The Union and journal. [volume], March 30, 1860, Image 1

About The Union and journal. [volume] (Biddeford, Me.) 1858-1882

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an ft journal
LOUIS 0. COWAN,]
"ETERNAL HOSTILITY TO EVERY FORM OF OPPRESSION OVER THE MIND OR- BODY OF MAN."—Jefferson.
[EDITOR AND PROPRIETOR.
VOLUME XVI.
BIDDEFORD, ME., FRIDAY MORNING, MARCH 30. 1860.
NUMBER 14.
Cjie Pinion & |mtmal
Pl'BLISflEO EVERY FRIDAY flORMM,
Office—Hooper** Brick Block* ap Stain,
Liberty Street, Blddeford, Me.
TKIIM8:
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aubaerlblag. Blagla Ooplaa. 4 c«uU.
AdT*ribl*| Rair*.
<>n* nqnarc or lea*. (3 Insertions) .... $100
Each subsequent insertion. M
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For the Union ami Journal.
The Bride upon the Lake of Constance.
A B VLL.ll> r*UM TUS OKMMXH.
The rider rides adown the Tale,
On the snowfleld glimmer the sunbeams pale.
lie journey* wrerily oTer the snow.
To-day he must reach the lake below;
For on its waves the boat doth ride;
Will bear hitu safe to the other aide.
Over thorn and stone, a toilsome way,
Yet hLi swift course he will not stay :
From the mountain down into even land.
There see* he the suow lie smooth as the sand;
Far behind him lenves he village and town;
The way grow* level, aud the path slopes down.
In all tho outspread plain he sees
No hill, no house, no rocks, no trees;
A mile and two he on doth hie.
He hear* in air the snow.gooee'a cry;
Now flutter* the water-hen around,
Come* to his ear no other sound;
No traveller now meets his eye.
To show him where the path doth lie.
On, on, it he ride* o'er Telvet-like snow;
"Where rushes the water, where shines its How ?"
Now come* the evening, too early it seems;
From distant lights a lustre beams :
Again iu the way come thorn and stone.
Yet atill he spara his good horee on;
Tree after tree from the mists uprise,
Aud now a village greets his eyre :
Hie dog* come out, and cheerful light
And warm hearth-fires a guest invite.
" Welcome at window, little maid.
To the lake, bow far may it be?" he said.
The maid looked up with startled eye
*1 The lake and the boat behiud thee lie.
And were it not covered by ice from sight
I should say thou had'st crossed in it to-night."
The rider shud lered, he spoke again, |
*• Hither rode I over yonder plain."
Then raised t he maid on high her hand,
*' Lord, God! then rcdest thou not on land;
In the abyss, in the bottomless deep below.
Has rapjxrd at its door thy mad hoofs' blow :
Trashed not the rind of ice beneath?
Heard'st not the angry waters sceth T
llecatnesi not prey for the silent brood
Of the hungry pike in the chilly flood ?"
And as within they heard the tale
The children's ruddy li|M grew j»le.
tirandsire and mother with one voice
Cried " Happy man. Oh! now rejoice;
Come to our fire, our table spread.
Sit down with us, and break our bread.
The rider sat silent on his steed,
To only the first words gate he heed:
His hair stood up, his heart beat fast.
At the thought of his fearful peril past;
His eye saw only the deep abyss.
In his ear it thundered like crashing lee.
Then sighed he, then down from his horn he
sank;
And a grave was for him by Coustance's bank.
THE I'ECK DEFALCATION.
REPORT OF THE INVESTIGATING
COMMITTEE.
[co.nclvuihv]
Peck's Duuxm with nirrttaaxT Baku.
The numerous discount* obtained by Peek
at different Hank* in the State, and the facil
ity with which he was enabled to raise mon
ey without being himself a responsible man
for any considerable amount, but solely on
his credit •« Mute Treasurer, formed no amall
link in the chsi« of causes which precipitated
hit defalcation and destruction. In according
to eeery one, therefore, his full share of blame
in thia matter, those hank officers who ac
credited Peck's ptWat* name, .imply because
he waa State Treasurer, thu. him, in
the end, to appropriate the public funda in
order to maintain a financial standing purely
fictitious, deserves no amall degree of public
reprobation. Ilia transactions with different
bank* will be given somewhat in detail.
XoaonaaoA Bank, Baxooa. From the u*.
timony before the Committee. it appear* that
Mr. Feck commenced keeping an account
with thia bank in July. IMS, but that during
that year nothing of a specially censurable
character took place. Witn the exception of
discounting hie official check on the 8uffolk
Bank, at the cloee of the year, for $4000,
which Peek used on making up bis accounts
with the State, the Committee find nothing
to condemn, in the conduct of the Nonas bega
officer* that year—and there ta no evidence
to show that they then knew what the money
waa wanted for. In the spring of 1U9, how
ever, Mr. Peek commenced a series of trans
actions with the bank, bnt more eepeciaily
with ita washier, George 2L Smith, of the
most disreputable character. lli« associate
and adviser .in the business was Mr. Dudley
F. Leavitt, who seems al»o to have been the
egent in consummating many of the objec
tionable negotiation*.
The drat considerable transaction with the
Xorombega waa their taking Peck's check
on Suif»lk Dank for $0000, giving him the
money therefor and holding the check until
it suited his convenience to take it up. This
transaction waa not considered a discount,
and waa not carried to the books as such.
The check was counted aa cash, and the cash*
ier alleges that it waa taken with the knowl
edge and a*w>nt of some of the directors, but
not at one of their meetings, Peck paid - no
interest on this $6000, the consideration be
ing the deposit he kept in the bank. Short
ly after, however, he hnd a chcck of $10,000
cashed in the same way, and on this amouut
he paid interest. This was to be held tho
same way the other was, and to be paid tho
same way, and the transaction had the ap
proval ot several of the directors—not one of
them indeed objecting, according to the tcs«
timony of Mr. Smith. Hcsides these checks
so unwarrantably cashed by the authority of
the benfr, Mr. Smith allege# that he gave Mr.
I'eck some $$7000 or $4000 of the bank's
funds during the summer of 18.39 without
any knowledge whatever on the part of the
directors, and without making any entry of
the fact on the bank book*. Peck gavo hia
checks to Smith, and tho latter says ''l'eck
agreed to take the Xorombcga bills and not
let them come back until he paid the checks."
It appear* tl\at aa the October examination of
the directors approached, Mr. Smith grew ve
ry uneasy in regard to the money which ho
had secretly loaned to l'eck. Tho latter,
however, by deposits nt the Hank of Mutual
Redemption, and other expedients, succeeded
in saving himself and Mr. Smith from merit"
ed exposure. A« sor.n, however, as the criti
cal day waa passed, the criminal game bejfin
afresh, and Mr. Smith advanced money on
the*e s| urions securities until, according to
his own account, ho had $lt>,3U0 of them on
hand. In regard to the puttie* negotiating
them, Mr. Smith say*:
••PWck did not personally negotiate with me
all the checks 1 tuuk prewou*l» to Dec. 1, IJOD.
Mr. D. F. Leavitt ncgotutid the rest. 1 un
derstood that l.cuvitt was acting as l'eck's
aiienl."
Mr. Leavitt seem* to have ocen cwrusie.i
bjr Peek *ith olhcial chock* ,'ia whole batch
p*,,' to be u»ed a* exigencies required. A*
illustrating this point, Mr. Leavitt in hia te»t«
iiuony said:
"After th«* Nori>mhe«a Hunk Mew up, I let
Smith have all «t Pirk'i cheek* 1 had on hand
—amounting In {s7.i"»0 Thi> Win after the Uc
cetvetn took pi>s»ossiou."
Mr. LcaviU thus explain* hia rcarons for
surrendering U.» u clucks to Smith :
"U-forr the Noromtcgi Iln.k failed, Peck
Halhf n»e to g« t him £3,'H>0 of their bills,
which I got and »« nt to him, but then gave ""
ehcck for it. 'the Monday l>< fore it UM, I
got «C!.<}'>0 to pay a note of Hallowed and
Smith'* at ltostcu, and gave no check thcu.
Alter the failuie, I gave .smith these check*,
amounting to I Cot, as above stated,
<3l,.)0tl from the bank, leuxing an nnut of S2,
N.V» m l'eik's cheeks, on which uu money In*
been paid, and uu which l'eck has received no
money."
In addition to the checks thus negotiated
hy Smith without any authority whatever.
l'a«k obtained from Kchwartx, the President
of the bank, a discount of time check* in
December, amounting to $o000. This trans
action w us understood to have the approval
of the directors, and the three check.*, $l,J00,
$ I,.5000, and $.',000, given for the amount,
were made payable respectively on the sec
ond, tilth, and sixth of January, I860,—thus
obviously to be.provided for out ot the treas
ury funds of the present year, should Mr.
Peck succeed in retaining his control of thctn.
'l'he money thus advanced to l'eck *« not
entered as part of the loan of the bank, but
the checks were counted as cash on hand.
On the 22d of December, according to
the testimony of Mr. 8chwartz, the presi
dent, Mr. Peck came to lJangor for another
loart. lie gave him the most positive as<
surances of his re-election, and promised
for the next year to keep a better deposit in
the Norombega than he had previously
done. Mr. Schwnrtx, however could nut
be induccd to grant a ftesl: loan to Peck,
but after farther conference, was prevailed
on to exchange checks with him for $12,000,
i'rck tellinj; Itim mat no *mmu uiu
fer one day only. Schwartz gavo his check
lo Peck for that nmount, and Peek pave
Schwartz his check for the same sum.
Peck at once proceeded to the cashier with
Schwartz's check ; had th» amount passed
to his credit and a certificate of deposit for
the same, together with the deposite then
in his favor, was at once given him by (ho
cashier. Liter in tho day Schwnrtz put in
Peck's check, and the ^I'J.OOO with which
ho was credited a few hours before was
again charged against him. The bank was
thus neither loner nor gainer to tho valuo
of a cent, but Peck had a certificate of do
posit which mule him appear a great dual
hotter for the time at the treasury office iu
Augusta. After this transaction was com
pleted, Schwartz and Smith talked it over
and agreed according to the admission of
both, that the certificate was to be used by
Peck "in making his balance good at tho
treasury." There is no evidence, however,
going to show that Mr. Schwartz had any
knowledge whatever of Peck's real situa
tion, or that he meditated being any party
to the fraud which was thus attempted, liu
as«ented tn tho arranguient without appar
ently comprehending lis real scope, and all
his fiwrs were (piieled. he says, by Smith,
who systematically deceived him both in re
gard to Peck and the bank. The transac
tion, however, in itself is too culpable to ad
mit of any apology or extenuation.
Til- Dtx>k« Ol 1110 uailK, e.liiiuuru III iiiu
Committee by (lie Rrcrinn, reveal other
serious discrepancies—inexplicable on any
presumption of honest intent on the |>ai't ol'
Peck or (lie cssiucr. For example, ou the
Itilh of November, the book* show a bal
ance of .*i:»i:.(i7 against Peck, and carry
ing the account to a new pgr he is credit
ed with $3tifiU!#l—without any intervening
entries on which the change from debtor to
creditor could h«ve been b ised. On Dc»c.
•J4th, some credits and debits intervening
trout lani date, there appear* to have been
a balance to his credit of $*3174,1*8, where
as, by hone»t addition and aubtraction.ho
was at that date indebted to the bank in
hia regular account in the sum of $40&>,71,
which the Receivers now claim from him.
These entries, therefore, clearly exhibit a
fraud upon the bank of $7VJl4,iW.
There is some discrepancy between the
"tatements of Smith on the one hand and
•he Receivers on the other, as to the groae
»mount of Peek's checks in the bank, but
| »hia the Committee have not felt called up
on to arbitrate, inaamuch aa tho settlement
of it belong* rather to the bank than to the
! Receivers allege that they
checks in the vaults
nl the bank,that $15,475 were afterwards
UP "T Smith—making • sum total of
$<4,4*5. ihe sum total acknowledged by
Smith as being in the bank, was *^1.300.
There was also a dispute between Peck
and Leavitt as to the number of these
checks that were "run inw to tha Norombc
ga without any equivalent being received.
I Leavitt'a statement ia given on page 39.
Peck testifies that Leavitt aaid to Him, "I
cave Smith about (9000 in checks, to tare
his neck." A part of this, Peck allows to
hovo been due, but a largo portion ia dis>
claimed. An exact aettlcmcnt of the iaauo
ia unimportant for the purposes of tbia in
vestigation. Leavitt testified one way and
Peek the other, and the Committee do not
feel called upon to take aidea with either.
Francia Vv.IIill, of Exeter, one of the di
rectors of the Norombegc, but who waa en
tirely ignorant of Peck^i transactions with
the bank,testifies to several interviews with
Peck after his defalcation became public.
Hill ahowed him the schedule of checka aa
held by the Receivers, (£24,475,) and saya:
"I told Peck that 1 thought his Heat obliga
tion w»i to protect Smith, the cashier, became
hit bondsmen had signed with a knowledge of
their liability, but that he had asked Smith to
rob tha stockholders of tho bank, by going
there necretly and asking Smith to lenu him
money without the knowledge of the directors;
knowing aa he (I'eck) did, that it waa a trans
action that might ruin Smith and make him a
candidal* for the State Prison."
Hill further saya that Peck assented to
this and admitted that his first obligation
waa to take care of Smith and lm would do
so. Hut Peck's testimony on this point
contradicts Hill as follows: "I told Hill that
1 considered tho claim of my bondsmen on
me beforo any other, and I told him that I
should consider my first duty in any event
to mve myself from Slate Prison."
Speaking further of their interview, Hill
says:
"I'eek then picked out some 5'2,000 in tho
schedule of chocks, and said he did not feel
under the same obligation to pay them us the
otlierH. 1 asked him why ? and he said he
would tell me if I would say nothing about it.
He then said those checks (512,000 worth) were
not negotiated by him but by Dudley F. Leavitt,
though lie presumed he hail the money. Tho
balance of the checks except one lot of $3,000
from Schwartz, he had himself from Smith, but
not in Ilank loans."
Mr. Hill uftcr Peck's cofession ns just
given,had an interview with Leavitt und
says:
"1 told Leavitt he must respond to the nan*
for the $12,000 of check*. I told him I into
A.'j foot m the trap. Leavitt said there were
others who had their feet in the trap with him,
and that they should be equally held to answer.
1 told him what 1'eck said about the checks
and he did not deny it."
Peck's uniform and persistent nesevcrntion
to the Committee lias bben, that his real
ilulit at the Nornmbega wna $8,000, und
that lie Ind never received the proceeds of
any of hia check* beyond tint. Leavitt nnd
Suntli ti>!l it ditlrrent story but the Commit*
| tee do not feel culled upon to decide a
question of. veracity between these parties.
Leavitt assert* that he ulways pud the pro
ceed!* of the checks to Peck, whereas l'eck
positively declares that Leavitt negotiated n
large number without accounting to him lor
the money. Pick denies that ho ever ad
mitted to any one that his bumi Jidt debt at
the Norotubega exceeded $8,000. The
case in the judgment of the Committee is
not susceptiblo of a definite conclusion, and
therefore they do not pretend to have arriv
ed ut one.
In addition to the amount thus raised by
checks, Peck had notes discounted at the
Noronihegs, between July, 1858, and Octo
her, 185!), to tho amount of $I5,7.VJ 711—
l.Vi II of which was over due and un
paid when the Receivers exhibited the
books to the Committee. The notes were
generally of an inferior character though
some of them bore good names. The great
majority, however, would not bo considered
responsible, and wcro made valuable only
by Peck's endowment, which in turn deriv
ed its strength solely from his official posi
tion. Tho settlement that has been, oris
to be, effected between the Bank and tho
various parties to these transactions, is no
part of the business of this Committco—
their duly being fully discharged in point
ing out, as they have done, the evil agency
of the llank in affording facilities to Peck
to get money which in the end made a
fraud upon tho Treasury a natural sequel.
The evidence before the Committee,
clcarly established tho fact that Messrs.
Drumpion. Hill, Donahue nnd Field, of the
Board of Directors, knew nothing whatever
of Peck's objectionable transactions with
the Norombcga.
Mrciunics Hank, Portland. ur mis
bank, Mr. Peek says in hit testimony:
"Mr checks, as Treasurer, have been die
rountrd somewhat extenaively by the Mechanics
Dank. Some of theae ehecka were dated ahead,
aud othera were made payable on presentation,
but the bank agreed to keep thein lor a apeciflrd
time. Theie transactions date back to 1857* but
hate been more frequent within the paat year."
Allen Haines, President of tho bank,
testified thus:
"Peck's account in our bank, aa Treasurer,
waa open throughout the whole three year*,
lie had different note*, sundry ones, discounted,
and proceeds carried to the credit of the State,
lie sometimes endorsed theae notes as Treaaurcr.
1 do not know that he was authorized to do this
but supposed the State was held. I thought the
money waa needed for the purpoaes of civil gov
ernment.'
It appears that Peck was in the habit of
procuring discounts in this way, and after
the money was carried to tho cretffl of the
State, ho would check it out for his own
purposes, by checks payable to bearer, or td
ins own order, or to the Eastern Exprexs
Company, or in some way that did not de
fine tho destination of tho money, liis
carrying tho money to the credit of tho
State, was n mere ruse and one so trans
parent, indeed, that it is hardly crfdiblo
thnt the officers of tho bank should not have
MM thVMfll it. The bank is highly on*
sorihlu lur ever discounting a piece of ne
gotiable paper wilh Peck's namo as Trea
surer upon it, as such a transaction is, in
all riMpvcts, indefensible and illegal.
Without remarking tarther tipon uic c«'n
i ml practice of this bonk, or calling atten
tion to the numcruua improprieties thu*
commuted, it i* proper to direct the attfn
tiun of the Legtalaluro to olio apecific trail*
sachon of so grave a character as, in tho
opinion of the Committee, to demand re
dress, immediate and effective. It appvura
upon the joint and accordant testimony of
Mr. Peek and of Mr. Haines the prenideiit,
and Mr. Stephenson (he caahier, that aome
timo in the early port of the paat autumn,
Mr. I'eck presented to the bank, for die*
count, tho note ol George R. Smith and A.
K. Ilallowell for $3,000, payable at the
Suffolk Dank, Dec. 34th—27th. It was
payable to Peck's order, and he proposed to
rodorae it. lie left the,note for the con
ference of tho bank ofHcerv, and when he
returned to learn ita fate, he waa told thai
he could have it discounted if, in addition
to the endorsement of "B. D. Peck," lie
would also endorse it aa "B. D. Peck, frra
surtr* Mr. Ilainea said to the Committee:
••I would not take the note without tha tn
dorsetnent of "Trtaaurer." I would not my
self have taken it nor considered It satlafeclorjr,
with the simple endoraement of "B. D. Pack."
Mr. Peck aeeatt very readily to have aa
sented to the condition, and the note waa
accordinflj codoieed "B. D. Peck," and
"B. D. Peck, Treasurer," and the proceed*
entered to the credit of the State whence
they were speedily drawn out on aomc auch
check aa already described. At the time
of tliia discount the State already had a de
posit in the Dank of several thousand dol
lars, and it ia therefore abcnrd to pretend
that the money obtained on the note was
possibly needed for any exigency in the
Treasury. When the note fell due and waa
sent to Boston for collection, Peck waa out
of funds and it was accordingly protested
and returned to the Mechanics Bank en the
28ih of Dec. On the 21Kb, Mr. Dow, one
of Peck's bondamco, called on Mr. Haines
and told him, according to Mr. Dow's teati
mony, that Peck was in trouble pecuniarily
and requested him aa a measure of safety
both to the Stato and tho bondsmen, not to
honor any more of Pcck'a official checks
upon any deposit that might be inhia Bank
to tl.o credit of the State. It wss in evi
dene* before tho Committee also, that at
the timo Dow thua advised Haines, Peck's
defalcation was a matter otaommon atrect
talk in Portland, capecially shown in finan
cial circles. Instead of paying heed to Mr.
Dow's request, Mr. Haines seems to have
construed it into a hint to mako an rflort in
some way to get payment on tho note. Ac
cordingly about tea-time of thodavin which
Mr. Dow had mado his request, Haines and
Stephenson, the President and Casbicr,
called on Peck, and ns Peck says, found
hiui "all broken down," and demanded pay
ment of the note. They informed him that
the Stato had a ilepoait of something over
$1,100 in their Bank, and after much pre*
sing, as Peck says, tlioy obtained from liiin
an official check lor precisely $1,100, ami
wnntcd one for $1K)0 on somo other bank
which Peck, having used nearly all the sur
plus of the State lunds, was unable to give.
Finding the next day that the exact sum to
the credit of the State was $1,1(18 70, Peck
says that either Stephenson or Haines, can't
remember which, culled on him for a check
for thu balance, of 70, which he abso
lutely refused to give.
Remembering Hint 1'eck's name as "Trea
surer" wan put on this nolo at tho instonco
of tlio Bank ; that it was put there wrong
fully ond without nny authority of In w ; that
tho idea of tho money being needed by tlio
State, or even being in any way used for
| tlio Statu'* benefit, in u singular pretense;
tluit tlio $1,100 whb obtained from I'rrk
tifter the Hank was duly apprised that Peek
was a defaulter, and indeed alter that fact
wan notorious as far as Portland was con
cerned ; remembering oil these facts, tho
Committee have unaniuiously concluded tliat
I the t? 1,100 was obtained without law and
without right, and they therefore recom
mend that repayment thereof ho demanded
of the Mechumcs Dank, and that it bu en
1 forced in the moat summary manner.
Tiudcrs' IIa.nk, IlAXiun. A very largo
number of timn checks tind checks to bo
held bv agreement, were taken by this Bank
from !'• ck as Treasurer, and it is under
stood that somo $7,000 remain unpaid—
mostly drawn on tlio Suffolk. Peek's tran
sactions with this Bank in tho way of pro
curing discounts on notes, were also pretty
oxtonsive—all tho negotiations being in
trinsically based on the credit he enjoyed
from his position, and the Bink accommo
dating him in consideration of the advant
age it gained from the deposits which ho
undo of tho Public funds.
The City Bank of Biddcford, on aeveral
occasions, has discounted tho time checks
of tho treasurer, or checks to bo held for a
specified period before presentation for pay
ment, however dated or worded, and has, by
discounts, afforded Peck large facilities in
obtaining tho use of money. ■
Tho International Bank of Portland, hes
also discounted tho same kind of apurious
poner.
Die Manufacturers' and Trader*' Bank
of Portland, has discounted private paper
on which Peck was interested, and taken
his official time check, on tho Suffolk, as
collateral security.
i no oiaic nann 01 Augusta, on onw oc
casion, took Peek's official check on tho
Suflolk in payment of a private note, and
then held the chcck, by agreement, for a
long period, according to Peek's testimony.
Col. Stanley, president of the bank, stated
that tho period was not very long, according
to his recollection, and that tho chcck was
kept as it was, to oblige Peck, and with
out any compensation whatever.
The State Batik and Augusta Bunk, of
Augusta, and the Market Hank, of Bangor,
li.ive ench, according to Peck's testimony,
given liiui indirect compensation for the favor
of deposits. Tlio Market Bank made him,on
two occasions, a small cash present as an
allowance of interest on tho sums debited
there.
Tin se arc nil the transactions with banks
wli'ch the Committco deem of sufficient
importance to embody in their Report. Tho
inference is quite plain, that the banks, with
out so designing, have materially agisted
hi the work of depleting the treasury. Tho
inflated credit which they gave to Mr. Peck,
when ho was entirely undeserving of it
from any resources legitimately at his coin
uimid, led limi to the giddy heights whenco
a fall was inevitable. Tho idea of a liirrcl
seizuro of the Statu funds for tho largo
speculations on which he entered, does not
seem to have been a part of Peck's original
calculations, but after ho was onco launch
ed on the great scheme of "credit," there
were lapses continually occuring which
enforced the use of the State funds, to n
void tho alternative of the fatal "protest."
lie had paper discounted in loree sums, with
no hope of the makers responding ut ma
turity—leaving him to stand alone at the
critical moon ill, or go through the damaging
Drocess of renewal with equally inferior
I noli*. Weston testifies that 'lie made a sweep
j of $10 000 at oiio limp, in Bangnr,* on pa
per nioKtly of the character jn«t described.
Tlio witness add*, however, that 4,that hub
a lucky day," and of comae is not lo bo
taken ua a simple. The Committee tnny
desire to offer a law which will effectually
prohibit banka from indulging in practice*,
which, in this instance, have led to such
ruinous consequences.
Tukasuker's Pamh Pwoouotid it
l'HITATB I'AUTIEa.
In the course of the investigation, numer
ous financial transactions between private par
ties and Mr. 1'eck, as Treaaurer, were dis
cloaed. Many of theee were of a highly ob
jectionable character, and deserve the same
expoeuro and censure bestowed upon tho
banks, for their improper course. Some of
these ma j be told in the language of the
partiea themselves.
George II. Shirley of Portland, made tho
following atatement:
••On tho 26th of Aogtut, 18o0, Peck asked
me for my note, for $2,000 for tire months,
offering as aecurity, his official check, dated
ahead, five monthia, perhaps, or bank billa, as
aecurity. I gave him the note and took his
eheek. A few days alter, I told Mr. Peck
that I preferred the book billa, and wished to
exchange hU check therefor, whereupon he
j took up hie check, end gave me |2,000 in
; Noromoega hank bills. The note wae dua
January 20, 1860, but on Nor. 14th, Mr.
Peck came and took up the bank bills and
gave me my note."
Mr. Shirley detailed several other transac
tions between himself and Feck, of a some
what similar nature with the foregoing.though
none o( sufficient importance to be repeated
in thia report.
William 1U Porter of Portland, in his tes
timony before the committee, saya:
"Trek told me in August last, thst he had,
just hsd a discount at Bangor, and the condition
was thst he should not use the bills at once. I
took some $2,000 of Norombega bills from him,
and gave him other money in exchange, taking
his note for the amount. Shortly after, took a
similar amount from him, and continued dis
counting his psper until I hsd losned him some
$N,000 or A9,000. Waa to keep the Norombega
bills from 30 to 60 dsys, and charged Peck at
the rate of one per cent, a month, for the ex
change. Charles Holden. Bsra Carter, Jr., and
I. P. rarrington, were the parties who furnished
the funda for these operations. My profit waa
merely one-quarter per cent, brokerage, and thfc
one per cent, a month, went to llolaen, Carter
and rarrington."
From theao disclosures of Messra. Shirley
and Porter, it is quite evident what disposi
tion Mr. Peck msde of the Norombega bills
which he obtained in auch an illegal mode
from Caahier Smith. The Committee un
derstood Mr. Porter to say that a largo part
of these bills ■till remain with these gentle
men. $1A00 with Carter, .V - 500 with Hol
den, and •3 ,000 with Parrington.
Mr. Porter further atated in hia teatlmony,
the following fact:
"Somo time in October last I negotiated a
note for Peck with Smith and llallowell as ma
kers, and lfeck endorser, for $1,600, maturing
in December. Chsrles Holden took this uote,
with I'cck'a official check on the Suffolk as col
latfral security, chsrging one perceut. a month.
The note was paid at maturity."
Mr. Porter dealt largely in Peek's paper
during the months oi October and Novem
ber—in aome instances purchaaing on hia own
account, but moro fiequently for the gentle
men already named. In thia way ho die
counted Peck's note, endorsed by Neal Dow,
lor $i,uuu « Ot V/e vsiiMv m nuir, cuuuncu ujr
Peck, for $1,000, and M. (1. I'almer'a note,
endorsed by Peck, for $1,600. Mr. Porter
testified "that Mr. Carter and Mr. Ilolden
were special friend*, and had great confidence
in Mr. Peck." They do not seem, however,
to hare been able to accommodate Mr. Peek
with all the money he needed, and according*
ly Mr. Porter procured a discount of Ilal
lowell and Smith's note for $2,000, Peck en
doner, at the Great Fulls liank, N. Il„ tak
ing Peck's official check aa collateral securt
ty; cbargu ono per cent, n month and bro
kcragc.
Mr. l'ortor advanced to Mr. Peck of hia
own fund* $2,000 on ono occasion on n check
on the Trader's Dank, and at another, $1,000
on n check on the Dank of the State of Maine,
both of which, though payable on presents*
tion, were kept somo time, by agreement be
tween him and Peck. Hatea ot chargo the
same as on notes.* In November, Mr. Porter
says ho agreed to deposit $1,600 for Peck at
the Suffolk, taking a time check from him on
anothor bank aa aecurity. Mr. Porter thua
describes his motive and reaaon for ao doing:
••Peck told me he waa in a tight place;
fi tends who had hia money were loth to pay;
banks were hard up { taxea came in alow ;—
Caldwell waa boring with n big augur on tha
Suffolk for State usca; interest coupona were
running in with fearful apeed, and all he
wanted was a little lift to get him over a dif
ficult placo."
From "motives of friendahip," Mr. Porter
aaya, ho advanced the $1600,.charging but a
small exchange on tho sum, whereaa, in ev»
ery other inatance, he had cbargod him one
per cent, a month and brokerage, lie aavs
this ia understood to be "the usual rato in
Portland, and that Peck told him it was high
er in llangor." Prior to August '60, Mr.
Porter aaya he bad no finatcial acquaintance
with Mr. Peck, though he had known him
peraonally for aome years. He aaya he waa
induced to nogotiate hia paper rather from
"motives of benevolence," • than from other
considerationa. Mr. Porter was asked by tho
committee at what figuro he estimated the
total amount of interest, brokerage and com
misaion he had received from Peck during the
four or five montha he waa dealing with him.
lie could not give any apeciflo answer, but
promised to send an exact account to tne com
mittee, tfhich h»hu failed to do. His only in
sertion w ns that it was leva than a thousand
dollars, though it must amount to several
hundreds. • At aame rate with other brokers,
it is quite evident that Peck's estimate of the
amount paid for interest and exchange, is
rathor under than over the true figure.
Walter lJrown, of Bangor, had one or two
traaactiona of considerable magnitude, with
Peck. One waa the sale to him of a draft on
Boston, in October last,for $12,600 for which,
Peck paid him a premium of about $100. In
November following, Mr. Drown loaned Peck
$>000, on his official check, agreeing at the
umo to keep the check on hand, and givo
Peck full opportunity to repay. Within the
few ensuing week*, Peck paid a portion on
the debt, and, to the time of his defalcation
nnd exposure, still owed something morn than
$3000 upon it. On the 30th or 31st of De
cember, Poek went to Bangor, and hia con
dition, as a public defaulter, was then a mat
ter of such general notoriety a» to have be
come a topic of newapaper comment. Aa
anon as he arrived, Mr. Brown had an inter
view,and procured from him hia official checks
on several banka in Bangor, and that vieinity
for auch amounts aa the State then had on
deposit in aaid banka. The sums thus pro
cmcd by Mr. Brown, were on checks doted
aa follows, and on the following bauka:
Dec. 30th. Market Bank, $302
•• " Stillwater Bank, Orono 216 64
" " Lumberman* Bank, Oldtown, 1111 U
'• 3!*t, lUnk of Bute of Maine,
•• •• Keniluskeag,
62 89
1000 00
60 00
$2832 39
Iii every in»tanrr, the balance tn tho credit
of the State wan swept clean, and the only
rea«on why Mr. Ilrowu did not get mora waa
l>ecau«« there waa no more to get. In ono
cane, at lenst, the check wan sent tn the bank
without being filled, with the request that
the cashier would insert whatever amount
atood to tho credit of the State, and pay it to
the hearer. Under theae circumatnncra, tho
Committeo must express the opinion that Mr.
Drown did not obtain this amount, £2,832 3'J
in a rightful mode. lie knew that Mr. l'eck
was a defaulter; he knew that the State waa
already defrauded of a very large amount by
Mr. l'eck negotiating these time checks on
one of which, hia claim waa basod, and be
should have known that he had no claim
whatever upon the 8tate for repayment. Mr.
Drown aaya in defense, that when Peck got
the 55,000 of him in November, in Tradera
Dank bill*, he said i» was for State uses, and
• even promised that it ahould be paid from tba
Treasury at tha rata of only $300 a weak: but
the Committee have to repeat that there la
no good evidence of a single dollsr of it ever
going to the benefit of the State, and they do
not conceive that any of Mr. Padi'e personal
promisee could give Mr. Drown any claim
whatever on tho State for payment of obUfa*
tinns thua incurred by Mia. Tha Committee
regard Mr. Drown'a receipt of theee sundry
checks at tho time and under the circum
stances. as pcaciaaly parallel to tho ease of
tho Mechanic Daak, aod they therefore reo
ommend the •■me courae already auggeated
in regard to that. MrT Drown ahould be he'd
to restore the whole amount of #2,832 39,
without anr delay, and (f there la any refu
aal, the moat expeditious remedy afforded by
the law ahould be at once reaortad to for ite
recovery.
A eaae of aomewhat aimilar character U
preaetited in regard to an official check of Mr.
I'cck'a on the Suffolk Dank, aold by D. F.
Leavitt about the flrat of Ntvember to J.
Wyman, Cashier of the Market Bank, Ban
gor. Wyman purchased thia check on hie
own account, waa to hold it for • rather un
defined period, perhape into the year 1800, at
a certain rate of compensation. He got it
through * channel which l» muat hare
known waa not properly authorised to be
dealing in Treaaurer'a check*, and he held it
in hia poaaeeaion for aeveral conaecutive weeka.
During the laat week in December, when Mr.
Wyman heard of Peck'a difficulliee, he aent
the 8uffotk check to him and exchanged it
for one on the Market Dank, where from hie
official poaltion he knew there waa a balance
to the oredit of the Slate. A new check waa
thua given by Mr. Peck though it «m note
dated, and with thia check Mr. Wyman paid
hitnaeif out of money belonging to the Bute.
Knowing as ho did when the check waa is
aued, that Feck waa a defaulter, and asking
for it indeed becauae he knew ho waa a de
faulter, aeiiing thia chance then or never, aa
ho auppoaed; Mr. Wyinan ahould be held to
repay the £1,076 into the State Treaaury, and
tho Committee make the aatne recommenda
tion touehing hia caae that they have auggeal
ed in regard to that of Mr. Drown and the
Mechanica Bank. The aamc principle applies
equally and equitably to all three of thorn,
and the aame remedy ahould be enforced.
The namea of other partiea that have dealt
in theae time checka of the Treasurer, or
chccka which were to bo kept aa].ecitied time
before preaentation, may be found in tho
achodule of thoae negotiated by Mr. Loavitt
—given on page 20.
"i'Al'LK hAMM AMI "OMYKMA l.AMUS.
In lha foregoing portions of the Report,
reference has been inado to tho "I'aulk Lands"
and "Smyrna Lands," and it may be neces
sary, in order to render ail the points intellig
ible, to mako a brief reference to the part
these lands hare been inadu to play in the
transactions connected with the Treasury
I'efalcation.
The "I'aulk Lands" aro some 37,000 acrea
of timber land, in the countiea of Somerset
and l'enobseot, purchased of (). L. Iloynton,
by Leavitt and Weston, in May, 1850—and
deeded, by request, to Abner It. JIallnwell.—
The auiu to bo paid wu $ 15,000, and $'2,000
furnished by Peck was paid in caah, $1?,U00
settled by notea secured by mortgage on aame
property, llallowoll, acting under the direc
tion of Weston and Leavitt, then mortgaged
the lands to l'eek, in order to aid him in >ho
negotiation of $20,000 worth of note*. The
notea wero those of Leavitt and Weston, pay
able to Peck, and the availa were to be used
in the Canada operation. Weaton lays it
was understood between them that Peck
could raise on these notea some $12,000, and
the wholo do»ign sccma to have been to use
tho landa aa tho meana of raising money lor
other apeculationa.
The "Smyrna Landa," in the county of
Aroostook, were mado the basis of another
tranaaction, quite aimilar to the one juat re
ferred to. lioynton and llradley agreed to
aell them to Leavitt, for $6,000. Peck furn
ished th« funda for the purchase, and tho
10,000 acrea of land were deeded to him.—>
Weaton aaya, in regard to thia matter:
"Leavitt and I satisfied Mr. Peck that it would
be for his interest to furnish the ^>000 and take
a deed of Smyrna, and upon his unencumbered
title to that body of land, he could raise two or
three timea aa much money in Portland. We
procured the statement of aundry persons as to
the value of these lands—among others, that
of Watson Dyer, nephew of Isaac Dyer of Port
land."
Mr. Weston aaya, that having aatisfled Peck
of tho expediency of making the purchase,
the requisite funda were raiaed on four notea
of I'eek'a, which were diacounted, and which
he paid at maturity, Mr. Weston further
understands, that "Peck, in the flurry of his
failure, conveyed away his intercat in the
Smyrna Landa, to Treat & Co., and got back
hia $.1,000." Leavitt aaya that "the whole
transaction, so far aa Peck is concerned, otf
sets itaelf," aa he paid $5,000 and got $5,000
back.
It ia understood that In the vsrious nego
tiationa that haro been in progross between
Peck's partners and his bondsmen aince Jsn*
unry 1st, the Paulk lands haro fallen into the
handa of the latter, in exchango for their aur
render of ail hold on the Canada property.—
Peek's connection with these transactions was
obviously to hare the large tracts of land for
use, as pawns on the chess board, in the
dashing game of iinaiiro he wasenghged with
othera in playing; and these explanationa are
made rathor for tho purpose of simplifying
former parta of this report, than because the
transaction themselves contained any thing
worthy of apecial and separate investigation.
They were indeed but side-playa to the grand
drama enacting in Canada.
Was Musky usku rou Political Punrosas ?
Every witness that came before the Com«
miltee on any topic connected with the JefaW
cation, was interrogated aa to whether he had
any knowledge of Pcck'a using public money
for political purposes. All told the same tale
with very great uniformity. Weston, Cush*
ing, Ilsllowell, Lesvitt, Smith, Somes, Stack
pole, Dow, Stanley, and every one else, as*
sorted with unequivocal plainness, that to
their knowledge no State Funds hsd been
contributed to political uses or for the Tem
perance cauae. Mr. Stackpole was Treasurer
and Collector of the Maine Tetnpersnco As
sociation during the emire period of Mr.
Peck'a official service, ar.d he never knew him
to pay but $25 in that lime, and that was to
aid Mr. Sinclsir, the Scotch gentleman who
lectured to childrrn on Temperance. None
of the other witnesses had Knowledge of a
single dollar going for anv such purpose from
Mr. Peck, whether from his private moans or
the publio Treasury. Mr. Peck himself, in
his testimony beforothe Committee, insdo the
following statement on this topic:
"I think I have paid duting the tnree year* i
wa» Treasurer, about frIOO in all, for political
uica an1 for the Temperance came. My ai»c«<
mrnt by the Republican State Coinmitlee waa
«50 in IM7.8I00 in 1M8. and tfVHn 1M9.—
lien I paid aome amall *um« at different titnea
for election purpoaet in Portland, and once gar*
S-'» to the lemperance A«»oei»lU»n—in all
amounting aa I haw aaid to about 5400 for the
thrre Tear*. I nerer paid froiu the Treaaury
directly or indirectly, a dollar to promote Home*'
election, and have no reaaon to auppoee the
money I loaned him waa u»ed for election pur
poaea. 1 know be uaed it in hia buaineaa. I
never loaned E. B. French a dollar, directly or
indirectly, of private funda or public funda—nor
to anr other peraon for him directly or Indirect
ly. I hare never paid a dollar directly or indi
rectly for Stephen C. Foater, either peraonally
or politically. 1 think I once let a member of
the Republican State Committee in Portland
have my check in fuvor of Jaa. S. Pike for*
certain aum of money, leaa than 11,000, which
be waa remitting to the Eaitrrn Diatrict. He
paid me the aame aum precUely, in Portland,
that I gave him my check for. The tranaaction
la one that la often done to oblige a (Head. Thia
la the only tranaaction of any kind in which I
remitted money to the Baa tern Diatrict, and 1
would have given my cheek on the una tenna
to any gentleman that had aaked for it"
About the aame time that Mr. Peek waa
giving the foregoing Uetlmony to the Con
"Wnr no Rarorr ?—The people are aQ eat
of patlenee that the lnveetigatiug Committee of
the Legialature, on the defalcation of the late
State Treaaurer, do not report. Humor la now
rife that tho Committee mean to a pin the mat
ter ont until the cloee of the preeent aceetaa,
and then let the whole matter go over to tho
next Legialatttre, In order that the BUek Re
publican party may not hate the dam nine record
to contend agalnat during the Preeideatial cam
paign. Wo tear that there ia too mach founda
tion for thia rumor. Beijing on the atrength
of it, a poor nincompoop .who eigne himaelf D.
ir. Brtggt, haa written to the Beatport Sentinel
denying the truth of our recent eutement that
Pec* had uaed thousand* of dollar* of tho
8tata'a money in the Congreeeional campaign
of 1858. Our authority for the atatement u re
liable ; and more—we n»*e good authority for
atating that Peck'a defalcation to the State,
will reach f100,000 inatead of 94,000, u report
ed by the Committee, and that hie ontaide
checka will amount to another *190,000, for
whieh the State ia not reeponeible.'
Tho aamo paper, • few days before the ap
pearance of the a bore paragraph, had etated
the amount contributed by Peek to the elec
tion of Somae, to have been §11,000. to the
election of French, $8000, and to the eleetioa
of Footer, f4000. Prom the eon Adent tone
in whieh theae atatementa were made,—be
ing declared to be Mreliable,M end pat forth
"on good authority,"—the Committee were
induced to beliere that, poaaibly, the editor
of the Union might poaaeaa information which
would convict Mr. Peck, not only of having
expended the publio money in the corrupt
manner alleged, bnt alao of teatifying falaely
touching theee important pointa. The Com
mittee, therefore, conceived it to be their du
ty to call on the editor of the Union, Marcel
lua P. Emery, Eeq., for hia information, and
they accordingly aummoned him to appear be
fore them on the 10th of February. The
aubatance of Mr. Kmery'a teatimony la aa fol
I Iowa, taken down aa he delivered it t
"All the knowledge I have of the matter, U
from rumor. I bare no personal knowledge.
Mp sources of information are auch aa 1 ahould
not be willing to report. Tbe matter about
1'eck'a using money for political purposes, waa
mere rumor. I have no definite information
about it, but it is an inference from faeta which
I have heard. No one who has ever communi
cated with me, has pretended to have personsl
knowledge, or sny definite information of the
nutter. I did not suppoae when I wrote the
article, that my informant had any personal
knoweledge or definite information about the
matter. I understood it waa report be had
heard. He gave me the source of his informa
tion. I respectfully decline to give the name of
my informant, or to give the name be gave to
me."
Aa Mr. Emery, In the face of thta aeries of
negationa and unqualified cotifeaaiona of ig
noranco touching the whole matter, atill
maintained that ho ahould feel himself Justt
tied in repeating the chargea contained In hie
article, the Committee thought it advisable to
requiro tho name* which bo had just declined
to give; for as theso gentleman, whoever
they might be, possessed sufficient knowledge
to convince Mr. Emery, tho Committee
thought it quite probable that they would
provo of material acrvice in ferreting out thia
matter. Accordingly the Committee voted
to redulre the names, and Mr. Emery not
wishing to givo them, and being anxious, as
he said, not to commit a "contempt," he a»k
ed an hour to consult counsel aa to his legal
rights and obligationa in tho premiaee. The
Committee at once granted him three hour*
and adjourned to auit his convenience. When
the Committee tfiet again, Mr. Emerv appear
ed, and while declaring that be did not be
lieve that be eould be legally compelled to
answer the question addressed to him, he yet
thought it expedient and prudent to do so,
and would therefore give the names under
protest. lie then informed the Cotntnitteo
that D. M. Howard, of Dangor, was his imme
diate informant, and that Howard's authority
was a letter which he hsd seen from Col.
Geo. W. Stanley, of Agusta. Mr. Emery
informed the CommittM that Howard bad no
more information than he had himself, but
that Col. Stanley, he presumed, had. Mr.
Emery further auggeeted that if the Commit
tee should call on Louis O. Cowan, Frederio
A. l'ike, Jas. 8. Pike.soms important inform
ation on the point involved would doubtleaa
be elicited.
Anxious to obtain all poeeible Information
the Committee at once resolved to summon Col.
Stanley before them, and that gentleman ap
, and gave the following testimony, per
" I have no knowledge that Mr. reck bu
•pent any money for political purposes since
his election' Do not know that ha has furniah
« I any money to any person for any auch pur
|H>ac. In my letter to Bangor, I oonveyed no
other information touching facta than auch m
Mr. Peck had himselfcoiumunicatedtome; and
that waa simply that Somea waa his debtor to
a certain amount. Peck did not state that
Sotoea hail uaed the money for political pur
iHisea. My conversation with Peck waa in the
tail at Bangor. IUto no knowledge of money
being contributed by Pock, directly or indirect
ly, in the Congrrssional elections of the first,
second or third district, in 1838. I hare heard,
can't remember from whom, that Peck had
sent 81,000 to Mr. Pike, for sixth district, but
have no personal knowledge of the matter."
Col. Stanley seemed to b« no little surprised
that he ahould havo been quoted aa authority
for the article in the Union. Ha stated that
his busineaa led him to write quit* frequently
to Bangor, but that In no letter bad he mad*
any more specific charge touching the point ia
question, than he had just recited to the Com
mittee.
1 ne commmcc ■uminuncu wun w. tu»H,
and F. A. Pike, to appear before then, and ad
dressed the proper question* to Jm. 8. Pike, by
letter, with the view of eliciting information
from them, on the point* concerning which \lr.
Emery was sure they would be tally advised.
Mr. Cowan stated that be did not know of
any money beln* contributed by either Peak
or £omes in the Congressional canvass of 18.
38— thai " Somes never gave, loaned, or sent
him a dollar." That the only money be ro
ceived during the whole canvass was |85 from
the County Committee In payment for printing
and other expenses, actually incurred, and the
bill of which ne exhibited. Somes corroborat
ed this statement, so far as he could, alleging
that Cowan did not reoeive a dollar from him.
Mr. Cowan stated that in the autumn of 1838,
at the State Pair, Peck bad loaned him $30,
aud held his note lor that amount, which he
considered himself bound to pay; and that at
other times Peck had loaned htm small sums,
making in all, from fl33to *130. These sums,
from some intimations from Mr. Peck, be bad
been M to regard as a gift la consideration of
the friendly relations between them, and ofths
misfortune which bad overtaken him by his
proiwrty being destroyed by Ire.* In answer
lo a question from one of the Committee, Mr.
Cowan Btated tbat be had notpald a single dol
lar on any mortgage sine* 1837. Pack's testi
mony agrees with Mr. Cowan'a on all theee
points
Fredcrie A. Pike appeared before the Com
mittee and testified that he did not know of any
money being contributed by D. D. Peck In tb«
Congressional election of 1830, or nay other
year. Mr. Pike's emphatic language conclud
ed thus:
" I want my disclaimer to sorer every poeri.
ble point. I never knew or heard of confab*,
tions from Peek, personal or political, direct
or indirect, In 1H50, or any other year.
James 8. Pike being absent from the Stats,
•It Is perhaps pre per Ibr as te say. that ear efles
wJ tounr d£»r.3byiresj. UmOS « Marek.
ssss
isisy$£rjz
SSS& SB gEgAa.:g ZJ&
SSXS2 ^Tfcu'wui explain the allnelseSf tS
Permittee te the firUlkOiw.