The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-16
Henry Ogden, cashier OF The customs |:
Examined bv Mr.. Smith.

EtdMtnsd DH AIf. Smith.
Question 10 On page Al, Of House document -,
heretofore named, Is your letter to Fl. ID. Gilpn,
Esq. Solicitor Of The Treasury, IN which you say
thai Mr. Swartwouts use Of The public MONEYS be-
gan not long afier his appointment as COLLECTOR
that +, ! suppose, 10 1929. Now, will you state
the specific items reported in said document as de-
iaicalons or do you refer specially TO his use OF
moneys deposited 10 his own credit, In banks, and
prior 70 Its being credited to the Treasurer Of the
United States IN such banks?
Answer. Mr. Swartwout commenced drawing out
OF the bank, against moneys deposited 10 his private
account about nine months after he came into Office.
ihose drafts, think, were small have no allu-
SION any specific Items reported in said documents
as deialcations. had no knowledge of them.
Question 90 Please state whether, during the
Whole period that Mr.. Swartwout was thus draw
Ing from his dep sites he was not also continually
replacing sums on deposite from his individual re-
sources or specuaiions and II the whole extent OF
sueh deficits was or was moi concealed by carrying
INTO his weekly b1nk deposites cash returns TO the
Treasury Department Of one week, such sums as
were received by him on the Saturday ofthe proceed
ing week, and which were not returned in the cash
account OF such preceding week?
Answer. | have recollection of Mr.. Swartwoul
having replaced moneys drawn out by him on several
occasions The amounts which he had in bank from
deposies for duties, together with the receipts for
bonds due on Saturday and Monday, gave him am
pie funds to meet his drafts over and above the
balance due TO Government.
Question 81. Without the aid of such reserved
Saturday collections, and in the way explained in
your last answer, would or would not the deficit
from the bank funds Of his Office have appeared
most manifest on his weekly returns7 And was
the ultimate effect Of such system Of operating,
any more than 10 cast upon his last and final weekly
return the aggregate Of all previous Withdrawals
from his deposi'es, so far as the same had not been
offset BY his replacing them from bis own or other
funds2
Answer II would have been impossible Tor Mr..
Swartwout 10 have made his weekly transfer with
out The aid Of the collection Of bonds of Saturday
and Monday, and moneys for duties on goods not
ascertained. The ultimate effect Of such a system
was TO cast the whole balance due upon his final
weekly return.
From the preceding testimony, the committee re-
port as established facts:
LIST. That all moneys received by Mr.. Swartwout,
as collector, prior TO 1887 regularly accounted
for by him in his quarterly returns TO the Treasury
Department.
3D. That so much OF all moneys received by Mr..
Swartwout prior to 1887, and accounted for TO the
Treasury Department in his quarterly returns, as
were not paid by him into the Treasury, were re-
tanned by him under the tacit acquiescence of the
accounting officers OF the Treasury; and regu-
larry carried forward debited to himself in the ba
lance OF each subsequent quarterly account rendered
by him to the Treasury Department, TO the close Of
his term of Office
3D. That his omission to carry debit to himself,
of any Of the moneys received BY him from the
Treasury, from other sources prior to lS3 10 the
class Of accounts kept only at the om-house,
called his cash accounts and his carrying debit TO
himself of any such items to any other class OF ac-
counts kept only at the ensto1-house, called suspense
and unsettled accounts, or by any other name, could
not operate as concealment, innocent OF iraudu-
lent, from the Treasury Department, OF the true
cash balance in his hands
l. Because neither his cash account, nor his sus-
pense and unsettled account, nor any other subordi-
nate account kept at the custom-house, was ever
exhibited to, or formed the basis of any quarterly
settlement made by him with, the accounting officers
of the Treasury.
O. Because in his quarterly accounts settled at the
Treasury Department, the aggregate and true ba-
lance Of all his subordinate accounts kept at the
custom house, including both his cash account and
suspense accounts, uniformly prior to 1887, car
ried into his quarterly account, under the item Of
leash and unsettled accounts
4th. That the defalcations Of Mr. Swartwout by
means of fraud and false returns, commenced in
1887 and not sooner, and have existed since that
period; and the defacations thus occurring, added
to the moneys previously retained by him, accord
ing to his returns to the Treasury Department and
by the silent acquiescence of the officers of that De-
partmeni until the close of his term of Office consti-
lutte the aggregate of his defalcatons al the present
period. .."a@