The New York herald., 1874-09-18
The Commissioners Of Accounts VS.. the Depart.
ment of Charities and Correction.
THE CHARGES AND THE ANSWER.
Commissioner Bowen's Reasons for Not
Signing the Reply.
WHAT THE ALDERMEN SAY

'the Commissioners OF Accounts be and they are
hereby directed to make iull and thorough inves.
tigaton into the books, accounts and transactions
OF the Commissioners Of Charities and Correction,
and to report thereon to this Board at as early @
date as they possibly can." In pursuance of this
order Mr Lindsay J. Howe commenced o search
Ing investigation into the affairs Of the depart
ment, and by report to the Commissioners Of
Accounts dated August 27. 1874 made the following
DAMAGING STATEMENTS
F1rSt-That the books at the central offce Of the
commission were In such a condition that no ex.
ANIMATION OF them could be made: that the cash
book had not been written up since May 81, 1878.
ana tnat the statement OF the 0ookkeeper (Salaried
at $4,000 per annum was that he could not make
tne balance agree with the books OF the Finance
Department.
Second-rhat there was balance of nearly
$4,000 IN bank to the credit OF the department., OF
winch the commissioners were totally ignorant,
and which Was finally handed over to The City
fhird-Tnat upon assuming office the present
commissioners took no account OF the supplies of
goods on hand, thereby rendering a just cOmpari-
son between tie quantities used by them and their
predecessors impossible.
Fourth-That the balance sheets Of the depart
mt mt are merely duplicates OF She books of the
storekeeper on Backweils Island and the supply
clerks.
FVtn-That -four and other goods delivered at
the storehouse on Backwells Island are recetpted
Tor by the storeKeeper without peing seen or
SirU-Tnat the Commissioners have totally dis
regarded the provision IN the charter which pro-
vldes that when supplies involving an expend-
ture OF over 81 900 were needed the same should
he purchased by contract founded on sealed bids
or proposals.
Seue,tth-That original entries have been erased
and that an evasion OF the law has taken place
In entering the receipts OF goods al different
$1,000. To support this charge many citations ase
made and particulars given.
aEfghth-Ihat in the confusion ensuing from this
irregular manner or doing business Messrs. E. w.
Coleman Il Co. were overpaid $19S0 TOR 300 barrels
OF nour and that In the supplies OF groceries the
same lax system has prevailed.
Ninth-1hat Charles q. Cornell. Purchasing
Clerk OF Meats lor the Board, received, between
Soyemoer TO- is7s Is and md June 2e 1874 salary TN
OF more than double the amount paid TO the Presi-
dent OF the department., and contrary to law.
ACTION OF THE GRAND JURY.
These and other grave charges formed the basis
of an investigation by the Grand Jury. They re-
1erred the charges to His Honor the Mayor, who
vesugated them, with the aid OF Mr. Jonathan Stur-
ges; but upon the latter being obliged to leave
Tor Chicago, owing TO illness in his family the
whole matter was referred to Messrs. William A.
oneratng all the Commissioners.
Soon alter Myer Stern, one Of the Board, was
conversed with by a HERALD representative, to
whom he SAID "that every transaction was open
and abovebOard; that he actually saved the city
money by buying cloth from Mr.; Louis Sternbach
and especially IN using the Bellevue Hospital
coupe IN making his round OF visits to the PRISONS
Fity-seventh street, Jefferson Market and the
Tonbs; finally that the
GRAND JURY HAD ApoLoGIzED
for ever having suspected the commissioners at
ALL" He lurther SAID ''tnat the whole hostility OF
Mr.. Lalmbeer, and that the former gentleman,
when he came to make his examination OF the
accounts, inquired into the domestic affairs of the
Commissioner, whereupon ensued quarrel, out
Of which Mr.. Howe's opposition sprung.
TO all TINS u.s. Mr.; Howe gives an UNQUALIFIED denial
caused by the TACT that his examination disclosed
the nour frauds
Messrs. Ii. X. Thurber Co., wholesale grocers
state that they sold even $4,000 or 5000 worth OF
groceries to the Commission during one week, but
say they never sold more than $1,000 worth at a
time. except in one instance, when the btu was
81 1885, tnen they had to lose the $50 before the bill
was paid.
bers street Ohe latter a son-lnlaw OF Mayor Have
meyer, say they have sold quantities of'butter to
the department. but every transaction has been
at the lowest market price and the books are open
for Inspection; no bill amounting TO over $1,000.
The COmmfssiOncrs' Answer.
The answer OF the Commissioners OF Public
Charities and Correction to the report of the Com.
missiOners OF Accounts was presented to the Board
Of Aldermen yesterday by the Committee on Law.
The following is an abstract of the answer. The
Commissioners commenced by a history OF the in
quiry and the action taken by them to obtain an
investigation. They claim that they took the
Initiative for this inquiry and say
The truth is, and 1t was well known to the Com
mlssloners Of Accounts, that Investigation into
the accounts or our department was urgently re-
quested as early as September 9, 1873, by the ioi-
lowing resolution OF our Board. adopted on that
day and forwarded by our President to Hon. John
Wheeler, the President OF the Board OF Commits
siOners OF Accounts.
In reference to the cash balance at the Third
National Bank the Commissioners answer as fol.
lows:-
1t is wholly false that this balance of S. 500 o.
to the credit OF the apartment in the Third No
tional Bank was discovered through the efforts OF
Mr. Commissioner Howe. Its exis tencc'was known
after their accession to once. And yet Mr.. Howe
has the efrontery to say that he found that The
oommlssloners ssh M we're not aware Of It. existence.
discrepancy between tue accounts OF the N-
nance Department and our department. we
the settlement OF this difference between the two
departments; and as this sum DOre interest at
lowed on all the city deposits, the city did not
su1er any loss or damage by this course. More
over, the transfer OF tlis SUN 70 the CITY Cham.
beraln was our act, and not MIR. H0we's.
THE BOOKS OF THE DEPARTMENT..
With regard to the condition OF the books OF our
to say and 10 much more TO imply or insinuate,
we beg to say the whole matter is briefly TINS AT
books OF the department at the Central ONCE had
not been properly written up balanced. We
kept the bookkeepcr whom we found In charge
along for some ume,' hoping and expecting thag
he, the only man who had any knowledge OF them,
would write them up and put them In proper
accession to office. When we became satisfied
that he was unable properly to post and balance
the books we obtained the services OF q competent
man, VINO now nils MS place. and who is rapidly
bringing them into proper shape and order. Per-
haps It would have been better II we had sooner
arrived at the conclusion that the old bookkeeoer
was not competent for his place. But we are con-
ndent that the city has not been injured or dam
aged dollar by this mistake in judgment on our
part, nor dpes MT. Howe show any SUCH injury or
damage, although he seems to have had she mat
ter under investigation for the net SIX months.
TIM SPECIFIC CHARGES
We now proceed to take up Mr.. Commissioner
Howe's charges In order.
The first charge is that the present Commission
ers, when they entered upon their duties, made no
inventory OF the stock or property on nand be-
longing to the department and received over by
the present from the old Board OF Commissioners.
1t has been the practice or the department to take
an inventory OF tho stock Of sappiies on hand on
the lst OF January IN each year.
The afOrahouse books had bean closed and such