smaller, or candle box) was open, and the other, which was sealed, and " which had the impression of the seal of the old Board of Commissioners upon it" — says he ex- amined " the box that was open, and found that it contained canceled ninety day Checks — the contents of some of the pack- ages "did not hold out" — "from the appearance of the box, some of the packages had been taken out." He again recite^ the breaking open of the sealed box — says they " found it con- tained packages done up between two pieces of pasteboard cut the size of the box — the packages were laidlinbetvveenthepaste- boards — the pasteboards were then wrapped with tape or twine and (he thinks) sealed with sealing wax." {_Query : If this box had ever been opened before — especially for a fraudulent or fel- onious purpose — is it at all probable that its contents would have been found so carefully packed and in so good condition, as is evident from this description they were ? Even if there were no direct testimony to prove that it had never been opened before, would not this circumstance be conclusive ?] They "cut the tape, took out the packages and put a part in the trunk and a part in the box, or the whole in one or the other," he can- nut say which. lie describes the packing of the contents of the smaller Ijox and other packages found in the safe, in the trunk or shoe-box, or both, in the same manner, substantially, as Kelioe — thinks the trunk and shoe-box M'ere sealed, but is not certain — says he directed them to '' J. A. Matteson, Spring- field, Ills." — that he received the same from Kehoe at the Eock Island Railroad Depot on the following morning — that lie took them with him to Joliet, there met with Matteson, 57 went witli him (M.) to LaSalle, and there delivered the trunk and box to Matteson, to be brought to Springfield. The investigation before the Finance Committee and that before the Grand Jury then arrive at the same result. The trunk and hox jpass into the hands of Matteson at La Salle. Nothing further is known of them or their contents, until it is discovered that a fraud has been committed in the funding of a certain class of indebtedness, which all this evidence goes to prove was packed in them. Gov. Matteson then suggests a search for the trunk. It is found in one of the basement rooms of the State House, but it is filled with a large amount of in- debtedness of dilferent varieties, all canceled. He then says something about the shoe-box, and search is made for it also, but it is not found. The Investigating Committee, speaking of the trunk, say, ." there loere iipoji it so?ne apjyearances of ham7ig heen sealed twice, as if opened and sealed again.'''' One of two conclusions is unavoidable — either all the contents of the seal- ed box, containing the May and August Checks, were put by McKoberts in the missing shoe-box ; or the trunk and box must have been broken open by some one having access to tliem, the contents of both which were unavailable or useless, packed in the former, and the box, with its available contents, spirited away. The latter is the more probable ; for if any j)ortion of the uncanceled Checks were deposited by McRoberts in the trunk and it had never been opened after it passed out of Mc- Eoberts' hands until it was opened on the 4th of February last, they ought to have been there still— for the trunk was full when found. Another ground for this theory is the fact that the trunk contained a considerable quantity of canceled ^50 and % 100 May and August Checks, which must originally have been in the sealed box which came from the Bank. But what became of the shoe-box? The uncanceled May and August Checks, whether deposited in it or not, plainly must have gone with it. The last known of it, itis in Matteson's hands in 1853. The Checks proved by the chain of evidence to have been deposited in it or in the trunk, on in both, at the Canal ofiice, in 1853 — and which are not now found in the —8 68 trunk — turn up again in Mattcson's hands in 1857. Is any explanation, 8upi)orted by evidence, given of the manner in which he came by them? Is any satisfactory explanation giv- en — or attempted — for the disappearance of the box? Is any serious effort made to find a single one of the pretended parties in whose names the Checks now found to be purloined, were funded i Has a single one of the many parties, who, it is chiinied, sold these Checks to Matteson, presented himself, although this investigation luis been notorious from one end of the Union to the other? Has any effort been made to find one of them? Have they been advertised for and requested to come forward ? They are certainly not all rogues, and the statement of one or two of them would go fai- to explain this mystery. Has the fact ever been developed, beyond a doubt, that any one else besides Matteson has ever held, or now holds, any part of the $ 60,000 or $ 70,000 of this class of indebted- ness still missing? In addition to all this evidence — the uncontradicted and concurrent testimony of men having held high official positions and of unim])eached character — there is this remarkable fact, in itself unanswerable and overwhelming: that all of the gen- uine Checks of the May and August issues, 1831), presented for payment a second time by funding, have been so presented by Matteson. If these Checks were thrown upon the market and were received in the ordinary course of business, were not oth- er dealers as liable to receive them ? Yet we have no evidence that they have ever. been offered to others — certainly, none that any one else has ever funded, or attempted to fund, a sin- gle dollar of them. Mr. Sanger, it is true, thought he had bought some such in New York, but he was not clear upon this point, and did not know the difference between the May and August issues ! ISo one else claims to have seen them until they made their appearance in the Fund Commissi(jner's Office. They are presented. Check after Check, by the same hand, until more than §200,000, of principal and interest, have been funded, and it seemed, almost, that "the end is not yet." Eut if, by contrived evidence, by impudent suggestion or 69 villainous insinuation the suspicion of liaving abstracted these Checks could be fastened on a dead man^ (the ever ready ex- pedient of knaves,) it would still be left to explain how they came into Matteson's hands — it would still need to be explain- ed how he came to purchase clean blank scrip, with untrim- med edges, and running in consecutive numbers — it would still be to explain why he procured the bonds to be issued in the names of fictitious persons — it would still be to exphun how the Scrip escaped from a box which the witnesses testify was sealed, and presented no sign of having been opened until opened by McRoberts and its contents delivered to Matteson — it wonld still be to explain wluit had become of the shoe-box — an almost endless number of mysterious questions would spring up, demanding a solution. Before the Grand Jury, as shown by the minutes, there were some singular exhibitions. The vacancies in the Grand Jury, instead of being filled by the Court from the panel of the County Court, as i-equested by the Jurj^, was tilled from the ^'■bystanders.'''' These added Jurors, as will be seen by the votes, with a single exception, voted steadily against find- ing a bill, and this exception changed his vote on the second ballot. Then, there was the exhibition of the lawyers of the implicated party, through the Prosecuting Attorney, and with- out rebuke by the Court, either at or after the fact, boldly in- terfering with the Jury to prevent an indictment — the indig- nant demonstrations of jurors who talked about bribes being offered them, then quietly cooled down and changed their votes. Last came the exhibition of votinc: an indictment and recon- sideriiig. It is matter of notoriety that, after all the evidence was in, an indictment was voted by sixteen to seven,' though this vote was informal, and was not, therefore, entered upon the journal. Next, without additional evidence or argument, a reconsideration was had, and an indictment again voted, by thirteen to ten. A new reconsideration, and an indictment by twelve to eleven. Still another reconsideration, and an in- dictment refused, hj eleven to twelve/ After all this, which consumed two entire days, as shown by a note by the Foreman, the Prosecuting Attorney presented the draft of an indictment, with the sno-o-estion that it mii>;ht be ''io-nored !" The suff- gestion, which would have cast off future investigation, was not acted upon, however. And thus, for the present, this curious case rests — the in- dividual found in possession of the booty standing acqm'tted, 60 ^v^t^lOut being re])le of the State, to ask for an investigation, are driven to defend themselves for doing so ! The case is a most remarkahle one — remarkable, in view of the magnitude and boldness ol the fraud and the metliod of its accomplishment — remarkable^ in view ot the financial rep- utation and political and social position of the party most deeply (if not alone) implicated — remarkable, in view of the absence of ordinary motive or temptation (in necessity, at least,) to the commission of such a crime — remarkable, in its history before the Grand Jury; in the means employed to stitle investigation, and their apparent success ; in the repeated findings and reconsiderations, without apparentimotive or rea- son for the change, such as might be furnished by the acquisi- tion of new information ; in the omission of sworn officers to discharge a plain dut}^ so long as there was any prospect that an indictment would be found ; and in the proffering of the bill when it could be employed to the advantage of the impli- cated part}^ ; in the impudent interference of the counsel of the implicated party in endeavoring to influence the Grand Jury, and introduce witnesses for the defence, as if on a final trial, although the law expressly declares that, " in all com- plaints exhibited before the Grand Jury of any county, they shall hear the vntnesses on hehcdf of the ])eo])le milyf and, lastly, it is remarkable, in the incessant abuse, both during and since the investigation, of every person suspected of a de- sire for a thorough exposure of all the facts, in order that sus- picion may fasten upon the really guilty party. In view of all this sworn evidence bearing in the same direc- tion, with nothing to directly contradict or discredit it — every part of which is not only in harmony with and corroborative of the other parts, but all of which is corroborated by whatever is purely circumstantial in the case — what is the conclusion of the whole matter? Let each intelligent, candid and un])reju- diced man, having read and weighed the testimony, decide for himself what conclusion is possible and inevitable. The purpose announced at the beginning of this article has been fulfilled. The important and leading facts and circum- stances of the case have been placed before the public as fully as was consistent with reasonable limits, and, at the same time, as clearly and succinctly as possible. The matter is be- fore the public, to be judged by the simplest rules of evidence and the irresistible logic of the facts. 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