New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-08-04
CITY FINANCIAL METHODS.
A PRESENTMENT BY THE GRAND JURY
NEED OF AN EXHAUSTIVE INVESTIGATION OF THE
FINANCE DEPARTMENT.

A PRESENTMENT BY lhE U'A1ND 'oiA
NEED OF AN EXHAUSTIVE INVESTIGATION VI iND
FINANCE DEPARTMENT.
The July Grand jury of which Sylvester W.
Comstock was foreman, aud f. w; Rhlnslan ,,s,
secrstary was discharged Yesterday by Judge Gil,
dersleeve Charles 5. Smith. Benjamin ii. Field
and other members OF the jury desired 10 MAKE u
fuller examination Of the affairs OF the
office but Judge G,,dersleeve was unwilling 10 e1-
tend the term of the jury, az much confusion might
arise from such unusual course OF procedure.
Judge Giderseeve, in discharglng the Jurors COIN
piimented them on the earnestness and INDUSTRY
which they had shown. and suggested tnat ius Q
grand Jury might be able to take up the work OF IN
yesiIgstion where thew had left It, before tney
were discharged, the Grand Jury handed TO the
Judge the following presentment: ,,ou ,orora,rs
fhe coupon frauds the honor 10 say thst tho
Fourth National Bank consented TO appoint an as
proposed BY this Jury but they reSre 70 This
enterains the firm CONVICTION that the pubic
requires thorough ot under the as
sstance OF the summary powers vested IN
and that IL should be iv Dy The
tied time remaining at the a .IPIat " s smS
Grand Jury preS hsn.,vs she eIS@inanSn OF the
books and methods of the Controllers ONCE put tney
ottciaIv connectei VITA the Department. They have
arrived at the following conclusions; 1900 had
been made by responsible bank trust company as
was formerly the practice, no loss could nave accruea
the payments for 9 5aSm ssSn
made by Womb 5Se have been proteced from loss BY
large bond of the Cnamberlain wnca dne jury oeNe'o
wonld apply to cases IKE the Carfoii uian that law
should be passed prohibiting the issue o. tne 1
debteduess other than registered Iorl anu tney
rseommend the conversion Of all outstanding coupon
bonds into registered SOCK ,. A., co,a r,,rr
they Believe nat system aud methods OF bo9kkeep
ing in the Controllers office aud should be SO changed
and improved as 70 iqSAe repo'i''" u '"o w
Andiew Ii. Green and Deputy CONTROLLER Storrs
ID flaE Graz |
n communication addressed TO the committee wnicn
had in charge the postponed investgatlon, TX
Controller Green gave an acconh. o. ,n9
might have fallen INTO the hands of Carroll or other
clerks and been used for dishonest purposes. MT
These bonds of the number and amount OF which
have neither memorandum nor memory, mad been
printed before into the office OF Controef put
few had been signed by my predecessor, though lac
snile Of his name was printed on eacn o, seeo "
coupons at the foot OF each BOND IL wouia NOT nav
been best to have these bonds issued as they won
have borne the name OF one Controller as 81 Tg se
bonds and that of another Controller on me %
and perhaps for other reasons that Will readily occur
deemed IL prudent precauuon to put these incom-
p,eIs instruments entirely beyond the power Of being
nscnievOusy used and amid the turmoil OF tnat event
ful time meditaled the best mode OF DONG So re-
oesed three of the most responsible employees OF the
efice, Mcssrs Earle, Strr5 ana Cauy, 10 count Tue
bonds and that a memorandum OF the particulars oil
them be IN AIDE. personally accompanied these gentle
the basement of the new Court House. ana Sd"
HE bonds 10 which dude burned with nre.
In corr0boatIon of the statement OF Dir, Oreen an
affidavit was submitted signed by Artemus > Cady,
a.
Ter. and Abraham d. Earie, late county auditor.
They state that they saw bonds destroyed al va
rous time by fire in the boiler furnace In the base
ment of the new County Court House, that THESE
bonds had been printed from plates made by the
American Bank Note Company. and were destroyed
at the times mentioned
On November IL, 1s72-499 bonds of $1,000 eacn;
1905 bonds of the city of NewYork Of $1,000 each,
not uum Jered executed o. Novem6er 10 loI2-
1000 Dock 0onds, city of New YORK. OF 500 eacs Nos
each, Nos. to 300 800 0oads; e!Iy oi New lOIA, %
New York. OF $500 eacn, executed and the last set
NOT being numbered On January q 1S73-JSt certih-
cafes of consolidated stock, county Or New YORK, OF
$500 each, Nos. 3,7l7 to 43OO partly executed win
the signature OF Richard H. Connolly, Controller, the
same having been previously cancelled by punching.
An additional certificate by Messrs. Storrs and
Cady appended to the affidavit is as follows:
The aforementioned incomplete certificate ofstocks
burned and completely destroyed, and tine reason for
their destruction this: Tine certificates of stock and
of loan Of Si5Ouo,OOo negotiated by Richard
b. Connolly, Controller OF the city OF New:
representative Of A. NJ. Eothscnild Sons, o.
London and the year 1871 aud said cel hcates
coupons attached bearing the fac-simile signature of the
said Rlcaard b. Connolly Control thereOn aud The
said Andrew H. Green having been appointed Controller
IN the place the Connolly, would not sign the
said certificates OF STOCK and bonds with the coupons
attached upon which coupons tue fac-simile OF the sig
nature OF said Connolly was printed For this reason
the SAID Andrew III. Green 0riered anu directed tnal
the said cerlllcates Oh stocA ana oones snouiu oe
burned and efecrually destroyed az the times anG
place above stated The said certificates OF stock
aud b0uds after their delivery 10 the Finance Depart
by the American Bank Note Company, were care,
fully kept iron safe in the Controllers ONCE un
they were buraed and destroyed Other certlncates o.
stock and bonds were printed by The said American Bank
Note Company III the place OF tloSe destroyed, having
tue facsimile signature OF Andrew H. Green, Con
troler upon the coupons winch attached thereto
printed thereon They duly signed by the SAID Greer
AS Controller aud issued aud delivered to SAID Angus
Belmont CO. At sundry times thereafter when 90 com
pletely executed