"For the expenses of the commission the sum of $30,000 was appropriated by the last Legislature. The expenses will exceed this sum about $5000, for which we respectfully ask an appropriation. For greater convenience in presenting the testimony taken, we had it printed at a cost of over $4000. This, together with the legal expenses growing out of the proceedings to establish the authority of the commission to compel the production of books and papers and the witnesses to testify, occasioned this deficiency. "JOHN BIGELOW, "D. MAGONE, JR., "A. E. ORR, "JOHN D. VAN BUREN, JR. "ALBANY, _February 14, 1876_." "EXHIBIT D. "The commission to investigate the affairs of the canals of the State present to the honorable commissioners of the canal fund: "That Hon. Francis S. Thayer, Auditor of the Canal Department, has violated his duty as such auditor 'in respect to the public moneys in his charge and subject to his draft': "_First._--In that, on the 21st day of July, 1874, he procured the passage of a resolution by the commissioners of the canal fund whereby $200,000 of the sinking fund was directed to be invested in the taxes to be levied pursuant to chapter 462 of the laws of 1874; and after procuring the passage of such resolution did set apart said sum in violation of the Constitution. That the auditor's motive was to benefit George D. Lord. That in carrying out such intent the auditor paid $120,497.02 of said sum of $200,000, so set apart, within two days thereafter to Thad. C. Davis, as the agent of George D. Lord. That this was a violation of the Constitution, see article seven, sections two and thirteen. That the auditor is responsible for this misapplication of money, see his testimony, pages 2544, 2546. "_Second._--In that, on or about the 1st day of December, 1874, there being money subject to the warrant of the auditor for that purpose, the said auditor refused payment to S. R. Wells, administrator, of an award in his favor for $5207.50 on the false pretence that he had no funds, and immediately after such refusal negotiated the purchase, and did purchase, the said award at about $200 less than it called for of principal and interest, and on the 9th day of February, 1875, audited the said claim at the sum of $5454.92, and drew his warrant therefor in favor of George A. Stone, as assignee. "George A. Stone had no interest in the transaction, and the auditor testifies that it was purchased for his brother-in-law, E. J. McKie. As to the evidence of this charge, see testimony of S. R. Wells, page 37 (folio 513 to folio 517); testimony of D. Willers, Jr., page 42 (folios 571 and 572); testimony of the auditor, pages 2507-2511; that the profit went to the benefit of the auditor, see pages 2595.