The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-09
BRO0KLYN'S BOND BOTHER
That Little Deficiency in the Ex-
COmptrOller's Office.
"nas Ax-Aaycr Kalbhsisoh Says Upon the sub.
ject-why We're the Bonds Sold
Below Part

The alleged deficiency discovered in the aocoounta
ofex.Comptroller Evan M. Johnson. Amounting tn
$780, $780, Is still topic OF absorbing inreresr m no
hucai circles Id brooklyn and has created no small
degree OF comment in the outside world. The de-.
nciencies which were found Dy Comptroller scbro.
der, the present incumbent OF the ONCE, exist m
the account Of sales OF the water and sewerage
and assessment bonds. Ex-May0r Kabneisch
who was Chief Magistrate OF the city dur
ing MIR. Johnson's term OF office, states
that the ex-COmptrolier sold these bonds
for less than par he acted In defiance
OF law, and contrary to his directions. he was
not able to sell them for par he should have gwen
them in payment to the contractors for the moneys
due them. That he could have done this is made
clear from the fact that he did 1t on several occa-
siOns when disposed The law said tnat these bonds
should not bear more than seven per cent interest,"
II he sold them at less than par he practically In
creased the interest that had to be paid by the city
for the loan OF the money. Mr.. Kalbheisch, there
FORE says that he holds that the ex-COmptrOler
violated the law. 'In February" 1870 the exMayor
says, 81 found That on some bonds he had received
par and the accrued interest on them. He kept
the interest on 100000 IN his own hands Tor
several months. ana even the principal was
not paid over to the Treasurer until sew
eral days after 1t had been received. 1 did
have supervisory power over the ONCE, but the
only course open to me in the premises was to COM
municate with the Common Council. and that l re.
sorted To-. AS far as the Comptroller himself was
concerned. when undertook TO ask him Tor infor--
nation as Mayor got 1nsulted. He Did me at
ne said were amply responsible to the city. COM
mlttee was appointed TO investigate the matter,
Of oq ey mevef @ Wh 0ae Oh the
putty Comptroller. The matter came up IN the form
OF a resolution requiring the Comptroller to keep
record OF the bonds solo, for how much, and TO
whom sold; but MI. Johnson utterly disregarded It.
did all in my power to set the matter right, but
In 1870 there was q law passed relating to
Park bonds, which gave him the right
public or private, Without consulting ANYBODY.
] am certain that these bonds could have been
investments as the longer bonds, they were stu
desirable. secured as they were by the city, and
MIN what bonds were bringing and he replied that
saspo.s e. d hn r ssS aas ii ne mas s any
any pody else for Them; IN TACT, offered to give
Hs ws That 81
were issued to take up other bonds That had fallen
due and yet these bonds, according to the treas
urer's account, only realized ~ cent loss
the city, apart from the accrued interest OF ga per
cent. Ihave bought some Of these bonds below par
from contractors who mad received them in pay
ment for work done; The conclusion. in
my opinion T. inevitable that he p%rpose
could have easily got par for them In the market.
In Iact II there be any DOUBT about Ins think It
were disposed of by thebrokers at one naH
per cent premium. Whether there was any UNI
derstandIng with the brokers or not cannot tell
There was another occasion when. at similar loss%
were paid over to the Treasurer In February, with
out cent OF accrued interest,""
At the time the affairs OF eX.COmptrOller John.
sons office were scrutinlzed by the Common COun-
Gil Committee In 1870 Mr. Johnson made the follow
ing written statement to the COMMITTEE, in answer
TO a communication from the Mayor in reference To
the sale and issue OF bonds as folOws:-
register containing the bonds of the city giving
the the bond amount, &c. has been always kept
the Office the same as was kept by my predecessors for
oo-In regard the passed last winter with ref
erence to placing the sale Of Park bonds entirely with
detrimen from the provision, give bonds the city
for the faithful performances of my duty
speaks which says invariably provide that bonda
shall be sold for less than beg to differ with him.
there five six where no restriction placed
In regard the city losing the accrued interest for two
three months do deny but In has the city lost
the accrued interest long six months
gard the sale bridge bonds OF which Mayor speaks
when the city lost the accrued interest would state that
not the first time that happened BY reference to
the Sinking Fund.- of which the Mayor purchased Of
l5O Of these bonds for y15000v that all we could
we're sold for and the Mayor and
assee amour. os ss from esPA pr to
the money deposited with the Treasurer
and beside knew of law compelling DEPOSIT money
with the Treasurer until had reasonable time to make
In conclusion have always done what thought for the
best interest OF the city, and all moneys received by me for
punctua,y by by any other city officer.
The Finance Committee OF The Board Of Aldermen
will commence their investigation as to the alleged
Deficiencies early next weex.