New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-26
SnO.NN 90
Total.

The entries of these items Of pretended deposits
do not specify the banks in which they were alleged
to be deposited. Nor were any such items to be-
found in the bank ledger But there is an entry IN
said ledger folio 1871 under date OF August 80 1873
10 the debit of the Mechanics and Farmers Bank
Albany, of $4,000; but no corresponding credit rs
found in the passbook account OF that bank or any
other of the deposit banks.
In regard to the pass-book Of the deposit banks
Mr.. Warren says "While the paSs-books have al.
ways, or usually, been written up every month, and
the Cancelled checks returned to the treasurer IND
that the very important duty of examining ana com
pairing them has not been properly performed. The
person whose business II was and who was relied
upon by the Treasurer to attend to II ~. IT, Phelpsi
having wholly neglected il failed to perform 1t in
proper manner for more than year past, a fact
which has been developed by the examination. and
which has caused delay of more than two weeks
In completing the same"
The next question solved by Mr.. Warren it, " Who
stole the money!" He states that Mr.. Phelps from
the time of his appointment had the entire charge
of the money received and deposited from day to
day. and kept the account OF receipts the cash ac-
count, and the bank accounts; that although theo-
retcally subordinate to the deputy treasurer lie eX-
ercsed almost entire control of all the cash transac-
tons that the absence of the treasurer for much
the greater part of the time according to the custom
Of his predecessors in Office and the absence of the
ness, afforded Mr.. Phelps every opportunity
of carrying out his purpose :. that hay-
ing, like his predecessor IN Office, assumed
right he began TO indorse for deposit drafts drawn
IN favor of the Treasurer thus Pay to L. A.
Groesbeck, esq, Cashier State Treasurer, per c. h.
Phelps, Cashier :" that although TINS was objected
TO by both the Treasurer and his deputy, the bank
not notified not to recognize such IndOrsements;
that having in that way famillarized the officers OF
the National Commercial Bank with his SAID pre-
tended official signature he ventured on the expert
ment of sending to New1ork drafts RENTED To the
Treasurer in payment of State taxes, Ne, Indorsed
in that manner, and was successful, though they
were passed through house ot questionable repute.
Mr.. Warren concludes this part of his report thus:
In view of the foregoing 1t seems very evident that
81 h.. hO cd IA al
against the State, but against his benetactor, tho
Treasurer, who had so implicitly trusted BIN, was
Charles II. Phelps. | find nothing to show or head
me to suspect that either the Treasurer, Deputy
Treasurer or any of the clerks IN the Office either
connivcd at or had any knowledge or suspicion of
In the course of his examinations Mr. Warren dis
covered aud pointed out several practices. which be
condemns as unauthorized and Illegal. Among them
is that of making temporary loans and advances to
various public officers and clerks in and about the
State Hall on their monthly salaries ito use al.
words as has long been the practice heretofore"
These advances and loans he states to have
amounted on the 10th Of October, 1913, to 20.
Mr. Warren also refers to practice which has eS-
listed for several years and Tor which the State DIN
GERS are i'll nowse responsible of using the moneys
belonging to the Sinking Funds for the expenses Of
the Government. Ii is proper to say. that this
practice commenced years ago, and Is the fault ct
the Legislature which, unwilling to incur the Odiutn
of levying taxes III sufficient amount 10 meet ex-
trayagant appropriations, authorized tenn
porary use of the moneys belonging to
the Sinking Funds These deficient apprOprla-
tions and their consequences were pointed out
in the Controllers last annual report and the Use
of the Sinking Fund moneys for such purposes was
referred to and condemned in pointed terms by the
Governor in bis annual message as violation OF the
faith of the State. The Controller, since the last
session of the Legislature, though having four mil
lions of State bonds to redeem, has nevertheless in
vested more than three millions belonging TO tho
Sinking Funds in permanent securities. and before
the end of another year will 20 very far toward the
complete correction of this public wrong
Although other Irregularities in the Treasury
Department are pointed out by Mr. Warren, they
are not of such q nature in the opinion of the
Governor, as to warrant the exercise of the power
contided to him by the Constitution of removing the
Treasurer from office. He will. we have doubt,
take such notice in his message to the Legislature
of these various irregularities as to place tho
responsibility where II belongs. and lead to proper
measures for their correction.