The New York herald., 1873-10-29
THE PHELPS DEFALCATION.
The Accused Money Clerk Again Before
the Police Court-Committed i'm Defa ult
OF $4,000.


ALBANY N. Y, Oct. %, 1873.
The examination Of the Phelps case in the Police
Court, before Justice Mcnamara, was resumed this
morning.
Treasurer Raines continued his testimony He
said the State money was generally deposited In
the Commercial Bank in Albany; some OF 1t was in
other Albany banks; they were designated as de-
positories. Witness here stated that arrange
ments had been made concerning deposits before
ne came INTO office, to which he objected on taking
the ofice, and had changed with o view to
greater security; the deposits were made
generally In the Commercial Bank, and
thence, by transfer checks. portion
OF them in other banks. Witness here produced
the pass books kept by Phelps; he had charge Of
them, and they were in his custody, except when
In possession of the banks to be written up he
said he had examined them to see II the $4,000
draft had ever been entered IN the books to the
credit OF the state and iound that 1t had not nor
does It appear on the deposit tickets.
II, TO Judge Brdseye---My deputy was Dewitt C.
clerk or cashier was Charles H. Phelps; Edwin
Ellis was his predecessor; Charles Ellis was book
keeper and Parker Robinson part OF the time
% ment Of the Treasurer's snH,; ofce; A1Sss he has
clerk was to receive and enter the moneys re-
ceiyed and to pay out money; the salaries OF the
warrant from the Comptroller; there was q small
amount OF currency kept in the oflice to pay SER
wants; William Wood, cneck clerk, prepares all the
checks and these are untersigned by the Coup
troller; they are always signed by the Treasurer;
the deputy has no authority 10 sign checks; have
been signed by me; 1t would have been o violation
OF the statute Tor any one else to sign them; with
in question, my instructions have been that they
SHAH receive the endorsement OF myself or the
Deputy ty Treasnrer am not aware that T. has
endorse these drafts; the transfer referred to in
the despatch received while at Armenia 1t was
deposits; IT was not in reference to transfer OF
2ns gasd @ e apotesr; on my return to the city the
To District Attorney Moak--On the 27th of Sep
tember lett word with MIR. Wood to nave the
books Of deposit written up, because found one
rangement and did not want It to appear that
was favoring one bank over smother; just at tnat
time large amount OF money was received, ana IL
was difficult to keep the equalization exact; !
had no suspicion at that time that there mad been
any diversion OF the States funds; very soon !
Farmers Bank varied from ours some $500 600;
then at once commenced the examlnation mnoI
developed the pneps nS m once procured
the requisite papers ana nad ni ~ ~
obliged proceed promptly snd tnSs ~'d te inference
IN the equalization OF the deposits existed Ior some
weeks; cannot say how long. ;, son.o,,,o, : c,o
not know there was any deficiency In this equalixa-
ton. ,..x n The Traosurv n.r..~
,ent test,ded that on the 27th OF September last
r, ,easurer Ranes told him to tell Phelps he wanted
his books Immediately written up, and he told
Phelps on Monday, the goth, on his return to the
city.
evidence he desired TO submit OF this time.
Judge Brdseye said that he did not propose to
call any witnesses now.
Justice Mcnamara said he would Ak the bail for
the prisoner at with two sureties, and the
case was thus disposed OF. The prisoner was COM
mtted in default OF ball. his counsel saying that
q hni than nj
paying the debt Of the United States government.
If Phelps had given the $4,000 bali required or
him 1t is said he would have been arrested on six
other charges, two OF which are for forgery. The
District Attorney had already procured warrants
for his rearrest. His case will be brought before
the Grand Jury early next month.