The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-16
PART I.
THE DEFALCATIoNs OF Mr.. swARTwoUT.
This branch Of the report dvides itself with refe-

ID. IheU duration.
3D.. Their causes.
] THE EXTENT or MR. swARTwouT's pEYALcAross.
There seems TO be cause 10 doubt the correctness
OF the reports Of the Treasury officers as 10 the extent
OF Mr. owsHwouis defacauons, viz: (Si, PCS. 705 69)
one million tro hundred and i1eniy oe thousand screen
hundred and nee dollars and srfy niae cents At any
rate though the aggregate may be varied by further adj
Iustmens, this Is no more less than the indebted
ness which his own books of accounts exhibit against
MN and, what Is OF no less importance than il may be
matter OF surprise 10 The House and country UNDER
stand. this Indebtedness of Mr. Swartwout 70 the Co
vernment now constituting the measure Of his defslcs.
lions, great and alarming as il Is. is no more less
than has been shown and permitted openly to grow
upon the face Of his official quarterly returns made with
periodical regularity TO- and for the investigation Of the
accounting officers Of the Treasury Department
On The accounts Of Mr. Swsnwont 10 the end Of the
last quarter preceding his leaving the Office of collector
viz up December 81. 1897, no difference whatever
not to the amount Of dollar has arisen between him
and The accounting officers Of the Treasury. In regard
to Ill transactions up that period all his charges
against the Government have been found just and
SLOWED; and, on the other hand. he has not been
found chsrgeabe with any sum whatever, which he had
omitted TO charge against himself
There being, moreover, no dispute or omission Of
items in his subsequent and last quarters accounts up
to March 49, 1885, il follows that part of the large
already stated is derived by either travelling
Of his hooks Of official accounts, or going behind
the actual balance returned by himself and adjusted by
the Treasury Department up to December. 1897.
To these points, the testimony OF Mr.. Fleming, andi-
tor Of the customs under both the late and present col
lector at New York, IS explicit, as follows
Examined by Mr.. Smith
Question Is. What is the aggregate difference he
tween Mr.. Swsrtwout's accounts, down to the end OF
the fourth quarter Of 1887, returned by him to the
Treasury Department, and the amount which has sub
sequenty been allowed to him on those accounts by the
Treasury Department!
Answer, | think the Treasury Department have al
lowed all the charges made by Mr.. Swsrtwout 10 the
above time and that no difference exists in such &C
count with The Treasury Department.
Question IA Has the Treasury Department, in ad-
usng Mr. Swartwouts accounts to the end OF the year
1887 charged ssid Swartwout with any sum which he
had omitted IN his own accounts rendered up to said
period
Answer. They have not.
Question IFS Is or is not the balance now claimed
to be due by the Treasury Department from Swarwout
according to House document l3, and amounting to
1928, 705 &c. derived wholly from the balance found
due on his accounts, ending December 81 1887, as
settled by the Treasury Department and from the ba
lance OF his succeeding quarter Of official operations
combined!
Answer II is. (See journal Of the comuritiee)
John Underwood Esq, examining clerk in the Office
Of the First Auditor Of the Treasury and the conden-
secretary
visit New York and inspect the custom house books in
conjunction with the First Comptroller and Solicitor Of
the Treasury, in November last thus bears testimony
to the same facts
Examined By Mr.. Cmts.
Question 8 Has Mr.. Swartwout, in any instance,
omitted to debit himself and credit the United States
his quarterly accounts with any amount which ought to
have been thus entered BY him. in order to show the
true balance due from Mr. Swartwout?
Answer do not know that he has.
Question 4. Upon the quarterly accounts rendered
by Mr. Swartwout, would not an examination Of them,
and striking Of the balance, have shown the true
amount due from Mr.. Swartwout at any time
Answer II would for although the particular items
Of the balance might, from circumstances, differ from
the true amount Of each, yet the aggregate balance
would be true one. And this will always hold good,
unless part of the duties secured by and
to the collector had been suppressed by him. That
this has been done by the late collector at New York.
know not. lin
Question s. Have you, in your investigation Of Mr..
S~arwouts accounts, or has tho Treasury Department,
to your knowledge, ascertaned any, and what, sum
which ought to have been. but which was not credited
to the United States BY Mr. Swarwou and charged TO
himself either under its specific and appropriate head
under the head Of cash and bonds
Answer do not know Of any such omission in his
quarterly accounts which the accounts received at
the Office OF the First Auditor
Question T. Did or did not the charges against Mr.
Swartwont at the Treasury, and the debit side of his
own account. rendered BY himself to the Treasury
include the whole amount Of the various items which
make mp his dcalcatons, set forth in the letter Of
Mr.. Gipn aud Mr.. Barker addressed TO the Secretary
Of the Treasury dated 18th November 1885, being pa
per u.s. document 10, H. X. Sd session 25th Congress-
Answer. They did
Question O. Could you not from Mr. Swartwout's
accounts rendered the Treasury Department ascer-
tain the balance due from Mr.. Swartwont, without
resort to the New York custom house books
Answer. If the accounts for the first quarter Of 1888
that is, the closing period Of his term-had been for
warded To the Treasury, the true balance due from him
could have been ascertaned there. These accounts
however, retained at the custom house until they
were sent on at my instance to the Treasury at the
same time ! returned to Washington, in November,
1888.
Question l3 Did you, in your examination into the
origin and progress Of Mr. Swartwous defacaton, find
any new items which ought to have been debited to
Swartwout and credited TO The United States, in his
quarterly accounts, and which had not been so en-
tered!
Answer. / did not
From the preceding testimony the committee report,
as established facts:
lst That Mr. Swartvvout is a defaulter to Govern
ment, as appears by his returns, as adjusted from
time to time at the Treasury Department in the sum
OF one million two hundred and twenty-five thousand
seven hundred and FIVE dollars and sixty nine cents
IDLY That this amount OF Indebtedness has accumu-
lated upon the face Of the quarterly accounts regularly
returned by him for adjustment at the Treasury Depart
ment without the omission of any items Of either debit
or credit thereon, until became an absolute defalca-
ton. ...
2. THE DURATION OF MR.. swARrwouTs DEFALcArioNs
The Treasury officers unto in representing Mr.
Swartwouts dealcatons commencing as far back as
in 1880 The Secretary Of the Treasury sums up his own
examination this point and also the statements Of
the First Comptroller First Auditor and Solicitor of
the Treasury, thus: "The first misuse of the public
money by Mr. Swartwout, collector. appears have
commenced in 1880. series OF de falcations in va
rous items Of his accounts, have followed and
continued through each successive year. increasing con-
santy in amount, I'LL the close Of his official term"
(See rep, II. doc. Is, ~ This would Indicate that
they have been Of character eude the vigilance Of
the accounting officers Of the Treasury for series Of
years. and extending back Of the period when the present