The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-05
The City Finances-Are tho People to
I.ose the Uutcrest nm DepOsits?

Lose the Interest Depositss
We take credit to the HERALD for having
been remarkably successful and useful in its
role as discoverer The spirited leader of
the HERALD Livingstone expedition succeeded
in unearthing the distinguished African ex-
plorer after he had been lost for two or three
years and given up by the greater part OF the
civilized world for dead, and thus benefited
| the cause of science and advanced the cause OF
civilization, both of which might have other
| wise lost forever the advantages secured 10
them by Livingstone long years OF deVot'on
and perseverance. Our Swamp Anger COIL
missioner penetrated the mysteries OF the
| Lowery gang. by whom the authorities OF
| State had been for months set at defiance, and
| laid the groundwork for the final dispersal Of
| the outlaws. Our Cuban commissioner found
Cespedes, for whom the Spanish troops and
the yigilant volunteers have been vainly search
ing for four or five years, and gave to the world
truthful account Of the condition of the
patriots who are struggling SO bravely for
their freedom. The sharp eyes of the HERALD
discovered and dragged up from the depths OF
official circumlocution the fact that the city
had lost nearly or quite quarter OF million
dollars interest on the city and county depos-
its through Comptroller Green's neglect, in
competency or personal jealousies. The
charge we made several days ago. that no
interest had been paid into the city treasury
since Chamberlain Bradley's retirement from
Office, has been fully established. The people
have discovered that they are the losers by
some two hundred and twenty thousand dol
lars, and that the loss has been occasioned
through the singular hostility of Comptroller
Green to an arrangement beneficial to the city,
simply because it seemed to reflect credit upon
those to whom he was unwilling credit should
| be awarded.
| When our disclosures were first made Comp
! troller Green strove to plead ignorance Of the
fact that the interest on the deposits had not
been collected Failing to make good this
plea, he has since attempted to shift the re-
sponsibility for the omission on Chamberlain
Palmer. Some Of our contemporaries, prob
ably in good faith, are unable to understand
how the Chamberlain, who is also, as Presi-
dent of the Broadway Bank, the holder Of the
deposits, can evade the responsibility for the
loss of the interest, or how he can get over
the proposition that the interest always follows
the principal and must be drawn in the same
manner as the principal They fail, however,
to acquaint themselves with the facts. The
law regulating the official powers and duties
of the Chamberlain was passed during Cham
berlain Devlin's term Of Office It pro-
vides that the Chamberlain shall have
the full control of his subordinates, ap-
pointing and dismissing them at his will, and
that the banks holding the city and county
deposits shall, in consideration thereof, pay
the expenses of the Chamberlain's Office. The
exacting Of this consideration actually fore
goes the payment of any interest, so far as the
city is concerned, and was intended so to do
It's object was to give the Chamberlain the
legal power to put the interest into his own
pocket Chamberlain Devlin exacted four per
cent from the banks, on private arrange
ment of his own, received some millions OF
interest during the heavy war deposits, kept
the money for his own use, and justified the
act by the law. Attempts were repeatedly
made to pass new law requiring interest to
be paid to the city but the large fund secured
by the Chamberlain was always sufficient to
defeat such q measure ut Albany and from our
knowledge of Legislatures we may feel certain
that had the practice prevailing in Mr. Devlin 8
time been suffered to continue there would
not have been any possibility Of changing the
law, at least up to the present moment.
Chamberlain Sweeny might have easily
realized over million dollars interest during
his official term by keeping the balances UP
to the usual standard, and with this fund in
hand it would have been an easy matter to
have controlled the Legislature and held the
law unchanged He gave up the interest te
the city voluntarily, and has been engaged
ever since in explaining away this action
Chamberlain Palmer was willing to do the
same He urged the Comptroller to allow hin
to do so, but Mr.. Green obstinately refused
These are the plain facts, and no amount o
sophistry can alter them.
Why did Mr.. Green decline to allow Mr.
Palmer to pay over the interest as it had beer
paid over by his two Immediate predecessors
Was the money any less valuable to thu
taxpayers because it was drawn out o
the banks as interest by the Chamberlain
ut the close of each month and paid over as
separate fund, which, in fact, it was, to tn
credit of the general fund? Oh, but, says Mr.
Green, the Comptroller's warrant is the only
authority for drawing money, and SO the in
terest shall be credited by the banks to tn
several funds to which it belongs, and shall
be drawn only by the Comptroller m tn
|, proper form. This would be all very we'll i
the money belonged to the city-if the la,
had not in fact, given up all claim on tn
part of the city to interest and designated tn
cooc;Ja~ot,av tho ho plc cbo,,1d ,>oy CO.. Al