The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-26
THE KORAN DEFALCATION.

REPORT FROM THE ACCOUNTANTS OF LONG
ISLAND CITY--How THE TROUBLE OCCURRED.
At meeting OF the Common Council OF Long
Island City, held FRIDAY night, message from
the Mayor In relation to the defalcation OF John
Koran, the Treasurer, accompanied by report
OF the accountants, was submitted, but action
upon 1t was deferred until the next meeting The
report OF the experts, Messrs. Veysey and Fabian,
Is only partial one, and was only made that
action might be taken by the authorities pending
final report, In which they promise a careful
analysis OF ali the accounts and an aggregate of
the deficits. The Items of defaication given in
their report are only as instances OF the system by
which Mr.. Koran deirauded the city, without in
tending that they should convey any idea Of the ag-
gregate amount. The report states I'm the cash
receipt book for 1872 nearly every amount en-
tered varies from the amount credited, and, ex-
cept IN a lev instances, adverse TO the city,
mences with deficit Of So SO, while IN the last
entry for the year tine city Is credited with
1904 IL being SAL IL less than the receipts OF that
oay While the hrst wrong step is taken with a
paitry $5-only three per cent OF the receipts OF
the oay-ln less than ten months 1t has increase ed
TO SAL In one day, or fourteen per cent OF ne e.
ceipIs OF the Gay. The accountants give three
examples by months. In January aud February
the amount abstracted is SIPS 90; in May $l19 65,
1874 copying from the report) There was scarce
B day on winch the CITY received a
proper amount. NOtMltfStandlnR MT. Koran
mas failed 10 give credit 20 the city 50
uniformly, this is not alone the extent OF
his financial irregularities. On June % OF
this year we lind from the report JnaJ the Treas
urer was snort in his book account SIS 7O6 II.
The accountants are non-commlttal on the prob
able extent OF the defalcation, and nothing lur-
tner Will probably be ootaIned from them until
their mai report, Some further light can be
thrown on the transaction from the Mayors Mes
sage, which has not yet been made pubic. Alter
explaining what led TO the examination OF The
accounts the message states That certain books
have Deen abstracted from the oiiice no cash
book has been exhibited showing the moneys re-
celved, or from whom, or Tor what purposes ex-
cept one small book partially lled with other mat
ter, commencing Ill 1879 and ending January L,
1873. After this date the accounts are jOurua zed
from loose Sips Of paper kept as o kind OF
memoranda as there Is no day book, and posted
directly INTO the ledger. BIZ comparing Inc
items JournalIzeu with what evidence OF receipts
they have, almost uniformly tncy are for q Jess
amount and without any regularity OF percentage
in deductlon." The Mayor summarizes the
charges against the Treasurer as follows :-"rhe
treasurer secured moneys belonging to the city,
when ne admits he received and which can be
traced to MN py his receipts, and credits the city
for less sum. lie neglects to credit the city
with all the percentages on arrears paid. lie
Jailed 10 deposit the moneys collected as required
by the charter, He has FAMED TO produce certain
books, DENYING that ne has them, wnlch books did
at one time exist and nave disappeared, while the
loose memoranda are SAFELY Kept. The balance OF
cash in DanK ON the 18th OF June last was less
than the amount called Tor by the face oil the
ledger by $l3, 700 II.
oiuce tne first publication OF the defacation the
friends OF MIR. Koran have been actively at WORK
denying any irregularity, and IL Is understood
that ne claims certain percen iages and interests.
Ais theory is enectually set at rest by two facts.
First the charter provides, under section 1,
chapter =, title 8, that the Treasurer shall re-
ccIve an annual salary OF $4,000 III lieu OF all fees
and commissioner IL also provides that tue fees
for collection OF taxes shall be the same paid
by towns; but such lees and the interest ana per-
centages shall DC Tor the use OF the city. ANA
second. If Mr. Koran claimed certain percentages
why did not the money appropriated equal some
rate per cent or percentage OF moneys received ?
Inc utmost desire Is elt In Long island City ana
thougnout Queens county TO get at the bottom OF
the transaction and learn tue amount aud details
OF the delalcailOn.