New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-29
RoDMAYs DEFAULTS DISCOVERED.

RODMANs DEFAULTS DISCOVERED.
RumOrs of a heavy default In the Brooklyn
City Treasury filled the air yesterday, and when the
financial officers appeared in the City Hall the fact was
admitted that NJ T. Rodman formerly Secretary OF the
Brooklyn Trust Company and the Deputy City Treas
urer had robbed the city OF s4OO and that previous
default OF $4,000 had been made good year ago, al
though all knowledge of IL smOthered at the time
The intelligence that the treasury had been robbed OF
sos caused asonishment at the City Hall and on the
streets but 1t was not the City Treasurer, Cor
laudt A. sprague for be TO have been aware OF
the transactions of his deputy for some time,
and to have been temporarily successful
In his efforts to avert suspicion. The startling
news was finally told TO member OF the
Board Aldermen with strict injunction 10 keep the
secret and through him the public were made aware OF
the default The OF the robbery caused the great
est excitement in all quarters and there were not less
tnan 200 persons rushing about in the corridors of the
City Hall before the Controllers Office was opened in
the morning. Controller Schroeder appeared at 10
O'Clock and at surrounded by reporters poll
ticians and bankers, who demanded Information as TO
the real state Of affairs His admissions canfrmed the
whispers Of the street. N. Rodman, in the capacity
OF Deputy City Treasurer, had deliberately stolen
Sa0 600 OF the public money. The sum Of S4S00 which
is the latest robbery believed to have been stolen
during Rodmans partnership with the late EthelDert
e. Mills and the funds taken from the City Treasury were
doubtless speculatlons in which Doth men were
engaged As yet 1t impossible TO learn now long the
ety officials have known OF the robbery, but it be-
eved that Treasurer Sprague not ignorant OF The
facts when he made the arrangement over month ago.
with Mr. Warren. the expert accountant to examine
the books iD his department The sum OF SSOOO whch
was stolen time ago, swells the deauit 10 sAVVO
I'm this case the money appears to have been used in
specuaons with the late L. s. Mills, for it is known
that three days after the money was taken Rodman aud
Mills loaned $4,000 TO john K Pruyn, the defanltihg
President Of the Central Bank This default the City
Treasurer discovered according to rmnor' when tue
Central Bank failed, and yet he retained Rodman as
his deputy aud made up the deficiency in the ctys ac-
Of his pocket AS IN the hrst case 30 III
the present one every effort appears TO have been made
TO screen the defaulter.
Civ Treasurer SpraCue in the presence Of witnesses,
assigned 10 the city entire property and his bonds
men drew their notes, payable or before January
next to make good the cys loss The City Treasurers
bondsmen are as follows:
RSS52t VIM. kar'l'y 100000
Jsmes olWen........1OOOOO
When the publication Of the weekly balance-sheet OF
the Treasurer was begun Mr. Rodman objected to II
OF no public interest When he found That 1t could
easily be obtained from the Controller he consented 70
furnish himself This publication. 1t IS said led 10 the
first discovery the embezzement as in his Efforts 10
up fraud he charged each bank with more OF
the public funds than they really had.
ctys accounts had advanced far enough 10 show that
Rodman was a defaulter, Mr. Sprague made good the
sum OF $4,000 by the sale OF his interest In The brooklyn
Eds,e 10 William Van Anden. 1t is also rumored that
Mr. sprague borrowed $4,000 from his father while Rod
man was at Irvington, and similar amount from
another person. These were borrowed IN order 70
enable Sprague 10 balance his accounts.
Trustworthy person informed reporter last even.
Ing that last Spring ROdman deposited funds OF the
Trust Company 10 the amount OF 100000 in Wall-s for
speculative purposes.
A gentleman, thoroughly conversant with the man
Of the citys finances, told TRIBUNE reporter
last evening that the entire amount OF ROdmans rob
beres not yet known. As far as could be ascer-
tanned the loss about 100000 In ALL but the inYest-
CATION not yet completed.
1T seems somewhat odd" continued the speaker,
that Rodman should have had the opportunity OF doing
what be did Mr. sprague knew OF the theft OF $4,000
year ago aud yet did not take to have the
thief removed. These things could be under the old
charter winch did not obige the Treasurer to make a
personal statement to the Controller II in any Of the
statements made by Rodman any figures representing
amounts OF city funds deposited varied from the true
amounts deposit at OF the Institutions hap
pened time ago, great notice was taken OF IT,
The men IN ONCE were not suspected Of unfair dealing
But ROdnan IL out aud out rascal lie vent
into all his speculations reeklessly because he
knew he had nothing to lose. He has no
property which can be seized upon by
the city, all Ills properly being III the wife
The Judgment against him for 5000. entered last suring
shows this la the examination now going on OF the
municipal books. the Controllers and Treasurer,s
accounts being compared and balanced. and thus
any discrepancy which may exist will be discovered
The accountant has by finished his task and
the discrepancy toOs said before, nearly $4,000
For anght that is known, the amount OF Rodman'.
robberles may be more than double that sum-"
The exreceiyer Of the Trust Company, Mr.. Chauncey
dsscsimed any knowledge OF the etnbezzement He
ao knowledge OF the city funds beyond the deposit II
the Trust Company, aud expressed himself well pleased
al his ignorance OF spragoc's and Rodmans accouDts
Judge McCue requested TO state any knowledg,
he might have regarding the defalcaIioD, but declined
10 say anything about II. He said he had hat
anything do With the TreasuTers accounts and ha
been informed that there truth in the OF
deBct II concerned one whether Mr. sprague had OF
had not sold his stock in The Eagle. With be De
cidedy dismissed his interviewer.
The following the Substance Of the statement OF tn
Corporation Counsel. Mr.. Dewitt, TO reporter Tn
duties Of the Deputy City Treasurer 10 stand in IN
place OF the City Treasurer In the case OF the absence
~ aho lI IA rtggk OF q