New-York tribune., 1874-08-17
MUNICIPAL FINANCES.


on THE PART OF THE MAYOR CONTROLLER AND
THE CORPORATION COUNSEL
f Deaned Smith has begun a suit in the name OF the
Mayor Aldermen and CommOnalty OF the city OF New
York against the National Broadway Bank to recover
a. 900 with interest on 100000 athe rate Of per
cent per annum Sept. Is, 1863 to July 1874, ana
with interest thereafter S5OiO0o at per cent per
annum and the costs OF the action. The summons
issued from the Office OF the Corporation Counsel, copy
of which was served upon President Palmer Of the
broadway Bank nearly month ago, sets forth IN
detail the alleged grounds OF complaint on which the
action is based.
The first count rectes the relations OF the complain
ants and defendant. and aflirms that the Broadway
Bank in conformity with the provisions OF the act OF
the Legsatur passed April iG 1866 entitled "An act
to regulate the deposit of moneys in the city and
County of Newfork and In regard TO The officers hay-
banks OF deposit for public moneys IL is further
alleged that the defendant agreed at the time of It's
agreement it became ITS duty to pay out
OF account OF any moneys Of tine
city deposited in the bank and standing To the credit
of the city, any aud all warrants or orders for the
ment of money drawn upon the Chamberlain, signed by
the Controller and c0unerSgned by The Mayor aud also
any warrants drawn for the purpose OF making trans
Ter of moneys deposited TO some other depository 10
is also alleged that the defendant at the time Of the
designation "a such depository agreed TO pay interest
the daily balances at the rate OF per cent per
on the first of each month IL is further alleged
that prior Sept 5 1863 the defendant had received
as such depository moneys To the amount
OF sjOi,OO0. and then held the same for
the city, and that from time TO time before May ~ 1873
the defendant received other moneys OF the city
amounting o0O 10 be drawn and paid out only
as aforesaid. II further alleged that the defendant
after sept lG 1863 and before July 7. 1874, paid
OF the moneys received on warrants or orders
issued by the CITY Chamberlain sums amounting to
1t is further alleged that the defendant after Sept &c.
1868 and before July 1874 paid out on warrants drawn
upon the City Chamberlain for the purpose Of transfer
moneys aforesaid, sums amounting to more than
Ills further alleged that afterward and prior TO June
80, 1874 the Merchant National Bank, the Irving NJ
l0nal Bank. the German American Bank, the Glllatin
National Bauk the Manhattan Company. and the
National Bank OF Commerce, had been designated as
the de eposilories of the OF the city and the
county aforesaid and that by virtue Of such designation
the defendant had, PRIOR TO the day last mentioned
ceased to be a bank in which the moneys Of said city
could longer be deposited and held and stil holds
for the city the sum of sl0G anl that the defendant
held at all tines after the 10th day Of September an
average daily balance excess Of the moneys and
above all payments of more than si,o0O,00
1t further alleged that about July 7. 1874 for
the purpose of transferring the moneys held by
defendant together with all interest due thereon the
te I c IN Se form aR dsce d dcSdaS 30
pay over certain of the banks large of money
out of the moneys held for the city, several the
rauts or orders being for less than $2JOODO aud the
aggregate being SlOOiO0D; but that the defendant
fused to pay any the Oriers or to COM
ply with such direction or request and denied thai it
held any OF the moneys OF the city, indebted TO
the city I'm any sum whatever.
1t is further alleged that the defendant agreed at the
time Of Its designation such city depository to
out Of or on account of any moneys OF the comfy so
deposited aud standing the Of the county any
drawn unon the Countv treasurer of the coHn,v ana
also any and all warrants orders drawn
the bank for the purpose of trans
ferrins the moneys o some other DEPOSITORY and when
any of the warrants orders mentioned tins
OF action made payable to order to pay the
the proper ndOrscrs thereof and not otherwise. IL
designation of such defendant as a bank of
deposit, and in consideration OF the bene-
fits and advantages accrue To the defendant
from the deposit from time TO time OF the moneys OF the
county the defendant agreed TO pay interest on the
b4itv hal nrp a. 0Xpr
and above the payments by the defendant AZ the rate Of
four per cent per annum Is further alleged THAI from
time after pit i6 1868, ana before Nay ~ 1873
the Defendant such depository received MONEYS Of
the county amounting TO sl699O'OOO. 1t Is further
paid than si6j5O,OOO and that the defend
ant has OF all times May 81 1873, held and still
holds of the moneys deposited for ami account OF
the county s5,5JO,ODO. and was at the time of the
passage of the act consolidating the City and
County of New.YorK indebted to the County
Of Eew-York ia TN, sum- sum- and that the
defendant held at all times after Sept l6, 1s6s large
balance and above all payments therefrom. equiv
alent 10 an average daily balance OF sLOOoOOo it is
fur her alleged that by the terms OF the act OF conso
dlon the claim OF the county against the defendant
vested in the plaintiffs. 1t is further alleged that
posted with the defendant. together with all
existing repositories of the of the city. by
rants orders directed the defendant to pay over
fendant then and there refused to pay any of SAID war
rants or orders.
Wherefore the plaintiffs demand judgment against the
said defendant s6jOi OO with interest S00000O at
the rate of per cent per annum from sept 49, 1868 to
July T. 1874 aud with interest thereafter on 5iOOO at
the OF per ceLt per annu ana the costs of the
action.
STATEMENT OF PRESIDENT PALMER.
F. A. Palmer. President OF the National Broadway
Bank was visited on Saturday by a reporter Of THE
TRIBUNE and questioned respecting the suit He said
that the summons. with the complaint annexed,
ceyed nearly quite 80 days ago II was referred TO
the counsel for the bank, Messrs Davies Work. with
whom were associated ex-Judge Potter, eXJudge En-
ott and the Hon. Lyman Tremain They were told that
they could their time in answering the complaint
and il would probably be time before the case
would come prominently before the courts the counsel
we're most OF them out OF town vacations. He
thought that the complaint was the work Of Mayor
Havemeyer and Controller Green, and the result Of
malice on their part There had been a differ
ence between the Mayor and himself extending
to the first term Office OF the Mayor and arising from
refusal OF support The Controller and he had differed
about the office OF Deputy-Chamberain, when John
Foley was appointed, and Mr. Palmer, Chamberlain,
refused to recognize the validity OF the appointment.
The bank officials not frightened at this action.
They knew that they had good defense. They had
acted in strict compliance with the law ana would
prove this on the trial. Whenever sums OF
money were drawn out, it the order
of the proper officials, whose signatures were
closely scanned. The custom has been verify by
weekly comparison all vouchers and accounts which
have been paid by banks holding the city funds
the account OF the City Chamberlain the latter
ing all paid and filing them in the Controllers
Office in the Department Of Finance. comparison Of
the books Of the bank with those Of the Finance
Department was often made, and the balances
were found TO correspond. II there was any
thing wrong the city should look to its own
representatives for redress. The bank ia every
instance had receipts and vouchers for all payments
made and these could be produced. The statement that
Endorsements were forged he denied utterly. No money
was paid out except duly verified signatures, and
the accounts were each day verified by an expert and
found TO agree There could therefore be plea that
- alr1atnre. Xere fnrged unknown iheIn LIN no