Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-08-29
BROOKLYN.
A Municipal Credit Mobilier.
A Defalcation of 924S, 200 Discovered

A Municipal Credit M0bilier.
A DefaIcation of 924s,OOO Discovered
The DefauIter Knows too Much and
likely to Escape.
NEW YORK, A ~. 28.--It is now known
that the Brooklyn city treasury is involved
in the common catastrophe with the Brook
lyn Trust Company. Late last night it was
ascertained that the city treasury had been
robbed of large amount and that Rodman,
late Assistant Treasurer and Secretary of
the Trust Company, was the guilty party.
Rodman acting in bis double capacity was
enabled to cover up his deficiency by max
ing false statements concerning the amount
of deposits TO the Trust Company. Look
ing over the accounts Of the Trust Compa-
nv and the books Of the City Treasurer,
Mr.. Warren, the expert who is engaged in
the examination, finds the defalcation of
Rodman as follows: From the city treasu-
ry $4,000; general fund $9S,000; Board of
Education on deposit with treasurer $50, 900;
total S2O3, 900. OF this amount City Treasu-
rer Sprague made good $4,000 by the sale
of bis stock in the Brooklyn Eagle to VIM.
Van Auden. The bondsmen of Sprague
are Henry Sanger, R. L. Muiford, j. Oh
well, John Patton and W. @. Kingsley.
They are fully responsible and the city will
not be a loser. The bond Of Rodman calls
for $4,000 and is believed to be well Sc
cured. 1t was said at the hall that Rod
man would be secured before sundown and
lodged In jail. The arrest was to be made
on affidavit of City Treasurer Sprague, but
If he failed to do so, tie Comptroller, acting
under advice of the corporation counsei,
would get warrant for the arrest Of Rod
man. On the other hand, q prominent
official says they don't dare to lay finger
on RodmaD, for he
Knows Too Much
for them, and they're afraid he Will tell all
if they threaten to make him scape-goat.
1t is also alleged that in order to shield these
alleged ring SPECTATORS the deficiency will
be quietly met by the parties who are di-
rectly responslble for the safe custody Of
the city funds.
At an early hour this morning Srrague
denied that there had been any defalcation,
and Comptroller Schroeder although aware
that there had been defalcstion wouldn't
admit it. Two hours later, however, it was
admitted by both of them who stated it
was necessary tor them to keep the matter
quiet. The fact is they were engaged in
raising the amount to make good the loss
so the city should not suffer. 1t Is now
understood that Surague's bondsmen have
pledged themselves to make good any de-
ficiency, and Sprague has made assign
ments of all his property over to the city,
even his household goods. There are those
who assert that Mills, of the Brooklyn In
surance Company, who was drowned at
Coney Island was implicated with Rodman
in this deficiency. Among other rumors
which were rife was that certain city
deputy was also involved in the trouble,
but the nature of the trouble was not de-
fined. Inquiry from officials failed 10 de-
Velop anything satisfactory. Warren has
completed the examination of the books of
the Insurance Company, and his report i
ready. No further discrepancies than those
already known to the public have been dis
covered.
The Brooklyn Eagle says the sum and
substance of all the statements made is
that Rodman Is to-day defaulter 10 the
extent of S284 900. Nearly three years ago
ne, with the assistance of Mr.. Mill, stole
$4,000 and more recently took the sums
brought up against him today. The $50,
600 first taken were discovered by the City
Treasurer shortly after the theft and made
good by him without publicity. He did
not, however, remove Rodman as be should
have done, but allowed him to
Continue His RObberfes.
In other words, for some mysterious reas-
ons, after finding him out be permitte him
to remain in actual control of the city f.
lon, 81 q. k1.a(k rr-f,;
the excitement of to-day has been commit
ted is yet to be learned. As to the first
operation of Rodman's it is morally certsin
that he was seconded in it by Mills, for BE-
sides finding their bank account increased
exactly that amount, il is now learned that
in three days after they loaned in private
way $4,000 to the Central Bank. Mills
and Rodman simply took $4,000 out of
the Treasury and divided 1t between them.
Whether they divided the amount found
deficient yesterday or not, remains for IT,
quiry. 1t is believed they did and the city
was at their hands victimizsd.
By a statement made tonight to Trt-
btme reporter, Mr.. Warren, the expert, says
he began the examination of the Trust
Compapy's books a week ago, but before
finishing them City Treasurer Sprague
urged him to examine the book of the City
Treasurer, because Sprsgue desired to as
certain the amount of the suspected deficit
in order to mske it good before the
facts became public. On examining the
book he found all correct, but on obtaining
the pass books of banks and trust COM
pany there from ether banks, were found
correct, but from the trust company show
ed only about 100000 balance belonging
to the city, when 100000 had been depos-
tied there, leaving deficiency OF
100000 dollars. Mr.. Warren subseqently
found certain cheeks, which at first had
been dishonored, had been paid, which
reduced the deficit to 100000 dollars.
Other sums were found to have been paid
which alternately reduced the amount of
the deficit then TO 100000 unaccounted
for. Warren reported accordingly on the
22d inst. to Sprsgue. The deficit OF $5O, ,OOO
in the Board OF Education account was next
discovered. Warren says, in looking over
the accounts of the city sinking fund which
was in the hands of Rodmsn as Secretary
of the Trust Company, he fund things
very crooked and the deficiency which g x
listed before the collapse Of the company
was made good by Rodman when the COM
pany resumed. Warren knows of no fnan-
cial trouble in other departments of Brook
lyn.
The Ex-Deputy Treasurer Arrested.
NEW YORK, Aug. 29.-City Treasurer
Sprague, of Brooklyn, has made formal
complaint sgainst Ex-Depuiy City Treas
urer M. Rodman, of emSezzling $230,OOO
funds from the city treasury. Rod nan was
placed under arrest, and two detectives de-
tailed to watch him a. bis residence.
Sprague will make complete statement of
the amount of the defalcation tomorrow.
Financially, Mr.. Sprague is said to be COM
pletely ruined by the infamous course of
his dishonest deputy.
TREMENDOUS STNSATJON.