New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-20
BROOKLYN JUSTICE.
THE TREASURY CRIMINALS SCREENED.
REVIEW or THE DEFAULTS IN THE Ciif ihhN'
URY, AND THE MEANS BY WHICH BILL

OI
conclusion it is be feared, that tho quality OF Jus'co
=, THAR civ "a somewhat strained and that the results
NJ the Reform movement are not COMMENSURATE WIN
the magnitude OF the effort which they have miue 10
shake off the burden OF misrue and to bring uhuer ioo'
those who have betrayed public trusts. Three ooih'n's
soners Of Charities fined 300 each, alleged pao'oo
stuer, acontcd on account Of defective Indictment
Gilrs and Badeau's trials postponed sprague "o
united and in fair way to recover large
-um from tho city, while his Deputy Is screened
rom punishment: the Bridge, steeet-paying' street
opening sewer and contractors rings, skuiklng AZ
safe distance from the cOuIts-a these failures anu
puny convictions have rendered Brooklyn people sAep
teal as 10 the results OF REFORM and tend to show that
misgoyernment is as safe as II is profitable. when
Brtton was removed the reformers believed that they
had gained the key the position and 1t cannot DE de
MED that they have been greatly disappointed especl
ally the OF the Spraguc trial review OF the
case however, will show that these results are largely
due to acts of BrtOn which appear designed to secure
that immunity for public thieves when they certainly
hare secured, and prove how much was gaiheu ior
Reform when he was removed The story OF the Treas
ury frauds which many details have probably passeu
from the memory of readers. Is retod below
On the morning OF Tuesday, July 10, o73 Elheloerl o.
Mills, prominent highly respected. and wealthy eit
zen OF Brooklyn identified with many OF the leading
interests of that city, member OF the Art Assocaon
and President OF the Brooklyn Trust Company was
drowned while bathing at Coney Island On saturday
July 49, the day after his burial. 1t was announced I'D
the columns OF THE TRIBUNE that he was dcfauter TO
the amount OF s25)OOO the Trust Company. The de
racaton it was stated, caused by his 0verdrawih9
his account with the Company, and their accept
ing worthless or unsafe collaterals for loans
for very large amounts. IL was aiso s'a'o"
upon tho authority Of Daniel Chauncef' acu"H
President OF the Company. that its capital wouid DC
impaired by the defalcaton probably one-hai' INC
whole capital sjO),0O) and the officers were lTes
dent E. $. Mills; VcePresdent Josiah o. Lo" Attor-
ncy and counsel, Alex. McCue; and Secretary, NJ L.
Rodman Attention was soon drawn 20 the Latter who,
as Secretary the Trust Company, had known all along
of Mr. Alls's dealcat0Ds and speculaons In support
of this belief, in communication with TRIBUNE re-
porter on July 20, Mr. Ro1man admitted that he knew
ALI about the oyerdrlfts but had remained silent be-
cause he never believed that Mr.. Mlls's affairs
were in o desperate condition. 1t appeared also
that the directors OF tho Company had LETT the
entire management OF affairs to Mr.. MINIS ana
had not exercised that supervision which they shoui
have done. About year before the deiaicauoh was
discovered they received an anonymous letter alleging
irregularities the part OF Ir. Ms but failed 10 pay
any attention to it to make an examination OF the
Company's accounts. Public indignation against MT
Eodman increased such extent that on July % he
WAS suspended from the position OF Deputy City Treas
urer which he also held Meanwhile Daniel Cnauncey
hal been appointed Receiver OF the Trust company
upon the application OF Judge McCue' IhlS
appointment was made, as alleged, in dis
regard OF the law which requires that an
appcai,n for the appointment of receiver shall be
made TO a Supreme Court Judge, and that the appoint
ment shall not be made until eight days after the
application.
On July &c the receiver, Daniel Chauncey, who
had been making thorough examination OF the
condition Of affairs presented an official report which
showed an Overdraf OF Mr. Mills for sl4OO ana ahother
of NJ T. Rodman for s3i 800 81 for which there we're no
coateras held by the bank, while among the call loans
were included 100000 Georgia State bonds ana
sl5o0Oo on New-IIayen. Midlctown, and WimaDtlc
Railroad bonds upon watch only a small amount
could be realized At meeting held by the stockholders
OF the Company Aug s. it was resolved that they
would pay into the Treasury of the Company so per
cent Of the capital stock held them respectively it
being that at least onehalf the members of
the Board should unite in Joint and several bond III
$4,000 TO make good the capital stock. until the
required should be raised Persons representing 321
out the shares OF the Companys sock subscribed
sumed by the Company Ripley Ropes Alderman from the
Third Ward Of Brooklyn, was elected President; Tue
resignation OF the Secretary. VI T. R)dman Wnch mad
been forced from HIM, was accepted ana Cnares Is
Marvin was appointed to I'll tae vacancy IN tap B9aaa
Aug % by the announcement that NJ. T. Rodmln was a
The defauer Deputy City Treasurer and secretary
OF the Brooklyn Trust Company had done his work with
only to credit the city and neglect to charge
the Trust Company. The fact was revealed
by WIN. Il. warren, the accountant, VINO
was requested by Mr.. sprague, the City Treasurer to
prone the financial condition OF the treasury when the
The smm OF slisOOO was shown been dur
ing R0dmaus partnership with Mr. Mills The TACT OF
the discovery OF the deaca0n OF the ctys funds
communicated to Mr. sprague. who claimed to be ignor
of what had been going on but stated that he had
about year previously. CITY Treasurer Sprague in the
presence OF Witnesses assigned to the city his entire
property his bon ismen, with one exception drew
their notes payable on or before Jan l. 1874 to make
good tne cias . lo,s, an ,o,, ,ro,o =. ,,,or, ry
Sanger $4,000 Robert L. Milford $4,000, James dwell
$4,000 John Patton 100000, and William q. Kingsley
that he was opposed giving notes principle and
II il should be shown that ne was responsible he would
pay the sum cash. II appeared subsequently from
held with Mr. Warren by TRIBUNE reporter
that many years had been the custom Of certain
persons to they desired the funds OF the City
Treasury amounting at times TO half million dollars,
only within year or two had any fraction OF the
the Sinking Fund $4,000 winch returned through
the Brooky Trust Company AS follows Aug g. 1872 slo
600; NOV. 49, 1872 s500o July T. 1879 $4,000 July 1873
s2OCO aud Aug o. ls73 during the suspension OF the
Trust Company, deposited by Rodman In the Fulton
Bank S3555 Az. Mr. Warren also stated that he made
a comparison between the Treasurers weekly returns
10 the Controller OF the balances OF city money remain
Trust Company ITSELF aud discovered monthly deficit
from JAM 1872, to August, 1873, averaging 100000
man was arrested and charged by Corporation
Counsel William c. De Witt with being defaulter.
In default or furnishing bail In $4,000, ne sent
Raymond-st Jail. Mr.. sprague resigned the office OF
City Treasurer a few days afterward, and Sept 4
Counsel DE Witt that he intended to try Rodinan In
few days, requested him ~ have all the
ready TO testify. Tue Grand Jury indicted Rodman.
and every thought that he would be tried and pun
ished.
the whole aspect OF AFFAIRS changed. He returned
from Europe Sept. TO- and five days afterwards made
an affidavit before Judge Morse charging City Treasurer
Sprague with embedding the cy's funds. The latter
was arrested and Dalled in the OF $4,000 Soon
come from Jail he pleased, and finally
was released from custody, it being understood
that he would be as witness against
Sprague, and reward for turning States evidence
would receive immunity from punishment. About a
afterWard Il, Barnard On behalf client