The Waterbury Democrat., 1938-05-20
Illegal Appropriations, Expenditures Charged in Writ

tween october 5, 1897 and Januar, 3, 1888 for the purpose of concealini said illegal and fraudulent transac- ticns and for the purpose of con- cesling the formation and existenc' Of said conspiracy.
 Pretended Audit
 And in further pursuance of saic conspiracy, to wit, from the early
 part of the year 193o down to the third day of January, 1888, the said BorRnaes, being then and there g certified public accountant employed by the firm of George H. Kingsley and Company, of New York City, oi which the said Kingsley, Murray and Meany were members, did pre- tend to audit the books of the City of Waterbury; and at the request of the said Hayes during the year 1884, down to and including the Sd day of January. 1888, the said Borgnaes was in charge of the accounting sys- tenn of said city and from time to time furnished the said Hayes and the said Leary special reports pur- porting to reflect the financial con- dition of said city and designed to aid the said Hayes and Leary to re- tain their control of the finances of said city; and the said Borgnaes did receive compensation therefor from the said Kingsley and Company at the rate of $500 per month for which said Kingsley and Company, pur- suant to an arrangement with said Hayes, charged the City of Water bury and were paid by order of the said Hayes and Leary in the manner aforesaid, compensation for the services of said Borgnaes at the rate of $700 per month by means Of checks, issued and signed by said Lcary in form and mat Ter as above described, unnumbered when issued, and not drawn in regular course by the City Clerk, and never approved by said Board or Finance of said city as required by its charter; and said payments were with held from said warrants payable register sheets until the members of the Board of Finance had affixed their signatures thereto. thereby giving the appearance of approval of said payments by said Board; and the said Meany, Murray and others employed by the said firm of George Kingsley and Company prepared the annual audits of the books of said city for the years 1892 through 1887, which annual audits were signed either by the said George Kingsley or the said Meany, or the said Mur- ray. Said reports and audits were false and misleading and were cal- culated to be such, and failed to make comment upon said unauthor- ized charges to appropriations; and failed to make comment upon charges to appropriations; and fail ed to make comment upon charges made where no appropriations ex- tsted; and failed to make any com- ment in regard to the unlawful methods used by the said Hayes, Leary, Kelly, Borgnaes and Dunn in withholding items from the war rants payable register sheets until after the meetings of said Board of Finance and later entering said pay nents upon said warrants payable sheets in order to give the appear ance of the approval of said items by the said Board of Finance; and the said Hayes, Leary, Kelly and Dunn continued to make payments to the said Borgnaes, Kingsley, Meany and Murray and other accountants in excess of the amounts appropriated for accounting services, in violation of the charter of the City of Water bury; and the said Hayes, Leary, Kelly, Kingsley, Meany, Murray, Borgnaes and Dunn and others, by the means aforesaid, did prevent the unlawful expenditures of said city and its true financial condition from becoming known to the residents and taxpayers of said city, all for the purpose of concealing the un- lawful and fraudulent methods and transactions of the said Hayes, Leary, Kelly and Dunn and for the purpose of concealing the formation and existence of said conspiracy.
 Received S191.747.o6
 And in further pursuance Of said conspiracy, to wit. between the l4th day of July, 1930 and the 17th day of June, 1887. the said John S.. Johnston, then a resident of New York City and then in the employ of a corporation owned or controlled by the said Leary, did receive from the City of Waterbury a total Of S1gl, ,74706 in return for certain financial advice claimed to have been given by him to said city off, cials and in return for certain lob bying services claimed to have been rendered by him in behalf of said city during the legislative session of 1881, which services were never rem dered by him in that amount. Said payments were made to the said Johnston by means of checks issued from time to time in form and man. rer as aforesaid and unnumbered when issued, payable at the Citizens and Manufacturers National Bank of Waterbury and not drawn In reg uiar course by the City Clerk, sign ed by the said Leary and all ex- changed for currency in the banking rooms of the said Waterbury Trust Company by the said Olsen. None of said payments was ever approved by the Board of Finance of said city as required by It's charter, and upon the order of said Hayes, Leary, Kelly, Borgnaes and Dunn, said pay ments were not placed upon said warrants payable register sheets un- til after said sheets had been sign ed by the members of said Board, thereby giving the appearance Of tho approval of said payments on the part of the members of said Board of Finance, and thereby con- cealing said payments from the Board of Finance and from the cit- izens and taxpayers of said city. and all for the purpose of concealing the unlawful and fraudulent methods and transactions of the said Hayes,