, 1860-06-16

[From Washington Correspondence Cincinnati Gez.te.1
In reply to u resolution Of the House, Post
master General Holt has addressed letter to
the Speaker, detaining The facts and circum
stances pertaining to the defalcation Of Isaac Y.
Fowler.
From statements submitted, it would seem
that the Department, using the phrase in an
official sense. Was not aware Of tho defalcatinu
until the 1otb Of 1ay, 1860. The accounts Of the
New York Post Office having been audited and
balanced to the 3lst Of December, 1859. Tue
first quarter OF the present year had not been
adjusted for want Of the account current. This
settlement was postponed in consequence Of
the absence Of Mr. aler, or from some other
unexplained cause, and on the Aforesaid 10th Of
May, the First Assistant Postmaster General
p1zced in ME. Holt's hands, TWO confidential
letters from Fowler, in which the de;alcation
was confessed in general terms and An earnest
appeal made to for bear proceedings against him
until he could make up the deficit through his
friends and the sale OF personal property. On
the prcvi-us day the account current hsd been
received by the Auditor. Means were fmpned,
ately taken for Fowler's arrest, and the inability
Of Marshal Kynders to execute tho warrant Is
explained bY the 40 i've sympathy manifested
for Fowler by his numerous friends in New
York. The Postmaster General severely coz
demns this sympathy, and in view Of an indict-
apprehension Of the offender, threatens them
with The pains and penalties Of the atatute
The Auditors Report, APPENDED to ur. Holts
letter, shows that on December 3lst, 1855. Fow-
Ter owed balance Of IS 9s5 70. At this point
tho embezziement had its origin The follow:
ing quarter increased tie deheit to *17,ss7 ";
and,lt continued regularly increasing. every
quarter, Saving the last Of 1856 and the frat
two Of 1857, unit! the final exposure. On thu
30th Of jane, 1857, it had aehed <2S, ,020 So.
This WAS adjusted BY = special deposit Of $2o.-
900, on the sth Of August, 1858, which. with the
credits for clerks hire, DC balanced the account
and left &, ,939 l9 to Mr Fowter's credit This
settlement however, was found to be too deceo-
tire, inAsmuch as in consequence Of tbs specisl
deposit having been made, the weekly ons Of
the current revenues, due On the day the depos-
twas made, sth Of August, was omitted; 80
that in fact deficit equal to nearly weeks
receipts s, remained t5h The fia &f3sa,ion now
ter, $4o,uo7 IS .era added to it At the close
Of september 1sas, it was SIS, ,s9e IS. In Norem.
Der Of that rear, the books were balanced, but
the adjustment, like the previous une. proved
delvsive. The adjustment vas made By eppIy-
ing the deposits OF the revenues already recelv
ed for the quarter ending December 3lst, 1858,
to extinguish the pFe-exlsting liability. Not
dollar WAS paid, hut mer' II transfer Of the in-
debteduess from one quarter to another. When
Nr Holt came into the of1icein Qarch, 1859 the
deficit did not falf short Of $4,000 Atthe closs
Of that month it rose to $93,8s3 9s. 1t contin-
ueu 10 tuCEGRs6 uDkIk 4e3 0tE4u4 80
great Ut the close Of the FIRST quarter Of this year
that it could not be co1cealed for more than =
few months iouger, Had the settlement how.
aYer. not been insisted On cary in May the
re7enues might hare been ufed to meet The lia-
hill.ies, and the denouement Of the drama post
poned for another three months Ths defa Ca
s,ou. up to March 81, 1853, amounted to 41b5,
54.s1 Fowler'r cashIer alleges ths whole d.
dris to be shout $l70, 500.
In reply to th= natural lnquirJ-hov tbs sun-
bezzlenent conld hare existed 50 1ong7-the
Postmaster General says that ths existence aud
progress Of the frauds must be aoughs for in the
taiiure Of the Sixth Auditor to report tho con-
stantiY recurring de1inquencies Of Mr.. Fowler
to the Postmaster General To his, tho Sixth
Auditors hands. ate iutrnstsd the adninissra-
tion Of the highest interests Of the P. o. Depart
meut, aud yethe belongs 70 smother depart
ment of the Government, and Is actually and ab.
solutely undtr the control Of the Secretary OF
the Treasury. The xct Of July I'd. 1888, pTovi-
dine for the establishment Of such m officer,
says: .'Hs shall promptly report 70 ths Post
master General all delinqulncles Of Postu1as-
ters in paying over the proceeds Of their odioes;
be shall close tho aecounts Of the Department
quarterly, and transmit to the S<orssaEy Of tho
Treasury quarterly statements Of receipts and
expenditures" The blsmsa atherefors, falls Oh
the Si1th Auditor, who viii, Of course, putison
aorne one else