The New York herald., 1873-09-21
RODMAN-sPRAGUE DEFALCATION.
The Comptroller Notified that Neither
sprague nor Rodman is n Defau utter to
the City-What Mr.. Schroeder Says
Upon the subjact-Shifting the Re.

e.
sponsibility.
The lawyers employed to defend NJ. T. Rodman,
the lately arrested and imprisoned ex-Deputy City
Treasurer OF Brooklyn, and Cortland A. Sprague
ex-City Treasurer, who has been admitted to bail
on charge OF ''embeZZlement and malleasance
In oflice,n have not been idle while the District
Attorney has been busy in obtaining the requisite
evidence upon which to base a solid ana subst tan
tial indictment. Yesterday Comptroller SCHROEDER
was somewhat surprised upon the reception Of
the following short but lucid communication of
Mr.. Sprague's counseors-at-law touching the
property which Mr.. schroeder holds from the late
City Treasurer, towards the reimbursement of the
city's funcs:-
BRooKLYN, Sept 10 1873
It is apparent that neither sprague Rodman is
detaulter to the city You are required take
o; this tact You viii not therefore make any dspo
he was deceived and in error in that respect
Z Z. sd5hE, 4 ds5AhhEsARD'
Attorn eys for C. sprague.
The above theory is based upon the ground that
the city money paid to Mr. Sprague, as Treasurer,
was chiefly in the shape of checks drawn by the
Collector of Taxes to the order of sc. A. sprague
City Treasurer and on the supposition that the
checks were deposited by the accused In his Official
capacity, and, in that event. the money could not
have been drawn except upon warrants signed by
all the financial officers OF the city. 1t appears,
Taxes had been regularly endorsed by Sprague, as
City Treasurer, and by him deposited as such.
WHAT CONTROLLERS SCHROEDER SAYS.
Comptroller Schroeder, when questioned upon
the subject yesterday, sad:-''It Is not true that
sprague and Rodman are not deaulters. 1t is
true that the checks drawn by the Collector were
endorsed by the Treasurer, but all the money was
not deposited in the treasury Supposing for IN
he would deposit 1t in the Trust Company with the
request that $50 600 be placed to the credit Of the
that he might deposit with other city
banks. Two or these checks he would deposit to
the credit OF the city other banks, and The third
would be endorsed by MIN as Treasurer and depos-
tied in q New York bank TO his own account or
1T, was the manner OF transferring the city funds
to the personal account OF the men who used
them. We have found one check which had gone
that round through the Shoe and Leather Bank or
New York. and expected to find more That, IN
fact, was the only way in which the money could
be embezzed, ana New York banks only probably
could be used lOr the purpose, as Brooklyn banks
would be suspicious OF any checks so transferred
] do not that this makes 1t any better Tor Mr..
Sprague on the contrary, il makes it worse"
The COMPTROLLER regards the legal notice sent
hlin as informal. and will take no notice OF It, Mr.
Sprague told the Comptroller that all the stocks,
except the Wilmantc Railroad bonds and the
Long Island Cub note for $4,000, were his own.
ABOUT month ago. Sprague's real estate has
% neeh placed by him in the hands Of agent. to be
% s%olu wheh favorable market presents ifself, for
putpose OF making good the balance Of the de-
ncfehs. ,e me amount alleged TO have been embeZ-
and hond mui oe remembered, Is $4,000 The stock
annntpnner Com ponns aTeady in the Keeping OF the
SSDnpso,ner' SOraa, and the proceeds Of the sale OF
,pl asuss property Will more than make
goou Ine loss sustained by the treasury The
b0ndsmen have, with the exception of Mr.. Patten.
gwen their notes Tor an equal share OF the sum
StOleD and these notes which are also in tho banda
Of the Comptrouer, are payable January / 1874
There are those who now say, however that Inc
giving OF these notes was intended as a mere eva.
sion OF payment, as notes cannot be made avail.
able where no consideration Is shown. MeanwbiIe
the LAWYERS are hard at work TO shit the resnon
siblity from or the devoted heads'of their precious
clients and knock the bottom out Of the indict-
meDts which may he found BY the Grand Jury upon
the testimony.
Ex-Judge Ed win Moore, counsel for sprague, as.
serted that the Brooklyn Trust Company wonld be
obliged TO pay the alleged deficiency In the City
treasury. He also claims that his client IL not
Liable for R0dman's deiacation&