The New York herald., 1873-10-16
Phelps in Court-The Latest Develop.
mcnts in the Case.

ALBANY. N. T., Oct. 15 1873.
Charles Fl. Phelps. cashier IN the State Treas
urer's oce, was arraigned in the police court this
afte rnoon on charge OF stealing draft or bill Of
exchange from the Treasurer's office to the
amount of-s15,CO0. He said that his COUNSEL Judge
Birdseye and A. Chapman, OF New York, were not
present. and requested a postponement until to-
morrow afternoon OF the examination, which was
granted.
1t is feared the amount embezzled will exceed
100000 The Ereratag Journal says it appears that
at the examination about the first OF September
Phelps stated the balance in the Mechanics and
Farmers Bank at $500 900 larger than really was
The books OF the other banks were examined but
whether Phelps produced the book Of this bank or
upon the plea that it was not written
up, or some other pretext, induced the general
bookkeeper to accept his statement OF the bal
ance is not absolutely clear The book itself has
not been seen since Phelps disappearance about
the 1st Of october. and cannot be found. In the
latter part OF september q question was raised as
to the transfer OF funds from bank to another,
the consent OF the Comptroller being necessary.
HE SECURED STATEMENT or THE BALANCES
from the banks themselves, and the Treasurer did
the same thing. The statement led to an exam-
nation ana to the disclosures which have been
made. Phelps has not made known the names
of the parties with wnom he operated in his specu.
latioDs, and It'll not fully known what banks cashed
the drafts or whose endorsement they bear One
4
are found to be made payable TO the order
OF an individual VINO is known to be
the cashier OF a New York banking house. The
cashiers OF the Treasureris Office have usually had
small side account In the checking bank, which
was mainly used for the convenience OF employees
OF the state who might desire to anticipate part
or their monthly Day. The cashier would draw
small checks for the various amounts de-
OF State checks at the END OF the month
Mr.. Phelps had such an account as his predecessors
had, but 1t seems TO have been larger than was
1 aQureQAtlnQ n ali
/ about the LIST oi september. IL does not however
explain the converting OF the drafts which, as
already stated, appears 10 have been managed III
| New lCrk.
THE DEFAuLTHG CASHIER
had the entire confidence OF all the officers, He is
| about forty-hye years OF age and came from Al
| bion, Orleans County, where his parents still re-
side. He long held position OF financial trust
under the Adams Express Company, in Georgia
and Virginia, and was appointed upon strong
Recommendations. He was man Of inexpensive
habits, and no part OF the money embezzled was
devoted To personal expenditures. There was
nothing about him to excite mistrust At the
suggestion OF Governor ,Dix and upon
the request OF Treasurer Raines full
investigation OF the affairs OF the once will be
made under the direction OF the Attorney General
The Treasurer has retained Henry r.. Selden and
samuel Hard. Phelps was brought before the
Governor TINS afternoon and thence taken before
Justice Mcnamara and committed. The Governor
desired to make Q personal examination OF the
culprit but since his arrest he has refused TO make
any communication until his counsel, Judge Birds
eye and others, appear rom New York.
ANOTHER VIEW OF THE AFFAIR.
The Ereniatg Times has the following account OF
how the defaication was detected
On saturday september 2s, the rst step taken by
Deputy ComP.roer Gaiien which resulted in the dis,
% him, in the absence q Comptroller Hopkins transfer
GaIlien TO countersgn This Mr. Galen refused 70 do,
brought them 10 him sign Mr. Gaicn again
refused to do 50, upon which, 1t is said, Mr..
troller's once Mr. Gsllien then sent %
the banks In which the state funds deposited and
asked for copy of their balances As soon a. no
ceved the figures he found there not suicent
plus the Commercial Bank warrant the dra wing
transfer checks for 80 large sum- and in order that
readers may understand the transfer checks
will explain the arrangement. All money received at
the state Treasurers ONCE Is or should paid into the
Commercial Bank In this city BY existing arrange
ment that bank s entitled % retain half the
and Farmers Bank quarter, the Albany city
and New York state national banks eighth each
the whole amount on deposit As the gross
sQp Pas paid into the Copme{ciaBalk yapSW checks