New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-20
THE ALBANY DEFALCATION.
PHELPSs ACCOUNT WITH sHERwIN & co.

THE STOLEN DRAFTS-A CORY We -
ALBANY, oct. 1S.-The examination III 'ne
80 e ~ pso,rs charged with the larceny of
a. - - - octiuc az cashier in the State Treas
- I(,,,,en, was resumed before Justice MCNAMARA
In rho Police Court this morning Ihe prisoner was ~
,rt accompanied by his counsel, Judge blruseye anu
FIJI A Chapman both Of New-York' Treasurer Ralnes
- aIso preeent accompanied by District Attorney
NOAH and his assistant NJ. F. Conway. The case
neioc eailed the District Attorney stated that the
treasurer OF Dutchess County had telegraphed
that he had missed the train and woud not De mere m
p M He then saito Mr.. Chapman OF couDsei ior tue
prisoner he would admit the genuineness OF 'he
draft which the prosecution held the case would 40
gu Chapman sad. the senior counsel Chr birus
sye) was here but absent the at present ne
would leave 1t 10 him % answer as he came IN
Mr. Brdsoyo coming in said II would be better not 10
change the order Of the examination; that wohd oe
sest TO prove the document. Mr. Moak then reao tne
draft which was the County Treasurer OF Dutchess
County 10 state Treasurer Ranes. He also read the IN
aorsesnents among which pay 10 Charles Hud-
son." signed Charles H. Phelps. Cashier" 1t was also
stamped by the Bank OF North America, ana slgueu
-Cbarles Hudson"
Charles Hudson testified reside in BROOKLYN, ana
am cashier of Sherwin Co., bankers No so brO"d"tli
nave been there June last; have not been ia me
arm have tins draft received by the hrn; canhot
say exactly when; have no memorandum on the oOohs
for DC specially; the vouchers or ticket would snow iuS
mdorsemeut was made 10 deposit the dlait IN Tue an
IF North America 10 the credit OF r. X sherMln 20
proceeds
,asber these proceeds were drawn from house u
MAS between Aug. 8 aud the middle Of september 1t
drawn by check ia currency can't say 10 WHOM VIC
naYe paid 10 Mr.. Phelps and some TO others.
Mr Moak asked how much Phelps had deposited win
his house July Mr.. Birdseye objected ashihe
what that question do with this draftY Mr. Mo"k
replied 70 show the intent OF defendant Iuo
Court thought the question proper
Wtness--It was about $4,000; his account was hrst
opened about the lst middle Of July last Phelps has
6sd no transactions with our firm brokers; don't
~ 1e
balanced / think his account IL overdue can say
when die last deposit was made but think about the
middle OF september; don't know OF anything haNuE
received since then; Nj SherWln opens INC mars
ms family reside at Flushing during the summer; don't
OF any drafts being casned Tor Pheps since tue
middle OF September don't know Of any one represent,
ING the company Of sherwir Coz am b3ohAeSptr5
keep all accounts except stock accounts, which eherWh
Keeps pay money over the couueT ever PAID c9rfey
over The counter 10 helps nave passed currency e.
VII twlco TO pay Phelps one cheSA NIs lVL $500
ana one for $1,000 can say eGaouy "I ~ cue W.
paid IL might nave been IN August IL Nas pIlVi 10
the 18Th S6ptCmber the $4,000 check was pld atf-
0 same hand writing as on other papers; to my
knowledge were Sherwiu Co. ever made inc depOSi
ary for state funds by the Treasurer have no knOw
sagf vi men o ebr Of ber depntes the frst deposit
Phelps made was $500, In July saw Phelps for the hrsi
time about that time Phelps called there about once
week usually ON Saturday about the middle OF the day
don't know being there Of business hours had
no interest except clerk 10 Sherwln Co.'S mousse we
kent accounts i'm TIE Bank OF North America and the
Bank Of the Commonwealth this draft was deposited
IN the Bank Of North America; there were about
dozen checks used in our business with Phelps.
The witness then examined by Judge Brdseye Tor
the defense but was able to tell at what time the
draft was received. The witness then stated who re-
eievod the drafts deposit who deposited them, and
who paid the checks The business wasidone by himself
sud Mr. sherwin He said received this draft for Mr..
hherwiu; suppose 10 handed me with others some
times received money with drafts ana the gross amount
war credited Pheps the account opened 10 the
credit OF charles H. PhepS the GRAFT was 80 entered
and remained there until drawn 10y Charles H. Phelps,
small ones an received from Phelps credited to
Charles H. Phelps Cashier and paid 20 him as Charles
uIaNra ksaNU ha IA ANY (.A
account Of stocks Phelps credit for this draft
after receiving II ON same day
Witness was asked # be knew whom Charles II.
Phelps Cashier represented. Mr. Moak objected.
MI Birdseye said this material tending TO
show that ne was acting for the State. and all
these drafts this house with earmark upon
them. Mr. Moak replied that no money IS PAYABLE with
the signature of Ranes, the Treasurer, and we
show that Phelps used certain means 10 secure the
y money, and that means was 20 represent himself
OF the state and thus impose on those OF whom
he sought 20 get the money, why We prove an we
charge. Nj MOak insisted that IL was part OF the
scheme ADOPTED by fheIps 70 secure tue InOneS, anu
the oues have bearing against the charge
The Ony question here Is as TO tue intent OF the De
fendaut TO steal IL makes do difference what means he
resOrted 70 10 accomplish his purpose The Court OF
rtion of the defendant and thought Mr. Moak's oh
lection not good Mr.. Blrdseye said that declaration
accompanying an act was admissible. MI MoaK VIII
Witness replied that he had conversation with
Phelps TO whom be represented as cashier nave seen
Phelps making deposits wat sheTwIn; SherIin brought
them to and entered Them they were al by Phelps
our house simply che holder OF these moneys Tor
Charles H. Phelps as cashier
To Mr.. MOaK-Ihe deposits were made IN the private
oflce with Mr. Sherwn; they numbered six eight,
nnd varied from g. 900 5000 up " $4,000 Don't re
member any OF $4,000
The Court here took a recess for twenty minutes, 10
obtain certain papers. On RECOMMENDING witness was
further Examined By Mr.. Mosk, aud asked there
not an account opened there last Winter under the
ofF r. Phelps The witness said he was not last
Winter; there was account with E. b. Phelps, but
.fhs is first time knew II was the same person;
these accounts were small and amounted TO only ABOUT
$1,000 don't remember when that account was closed;
don't know r. b. Phelps don't know woman named
Lotto stevens: the account of Charles IL. Phelps was
opened in July; the first deposit was OF $500; don't
Ieooeet the amounts OF subsequent deposits recOect
there was one Of about $4,000 don't recoect there
were two of about $4,000; recoHect Two item Ia one
deposit OF $4,000 each but do not Tecoect S4OOO ad-
diOnal the same time the aggregate OF deposits Is
about t50OOO recolleet Phelps drawing yarions sums
from $4,000 10 $4,000 but don't recOilect the dates
don't recOleet woman ever drawing money on fhelpss
check saw certificate of deposit for 5000 drawn TO
10 see Pneps on one occasion don't know James viii
Eins0n sometimes called WHISKY JIM; never saw bn
~ my knowledge.
The witness was shown draft for 10000 and dent-
nedn II was made PAYABLE TO Controller Hopkins and
Also made parable TO Charles Hudson by Fulton Paul
Deputy Treasurer Another for 5000 made payable 10
Thomas Raues, and also made payable to Charles Hud
Treasurer per Charles H. Phelps CASHIER
also identified by the witness Another for 1880
made payable ~ X hopkins, Controller also made
payable the state Treasurer by Deputy Controller
Gahen, and made payable TO Charles Hudson by the
tate Treasurer per Charles H. Phelps and stn another
for 1900, MADE payable to Controller Hopkins, also
made payable TO the State Treasurer Deputy Gaen,
and made payable TO Charles Hudson by the State
Treasurer per Charles II. Phelps, both likewise
Identified
To Judge Birdseye-These drafts are parts Of the de-
ready testified 10 the signed Fulton Paul Deputy
IIessneI cAne WIN 'ne same understanding ~ those