The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-16

sh0sah ~ been recognised ana scee9"'o1 -. :. -.
sh0u' ..sount: in this coasisfed ms ayae"ss
q, collectors accounts on az 49, - ~ hesn pre
m 80 e0 Ts.s,arg-a difference which, as mas peeh
TO M i,ad IA mot affect The aggregate eaiaAss ass
yiousiy S.s.,rOut Lai only The PariieIiars sa'a
from Mr. s~a''uV
balance ,o,, answer TO the Sd qnes-
s,anonndsd BY Mr. Curtis ssy, uousa ~ m;,'i
W" omitted no debit OF c'eua - ~, ans.
SAFES IN his quarterly accounts - !, dsh,, himself
.hs,her he did OF did mol oa'I - ~ s.h ~,
ton "ne'e, .aJ and state the amount oil eash NOT
WIN casa 800 vapr kaor,iedge Of the accounts OF
50 depneu, wv js,sd 10 the Auditors Department 81
W..h,n,,on. and tho examination =, ~. sa -,
- as ~ cu,ton house al ne" oiA' e 10 a 49,
sOd distinct on The subject a. your A"o"'e'ss
able you me last answer. have stated that IN the
Answer lam. kept 6y The collector az the custom
mi entered certain sums TO the debit OIL sad
hoasf h,eh should have been charged to his leash
aeco an" The amount Of said sums, as viii be seen
&c .sIsreoes 10 document No. Is, was S22l DOT 10
n vas therefore, in the cash account kep' oy nun Hme
louse that he omitted to charge himself with the
hs amount aud not in has quarterly accounts render
- "A, Treasury IN tchich IL Is 6siieped he credited
s.jLd himself accountable for all duties receiped by
Question ST. Refer to your answer to the 9th ques-
non propounded by Mr. Curtis. aud say whether upon
s,,m,oation of Swartwout's accounts rs rendered at
INA Auditors office, the defacaiion could have been
sdly detected or not and whether, upon the exami-
;on az All or part Of the books at the cusom-h house,
and in reference the accounts rendered by Swart-
wont the defalcation was not apparent TO you; and
state whether though the frue and aggregate balance
d his accounts was concealed by means Of fraud or
hsehood he did not in those accounts conceal and sup
pres. the true cash balance in his hands.
Answer No part Of tho dedication could have been
,seerained from an examination OF Mr.. Swartwonts
opanedy accounts rendered the First Auditor PRIOR
10 arising bonds, ichich Wouid hare been made
10 appear on thorough examinations of them at the
hms thev rere receiped BY the Treasury. In the col
cctors quarterly account he always included the cash
and unsettled accounts" in item Of the balance, and
there was no means in the First Auditors office Of dis
,npuishtnp The actual cash from the amount OF unset
he'd and suspense accounts. rus therefore only on The
books of he eustomhouse far as kno,o, that APP
pears "eone>aed and suppressed the true cash ba-
lance in his hands"
Corroboratye Of the view thus taken by the com
mittee, they will quote also another portion Of Mr.,
Jennings testimony, which clearly ndi :ates that he
would be led into that would imply it rs
his opinion that Mr. Swartwout or justly be re-
garded defaulter prior to 1887. He leaves such
construction wholly the responsibility Of the execu
tive officers.
Examined BY Mr. Smith.
Question rs. What was the amount Of Swartwout's
dealcatons arising prior to 1887 and subsequent to the
year 1880
Answer The amount Of such defalcations, as en-
hbted in The report Of The Secretary Of the Treasury
III document No Is, to The House Of Representatives.,
was $3367ls 60
Question a. Did YOU or did you not, in your exami-
nation Of Swartwouts accounts, deduce and furnish to
the Treasury Department the data upon which the Sc
cretas report referred to you in your last answer, Is
founded! E'-
Answer. did not deduce and furnish to the Treasu-
~ Department such data Mr.. Underwood, OF that
Department came on to this city in November last to
investigate the accounts Of Mr.. Swartwout. The re-
cords of the customhouse laid before him, and he
proceeded to draw up statement, CLEANED from those
records and from memorandums furnished him by the
assistant cashier Of the custom house, which enabled
him to report TO the Treasury the indebtedness OF Mr.
Swartwout. From time to time, in the progress Of
his work, Mr.. Underwood found it necessary to ask
explanations from me- relation to the records Of the
customhouse to enable him to pursue his abosr under
siandingy.
Examined by Mr.. Curtis.
Question 1911. Were any Of the quarterly returns
false! If yea, which Of them!
Answer The accounts OF bonds paid for the first and
second quarters of 1887 rendered the Treasury De-
partmen were false nasmuch they did not contain
all the bonds that actually paid, BY very large
amount and which is seen in document No. 49, Of the
House Of Representatives
Again, Mr. Fleming was asked by Mr.. Smith:
Question 2. When was the first deficiency in Mr..
Swartwout's accounts detected by you; and TO- whom
and when did you communicate the first information of
your discovery
Answer The first deficiency in Mr.. Swartwout's ac-
counts was detected by me the month of June, 1887
noticed the circumstance to Mr.. Phillips, the assistant
cashier, at the same time,
Question 3. What was the amount OF said deficiency
discovered by you in June, 1887; and to whom, and
when. if any other person than Mr. Phillips, did you
give information thereof
Answer. The amount of deficiency was about $780,
600; and the reply of Mr.. Phillips, on my commun-
eating to him the intelligence, prevented my mentioning
1t TO others.
Question:. VIVA. was Mr.. Phllips's reply, adverted
to in your last answer tt ..".
Answer. The reply was, that the cash hook contained
all the bonds that had been paid at the office the resi-
due were In suspense
Examined by Mr. Foster. g..
Question 46. You mention in your answer to tho
9Th inenogatory, that you have never known or de-
tected, at any me any false return or erroneous state
ment IN any quarterly account made by Mr. Swartwout
to the Treasury Department. Now, will you state
whether there were not false fraudulent omissions by
Mr. Swartwout in his accounts, which we're calculated
TO mIslead and deceive YOURSELF auditor, and the
Treasury Department; and if so, what were those
omissions, and achea, far as you know, did those
OMISSIONS take placel
asceraned) and they consisted in Mr. Swartwout's
keeping out Of his accounts large sums of money paid
10 nun on revenue bonds and they tack place pr,nei-
P@tym The l." aud 2d quarters Of 1897.
"hen The same witness carried back to the al
iesed deacatlons Of Mr. Swartwout prior to 1897 and
so questioned at to lead him, if disposed to describe
'nefn as deialcations, and )raudulent omissions
ne stodionsy and properly, believed avoided eeerv
such assumption. The following in,crrogatories and
answers will fully illustrate this fact
mr. Fleming examined by Mr. Foster.
Question 40. In your answer to the 10Th ;n,er-
fosatory in stating the balances of the four quarters
OF 1854 and the two first quarters OF 1885, the whole
pa'ahce OF each quarter is stated as due the United
n'ateS' Now, is that intended to mean ANYTHING
more than that such balance is the amount for which
w was responsible to the Government, and not as
0",nce which he was then liable 10 pay
answer. The balance due the United States,
Mnlch charged at the end of every quarter, is the
Souh' Tor which the collector is responsible to the
government and includes all duties ,chich had accrued
1shaf