, 1876-01-02
HEAVY DEFALCAfl0N.
Flight of City-Trcasurcr Bork OF
Buffalo,
LeaTing Deficit in tile Municipal Treas
ury Of Between 100000 and
$>4O0. 900.

l ~~
! faulter and had absconded.
For interesting information in reference to
Mr. Bork's movements, bis confession and his
| views OF the situation. which are altogether
moro satisfactory than the thousand and one
rumora that drifted through the streets yester-
| day, We are indebted to
| HENRY ". BOX, ESQ.
a gentleman who is a heavy loser by Mr. Bork's
| fei lre aIr. Box appeared OF the Office OF Lyon,
LUX l. Co., little before O'Clock last evening,
and his face revealed the fact that he kne"
moro of Mr. Bork's affairs than any other per-
! con who had assumed to discuss them during the
| dav. The gentleman in question had trusted
Eork implicitly, and the last dollar he had IN the
| world WIS Bork's to command. Upon being ap-
| preached By the writer, Mr.. Eox remarked: II
| spent last night with Mr. Bork at Suspension
| Bridge, and lie has gono to St. Cathatlnes.
Canada"
Early in the week Mr.. Dork informed Mr..
Box that he was going to Nav York for the pnr-
poee OF negotiating somo OF his bonds and mort
cages. He was anxious to raise funds with
which to start the projected Union Bank. He
WAS pressed for money ha said, but II he
could get the bank started on such funds as
through all right. Mr. Do1. very mnch
fatigued by his efforts in the Freebury case
and needing rest concluded to accompany Mr.
Bort to New York. aud according to agreement
met him at Lyon, Bork l. Co. office at = o'clock
90 Wednesday evening. From there they took
carriage for the depot. stopping at Mt. Eo"k's
house before driving thero- On the waT Eork
remarked that be had nlanv things to say to him
ABOUT HIS BUSINESS.
and Just before reaching tho New York j. Erie
to Canada and he wished him, Box. to accom-
pany him as far as Suspension Bridge. AR: Box
SAW there WAS trouble; Bork grew excited and
gave him to understand that his affairs werd IN
bad shape. Mr. Box being financially
scnted to accompany linn, aud on the train no
placed in his hands q general assignment
Of nll his property for tho benefit OF bis cretl~
itors. The Assgnees named were: Henry W.
Blk (attorney at Ia y. John Mcs!auus (real es-
ta,el, Alexander Martin (insurance), and George
Baldus (contractor) He also placed in his
hands several PAGERS, two a100 BOMBS belonging
to the City Treasury, and several notes for var1-
ons amounts which lie had received in pavsneut
Of ta1c5- Mr. Bork gl;o to Mr. BOX an eslnate
Of the
AMOUNT OF HIs DEFALcATroS,
which he plAced At ::3)o.03u. IIeait no: assume
to be exact IN his figures. and Hr. Box was dts
posed 10 think the deficit in ihe Treasury Would
not fall much short OF $3.50, 010
Tho embezzIements began, according to his
confession to Mr. Box, soon after entering on
his duties Is Treasurer, and continued uanter-
rnpsedIy through both his terms extending over
period of focr years. The deficit he co1sld-
cred about equally divided between both terms.
thus rendering each set of boudsnen lia5.o for
m equal anaouus OF the deficit
THE METHOD OF HIS OPERATIONS
may be briefly summed up al follows: Mr. Bork,
.ho held the business OF his Office closely in hrs
own hands, was in the habit of substituting for
the funds received oy him in payment Of taxes.
ha personal ehack on the bauk OF Lyon d
Co. These checks, although taoy called
and Iaf
with terrific rap.lity. where never presented to
Lyon l. Co., but were carried along year after
year as cash, Bork also in the habit of taking
notes from responsible part1es-and irre5po1sl-
bic ones too. for that matter, recelptlns Tor the
tax and substituting for the notes SO received
the uufasins check on Lyon j. Co. Il IS
estimated that during his four years in
tho Treasuryship sons 100000 a year
were paid for taxes through the real
estate and banking offices Of Lyon Co. and
Lyon, DorS t. Co.-one and the same establish
nent, Notwithstanding the difference in name
and for the anouoes 80 received, or large pro-
portion Of them these checks were subst1tuted.
The entire liabilities OF the firm named Mr. Bork
gaye to aIr. Box as 3sD,0 ,030 and in this cocnec-
lion he tooa occasion to say that that institution
WAS
Rotten TO THE CORE
Mr. Dork expressed sincere regret that SO
good man ~ 3lr. John alc3{anus. who had
come into tho firm surprising it to be prosps'.
ous one, had been induced TO risk bis hard
earnings and the savings OF years in the con-
ceru- lie was sorry that he had held out any
inducements to hlr. Mcllanus to become
member Of the firm and thus bring disaster
upon him. .-
Sir. Eox asked him how it WAS that he suc-
cecded in avoiding Dissection b: tho Comptroller
aud those associated With him. l1a replied: IT
could cheat the Devil himself. Bailey is 3
suspicious old man, and Smith is most careful
accountant, but they have never had the slight
est suspicion Of me. Yesterday afternoon. when
vent over to the Office and obtained TWO city
orders, they believed me when told them Was
going to New York. They never suspected any
Thug"
In reference to the Comptroller, he said he
knew nothing about the condition Of his cssb
count. lie said that when tax was certified to
As being paid and receipted for to tho Comp
troiIer, that officer had means OF knowing
whether the Treasurer had taken cash or note
for it. Bors said that the money had gone
INTO REAL ESTATE spEcuLATloSs.
and had esc8ped from him in other w3J8- James
s. Lyon, be said. Owed him sG0.0oo, and there
were other parties owed him in various amounts
aggreaating large sum. He had upon his life
an insurance OF 800 600, ope-half payable TO his
wife aud family. and tho other to himself In
his great distress and agony be wished that God
would take him that the amount might so to the
relief OF bis creditors.
liz, Dork's ass.ts he estimated, in his talk
With Mr. Box. at 5500,000, providing his real
estate could be properly nusz ed. His property
consists pracpallv OF real estate. and bonds and
mortgages, and under pressure these would fall
far sheft OF the valuo put upon them He
Thought that his bondsmen need not
guper If the city would deal leniently with them
bit that il it enforced immediate payment it
Tould bring ruin to many Of them.
MIR. Box thought that Dork had no mora
money With him than $3.50, aud he stated to
that gentleman that
He WOULD RETURN 70 THE C1TT
when the storm had blown over. He was willing
to stand his trial and suffer whatever penalty
- - law might in1ic., hut he could not nov meet
y. Tue asiS1ds who had confided in him and to whom
no nau ooso.1.Lht Pc .Lht trouble. By Mr. Box he sent
o.1 1 ~ s ~ R. Clinton, tho City Comp
'fouel. "h!cn Is astol1oHs:
nj e,' M ,Ss to"a rseaon last e7s told you should but
more lament my situation than -'b he1ievn NV
bittcrest ena1ny will not accuse of - {rts+;r+ii
wrong. am not only sorry for thosa who i.v s1,,I
from pecuniaEy embarrassment On accouut Of lny axs
but those who have been associated with me in the
administration Of city at1ars fearing m uncharitsble
world may think you and others have not done their
duty 1t is only Justice to say that alone an respos-
bic for the situation, anI take the first opportunity
| to a1onezate you most fully. Respectfully Yours,
JOSEPH BohK.
Tbs men most seriously affected by Mr. Borks
defalcation and failure, are