New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-17

church memDer. lie was peheTh poohhO"p'
Judge Allen, aud retained 10 office By Conttolfr
Hopkins, the recommendation OF leading citizens anu
Republicans OF Albany. II It is OF any importanco II
may be added that both the bookSeeper and his ndorsor
were and are Administration Grant Republicans. lie
has been suspended from office by Mr.. Hopkins pending
the examination which IL equivalent TO admission
that share of the blame. at least, belongs 10 him.
Although the emhezzlcmen has occurred in Mr..
Rainess department he fears investigation OF ms
conduct Treasurer whether IL pertains TO his honesty
his vigilance aud the discharge Of his duties
Neither does he have any apprebensions that might
arise from a certain Republican Ring that exists III
Albany and with which Phelps's dealcaton may turn
out TO be less intimately connected IL mas Deen
said that Mr.. Raines should have reinaiOed
more constantly In Albany, bat the faots
Will show that he has spent more Of his
official term here than any state Treasurer
for the last twenty years II has been said that he
should have appointed more ygilan deputy. bnt ire
gentleman who holds that Office Cdr Fulton PauD was
recommended to him by Gov. Dix Controller Hopkins,
Robert H. Pruyn, and others OF like standing and Is an
Administration Republican Of the straightest sect II is
due Mt Paul 20 state that he has been unwe most OF
the Summer and physically ineapaoitated for constant
attention TO his duties. He ia about II resign his ONCE
and will be succeeded by a whom Mr. Raines would
have appointed originally but for the urgent solicitations
on behalf of Mr.. Paul by those above pamed.
THE WAY THE TREAsURERs ACCOUNTS ARE KEPr
1t may DO of interest 70 the public, at the present
time to get general idea OF how the accounts OF the
State Treasurer are kept, and the banks In which
peoples money deposited. In the first place, there IS
the General Fund" by far the largest OF the State
funds the account of which kept with the Controller
The moneys belonging to this fund arc distributed
among the Albany banks as follows To the Commercial
National Bank one half the Mechanics and Farmers
Bank, Onequarter; to the New-Iork state National
Bank, Oneelghth and to the Albany City BANK
Oue-eighth Next is the Free School Fund" the
account OF which is kept with the superintendent OF
Public Instruction. All the money belonging TO this
fund is deposited in the Commercial Bank The next s
the Canal Fund" the ofwhlcb kept with the
Auditor The distribution OF this fund is as follows;
To the n. Y State Bank, the Merchants Bank, the
Albany City Bank, and the First National bdnK,
ope-auarter each Beside the above there
numerous small bank accounts for different funds,
making in all IA different bank accounts
with 81 COOOOO hand at the present time All these
accounts center the State Treasurers Office each with
duplicate Of books requiring only careful examina-
ton to detect immediately any fraud with the e1cep
ton OF the account kept with the Controllers Office all
the found 10 be perfectly correct ana had
there ordinary vigilance the part OF the book
keeper In that office, fair TO that The defa
cation would have been impossible.
Some erroneous statements have been made with re-
gard to the way in which the embezzlement came "a be
cashiers books not has been reported because he
had any suspicious OF Phelps but because there
complaints OF faYorsm IN the distribution OF deposits
among the banks. He had given strict orders that tho
ratio Of deposits TO the various banks should be as above
stated aud there complaints that the COMMERCIAL
known here as Pruyns bank-was getting more than
ts share. He therefore directed statement 10 be ur
nshed by the bank and Phelps knowing that this state
ment would contradict his report OF deposits that had
1ofh ofu N aHN la
bank and thus expose hs embezzement, took the fret
train for New-lork.
PHELPs's AHTECEDESTs
Many erroneous statements having been made IN the
newspapers with regard to the anecedents OF Phelps
The TRIBUNE correspondent visited the prisoner 10 his
cell this morning. and obtained from him the following
record Of his past lie was born IN Oneida County
this state raised In Monroe County andis AZ years old In
1852 he was appointed Of the Printing Telegraph
Company NewYork City, which position he held Two
years He then went to Washington as manager OF the
same telegraph company Ia that city, where he remained
five years. He next took the position OF agent cashcr
and supernte nden OF Adams Express Company
I'm the Southern States which, after the began was
known as the Southern Express Co." He renamed In
that position through the and to 1866, when ho
went 10 New York City and connected himself with Milo
Hatch as banker and broker Hatch having previously
held the position for IS years cashier Of the MecAan
year. and then went to Florida take charge OF the
Southern Express Company again, With his head
quarters at Jacksonville. From tha5 position be was
called to take the Office of ticket agent OF the Western
and Atlantic Railroad Company, with his headquarters
at Atlanta, GA.
Thence be came back to NewY0rk CITY and was ap-
pointed by Collector GIinnel a wegher In the Custom
house While holding this position he was charged ny
certain personal enemies be says with selling Offices
ftIhp ariu had
missioner Osborn when tho charge was refuted aud
proved 10 be malicious and he honorably acquitted
and restored to duty pay in the Customhouse mis-
says is the only charge prior TO Tie proseht QUE aI
was ever made against him. On the accession
OF Mr. Murphy 10 tho Collectorshlp, Phelps was
removed from Office for political reasons, as were many
more of Mr. Grnnelrs appointees. He then took posi-
ton for few months in the Chief CLERKS ONCE &c Police
HEADQUARTERS In New-York from wliob place he came
to Albany to take the Office OF MoDeyiCerk or Cashier
in the Treasury Department. He Was appointed by Mr.
Raines he solicitation and on the recommendation
of a large number OF ptominens citizens or monroe
County and other parts OF the state.
The statement that his chief hacker was ID. ID. :.
Brown Of Rochester Mr. Ranes says Ia entirely etrone
GUS as is also the statement that Phelps Il relative OF
that gentleman. Mr.. Brown was only OF tho many
who recommended him IN the strongest terms
for the position All OF his scquaintances in fact re-
grded him. I'D to time OF the discovery OF the pres
emit defaleaton as Of the srictesi integrity. and
entirely Trustworthy in every respect They say no
ia the last man whom they would have suspected
Of being dishonest" SO high did Ee stand
with leading citizens and state ofnclas IN
Albany that he had already pledged the support
NJ Robert H. Pruyn Controller Hopkins. anu Others 10
retain him In Office as,cashier In Mr. Raines should
be defeated for the Treasurysbp the coming election
He WAS al Administration Republican When appointed,
and continues so at present, aud no man holding
cerkship in Albany surer Of reteoton In office or
promotion TO o higher position than Phelps was up 10
the time oflthe late discovery.
As TO the that led to bic fall or his methods OF