The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-08-29
How He Carried On His System
attic Roguery.
Treasurer Sprague and His Bondsmen
Reimburse the City.
Statement of the Comptroller, Corpora
ton Counsel and Mr.. Sprague
About the Case.

announcement was, OF course, startling to the
general public, who could not be expected to
realize the extent OF the robbery on the part OF an
Official whose accounts were supposed to have
been under the inspection Of other .trusted SER
wants OF the people," Hence the commotion
attendant upon the revelations was extreme, and
the popular pulse beat faster than has been its wont
Tor some time. 1t VIII be borne ia mind however
by the readers OF the HERALD that Rodman was
alleged to have been behindhand in his accounts
with the Trust Company at the time the deiaca-
ton OF t he late President Of that institution 4.
s. Mills was discovered, in the early part O. July
last. Rodman was then said to nave Overdrawn
his account to the amount OF $50 900, and to have
been acting in collision with the President In the
appropriation Of the funds OF the company. When
questioned at the time as to why he did not ex-
pose the frauds on the part OF Mr.. Mills, OF which
he as Secretary must have been fully aware, he
Piled that 'he knew nothing OF Mills speculations
except his real estate ana building operations in
which he doubtless met with some losses and en-
barrassments. These were not, however, as dis
astrous as had been represented" H claimed
that he did not represent the overdrawn accounts
of Mills to the directors for the reason that
MILLS WAS HIS SUPERIOR OFFICER.
AS to the charge that he (isodman) had de-
ciency in his accounts OF $50 oOO he asserted that
he mad deposited ample security in the form of
Connecticut town bonds as collaterals for that
amount. There was an air OF prevarication in all
this, and, as public confidence could no longer by
any possibility, be reposed in him. City Treasurer
Sprague discharged him from the Office of Deputy
Treasurer but too late, as the sequel shows to
avoid the losses, which had been accommodating
under the adroit system OF roguery which mad
been carried on tor a couple Of years past Just
M soon ~ the Treasurer could look over
his books in casual way he found
out, but kept the secret locked within himself
that foul play III figures had been the order of
many days and months. Rodman had pocketed
the money received from the city in the Trust
Company, and had entered it upon the books of
the Treasurer II deposited to the credit OF the
city's account An expert employed to go
over the books Of the Trust Company and TO CON-
pare the items credited to- the city iund's money
in their keeping with the CITY Treasurers accounts.
Mr.. Sprague, on last Tuesday morning two weeks
ago, repaired to the residence Of Mr.. Rodman IN
Union street, near Hoyt, Brooklyn and had
IA talk" with him. the result OF which the City
treasurer declined to give, but admitted subse-
quent!y that Rodman had promised to come down
to the Office on the day following and
explain some little matters mot OF any particular
importance In themselves, perhaps, but, neverthe-
less, requiring explanation" Such was the YER
sion of the given by Mr.. Spraguc at that
",
out informing his household of his intention, left
the city in close cab, in company with his wife,
for parts unknown.
THE SUDDEN FLIGHT
while the explanation was pending caused the
greatest CONSERVATION among the boLdsmen of
the ex-ofcial, who began to realize in the fullest
sense possible that their bonds were in jeopardy.
Inquiry failed TO elicit the point of destination
aimed at by ROdman, and as last re-
offer reward Tor the "coachman who drove
gen tleman and lady'' from that locality on the
afternoon of the flight. rhe ruse was seen through
ana on the day following an account OF the all
sconding OF M. I. Rodman and the suspicious CIR
cumstances attending 1t, together with the re-
ported alleged defacatlon in his accounts In the
City 1reasurer's books, appeared In the HERALD
The result was the return OF Mr.. R0dman to his
home in Brooklyn on the following day. He has
ever since, as far as can be ascertained kept his
bed and is said to be suffering from intermittent
fever or species OF nervous affection, which has
warranted his doctor from excluding representa-
tives of the press rom his presence: In the
lisned, the accountant has been going
over the fraudulent accounts, and City
Treasurer SpraRue has steadfastly and wllfully de-
MED ali knowledge of any deialcation on the part
ol the invalid Rodman when questioned upon the
subject. The writer Yesterday morning early In
CURED Of Mr.. sprague II there any truth in
the story OF the defalcaiion or Rodman and he re-
piled that he knew Of none and had nothing to say
on the subject; that he was not in position TO say
anything about the matter; Comptroller Schroeder
could tell all that was TO he said on the subject,
and that there would be a statement prepared for
the press by Mr.. Warren, VIII Oh would give all the
facts 30 the pubic.
srATEMENr OF COMPTROLLER SCHROEDER.
The Comptroller made the Following statement TO
several reporters who had assembled In his
Office :-Gentlemen, want to make this as short
and as much to the point as possible. M. 4. Rod
man, Deputy City Treasurer and ex-Secretary or
the Brooklun Trust Company has been found TO
81 6ere 10 met e viii f his 70 5ae extent All OF
ceptng Mr.. Kingsley, who Is out OF town, aud with
Mr. Sprague City Treasurer, and as result OF that
meeting the thing is arranged TO make the deh-
cheney good by the Dondsmen ana Mr.. Sprague, so
that the city VIII not lose dollar. The defalcaon
was divided between two accounts. From the
Board of Education lund was taken $4,000 and
from the general city fund S9s,0Oo. The pos
sibility OF the swindle was furnished by the fact
Secretary OF the Brooklyn Trust company and
Deputy City Treasurer. These positions enabled
him to make false statements to the comptroller
oil the amounts deposited to the credit OF the city.
He could, for instance, pocket the money received
rom the city and enter IL upon the books OF the
Treasurer, as If deposited in the Trust Company,
and his ONCE as Secretary OF the Trust Company
prevented the fraud from being found out HIS
as Deputy City Treasurer, and the Trust Company
could not, therefore, be held responsible. The
as to the manner in Which the fraud
discovered The Comptroller believes that
it would not be possible in the future for such
robbery to be committed as the treasurer is to be
required TO furnish, In connection with his state
ment Of the balances In the banks certificates OF
the cashiers that such amounts actually on de-
post Last year the Comptroller wanted this
done, and requested a compliance with this pre-.
cautionary measure in writing, but Mr.. Sprague
declined to comply. This would at once show any
discrepancy between the amount received in the
Treasurer's Department and the amount deposited
by him, and had 1t been done before RodmaD could
not possibly have made such inroads upon the
cltys money.
THE EXPERT ACCOUNTANTS EXPLANATION.
The expert, Mr.. warren, employed by Comp
troer Schroeder, with the sanction and c0opera-
ton ~ OF City Treasurer Sprague, to overhaul the
books OF the Treasurer OF the city and compare
them with the items in the Brooklyn Trust Com
panys accounts stated when called upon. that 10
should be borne in mind that this defacation does
not fall on the Trust Company, and that sit Is In q
sound condition, as have found by strict examine
ton. AS to the amount of Rodman's defalcaton,
found t To be $4,000 on the general fund account
and 5000 on the school fund.- making total OF
$l4s,00O. This amount the Treasurer and ROD