New-York tribune., 1872-06-05
HE ACCOUNTS or EX-CONTROLLER
JOHNSON or BROOKLYN.

TIE FINANCE COMMITTEE fhEotNI lNO W.
PORTS TO THE COMMON COUNCIL-THE MI
NORITY RECOMMEND THE IMPEACHMENT OF
MIR. JOHNSON FOR CULPABLE AND RECKLESS
ADMINISTRATION OF his DUIIEs-IHE MA
JORITY's REPORT ADOPTED.
The Brooklyn Board of Aldermen met, on
Monday afternoon Jacob Bergen the Chair, and
ceived from the Finance Committee two reports upon
the subject OF investigation into the accounts OF eX
Controller Evan NJ. johnson, who, upon retiring from
office left deficiency of $4,000 which he accounted for
by asserting that he had been obliged to sell Sewerage
and Assessment Fund bonds at prices greatly below par
The majority Of the Committee, Aldermen RabeT Boggs
and Nolan presented report expressing their opinion
that they were not called upon TO report
on any other question than that to whether
tho city has any claim upon Mr.. johnson by
reason Of misconduct mafeasance in oco in regard
to the sale OF assessment fund bonds made by
him. They state that after long and patient investisa
tion they are unable TO discover any claim against m
that while they believe it might have been possible for
some other persons who were practical Gnaneiers, 70
have obtained better for bonds at certain times
in their opinion Mr. johnson acted according TO his best
Judgment and not culpa6le IN the matter in regard
10 the fact that Mr.. johnson had accepted present OF
money from the Dime Savings Bank TO which he Lad
sold bonds the Committee state that while they believe
it serious mistake ln MN 10 take such elI taey
able TO discover hat the Guy suelc9 even the
slightest loss thereby. The Committee offered for adOp
ton the following resolutions; Co.,, .,.,-. ,,,,,
the communication Of the Controller Of Feb h 1872 referred
Rdf 6s tie Frsu,e Committee discharged from the further
consideration Of The subject
Aldermen Ropes and Richardson presented long mi
n5rf55 r. POT, CO which the dnGe1ed is al abstract
The sworn statement Of Mr. johnson setting forth the
sales by him assessment aud sewerage bonds, WIN
date Of sale names OF purchasers amount sold ana lne
prices obtained. also his reasons for the low prices at
which OF the bonds were sold together win al he
testimony taken at the investigation, form poruoh oi
the report OF the Committee. Mr. JOhnsOns statement
OF purchases is somewhat imperfect Mr.. = ana
Bearer appear as purchasers quite oteni tis rs oaf
10 oct Of
nnId nor have eksted had the motion to subpoena ali
parties holding these bonds prevailed but this was de-
MED by the majority the ground thati would consume
TOO much time We are compelled, in estimating the loss
ia tic cy To assume that those bonds not reported from
of proper inquiry brought the same prices as tOse
the sales OF which have the evidence. Mr. Johnsons
dealings with Mr.. Kissam OF New-YOrk seem the most
significant only because Of their extent but because
ness with other purchasers The rst reported sale of
assessment bonds June H. 1862 to Messrs kssam
Co.. his last sale 10 them was on OCT 26 1910 during
tins interim the entire sale of this description Of bonds
to SG65COO S,590OO0 OF which we're sold TO
Kissam Co.. leaving but $4,000 soid 10 0ther parties
The prices which these bonds were sold 10 kissam
we're uniformly below par OF the, $4,000 sold to
$4,000 TO - at 80 per cent, while on the same day
that per cent was obtained $4,000 was sold at 9S per
cent 10 Kssam. On Dee l, 1869, MT J0hnsoh sod 10
Kissam $4,000 at 90 per cent, netting the city 66OO on
the same DAY Messrs Kissam sold $4,000 AT 90 per cent
City from Mr JohnsOns sales to Messrs. Kissam during
1862 was 95t per cent? the price obtained by
Kssam 90 per cent. The average price real
lied by the city from the sales TO kssam during 1870 was
g 20 100 per cent average price obtained by Kssam
was very nearly par Tho S,590O0O sold TO Kssam
during the years 1863 and llS70 nettcd the city
81 $50 OOO the sales OF these bonds by hissam neted
him upward Of JI5OO0 showing nTO1t 10 Kissam, and
los 10 he city Of upward OF s35OOO From
Mr. Johnsons testimony It clearly established that he
in the habit of selling and delivering large amounts
these bonds. taking therefor no security and requr-
ing cash for the only as demands were made upon
him for tue money That no loss occurred 0n e loose
which be conducted this part OF his financial
duties answer such practice is ia violation OF the
rules OF financial business Oi TINS character Bonds are
cash. Tie evidence OF his acceptance OF money as
present from party with whom he had business trans
actions IN an official capacity IS before you we agree
with his counsel in the wish that he had not received it,
The answer made BY Mr.. johnson TO the foregoing
facts and figures Is not IN our opinion SATISFACTORY III
tight money market in 1869, asserted by him. but OF
which there Is proof, compelled lin 10 wholesale
slaughter Of city securities 10 kssam Co.. from What
source came the with which they were enabled TO
realize in their sales OF these bonds such harvest OF
profits The evidence proves TINS 10 nave Deen the case
and is sufficient answer TO that portion OF MI John
sons reply. The argument OF MI johnson that pay
meDts had to be made, thus compelling nm 10 sell at
the best pTico he could obtain" Is refuted by
the figures showing the loss Of interest proving that
while money was due him from the sales OF bonds,
and subject TO his call, he continued 10 sell bonds at
prices much below par. The legal right to sell these
Tie Corporation Counsel distinctly states that IN his
opinion there exists no right TO sell the sewerage bonds
below par ana Is just ~ assume that had M Johnson
performed the duty Of consulting that officer the bonds
would have netted the city their real value The con-
cusOn we each IN view OF the 1aets ascefaned Is that
an extraordinary loose reckless, and cupabe manner
OF administering the duties OF the office OF Con-
uOuer, mas resulted IN severe lOss 10 the
city, and in our opinion there is no good or
sufficient reason why Mr. johnson should he
leased from the responsibility which he deliberately
sumed when he accepted tins financial trust from the
citizens of Brooklyn, for the faithful discharge
of which the Charter compelled him TO furnish bonds.
Such utter disregard of Othcia obligation should DO
overlooked. The duty OF the Common Council TO hold
city officers to just responsibility Tor the faithful per-
formance Of their official duties Is clear TO be ques-
toned Indemnity Tor the past and security for the
alike demand that tns exocer should be held to
a strict account the deficiency set forth the com
muncaon the present Controller TO this Board, and
We offer for adoption the following:
ROd That the Corporation Counsel he and be hereby authorized
legal proceedings forthwith
johnson recovery VI deficiencies eTsng
sewerage bond accounts set forth In the communities
ton Of shroeder Controller to this Board under date FEB
1872
Aldermen Ropes, Richardson, and Taylor made
epeecbes urging Inc Board to do lis duty in the matter
and vindoae honor OF the city, and Aldermen Nolan
and RaOer opposed the minority report.
The report Of the minority rejected by vote OF
l2tOT
The report Of the majority was then adopted by vote