The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-02-07
Leaving deficit
$646,754 SO

Why did not Hoyt know then Of this deficit on the
bond account the transfer made to him!
He did know it for see what Gpin says his
port OF November 10Th:
All the abstracts, vouchers, and other documents,
relating to the collectors account for the first quarter
Of 1885, being the last OF Mr. Swartwout's term,)
which had been furnished. have been trans
mitted to the First Auditor. These documents how
ever want the signature Of Mr.. Swartwout, though
prepared by the officer who transacted that branch of
his official business. The Of their being thus
Incomplete appears to have been the desire OF Mr..
Swartwou that they should no, be furnished to the
counting officers until his return from abroad BY that
time, according TO the statements of Mr. Ogden, he
hoped 10 be able TO make arrangements for the sete
OF the whole defalcaton. The want OF them,
however, delayed the present collector in the completion
Of his accounts, as It was necessary to include
therein an accurate statement Of the balances cash
and unsolicited bonds handed BY Mr.. Swartwont,
and that the same shond agree with the final
of the latter, rendered the Treasury Department
The urgent demand for this. made by the present col
ector upon the officer having charge OF these accounts,
and the difficulty Of obtaining II, first led TO the suspi
cions communicated by him TO the Department, which
rendered more certain by the subsequent exam-
nations he Immediately instituted"
Here, it seems, Hoyt first put upon the scent.
When! When the transfer made-when he, OF
course was upon coming office, looking after what
to be transferred by his predecessor Yet we are
still told there were no suspicious until November,
1898
Again sir We told by the report Of Gilpin and
Barker, Of November 18th, that
When Mr. Swartwout's tenn expired on the 2Sth
March, 1888, it appears, by his own account, that he
was charpeabe with $20l .O96 40 Of cash retained to
meet protests and with Sl64,Ol0 60 Of cash de-
posted with him to meet ulascertained duties The
only portion Of this which he paid over TO his successor
was 10 229 "a to meet protests :" leaving the
amount Of that fund retained by him. $40 ,s66 46"
Thus Swartwout's ora account showed a balance Of
$20l 096 40 Of cash retained to meet protests, and
$l640l0 60 Of cash deposited with him to meet unas-
certaned duties he paid over to his successor only
Ss229 "a to meet protests and yet no suspicious were
excited until November, 1888
Sir all this is too much 10 expect OF our credulity.
| will show YOU now that Hout must have known OF
this dealcation long before Novemberi in TACT soon
after he came into Office. That his subordinate
knew of il long before-years before Swartwout
himself went out of Office and if Hoyt and his sub
ordnates knew it, that the Secretary must have been
informed long before November, 1888
Ogden the cashier of Swattwout and Hoyi Phil
lips The assistant CASH r, and Fleming, the auditor
of the custom house, all knew Of this defalcation
for years In proof of this, qnoe first the report
OF the 9th Of November, signed by Giipin and Bar
ker 10 the Secretary:
THE examna lion requisite to ascertain the manner
in which the money distracted. and the details OF
the defalcation which has been going for seven or
eiph, wears will require DAYS All that We Know
in regard present is derived from roln'ry com
mun,caton made us last evening by MI HrnN Ogden,
the cashier of the custom house during MIR SMarNous
term. .
Having been informed that The large defacaon
was known to the public officers. aud that had
to New York for the purpose OF investigating u he
called us and at IN the presence OF Mr. frce
the District Attorney who was with ns, entered frankly
into a conversion the subject lie commenced 10y
saving that the circumstances OF the case mao 'ooofd
him exceedingly for some time ard that he had strongly
urprd Mr. Swarwou not 10 leave the United States IN
Angus, last that he had told him was scarcely pos
shlc the dedication could remain much longer conceal
ed especaly since The for the last quarter had
been called for and not furnished that nc ADVISED h'm
instead of going 10 Europe go at once TO Washing
ton submit statement Of the whole matter TO the BE.
cretary Of the Treasury, surrender his properly ana
make the best arrangement he could that MI Swart-
told him in reply, he was confident OF being anie
TO raise money in England, by which he could pay his
whole debt 10 the United States he re,nrned
and he did not think the business would be known be-
fore that time.
..In reply TO our inquiry to the time when the
abstraction Of the public money commenced, he stated
that il was about nine months after Mr. Swarwou was
sppoined collector He sferw ards said he supposed u
might have been a year ser-that is, IN 1880 tha''
the amount OF the delscation increased, he frequency
spoke TO Mr. Swartwout the subject ana .ha' Vu
four years since il had become so large 'na' "e w
Swartwout that unless measures were 'ake" ~ -
!, he co,ld M, consen, to continue IN the station no
held Mr. Swartwout was, however conhue" ua. ,ne
opera,ons in which he was cngagsd ~o"u '. P s'
az 10 make il easy 10 for him pa, on 'ns "no'e ,
Til. "ode of ,,es,pe the subject Mr. S~sr"ont con-
,nmsd 10 neTsist in 10 the last always expressing his
belief that he could set matters hRh' ,.,,
" In reply to inquiry as to the mode N wh, Chine inc
,"d ,hat Mr. Phillips, the assistant cashier, was more
civ acquainted with the particulars than himself but
that il commenced by Mr. Swsnwout not passing 70 me
credit OF the Treasurer the whole sums received.
Again, sir; From Gilpin's separate report NO
vember 10Th, we learn: ~
From Mr.. Philips the assistant cashier ourl"g W..
Syartvout's official term, we feceVeo 'e'Oa' ''