Respectfullv vour most obedient servant,
ROBERT ABBOTT,
Audiior Gawralf stuU if Michigim^ >
Levi S* Humphrey has drawn from.
the treasury from the 19lh of May,
up to the 2 J St of February, #220^000 OO
Hiram A Iden, centra! railroad, #66,133 52
A. H. Adams, secretary, 18,594 04
£. H. Lothrop, 40.000 00
L. B. Mizner, 5,000 00
128,797 56
James B. Hunt, 40,000 00
William A. Burt^ 26,895 90
Rix Robinson, 20,000 06
#437,628 46
N. B. The amount of advances made the seteral commts*
sioners anterior to the 19th of May last, I cannot arrive at. with
any degree of certainty, n§ their accounts of advances were not
kept in the office.
As fhe amount stated above to have been l^ceited by E. H.
Loihrop, up to the 2l8t of February, will exceed the amount of
vouchers taken notice of by the connnittee, nevertheless, they
have been filed in the office since the above date.
ROBERT ABBOTT,
Audkor Oenertdf gtate tff Midiigan.
97
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7M HOUSE iX)CUMeNT&
i^moML MkMmd on «ecQQi4 of iloM oontmci for liie
ClintoQ and Kalamazoo canal, •16»00t
Amount pfiid 6« Lieach, for right of way, he having re-
ceived credit for that amount, 500
. Auditor Gbnebax a Qpfick, }
Detroit, 2\st May, 183a J
To the President of the B^ard (^Interned bnprooemnU :
Smj— I will'dhiw 'warrants on the treasurer of the internal kn-
pfovemeol fandi fep^ny sums that may suit the convenieoee M
iny actififi^ oommissioner, to the extent of five thousand dollari. as
provided and pursuant to ** An act to amend an act entitled. An
act for the regulation of internal improvement, and for the appoiot-
iMnt of a board of commissioners,'* but in no arae will I covnier-
sign any warrant drawn on the treasurer, tor the disburseoieor of
>-Ae»peclfuUVf your most obedient servant,
(Signed,) ROBERT ABBOTT-
Mr. WoodbrUgefs opinion in relation to the duties cf AuHior
General as auditor of board of internal improoemenL
I JXbmu Sia — In conformity with your request, I have examioed
the legislative acts relative to the powera and duties of the Aucfi*
torGrenernI, and also the auditor of the boord of internal improve-
mcnts, over tlie public funds to be drawn from the Ireasary. I
have not time now to state in detail the reasons upon which I
l^ye formed an opinion on the matter: But I cannot hesitate in
f^yifigi tlv^t so far as I comprehend your own views of the mat-
^, I consider then) correct. In other words, I apprehead that
ip^e of the public funds, applicable to the objects cootomplaled*
caabe drawn from the public treasury, but upon your wairaot,
^d th(^t before you can legally draw such warrant, you must be
satisfied by actual examination, that the aooouat upon whioh such
warrant is ba^d, is correct and for objects sanctioned by the law.
Certain discretioni;iry powers are confidedi it is true, to the boariL
and so far as the exercise of those powers is confiaed to the spa-
cific obJQCt and restricted within the limits prescribed by itie law»
that board nuist be left to the ^ree exercise of that discretion ; tli9
board being accountable, not to the Auditor General, but to the
legislature, for the due exercise o( such discretion. For exam-
ple ; the. acting conrunissioners or the members of the board» are
entl^l^d tQ conipepsatioa for their sc^r^ces, at the rate of a pre*
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scribed sum, for tile time aetunlly employed in die public servfcei
opon the certifioate of ihe board, or of its proper officer, that a spe-
cified number ot'days were actually devoted to the public service,
contemplaied by ttie law, bv a member of the beard ; and upoti
the eitbibit and deposite with you of the proper vouchers of that
Ihet, I apprehend such member is entitled to demand of you a
warrant ior the proper amount, and that ic is for the Board and
not for the Auditor to judge of the usefulness of those services, the
fldeKty With which the commissioner devoted himself to'their per-!
formande, and the necessity car proprietyof devoting so nrruch
tkne to the objects.
These are matters upon wbtoh the board, upon hs responsibiK^
tv, most jodge, and these matters being judsed of, and duly ccf^
t^ed to the Auditor, or made known to him, oy the piToper vouc|»-
ers, he, in eenibrmity with the rule pt^esk^bed by the law, must
settle the amount and issue his warrant accordingly. So of th«l
anifieers, &c, employed by the board; the board, 1 apprehend/
most jud|ife of the necessity of their employment, and settle the
Me of their= compensation, &c. These focts, being properly
vooebed afid eertiiied to the Auditor General, he is to oompote
the ram due, by those criteria, and give his warrant There
seem two classes of cases, in which, (and apparently from nece^'
sity,) this simple plan may be considered as deviated from ; one,
ki which, pursuii^the precautions prescribed by the law, a lai^
^om of money may be advanced upon the warrant of the Auditory
for the porpose of pr jcuring cars, railroad iron, &o., to be ae«
counted for qfiervxmts^-^tKi^hQr, in which sums of money (iMi
•siceedfng 95000,) may be adoanced to each ncting commissioner,;
in like manner, to be accounted for afiter expended. But the pre-'
caotioAs required, and the manner h> which such sums are to be
adtdneed and accounted for, very deafly keep in view, the legaRw
tv oTthe application of such soms,ramd tile strict accountability of
the persons through whose hands ihey pass and the stmpKclty ef
tke general system, by ti^hich the ch^ef fiscal officer of the govern-
ment (the Auditor General) may and mt^st. at all ttnies, be ena-
bM to keep the pobKc disbursements confined to the objects in-»
diem^d bt the kw, arid at all times to be emUed by his tfooka
and vouchers, to exhibit a full view of the fiscal aflairs of the go^i^
vemmenc These tni the great objects which induced the crea-
tioii of the office of ^ Audkor General ;* and were it efherw{se#
there wootd be no check against illegal application Of the puUid
fiMds \ nor wodd there erxist pre^ and certain means by whksh,
dt any ti^e, to ascertain the state of the public fiMmces, add the
condition of the pecuniary aflfairs o( the government.
The former law (tbat'of March 31, 1887,) exhibited it seemiT
to me, a perfect anomaly* By it a set (rf* men having oontrd of
immense funds ; being responsible only to one of their own board,
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7W HOUSE DOCUMENTS.
to b» laleeted and: displaced at their own pleasure, oould apply er
miaapply those funds as they might please, and without the leigftl
control of either the Auditor General or the State Treasurer :
what power did there exist in the governnieni in the absence of
ibe legislature, to prevent then Irom any improper waste* of ibe
public treasure ? And to what public officer could resort be had
to ascertain, at any time, the state of public finances 7
It was in view of evils and dangers and inconveniences like
these, that the amendatory law of April 6, 1838, was undoubtecfljr
passed^ and that law must be construed with reference to those
evils and with reference to the manifest intention which it dis-
doses of enforcing a more strict accountability, of preventing any
in^mtional or acMenUd misapplication of the funds, and of restor-
iag to the principal fiscal officer of the state (the Auditor Gen*
•ral) that oontrcitliog influence over the application of the publie
funds, which every republican goverament has ever, I believe.
QOBsidered essen^al to the pubKci safety. The legtslatuie has
thought proper to define a certain sum to be appropriated on tb^
"* Geqtral raulroad :" can a larger sum be applied there ? This
cannot now be, for the board has no bnger an uoiimiled conlrol.
The Auditor Gjener^l must see, upon his official respooeibiltey,
that for such a purpose the warrants he issues are restrained
within the limits of each specific appropriation. His boobs will
always show this fact* The Treasurer, upon such oonstructioo
of the act of 1838, can never pay out the public money except
upon the warrant of the Auditor General ; and thenforet smdi a
BMsapplieation of the publiofunds cannot occur; but if the board
itself, or its auditor, were competent at pleasure to draw its own
warrant upon the Treasurer and the Auditor General likewise,
there would be o i such check, and the whole objects of the law
of 1838, might be repealed It is manifestly contemplated by the'
act of 1888, that the moneys an each route should go thmugh the
hands of the acting oommissioaer for that route. It is manifestly
ioteiNied that he should settle with the Auditor General for hisilis-
borsements on that route» and yet this would be idle, if the money
could be procnred opon the warrant of the auditor of tlie board ;
and the restriction which limits the sum in the bands of the actti^
commissioner to 95000, would be idle too*
I ooMtd dissect the several acts relative to this subject, and rs*
view eaeb clause and compare them aU together, and I am satis-
i^ that such critical examination would result in the same coo-
plusioo, and the whole taken together, woukl be found reconcila-
ble with no other construction than the one which it i^ the object
of the foregoing observations to enforce, but I have not time nuw
to do it« The theoretic evite of the former act are apparent.
The intention of the last act, is, I think, manifest, and the whole
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thioM be so constraed ag to obvhite those evHs^ and gi^e eflbct to
that intention ; and that. I think, can only bo effected by refer-
ring to the Auditor General that controlling; influence, which it is
the oiear iotentioo of his office that he should exercise.
(Signed,) WM. WOODBRIDGE-
(G.)
A statement of moneys, &c., remaining in the hands of Hiram
Alden, acting commissioner, at the time of his decease, and or-
dered to be placed in the h^nds of E. U. Lothrop, acting commis-
sioner, by order of the board, January 14, J 839.
Bills of the Bank of Saline, #1,475 00
•* Farmers' bank of Sharon, 183 00
<4 Bank of Singapore, 89 00
^ Bank of Allecan, 27 00
«« Goodrich bank, 18 00
B'k of lihaca, N. Y. (oounterf %) 5 00
- CliRton canal bank, 10 00
•* Bank of Clinton, 2 00
•• St. Joseph county bank, 1 00
^ Shinplasters^ 5 63
Certificate of receiver of Jack son co. bank, 458 00
♦* *• Bank of Lapeer, 47 00
<• •• Wayne co. Bank, 45 00
** ** B*k of Kensington, 16 00
J. Bordick's check, 1,946 64
L. S. Humphrey's receipt, 59 60
do 127 75
Receipt of P. Morey, Attorney Gene*
nrt, for note of H H. r^omstock, 817 49
Do« for note of Richard D. Butler, 200 00
Ac!Count for services of H. Alden, not
altowed by Auditor General, 168 00
3,851 48
•6,183 11
Since the above was placed in the possession of Mr. Lothrop,
the amount of the receipts of L. S. Humphrey have b«Bn can-
celled by his returning to Mr. Lothrop the mdneys received by
bim for the receipts given ; also the note of II. H. Comstock baa
been paid, and vouchers to near that amount are on file in the
•1,765 68
666M
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790 HOUSE DOCUMENTS.
€0mfhi8MOB6r9 office, having been paid bjr Mr. Lotbfop from tba
fands received lor mid note.
The bitls, also^ of the Banii of Saline and CltoCon caaal bank,
have been placed in the hands of the receivers to those ioa^ui-
tions.
Cammunkatianfram James JB. Hunt, Esq.^ in relation to so muck
€fthe report^ the investigating committee^ as relates to him.
To the Hon. Kingsley S. Bingham^
Speaker qf the I&use of Representatives :
The undersigned* one of the coamoiflsioners of the board of in*
temal improvement, wonid respectfully ask leave Id lay befora
the House of Representatives, his explanation and protest* to so
much of the report of the committee of investigatioo, as relates to
the conduct and transactions of the undersigned, during the last
two years, and while in the discharge of the duties of said office.
As the reports ofcominktees are state papers presented to the
House tor their guidance and action on the several matters refer-
red ; and as the report referred to is a production that has cost
the committee the labors of an aknoat entire session, the House
will be disposed to treat it with that gravity which it demands ;
k is also worthy of consideration in otl^r respects, for the subject
matter is one in which the pectple of this state Imve taken not on-
ly a lively, but an almost enthusiastic interest ; and it also embra-
ces the views which the committee entertain of the several per-
sons, entrusted by the executive and legislative branches of the
gmeromenU with the duty and responsibility of carrying out the
system of interaai improvements.
If the opinion expressed in that report had come from fbe gieo^
tiemen of the committee in their individual characters, they would
not, as a matter of course* been denied ; as coming from a com*
mittee of the House duly authorized, respect to the representa-
tives of the people, demands sttdi an enplanatioii as the brief Mie
alk>tted me will admit.
If a committee from the board of eonunissipQers^ had aniasad >
terttd tJpon the members of the legislature, with the same spirit
which pervades this report, the matter might well have been
brought before the House, and the oflfenders punished fi>r a con-
tempt. The board have no such power ; but it was supposed,
that firentlemen who claimed those privileges and that protection,
would be tender towards the cliaracter and feeting of those who
stood without the pale of these high parliamentary sa%fiards.
If the public taste have become so vitiated, that a report of
this character, treating men in high and responsible offices tM des-
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H0I7SB DOOUMBNTa WI
tiMeoTaH fanonble fedii^i and to nil pmtamnmilotffm oom^
moo honesty, and will be w* II received by the conslitaeiicy of the
Houae, or js^ id fact* necessary for party e&ct $ then, we ma^
truly say» that the period has arrived ^ when a prirate station is
the post of honor*"
However unpleasant it may be for me to interfere with the re*
ffttlar aetion of the House, at a time when it is pressed with the
MMtnesa of the public, yet, it is an i.nperative duty which I owe
to myself to those who Jire connected with me in all the social
relations of life, to a lai^ circle of personal friends, and especial*
ly to the people of this state who have honored me with their con-
fidence, in the. bestowal of this office, that I should give an 6xpl»»
nation of the several matters stated in thai highly ^oredt and in
my mind» vindictive report i and to ask of the House the ap*
poidtment of a committee to review the subject and the evi*
deneof and to take and state an account between me and the
alfte.
The veport alleges, that from the testimony before theor* in ro^
kdionto my transactions generally, the following facts, in their
opinionf have been establiMied.
** Thai this commissioner has been in the haUt of employing
aMots to transact the business generally that apperuins to hie
office^ and that be has entrusted to said agents at a heavy expense
to the state, that portion of his duties that the state had reason to
suppuae thai he would perform by reason of his office, and fer
which he bad received from the treasury an ample remunera*
tion.''
This is a general, broad and sweeping charge, and with all re-
sped to the House, I pronounce it, unfounded from the evidence,
and absolutely false. I happened to be present when several d*
the former and present superintendents on the central railroad
were examined, and they stated that I was on the line of the road
once a week or once a fortnight, when I was not attending the
meetings of the board* And I stated to the committee, that after
my appointment on the central railroad, in September, 1837, 1
Cssied over the road twice before I left to attend a meetiiqf of the
ard, held at Kalamasoa on the first day of October, that I had
to attend meetings of the board at Jonesvillo and at Flint, during
thatt month, and the latter part of the same month, I went ovev
the line agab, and twice in November* before the board met at
Monroe the latter part of that month ; that there were meetiim
of the board in December, at Palmer, Port Huron and Detroit, for
the purpose of hearhij^ statements and making the locations. T
will also state, that after these locations were made, the ill health
of my itunily compelled me to be at home a short time ; after my
return, I was engaged in attending the meetii^ of the board, to
any duties aa acting commissioBer on the central railroad, in set*
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702 HOUSE 1M30UlfEN(ra
tliag up the Mooonts pnpsmioty to jnaking our .•onoal re|ntl
on. the meeting of the legislature. These accounts embrmd
the estjWQiditures oa the Clioton and Kalamazoo oanal, the Dorth*
era railroad, the. Saginaw canal, the surreys on two of the riversp
and those of the central railroad. I had also to, make a reportof
aU tbi»e matters to the boards and was also en^sraged ass one of the
oonimtllee io making the annual report to the legislature. Pre*
vipustto my appointment on the central railroad, I had net i
three days .at a time with my family after I iiecame ao i
commissioner.
Neglect of duty I had imagined, was the very last cbai^ that
oouid be brought against me during the various tnuiaactioos of
that yean In my absence from the w<n*k it was essentialhr ne*
oessary to have an agent to provide fmr the varied wants os nine
different stations and sooos four or five hundred men employ«d by
the day or the mouth. Mr. Adams had as much buaiueas as he
could do in the office. Mr. Willis was emplciyed in the shops
and -about the buildings and turn outs, whilo he was not afcseot
from the stale. It b^me necessary to eooploy Mr. Poner to
make purchases and see that provisions and other articles mtn
furnished ; he was er^god part of September and October, when
be left. Mr. Beach w s employed some time in November aai
mmajned untii the latter pan of January, and this. is the heary
expense complained of and occurring at a time when there was
but two acting commissioners. But I have yet te learn that k it
the duty of a eonuiiissioner to superintend the. ooostractioo of
works that he is supposed to know but little about.
The plan of building the road by day labor was eonmenoecl
by my predsoessor in office. He had appokited the saperimoD*
dents and i urohased most of the articles Uir carrying on the work.
After my oppoiotmont, I was requested by the members of the board
to double the number of oktn on the workt and if practkaible^ to
finish the road to Ypsilaati tHat season 9 this requh^ed an addition
al purchase of tools, bedding* household stufis, 6ui^ for tMa »«
treased force $ I was satisfied at the time, that this syalem of
buildii^ roads was the m« st expensive, and of infinite trouble to
the commissioner ;* but it had prosrressod so iar, that the oohr ml*
temative was. to complete the road as speedily as posstUe and put
it in operatbn. The engineer on the road was in favor of this
plan of d«Hng .the work, as it was a block road and would be doMe
aiuc^h better and with greater care tlian if it had been let to con*
tract. The latter part of that season was very wet and odd ;
m'>re articles were purchased than 1 had anficipatedvand the road
was not fit for running until about the first of February. In the
disposition of this large quantity of personal property, much of it
worn out ; some lost or stolen ; much of it repaired or miewed ;
the horses and cattle used almost up; a loss to a hfge amouot
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UoasB DOCUMfiN i a t*s
immI aecei M rB y <iccar. Bdt tinong the wamy diflhuMiBtf wMi
wMch I was torrottnded I had not iiMagined, until the mport ^ thw
"Mmmittea was produced, that I was to be heM responsible far my
^Kfierence that might occur hetween the cost of a new a. tide aod
the vahieofan old one; or what woatdbe equally oppresei^, lo
make me stand all the bad bargains, if any, that my predecessor
should hare mad#, together with the deterioratfon of the article^
As the several portions of the road were completed, the stations
were broken up t some of the property was soM far cash, somsi
far wood for the use of the road* and part of it was appraised by
Gen. Bordick and Co). Brooks and turned out to Col, McKiostrjr
on his present contract.
The papers containing these statements were laid before the
eemmillee, and they mijpit have seen from the sales and apprai^
saK the vast diflbrenee between^the dost and the sales; witlioat
seeking to ehar^ the difierenoe upon me, as evidenoe of mismaiN
agement It will be seen by comparison that the cattle sold by
If n Bur«h for cash, average $05 00 per yoke ; those sok) m
wood, aTerage tOO OU, and those appraised, average $M 00; thes*
eattle were not probably of equal vakie, but they tno%i probabfy
cost a much larger siim in the spring. This dmrence in vahie
exiets much stronger where ttie article was much subject to in-
jury or nearly spoited by the use. Several of the horses, wagons^
ind harnesses were sold, and paid for in the transportationof pro-
visions and other articles. Some were sold for cash and some
fa? wood, which has been used, and part now on hand.
1 stated before the committee that I was not acquainted wi:b
Mr. Beach before the fall of 1887; that he was recommended to
me by one of the commissioners and by several other person:?, to
be a suitable man for the business, and acquainted with the con-
struction of railroads; and that in my transactions with Mr.
Beach, I had never discovered any thing that gave me reason to
doabt his honesty ; that he was an active business man ; tiiat h»
had had opportunities if he hod been so disposed, to be dishonest,
and I might not have discoveied it ; that I had entrusted him
with large sums of money, and that he always accounted for it ;
that in one month he paid out #1 5«000, and that I should not have
entrusted him in tMs manner, when he had the power of ruiauig
met if I had heard of the reports against him before that time ; and
that I did not see any statements in relation to him until somei
time in January, 1888, when I was shown the report of the comp-
frolier of the state of New York, and that he was dismissed
rfiortly afterwards.
CoK McKinstry stated before the committee that he had shown
me a notice stating that Mr. Beach had absconded, but I did not
recollect the occurrence then, nor have I been able to since he
mentioned the circumstance. Notwithstanding I had given this
98
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T»4 HOUSE DOCUMENTS.
teitimoiiy before die comtnktee, aod with every raneii to befa^
that ai a matter of safety to mytelf; I would not have empkqFad
a dishonest person if I had known it, the committee say, *" the
reason your cununittee consider this transaction so very odioua,
arises from the circumsunce that Mr. Hunt knew^ at the lime of
his appointment he was advertised as a public defiuilter aod a
fugitive firom justtcc."
The report also states, that Beach ** in numerous instanoat die*
fcmdd of property to those having cbims i^nst the slate aad
required them to sign vouchers for nnonev paid* aod thereby ens*
bled him to pocket the amount of the sale without kmr of delso-
tion.^
Al the time when some of the soperinlandents were awonip
some of these alleged traosacUoiis were inquired into; iaoae oaae
inquirod of* the amount was found deducted from the pay roll, and
on the same roll was two or three other deducti<iM in caaea lo
which the committee had not inquired. In another case ibe
voucher was found setting forth the anKNint of iodebtedoess and
the credit for the articles sold, aod a receipt taken f<ir the balaaoe.
The other case was that of Gaboon, for, two yoke of oitn sold
him for 9115 00, and other articles to above #5 00. The re-
ceipt for his work, without any credit for the propertv sold, waa
found ; this made out the case. But in the account of cash aafea
made out by Beach, he charges himself with 9115 00 received of
Gaboon for two yoke of oxen, and 95 00 and upwaids for other
articles sold him, corresponding with Gaboon's evidence. If the
eomnnttee found any other case, it was not menUeoed to oae, aod
they might, it* there were others, be explained.
Another charge is preferred : ** The allowing these superiolaii-
dents to certify to the correctness of their own accounts, whether
the same were for wages or for property sold.^
I was present when some of the superintendents were examiiH