New-York tribune., 1867-10-15
CITY Arrsrs-rnr cnAMRrHLAINsIIIr.
CITIZENS ASSOCIATION OF NEW YORK, }
No. si3 BROADWAY, Oct. Il. 1901.
Ner York, oct a. 1861

CITY ABUSEs-THE CHAMBEELAINSIIGP.
CGrizrNs' ASSOCIATION OF NEw-YoRR.l
No. si3 BROADWAY, Oct. Il, 1867.
PETER H. swErNY csq.. CHg Chamberlain. and County
| Treasurer ofHc CiiB and C0'p'ty Of Act-ioTG:
DEAR SIR: The Citizens Association respect
! fully calls your attention TO the following:
BY section II OF the Charter Of the City Of NewYork
bureau is created in the Department OF Finance for the
reception Of all moneys paid into the treasury OF the city,
and the payment Of all moneys teefofo on the war
rants drawn by the Controller and contersgned by the
Mayor and Clerk of the Council =" aud is fur
ther provided that the chief Ioicer thereof shall be
called the Chamberlain Of the City Of New York"
BY Of the Act Of 1857 relating to the Board of
Supervisors of this County, II s provided that the Fl
nance Department OF the Mayor, Aldermen. and Com
monaty OF the City Of NewYork and Us officers shall
have the like powers and perform the Ike duties IN re
gard OF said Board they possess
in regard 10 the OF the said Mayor Alder
men. and Commonalty" You the city Chamber lain.
and by virtue Of such Office County Treasurer also
Your duties a. such officer consist receiving the
moneys paid into the Treasury OF the City and County
and in disbursng the upon the Controller. war
rants: but IN fact these duties limited opening
account with the broadway Bank where You deposit
the pubc money The bank keeps the accounts and the
City and County warrants drawn upon you are nothing
more nor less than checks upon your accounts In the
In the opinion Of this Association these duties by
means Ia the so6 Tie salary Of the Cy
Chamberlain $1,000 You were appointed city
Chamberlain the early part OF the present year The
cry Tax Levy OF lsG, also allows you Chamberlain
The Association submits that sncn salary was ample
aud should have been satisfactory 10 youre and " can
not but regret that had Inserted 10 the County Tax
Levy law Of 1867 provision giving the County Treasurer
salary equal 10 that OF the city Chamberlain namely.
salary Of SO0oo II should be stated tht ihis provision
Inserted into the County Tax Levy law during the
Last hours o The session ana was passed ccrany m te
Senate with no actual knowledge That tn tF 'hanhef
lain and County Treasurer were one and the same nd
Nor is this All the city Chamberlain received some
s20o annually for paying over the money "f rue STATE
and also annua allowance OF $1,000 ~ one Oi ~, COM
uissoners OF the Sinking fund II ~ iesr' tnlt .uk
gcstcd that annual salary Of 5000 ony soe les,
De dercd sufficient compensation fOr the mere receipt
and disbursement OF the public funds.
port that number Of years II has been the custom Of
The bank On which the city and county funds nave been
deposited to allow the City Chamberlain or ,. per cent
upon the deposits, the percentage amounting n
A. the City Chamberlain. under the general definition
Ienetf oi the Mavor Aldermen and Comuonnty of the
City of New-Y0Tk and the people oi the county, the
Association would call your attention to the hw govern
The leading case in England is that Of EatclGe agt.
Graves the High Court Of Chanccfy n l6si, ia which
il is settled that trustee ought not naEc gain out OF
the trust property hut should manage for the exclusive
benefit Of the ccsui que trust No profit gain or ad
All the gain must 90 Ia the ccstui que trust This rule
secures fidelity and removes temptation.
H. and used this pointed Language The system OF allow
ing trustee To collect and keep interest on the money
m hands wOnd make the office of rn~tre canyas-ed
for The decision in that ease has been steadily followed
in England.
The principle has been lnAeNlbly adhered 10 in
this state
1915, schcfeln agt. Stewart, Johnson. On. r.. Gf
1915, Manning agt. Manning, johnson, Ch r.. so.
1872 Mumford agt. Murray, johnson, Oh. r., ].
1916 Utica Ins Co. agt Lynch n Parges. Oh r., $40
Although II j. true the Chamberlain such, would not
he justified investing the money received by him, either
for the benefit Of the city or county yet whatever per
cenage profit allowed tO him 10y the bank for the de
10 be county Of New YORK and not to the Chambcrian
Certainly the law would not tolerate that the Chamber
lain should receive and keep 10 his own use some $4,000
annual profit upon the city and county funds, while it
makes him ample allowance Of $4,000 year for his
The fact that proceedings have yet been taken by
the city the county To recover for their use the profit
or percentage which the Chamberlain has received upon
their funds Is no excuse OF justcatlOn ior MN 10 retain
snc profit whether received directly or indirectly. The
apathy the part OF the city and county officials
easily accounted for; but this neglect on their part should
give rise 10 the impression that our people are with
out "A remedy In the premises. An upright Official should
only seek to know his duty, and should perform faith
The Associaton trusts that as member the bar you
will recognize the force OF the principle that trustee h
not allowed any profit Tor himself nom the trust
Without advcrtng to the legal position OF your prede-
cessors and the gains they may have made out OF the
deposts OF pnbc moneys desire thus 10 draw your
attention 10 the night of the city an county III respect
10 the income profit OF the large deposits IN the bank
to their credit Ii is clear that such deposits
OF immense profit 10 the bank ana that the payers
are entitled 10 the benefit arising directly ana indirectly
from the use OF the deposited iuhis.
No business man entertain the idle supposon that
hands nor seriously doubt that 1t would be willing TO
pay a part OF such interest as an inducement To the
making aud continuing OF the deposits firm ora pr
yae corporation having 80 large deposit. would deem
INST IN arsnRe for share Of the returns OF interest
and you as the financial officer OF the city aud county.
contSoll}ug this matter doubtless have your power
10 secnre 10 your principals large yearly sum In
alteration OF such deposits
We wish to remind you. early IN your administration
that ali such gains rewards aud considerations which
nav proceed from Bank belong To principals
and not to yourse and 10 request yeur attention 10 this
uater ma one within the cogiizhce o Courts of Equity
The leisure Ia which the easy functions OF
Your ON ce cnye you is favorable 10 yor early notice OF
The publlc claim Witch hereby make The Assorla
on would also your attention TO the large balances
r suhiic funds Lenf ON hand interest the public
while The ciy and county obliged 10 borrow money
having per ut interest therefor The system OF keep
mo balances on hand cannot fail to the i'm
| nr,ssOn that it arises from interested iaotyes.
Having thus placed the subject before YOU we wait 70
great advantages arising TO the bank from the deposits
| Trusting to receive an early reply we remain,
Very respectfully, fhIEit toofEE'
| RICHARD NJ HEsRY, Secretary