Newspaper of The Washington Standard, April 23, 1864, Page 1

Newspaper of The Washington Standard dated April 23, 1864 Page 1
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VOL. IV. §<ty 'tSßnshington Standard IS IRSCBD EVERY SATURDAY MOHMNO BY <JOHN MILLER MURPHY, Editor and Proprietor. Subscription Rates: *7er»nnurii...-.V. $3 50 " liz raontlw... 2 00 Tihgle copies 25c IXVARIABLY IS ADVAS'CE. — Advertising Rates: tohe feqtisr*. on® insertion $3 00 Xach additional insertion 100 taisMi nils, |w quarter 5 00 JX A liberal deduction will be made in favor of those Nrho advertise four squares, or upwards, by the year. Jj- Legal notices will he charged to the attorney or 'fleer, authorising their insertion. IfT Advertisements sent from a distance, and tran ent notices, must be accompanied by the cash. Q7 Notices of births, marriages and deaths inserted 'free of charge. OT All communications, whether on business or for publication, must be addressed to the editor of the WASIIINOTON STANDARD. Blanks, bill-head*, cards, bills of fare, posters, programmes, circulars, catalogues, pamphlets, etc., ex ecuted at reasonable rates. OFFICE —In Barnes's building, corner of Main and First streets, near the steamboat landing. The Charges Against Victor Smith, and the the Evidence upon which They were Based. f Concluded.) Letter of IVm. L. Chalmers, Esq., to Gor. Pickering. POUT TOWNSEND, W. T., SI-pt. 26, *62. To llis EXCELLENCY, THE HON. WM. PICKERING, Gov. of Washington Territory : Sir: In compliance with the request ex pressed to me by your Excellency, I have now the honor to submit tlio following state ment of facts in relation to the mal-conduct of Victor Smith, Collector of Customs for tie Plight S >uu l District, both in his official and private capacity. Lieut. J. 11. Merriman, late Acting Col lector, having associated ine will himself in investigating Smith's defalcations aud official malfeasances, I became cognizant of the fol lowing, viz : Ist—That no cash-book of any kind had been kept, the only record of cash transac tions being in the shape of a memorandum book, in which sums paid to officials or other wise were entered as in a ledger. 2d—That about the 15th of April, Smith 'ordered to be sent to the Department sn ac count purporting to show a balance of $7,669 1? on his customs account as being subject to the draft of the Secretary of the Treasury, no such balance being then on hand. ;t(l—That during his tenure of office lie had 'drawn from the public safe stuns of money amounting to about $7,500, and that he had used such sums on his own private account— s3,ooo of that amount being paid for land nt 'Port Angeles. His legal official emoluments for nine m mths being 82,250, thus shows au overdraft of about $5,000. 4th—That on 19th January he deposited SI,OOO of the public moneys with the Hud son's Bay Company, in Victoria, V. 1., the receipt for which was placed in the safe as a part of the cash balance; that he endorsed aaid receipt to one Johu Allyn, to enable said Allyn to purchase goads in San Francisco for Smith's store in Port Angeles. Allyn having missed the steamer at Victoria, returned the receipt, and Smith subsequently purchased upwards of SBOO worth of goods for hiß store at Port Angeles from the Hudson's Bay Co., psying them with said public funds. sth—That on 28th April he deposited with •one L. B. Hastings, in Port Townsend, pub die moneys amounting to $3,267, and that he used S3OO of that money to pay Hastings the balance of a sum of SSOO, which he had bor rowed from hiin soaie time previously. 6th—That the proceeds of the sale of the revenue cutter Jeff". Dacis, (sold in January,) amounting to $3,241 22, had uot been ac counted for to the Department; that he had accepted a large portion of the purchase mon ey of said cutter in lumber for his buildings at Port Angeles, aud that sundry articles on the iuventory of said cutter had been appro priated \ij him to his own uses and uever ac counted for to the Department. 7th— That he paid one W. W. Winsor, late keeper at Tatoosh light-house, a sum of 4150, taking from him a receipt for S2OO, and -charged that amount in his accounts as salary ,paid to Winsor for ono quarter. Bth—That about the beginning of April he instructed me to make out for transmission to *he Department an account of the actual ex •pauses of the U. S. Marine Hospital, he fur bished mc with the particulars of said accounts a great portion of which I have since discov •wed to be false, no such sums having been so paid, not were they to be paid. Among other false entries, I mny note the salary of the steward, clerk and matron, put down at the rate of $2,800 per annum, this being about $\,600 more than he had engaged to pay these officers; S4OO of this amount thus fel oniously filched from the Government was handed to one A. J. Davis, the proprietor of a paper called the Herald of Progress, pub lished in New York, to enable said paper to be carried on. A like sum was to be paid yearly. I have seen this highly criminal agreement between Smith and Davis in wri ting. The above chnrges I know to be true, from investigations made by me in tho books and accounts of the office. Having thus stated aome of tho leading tacts agaiu&t Smith iu his official capacity, I now proceed to lay before your Excellency his conduct towards myself. In February last, Smith inquired of Dr. Tolmie of the Hudson's Bay Company, Vic tuiii, if he could recommend to him au cxpe rienced accountant, at the same time stating that he must be a Scotchman and a mariied man. The Doctor, knowing that I possessed all these requirements, introduced me to Smith, and the result was that he engaged me to per form the following duties: "To enter and clear vessels, to keep the books and papers of the Custom-House, Revenue Cutter, Marine Hospital, Light-Houses, and in 'the event of the Custom-llouse being removed to Port Angeles, the books of a store he intended to opeu there." He stated that the salary he was going to name waa a small one; that the Government paid one half and he the other; but that I might at once expect a large in crease, as he had w'rittch requesting the De partment to advance the salaries 50 per cent.; that the situation I was going to hold was a good and permanent one, and wound up by intimating that as I was going to hold an offi cial position he would require ine to take the oath ofallcgiencc, to which I assented. Smith give ine a month to prepare, but three days after ho addressed a note to Dr. Tolmie re quiring me to proceed at once to 01/mpia, and there " declare my intention." Presuming from this that the gentleman whoso place I was to take had left sooner than Smith had anticipated, as there was no other means of reaching Port Townsend I was forced to pay §3O for a plunger. I reported my arrival at the Custom-llouse that evening, (7th March) tnd went on to Olympia. A steamer was to leave for Port Townseiidon Monday morning, (1 had arrived on Saturday evening) and in order to save expense of remaining until the following steamer, I was advised by Judge Oliphaut, as Smith's friend, to return to Port Townsend, and there take the oath. 1 did so, and Smith sent me Lack again, as he said ho had his own reasons for my not taking the oath in Port Townsend. Ho assured me that he would make up my expenses in the ad vance to my salary. On returning to Port Townsend, ho put me off from day to day— one day telling me he would carry out his intention and put me into Mr. Tay lor's place, as Deputy Collector, aud next day changing his mind an.l making some mad pro posals about my going to Port Angeles to take charge of his store there. On expressing my doubts of the store paying, lie stated that lie expected to make at least #4OO a year by supplying the revenue cutter with stores. Having found out that I would not truckle to him he tried to get rid of mo by insulting me in every possible way, and offering ineSlOO if I would return to Victoria. 1 declined this: it hid cost me that to remove my fami ly to Port Townsend. Thus matters stood when he I-ft for Washington. He wrote to Lieut. Merriman stating that I held no official position in the office, but that I would no douht assist him in any way he might direct. Smith had asked me before he left if I would commence a set of books for the Cus'om- House, and I suggested to Mr. Merriman that I should commnnco these books front the time Smith took office, on the 2d August last. I did so, and journalised every transaction from that time up to the day Smith left. The re sult of these investigations I have already plicwd before the your Excellency as well as before tlio Grand Jury. Lieut. Merriman, in order to secure payment for my services thus rendered to the Government, swore mc in as au Inspector ef Customs, and, as you will ferccive from the annexed copy of certificate, performed the duties of Deputy Collector under him up to the Ist August, on which d ly Smith returned and discharged me, with out assigning nny reason for so doing, or offer ing to pay the s ilary due to mc. In thus tak ing action with Mr. Merriman in making known lo tint Government Smith's many ras calities, I did what I believed to be my duty, however much my adopting that course might militate agninst my own interests. lam a pior man, and can very ill afford to be kept out of my money, but notwithstanding all this, I am happy in the knowledge that 1 hav-j done what is right, and that though things appear gloomy at present, the time must come when all concerned in these matters will re ceive their just due. I miy just add that I have remained here at great expense to my self (having -been tumble to obtain any em ployment) in the hope that I might bo of some use to the Government, in assisting any spe cial agent who mny arrive to look into the charges against Smith. My expenses in at tending as a witness against Smith, at Olyrn pia, amounted to 915, for which I received scrip for 831 50, and have been forced to dis- ItoHo of that for sls 75—that making me a oser to the extent of some S3O. Under these circumstances, 1 would respectfully venture to ask your Excellency to represent my caso to the Department. I cannot conclude this letter without add ing my humble testimony to assist in dis proving the scandalous and lying charges which Smith has preferred against Lieut. Merriman, as being a secessionist. I had the pleasure for some five mouths of being in daily intercourse with Mr. Merriman, and I never during that time heard him utter a sin gle disloyal word : on the contrary, lat all times remarked that he expressed himself as a true and loval subject. One act of his, trivial though it waa, shows his heart was on the right side: A largo engraving of General McCMl.in and staff appeared in Harpers Weekly. This Mr. Merriman posted up on the Custom-Housc walls, expressing at the time his admiration of the Oeneral and the cause in which he was engaged. In making this statement regarding Lieut. Merriman's loyalty, I do so most sincerely, and, to use the solemn and impressive wordß used in courts of law til my native laud, I believe it to be "the truth, the whole truth, and nothing but the truth, as I shall nuswer to God on the great day of judguieut." OLYMPIA, WASHINGTON TERRITORY, SATURDAY MORNING, APRIL 23, 1864. Trusting that your Excellency will pardon the length of this ictter, I hare the honor to remain, Very Respectfully Yours, WM. L. CHALMERS. Certificate of Lieut. lUerrimah. POET TOWNSEND, W. T., Aug. 4, 1864. The bearer of this, Mr. Wm. L. Chalmers, has served with me as Deputy Collector, since the mbuth of May, and is thoroughly postrd regarding the books and accounts of the Cus tom-House, and having associated Mm with myself during my Investigations of Victor Smith's defalcations aud official malfeasances, he has also a perfect knowledge of the mat ters relating thereto. This is given him in case a special agent of the Treasury Depart ment should arrive here to investigate Smith's affairs, aud I cheerfully recommend hiin as the only person here competent to assist said agent. J. 11. MKKKIMAN, Ist. Lieut. U. S. Rev. Service, Late Acting Collector. The liidictmrnt of Victor Smith. UNITED STATES OK AMERICA, } Territory of Washington, > Third Judicial District. ) In the District Court of the United Stiites in and for the Third Judicial District of the Territory of Washington, Sept. term A. I). 1862. The grand Inquest of the United Stntes of America, inquiring for the third Judicial Dis trict of the Territory of Washington, on their oaths, respectively, do present: First, That Victor Smith, at the city of Port Towsend, in said District, on the twen ty-eighth day of April, Ann Domoniei one thou sand eight hundred and sixty-two, nnd nt di vers times heretofore, to wit: Between the first day of October, one thousand eight huu drcd nnd sixty-one and the first day of May, one thousand eight hundred and sixty-two, (exclusive of the 15tli of October, 1861, nnd 10th nnd 19th January, IStl» March and 9th and 12th April, 1862,) then nnd there being an officer of the United States, to wit: the Collector of Customs for the District of Puget Sound, charged with the safekeeping, transfer and disbutsmcnt of public monies of the said United States, unlawfully aud feloniously did convert to his own use nnd embezzle a portion of the said public moneys entrusted to him, the said Victor Smith, for sate kcepiug, trans fer and disbursment, to wit: the sum of four thousand three hundred and fifty-four dol lars and niuety-eight cents, being nt the said times of committing of the fellonies aforesaid, the property of tlio said United States, contrary to the form of the statutes of the United States in such case made and pro vided, nnd against the peace and dignity of the Uuited States^ SrronA, And tho Grand Inquest aforesaid, on their oaths, respectively, do further present: That on the ninteenth day of January, upon some day between the first and the ninteenth day of January one thousand eight hundred and sixty-two, the said Victor Smith being an officer oflho United States, to wit: * * • * did then and there unlawfully and feloniously convert to his owu use and em bezzle a portion of the public moneys of the said Uuited States, entrusted to him the said Victor Smith for safe keeping, transfer an 1 disbursment, to wit: the sum of one thousand dollars. • • * • Third, And the Grand lnqu»st aforesaid on their oaths do further present, that the said Victor Smith on the twenty-eight day of April, one thousaud eight hundred and sixty-two, nt the city of Port Townsend in said District, then and there being an officer of the United States, to wit: • * • * unlawfully and feloniously did convert to his own use and embezzle a portion of the said public moneys entrusted to him, the said Victor Smith, for safe keeping, transfer and disbursment, to wit: the sum of three hundred and eighteen dollars and forty cents. • • • • Fourth , And the Grand Inquest aforesaid, on their oaths, do respectively, further present that, the said Victor Smith, * * * * unlawfully and feloniously did convert to his own use * • * • * * tho sum of three thousand two hundred and sixty-seven dollars, • • • • Fifth, And tho Grand Inquest aforesaid, on their oaths, do respectively, further pre sent, that on the twenty-eight day of April, one thousand eight hundred and sixty-two, Victor Smith before named • • • • nnd then and there having in his possession for the purposes aforesaid the sum of three thousand two hundred and sixty-seven dol lars, did part with his custody thereof in manner unlawful and in high misdemeanor, and deliver the said sum of thrco thousand two hundred and sixty-seven dollars, the property of the United States, out of his possession and into the possession of one L. B. Hastings. • • • • Sixth , And the Grand Inquest aforesaid, on their oaths, -espectively, do further present, that, • • • the paid Victor Smith, then and there, being au officer of the Uuited States, to wit i the Collector of Custom* for the District of Puget Sound, charged with the safe keeping, transfer and disbursment of public moneys, and with the custody of a certain vessel called tlu» Jefferson Davis , her tackle, apparel, provisions and furniture, all belonging to *ho United States, under an in ventory thereof duly delivered by one J. W. White on or about the first day of January aforesaid to the said Victor Smith as the law ful custodian thereof, did unlawfully and feloniously convert to his own use and em bezzle a portion of the provision and apparel and furniture of the said vessel called the Jtjj'crson Davis, to wit: one mattrass, a lot of bedding, one glazier's diamond, a quantity of meal, and other provisions, the names of whinh is to this Inquest unknown, of the value of one hundred dollars, being at the said times of committing the said felony the property of the United States, • • Seventh, Aud the Grand Inquest aforesaid, on their oaths, do rcspetively, further present, that, at Port Townsend within 4 the third Judi cial District aforesaid, on the tenth day of Jan nary, one thousand t eight hundred and sixty two, and at diveis times between the said tenth day of January and the first day ef April next thereafter, the said Victor Smith then and there being an officer of the United States, to wit: * • * * duly received from ono William Armstrong (auctioneer) the aggregate sum of three thousand three hun dred and sixty-iiinc dollars and eight cents, the .product of the sale by public auction of the schooner Jefferson Davis and her tackle, apparel furniture and provision, all belong ing to and being the property of the United States, and that the said Victor Smith then and there • • * * unlawfully and feloniously did convert to his own use and embezzle the said three thousand three hun dred and sixty-nine dollars, public moneys en trusted to him for safe keeping, transfer and disbursment, the said three thousand three hundred nnd sixty-nine dollars, being at the times of committing the felony aforesaid the property of the United States. * • * Eighth , And the Grand Inquest afori said, on their oaths, respectively, do further pre sent, that, on the eighteenth day of March, one thousand eight hundred and sixty-two, the said Victor Smith being an officer, to wit: * * * * did then and there have in his possession belonging to tlio United States a certain Custom warrcnt numbered three thousand one hundred and sixty seven, of the valuo of four thousand one hundred and eighty-one dollars, whuli said warrcnt the said Victor Smith charged as or. officer of the United States, to wit: * * * * did place in the custody of one J. M. Gitchell in the State of California, the said J. M. Gitchell not being an officer of the United States authorized to have the charge for safe keep ing of the moneys, contrary to the statute of tlio Uuited States iu such cases made and provided, and against the peace and dignity of the United States. Xinth, And the Grand Inquest aforesaid, on their oaths, respectively, do further pre sent, that, on the eighteenth day of March, one thousand eight hundred and sixty-two, the said Victor Smith # # # # then and there unlawfully nnd fclonously convert to his own use and embezzle a por tion of the public moneys entrusted to him, the said Victor Smith, for safe keeping, trans fer and disbursement, to wit: the sum of four thousand one hundred and eighty-one dollars, being at the time of committing the felony aforesaid the property of the United States, contrary to the form of the statute of the United States in such case made and provid ed, and against the peace and dignity of the United States. Truth, And the Grand Inquest aforesaid, on their oaths, respectively, do present upon tho information of John Allyn: that, at l'ort Townsend in said third Judicial District, on the twelfth day of September one thou sand eight hundred and sixty-one, the said Victor Smith an officer of the United States then nnd there, to wit: Collector of Customs for the Distiict of Puget Sound, and as such duly empowered to contract for the care of sick nnd disabled seamen at the expense of the United States, did in due and lawful manner on the part of the United States, then and there contract with one John Allvn, and wherein it was provided among oilier thing* that the sum of one dollar nnd fifty cents per day should be paid by the said United Status to the said Allyn as recompense for his care nnd medical treatment uf each nnd every patient with which he the said Allyn might be charged as contractor aforesaid, and the said Victor Smith, then and there being an officer of the United States empowered and charged as collector of Customs for the Dis trict of Puget Sound, to contract as aforesaid, then and there wickedly contriving to de fraud the said United States, did for his own use, emolument and gain, under preteuso of patriotism, require of said John Allyn an unwritten coudition to the said contract re quiring the said contractor to furnish and pay to the said Victor Smith, he being nnd officer of tho United Stateß as aforesaid, the sum of twelve hundred dollars per annum ; nnd the said John Allyn on the 22d day of March, 1862, did contribute and nay the sum of four hundred dollars lo the said Victor Smith for the use of a certain periodical paper called the He'u/d of Progress, and a further requir ing, that the remaining profit of and to said contract accruing should he paid to said Victor Smith, for the use of the War Fund, and the said John Allyn so deceived by the said Victor Smith, an officer of the United States, to wit: Collect >r of Custom aforesaid, ilid deliver upon demand to said Smith on the lentil day of October, eighteen and sixty one, at Port Townsend aforesaid, the sum of sixteen hundred and thirty-two dollars and seventy-five cents, money received by the said AUyn from the said United States, which said moneys the said Victor Smith, Collector of Customs, as aforesaid took aud received to his owu use, emolument and gain, against the peace and dignity of tho said United States in such cases made and provided. Eltt enth, And the Grand Inquest aforesaid, on their oaths, respectively, do present, that, heretofore, to wit: on the fifteenth day of October, one thousand eight hundred and sixty-one, the said Victor Smi.li being an officer of tho United Stat. s, to wit: tho Col- lector of Customs for the District of Puget Sound, charged with the safe keeping and disbursment of the_ public moneys of the said United StrfteS *t Port ToWnfcend hi said Judicial District, then and there did unlaw fully engage in the purchase of public lands, that the said Victor Smith being an officer as aforesaid on the second day of December, one thousand eight hundred and sixty-one, at Port Townsend, in said Judicial District, then and there did unlawfully engage in the pur chase 'of public lands; that the skid Victor Sftiith, being an officer of the United States, to-jrft, Collector of Customs for the District of Puget Sound, on the seventh day of March, one thousand eight hundred and sixty-two, at Port Townsend in said Judicial District, then and there did unlawfully purchase pub lic lands from one P. M. O'Brien, taking a deed therefor in the name of H. G. Plant, the said Plant being an officer of the United States connected with the Department of the United State, whereby the said Victor Smith committed a high misdemeanor against the peace and dignity of the said United States, and against the form of the statute of the United States in such cases made and provid ed. Twelfth, And the Grand Inquest on their oaths, respectively, do present tli&t heretofore, to-wit, on the ninth day of April, eighteen hundred and sixty-two, at Port Angeles, m said Third Judicial District, Victor Smith, being an officer of the United States, did un lawfully and in high misdemanor be concerned or interested in carrying on the business of trade or commerce, whereby the said Victor Smith did commit a high misdemeanor against the peace and dignity of the United States, and against the form of statute of the United States in such cases made and provided. Thirteenth, And the Grand Inquest afore said, on their oaths, respectively, do present, that at Port Townsend, in said district, on the twelfth day of April, on■_» thousand eight hun dred and sixty-two, the said V'ctor Smith, then and there, being an officer -1 the United States charged * • with the payment of salaries due to keeper or keepers of a certain light-house known as Tatoochc light from the said public moneys of the United States, and duly empowered to administer all oaths necessary and proper in the premises to be administered or taken, did, then and there, pay, as disbursing agent for the United States, to one W. W. Winsor, the sum of one hundred and fifty dollars, and then and there, wilfully and feloniously, knowingly did pro cure the said W. W. Winsor to make solemn oath and say that he, the said W. W. \Vfti sor, had received to his own use and benefit the sum of two hundred dollars from the Uni ted States for said services, by the hand of the said Victor Smith, Collector of Customs for the District of Puget Sound, whereby the said Victor Smith committed the crime of sub ornation of perjury against the peace and dignity of the United States, and against the form of the statute of the United States in such cases made and provided. (Signed) PAUI, K. Hunts, Attorney for the United States. A true bill. (Signid) . T. F. MCELEOY, Foreman Grand Jury. Witnesses : J. H. Merriman, W. L. Chal mers, John Allyn, W. W. Winsor, W. H. Taylor, L. B. Hastings, W. W. Armstrong, Dr. Thomas, W. X. Jackson, James R. An gel, Wiland Moore. TERRITORY or WASHINGTON, » 2d Judicial District. ) I, R. H. Hewitt, Clerk U. S. Dist Court 2d Jud'l Dist. of W. T., do hereby certify the above and foregoing to be a full and complete copy of the indictment iu the above entitled cause. In witness whereof I have hereunto set my hand, said Court being without a seal a scroll is substituted, at Olympia, this 22d day of February, 1864. R. H. HEWITT, Letter of Lieut. Merriman to Secretary Chase. CUSTOM HOUSE, PORT TOWNSEND, W. T., May 23, 186«. HON. SALMON P. CHASE, i SECRETARY OF THE TREASURY : J Sir :—About the 25th ult., Victor Smith, Collector df Customs for this District an nounced to Capt. Chaddock of the Revenue Cutter "Joseph Lane," his iutention of leav ing his office, for a period of sixty days, and requested the captaiu to detail An officer of the cutter to take charge of the Custom-House during his absence. Captain Chaddock in fluenced by the Collector's argument, aud made to believe that the interests of the pub lic service actually required a detail so un precedented, directed mc, as senior Lieuten ant, to report for duty to Mr. Smith, which I accordingly did on the 26th of April, and received his instructions to assume charge of the Custom-Housc, on the 19ih of the same ntonth. On that dAy T came into the offico, and was duly qualified as deputy collector, and on the 2d inst., Mr. Smith left Port Townsend, transferring to me the keys of the office, with out requiring receipts and leaving certain in struction, verbal and written, which I receiv ed and proceeded to act upon, with the same confidence in his integrity, that he appeared to repose in mine. A few days after his departure, while en gaged in an examination of the books and papers of the office, tor the purpose of inform ing myself of the method of transacting the business, 1 was much astonished at the irreg ularity pervading the whole, and the almost total absence of that system wh'ch thj laws require, and the regulations prescribe. But I was startled to find evidences of frauds and official misconduct of thogppst glaring char acter. lEV)tftpted by what f cbiiceiVea be my duty as a sworn officer of the Government, I at once proceeded to make a rigid investi gation of the affairs of the Custom-House dur ing Mr. Smith's administration of the same. The result of that investigation I now pro ceed to give you in extenso. The accompanying .statement marked " A" is made up from the books and found in the office and exhibits the sums thus acknowledged by ftm'th to have been drawn from the public moneys, for his own uses, ajso the salary and official emoluments to which he is entitled for nine months, and which placed to his credit together with three other items of credits show the amount of $4,354 98 overdrawn. In the treasure chest were two certificates of deposits, which were turned over to me as cash; they are as follows, viz: Received, Port Townsend April 28, 1862, of Victor Smith, Collector of the Customs for the Puget Sound District, three thousand two hundred and sixty seven "dollars, public mon ejs, as a special deposit, sebjuct to the draft of the Collector, or the deputy Collector J. H. Merriman in his official capac'ty. (Signed,) L. B. HASTINGS. SI,OOO. Received, this date from . Victor, Smith, Collector of Customs, Puget Sqund District, W. T., the sum of one thousand dollars, say SI,OO0 —the same subject to his order, and at bis risk. Victoria, V. 1., January 18, 1862. (Signed,) J. HABDISTV, Cashier H. B. Co., Victorik. Payable to John Allyn. (Signed.) VICTOK SMITH. Mr. Smith requested W not to disturb these deposits, but believing it to be my duty to rescue if possible, the Government funds, thus illegally lodged with private par ties, I demanded on the 13th inst., of L. B. Hastings the sum named in his certificate ($3,257) and after a delay of one hour, I re ceived from him $2,948 60 in coin afid the collectors draft for $318.40 endorsed upon the fol'owing extraordinary 'document, vii: CUSTOM HOUSE, Pom TOWNSEND, April, 3, 1862. On demand I promise to pay to tho order of L. B. Aastings five hundred and ten dol lars, value received. (Signed,) ViciWa SMITH - , , . , Collector. <U. S. Marine Hospital advance.) Endorsed as follows, viz Paid April 28th, 18:>2, otic hundred and eighty-six 60- 100. L. B. Hastings will pay to bearer $3lB 46 on demand and charge (Signed,) VICTOR SMITH, .Collected. Port Townsend, April 28, 1862. I find that by the check book, on the 28th of April, check No. 78 for $lB6 60 fn faVor of L. B. Hastings was drawn against the as sistant treasurer of the United States at San Francisco. It was prctendpd by Smith that this money was lodged with Hastings on account of the insecurity of the Custom-House Bafe. I have seen Hastings' safe, and am confident that two able bodied men could run away with it, while the Government safe, is a ponder our affair, that six men could scarcely move, and has been a faithful depository for many years. Mr. Smith's real motive however, ia readily explained by the promissory note sur rendered with the Hastings deposit, it was a security for the payment of that note. In regard to the sum of one thousand dol lars deposited with the Hudson Bay Com pany, I have a letter from W. F. Tolmie, a* follows: VICTORIA,VANCOUVER ISLAND, .. May 19,1862. J. H. MERRYMAN, ESQ., \ ACTING COLLECTOR OF CuetoM*, } PORT TOWNSEND, W. T. J, Sir: —We have received your note of 17th inst., Inquiring whether we will pay to yfar ttrifcr tho sum of one thousand dollars lodged with ils By Mr. V. Smith, on return of httre ceipts for the same. In reply, I beg to in form you, that we cannot pay the balance of that amount yet due Mr. Smith, save to his own order. lam Sir. Respectfully, Your Obedient Servant, (Signed,) W. F. TOLMIE^ For Iludsoh Bay Cck Clerk. This letter is certified by the U. 8. Con sul there, Allen Fiincls, who presented td Dr. Tolmie my letter of the 17th {nit. The Consul advises mo that he was informed by the cashier of the company, that the balance a'luded to by D. Tolmie amounts td $134. Th"se deposits welfe nlade in violation df the 16th and ltth Sections of the act of Con gress, approved August 6th, 1846, and I find that the principal portion of the money thus appropriated to his own use has been expend ed in n wild chimerical scheme at Port An geles, where he has purchased a land claim; erected a store, and has now a number bf men employed whose wages amount in the aggregate to S2OO per month. The sum of $3,241 22 due the Ui 8. from tho sale of the Revenue Cutter •' Jefferson Davis" in January la»t does hot appear W the credit of the United States on tho boob: ana is obtained frdm the nicmoranda, and auctioneers returns. Smith informed me that he was authorized by you to use »aid sunt for the purpose of raising the Marine Hos pital fiom a third to a first class. No such authority appears cn the files of *NO. 24.

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