New-York daily tribune., 1858-02-08
TIE FRAUDS IN THE CONTROLLER
OEEfCE

E
The Committee Of the Board @: Couucilmsn, Of
which Mr.. Genet is chairman, resumed their invest
cation Of the frauds in the Controllers Office on Set,
uIday.
Mr.. FLsGS again appeared before the Committee,
ard deposed substantially as follows:
With A view of seeing whether the fraud of slc oOO
had been repeated, have hsd Mr.. Cady anl assist.
ants look over the abstract le ger and IN pare ba,
with the recoros OF the assessors the clerks md ha,
with the single exception, as stated as week there
has been no other slts alton IN the abstract Of con.
tracts and therefore fraud 10 that direction. Our
next step was 70 ascertain iron the Docks whether
the ps,nebts on the contracts agreed. We examined
400 Oi,ems; found them comparatively regular, but
not sufficiently so. There was nothing Srvng dscOv'
cred in the confirmed assessments; but IN other cases
there looks as if there were frauds After examining
all the papers, we endcavored 70 ma wnetaSr .nI
forms ard checks issued correspond nh those posted
on the ledger: but Mr. Smitn le the office before
the books were closed we had considerable d1thcuty'
There another class OF accounts where the cootracs
are lot finished but s.e runnir for threc iour and
five years on which We advance IN monthly pay
nents 20 per cent OF the work purpOruDg 10 oe done
by the ordnance Of 1854 the Controller Is 10 pay the
advance 20 pei cent only order from the head ot
the Street Department. but they keep no proper
books there 70 enable Ia keep our interest account
In fact we might maSe double payments. Having
allied TO get them 10 keep the proper oks, directed
the Auditor (as stated the last day 10 open accounts
with every contrac. on which the 20 per cent was
peyable. Not finding il doDs after delay OF six
n, n,hs, | directed Mr.. Smith % do u. Before my
tire those advances were paid on reqa1suan nom
the Street Commissioner
Mr.FLAGG then proceeded ~ point out number OF
fraudulent transactions which he had discovered IN
Tie certificates of surveyors "a 10 the amount OF work
done upon which the contractors could draw ~ per
cent adv ance 1t Tor the purpose OF discovering
WI eth ef the surveyors had certified truly As Ia tae
omoun, of work done OF contracts that he had en-
ployed Nj. Even and others 10 resuryey the wOfk'
The result Of the investigation IS Contained IN the an
nexed mem norepda furnished 70 the Committee oy MI
Fl6gg: ,., r.,L
Reg dating Fjty-seren.a Hr'et, from THIRD to fg%
A contract va, made by James Furcy, then Street
Commissioner with John Quinn, July -, 1914; ior
regulating Ffyseventh street, .iFom lh'ru 10 f"'A
avelue. ,t
Three payments were made on this contract to John
Quinn and the Bowery Bank, amounting to So
5SS ~ after which thu job was assumed oy Iharles
Devlin a. agent Of the BoweTy Bang, ana payments
were subsequently mace TO the bank "a fOlto -; - ..
Nov Ia ls or .he = ouision OF Joseph Tyor. s39 s.!
March IS 1857 the reqnison o; Charles Turner Of, .,
On June % 1887, u re luiston was made by Chari1'
Turner Deputy Street Commissioner, accompanied Oy
a certificate OF the surveyor, Peter H. DIeyer, MN
four dgys after tie appointment OF Charles DcVlh a.
Street Comm. .siontr and IL the first relulslton ior
wall which was hot named in the contract orlSlhaly
furnished the Finance Department. The totsi Hnoun'
of work included in this requisitlon was S'"",' lu-
cludipg the wall; 20 per cent OF this gum would Do
s6 10 80. For the payment of this requiston and
r. 0uiston for work ON FfysecOnd street bonds we're
Issued for sl5 500 ard warrant for SloS Ia % the
Bowery Bank-Sl5,t6S ii being the amount paid Oh
the two jobs. o.. - !,
On the l9th Of August, 1857, reqisition was made
by Charles Turner. Deputy Street Commissioner &C
ctmpapcd by a certificate OF Peter H. Dieyer, sur
veyor both Of which contain wall, ana upon the pre-
s.ntation Of this Daniel Even was requested 10 exam
inc all the wo,k done under the contract ana report
writing report mad" by hi" srD y" ,h q,
1857 and by this report the amount OF work 10 that
no hnlp
TED by Mr.. Even was: ,ou0
100 Oo6 cubic feet, which at i2 ENV
u.,,n. ,o,. .syl g7S
IL we take Mr.. Ewen's measurement of the quanti-
ties Of work done excluding the wall, ana compare
them with the quantities ~ cerned py Mr' Dfeyer,
the result Is as follows:
Earhdlins yd' Rock ,yd'
Nh DieycI's estimate. ..il5olO III
Mr.. Ew.n's estimate. o'S' WV
Fxc.s. Of preyer over Fwen.... d $40 797
Deductng 80 per ceit from the whole amount OF
work certified to by Nj. Dreyer, in seven success
siye certificates, the balance Remaining oi ~ Per
cent varies only a few hundred dollars from the
whole amount of the work rs measured by MIR. Even,
which shows the system OF adding 80 per cent to the
quantity of work actual done, so ~ to secure Pay
for the wbOe amount of work done, and IN tuis
way defraudiDg the treasury OF that amount. :.
Mr.. FLAGG-This slope or retaining wall was not 10
the contract but was subsequently added, Without
authority.
Mr.. CRoss-Let us understand. You thought you
were paying only 70 per cent whereas you were Psy-
ipg 100 A. That's il.
Q. And the city has not lost anything. A. Not so
far.
Q. Only on the intere-tl A. Yes.
Q. Was this wall paid for A. $2,OOo were pad on
il. Bonds for all 900 were issued for which we find
no application. ,.
are located here.
bonds Well, Mr.. Smith ought to have given an ac
count Of them.
@. Were they entitled TO these bonds on this job
A. 1beycaim they were.
q. Without the wall were they A. No.
Rcguloking Fky-seeond street from the fonTM are"~e
t0 tie East R,rer
On the 29th of October, 1886, contract was made
by Joseph ). Taylor, then Street Comns'lon.r, tor
regulating Fiy.second street from Fourth avenue TO
East River, with Charles Deyin, and payments have
been made "a follows: oonu
Oct So 1886 the reqastion 4 jos g. TsyIor""s2o 10
July 81, lt57, the requs@n OF Charles Tuner 100 M
. H. 's' 6.t .Su"n fSr wall and bears d.;s
Juue 49, 1857 hr.e day. after Dey!in wa. .ppantsd
,Tasacsd into r.Soisition fr payment on Fiysey.uth
street. The vel il included III the cerih 'se oi ~
yidal Surveyor, a, well IS in the requinison oi NJ
Sept H. lss7 on the req.ition Of C. Turner, Deputy ~
"s,,on Ssst oi C Tern:i .ccmpsuitd BY Bur
yoT. csitse,ic M yids 5.sas d.i, Ih ssEh ~ ] sS.
ment apps ars to have been made b. the books in tho
a es,,ses,s Of Mr. yld.l the Surveyor. dated Nov.
e. no. De. been sn o,d noun,ins TO- 1888, Ia
In the month Of October Daniel Even Wa re2aesea
by me 70 examine and report all the woIk o,sr ~
wider this contract; IL sppears by his epl, ,.s' NJ
D,viin th. contractor, would be enued |" 'ns !. sss N
Where's be haa teen paid upon the requisnohy OF JOS
g. Tayor street Commissioner, and his Depuy
ChaI.. Torner seoon'paD'e Oy -. 1887 %
Show ins ar Of payment ..'.''''..'. et1''
The above does not include the last certheaoo VI
Mr., Vidal. the Surveyor, Nov 2o 1857, amounting 70