on the Clinton and Kalamazoo canal, under the charge of James B. Hunt, will be found to amount to $26,267 27.

Under this same Commissioner, the cost of engineering on the Saginaw canal, (document marked L,) in the year 1837, amounts to ten thousand nine hundred thirty-two dollars and seventy-eight cents, which, considering the distance surveyed, your committee conceive a very extravagant amount in one year.

Your committee now proceed to give the result of their investigation into the expenditures and other matters connected with the Southern railroad, under the supervision of Levi S. Humphrey, who received his appointment as acting Commissioner on the above road, on the 10th of May, 1837, and was re-appointed on the 9th of May, 1838.

Your committee will present the facts and statements as they appear, from the books and vouchers now in the office of the board of internal improvement, as well as from those in the office of the Auditor General, from the commencement of said Commissioner's operations up to the 21st day of February, 1839, showing a correct statement of all the expenditures up to said date, on the works under his direction.

In compliance with the request of your committee, Gen. Humphrey has furnished the following letter, with accompanying do cuments, marked A, B and C.

OFFICE OF THE BOARD OF INTERnal Improvement,

Detroit, April 6, 1839.

To T. P. Tucker, Esq., Chairman of the Committee of Inves

DEAR SIR

tigation.

I herewith enclose a statement of the amount of moneys received by me as agent of the board for the purchase of iron, and the manner in which it has been applied, as far as payments have been made.

Also a statement of my account as acting Commissioner from the date of my report, January 1st, 1839, up to the present

time.

Also copies of the resolutions of the board.

In comparing my accounts with the accounts of the Auditor General, there may be a variance on account of vouchers produced and paid by me, but not allowed by him.

Yours respectfully.

L. S. HUMPHREY.

(DOCUMENT A.)

To True P. Tucker, Esq., Chairman of the Committee of Investigation.

In pursuance with your request, I herewith present a statement of the amount of moneys. received by me as agent of the board, for the purpose of paying for iron purchased under a resolution of the legislature, by virtue of the several resolutions of the board herewith submitted: being in all $75,439 12 The above sums were placed to my credit in the Michigan state bank.

The bank has drawn a draft in favor of Hicks & Co., of New York, for

They have also drawn a draft in favor of J. H. Whitney, for

Both of which have been paid.

They have also drawn a draft in favor of Benedict and Corning, of Albany,

The balance due Hicks & Co. of $19,000, and the amount due Davis, Brooks & Co. for $15,103 12, Mr. Norton agreed to arrange in New York. I have been advised that they were not paid. I have since made an arrangement with Davis, Brooks & Co. according to their request, and obtained a draft on the Bank of the River Raisin, for

payable in New York at ninety days, which is satisfactory to them and made at their request.

I have paid Messrs. J. L. Whiting & Co., for transportation,

Which leaves in my hands,

$28,000 00

6,207 91

5,000 00

15,000 00

1,200 00 20,031 21

I have now in my hands the warrants of the Auditor General, for the sum of twenty thousand dollars, which might be applied on that account if it should not be settled by Mr. Norton.

(DOCUMENT B.)

Resolutions of the board:

"Resolved, That the Auditor General be directed to draw his warrant in favor of Levi S. Humphrey, agent of the board of internal improvement, to purchase railroad iron, the sum of twentyeight thousand dollars, to pay for railroad iron purchased for the state, by Hicks & Co. of New York."

Adopted January 9th, 1839.

YEAS-Mr. Burt, Mr. Mizner, Mr. Hunt, Mr. Robinson, Mr. Lothrop-5.

NAYS-0.

"Resolved, That the Auditor General be directed to draw his warrant in favor of L. S. Humphrey, agent of the board of commissioners, for the purchase of 100 miles of railroad iron, under a resolution of the legislature, passed 6th April, 1838, in sum of thirty-two thousand three hundred and twenty-eight dollars and nine cents, for the purpose of making advances on said iron and for the payment of freight."

Adopted January 14th, 1839.

YEAS-Mr. Humphrey, Mr. Mizner, Mr. Hunt, Mr. Robinson, Mr. Lothrop-5.

NAYS-0.

"Whereas there is still due Messrs. Hicks & Co., of New York, for iron, the sum of $19,000, to James H. Whitney, the sum of $6,207 91, for iron and charges thereon; to J. H. Whitney the sum of $3,864 96, for iron and charges thereon; to Davis, Brooks & Co., of New York, the sum of $15,103 12, for iron; to Edward Whalin, the sum of $3,260 13, for freight of iron; making in the whole the sum of $47,439 12, and for which an order on the Auditor General in favor of L. S. Humphrey, for $32 328 09 has been allowed by the board; leaving an unpaid balance of $15,111 03:

Therefore, Resolved, That the Auditor General be requested to draw his warrant in favor of L. S. Humphrey for the sum of fifteen thousand one hundred and eleven dollars and three cents, for the purpose of paying for iron, and transportation and charges thereon; purchased under a joint resolution of the legislature. Adopted February 12th, 1839.

YEAS-Mr. Burt, Mr. Lothrop, Mr. Hunt, Mr. Humphrey, Mr. Robinson-5.

NAYS-0.

Statement of account of Levi S. Humphrey, Acting Commissioner, from January 1st, 1839.

$4,957 25

Balance,

Vouchers in possession of L. S. Humphrey, for expenses of survey in Cass

county, not paid by Auditor General, $3,194 88 Less amount of pay roll, voucher number 14, which is twice credited,

1,079 54

$2,115 34

Vouchers in possession of L. S. Humphrey, for expenses of survey in Cass county, not paid by the Auditor General,

$1,805 57

$8,878 16

The $2,115 34, is credited the state in the report of L. S. Humphrey, Acting Commissioner, he having received up to December 31st, $175,000 00, instead of $177,115 34.

Your committee inay remark, that the latter document shows the amount of moneys received and expended by Mr. Humphrey since the date of his last report to the legislature, up to the 14th of March, 1839, being 21 days later than this investigation extends.

By reference to Gen. Humphrey's report to the board of internal improvement, up to the 1st of January, 1839; it appears that his expenditures on the southern railroad were, $248,685 23; and vouchers since that period, have been duly audited, to the amount of $47,981 12, which, added to the above, will make the total amount of his expenditures, up to the 21st day of February, 1839, equal to $296,666 35; whereas, the amount actually expended by him, to the 21st of February, 1839, as appears from the books and vouchers duly audited and deposited in the office of the board of internal improvement, and Auditor General's office, is only $273,467 50, which, substracted from the above sum of $296,666 35, which Gen. Humphrey states as his expenditure, leaves a difference in his statement of vouchers, up to January 1st, 1839, of $23,198 85; showing an error in his own statement and report to the president of the board, on the 1st of January, 1839, of this last sum, viz: $23,198 85.

From the above statement, your committee must come to the

conclusion that Gen. Humphrey intended to deceive the board of internal improvement, and through them the legislature, by his report, conveying to them the idea that he had expended this amount of $23,198 85, and had the vouchers on file to warrant the same; whereas, the facts of the case show a far different state of things, viz that this amount had never been audited, or even in existence, other than fictitiously, and should never have appeared in his report.

It will be seen by reference to document marked (A.) how far Gen. Humphrey acted in good faith, as agent of the board of internal improvement, and in whose hands $75,439 12, was placed, for the purpose of paying for iron, according to the resolutions of the board, (Doc. B.) One thing is certain, that a large portion of the money yet remains unpaid, as appears by his statement; and the other portion that he alleges to have been paid, no vouchers, as yet, appear to have been filed in the office of the board.

Allowing that $35,407 91 to have been paid, there still remains unpaid $40,031 21, which Gen. Humphrey states, (Doc. A,) was to have been paid by John Norton, jr., as per agreement, in New York.

This amount, it seems, has not been paid by Mr. Norton to these different individuals in New York, and it will be perceived that on receiving advice of its non-payment, Gen. Humphrey states he has made an arrangement with Davis, Brooks and Co. according to their request, and obtained a draft from the Bank of the River Raisin, for the sum of $15,000, payable in New York at ninety days. Allowing the deduction of this sum from the above amount of $40,031 21, it will leave in his hands $25,031 21 yet remaining unpaid.

Further, Gen. Humphrey states there is now in his hands, warrants of the Auditor General to the amount of $20,000, which might, he says, be applied on the iron account, should Mr. Norton fail to pay the same.

Your committee are at a loss to conceive how this sum of $20,000, audited by the Auditor General on the 14th of March, 1839, could in any wise apply on the iron account, for which the adequate sum of $75,439 12 was expressly provided.

If this twenty thousand dollars, or any part of it, makes a portion of the payments intended for iron, how can the amount of $75,439 12 be accounted for.

Your committee are given to understand that this twenty thousand dollars was expressly intended for payments due on the road, and for which vouchers to that amount have been audited on the very day the said twenty thousand dollars was obtained.

For a particular explanation of the amounts of money expended by Gen. Humphrey on the Southern railroad, your com