Defalcation Details

Don't you LOVE that word, defalcation? Several months ago I spent a few whole days (I do mean whole) trying to find more details about Sanford and his defalcation at the Genesee Valley Canal. I came up blank time & again. But today, viola! The web is growing...

Here's the transcription for the part of the article that involves Sanford.

Northern Journal

Lowville

Thursday, March 18, 1847.

ASTOUNDING CANAL FRAUDS

The Albany Evening Journal which reached us on the 19th came freighted with an astonishing development of gigantic frauds on the canals of our State, committed directly by or through the conviviance of the chosen functionaries of that party which has for several years stood aghast with horror at the thought that the Whigs were about to involve the State in a 40,000,000 debt. For years it has puzzled us to tell how the Brie enlargement and lateral canals, which were originally estimated to cost some $15,000.000 were reported at in a fair way to cost more than double that sum. The mystery is now unraveled by the unanimous report of a select committee appointed by the last Assembly, who have been pursuing their investigations in the recess, and have just made their report. We ask the attention of every citizen to the astounding facts therein developed of which the following summary has been compiled by the Evening Journal.

The select committee appointed by the last Assembly to investigate the fraud; in the expenditures on the canals, have presented their report to the Legislature. It is a very lengthy document, signed by all of the committee.

The committee state that their examinations have been made less with reference to the extent than to the variety and character of the frauds committed with the view of enabling the Legislature or canal board to adopt more effective precautionary measures to prevent like frauds in the future.

Their investigation of the Charges against the commissioner occupies a chapter of the report, presenting the facts without expressing any decided opinion. We shall not attempt to present any synopsis of this portion of the report.

They commenced their investigation upon the Genesee Valley Canal. They state that Sanford A. Hooper, was appointed the superintendent of that canal in the spring of 1842 and continued until he resigned on the 13th of March 1846 and during all this time Orrin H. Reynolds was his clerk; that when Hooper resigned, Reynolds was appointed to fill his place and Hooper became Reynold’s foreman. That soon after Hooper was appointed superintendent, as early as July 1842, he and Reynolds entered upon the practice of a regular system of peculation, by the use of false and forged vouchers; that this system was extensively and almost generally practiced by them until the removal of Reynolds by the Canal board in July 1845; that their practice was to go along the Canal the first of every month, pay the men, obtain their signatures to the printed form of receipts, with the time and amount left blank, and receive the check-rolls of the foreman; then return to the office; fill up the receipts with such amounts as they pleased, and make new check rolls to correspond. These blank receipts in several instances, taken for twenty five cents, were filled up for more dollars! In other instances, two check rolls previously sworn to, were interlined and added a list of days and the amount increased accordingly.

Forged receipts for materials of nearly every description were presented and paid; in one instance for 10,000 feet of lumber for a dock at Mount Marris, and this after the Commissioner had directed it to be constructed of lumber then on hand belonging to the State and while the engineer at Mount Morris was ?? for $3 and $3 ?? like lumber, for which the year before the commissioner had paid contractors from $18 to $8 per thousand.

But the frauds of the superintendent, as compared with those committed in the construction of the canal are hardly worth noticing—much the greater portion of the report is devoted to a description of the frauds in the construction and enlargement of the canals…