New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-04-12
DEFRAUDING THE CITY.

caused O great deal OF surprise In pONtlcal ana
business circles yesterday. The amount lost to
the city is unknown as yet. and is variously est-
mated from 5000 to 100000. 1t is probable
however. that it will reach $l00 000 as the frauds
have been going ON since 1870. How many per-
sons were interested in the pecustions is also un-
known. but there Is every prospect that within a
few days the exact amount of the loss and all the
particulars in regard to it will be known. At pres
ent all that has been definitely learned by the city
authorities s that there has been a large loss. and
that William b. Carroll. clerk in the Controllers
Office, who died some months ago. was the principal
in the transactions. The loss could not have oc-
CURED. however, had William c. Emmett. the dis
Dursne clerk In tho Finance Department, done his
duty. The manner in which the money was fraud
ulently obtained from the treasury was by pre-
senting coupons for interest the city bonds for
payment the second third time.
William IS. Carroll. the son of ex-Mayor Carroll.
of Troy. was appointed to clerkship in tho Con-
trOller's Office IN 1872. In 1876 he was made an
assistant to William H. Dikeman, the stock and
bond clerk and the secretary of the Sinking Fund
Commission In that position, assistant to Mr. Dixie
man. Mr.. Carroll became familiar with all the
operations attending the payment of interest on
tho city debt Mr. Dikeman has been in the Con-
troller's Office for forty years and has hold the
place of stock and bond clerk most OF that time.
When coupons presented for payment, they
were given by Mr.. Dlkeman to Mr.. Carroll, whose
duty it was to prepare voucher. On the voucher
was the name Of the person or bank or other in
stitntion presenting the coupon or coupons the
number and the amount Of each coupon and the
particular loan 70 which 1t was cbargeabe. III the
person presented moro than one coupon at "A time,
and generally q good many were presented to-
gether, the total amount was figured Mt the bottom.
Mr. Carroll punched each coupon, plnued them to
his voucher, and sent them To David B. johnson,
who made out n warrant for the total amount.
The statement and accompanying papers were set
to Daniel Jackson, auditor, who certified TO the
CORE ctuess OF the account His duty was that of
certifying that there WAS such indebtedness and
that IL was due that the coupons genuine
and a charge against the particular accounts.
Tue Controller then 81 igned the warrant 1t was
transmitted to the Mayor. who also signed II, and
then to the Chamberlain. who signed II by certify
ing that there was such an appropriation and money
In his possession TO pay the amount. The warrant
then goes back to the Controller who signs il a
ond time more particularly a check on the genul-
ness of the other signatures. The warrant with the
coupons attached then passed to William {. Emmett,
disbursing clerk. Ii was his business and that of
his assistant, Francis Forester, to deliver
the warrant to the proper person and
~
the coupons second time and return them TO Mr.
Carroll. 10 be filed for future reference.
Ii appears. according to the statement of Deputy
Controller StorTs, that Mr. Emmett has been care
less and has not always punched the coupons be-
fore returning them to Mr. Carroll. The latter. ap-
parcutly, took advantage of this fact, and such
coupons were not punched by Emmett were
uscd by him for collection the second time.
This was easily done far the appearance of the
coupons was concerned, because there were no
marks on them except tho hole punched in them by
Carroll when they first came into lis possession and
before the warrants were made out. All he had To
do was TO wait sufficient time, so that the num-
hers would not he easily recognized. and then at
tach the coupons which Emmett failed TO punch
TO another statement made out in the name
OF some confederate aud send them on their
rounds In due time the confederate would call
and get the warrant from Emmet. and If the latter
failed second time 10 punch the coupons they
hi gut be- used "A third time for collection
HOW THE FRAUD WAS POSSIBLE.
In explaining how 1t was possible for money to be
paid ont second time on the same coupons,
Mr.. S.ors said that the total city debt
was Sl30,0OO0 900. That includes the
amount held by the Sinking Fund Com
mission The debt is divided into various
loans. and the interest Is payable quarterly
hence there is a very large number of coupons pre-
sented each month. Many of these have the same
numbers Only the loan is different. 1t was not
easy therefore, to tell anything by numbers, and 1t
difficult matter TO refer to the coupons to see
whether they had been presented before. Formerly
the cancelled coupons we're kept In book which
made IL easy TO refer to them Ihat Dook
was patented and It's use sew. WAS T stopped pea
by the patentoe hnny epe Soo "utstanI.
ing now which were due in 1877. There is always
large balance 10 the credit Of the interest accounts
therefore il was not ovcrdrawn This balance Is neces
sary TO provide for the issue OF bonds tor city I'M
Drovemcnts. When the estimate rs made Tor the
interest account t includes considerable sum III
excess of the amount of the interest on the DEBT az
the close of the year The Controller may be called
upon by requsitIOns from the Dock Department or
the Public Works Department or in other |
ways to issue millions Of bonds IN the first |
quarter and there must be large margin IN tho |
interest account. This margin reaches u, ,Ooo,O 600
payment mad not been discovered before, but Its |
discovery was in the end; Mr. Carroll Kept |
register of the amount OF the coupons presented'
and for which warrants were issued lie had ial- |
sited the figures that register by falling TO enter
the payments on coupons presented the second ume'
When Mr Carroll died, some months ago, there |
wero found In his desk coupons worth To,ooo |
which had not been cancelled by MI. Emnet. |
That caused suspicion OF carelessness, Dnt |
it has been only within few days that IL was as
covered that money had been pald out lot III
terest on the debt than was due. calculation nas
TO be made of what coupons are outstanding wnicn
s little difficult owing 10 false entries by Carroll.
As soon as that calculation is completed the exact
amount stolen will be known. Whether Carroll |
collected his coupons through brokers |
or by confederates is not known. The |
police detectives are investigating that part of the
thefts. Deputy Controller Storrs sad that the
loss might amount TO 100000 and lthat 1t was
found that the frauds extended back to 1879.
THE BOOKS TO BE EXAMINED.
II is the duty OF the Commissioners OF Accounts
to examlIfe the books Of the Finance Department
every two weeks In making such examinations
they have not heretofore compared the coupons
with the vouchers made out by Car
roll. Such an examination was begun yesterday.
however and ii will disclose the exact number OF
times that each coupon has been paid II more than
once and TO whom the payments were made.
When Andrew II. Green became Controller, 1t was
tho custom for the Chamberlain 10 pay the coupons
and cancel them, III the case OF checks. ana re-