, 1873-12-15
MONDAY, DECEMBER Is, 1873.

IBiod when they found TINT tho accounts In tho
two ofceB agioed. Tho discrepancy tetweon
Nir. Gago'u statements to him and to Mr. Sher-
wood was accounted tor ny e7o 600 II checks,
llat on hand, making tho total deficiency. If tho
cllocks were not converted into cnBh of $320 900.
Thcao checlH woro taken by Mr.. GnGo In payment
for tnxcs. When asked what awakened tho BUS
TINT Mr. Hopiag won't to III: Sherwood and Told
him TINT Mr. Gago could not pay oyor the
money. Mr. Sherwood laughed and eaid that
was uonHonao. nlr. Hcsng aaid llo know l,ottor;
TINT prosident OF bank whero Mr.. 1ago
claimed to havo heavy deposit told him {1Ics.
ing) TINT thcro was not q dollar OF city nonoy in
tito bank. That was why 11r. Sherwood Insisted
OIL Heoing the bank-books. THO first tint wnB
known Of deficiency by Afr. Bond was On tho
Monday Aftor election.
Ex-ALD. OGDEN,
another member Of tho Finance Committee,
statos TINT ho Higucd tho report because the
books In tho Comptrollcr's mud Troasurers Of
foes ag1ood, mud ho naturally supposed every-
thing waR correct.
OPINION OF CORPORATION COUNSEL TuLEY.
A1r. Tuloy. Corporation Counsel undor tho Ma
Aon and Modill Administrations, wns called upon
by our reporter to give his yiows Of tho case in
iss legal aspect. !1o dta not think tho bondsmen
gould get ont or their liability in any way. Ho
had ondcayorcd to guard agoinBt all contln-
gollcios TINT might arlso, and Ind instructed tho
City Clerk to hnye bondancn in all cases nc
knowledge thcir eEgnatnroa. mud o. . further
IN Lis safe, go tlat If anything Happened to Tho
originals, tho copies would be forthcoming. Tho
only question tho anrotos could raiue would DO
as to their lability for tho amount lost In tho
suspended hanks. They might sct up plca
tacitly given Its consons to-, tho deposlt
this plea would serve tho purpose Of
gaining time it would be incficotual il, law, NJ
deposit Of money in tho banks. At QUO timc hlr.
Gago proposed 70 tho Finance Committee TINT
10 would DO willing to accept Ba1aly Of say
al0 900 yoar: aud the Committee Or the Council
might deposit tic funds Whenever they chose,
aud rid him Of the responaihtlity. The Commit
teo consulted him tTufoy) and by his advice de-
ctded that the money should romain in Mr..
Gagt's hands, ho to pay over such interest," US llo
thought proper. 1lo (fuley) always opposed tho
sety taklng any official action in regard to tho
validate his bond,
INTEREST ON CITY DEros1Ts.
Tho payment Of interest into tho Troas,,ry by
1fr. Gage did not invGfidatc hia bond. During
Taylor's administration rs Cou'ptrollor, tho
9es5 ass50n bs "ress @ as IN to G" aa tho nsstes5
TINT Gasc should give tho Comptroller d chocls
for whatovcr nmount he clobo to my In, and
that tho Comptroller should deposit 1t with the
Treabaror, taking his receipt, as for other mon
Eye. AHAf VAS uoHt u5 u LUG urSL uCpQStt OF
sjl0l 900, or thoreubonts, and Comptroller Bur-
10y informed him that tho snmo coisrso was pur-
sued whon the remainder Of tho Sl33, 900 was
paid over, The interest was noyor appropriated
by tho Council for any purpose, nor Ind any ac-
ton ever Loan taken with regard to It. Tho
which was capable Of swallowing all tile money
any one chose to give it.
Mr. OHala would bo justified in demanding
the iulerost, the came Us any other city money,
hrR1
into lis haaas as Gity e TroauureS. 1e9. rhers o:
was no difference Nhetor Dir. Gago garo it
or a mau from Now York. IT belonged to tic city
nil the same. and n1r. O'Eara had right to de-
mand that y bc Forthcoming. I1e (IMlcy) mover
considered thoro was ary legal obligation on Alr.
Gaeo to pay oror any interest, a,ltl hc had SO
advised the Council. but there was no roason
Thy thc city should refuse to receive It if Mr.
Gage chose to donate it. Individually lie Cruley)
banag,. and urged that wll:oyor funds
wcro likely to ho for auy considerable limo un-
used should bo invested in Registered United
States bonds, to be placel in tho Safety Deposit
became quo aud tic into.ost dawn IN thrt way.
lie thought it botter tho city should tako tic
1isls of the depreciation Of tho bonds than Aavo
Its money scattered among the banks
and tako cEancoH in TINT way. Thoro hover was
any nct. resolution, or ordnance Of the Council
directly. or indirectly ordering tho deposit Of
money in banke. OF recognizing it as deposited
The Finance Committee, which waa instructed
10 investigate tho Treasurer't nccounts before
tho election, nevor made au official report to the
Council. \ report stating that tho acconnss
wcro correct had boon sigued BY two Of tho Com
mittoe, which was not n quorum Of the Com
nlitlce, as it consisted of tyo members. This
report WIS hanlcd to AIr. Bond. lilo Acting
Iha: report waB in no sense an official act.
There wnH no dcrelictfon OF duty ou
tho part Of tho city autloritioe. Tho Ireasur~
cr'a books correspond with tho Comptrollers
and DO now. No one was compelled to examine
Mr.. Gasos banl-Iooks or pocket-booIi, ~ tho
city nover recognized any dealings with tbs
banks, but le!d aIr. Gage and his boudsn,en.
Tho COMPTROLLER was not dcrolict III not exan.in-
ing Mr. Gagos bank-booas. lnlesB lo Ind reason
to Suspect they wero not all right.
After tho flro. from tue best information that
could be obtained, 1t was found TINT aIr. Gage
Ind OH hand $4,000 moro thau was charged
against Linn. Il few days after, 81, 600 turned
up In warrants not presented for payment befo,e
t the tire. ~, wllicli left afr: Gage $4,000 ahead.
Account.
TIE Co.lrrnOLLEn'S OFFICE
is where the books Of tho city are kept. On the
first Of avery month the Treasurer Furnishes q
statement Of tho bulanco in h'spossession on tho
iasag as aay Of % hS PRECEDING o hn" mouth II nat t. 1Gr m
comptrollor's boolss, rhero is preaun,p-
tion TINT tho funds ayo all right. It
is presumed in law tint tho Treasurer
keeps tho money in tho vaults Of his office,
The Comptroller hns no means Of officially as-
certaIning wlselo tho money is, ar whether tho
Treasurer l,as Oh lla,ld the balance lo reports Mt
tue, end Of the month. Dy keeping a simple
cash a, account Of moneys received and dsRbnrsod
cau always toll what balance lie should report at
thg onfl Of tho month, to agree with the Conn.