The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-10-29
Examination of Phelps.

The examination in the Phelps case was
resumed this morning. Treasurer Raines
continued his testimony. FIesaid the state
money was generally deposited in the Com
mercial Bank in Albany. Some of it was
in other Albany banks. They were dcsig-
mated as repositories. Witness here stated
that arrangements had been made concern
ing deposits before he came into office, to
which he objected OIL taking office, and had
changed, with view to greater security
The deposits were made generally in the
Commercial Bank, and thence by transfer
checks a portion of them to other banks
Witness here produced the pass books kept
by Phelps. He had charge of them, and
they were in his custody except when in
the possession of the banks to be written
up. lie said he had examined them to see
If the $4,000 draft had ever been entered
in the books to the credit of the state and
| found that it had not nor docs it appear
on the deposit tickets My deputy was
Dewitt c. Ellis until 1873, since then Full.
ton Paul. The money clerk, or cashier,
was Charles II. Phelps. Edwin Ellis was
his predecessor Charles Ellis was book
keeper and Parker Robinson part of the
time assistant bookkeeper. The duty of
my deputy was to take the general manage
ment of the treasurers office lie has no
power to sign checks,
Phelps's bail was fixed at $4,000 at the
end of his examination. His counsel says
it will be impossible for him to give it.
The duty of the money clerk was to re-
ceivc and enter monies received and to pay
out money. The salaries Of the office are
paid out by check, with responsible war
rant from the comptroller. There was a
small amount of currency kept in the office
prepares all checks, and these are counter
signed by the comptroller. They are al
ways signed by the treasurer, as the deputy
has no authority to sign checks.
have left checks, when absent, signed.
Old checks have been signed by me. 1t
would have been violation of the statute
for any one else to sign them. With re-
gard to drafts received, such as are in
question, my instructions have been that
they shall receive the endorsements of my
self or deputy treasurer | am not aware
that it has been the practice Of the office
for anyone else 10 endorse these drafts.
The transfer referred to in the dispatch
received while at AMANDA was the trans
fer from one bank to another to cqualize
deposits. 1t was not in reference to a
transfer of one fund to another. On my
return TO the city the transfer was made
On the 27th of Sept. | left word with Mr.
Wood to have the books of deposit written
up, because | found that one bank had
more than it should have under the ar
rangemcnt, and did not want it to appear
that | was favoring one bank over another
Just at that time large amount of money
was received and it was difficult to keep
equalization equal. had no suspicion at
that time that there had been any diversion
of state bonds Very soon after found
that the account of the Merchants and
| Farmers bank varied from over some
5000 900 | then at once commenced an
examination which developed the diversion.
Phelps was absent. | learned Of his where
abouts and at once procured the requisite
papers and had him arrested, was
obliged to proceed promptly, and with
great secrecy, find now that the difference
in equalization of the deposits existed for
some weeks; cannot say how long up to
the 9th of September did not know there
was any deficiency in this equalization.
Mr. S Wood, clerk in the treasury de-
partmcnt, testified that on the 27th of Sep
TENDER last, Treasurer Rains told him TO tell
Phelps he wanted his books Immediately
written up. and he told Phelps on Monday
the Goth, on his return to the city The
district attorney said that this was all the
evidence he desired to submit at the time
Judge Birdsey said lie did not propose Il
call any witnesses now. Justice McNa
mara said he would fix bail for the prisoner
at $4,000, with two sureties, and the case
was thus disposed of. The prisoner was
committed in default of bail, his counse
saying that he stood no more chance o.
getting bail than he did of paying the deb
of the United States government.
ALBANY, Oct %.
If Phelps had given the SIS, 900 bail re
quired of him, he would have been arrested