Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-06-19

City Of New York.
The following letter from the Postmaster General
in reference to the defalcation of the late Postmas-
ter at New York, has been printed by order Of the
House Of Representatives
Posr OgFTCE DEPARTMENT, JUNE s. 1856.
SIR On the 18th May the House Of Represents
tives adopted the following resolution;
Rs0Usd That the Postmaster General be and be Is hereby
poasba all tie and circumstances pertaining e DEAL
cation Of lsase Fowler PestnI or late posnar g ne
time said dealcaon commenced progress from tr1e time
when rst known The General Post Once Dsparten
the aggregate amount thereof sud Z any, what legal Frocenga
pr0lecuon instituted against said Fowler By the
Government account Of said and @ what amount
in reply to which have the honor to report that
the defalcation Of Isaac v Fowler late postmaster
at New York, was communicated to me, Tor the first
time, on the 10th Of Nay 1860, and have 10 reason
10 believe that it was known to this Department at
an earlier day. On reaching Washington from the
South, in the last week Of April, upon inquiry, 1
learned through the Auditors Office that the &C
counts Of the postmaster ut New York had been
audited ard balanced to the 3lst Of December, 1883;
but that those for the quarter ending 3lst March.
1860 had not been adjusted for want Of the account
current, which had not been received. I requested
the Auditor to write once and to say that longer
delay in returning this account could not be sub
mitted to- This was done, but in consequence Of
the absence of Mr. Fowler, Or from some other I'M
explained cause, the account not placed in the
hands of the Auditor until the 9th of May. On the
morning Of the 10th May the First Assistant Post
masterGeneral banded me two confidential letters adj
dressed to him by Mr.. Fowler, in which his defalcs-
ton was confessed IN general TERMS and earnest
appel was made to the Department to forbear pro-
ceedings against him until he could have OppOr-
t1nity to make good the deficit through the advances
of friends and the sale Of property, which he re-
presented himself as holding. l was then informed
that the account current had been received by the
Arfdr m az at a ERIK
lively engaged in scrutinizng it. and would be able to
announce the result in few hours The chief clerk Of
the Auditor at the time mentioned to that the
account, as rendered, showed defalcation OF up
wards of $4,000.
Desming this, with the confession contained in the
letters, quite sufficient to justify immediate action,
the case was without delay presented to the Presl-
dent, who the same day signed an order removing
the postmaster and directing that the Office should
be placed temporarily in charge Of special agent
of the Department The formal appointment Of the
special agent for this purpose (Alr Ofutt made
that evening, and he proceeded to New York on the
llth Nay, and On the following morning took pos
session Of the post Office before it opened to the
public, and secured all the funds on hand amounting
to about $4,000. On the 18th May distress war
rant issued by the Solicitor Of the Treasury for
the full amount Of the defacatiOn, ascertained,
against the person Of Fowler and against his pro
pery and that of his surees TO the extent of their
liability. An accident, mentioned in his letter, pre-
He, however, arrived at New York about 2. NJ,
of Saturday and Immediately delivered the distress
to the United States marshal, and gave him
ali the necessary instructions to its execution. 1t
is well known that Fowler was then in the city Of
New York and did not leave it until the following
morning, or probably later. The marshal, however,
alleged that after dIligent search he could not be
found and in consequence no arrest was made. He
is still fugitive and the conviction expressed by
those most likely to be informed the subject that
he has left the United States. An explanation of the
marshal's inability to execute the warrant may pos
sibly be found in the active sympathy manifested
for this criminal by his numerous friends in New
York. This feeling, instead of ahording aid and
support to the executive officer in enforcing the
claims Of public justice, would naturally prompt to
efforts for the concealment of the culprIt.
It viii be seen from my letter to the United States
Attorney Judge Roosevelt) that prompt and vigO-
rouS criminal prosecution was urged but that Off
GER the exercise of his discretion determined that
this proceeding should await the arrest, which he
supposed could be as well made under the civil pro-
cess then in the marshas hands. was anxious that
this ENLIGHTENMENT, justly pronounced by law to be
a felony, ami which had been committed in violation
of an official OATH and was in all characteristics
and history unredeemed by single palaton, should
be pursued and punished with unsparing rigOr. An
indictment will doubt be found by the grand Jury
and should the offender be hereafter apprehended
the penalties of the statute may yet be inflicted.
The defalcation up to March 81, 1862 amounted
to Sl55, 554.3l. The late cashier of Fowler, how
ever alleges the actual deficit to be about $4,000
This may be true inasmuch as the accounts for the
current quarter have not been audited, and the
amount distracted from its revenues has not, in
consequence, been yet ascertained. Judging from
the depOsites made it does not exceed the stated
by the cashier. The bond of the sIreties, who are
entirely responsible is in the penalty Of but $751;
O0O Unless the balance can be made out of the es-
tate of the defaulting postmaster it will prove total
loss to the Government. 1t will be seen from the
marshal's return that he has made levy, but, as
the property is understood to be heavily cucumber
ed, it is altogether doubtful whether the levy will
prove at all productive.
On the evening of the 18th May the First Assist
ant Postmaster General, under instructions, pro-
ceeded to New York and remained for ten days &C
lively engaged in correcting the many irregularities
and abuses which had crept into the administration
of that office His labOrs have resulted in intrOduc
ing sautary reforms and in placing the service on
footing which promises fidelity and faithful fnan-
cial accountability for the future. The confidence,
however, which is felt that this will be the case
does not rest so much on the precautions which
have been taken and the checks and safeguards
which nave been established as upon the elevated
and stainless reputation Of the present incumbent.
Experience has sufficiently demonstrated that no
amount of legislation by Congress- and no exercise
of vigilance on the part Of tile Executive can pos
sibly secure an honest administration of any office
which has not an honest man at its head.
It will be observed from the Auditors report that
the balance due from Mr.. Fowler on December 81,
1855. was sS,gS570. The ENLIGHTENMENT may be
regarded having had its origin at this date This
deficit was increased by Sl7, 637.9S the following
quarter and with the exception Of three quarters
the last of 1856 and the first two of IS57-the in
crease was continued until the final exposure. On
the Both of June, 1857, it had reached the sum of
S23O20S8 This was adjusted by a special de-
post of $4,000 onthe Sth of August, 1857, which,
with the credits for clerk hire, &c, which were
oil hal 10 IL 4
Mr.. FOWler's credit The settlement, however, was
deceptive, inasmuch as In consequence Of this spe-
cial deposit having been made the weekly one of
the current revenues due August s, 1857 was omit
ted so that in fact deficit equal to nearly weeks
receipts still remained. The defalcatiOn now made
rapid progress, S4007495 having been added to the
deficiency the following quarter. On the Both of
Semptember, 1858, the deficit was S75S99.96. In
November of that year the books were again bal
anced, but this adjustment, like that in August
1857, was altogether delusive. 1t was accomplish
ed by applying the deposits Of the revenues already
received of the quarter ending December 81, 1855,
to extinguish the preexisting liability. There was
not dollar paid, but simply transfer of the in
debtedness from one quarter to another. When L
took charge of the Department in March, 1882 the
deficit did not probably fall short of $4,000. On
the 3Ist of that month it amounted to S93,933.9S.
1t continued to augment until at the close Of the
first quarter of the present year, 1t had reached
magnitude which would probably have rendered its
longer Had the settlement however not have been
insisted on early in May but have beenposted until
the end of the quarter then by perverting its entire
revenues to meet the liabilities due the 3lst of March,
1866 the books might under this DEVICE have been
again balanced and the denOuement of this drama |
Of financial guilt been delayed for three months |
more. But the imperative demand for a settlement |
Ct the accounts before the revenues Of the quarter
to be despolled had half accrued bafed the strata
gem which had been so long successful, and expos
lre became inevitable.
The inquiry naturally arises how this embezzle- |
nent could have existed long, and have been con-
SANITY increasing IN magnitude, without the knowl |
edge Of the Post Office Department? 1t may be an
wered, IN the first place, that there nothing
he anecedents of the postmaster to excite any spe
al vigilance in the supervision Of his official life
BE bore an unsullied reputation and his appoint
nent had been made by the President on recOmmen-
atOns so numerous ana so earnest as to leave no
Oubt but that he was entitled to and enjoyed the
omplete confidence of the people Of New York.
The boldest satirist of human virtue could have |
Carcely believed him capable of passing, at a single
tep from the position of influence and honor which
e occupied to the degradation Of fugitive felOn.
he true explanation, however, of the ignorance of
he Department of the existence and progress of
bis fraud must be sought for in the failure Of the
iyth Auditor ~ rpDort the constantly recurring !