New-York tribune., 1907-06-09
TWEED RING ECHO.
DEFICIENCY RECALLED.
VaIue of Interest ShO5cn in City
ChamberInn'S Report.

An object lesson demonstrating how breach in
the city treasury will heal itself # left alone long
enough IL shown to nicely in the annual report OF
the City Chamberlain, made public yesterday
When the books were balanced in the Surrogate's
Office in this county on December 81, 1859. at the
time Tweed and his friends were in control or the
city government. Il became known 10 the then re-
tirne Surrogate Of the County Of New York that
deficiency in the funds and securities OF the once
of the Surrogates Court had been caused by the
acts Of an assistant Surrogate, and that 1t amount
ed 10 81 $50 o. The deficit caused a great seTsa-
tion
On April g. 1870 the Legislature passed an act
authorizing the Board Of Supervisors of the city
Of New York TO provide funds from the tax levy
OF that year TO meet the deficit. The supervisors
compiled with the legislative direction, and on May
&C. 1870 they authorized the Controller of the city
10 pay over 10 the Surrogate Of the county the
amount named-S5l.53o %.
The incident soon became ancient history, and
probably never would have attracted attention again
but for the report Of the City Chamberlain turned
!n 10 the Mayor yesterday It that all claims
arising from that defalcation have been paid in
full Some OF the claims painfully slow In
being presented, and meanwhile the interest mi
crobe working in the Surrogates office IN that
particular deposit A few months ago Acting city
Chamberlain Campbell in looking through old
ledgers discovered that all the claims against this
particular fund that would be presented had
been brought forward and that there was no
longer any necessity for holding Of the balance
prsing discovery that with the interest eel nings
the comparatively small balance left over after the
claims had been paid amounted $40.765 3S almost
as much as the original defalcltion. Mr.. Campbell
has brought suit compel the transfer OF this
balance 10 the Chamberlain office.
The report says in part:
The financial transactions Of this office for the
fiscal year ended December 81, 1905 Including the
public moneys OF the city and the court and trust
fundsl, amounted to S549 S2 $50 q For keeping the
record of these transactions and performing the
pTiared $3.50. AS custodian OF the court funds,
the Chamberlain now holas, subject TO his general
courts the sum Of S5 264 as 81 Upon this latter
sum there were net earnings of interest from IN
vestments and deposits for the year ended DeCem-
Der 81, 1906 Of sI5S4A Sc
Tho and investment of court and trust
funds IS a matter of deep concern TO ihs office.
as they often represent nearly the sole means or
At my request, and with the approval OF the State
Controller. The Legislature amended the Code of
Civil Procedure, which enables the Chamberlain
10 invest any moneys Eeld D} nm IN trust, puI-
suant to the provisions Of Chapter s. Title 3, in
the corporate stock. revenue bonds or special
bonds OF the city of New tork: for the purpose
or more funds, or parts of the same. thereby aid
ing the city also 10 borrow money at normal rates
and At the same time securing excellent and
EaIe investment OF tneSe 1unGS- ne amount or
court and trust funds so invested S@l3,Sl0
The legal commissions for handling these funds
and turned into the City Treasury by during
also paid to the Sinking Fund redemption account
the interest received from deposits OF city moneys
amounting 10 Sl52.554
The net cost for caring for the S59 1872 sS q pass
ing through this office during the year was
S2055 81. or four oDe-thousands Of per cent, and
am satisfied that if all the and trust funds
city were deposited with the Chamberlain the
ONCE would be understanding.