Trust Company (New York, NY)

Article Text

The Trial of Cortland A. Sprague. The Defendant Testifying in His Own Beha'f. The trial of ex-City Treasurer Cortland A. Sprague was continued yesterday morning in the Brooklyn Court of Sessions. The crowd in attendance was greater, If possible, than on any of the previous days of the trial, and an increased interest was manifested in the case. Mr. Sprague was in attendance before the proceedings opened, and his counsel, Messrs. Francis Kernan and D. P. Barnard, soon followed him. Mr. Joshua M. Van Cott appeared for the prosecution, District Attorney Rodman having withdrawn from the case last week in consequence of illness. Mr. Rodman, however, was present a few hours in the earlier part of the day, but did not participate in the proceedings. The prosecution having rested their case on Friday, and Mr. Barnard having opened the case for the defence, yesterday was devoted to the introduction of testimony on behalf of Mr. Sprague. MR. SPRAGUE ON THE STAND. Mr. Sprague was called to the stand and settled himself for a protracted examination. He gave his testimony in a straightforward manner and with a coolness that surprised many of the spectators. The direct examination was conducted by Mr. Barnard, and in the opening part elicited from Mr. Sprague that he (Mr. Sprague) had been in the hardware business for twenty-five years, principally in New York. The present firm of Mulford & Sprague was formed in 1859, and the business was prosperous. His term of office as City Treasurer commenced on January 1, 1869, previous to which time the business of the Treasurer was transacted in the Nassau Bank. He determined to transact it thereafter at the Trust Company's office, the directors of the company having requested him to do 80. Some of the directors were his bondsmen. He did not know Rodman before he was elected, and the appointment of Rodman as Deputy Treasurer was suggested by the directors, who employed him as secretary. Q. What books did you refer to to guide you in performance of your duty? A. The book of daily balances, a guide to show me on what bank to draw to keep the bank balances equal; don't remember referring to any other book or paper; signed receipts in Collector's book at my convenience once in two or three weeks: the Collector called for it once in six months: the receipts were not signed daily; when Rodman was out of town Mr. Baker, of the Trust Company attended to the duties of Treasurer: before Rodman became deputy allowed him no salary it was understood that was to have assistance gratis from the clerks of the Trust Company was to pay nothing to clerks; RODMAN TRANSACTED MY PRIVATE BUSINESS: he had possession of my securities the City Treasurer's safe was in the back office of the Trust Company it contained all the books and papers of the Treasurer's office and the Leng Island Club papers: the safe was locked, supposed, with an ordinary combination lock: never locked nor unlocked it my papers were in an iron box in the Trust Company' safe; Mr. Rodman had the key to that box: might have had the key at times; never opened the box after the suspension of the Trust Company my desk contained my private papers, cancelled checks, my bank book and check book remember Rodman calling for the key in the Long Island Club rooms; Rodman came in while we were tiking dinner and asked me for the key asked what he wanted to take out of the box: he said he did not want to take anything out, but to put something in; those were exciting times, and can't remember dates or hour of the day think this was before Warren, the accountant's, report had been made had had the key only a few days: had opened the box: after the suspension of the company Rodman came to me very much excited and said he wanted to go away as he was sick; he asked me what thought about it: said thoughthe looked sick: he said he woul get Judge McCue's permission to go I spoke of the papers in the box. and I took out papers belonging to my sister's estate and he took some belonging to me sent for the key when he came back from the country Mr. Husted, one of the directors, went with me to the box and found a number of second mortgage Williamantic Railway bonds, the amount was $5,0000: had something to do with the railroad: when was sick Mr. Mills and Mr. Rodman came to me and got me to inJorse a railroad note, which alterwards went to pro test; this all had to do with the railroad; I looked for the cancelled checks and books in my desk, but could not find them do not know where they are: have not been taken out by my order or with my knowledge: my private financial business was transacted by Rodman; the Trust Company check of October 1870, for $4,995. drawn to my order on the Nassau Bank, was given for Jefferson Car stock told Mr. Rodman I wanted the money what wanted it for, and he gave it to me. Q. Did you request him to TAKE IT FROM THE CITY FUNDS? did not. Positively Did you ever so request him? A. No sir, never. He had collaterals enough to raise that money on the street! A. More than four times enough; no, will not say that-1 will say more than enough I never suggested to him that that money was to be made good by moneys abstracted from the city funds: did not know that Rodman made that money good by reserving city money from being deposited. Q. Did you know that the day after the check was made the city deposit was $4,995 short! did not. Q When did you first hear anything of that kind A. A long time after the failure of the Trust Company: the check shown me, dated November 5, 18/0, for $8,200, was paid by me for Fulton Bank stock; probably fold him to make the check he had collaterals that would have raised the sum he had the bank stock in his possession: do not remember telling nim to "fix it: gave him no directions to make it good out of the city funds; did not know thatit was made good on the 11th of November, 1870, by the retention of $8,20 of the city funds: did not know there were $8,200 short that day first learned it after the failure of the Trust Company; have known Jacob B. Murray twenty five years the check shown me dated October 14, 1870. drawn to my order, and indorsed by me to Murray was issued by the Trust Company through Mr. Rodman as loan HAD NO INTEREST IN THE LOAN: I did it for Mr. Murray and the Trust Company I have no distinct recollection of the check dated April 5, 1871, to my order for $6,000 and indorsed to Murray had no interest in it; was in the habit of going to New York in the morning and returning in the middle of the day. and did many little lavors in Brooklyn for Mr. Murray and others: understood that the loan was from the Trust Company to Murray had no interest in the matter other than as friend of Mr. Murray's. Q. Did you know that the money that went to make these checks good was city money! A. did not; did not tell Rodman in any language that the money to make these checks good was to be taken out of the city funds: first heard of it after the suspension did not know that the city accounts were short these amounts Rodman never informed me of it: the first knew of the Long Island Club note was when Mr. Lowber asked me to indorse it; did not know it was to be cashed by city moneys; understood the Trust Company was to give the money on it; had no idea that the monev to be paid the club was city money did not know that on the 16th of January, 1871. the city credits were $10,000 short: never heard of it till after the suspension of the Trust Company succeeded Mr. Lowber as President of the club; during the President time was MR. RODMAN NEVER SPOKE OT THE NOTE at the meetings of the directors after indorsed the note handed it to Judge McCue he indorsed and passed it to Mr. Lowber nextsaw the note after suspension of the Trust Company: did not know the note was in the box among my securities: thought it was in hands in the rust Company after the suspension Mr. Chauncey told me that he had a from a New York broker in reference to the note did not put it in any one's hands for collection when Mr. Rodman stated he was sick and was going away. he gave me the note among other papers and told me to take care of them: putit other papers in an envelope. intending to give it to Judge McCue. but the next day, as Mr. Rodinan did not go away. I handed it to him: when Rodman returned from the country he gave me the note again; there was discussion as to who owned the papers; Mr. McCue wished to get paper from Mrs. Rod man in acknowledgment of these papers, and be