The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-10-17

ing.house Of Its own to clear the amounts
arising between the various local offices in
drawing and pay ing money-orders, and the
color Of the ink used is, as in the British
railroad clearinghouse mode OF use-all the
statements Of orders sold are written in
black ink, and Of orders paid, In red {; and
a q consequence of the system the final
amount to be paid to or collected from each
Office Is reduced to the minimum.
HEAVY DEFALcAr1oN OF A STATE OFFICER
IN NEW YORK. - Albany, October TO-
Charles FL. Phelps, cashier in the treasury
department of the State, was arrested in Jer.
sey City yesterday and brought here, charged
with robbing the State treasury of an amount
Of money supposed to reach 100000. The
State deposits are divided between five or
six banks of the city, and It was the custom
of the banks to send to the controllers office
on the first of every month duplicate of
the treasurer's handbook, which passed
through the hands of the general book
keeper The banks some time ago COM
planned of this extra labor, and on Phelps
giving the assurance that 1t was entirely
unnecessary the general book-keeper
dropped the duplicate set without the
knowledge Of either the controller or the
treasurer. Thus but one set Of books was
left to be manipulated. The general book
keeper was next induced to accept in some
instances the statement Of the cashier of bal
ance in some one Of the banks without pro-
ducing the bank-books. Phelps then charged
large sum to bank which by its own state
ment, which was called for few days ago
by the treasurer, showed that it did not
have. 1t appears that he also obtained cash
upon some of the drafts RENTED to him by
county treasurers. These drafts could not
! legally be cashed without endorsement Of the
! treasurer or bis deputy, and any bank taking
| these drafts upon the endorsement Of the
cashier only is liable, and will be compelled
, to refund to the State. The treasurer is Of
| opinion that the State cannot be loser.
When Phelps found that his operations
were about to be revealed he fled from the
! State, and wrote note to the treasurer adj
, hitting that his accounts were not entirely
correct. Mr.. Raines followed him to Jersey
CITY, and in an interview which took place
Phelps claimed that ii allowed his liberty
for two or three months he could refund the
entire amount. He said he had used the
money in speculatons in New York, but
not in stocks, and would not say definitely
to what purpose he had applied it. He also
admitted that he had accomplices, but would
not give their names. He claimed that the
money was still largely under his con.
troll, and that he would soon be- Re
to refund say 100000 of the amoUdt.
He desired to be left alone, that he might
be free to obtain and restore the money
and propositions were also made from legal
sources to adjust the matter on some basis
of a compromise. The treasurer, however,
would not assent to any arrangement which
either settled the offence or permitted the
offender TO remain at large. He put de.
tectiye on the track of Phelps, Obtained the
necessary papers from the Governor, and
Yesterday had Phelps arrested in Jersey City
and brought here. -
Phelps was appointed cashier by Treasu'
rer Raines in the spring Of 1872. He ba6
occupied position of considerable trust in
the Western Union Telegraph office, Wash
ington, and also with Adams Express Com
pany. He was always considered trustwor
thy by everybody knowing him.
lBy Telegraph
NEW YORK, October 16.-Charles 81
Phelps, the defaulting cashier of the State
treasury, was brought before the Polic'
Court at Albany to-day for examination, bu
at the request of District Attorney Moal
the case was postponed till Saturday, ant
Phelps remanded to jail.