New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-09-29
JOHN B. CARROLL'S FORGERY.
THE EX-CLERK ARRAIGNED AND BAILED.
HIS BAIL FIXED AT $10,OO0-THE LOSS TO THE


John d. Carroll, the former clerk in the Control
lers office. who was arrested by Inspector ByrneSs
men on Thursday at Stamford. Conn, on the chargs
of forgery. was arraigned before Judge Cowing in
the Court Of General Sessions yesterday District
Attorney WcKe0n appeared In behalf Of the people,
| and Richard s. Newcombe was counsel for the pris-
oner. Carroll. who is twenty five years Old slight
and slender aud ofdark complexion seemed collected
and calm. plea of mot guilty" was entered. and
| then the question of bail was considered The
Disrict-Attorney stated that in view of the circum
stances he was opposed to the granting of bail at
all. This is the second case OF this kind" he
said, "aDd there may be other cases of a SIMILAR
nature. There may be additional indictments this
case also. public officer ischarged with forgery. IL
Is grave matter and this the second of tho
kind it would seem that the strcest possible course
should be pursued" Mr.. Newcombe stated that
his client had been brought before the court under
one indictment only-that of forgery in the third
degree-and bail should be granted upon that
charge alone, not upon any possible contingencies.
He wished bail fixed at $4,000 Tho
District-Attorney said that if bail were to be
allowed at all, 1t should be fixed high as $4,000
at least. Judge Cowing said that he would fix this
bail au that amount, but would subsequently, re-
duce it IL no additional indictment should be
found.
The prisoner was then taken to the District
Attorneys Office where Francis Carroll, his uncle,
became his security in $4,000 Young Carroll
then went away, declining to make any statement
by the advice of his lawyer.
COMMENTS BY MAYOR EDISON.
The disclosures in regard to Carroll caused much
talk among the city officials and employees. 1t is
the impression of those best Informed that the city
will lose nothing by this latest defalcation,
Carroll had no authority to give receipts IN full for
payments made to hlm.
Mayor Edson when asked what he thought of the
matter, said / fell half sick at the thought
that there many persons in the employ of the
city government who cannot be trusted to perform
their duties honestly The only redeeming feature of
the last two Gefalcations-thatln In the Water Bureau
of the Department of Public Works. aud this latest
one in the Finance DEPARTMENTS the fact that
the city will lose a very small sum. The time mas
arrived, however, when stern examples should be
made of the Offenders. Restitution of the money
taken is not sufficient. The offenders must be
prosecuted and when found guilty punished 10 tho
full extent OF the law"
How about the citizens who have tempted these
dishonest employees !"
They also should be punished. and will do all
in my power to have them prosecuted. The Dis
trict-Attorney Is already moving in the matter"
HOW THE FRAUDS WERE DISCOVERED.
Artemus ). Cady, the Chief of the Bureau for the
Collection Of Assessments and Arrears, engaged
in pursuing the investigation, with the aid of
pert accountants, as we'll attending TO the busi-
of the office.
81 think" he said THAT the amount Of the falsi-
fcation will not be more than 81 900 $4,000.
The examination we have made is only cursory. A
thorough examination will be begun at
once of CarrolPs books, extending over
the entire time Re had them. Thus
far have discovered about 81 600 of fraudulent
entrees The most or THESE are assessments ON
piece of property owned by John Z. Ely and
bounded by ne-hundred-and;slxth and One
hundred-and-seventh sts. aud Eighth and Ninth
aves. They amount altogether to about $4,000.
The remainder is confined to two or three pieces
of property the owners of which have not traced.
Carroll had charge of the record book, in which
entered the amounts due and the fact whether they
are paid or not. The cash-book and ledger contain
q record of the payments. In comparing the ledger
and cash book with the recoTd-OoOk, not long ago,
we found an item marked as paid of which there was
no entry Iii the ledger or cash-6oOk TINS looked
suspicious, and comparison OF the books was then
begun. The result was that we found several sins
liar entries. We continued the investigation, and
found that the false entries extended q space
OF niue or ten months. | reported the matter to
Controller Grant aud be communicated with the
District Attorney"
Will the city lose much :"
II cannot see that the city Will lose anything.
The persons VINO have paid Carroll TO mark their
assessments paid have no official receipt 10
show and that Is the only thing we would recog-
nIze. | and the cashier IN my bureau are the only
persons who are authorized TO receive payments or
receipt for Them"
Can he amount of the false entries be much
increased ~
- think not, although our examination has only
been comparatively superficial"
"Wlll the persons who have been in collision
with Carroll to reduce the amount OF their pay
ments be prosecuted y
THAT is matter which rests with the Con,
troller and Dlstrlct-Attorney."
WHAT THE CONTROLLER SAYS.
Controller Grant said Soon after / entered
upon tie duties of my Office l asked Mr.. Cady
whether it would not be well to have sale of all
property which the taxes and assessments had
not been paid for three years. As this would re-
quire a good deal of preparation Mr.. Cady entered
On the work at once He found that piece of prop.
erty belonging to John G. Ely, the block bounded
by One hundred -and-sixth and One-hundred- and
seventh sts and Eighth and Ninth sves. appeared
on the record book as having tho assessment paid
on December Ii, 1892. A comparison with the
ledger showed no such payment. Mr..
Cady marked il aud di
rected that the assessment be reopened lie
d not report this fact at vnce Carroll having been
discharged some time previous tor neglect of duty.
This deav IN reporting was wrong, although lt did
not affect the final result. In 1870 new avenue
5lr Ely and the Mutual Life Insurance Company,
eeased Is interest in the property 10 Mr. Ely, to
There were other assessments made against the
property trom tins to time. On q littlo of tie
property che assessments have really been PAID but
here several Others which falsely recorded
rs having been paid. The false records IN Car
rolls Handwriting. and there are no corresponding
sntres in the ledger. The amount OF the unpaid
involved was about 5000. Mr.. C4dy
sent Dill of the unpaid assessments to Mr.. Ely,
called in response and claimed that of the
assessments mad been paid. He did not show any
receipts for the alleged payments and his statements
was unsatisfactory 10 Mr.. Cady, who reported tho
whole matter to me. | looked over the books and
afterward. with Mr.. Cady, called on the Mayor and
told hun of the matter. As II was then late, the
Mayor appointed the following MONDAY morning
~ tho time meet hum. We did So aud alter tho
matter had been fully explained the Mayor advised
with the Corporation Counsel, and
No. after examining the case, deemed II best that we
,hOnld communicate with the District Attorney.
his was done. detectives employed, and Car
rolls arrest followed. Mr.. Cady reported to me on
TUESDAY that he had discovered another wrong
in hmm In Ia =.