The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-02-07

might place him IN funds to make the transfer ifon '
account To that Of the Treasurer OF the United s@'s
Respectfully, yosr obedIent servant n,,,YIrps
al d. Gmrlx, Esq Solieifor Of 0s Irsa'I'y
Again: The statement Of J. A Fleming himself;
Cusron.HousE. Hsw YoRk, -
"Andiior's Office. Non. 10, 1888.
as,K Having been called upon by you to state my
knowledge Of the situation Of the accounts o. oanue'
Syarwonr late collector, and render such inorms-
lion as possess regard 10 the amount due by him TO
the limited States have observe that auditor OF
The custom house, which Office have held from the LIST
of July 1885, the adjustment Of the accounts desosed
on me- and that carried forward the balance from pre-
ceding quarters, deeming IL correct.
IN The month Of June, 1897, being engaged IN prov
ing the Of bonds paid for the quarter ending the
3lst Of March Of that year, found there was large
discrepancy between the bonds payable and bonds PAID
and that the latter fell short Of the former about five
hundred thousand dollars. This circumstance men
TONED TO Mr. Phillips, the assistant cashier whose office
It Is 10 keep the cash book, ard informed by him
that his book contained the record Of all the bonds paid
TO the Government m that quarter Upon tins reply
accordingly closed the bond account as u existed aud
the banks having previously suspended specie Payments
and the troubles IN the mercantile community being
very disastrous, supposed that the payment Of all The
remaining bonds was suspended.
"Mr Swarwout then collector, had received ins,ruc-
tons from the Treasury Department 10 allow
tension Of credit upon all bonds unpaid, and transfer
them for extension TO the district attorney, until the
Government should decide what further
cessary to he pursued. Congress. having then been
convened by tho President egslaie these matters,
the 18th Of October. s37, enacted law authorizing
extension Of credit OF nino months from the date OF
maturity. upon all bonds given prior TO the passage OF
the act, and which then unpaid The number Of
these bonds upa ards Of thousand. and they
ceeded IN amount five millions Of dollars No suspl-
existed with that any portion OF these bonds
had been paid, and the money distracted,
"When Mr. Swsuwout's term Of office expired, It
became necessary TO make thorough examination Of
all outstanding bonds aud 10 render abstracts for the
delivery Of the his successor This work was
completed. after much lsbor in the month Of August
last and when the total amour, was ascertaned was
found TO fall short Of the amount appearing due by the
books Of the office by six hundred and fortysix thou
sand dollars THIS alarming circumstance ! mentioned
the cashier. Mr. Ogden, and requested him to com
municate the fact 10 Mr. Suanwout On the following
day the cashier observed that had better inform
Mr. Swsrtwout myself Of the condition OF the bonds,
at did so. He seemed greatly surprised, and re-
marked that II must be impossible that large def
cheney could exist, and requested that the account
might be examined was accordingly examined,
and every bond found paid by the records Of the Office
was marked off Still the deficiency existed. A
list then prepared of all the bonds unchecked and
unaccounted for, and placed on file in the office.
Prior TO this, and during the re-examnaon, Mr. Ssart
won't sailed for England
:" afterwards proceeded 10 close all ms accounts,
end to prepare a final account current with the Irea-
sury. when there appeared be due from him the
United States million two hundred snd twenty five
thousand dollars When this result finally ascer-
tanned, informed Mr. Hoyt the present collector, that
his accounts would be delayed in consequence Of great
discrepancies IN Mr.. Swartwont's accounts.
[Signed by j. A. FLEMING, Auditor ]
Thus, sir, Ogden, Phillips, and Fleming, all knew!
And the latter tells US thai he told Hoyt that his
counts would be DELAYED "in Consequence of great
discrepancies in Mr.. Swartwouls accounts" When1
Certainly before the 3lst Of October 1888 when he
are Ogden, Phillips, and Fleming? The cashier,
assistant shier, and auditor Of Hoyt, as well as
| Swdrtwout They were not dismissed until within
the last few weeks Do you not suppose, sir, that
these minions communicated all TO Hoyt-were
oiciouS and superserviceable TO do so, IT. order TO
retain their placesl And II they knew ALL and
| Hoyt knew ALL don't you suppose that Woodbury.
knew all Why Hoyts memorandum, again
ask, pitaout date? Should Hoyt be retained in Of
] fee, whilst he keeps such subaerns in his Office 7
Would Woodbury. retain him If he were not a bird
Of the same ieatherl These men, il seems, are well
indoclrnated in the whole black art and mystery Of
the trade of defacation Ay, sir, one of them even
reports his plan OF keeping the public money! Hear
| him, sir:
New York, Nov. IL, 1888.
Sir Agreeably to request made by yourself as to
the manner Of conducting the business at the custom
house. in comparison with the former mode have to
state that Mr.. Hoyt, IN coming into Office. adopted
course which, my opinion is cpery teay calculated to
ensure a safe collection Of the revenue, aud prompt
discharge Of duty by erery connected with the
customs and more artcuarly he is far prac.
tcsble endeavoring to make himself acquainted with
the business OF has snbord'natcs generally
"As all the receipts for customs collected
through the custom. house direct, will give state
Of what he has required Of me, hiring the person
by ntom all moneys are rece'pcd and disbmscd
| He goes on to state the mode, and concludes thus:
81 do not find myself capable Of suggesting any alte-
ration in the mode of managing the public funds differ
ent from that now pursued 1t is simple in its opera
tlons and one least calculated to multiplicity of
agents. by which the public money might be endan-
gered
/ !" In all payments made by me, they are on the au.
,horty Of the auditor through whom all bills must pass
"vey respectfully, your obedlcnt servant,
-. PHILLIPS
III, D. Glpin, ESQ"
| Yes sir, he thinks his mode is "erery ,ray" very
mmendsble--makes "eDery one prompt-Hoyt "hm-
self acquainted - very complimentary TO Mr. Hoyt
But, above all, sir, he can suggest no improvement =
inst he wants It'll ~ simple! NOT conpl cated
by too many checks least calculated to multiply
agents he aud Hoyt have it all to Memselces!
And this rogue, who kept written memoranda for years
of Swartwont's embezzlemen and fraud. is verify the
officer under Hoyt " by nh0m all moneys recciped
and hsbursedr This is a part of Mr. Secretary
Woodburys sysiemr lie is the very man, true. to tell
how TO detect and expose Swarwouf-is he not also.
the very tool to assist Hoy smugge after his prede-
cessors example This excellent agent. this Demo
cratic Loco:loco is in the very cOrcr" he desIeshe
is suited TO penny-would have the thing changed
at all!
Is there not moral ,urpi,ude in others as well
in Swartwout in this transaction believe that the
| Secretary down to Phillips criminal the de-
faulter They will never allow Swartwout and Price to
return this would fully appear, as believe before
/ my country
Sir. let us inquire further, whether this dealca-
ton might not have been prevented altogether if the
Secretary had done his duty After the delacafion