New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-28
THE ALBANY DEFALCATI0N
covrNrED EXAMINATION IN THE PHELPS
CASE.

ON THE AND-CURtOUs TELEGRAMs INTER
PRErED BY DIsTRIcT-ATTOEYEY MoAK.
inY TELEGRAPH TO TRIBUNE.l
A,R1SY. Oct. 27-The examination of Phelps, the
,3efaulting Cashier in the state TreaSurers Once
wascoatinued this afternoon before Police Justice
MeNamara. Distrct-Attoney Moak of this Guy
ranresentod the State and Judge Birdseye and MI
Chambers of New-York the prisoner. Phelps %P
ooared in Court neatly dressed and thoroughly sou
possessed and closely watched the ProcoeoinsS ~
snItne continually with his counsel in REGARD " s"o
testimony as If was broucht out When eo.n s'uoS
were ready TO proceed Judge Birdseye sa'u Iu''
r;soner was prepared TO waive an examination anu
ba committed The Justice replied that ho couiu
NOT commit him until Inc had the e'lueneo .n"O ~
lit, ~ SINE crime and that unless the prs
enor 90 willing 10 admit the truth OF the charge
,gaiust him the examination must proceed
Ittsr some debate on the legal question thus
,aised the Distric.AtOrRey called State treasurer
p,ipos to the stand and examined him. MI. names
testified that Phelps bad been money clerk III MS
- sinoe Fob. |. 1871 and that he never had any
.Tort 70 ipdorse any check draft, bill of ex-
sIoDre or other certificate of indebtedness to the
.Ssate and that TO his knowledge Phelps had meyer
-;,~nod or Endorsed any such paper with any
.,thori,v from him or. any else authorized 10
- similarity; in fat the statute forbade him to
90 Il. =, -. A
The District-Attorney then produced about ~
- n,,rortipp to have been sent aud received
Nv Pbelps between JAM l. 1873, and oct o. lo'o' the
majority of them being communications between
pbelrs and F. r. Sherwn. or members OF Sherwlhs
frr, in New York Some Of them referred TO trans
octioos with c. H. Snyder Of New-Iork aud Mauaih
SNYDER and few were directed to or signed by MI,
- Mrs SNYDER On Sept. 81 1873, Phelps telegrapheu
IN Sberwn that Charley was very sick In the iore-
,,on but that the doctors then SAID he was De'te'
1b District Attorney Interpreted this to mean that
there bad been danger during the forenoon .uaV 'no
1,otkeaper in the Controllers Office would discover
i,ney that then existed but that the danger
fr That day had passed. On sept. ~ Phelps tele-
praphed TO Sherwin as follows:
charley was worse Saturday; doctors say he cannot
Iiys long get medicine a. once and bring H.
Treasurer Raines had been at the Office on Satur-
- i, plel,s's absence and ordered the books post
al az once and the District-Attorney interpreted
this disnatch as intended 20 inform Sherwin OF TINS
and to ask him to bring money at once to make eood
the deficit. Many OF the kilograms showed nothing
9ut the presence of Phelps in Newly or OF Sherwln
in this city, As the Distrct-Attorney was not pre-
Pared to 20 with the case it was postponed until
10 o'clock tomorrow morning.
District-Attorney Moak refuses Of course, to give
any Information to the public that he may have OBJ
defeat tho ends Of justice He is willing however,
shatit shall be reported on his authority that there
jspoe evidence duplicating or rejecting upon any
state officer and that the sensational stories on that
1oint in circulation in New-YOrk last week are en-
tirely without foundation.
REGULAR REPORT OF THE EXAMINATION.
GENERAL PRESS DIsPATCHl
ALBANY. Oct. 27.-The case Of Charles II.
phelps. charged with the larceny Of draft for $4,000
ho employed in the State Treasurers Office was called
again in the Police Court Justice Mcnamara presiding
tns afternoon Judge Brdseye, Of counsellor the pris
oner said that order to time they were willing
TO discontinue the further examination OF the case. He
supposed the Court would commit the prisoner under
my circumstances Justice Mcnamara inquired what he
would commit the prisoner District Attorney Moak
said upon the charge in the complaint Judge Brdseye
ad ho did not believe the prisoner guilty Of the
charge.
Justice McNamarl-" Then It will be best that the
examination proceed" He did think he called
upon TO commit the prisoner fully until his counsel was
satisfied there was ground for such action
Dislriot-AttOrney Moak said he presumed the counsel
had a sht to waive further examination Mr.. Chap
mad associate counsel for the prisoner said they would
give the Dstrct-AtOrnev opportunity to show there
was cause Tor oommitta DisrictAttorney Moak said
ne would 20 on. then, and called Thomas Ranes, State
Treasurer. 90 the stand.
Treasurer Raines testified that Dewitt c. Ellis his
Deputy until some time IN 1873, and SINCE then Fulton
Paul: the prisoner was appointed Jan. /, 1872 money
clerk; called cashier; the moneys of the State
we're Kept Albany banks and also in the Man
haitian Bank NswYork, but in Others until this
developed there had never been any dealing
with sherwiu & Co., New-York. with his knowledge;
Phelps bad authority TO ndorse obligations belonging
the state witness always thought his Deputy did this
Endorsing: Phelps had authority whatever 70 indorse
he had authority TO deposit money with F r. sherwin
Coz on the contrary that would have been in violation
tho state rule witness did not give him authority to
make draft PAYABLE TO Charles Hudson.
Tie witness was shown number OF kilograms, which
he identified being in the Handwriting Of the pris-
Oner, aud which mostly sent 10 New-York to sher-
win & co. September. The Distriet-Attorney then
proposed 70 put in evidence number OF kilograms
sent from NcwYork TO Phelps and Others 10 him under
the OF Edwards, by Sherwn Co. Judge Birdseye
objected competency of the evidence. The Dis
trctAttorney maintained that it proper, but said
DE would ask the witness certain questions nrsb
Tue witness then SAID II customary 10 examine
The books with the Controller about the 1st of every
Der be left word the office for Phelps that he wanted
Tho books written up and prepared for examlnatlon.
ming with dated Aug. 90 judge Birdseye objected
The District Attorney read one as follows:
Charley sick all night but doctors now say be h out Of
Tais. the District Attorney said, he understood to
mean that the examination Of the 1reasurers books was
called for an there great danger OF an exposure.
The District Attorney also read one 10 r. " GhaPman
counsel In the case. asking him to meet Phelps at
1he OeldNdn House mere ne also rcdu
ret Snyder TO Mr. Phelps calling upon him for a set
Element; also signed Edwards TO sherwin saying
Charley had relapse, could live but few days
and calling on Sherwiu get medicine and come mp 10
Albany at once. This. the DistTct-AtOrney said he
meaning that his rascalitY had been discovered
and 1t necessary Sherwin 10 come 70 is relief
with the money which he called medicine 49,,
The then passed up another series OF
kilograms for the witness to identify as being in the
handwriting Of the prisoner He also handed in mum
Der sent from NewYOrk Phelps They related to the
business between Phelps and sherwn calling for an in
80 OF these kilograms showing that the prisoner
ing me telegraph freely OF AmEnsi