The Waterbury Democrat., 1938-11-29

A scathing 74-page report, signed by the IS members of the grand jury, contained variety of allegations concerning not only the 27 accused, but many others. A 32-page bench warrant issued by Special Prosecutor Alcorn with the permission of Judge Inglis, was the official grounds TOT the arrest of the accused.
 The following is a brief summary of each accused, his counsel, ana what charged the grand jury pre- kerred:
 SIMON J. ALDERMAN Age S9. A membeT of the audit--.. ing firm of Alderman & Shepatin of New Haven. Represented by Attorneys George Crawford and Nathan Shepatin of New Haven. Free in bond of $10,000 posted by 8 bonding company.
 The grand jury charged him with assisting in the destruction of controllers records from 1930- 1888. Mention of Alderman in the report is as follows: substantial sums were paid from time to time to Simon J. Alderman a New Haven accountant. The exact purpose for which he was em- ployed has not been made clear to the Grand Jury other than that his services were at the per- sonal solicitation of the Comp troller and were not of such 8 nature as to have benefited the people of the city in any respect. He was secured by Comptroller Leary for certain special purposes during the last two weeks of his occupancy of the office of Comp troller and was paid approxi- mately $975 by the city and ap- proximately $500 personally by the comptroller for this work.
 ". examined certain war rants payable registers and cer- tain cancelled checks which bore the name of the Comptroller. ... was the last person in whose possession the now missing war; rants payable for 1887 were seen. had a master key to the City Hall and all of it's offices. .. knew the combination to the combination of the vault in the Comptroller's ofice."
 ENOCH E. BORGNAES
 The only one of the 27 accused of conspiring to defraud the City of Waterbury who apparently is . fugitive from justice. A resident of 9341-204th street, Hollis, Long Island. Affiliated with the audit ing firm of George H. Kingsley Co, New York.
 Has been variously reported hospitalized in New York, and so- journing in Denmark or Sweden.
 The grand jury accuses him of complicity in the destruction of the city'S records for 1931-1938. Excerpts from the jury's report regarding Borgnaes: personally an charge of the Waterbury work. ~. Largely through deceptive if not dishonest audits on their part (Borgnaes and Murray) was it possible for the Hayes-Leary ad- ministration to conceal from the taxpayers and the public for such c length of time the rampant corruption in the city government. the reports of audits as rem dered by them and certified to by George H. Kingsley Q Go. are Bhamefully lacking in detail. they minimize rather than em- plasize the increasing irregulari- ties in the administration of the city,s financial affairs.
 {" during the years 1934-19S7 the City of Waterbury paid ap- proximately $22,5O0 to Kingsley Go. for certain services rendered by Enoch Borgnaes personally :. by 1884 he had become indispens- able and Mayor Hayes personally requested George H. Kingsley, the head of the Kingsley firm, to re- lease Borgnaes to the Mayor \. :. prepared material for use in po- hticaI campaigns City paid Approxianately s6.OC9 in 1885; ap- proxjmateIy $7.80O in 1886; and l8.7O0 in 1o37 for Borgnaes' ser- Eices. A portion went to Kingsley