New-York tribune., 1884-10-04
NEWS FROM TIE SUBURBS.
UNWILLING MORE FRAUDS IN NEWARK.

EXPERTS SHOW HOW TIE CITY's MONEY WAS ILLE-
GAILY USED BY TREASURER STOUT.
The report of the experts to examine tho accounts
of the CITY of Newark was submitted to the
Newark Common Council last night. The experts
were originally employed to examine the street I'M
provement account whose expenditures amount To
abont So, 900 300. but q number OF discrepancies
and fraudulent entries being discov cred in tins ac-
coult the investigation was extended 10 oiher ue-
partments. In previous report by the experts Ihe
defic ency in the accounts of eXClty treasurer
John W. stout were shown to be over . D ,Oo0 Mr..
Stout was called upon for an explanation of these
Deficiencies, but made none. and a suit was there.
mon instituted against his bondsmcn. Mr. stout
died two weeks ago The report submittsd last
night related to the treasnrers accounts: The ex-
perts found that additional discoveries OF opposite
discrepancies and fraudulent entries increased @ the
amount of probable deficiency to over SIio,ooo;
The items of entries that go to make up this total
are based mon tine entire absence OF warrants or
other legal vouchers to show that payments credteu
have ever been made. -,
The treasurer is forbidden by law to pay dollar.
except upon presentatp n of n warrant, OF IN pay
mrnt of interest the city DEBT. the coupon III such
case to be retained by him as voucher. The Treas
urer's check books. during his term OF eight years
show that he paid out IN personal loans, to poll POLL
ticians. contractors and Others, over ~ xl.25O,oOO
from the city treasury; No entry OF any OF the,e
loans was put upon the books OF the trcasnrers
Office the only record of such loans heng the
Treasurcr's private memorandum: placed upon tns
stubs Of the checks u sammcI % 70 bssc
were repaid TO the lender. The law forbids the
Treasurer to make loans or payments in this way.
One Of these private l8ahs ana re s1 1seS "a iho
Newark Savings Institution for $lOO,OOo at SIX per
cent interest.
the city's books the books of the bank. The
officials of the bank say that they acted only as in
I, r nedary in this transaction, the real borrower
bcing George Opdykc & Co., of York. The
books of the city show that 100000 OF bonds
were sold to Opdykc d Co. at a discount on the day
this loan was made the proceeds OF the bonds 6eing
deposited IN the Mechanics National Bank, oil
Newark and Immediately checked out again as q
loan as stated. The experts conld lind no word
showing that the money was repaid lDey report
further that Treasurer Stout gave himself credit on
the books for paying general warrants. where. ~
fact he only paid part OF slch warrants giving nis
personal due bill for the balance OF the amounts
The interest paid on these due bills by the clty
amounting TO over $4,000 II five years. At times
the Treasurer had ont 100 600 in due bills. his
was in violation of law, the Treasurer beng 1or-
bidd n to issue any evidences OF indebtedness IN
beha OF the city. These due bills were virtually
temporary loan bonds ~ =,
moneys and deposit them IN the name OF the city n
certain banking repositories selected by the Finance
Committee of the Common Council. The books
show that the Treasurer violated the law I'D th's
respect continually. In his annual reports to the
{ onmon Council. the Treasurer stated the anonnts
of cash thus acid by the city. IN ls72. wh'n th'
loan of 81 100 900 was nj de to the Newark SAVINGS
Rank the Treasurer rcported to the Council tiat
there cash on hand, properly dcpoSttcu' 70 tno
total OF Ti3odi5 80. The book of daily balancrs
for that wear shows thai the actual cash balanre an
the books e,ignatcd by the Finance Committee
was $90.5l 81. a diherence of $'lo.co7 o.; -.
The bonds Of the Treasurer M wrr" %n Sho4"" '
renewed in 1876. Sut has already been begun
again the the lirst set If bondsmen and another
.n.t for 10000 will he hcgun against the secon'
set Mr. Stout was appointed treasurer III Jan
nary 1867 and remained IN office until January
l71S75. William x. WnanS who was lie 'Snrer
in 1876. WAS indic G for criminal neglect "I duy
in connection with robbery OF the city treasury
of over S7Oo OOD by And tor Palmer, and william
A. Hall, the Controller'~ ch ef clerk.