New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-18
TRIAL OF ELIZABETH OFFICIALS.
INVESTIGATING CHARGES OF FRAUD.
OPENING OF TIE Defence IN THE CASE OF LEG

INVESTIGATING CHARGES OF FRAUD.
OPENING OF TIE Defence IN THE CASE OF Leg
GETT AND LEEDS
The trial of Controller Thomas b. Leggett,
OF Elizabeth N j., and Daniel W. Leeds, clerk TO the
City Treasurer, upon the first OF twenty indictments
charging them with conspiracy To defraud the cy was
continued Yesterday in Judge Van Sycke's Court ~
Elizabeth The excitement in the city IS intense, ana
the courtroom was crowded. Prosecutor ray
on the part Of the State. opened the proceeuinss
George Farnham, broker of this city, testified ior
the state "on July 8, 1877 bought of Henry Aiken
exControler OF Elizabeth, five Elizabeth CITY Donds NJ
76lo and sold them the same day to Controller Leg
gett for So On July sold to Mr. Leggett or ~ t"o
bonds which had previously bought for TO- ana on sep
TENDER z 1 sold bonds to Mr.. Leggett Tor So winch
had bought for 49," This evidence, tie Prosecutor
claimed proved that Mr.. Leggett knew the market
price of the bonds to be in the neghborhood OF So Wth
ont interes at the time he them INTO the city or
100 with interest James Mcclure, cashier OF the
National State Bank Of Elizabeth, was recalcu'
and testified as to the nature OF MI Lug
cett's account in June, 1878. Theodore +. slyre
testified to having received from Controller Lesgeit ana
Cerk Leeds one bond ut par and interest in payment OF
debt Of the city to him. This bond be was opgcu u
sell for rs The state then rested its case
Fxudce Green opened the defence by concise state
ment 10 the Jury Of the facts TO by the defend
ants This" said he, ais the very hrst opportunity
the defendants have had TO give any explanation 10 tue
public but t seems If nothing had been spareu u
bring odum upon them and Others so that 10 person
nowadays can be an officer Of the City OF EhzabetD
without being exposed TO every kind OF caiumny Inc
public press has been used channel for sancer ana
oven the church has almost hurled its anathefnas
AGAINST Them Now what is the crime charged upon
thema conspiracy. And what Is conspiracy !
The statutes, Section 1911, say: E II two or more
persons snail unawfuy combine unite, confederate or
conspre or bind Themselves by any oath or obligation
10 commit an unlawful act such action snail DE terheu
conspiracy Has there been any evidence OF such con-
sntracy offered bly, the case ought 70 go TO inc
iury without evidence from the defendants. But we
think Will be better TO take this opportunity 10 tel
The whole story. We propose TO show that the market
price of bonds is nOtas thestate wishes us 10 qeIVe
the price obtained occasionally by persons anxious W
sell but that fixed by those who control the bonds lucy
are not be considered in the same hght as II tney
were on The stock market Further we snail prove that
500 OOJ worth of bonds sold in that year for par
and interest. and that Controller Legsett had no per
soual interest IN the transaction mentioned Ill INC III
dictmeut. u. 81,
In regard to Mr. Leeds he was not sworn officer Of
the city. He was merely clerk TO an olnceT auu c u
as much right other citizen to speculate IN DOhds
On June 26 1873 MI Lee d' was III MY ion So so for
Elizabeth city bonds. But Mr.. Leeds was not known 10
Vcrmilye Co.. and therefore De borrowed % r r Ies
gave Leeds his check, No 6,l92 for 80 400 and wtb ms
TIC bonds were purchased. Returning 10 Enza-
10th Mr. Harshorn, clerk in tho Controllers
Office, paid Leeds for the bonds. Leeds then az.
posted Leggetts credit the amount OF the toH bu'
The full deposit 42,7lS 90. and not S24oO Inc e1
nlanatiOn OF this II as follows Mr.. Lceds mas TWO
trends Mr. Lnuray and Mr. Potter. VINO have ally ayS
his hackers in such transactions receiving hs me
profits for their services. Alter paying them TINS Mr
Leeds had S3 90 left and he had no present use Tor
the sum and was indebted Mr. Leggett he deposited
IL with the go 400 the credit of the latter making
SO 7IS 90 ~ all This the whole truth In the matter
Prosecutor Fay objected 10 the defence thus outlined
but the Court decided 1t to be admissible -
John Marvel clerk in the Controllers ONCE, shoWed
that in 1878 and the half OF 1877 the prices OF
bonds varied % 100, and I'm nearly every case
interest was added. OF thirty-hve sales recorded
TWENTY-FIVE were at par and interest Upon crOsstK
aniDatlon the State elected the TACT that IN nearly az
OF these sales the city indebted to the receivers anu
gave the bonds in part payment Of the debts Thomas
g. Brown who In 1S77 and 1873. was one OF lie SINK,
Ing Fund Commissioners. stated thar during MS Term OF
Office the price of Elizabeth CITY bonds was par ana IN
terest the price being fixed by the Commissioners.
Charles b. Place. also Sinking Fund Coinl-si"nef ~
1873 gave similar testimony. and the Court ADJOURNED
Today.