New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-14
CO1NlNENT IN THIS CITY.
OFFICIALS UNDER THE CONTROLLER
azsEt
DECLINE TO TALK-MR. RI SWAN-
STROM'S STATEMENT.

Politicians of the city were surprised and inter
ested yesterday afternoon by the reports Of the
charges against Controller Coler. Tammany men
who the Democratic Club in the evening
plainly delighted because charges had been
made against the Controller. They declared that
Mr.. Coer had been accusing Tammany officials of
corruption and decrying the Tammany admnistra-
ton until many people of the city thought he
the only honest public official in the city.
In the absence of Controller Coer from the city
yesterday officials in the Finance Department
would not discuss the charges against the Con-
troller. Several OF the officials said they had no
doubt that Mr. CoIer would do all the talking
necessary in the case when he got the opportunity
and he able to defend himself without help
Some OF the officials. while willing be quoted
said they thought Governor Roosevelt would dis
miss the charges he received a reply
from the Controller.
The officials of the Finance Department. however
gave information regarding the bond sale which
the charges have been based. They said that at
the time the bonds were advertised for sale there
was raised a question to the validity of the
bonds in view of a contention that the debt limit
of the city had been reached before the issue of
bonds authorized. Controller Coler had
ceived intimation that the syndicate composed
of Harvey Fisk & Sons, Kuhn. Loeb & Co. and
Blake Bros Co. as well as the firm Of Yer
milye & Co.. intended question the validity OF
the bonds by imposing condition in their bid 10
the effect that the legality of the issue would have
be passed upon by the companies private counsel
before the bonds would be accepted. Hearing this
the Controller had postponed the sale and through
Wall Street friends had organized the Produce Ex-
change Trust competitor. When the bids
opened it had been found that the bids OF the old
syndicate had the condition attached which Mr.
Coler had objected 1t would BILE the purchasers
to reject the bonds unless their counsel approved
them. Mr. Coler had held that such condition
placed the city at the mercy of a bond syndicate
that in consequence other bidders would be scared
away and the ctty's credit impaired that the
syndicate could ultimately get the bonds at its
prices Mr.. Coler had charged that there existed a
conspiracy injure the ctys credit, and the Sink
ing Fund Commission by Mr.. Colers advice, threw
the bids which had conditions attached thereto
as Informal and awarded the bonds TO the Produce
Exchange Trust Company. The right to make such
an award was questioned by Vermilye & Co. The
case was taken the court, and decided IN favor
of Mr.. CoIer and the Sinking Fund Commission.
STATEMENT OF MR.. MACK's ATTORNEY.
J. Edward Swanstrom, attorney for Jacob W
Mack made the following statement yesterday:
Mr. Mack my client. Is public spirited citizen
of the highest standing He is a large property
Commerce fellow OF the American Geographical
Vention of Cruelty 10 Children. for many years a
Commissioner of Common schools member OF
the Lawyers Club. City Club. Reform Club. Good
Government Club ex-president OF the Harmonic
Club Somerset Country GiuP formerly yce,presi-
lumbia Bank and connected with numerous hnan-
Under Section 81 of the Charter the Governor is
empowered TO remove the Controller In like man
stitution of the State Sheriff may be removed
by serving charges upon him and giving him an
opportunity to be heard by counsel. The proceed
In gs are analogous to those for the removal OF
Mavor AS 10 the charges against the Controller.
I think they speak for themselves. Some of the
facts have already been made public, but this is
the first time that all the facts have been present
ed The charges lated by mass of
documentary evidence which l have submitted TO
the Governor and which is 1le In his office.
Nv client takes the position that of the
highest duties OF Controller OF the city is that
which relates 10 the sale OF the bonds OF the city
The plain duty of the Controller is 10 award the
bonds TO the highest bidder or bidders This is
expressly commanded by the charter and tmpera-
lively demanded by the people II ne does not do
that he is guilty OF gross breach or trust This
mas been repeatedly held by the courts, but, of
course no legal authority is necessary 10 sustain
TThe facts show that in July. 1895. The Controller
sdyar7isad for proposals for city bonds aggregatin
SO sss eas ss He awarded the bonds TO the Produce
Exchange Trust which represented syndicate IN