Year: 1873




Sinking Fund ACKNOWLEDGEMENTS. DOOO W
City Treasurer's Deposits IL
These are shown in figures which do not lie,
but behind these there are certain facts well
known, though yet to be established by proof,
which will not be lost sight OF.


Mr.. Hugh Mclaughlin (the nephew of the
Boss" who is the Register) Is the ollclal
charged by the Controller with approprlatlng
to his own use the interest III the Fire De-
partment Fund to the amount named. lns
/ only plea in extenuation OF the onehse Is thit
| it is an old one, authorized by custom. III
other words, his predecessors did 1t, and have
been doing it for years. Mr.. Schroeder says
he has good proof of this swlndle by Nc
Laughlin. He can get equally as good against
| McIaugbln's predecessors, and ii he can re-
| cover from one he can recover from all. The
"nickings and stealings" in this department
will be found to be enormous in the aggre-
gate. Set an accountant ut work at once to
secure the proofs.


The deficiency in the funds of the Board of
Education was traced through two banks III
which the account was kept. This indicates
that there may be something wrong in other
than the Ring banks. Are there to be no fur
ther inquiries Mr.. Warren's certificate shows
this account to have been made good, as the
others we're. Is 1t not important to know by
whom


The Sinking Fund was robbed on two occa-
sions The money was returned in five INSTALL
ments, all of which were paid into the trust
Company after the Ring, which had used the
money, grew frightened at the downfall OF Its
New York model and the exposures OF IHE
TRIBUNE The last installment, with only
part interest, was returned by Kodman
himself through the Fulton Bank into the
Trust Company during its late suspension,
and long after it was known that there
was deficit in this account. 1t Is now as
serted and believed that the money thus paid
by Rodman was not his own; that he
never stole the funds originally; that he was
employed to return the money under promises
of protection, and that he was thus sklllfully
entrappedinto furnishing proofs against himself
which may yet send him to State Prison
Now it is important that it should be. shown,
and investigation will do it, who got this sixty
thousand dollars and used it for more than
four years without interest, while the city was
paying high interest on its debt. Sixty thou
sand dollars for four years at legal interest Is
worth Sf6,8O0; there should be some restora-
ton of this Let ROdman's cOnfederates be
detected and made to disgorge.


The last named sum of S9S,92O II is what
was left unpaid of defalcation which has
been standing for years, and which at one
time was as high as $4O5,071 2S. 1t was not
Mr. ROdman's steal. He probably never got
penny of it. His counsel have proof, or assert
that they have, that Rodman was employed
only to take the City Deposits from the Treas
ury and put the amount where the Ring could
use it. That delalcatiOn has averaged for two
years past nearly, if not quite, S3OO,OOO the
interest of which alone must have paid the
Ring which used it $4,000 year. This in
terest is lost to the city, and ought to be re-
covered with the principal. 1t will not be
difficult to determine these thieves. 1t is
already generally suspected what public
officials shared in the use of this fund, and
who combined to repay it when reformation
threatened to expose the fraud. There are
runOrs of five loans to one individual. Mills
anu Rodman got only Trust funds; the de-
faulters to the city were others, and 1t will
not be news in Brooklyn when 1t is finally
shown that they were public officers OF the
city.


Nor are these positive defalcatiOns the only
ones indicated by the brief examination which
has been made. Mr.. Warren has shown that
three years ago there was an unexplained"
deficiency-a very palpable defalcation-in
the City Treasury of S5Sl 1873 10. 1t may ap
pear that this was the defalcatiOn which has
gradually been reduced to S9S0OO. We hope,
and indeed think it is, and this sum is not,
therefore to be charged TO the profit of the
Ring and the loss of the city. But the dis
covery shows conclusively that so far back
certainly as 1870 the Ring was using over half
a million of the city funds Even il this has
been returned the thieves still owe interest on
it, for while they were thus using it for their
own purposes the city was paying heavy rates of
interest on debt that this stolen amount might
have materially reduced. Now, what is wanted
is that this theft be traced directly back 10 it's
first appearance, in order that it may be
known precisely how much the Ring had at
the end of each month, and that the interest
thereon may be calculated and collected. The
men who used it can be discovered by any
sagaciOus accountant. No Ring was ever yet
so shrewd or so careful that it could conceal
all its footprints from earnest men bent on
detecting and reforming.


Further still, the fact has been developed
that there is deficiency of $4,000, 900 in the
Tax Collectors Office; and it is by no means
certain that the whole of this can be accounted
for ON the plea that the taxes are in arrears
If this defense is good, let an opportunity be
given for its presentation. But there is
grave and widespread suspicion that exam
IN will thousands of