New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-26
TO THE TAXPAYERS OF THE CITY or
NETWORK.

The undersigned having been frequently called upon
by citizens and taxpayers to state why 1t is that the
investigation into the coruptiOns of the Finance De-
partment commenced by him, has been discontinued,
feels it bis duty to state to the public at large, the
causes which have led to dseOntnuauce of the work.
The examination which was made by the Committee
Of the late Board extended far as the appro-
priatiop would allow; and the result Of their laborS
was set forth in lengthy report presented to the
Board of Connclmen, October %, 1887.
That report stated the following facts: That the
books of the Finance Department were full of errors
aud delnqucnces. That the amount of stocks due by
the city and the amount of the bonds issued as shown
by the books, differed largely from the statements
publshed by the Controller That large sums,
amounting in the aggregate to several millions of
dollars were due the city by defaulting officers and
from other sources. That the Department OF Arrears
in the Controllers Office was in adisgracefu conditions
that large deficiencies and dealcations were revealed
zhere and that returns of collecting officers were never
audited nor examined after they reached the office OF
the Controller. These announcements served only to
excite in the public mind at the time some little aston
ishment that such thingsi existed, and publication
which appeared at the tne emanatlng IRON the gem
eral bookkeeper in the Finance Department, pro-
nOuncing the report false and garbed statement,
created the minds of many, both in and out OF the
been misrepresented Mr.. Flagg himself refused to
pay for the services of the accountant employed by
The Committee, and his employees eIered their iniiu-
ence first TO crush the report and secondly to defeat
all propositions for the continuance OF the lnvestga-
1iOn. II was, however, continued by me at an ex-
peDse OF nearly $500 and now for further proof OF
all its statements your attention is invited TO the tes-
timony Of Mr. Flagg, when summoned before Com
mtee Of the new Board:
liam Controller Of the City and County Of New York IkYow
thst sstrsl errors in money matters exist in my oce mean
not Office where money deposited
in the OF the city, our business simply relates to keep
iug accounts think has failed TO perform those duties
~ my office tina, came under his charge"
Had that investigation been continued, Mr.. Flag
and the public at large would not only have known
who il that failed to perform those duties but
he would have known the true amount OF all those er-
which he said he knew to exist. II Mr. Flagg
knew that errors existed in money matters In his De
partment why has he kept it concealed so long, and
why did lie refuse to pay the accountant who exposed
all these errors and then, when the examination was
dropped, turn around and employ friend of his own
20 do what the accountant employed by the Commit
tee was successfully doing If he had no right to
pay the fs QUE he has no right to pay the second.
Hear what he says in his evidence:
have got experienced with Nh Csdy Of my
clerks examine the bocks and papers and discover posi-
De how and where the discrepancy between the accounts exists
Shere money brought into payments hope lind
Thing thai may throw light the mystery think elicit
10 lGof o'erhe books /. difficult say way the frauds
1sW PPc'Iheoi disoVered in the Fityseyen street
contract where ahsud OF $4,000 existed"
MIR; fiass oa mol discover the fraud of $1,000 re-
ferred to. IL was discovered by the accountant eil
ployed By me, and reported to Mr. Fln0g The over
payment OF 5000 to Mr.. Erben on the Cansl.street
opening reported by the Street Commissioner Mr. ID
H. Copoyer was also discovered by this accountant
and Mr. Elagg is responsible not only for this error
but also the over payment To sundry parties of about
a. OOo beside Mr.. Erben's, on the same work.
Again Mr.. Flagg says:
a." Smith has failed 10 act 10 his trust II some time
since discovered this could not exactly what time, but
abou, Che time the failure OF the Bowcy Bank the
failure Of the Bovery enabled 10 discover the fraud
found deposited there for large amounts AUG " o.
Saith responsible for them he used 70 ADJUST the N
Once person who adjusts the accounts couIo
for different works through 'ne
thsu for any work paid again suspect hat ' w.
the money passed my Office several OF the vouchers
the Of Smith not on the proper
doyer where they cannot state whether otni'e
might hsve made mistakes Intentionally or mott eoad n"' HHu
zee ooehers o. the time rDadc my report -
Why does not Mr.. Flagg mention here wherein anu
what DIR. smith was delinquent in Let the puoiiS1
n9ders,sod "The person who adjusts the accounts
i.s mr. smith was a clerk in the Bureau Oh arrears
ti']O salary, taken by Mr.. Flagg and put ID inc
lbs responsible position in the whole Finance De
PSuneo,-the Auditor Of the trust accounts. III mr..
Ilass heeaea person in that important position,
soolIu nc NOT have applied to the Common Councli
lo' an ezra Clerk, and not taken him from the Depart
ent OF arrears, which is in such deplorabe cond-
Son particularly when an Auditor is already provided
~ aw-bir Ilmpson who now fills il An ex-Msyor
o. hew-iork informed the undersigned that he told
Mr. Elngg some time ago Of the delnoueucies of his
iavorte, Mr.. Smith, Again Mr.. Flapg says:
II Cd act sYpfeaend anything wrong Uun the iinc the