The New York herald., 1873-09-17
TIE BROOKLYH FRAUDS.
What tho Defaultsr, Rodman, Confessed to the
District Attorney-The Chief Culprit Ex-
Treasurer Cortland A. spragus-
The Deputy To Be Used -
States Evidence.

The Deputy To Be Used -
States Evidence.
| The action OF District Attorney Britton in caus-
ing the arrest OF the cx-CiJy Treasurer, Cortland A.
Sprague has caused much commendation on the
part OF the public. In conversation with the Dis
trct Attorney yesterday that oflcial stated that
he believed he had got to the bottom OF the Rod
man robbery, and that the ex-Deputy Treasurer,
Rodman, who Is now In jail, charged with en-
bezzling $4,000 OF the city funds had made con-
fession to him. Mr. Britton said that Immediately
upon his return IRON Europe. last week, he COM
menced to examine the facts the case, and In
the course OF iorty-eight hours he ascertained be-
yond o doubt that Mr.. Sprague was the chief cul-
prit in
PURLOINING THE CITY MONEY.
Without going into details, derived my oew
| from source not before accessible to my assist
ant Mr.. Cullen, who, despite every effort, had
been unable to obtain Information suicent to JUS
tiiy legal action. Upon the facts gained upon that
clew | had Mr.. Sprague arrested yesterday The
result OF that arrest was that Mr.. ROdman, with
the assent OF counsel, made statement to me Of
the entire matter from the beginning which state
ment so concluslvely corroborates the evidence
before in my possession that have the most i'm
pcit confidence In it, In the first place 1t has con-
nrmed me in my belief tDat Mr. Srrague is the
most cupable, and that Mr.. R0dman, although cul-
pable In degree has in the main been an instru-
ment rather than an actor The City Treasury
funds have been used by Mr. Sprague Tor specu-
lative purposes and loans for the benefit OF him
self, ROdman and Ethebert S. Mills since very
short time alter Mr.. Sprague was elected City
| Treasurer. 1t was agreed between NILS, Sprague
and Rodman, in the beginning, that they should
loan city funds Tar as practicable, and
should, after paying the city the three per cent
| which 1t was entitled to receive from the Trust
Company, divide the balance OF the profits on the
| loans between them. BY deducting from the
amount duly received from the city Ger Jain pro-
portion Tor their own use and depOsitng the same
| in the Trust Company or some one OF the other
city repositories, with the balance thus accumu-
lated, and OF which there was q private memoran-
DUN kept, they
OPERATED FOR THEIR PERSONAL BENEFIT.
For instance, if $4,000 was deposited to-day BY
the Tax Collector they would, on the City Treas
urer's check pass $4,000 to the credit OF the city
and retain $4,000 for their and deposit 1t
either to their personal credit retain 1t in the
general account until opportunity presented itself
for '.judcious investment" The first loan made
was, at the instigation Of Mr.. Mills TO John K
| Pruyn then President Of the now defunct Central
Bank. 1t amounted to $55, 900, which money how
ever, am informed and believe, was by Mr. Pruyn
reloaned TO Mills, either in whole or in part The
Cenera Bank failing, the money was lost, and 1t
then agreed between them lSprague, Rodman and
Nils) in writing that they should mutually divide
the loss. The loss, however, has been carried for
ward from time to time, and never has been made
up. Among other loans made was one to "MulfOrd
II Sprague''-Sprague's business nrm-of $4,000,
subsequently increased by an additional loan OF
$50, ,O00 That loan was subsequently repaid In in
stalments, the last being made on July 22 1873,
upon the check of }. B. Murray for $4,000. Loans
were also made JEFFERSON car stock to Smith
Baker, who was friend OF Sprague's and in
whose enterprise, am informed, Sprague had an
THE PROSPECT PARK CLUB
$T2, 900, which was stolen from the city treasury.
lie (Sprague) loaned the Long Island CLUB $40 coo
$3.50 to one Collier, who was his horse man, and
who bought with II. the black mare Evelyn; ne
Tor that loan was ticket put in the drawer TO the
Hope Mutual Lite Insurance Company he lSprague)
LOANED sEvENTY-FIvE THOUSAND DoLLARs STOLEN
| MONEY. rstr.of sl
In this company Sprague was largely interested.
He purchased 81, 600 worth of Prospect Park stock
| with money taken directly rom the city treasury.
He subscribed 5000 towards the construction OF
! the Brooklyn Theatre taken from the city treas
ury. lie took 81, 500 Long Island CLUB bonds when
the club was organized, and paid for them with
now indsputabe, and they fully corroborate Rod
mans statement that all OF the deficient money
went directly to Sprague Mills and their friends,
and that he (Kodman) never received 81 OF the
prlncr al stolen, although as he admits, he did re-
ceive his share oil the interest on the loans made
OF Rodman's culpability. in my opinion, is summed
! up in that have been unable to nnd, after all
| three named had any knowledge that the city
moneys were being used in the manner described.
or believes, the knowledge Of these transactlons
was limited TO the three. uD.
Mr.. ROdman states and other information estab-
lishes the truth OF the statement, chat
THE CITY DEFICIENCY HAS BEEN LARGELY DIMN-
| during the past year; and that he says, was
caused by his repeated opportunities and threat
| enngs. part OF the reduction was the loan to
from one OF the city banks, on the 10Th Of August
1872 s2s, 5Oo from another bank on the 2lst OF
October same year, $4,000, which he turned over
| to the reduction OF the deficiency. Sprague bor-
| r0wed for the Trust Company in the name Of Edgar
NJ Cullen, without that gentleman's knowledge
| S45,OOO, which he also used for tine reduction Of
! the deficiency. At the time the Trust Company
Wss r ns Sa the
and Sprague had been drawn. Sprague went
to 81 the banks ~ IN the % E and opened
and deposited certain checks to that account suf
lcent to cover the deficiency. subsequently that
isSs signed mes by PoWe Mayor and G.
| sprague. After the suspension of the Trust Com
pany Sprague called on Mr. Rodman and told him
| they were obviously standing on the brink OF
volcano, and added that, inasmuch as he (Rodman)
| had been tainted with the Mills operations and
could not be injured any more, he (Sprague) would
| give him
FIVE HUNDRED THOUSAND DOLLARS IF HE WOULD
RUN AWAY.
| Rodman refused saying that he had none OF the
stolen money, ana did not, therefore, propose to
shoulder the blame. He had q family, he said,
| whose reputation was dear to him. lflt
This conversation was overheard by another
person, who stepped In and protested that Rodman
should not leave. After the deficiency In the city
treasury became public Sprague renewed his
offer to Rodman, but 1t was rejected. r..
These all the facts that | can give to-day,
except that Rodman Will reduce his statement to
writing and If 1t Is fully corroborated shall PROF.
ably use him in the trial as witness against the
principal cuprit. My investigations in the matter
have, however, only comparatively begun.
APPLICATION TO HAVE Mr.. sPRAGUE ADMITTED TO
Mr.. Sprague's counsel Mcssrs Ed. Moore and d.
p Barnard, applied TO County Judge Moore to have
the late City Treasurer admitted to bail. Mr..
Sprague is still confined to his house. and this ap-
plication was made with the view OF reliev.
ing him from the surveillance OF two OF
to greatly disturb him. There was some
question as to the legality OF admitting TO bail