New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-07-12
COUPON FRAUDS.
. Export TO THE BOARD OF ALDERMEN.

,,,.xDArIoN THAT THE coNfRoLLEH wv
poSp-GoIYG BACK OF iofo' &c
&c the spccal committee Oh
ihe pros,,nted TO Investigate the accounts VI .s
Sue Department was presenlse he.n
s'ns The substance of the repori mas
D D.r =, THE TRIBUNE 1t says that tue piose Tho
- - the Financial Department Is 600 ona
ton Oh VI. a,alcatIoa Is stated as $l4S63o, anu
smoau' carrol, il said to have been the only cuprs
-. INV which the coupons were paid IL oosoi.s
1 ns and ia declared TO have been fauty' - sh
-. ale 10 pursue his regulations unde'ec'eu 1850
.ra, years. For several years previous oosuou,
,ot vas used wherein the paid ana csnoo =, uas
80 pa,ted in numerical order. VIM were
~e - the distractions OF coupons 90 he
m "'o ,n,,eapent. After 1t ceased
- .h.v largely and rapidly increased ga An
,, =, 90 tbefts occurred between july, i0o' srdng
uu., 1899 shortly before Carroiie ", aesk soon
~ enc naekaee of unpaid coupons ~ discovery that
ofsr his death and the suossf la &, e,eess of
CT, 60 Of coupon interest bao peo" -. 80 for time
an die and that these IacuS aao,area
the coupons " -harnlv commented on IL Is oeoieu
snpp'es,, ,uory attention been PAID 10 'no n
tha' nAu Of the coupons presented ior pay
anu go. would have been detected AZ the ou''e"
ooUNTkRFErT COUPONS
,one argument in the report 10 prove 'n@'
,,.~o,,,s defalcations were efecteo W moa', $50
oa .o',nons The theory advanced 10 that ne suD''
.s.xo
.u'o' 49,, ae.troyed the counterfets. ana packeu
70. ,s cenuiue after punching them The commi''eo
~ ,n,. theory on the tact that some OF tue oupnoa
nors we're presented on the third OF ion'" ""' 49,
,hss we're first paid, and that III 'on'' -.
stances the duplicates were pao
aav succeeding that when nrss ~
~ us ,onr or five days is the time required iof
VIZ .-s,nn, of coupons in the Department The COM
stee does not believe that Messrs Ems sa af Car
the dsenrsq g ss 6snenssy nor that he
a",nncss outside the Finance Department
ths eommiiee condemns tho system Oh sppIops.;s
Inc ,n NV the Board of Estimate ana Apporti4n-
asnt Tor the payment OF the interest on inc o for
the esT ,s te sae on issued Ied ct
S7526499 rs. and interest on beras 10 oe
S5o6S3S mnS sSar The Committee says that the mis-
chief consists the fact that as the can
be issued pSIsy the represent:
no certain limit, but one only wan This evidences
tSerefore that while with the appropriation Q, %
Io9 25 for specific purpose OF ~ the Interest
os he Limited By the appropriation BLENDED T ~.
500 $685. appropriated for interest on p of
rs would make possible the ~.
such s our enc and ap
Semsted enabled Carroll for three years 70
the s q sGs hsm beth
" Interest on the City Debt the evidence pear rrSi
II Sss ras SURPLUS Of the appropaisd
for interest on the city debt. forcbly liusr.as '
FURIOUS of Accounts condemned for not
hsxsns discovered the frauds during their exannaohs
Of the accounts Of the Finance department
WHAT THE COMMITTEE RECOMMENDED.
,,,o ,~,.o-,nv resolutions panied the report;
p~sop,d rhat the Controller of the City aud County
of New york be aud IA hereby required 70 give oona
for the faithful discharge OF are ose sucent suretes
10 iustify fn the amount, unocr ostn Delo,c
Judge OF the Supreme Court on duo noce 70 INC UT
Rssosd That the system Of accounting pursued in
the Finance Department Is inecient' hsumciehs ANU "
Rssoree That the directions OF the charter that regu
f a,e su safe system Of through their viola
ton the city suffered oy oncs, 81 hs Com
mon Council. VIII be ample guarantee against al! loss
Ptsossd That entertaining no question Of tho legal
,,anlty OF one or more OF the municipal MAGISTRATES
during any period OF the three years process Q. nS
n Carros dealcations for the wnoe or pars tnereoi,
n IA hereby referred the Corporation Counsel under
the evidence institute such action sna dake saG1 si
againgt or more OF such magistrates
rs he shalI be advised can be sustained at law.
General Coehrane spoke at length, explaining what
the committee had He said that the officials al
luded TO in the last resolution Mayor Cooper aud
Con,-oI,ers ely and Campbell There culpable
neggence n the subordlnaJes OF the finance depart
ment and in the head OF the Department Tue report
was ordered TO be printds In full In Inc Guy ccora'
WHAT THE CONTROLLER SAYS
Controller Campbell asked by TRIBUNE reporter
what he thought OF the report He replied:
have not read the report yet, and until have done
an would prefer to say nothing concerning n state
ments or recommendations This much can say. how
over for so stated la my evidence before the Alder
manic committee: Tie payment OF interest on tue
various classes OF Is and has been ior some
time by my ORDERS made payable froIn epeclnc aPpro
priations and not from q lump sum, as formerly
NEW INVESTIGATION.
The officials of the Fiusnce Department have begun
an Of the accounts and vouchers prior 10
1879 with view OF sscertaining whether CarrolPs
pecuations began before that time The examination
OF the warrants has goae back 1876 Several clerks
are now engaged on the work. and II viii be OF
siderable magnitude II has been discovered that the
first payment couponinterest made to Hagen Bill
ipxs was on November 8, 1876. This was for a small
amount There only two or three pay ents made
to the firm iu year The first payment OF the kind
made T.. Morrison, IT,, was on june ., 1871 FROM
that the payments 10 the two firms continued 70 in
crease In and amount These are the Two nrIns
with whom carroll supposed 10 have dealt exclusively,
although there two other firms during those
wears who looked upon having possibly had
transactions with Carroll 1t ia not that all the
to the order OF Hagen Billingsand f.
Morrison, jr, represent coupoas wnich mad
and paid but il In feared tnat this
the The entire amount however. 10 not large;
slill 1t Will reach several thousano dollars
II ascertaned By the Commissioners OF Accounts
rolls frauds 1879 AID 1880 only amounted TO little
than $685. 600 II was In 1881 and 1882 that the
bulk OF his frauds was perpetraieo IL VIII DC several
weeks before the exact amount OF the frauds during
say examine every cOap)n and compare II WITH the
schedule accompanying tile warrants and tho duplicd-
ton will then be apparent. The Commissioners OF
Accounts are also working back Through those years,
with the same o5jsctc