The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-04-03
New and Startling Revelations.
The Ring that Made the Money.
Curious Ramifcations.
The Investigating Committee at
Work.
Curious Ramifcations.
A New Way to Pay Old Debts.
What Next?

When the BULLETIN first touched upon
the irregularities in the Finance Depart
ment at the City Hall, it was in the full be-
lief that an investigation would show a
mere oversight or informality, and we deep
ly regret to say that an investigation has
proven that the rumors upon the street
gave very faint and imperfect idea Of the
corrupt practices which have obtained in
the Finance Department, and the con-
clusion is forced upon us that the Admins
traitor and his chief clerk have been en-
gagged in transactions which, if not crim-
nal are at least, highly reprehensible.
This is severe, perhaps, but we regard the
case as one demanding strong language, and
we propose to throw such light upon the
matter as will leave no room for doubt as to
the justice Of our censure.
1t appears that the investigation in regard
te the transaction in Metropolitan warrants
merely pierced the crust or Otter coating of
the trouble. and that the amount therein
brought to light was mere bagatele as
compared to tle larger sums that are in
volved 1t is no longer secret that there
has been
BIG RING
operating in city securities through the Ad-
ministrator of Finance and his chief clerk,
Mr. Harrison.
The head of this ring was Mr. jules Cas-
sard. cashier of the Germania Bank, who is
an intimate personal friend OF Mr.. Schnei-
der's, who is the president of this bank.
THE MoDUs oPERANDUM
bv which the money was made. Cassard
employed two brokers, Mr.. Fezande and Mr.
Vayson, to go out upon the street and piir-
chase what are known as city time transfers,
or the evidences of indebtedness which the
city issues to employees and to those who
furnish supplies; etc.
These time transfers were selling on the
street at some six or seven points lower than
Metropolitan warrants, and the margin VAS
sufficiently tempting. The brokers would
take these transfers to the City Hall and eN-
change them for the Metropolitan warrants
which were paid in by the tax payers and
the Sheriff, and then put the warrants upon
the market: Fezande always having an
unlimited amount on hand for sale, at better
rates t!an they could otherwise be obtained.
The money thus made was divided among
the ring, and that the officers il the Finance
Department should not have shared in the
profits of the speculation is incredible.
Among brokers this ring was as well known
and as much taken into consideration III
any of their transactions in city securities
as any other patent fact. In the transac-
ton of the Metropolitan warrants referred
to before, and which must now be regarded
as only part Of large scheme.
MIR. SCHNEIDER ADMITS
that he himself entered into the arrange
ment with Fezande; that he personally
took the S5400 worth of red warrants from
him, locked them up in private drawer or
locker, and personally took such Of the
green warrants, as they were paid in, and
kept them for Mr.. Fezande until he came
for them from time to time.
In view of the larger schemes which have
been developed, and in view OF facts which
Mr.. Schneider cannot refute or deny, we re-
gard that admission as FATAL and while We
have no disposition to PREJUDICE any man
vet that one transaction can scarcely be sat
isfactorily explained
THE FIRST INVESTIGATION
ordered by the Mayor did not 60 deel
enough, it only abradced, as it were. The
surface, when what was needed was ,deei
incision, and we must insist in the Interest
of the community at large, and in the IN
aul iuSticp thai
the present investigation shall not stol
short of a revelation of all the facts in thu
case. let the consequences be what they
may The Mayor, in our opinion, shouia
not content himself with an investigation
by committee composed OF members O
the Council. who may be regarded b,
the public as having some interest IN pro
tecting other members or screening then
from exposure, but should appoint
A COMMITTEE OF EXPERTS
to examine fully into the books of the I'll
nance Department and report any and al
irregularities, if any exist. 1t is best for tn
CITY Government, it is best for the credit 0
tiA city, it is best for the Administrator
Fi,hnce himself and his chief clerk that al
theNaylight possible should be thrown upoi
the matter.
In the course of our Investigations w
found a. well-known broker, who was pos
sessed of considerable information on tn
subject Of the late difficulties at the Hall
and from him we learned that he was per
fectly aware Of the ring which existed AM
knew perfectly well which Of the ring Z
approach and send to when he wanted war
rants under the market rates. Hislclerk ha'
seen receipts for large amounts Of time trans
fers, sgned by Harrison for Fezand and :
Dudenheter, receiving teller of the Germani'
Bank.