Chapter 6 of 65 · 3430 words · ~17 min read

Part 6

"A careful examination of the books and pay-roll (of the Comptroller's Office) developed the important fact that the titles of several accounts might be duplicated by using different phraseology to convey the same meaning; and that by making up pay-rolls, by using fictitious names of persons alleged to be temporarily employed in his (the Comptroller's) department, he could even cheat the 'heathen Chinee,' who had invited him to take a hand in this little game of robbery. Hence, Mr. 'Slippery' set about finding additional titles for several of the accounts, and in this way 'Adjusted Claims' and 'County Liabilities' became synonymous terms, and all moneys drawn on either account, instead of being charged to any appropriation, became a part of the permanent debt of the city and county. Under the same skilful manipulation, 'County Contingencies,' and 'Contingencies in the Comptroller's Office' meant the same thing, as did also the amount charged to 'Contingencies in the Department of Finance,' generally charged in the city accounts to make it less conspicuous. Again, there are three distinct pay-rolls in the County Bureau. One of these contains the names of all the clerks regularly employed in the Bureau, and about a dozen names of persons who hold sinecure positions, or have no existence. The other two rolls contain about forty names, the owners of which, if, indeed, they have any owners, have never worked an hour in the department. The last two rolls are called 'Temporary Rolls,' and the persons whose names are on them are said to be 'Temporary Clerks' in the Comptroller's Office. One of them is paid out of the regular appropriation of 'Salaries Executive,' but the other is paid out of a fund raised by the sale of 'Riot Damages Indemnity Bonds,' and becomes a part of the permanent debt of the county. Again, there are no less than five different accounts to which repairs and furniture for any of the public offices, or the armories of the National Guard, can be charged; while more than half of the aggregate thus paid out, is not taken out of any appropriation, but is raised by the sale of revenue bonds or other securities, which may be converted at the pleasure of the Comptroller into long bonds, which will not be payable until 1911--forty years after many of the frauds which called them into existence shall have been successfully consummated by Connolly and his colleagues. . . .

"When it becomes necessary to place a man in an important position, or a position where he must necessarily become acquainted with the secrets of the office, some one who is already in the confidence of the thieves throws out a hint that their intended victim can make $100 or $200 a month, in addition to his salary, by placing one or two fictitious names on one of the rolls, and drawing the checks for the salaries to which actual claimants would be entitled at the end of each month.. This involves the necessity of signing the fictitious names on the payroll or voucher, when the check is received, and endorsing the same name on the check before the bank will cash it. . . . So long as he is willing to do their bidding, and to embark in every description of rascality at their dictation, he can go along very smoothly; but if he should become troublesome at any time, or if he should show any conscientious scruples when called upon to execute the will of his masters, they would turn him adrift without an hour's warning, and crush him, with the evidence of his guilt in their possession, if he had the hardihood to whisper a word about the nefarious transactions he had witnessed."

We have not the space to enumerate the various methods of plundering the city adopted by the Ring. What we have given will enable the reader to obtain a clear insight into their system. During the years 1869 and 1870, the following sums were paid by the Comptroller:

$ Keyser & Co. 1,561,619.42 Ingersoll & Co. 3,006,391.72 C. D. Bollar & Co. 951,911.84 J. A. Smith 809,298.96 A. G. Miller 626,896.74 Geo. S. Miller 1,568,447.62 A. J. Garvey and others 3,112,590.34 G. L. Schuyler 463,039.27 J. McBride Davidson 404,347.72 E. Jones & Co. 341,882.18 Chas. H. Jacobs 164,923.17 Archibald Hall, jr. 349,062.85 J. W. Smith 53,852.83 New York Printing Co. 2,042,798.99 Total 15,457,063.65

These are the figures given by the "Joint Committee of Supervisors and Aldermen appointed to investigate the public accounts of the City and County of New York." {86} In their report, presented about the 9th of October, 1871, they say: "Your Committee find that immense sums have been paid for services which have not been performed, for materials which have not been furnished, and to employes who are unknown in the offices from which they draw their salaries. Also, that parties having just claims upon the city, failing to obtain payment therefor, have assigned their claims to persons officially or otherwise connected with different departments, who have in many instances fraudulently increased their amounts, and drawn fourfold the money actually due from the city. Thus it appears in the accounts that hundreds of thousands of dollars have been paid to private parties who positively deny the receipt of the money, or any knowledge whatever of the false bills representing the large sums paid to them. These investigations compel the belief that not only the most reckless extravagance, but frauds and peculations of the grossest character have been practised in several of the departments, and that these must have been committed in many instances with the knowledge and cooperation of those appointed, and whose sworn duty it was to guard and protect the public interests."

Under the management of the Ring, the cost of governing the city was about thirty millions of dollars annually. The city and county debt (practically the same, since both are paid by the citizens of New York,) was doubled every two years. On the 1st of January, 1869, it was $36,000,000. By January 1st, 1871, it had increased to $73,000,000. On the 14th of September, 1871, it was $97,287,525, and the Citizens' Committee declare that there is grave reason to believe that it will reach $120,000,000 during the present year (1871).

For several years the Ring continued their robberies of the treasury, enriching themselves and bringing the city nearer to bankruptcy every year. Taxes increased, property was assessed for improvements that were never made, and the assessments were rigorously collected. Large sums were paid for cleaning the streets, which streets were kept clean only by the private subscriptions of the citizens residing in them, as the writer can testify from his personal experience. The burdens of the people became heavier and heavier, and the members of the Ring grew richer and richer. They built them palatial residences in the city, and their magnificent equipages were the talk of the town. They gave sumptuous entertainments, they flaunted their diamonds and jewels in the eyes of a dumbfounded public, they made ostentatious gifts to the poor, and munificent subscriptions to cathedrals and churches, _all with money stolen from the city_; and with this same money they endeavored to control the operations of Wall street, the great financial centre of the Republic. They built them country seats, the beauty and magnificence of which were duly set forth in the illustrated journals of the day; and they surrounded themselves with every luxury they could desire--all with money stolen from the city. Did any man dare to denounce their robberies, they turned upon him with one accord, and the whole power of the Ring was used to crush their daring assailant. They encouraged their adherents to levy blackmail upon the citizens of New York, and it came to be well understood in the great city that no man, however innocent, arrested on a civil process, could hope to regain the liberty which was his birthright, without paying the iniquitous toll levied upon him by some portion of the Ring. Even the great writ of Habeas Corpus--the very bulwark of our liberties--was repeatedly set at defiance by the underlings of the Ring, for the purpose of extorting money from some innocent man who had fallen into their clutches.

The Ring was all-powerful in the great city, and they there built up an organized despotism, the most infamous known to history. No man's rights, no man's liberties were safe, if he ventured to oppose them. They even sought to strike down freedom of speech and the liberty of the press. Mr. Samuel J. Tilden, in the speech from which we have quoted before in this chapter, makes this distinct charge against them. He says: "Mr. Evarts went to Albany last year, and carried with him my protest against the passage of the law giving to the judges a power unknown in the jurisprudence of this State--unknown in the jurisprudence of the United States for the last thirty years--_whereby it was secured that any member of the City Government that might be offended_, _could put his hand upon the city press_, _and suppress its liberties and freedom of speech_."

How long all this would have continued, it is impossible to say, had it not pleased God that there should be jealousies and dissensions amongst the members of the Ring strong enough to break even the infamous bonds that had so long bound them together.

The citizens of New York had for some time been slowly coming to the conclusion that they were losing their rights and property, and had been seeking for some legal means of attacking and overthrowing the Ring. Their great necessity was absolute and definite proof of fraud on the part of certain individuals. This was for a long time lacking, but it came at length. In July, 1871, a former prominent member of the Ring, having quarrelled with the Ring over a claim of three or four hundred thousand dollars, which Mr. Tweed had refused to allow, avenged himself by causing the publication of a series of the public accounts, transcribed from the books of the Comptroller. These accounts showed the millions that had been fraudulently paid away for work which had never been done, and furnished the first definite evidence of fraud on the part of the members of the Ring that had been given to the public. The press, with the exception of a few unimportant sheets owned or controlled by the Ring, denounced the frauds, and demanded an investigation of the public accounts. Mayor Hall, William M. Tweed, Richard B. Connolly, and all the greater and lesser magnates of the Ring were implicated in the terrible story told by the published accounts. The respectable citizens, without regard to party, at once joined in the demand, and expressed their determination to put an end to the power of the Ring. The whole land--nay the whole civilized world--rang with a universal cry of indignation. The temper of the citizens was such as admitted of no trifling.

The publication of the Comptroller's accounts, which revealed the stupendous system of fraud they had practised so successfully, burst upon the Ring like a clap of thunder from a clear sky. It not only surprised them, but it demoralized them. They were fairly stunned. At first they affected to treat the whole matter as a partisan outburst which would soon "blow over." Some of the more timid took counsel of their fears and fled from the city, some even quitting the country. The more hardened endeavored "to brave it out," and defiantly declared that the citizens could not molest them. All the while the wrath of the people grew hotter, and the demand for the publication of the Comptroller's accounts became more urgent. Comptroller Connolly, conscious of his guilt, met this demand with vague promises of compliance. Mayor Hall set himself to work to prove that the whole affair was a mistake, that no money had been stolen, that the City Government had been unjustly assailed, and by his ill-advised efforts drew upon himself a larger share of the public indignation and suspicion than had previously been accorded to him. The great object of the Ring was to gain time. They meant that the Comptroller's accounts should not be published, and to accomplish this they began the attempt to get possession of the Comptroller's office, the records of which contained the evidence of their crimes. With this important department in their hands they could suppress this evidence, or, if driven to desperation, destroy it. A council of the leaders of the Ring was called, at which it was resolved to get Mr. Connolly out of the Comptroller's office, and to put in his place a creature of their own. They did not dare, however, to make an effort to oust Connolly, without having some plausible pretext for their action. They feared that he would expose their mutual villainy, and involve them in his ruin, and they wished to prevent this. Still, they resolved to get rid of him, and their plan was first to crush him, and thus prevent his exposing them. We shall see how their plan worked.

Meanwhile the public indignation had been growing stronger daily. On the 4th of September, 1871, a large and harmonious meeting of citizens, without regard to party, was held at Cooper Institute. At this meeting it was resolved to compel an exposure of the frauds practised upon the people, and to punish the guilty parties; and committees were appointed, money subscribed, and the best legal talent in the city retained for that purpose. A reform movement to carry the November elections in the interest of the citizens and tax-payers was inaugurated, and the power of the courts was invoked to put a stop to the further expenditure of the city funds. The popular sentiment was too strong to be mistaken, and some of the leading officials, and several journals which had previously supported the Ring, took the alarm and entered the ranks of the party of Reform. The Democratic party of the State repudiated the Ring, and it was plain that the Tammany ticket would be supported only by the lowest classes of the city voters. The members of the Ring were now thoroughly aroused to the danger which threatened them; but, true to their corrupt instincts, they endeavored to meet it by fraud. They appointed a Committee of Aldermen to act with the Citizens' Committee in the investigation of the alleged frauds, and then withheld from them all evidence that could be of service to them.

The Comptroller's office contained not only the accounts of moneys paid out, but also the vouchers for all sums expended, properly signed and sworn to by the parties receiving the money, and these vouchers constituted the principal proof of the frauds. On Monday, September 11th, the city was startled by the announcement that the office of the Comptroller had been forcibly entered during the previous day, Sunday, and that the vouchers covering the principal transactions of the Ring had been stolen. It was a bold deed, and was so thoroughly characteristic of the Ring, that the public at once attributed it to that body. The Ring on their part endeavored to produce the belief that the Comptroller had stolen the vouchers to screen himself. Mayor Hall immediately wrote a peremptory letter to Mr. Connolly, asking him to resign his position as he (the Comptroller) had lost the confidence of the people. Mr. Connolly was not slow to perceive that the Ring were determined to sacrifice him to secure their own safety, and he declined to become their victim. He not only refused to resign his position at Mayor Hall's demand, but set to work vigorously to discover and bring to light the persons who had stolen the vouchers. To have stolen the vouchers himself, or to have countenanced the robbery, would have been worse than folly on the part of the Comptroller. It would have damaged him fatally with the citizens, who were disposed to deal lightly with him if he would aid them in getting at and punishing the villainies of his former confederates. There was no reason why he should seek to screen the Ring, for they made no secret of their intention to destroy him. In view, therefore, of the facts as at present known, it seems certain that the theft was brought about by the Ring for the purpose of throwing the suspicion of the crime upon the Comptroller, and thus giving them a pretext for crushing him.

Wisely for himself, Mr. Connolly determined to let the Ring shift for themselves, and throw himself upon the mercy of the Reform party. He withdrew from the active discharge of the duties of his office, and appointed Mr. Andrew H. Green--an eminent citizen, possessing the respect and confidence of all parties--his deputy, with full powers, and avowed his determination to do his utmost to afford the Citizens' Committee a full and impartial investigation of his affairs. The Ring made great efforts to prevent his withdrawal, or, rather, the appointment of Mr. Green. Says Mr. Samuel J. Tilden, who was the real cause of this action on Mr. Connolly's part, and who was the acknowledged leader of the Reform Democracy during the contest:

"When Mr. Connolly came to my house on that morning on which he executed an abdication in favor of Mr. Green, he was accompanied by two counsel, one of whom was half an hour behind time, and I learned, not from him, but from other sources, that he spent that half hour at the house of Peter B. Sweeny. When the conference went on, he said, not speaking for himself individually, but still he would state the views taken by other friends of Mr. Connolly as to what he should do. He said he was assured that some respectable man would be put in the office of Comptroller, and that then he would say to Mr. Booth, of the Common Council Committee, and to the Committee of Seventy: 'I am competent to make every necessary investigation myself.' And that then everything that would hurt the party would be kept back; and that was the consideration presented to Mr. Connolly in my presence, and in the presence of Mr. Havemeyer and the two counsel. I told Mr. Connolly that the proposition was wrong, and would fail, and ought to fail; that no man had character enough to shut off the injured and indignant citizens from the investigation desired; and if he attempted to do it, it would ruin everybody concerned in it, and plunge him in a deeper ruin. That his only chance and hope was in doing right from that day, and throwing himself upon the charity and humanity of those who had been wronged."

Failing to prevent the appointment of Mr. Green, the Ring endeavored to ignore it. The Mayor professed to regard the Comptroller's withdrawal from his office as a resignation of his post. He at once announced his acceptance of this resignation, and proceeded to appoint a successor to Mr. Connolly. Here, however, the Ring met with another defeat. During the early part of 1871, Mr. Connolly had some idea of visiting Europe, and, in order to keep prying eyes from his official records, had procured the passage of a law by the Legislature, authorizing him to appoint a Deputy-Comptroller, who "shall, in addition to his other powers, possess every power, and perform every duty belonging to the office of Comptroller, whenever the said Comptroller shall, by due written authority, and during a period to be specified in such authority, designate and authorize the said Deputy-Comptroller to possess the power and perform the duty aforesaid." Mr. Connolly thus had the legal power to appoint Mr. Green, and the Mayor's refusal to recognize the appointment was mere bombast. The best legal talent in New York sustained Mr. Connolly, and the Mayor's own law officer advised him that he must respect the appointment; and so the statute that had been framed for the protection of the Ring was unexpectedly used for their destruction.

[Picture: THE ROBBERY OF THE VOUCHERS]

Still another discomfiture awaited the Ring. A few days after the appointment of Mr. Green, a servant girl employed in the family of the janitor of the new Court House, unexpectedly revealed, under oath, the manner in which the vouchers were stolen from the Comptroller's office, and the names of the thieves. Her sworn statement is as follows: