The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-07

Meeting OF the Investigating Commitfoe-Mr.
Elagg's Testimony tissuca--More FRAUDS
Developed, &c. &c.

Developed, &C., DC.
The Committee appointed by the Board of Ccun-
cilmen to investigate the alegedfra in the Comp
troers office held their third meeting yesterday in
the City Library Mr. Genet, the cairman, presiding
Mr. Flagg was again called TO the stand, and pro-
ceeded wish his testimony relative to the defscations
laid 30 the charge of his late protege, James b.
Smith, and for which that gentleman is now held
for examination lin the CRIMINAL court, on affidavit
made by Mr.. Flagg himself.
Mr.. Flagg examined
Mr. Genet-Mr. Fiagg, can you tef us anything
further In relation to the charges of fraud in your
department. which were under nosice at the last
meeting? Ave have been examining our books
with reference to the frauds the city treasury in
regard to payments confirmed by the Common Coun-
oil with view of seeing whether they were correct
Mr.. Cady took the sedger where the accounts are
made from the assessment rolls as certified by the
Common Council and to test Them we got the re-
eordsasept by the essessorthe official records after
wards confirn,ea-on comparing them with the
ledger we found the contracts to number l44, and
we found them all, with the exception Of this one,
truly transcribed. Our next step was to ascertain
from the books whether the payments Oh the con-
tracts agreed. We examined 40 items; found
them comparatively regular but not sufficiently
30. There wxs nothing wrong discovered in the
confirmed assessments; but in other cases there looks
as il there wsre frauds After examining all the
and checks issued correspond with those posted on
the ledger but NJ Smith left the Office before the
books were closed we had considerable difficulty.
There is another class of accounts where the con-
tracts not finished, but are running on for three
four and five years, which NE advance in monthly
payments, 70 per cent on tire work purportng to he
done; by the ordinance of 1855 the Comptroller is to
pay the advance of 20 per cent only on order from
the head Of the Street Department; but they keep
no proper looks there to enable US to keep our in
terest account. In fact we might make double pay
ments. faving failed TO get them to keep the pro
per books, directed the Auditor Gas | stated the
last day. 10 open accounts with every contract on
which the 10 per cent was payable. Not finding it
donei after delay of six months, directed Mr..
Smith to do it. Before my time those advances
were paG on requisition from the Street Couiruis-
sioner.
Mr. Fhgg then proceeded to relate certain frauds
dscover in theicontracf for regulating Fifty seventh
street from Third to Fifth avenue Of which ne said
he had made memoranda; but his testimony was
80 rambling. SO full Of parenthesis, and altogether
unintehgible to the committee that he was request
ed TO refer 10 his memoranda. out of which the
committee were enabled TO dgelt the following ao-
count of the affair."
A contract was made by James Furey, July 90,
1854 Nlen Street Commissioner for regulating Fif-
tyseventh street from Third TO Fifth avenue, with
John Quinn.
Three payments were made on this contract to John
Quinn and the BOwery Bank, amounting to sl7,73s
22: after which the Job WAS assumed by Charles
Devlin as agent of the Bcwery Bank, and payments
were subsequently made 70 the bank as follows:-
On the requisiton of Joseph S. Taylor, 81 s2s 81.
On the requistion OF Charles Turner, Deputy
Street Commissioner, q, OH 2s.
rcquisitior was made by Charles Turner, Deputy
Street Commissioner, accompanied by certificate
of the Surveyor Peter H. Dryer, and four days after
the appointment Of Charles Deviin Street Com
missioner and is the frst requistion for wall which
was not named in the contract "a originally furnish
ed the Finance Department. the total amount of
work included in this requisition, was $96S5,
ne,uSng the wall: seventy per cent OF this sum
would be t6,779 so. For the payment Of this
requiHition and a requsition for work on Fifty
second street. bonds were issued for $500, and
warrant for sI6s IL 70 tho Bowery Rank--$l5 66s Ia
being the amount paid on the two jcbs.
On the 10th Of Angus, 1857, requisition was
made b. Charles Turner, Deputy Street Commis-
sioner, accompanied by certificate Of Peter II.
Dreytr Surveyor both Of which contain wall; and
upon the presentation Of this, Daniel Even
qnested 20 examine all the work done under the
by hm Nov. Is, 1857; and by this report the
amour. Of work to that date was 1926 The
whole amoant Of wall estimated by Mr.. Even was
100000 cubic feet, which at IL cents, is sls, 200
making total OF $5l ,s75.
II we take Mr. Even measurement of the quanti-
ties Of work done, excluding the wall, and compare
them with the quantities certified by Mr.. Dreyer,
the resc:t is as fonows:--
Mr. Dreyer's estimate, cubic ,yds.. 1900 A,249
Mr.. Ewtas. 6s,5O0 $500
Excess Of Dreyer over Even. $3.50 7.947
Deducting 30 per cent from the whole amount OF
work oerthed 10 by MIR. Dreyer, in seven successive
certificates, the balance remaining OF 40 per cent
yaries only few hundred dollars from the whole
amount Of the work mensurcd by Mr.. Even,
which shows the system of adding 80 per cent TO the
quantity the work actiny done, NO IA ~ secure
payment for the whole amount Of work done and In
this way defrsuding the Treasury TO that amount.
Mr.. Cross--Let us understand: Yon thought you
were paying only 10 per cent, whereas you were
paying 1907 A. that's It.
Q. And thc city has no. Lost srything' A. Not
~ IA
o. Only ON the INTEREST," A Yea
0. Was this uall paid for? A. 81 900 were paid
on Il. BondsGor sli 900 were issued, for which we
Q. Can't you account for tbeml A. Not unless
they are lccsted here.
q. on whos does the fault I've Cor issuing these
bondsf a. Well, Mr.. Smith ought 20 have given sn
Q. Were they entitled to these bsnss on this jOt'
"A. They claim they were.
Q. Without the wall were they7 A. No
Y. Well. with III A. IL seems they we're, from
Che measurements of the wall ] take from Ewens
estimate.
Mr.. Cross-wss Mr. Smith IN your Office during
business hoursf A. As general thing he was; he
was sometimes out.
q. Was he out nuds riding or yschtiRgf A. Lat
terly he was not
case Of which Mr.. Caay has made memoranSums.
Or the 2sth Of October 1856, coatrsct was
madc by Joseph s. Taylor, then Street Cemmis-
sionet. FOR regulating fiftyeecond street. Fourth
ANenu' 70 Fsrt fNcEs ~ita tudfits DtNhn, Aul pay
menss have been made ~ folews:-
On the requisiton Of Joseph 8. Taylor. .. 500
DO. do. do. ....... 1y55t
On thefequisiton Of Chasles Turner, Deputy
Stree. Commissioner. r..................... 1,12s
This ia TIE first requsition for wall and bears date
June 10, 1857, three days after Charles Devlin was
appointed Street Commissioner; at the same time
that wall ras introduced into q requistion for pay
ment on Fiftyseventh street. The wall Ia included
in the certificate OF r. p. Vidal Surveyor az well a.
in the reqnistion Of Mr. Turner. On the requsition
of G. Turner, Deputy Street Commissioner, was paid
.4e,Tl5. rayuisition Of c. Turner, accompanied by
the Surveyors certificate, Mr.. Vidal, bearing date
Sar,t H. was presented, amounting TO 1886, upon
whch no payment appears 10 have been made, by
the books In the Finance Department.
A certificate Of Mr.. Vidal, the Surveyor, dated
Nov ~, 1857, hes been presented, upon which no
payment appears TO have been made, amounting to
&loR9l IL.