New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-20
ELIZABETH BOND TRIAL.
DEFENCE OF DANIEL W. LEEDS.

DEFENCE OF DANIEL W. LEEDS.
he CORROBORArEs CONTROLLER LEGeETrs TEsrT-
MoNY AND EXPLAINS IHE SUSPICIOUS BANK
DEPOSITS TO HIS CREDIT.
The excitement at Elizabeth over the alleged
discovery OF frauds in the management OF the eftys
finances abatc aud in spite OF the storm yester
day Judge Van Sycke's court densey packed with
persons eager 70 listen the trial Of Controller Leggett
and City Treasurer ClerB Mr. Leeds The question OF
the guilt or innocence OF tho indicted officers IL Ia
claimed depends upon point. The profit upon the
sale the city par and interest Of three bonds which
Daniel W. Leeds had previously bought at 80 was
s637 CO. half OF which 1913 3d. The books OF the Ma
tional State Bank Of Elizabeth show tLat deposit OF
s3l 500 was made to M LeggetPs credit on the same day
OF Mr. Ieedss TRANSACTION and the State claims That this
Is evidence understanding between the
defendants before transaction. and tnat they are
therefore guilty OF conspiracy. The defence, on the
other hand explains Nj Leeds had partners in the
speculation Mr.. Potter and Mr.. EIIuray. to whom he
paid one half the profits and that the other sum OF
s3Is9s his own of tue profits, he deposited 10 Mr.
Ieggett's credit a. one OF dozen payments on
! IN outstanding debt OF some $4,000.
Controller Leggett first placed on the witness
stand and the cross-cxaminaou OF the previous day
was concluded. The books OF the CONTROLLERS office
again produced for examination, and the witness
was questioned "a Urce Of bonds fixed by the
sinking Fund Commissioners and to their habit IN the
matter To signing checks.
Daniel W. Leeds the other defendant, was then called
He stated that he clerk in the Office of the City
Treasurer a hc OF the transaction upon which the
ind ctment was based Hts duties, however. were on
trey distinct from those the City Treasurer lie told
his story of the transaction IN sraghtfcE~a manner
as follows: " On juno 20, 1878. went to New York
with Mr Legget for the purpose OF cutting OH coupons
aud comparing bonds the office OF the Safe Deposit
Compa Y. went with Mr.. Lcggett simply because he
did not wish to 90 alone, and had never been In the
habit OF doing At the Office referred to We cut OF
entered on the books such bonds as we
had brought with us. We then soparated, and don't
know where 4ir. Il ggett went. went down AZ Newest
! among tie brokers. There / found irieud named
Potter Who, with Mr.. EHufay bad previously acted
rs my hacker In business transactions. receiving half
tlc profits for his scrvces He told that NermilYc
( Co., ~ Nalis;. had some Elizabeth CITY bonds for
sale az low price. went directly TO VeImiiyo * Co.'S
Office and I found Mr.. Le scett there. | asccrlaned
tn number ~ bonds 80 b. tnrte ana the price So
requiring - 100 l went up 10 Mr.. Leggett who
Wa talking with member Of ,he hrm. and
asked him to lend me Lis cucck $4,000 promising 10
rctulu o. ae got back home. | do not tell
him what wanted The money for eScep that wished
70 trcpssa honds. M. l. -gstt took check from h's
p.,ko- and after 70 was up b. clerk. signed it,
IlIn H.. boar any mention TO Nh hegectt the TACT
! of the purchase hnd made.
burn ID. afternoon % the same day, after We lad
returned Elizabeth oored the bonds O. Mr. LocgeIt
for he sinking fund did no, know whether the SINK
ing fund anc purchase that day or not, but II u
va. not vac prepared carry the bonds until II was
/ arlc."
How were Won prepared % carry thcuT was asked
..IhaI e. that tini- 70 INV drawer ct!oaa some
53oOOodi of which $1,000 ODD bottom -ed 10 my moth'
| a-.aw. and the re.t To IN L'lIWIy T co not know
Where 3ir HurdY Is now but believe be - IN Europe
| Tlye c,-s.d MI Potter 90 be- subpmuacd to appear.
E,fl tlr-. gcnne.urn Interested with mo Iu the
purchase ri bonds both before and after tae date now
] aDfl f.s y0rfl1
tee tn bonds for the oty u ;h.re WAS enough money
! in the sinking fuid. found there was enough III One
one bond Dee took ac three bonds 10 par and inter-
c sc Usual pre- ~! ht mr. " lmenI w." - c5i ~
! I. ,,r dav Mr. Ifsgrtt very often mad
/ as ,sp dan,stts for nm. and later ir tunt
same aly deposited for hlm r,'a3 "a. Al me sals
time Deposited toe amount $500. and also e"ls o7
INV pari OF the pront the transaction 81 tnat day
wn. not iu need OF money aud Thought could NOT DO
better th4n make paymeut on previour deoi t. Mr:
Irgct The other half ~ tho Drohis gave to Potter
and EHury 20 whom was in ihc hhhlt OF wing On,
half the PROFITS on every Transaction IN consideration OF
their -eryir,s my surety. Returning rom "a Dank
! told Ir Lcvgett Of the payment bad made ON me
o,d debt. ana asked nm 70 MAKE o h",o 81 70, m
amount az my dcht TO him about $4,000 contracted
during the wear 1877 and he early Part ot I9's, whfn
! wlsn memorandum check. on the back OF which ne
Ind pllIti. debt fuli NJ. / ggctt know. hove, r
th. daily expecting 'p receive legacy VINO. anu
IT,, nc N ~, '' .-r} i6r ,t.~ 10 fnr Court OF an
Irggrit anything Whatever oar Of any proh on ANY
/ Transaction lr tune cNctp' iu the way that nave
sr...d plyfntIfs od dent. And We ucflc made
aus srfc ! agreement 20 fhc price n h0ud~ lie TOOK
them from me at eAntty the price from Others
i aud there prryioua understanding between ~.
On the e.o,.rraiunatiou tie qu'ston of Zoe correct
fe4nl4 te words 'utitcl sHur' we gam bioh.hi
no. luat being "a utt'flHt maft- or evidence. fii.
Leeds ave tndug ~ the FERN tL' drnh
! ton: " TIE price chat cnY '. obtained 40 q 'ulr ala
nprn market, of winch buyers hove notice and %
wacn bonds offered iu suGcieut qGanlil,s lo max
10 an object far buyers 90 attend ami hd' lhlS va.
.yd,uy - nser Tor the state looked puzZ' =. ana in-
rle..iuo Chan ,ed Ire subject The cross Tiuinafon
went 10 show that each payment ON Ne L"tdsS dcbf to
Mr. INggctt WAC exactly hlu toe trout uu some Trans
! lrrru IA city bout- ~ SIR. Leeds. After rfllns Tor
Frederick Potter who IVA answer, The d'irncn rested
Iue 40, Thea cll.d Grois, j. Baremorc, "bo ,ted
that about June - ISIS. Do WeHt 90 tnc tphif "ri
oiuce obtain rebate ~ assr rment lie c"uld NOT
oufau c4sn. 90 igrd to lake city Dons ~ gar
ana interest rfhougn fr hld inquired ~ NcN-l'rH a.
to the aIsrt value of me DDuGs and tuuud j. To- pc
| about TO- Henry Aiken. broker m Mhlls'
tsiinel that he puce he could obtain 40 th cate
wgs 7Ol2 THO STATE thrn rested Wi tie exception Oh
one witness, WHO VIII b" examined this morning, ana
the adjourned lbs In,rnluE ATTORNEY -"c' "a
stockton VIII mp for the prosecution md eNJudRe
Green for tue defence.