The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-04-15
Report Of the Investigation Committee
Resolution Of Censure.
Schneider's Speech.
A Committee Of Five Citizens to Con-
tinue the Investigation.


the head of new business.
Mayor Wilt then read the report of tn.
Investigating Committee.
NEW ORLEANS, April 13, 1874.
Hon. Louis A. Wilt, Mayor:
The undersigned committee, appointed Oh
the I'd instant, at the request of the
Hon. Louis Schneider, Administrator OF
Finance, to examine into the charges
against him, contained in an article of the
New Orleans Bulletin newspaper of the
same date, under the heading of :. More IT.
Irregularities at the Hail." and further re-
quested, in your communication of the Sd
instant, to extend the investigation into all
alleged irregularities in the Department OF
Finance, beg leave respectfully to report
That the testimony of those whose names
were furnished and who responded to the
invitation Of the committee to give evidence
upon the correctness Of any Of the charges
made, has been taken. The bulk of it is OF
a circumstantial or hearsay character OF
those to whom was traced the origin Of such
rumOrs as that the influence Of the Depart
ment of Finance was used in the interest OF
q ring; that the favoritism shown to few
afforded them advantages over the many in
operations in city securities. Those who
were suspiciOned as implicated with the
fatty denied it, and exonerated him from
having ever had, with them, any dealings
wherein he was personally interested.
Certain certificates Of appropriation, amount
ing in the aggregate to SAG 80. unindorsed
in contraventiOn to ordinance No. 1161, Admin
istratiOn series, were handed in to the De-
partment of Public Accounts on the Goth of
March, 1874, from the Department of FL
nance, and returned unaudited on account
Of their infOrmality.
Upon calling at the Department of Finance
we were informed by the Administrators that
in the month Of December last check of
Barnett, had been received for the sum of
$1400 in payment Of taxes, which was dis
honored by the bank upon which it was
drawn; that endeavOrs had been made to
collect the same, but without avail; that in
the interest of the city, to cover the loss
sustained thereby, with the surplus Of cash
received in the collection of taxes, amounts
of scrip were bought to be used in settle
ments, as handed in, that first instance. to
the Department of Accounts.
The Administrator exhibited to us the
marginal memOrandums of his private
check book, showing of whom he purchased
the scrip, and rests his case entirely upon
bis action in the premises, as an attempt, in
a business way, to make up a loss by such
outside transactions which must otherwise
be incurred.
We are forced to determine that the course
of the Administrator was irregular, and that
he violated said ordinance.
An exchange of about $1,000 of green me-
tropolitan police warrants was made for a
like amount Of red, between the Admins
traitor of Finance and Mr.. P. 0. FaZende.
The former warrants were worth upon the
market about three points above the latter.
This transaction was done at the earnest
and persistent request Of Mr.. FaZende, as a
personal faver, and who testified that the
Administrator participated "nOt a cent" in
the profits made.
The metropolitan police warrants which
bore the conceling stamp Of the Sheriff,
which were received at this Office second
time in payment Of taxes, and that which
was bought by Mr.. Levy, also with the same
stamp. have been traced back to Mr.. Fa
zende and the operation above referred 20
between him and the Administrator of Fl
nance THIS is another irregularity for
which the Administrator is at fault.
Accompanying herewith we hand yon the
original testimony taken by the committee,
Of which we hope that this report will
prove correct summary.
Respectfully,
j. CALHOUN,
Administrator of Public Accounts.
B. M. TURNBULL,
Administrator of Commerce.
CHARLES FITZENREITER,
Administrator of WaterwOrks and Public
Buildings.
r. BREWSTER,
Administrator Of Police.
The report of the committee having been
received, it was ordered to be spread upon
the minutes.
Mr. Schneider then read the following
statement, which, on his motion, was also
ordered to be spread on the minutes:
Mr.. PRESIDENT ask the floor for per-
sonal explanation relative to the report OF
your committee, with the respectful request
that my remarks may be spread npon the
minutes of the Council, along with the
report.
Feeling aggrieved at the vile and scur-
rilous accusations made against me, both
in print and by street rumor, l called your
notice to the calumny, and requested that
you would appoint "a committee OF lnves-
tigatiOn to examine into the charges pre-
ferred.
The committee appointed by you have
summoned witnesses, and elected all the
testimony they could which had any bear
ing upon the calumniOus rumOrs OF the
street, and which had found their way into
print, under glazing captions: and with all
manner of cunning exaggeration, respect
ing the Finance Department under my
charge.
The report of that committee has been
made to you, and by you presented to the
Council. After the examination, they nave
found nothing that shows irregularities IN
my department other than what ! voiun-
tarily and readily communicated to them,
before witnesses were examined
As to the first charge, that of exchanging
red for green metropolitan warrants, VIII
state to the Council, as l did to the commit
tee, that made that exchange without any
serious reflection. and that in the transac
ton the City Treasury neither gained nor
lost.
AS to the second irregularity, give to the
Council and to the public, as l have gwen
to the committee, my positive assurance
that the transaction referred to was simply
and wholly for the benefit Of the city, ana
to recover loss of $14OO; and am certain
100 1