New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-08-29
THE ACCOUNTANT ON THE TRAIL.

accountant who has OF late been making an lnVesuga
ton into the affairs of the Brooklyn Trust Company and
Of the Hoboken Bank for Savings and who is now ascer
tanning the precise condition Of the complicated accounts
of the City Treasurer Brooklyn, sought out last
evening by reporter OF TIE TRIBUNE at his residence
No SO West Fifteenth-s When asked for information
concerning the condition in when he found the accounts
Of the City Treasurer of Brooklyn Mr. Warren was quite
retceni but after solicitation he consented TO make
statement in relation to the matter.
began, said he, the examination Of the Brooklyn
Trust Companys affairs the 18th inst, but before
had time TO make my formal report 20 the directors
was called upon by City Treasurer sprague and several
Of his friends, who urged TO begin possible
an examination Of the accounts OF the City Treasury
The chief object Mr. Sprague had in view in setting on
foot this investigation to learn the exact amount OF
certain deficiencies which he suspected there were in
the funds Of the Treasury He wished this information
as he himself told me, in order that he might know
whether his property sufficient TO make good
any defcaon there might be. He said that the people
of Brooklyn had shown their implicit confidence in him
by ntrustng him with the charge OF tho public money
and he determined 70 be worthy Of their trust, to
that their money went where they desired to co.
make good, before 1t gained publicity any defa
cation there might be. In beginning my Investigations
went Thursday the 2lst inst, TO the office OF the
Controller and after much labor ascetained that the
amount due from the City Treasurer 10 the City OF
Brooklyn, at the close Of business on Saturday
Aug. l6, was s3,407,s91 IA; which amount, as
appeared from Mr.. sprague's weekly returns Of that
date then deposited in various banks In the CITY OF
Brooklyn. 1 then requested Mr.. sprague TO send at
once 70 the several city banks and have his passbooks
with them written up, and several balances appar
emily cue from them verified. he complied with my
request and believe the apparent balances due from
these banks Aug 10 were found TO be correct except
IN the case OF the Brooklyn Trust Company In whose
accounts there was discrepancy Of nearly 100000
Ia fha
city money on deposit with the Brooklyn Trust Company
was little over 100000 On referring TO the ledger OF
the Company the balance favor OF the City OF Brook
lyn" was only little In excess OF 100000 subse-
1uenty found that certain checks, which were depos
tied with the Trust Company by the City Treasurer to
the credit of the account Of the City OF Brooklyn which
had been dshOnored and charged back TO the said ac
count, were paid. These reduced the difference to
about 100000 Some other items which afterward
found shortened IL 20 s5 and soon learned OF an
other item amounting $4,000 which had been depos
tied in the Mechanics Bank, and deduchng that sum
from had 500 which stl remained 20 be ac-
counted for unable account for this differ
ence made written report TO Mr sprague, on the ed
inst TO that effect.
The next day called upon by Mr. Sprague's couh-
sell who inquired if the sum mentioned in my report
was the entire amount Of the deficiency in Mr. spragues
accounts / told him that il was, far as concerned
the accounts rendered by him to the Controller; but
that the City Treasurer by law the Treasurer OF the
Education well OF the CITY Corporation
and that had not examined his accounts with that
Board Both he Mr. Sprague then desired me to ex
anime those accounts, which did According TO the
Treasurers books there was balance due from him 10
the Board Of Education Saturday, Aug. %, OF
s39Ol93 H. Mr. sprague, at my suggestion, having had
his books with the banks in which he had deposited
the educational funds written and balanced TO Aug
49, his accounts with the Board found to stand as
follows:
Ia Fitt National .sl263l2 ca
Ia Fulton Bank lsS92a az
In Mechanics Bank 'o'o'o
Total ..........,.. .................$34Ol 1873 II
rbi. s, deducted from the amount due the Board of
Education from the City Treasurer leaves dencciency
OF $4,000. 80 A., ~ .. ,,, ,,o
spSken of embrace the moneys belonging TO the Com
nssioners of the Sinking Fund OF the City OF Br9okyn
A No SIR: thew do not The City Treasurer, although
one Of the Commissioners of that fund.- not the banker
of tho Commission All moneys IN the CUSTODY OF tnat
Commission are should be- deposited with the BROOK
1yn Trsst Company Consequently the accounts OF the
City Treasurer do not embrace the moneys belonging 10
O. Have You any objection stating whether your in
vestgstion Of the AFFAIRS OF the Trust company
ANYTHING unusual relative TO the accounts OF the SINK
ING FUND.- a No, Sir. aid examine that account ana
found some very crooked things III IT, have no memo
ra1da OF the examination with me, but will suffice to
say mat discovered good evidence that the moneys De
longing to the Commissioners have long been talnpered
With more or less by ROdmaD the late Secretary OF the
Trust Company. The monthly accounts rendered ny
him as Secretary OF the Company, TO the controller
show the receipts and disbursements OF that Company
nT,S each month on the account OF the Sinking Fund
and the balance remaining deposit, or what should
reman on deposit with the Trust Company. The books
of the Trust Company show quite different balances
am engaged IN further examination Oh 'nese ac-
counts - A.. NJ o.~o.,o
had positive knowledge OF any OF these uenciehelesi
A, No, nothing whatever. =. ,,,
knSw nothing OF these Deficiencies A. He appears 20
have trusted everything 10 R0dmaD DIS deputy, WHO
transacted all the business and in whom he seems 10
have placed implicit confidence.
n ho
city treasury by the tax collectors and others A. Mr.
spra rue signed them sometimes, but usually they were
VIVA, is the general condition of the City Treasurers
booksi A. They are in very good order, Indeed; they
are now kept according TO the method prescribed ny
Office no regular books OF account were Kept by the 0
Treasurer. 80 80 No.. ,,,o,,,
A Generally speaking, they were IN gOou sohuitVh
n Have Won found any Declarations which have not
az vet gained publicity A. No; none az vi. Inere
NAV however reclamation amounting 10 Few
thonsapd dollars made by the Commissioner OF the ek
ing Fund for interest on money depositeo VIII 'ho
cnInpauy which was receipted by secretary houlnsh
but not actually credited ON the BOOKS o. tue COMPANY
hence no interest was allowed thereon. . =.
o. Will YOU please state whether there IS any de.
AGENCY in the Sinking Fund bills due from the Trust
Company A. No, SIR there was dencieIoy' put ~
has been made good. As understand, the money
came from ROdmQn II having been Dy BIN oepostcu III
the Fulton Bank upon the resumption OF business
by the Trust Company It was drawn OUT VI 'no '"A"
a thas been rumored that there were deialcauons or
deences in the accounts Of some OF the departments
in BROOKLYN beside those you have had 10 40 win 40
Won know anything concerning themf A. No, sr;
Iavc t nee called upon Investigate the CONDITION
~ the accounts Of any other department
ADMISSIONS OF THE OFFICIALS.
THE CONTROLLERS STATEMENT.
M, T,on.,o,ar eaid | want to make this as