The Waterbury Democrat., 1938-05-20

brought to light because of the very magnitude of his operation. Close to the Mayor personally and off, cially throughout the eight years has been his executive secretary Thomas P. Kelly, whose thorough knowledge of the operation and per- sonnel of all departments and branches of the city government placed him in strategic position and made him the logical contact man between this corrupt adminis- tration and the public. Equally es- sential to. the successful operation and continued existence of the group was man who had nc prominent official connection with the city administration but who lent a degree of responsibility to the group and at the same time was SC situated as to make possible the corrupt financial transactions later detailed. Such a man was Carl D Olsen, formerly vice-president and treasurer of the Waterbury Trust Company, of which Daniel J. Leary was until recently the largest indivi- dual stockholder and director Without the active and willing as. Sistance of Olsen, an activity oi which the other officers of the bank claimed to be unaware, this corrup- ton could not have assumed such proportions nor continued for such length of time.
 Four Key Men
 These four key men had the con- stant cooperation and counsel o1 Charles s. O'Connor, Corporation Counsel; William J. Roach, Superin- tendent of Police; Thomas J. Flem- ing, Superintendent of Streets; Mar tin J. Dunn, Purchasing Agent in the Comptroller's Office; Enoch Borgnaes, a member of the account ing firm of George H. Kingsley and Company, of New York City; Henry w. Minor, an attorney, and certain other political subordinates strate- gically located in various city de- partments. In order to consolidate their position, it became necessary to progressively enlarge the group of beneficiaries of their corrupt op- erations and in so doing a number of attorneys, accountants, contract ors and others were the recipients Of large sums purportedly paid for goods or services, but in fact paid by the city administration for the purpose of advancing their own po- litical and financial interests.
 Throughout the Hayes-Leary ad- minstration 1t has been the custom of at least a part of this group to meet almost daily in the private business office of the Mayor at lunch time. In these meetings apparently matters affecting the city admins tration were discussed and decided and decisions prepared for sub sequent sanction by various city boards whose proper functions had been assumed by the Mayor and his group. i
 Protective Devices Out
 Although the plans were con- ceived and their details worked out in the office of the Mayor, it was through the office of the Comptrol- Ter that they were ordinarily ex- ecuted. A reasonably rigid book keeping system had been devised and set in operation for the pro- lection of the taxpayers money Within a year after Comptroller Leary's assumption of the duties oi that office, he ordered MT. James Purcell, chief accountant, to elim- mate some of the red tape" in the office, and ordered the discontin- uance of many of the protective devices in the matter of city book keeping and accounting. For ex- ample, the practice of keeping or file duplicate invoices and dupli- cate checks, the use of the standard invoice, and the practice of render ing to each city department at the end of each month statement showing the status of that depart ment's particular appropriation were eliminated upon .he orders oi Comptroller Leary, and many other bookkeeping and accounting prac- tices specifically designed for the protection of the citys funds were discontinued notwithstanding pro- tests from MT. Purcell.
 Comptroller Leary then gave or ders that the personnel of the Comptroller's office should receive extra compensation over and above their fixed salary and in violation of law. Under his instructions, the personnel of the Comptroller's off, flee did actually draw and receive extra compensation in violation of law from the year 1881 until Comp troller Leary's involuntary retire. ment from office January 3, 1888 MT. Purcell, chief accountant, was the only member of the office per- sonnel who refused to accept the extra compensation, pointing out to the Comptroller the illegality of the procedure. At no time throughout the Hayes-Leary administration were these over-payments ever ap- proved by the Board of Finance, and the payments were drawn and paid for in the manner which we hereafter describe.
 Section 101 of the city charter
 provides:
 There shall be . Comptroller,
 elected as heretofore provided,
 who shall, under the charter and
 ordinances. be subject to the gen.
 eral direction of the Mayor, and
 Board of Finance in all matters
 concerning the financial affairs of
 the city"
 Sh0rn of Power
 Almost immediately upon their election to office, Mayor Hayes and Comptroller Leary assumed com plete control of the city's entire fi- nancial administration. Edward L. Futile. City Treasurer. vIose du- ties are specifically detailed in Sec tions 113-1l7 of the city charter, was compelled to surrender what