New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-02-10
TIE ALLEGED DEFALCATIONS IN TIE CON
TROLLERS OFFICE.

Controller was commenced yesterday afternoon in the
Cont Of Sessions room before Recorder Barnard Ex.
Judge Whiting, and Assistant District-Attorney
Sedewck. appeared on the part Of the People and
John Graham and Nessrs S;llwell ana Swan for the
accused.
The following ia the affidavit. of Controller Flagg,
upon which the warrant of arrest was issued and
the present investigation was instituted.
,roe OF the City OF NewioEk 6einG dy w1rn don sspoe
,nd saw that shout he 7th day OF Aut l the asyor
Municipal Corporation entered into contract in writing with
coan sS. wsJ5'sy e. maid sS. n '1 r r to ps ave
ninth from the sixth avenue 70 The hiehfh avenue
according certain specifications referred 10 IN me SAID con
tract.
That the Corporation agreed pay for the said work TWEEN
per square for paving sud deponen verify believes DO
other for any works, under The aid contract was Hen
rhs as the maxim; q the :sd c2n:5a as Til. d"Poses
has been informed and believes ths said c3utac wa: ASSIGNED 20
err ce on or about the mn DAY Noyem1r 1856 that said
berome due thereon 10 the Bowery Bank which assignment
was 6led in sid Street 0hce notice thereof
That aid Bowey Bank aftcrsHrd by its receiver deponeut
formed and believes easgned or released the said con'r~t
Charles Mcneil Jacob n Oakley and W. A. Do0ey Deputy
Commissioner Of Taxes and Assessment TIE amour,
be maid Tor work under said contract % be the sum Il
@ md Collecting smoun,inet 40 6s was Assessed
p pSS.id to be benefited by the aid work
That aid assessment confirmed by the said Common Coun-
ell and was approved BY the Mayor the 18th day u October
last aud Joseph Taylor appointed to collect the s'ne
That by law In where such assessments exceed %ON
the aid CORPORATION Authorized the contractor or 20 IL
bonds for the payment thereof IN anclp o zoe couee
don thereof from the property owners upon whom uch
ihS one James B. smith clerk in .he Finance Department Of
making Up the Of with the Corporation on
about the d November last inside up the amGun due 20
sl2s3 TO- instead OF the true sum- S TO- and handed the
sane dePoneut who directed the bond tletA 20 sA I
bond for that amount ard 80 to pay IN same 70 ne '
Ftzra,rick that making ont bonds AZ the once my are
cash by check upon tho Chamberlain Ih accord9sy tnree
bonds nude out bearing date The 90 day o. T
paid by upon the Chamberlain payable to the
order Vi the -sid John Fitzpatrick 80 -, a.. ooo
and - 800 aud were duly executed by the proper ocrf'
T egward tn. aid John Fitzpatrick assigned said bond u
70 Cse, Deyn appears by ndormcnt on the SAID bond
oren.t the laid warrant for the difference Ihh me ad
bond No II ateIwsd i9ned to ia"ey ana oIsdor9
the Charles Devn aud by them as'gud TO jacob hoo
ertson BIO surrendered and took out bond there
for D,ponen saith he il ignorant 20 the other Two bonds
whether by the laid Fitzpatrick passed away BY hn TO
eys The said Charles Dev interested in the said contract
Opponent further saih-Tha recently discovered by an
OF his books and those kept by The said smith, ana
comparing the ad Smith with tue original lssessel
spears that the original entry was properly made aa 81 on
right amount IS the deP3nent believe ana tna I e M
BIT how this depohent canno, state with any absolute GER
Deponeut in all ,uc the bond or bonds are
made oet tor the hole sum- or ~ .llh oSss as M d F
pssl Q. bis a ssapsa r %HsH Se s
70 b. in different bonds deponent cannot state ,
Dsponent saith that the said cop9n BY the sad sng na
cheated aud deauded out of $1,000 represented by the SAD
bonds Nos. u, u and %. ,,p,...
rick con pred with the laid Smith cheat and deand the said
Corporation the said sum Of the den S
.. cohsct spun psd in aforesaid is greet
the Corporstion would be defrauded thu, amount;
Therefore pray. process against the sa sun ana
Fitzpatrick, aud that they may De ses' WIN sc 20
Sworn to before me this 18th Jan. 1853
A. s. C.DY Commissioner OF Deeds.
Arsimus S. Cady being called and SWORD, deposed as
follows-I am q clerk to the Controller l know
James b. Smith; he was employed as clerk In the
Controllers office for two years pre- NOUS to last De-
cember; he had charge of assessment matters; the
adjustment of claims for work done on assess nent
contracts of the particular duties of his office;
contracts done by the different departments, the Street
Commissioner Department, the Croton Aqueduct De-
partment, and City Inspectors Department; the re-
QUESTION Of those departments came TO the Con-
trollers office, and payments made upon Them
when the acquisitions came from the different depart
mens, warrants were issued for the amounts until the
last Of December, Mr. Smith continued TO be clerk
to the Controller ! do not know, Of my own knowl-
edge, whether he left of his own accord, or dis
missed from his situation; do not know Mr. John
Fitzpatrick; have got book with me formerly kept
by MIR. Smith producing the book. This is ledger
kept by him; there other books kept by him in
the Controllers office.
Question by Mr.. Whiting-In relation to the pay
mebt of money TO }. Fitzpatrick for paving 18th
street there any original entry the handwriting of
Mr. Smith A. have a receipt-book and check
book showing the payments made for the work done
in Forty ninth street. onturnng 10 the ledger account,
page l04, find entry, the audit appears TO be In
the handwriting of Mr.. Smith; the book was kept by
him; the title is given as the Fory-nDth street,
4" Sixth and Eighth avenues Paving Contract.
Sharp contractor" according 10 the figures here,
the contract was, 1888 10; nsPection-J. Kelso,
$l35 surveying-J. {. Dodge, 81 40 81 advertising,
go; assessing i95 a; collection, sSl S-footing mp
Sl3212 10; j. X. Taylor collector; confirmed Oct. 30,
1857 this is placed the debit side of the account
there is entry on the credit side l have state
DeDt upon which the payment was made; 1t
all in the handwriting OF Mr.. Smith. Upon the pre-
senaton of these statements, payments are made by
the issue Of bonds.
Mr. Cady here read certificate setting forth that
the contract assigned by c. Sharp to John titz-
patrcktwho assigned it TO the Bowery Bank that
release 10 the amount Of sl2 800 had been effected by
per cent bonds, leaving balance OF 20 IT, ms
dated Nov. %, 1857, and signed by D; b. oihth;
The payment is not posted in the ledger only READ
that portion of the memorandum which lie IN the hand-
writing Of Mr.. Smith. have no personal Knowledge
OF the issue Of the bonds. ! have in my possession
the original papers or Lists of assessments reIsuhgto
Forty.ninth street. The assessment list under TINS
contract amounts to - S2j H. ana tne eApehsesoi
surveying GIG 81.
Q. Have you examined the entry for the purpose OF
determining whether the original was $2,S&5 III or
$l2 s23-i. e. whether the figure WAS put before the
figure when the original entry was made, or after,
ward A. The figure / appears TO be darker and
different from the other figures if made at another
lime and with different ink.
q. When did you make that discovery a. l
think it was in the month of January after Mr. oui'h
had left.
Q. Do you know whether he was requested 70 come
70 The ofcel A. A letter was written 10 him TO that
effect; it was sent from the office ey Mr., uptoa; i
find a receipt in the receIptbook OF the payment;
il signed nv John Fitzpatrick for John Brengan.
Cro.s-exsmined by Mr.. Graham z. How long
have Won been in the Controllers Office 7, A. Five