The New York herald., 1862-12-27
ASTOUNDING ARMY FRAUDS.
The Official Investigations in
This City.
High Government Onlcers
Implicated.
HOW THE FRAUDS ARE COMMITTED.
Extraordinary Operations Of New
York Brokers.
The Colonel of City Regiment Figuring a.
Wholesalc Robbef.
Forty Forgeries on the Government
In Two N6onths.
Seven Hundred Thousand Dollars Robbed
in One Single Department,
As, Ae., :. ~.
HOW THE FRAUDS ARE COMMITTED.
Seven Hundred Thousand Dollars Robbed
in One Single Department.

In Vne single department,
As., Re-, =. ~.
has been progressing this city for the MONTHS
with the object Of investigating certain serious charges
Of frauds on the United States government in the
department Of raons and lodgings for volunteers
Thus far the inquiries have had most sauary result in
laying bare vile and gigantic system Of robbery and
pecuation Of most important evidence has been
taken which is hoped will bring the principal offenders
20 well merited punishment for preyng upon the vitas
OF the country in the most shameless and dsgraceuman
ner in this her day Of greatest need and peril
The offenders in this Of two cassescvil and
military The former are, of course, amenabe TO military
law, and WILL the proper time arrives bo tried
by courts martial, and be punished by Imprisonment.
with the ball and chain to their legs any other way
that may be deemed proper All civilians viii be tried
BY the civil trhunas and be dealt with the law Directs
and their abominabe frauds SO justly merit
Colonel H. s. Olcott s the commissioner appointed by
the War Department to make the necessary nvestiga
tons This gentleman has been employed since the LIST
of November last in the prosecution OF his important du
ties. He has employed competent short hand writer to
act secretary and two interpreters 10 aid in the deve
opmen OF the voluminous evidence most OF the par
ties concerned witnesses, &c are Germ ans, who do
not speak the English language The Investigations have
been conducted privately for the best Of reasons and
has been seen. with great success.
When the present rebellion broke out Congress
not in session. and therefore appropriation pro
vided for defraying the expenses Of the enrolment
and sussnance Of volunteer regiments. These
necessary expenses paid either by the friends Of
the officers, by voluntary subscriptions raised among
eitizens BY tho Union Defence Committee. But
time in the month OF August Congress being then in
sion, an appropriation Of twenty millions made for
recruiting, organizing and drilling volunteers. Under
the provisions Of Of Congress the Adutan Generals
Department made the custodian Of the funds and
the mastering officers constituted the parties for
dsbursng the money COL D. Sackett, Inspector Gene
raj Of the United States Army, at that time duty
here mastering officer being assisted in the discharge
his duties by several other army officers During the
mense rush OF volunteers which Followed the Presidents
first call for troops these oncers overwhelmed
with business butt according TO the act Of Congress-
the disbursements had to be made from these Offices
Colonel Sacket found necessary 10 have enlarged
and concentrated department, and consequence hired
suitable building in White street, where he removed his
entire business and established general disbEsipg
once. The FIRST appropriation which he received from
the government was IS 900, which exhausted in
three or four days. for as soon az II became known
that tho government WAS prepared to pay the
penseS VI recruiting FcgHnsitssx INC speClai con-
and all persons having claims upon the govern
ment down upon the Office like avalanche The
Conone got money for three four weeks but
in the interim the place continually being invaded
by creditors, and the bills for alleged expenses
mulating BY scores in his Office Everybody camor
Gus for the immediate payment Of their bills. Finally
Colonel sacke got another check for slo000 This he
paid out and late In the month Of November got
another order for q similar amount
The bills FOR tho subsistence and lodging Of recruits
comprise . specific statement or the number Of
lodgings furnished and the quantity Of rations
supplied in separate account, forming
general exhibit q the whole amount Of rAtions and
lodgings. This has 70 be, rather should be- certified
BY the officer who recruits the The bill should be
signed the special contractor and then endorsed the
colonel commanding the regiment But the hurry and
confusion which prevailed at the time or opening the
once the name Of the colonel commanding was some
times emitted.
Colonel Sackstt, assuming the duties Of his once
addressed the Comptroller Of the War Department asking
how far the certificates Of volunteer officers should
be taken and whether he should take aidavits from
them not, because was notorious that there
many greedy men who had managed 70 creep into
the army under various specious pretsnces Up 70 this
time general idea had very properly prevailed that
army ofRcer Straightforward, just and honorable
man. But the volunteers were TO show how the rule
worked with them.
Colonel sackct got rcspsnss 10 his communication.
and therefore compelled TO act by the promptngs OF
his Judgment, and TO do well circumstances
would asw him. Now there two kinds Of contractors
The regular contractor who passes In his bids p
reply tho advertisements published By government In
these bids he offers 10 supply rations and lodgings
70 soldiers for any sum per head that tho GO
vernment may agree TO. These contractors are com.
PEELED by law 70 give bonds TO the government for
the proper performance Of their contracts The special
contractor s the other class. he generally the keeper
of lager bic saloon small boarding house in tho city
Perhaps he has boarded eight men after
their enlistment until they carried into camp, when
they begin be subssted by the Quartermastcrs De-
parsmcnt As far the general contractor is concerned
there but little chance OF his committing frauds except
IL be by and with the coanvance OF the government
officers. But this is not the with the special con-
tractors az may be seen BY the facts developed during
this investigation.
When the tremendous pressure already alluded TO
brought to bear the dsbursing once, and there was
money ready at hand 10 pay, these small contractors
would be always crowding the Office seeking for the
liquidation OF their accounts They therefore, were sub
ectcd 10 great loss Of tmo and money, and eventually
had negotiate with The brokers Of tho city, who had
established Offices al convenient places These brokers
began 10 small way, RDavhg oiis against tne govern
ment at ten fifteen and seventyBve per cent, they
could agree with the contractors holdSg 'hcm Being
men Of capital, thcscibrokers cogip aSre g wait
until the dissursug oficcr received cNck from Wesh
ington, when they would present all the bills they
had shaved and receive the cash for them. The
dsbursing officer, In order TO protect the govern.
iuent as far as possible from fraud and impo
si,ion not oniy required an affidavit from the
special contractor setting forth the Of his bin,
but also employed detectives to find that the charged
for we're actually boarded and srbssted II all these
proceedings had been conducted in straightforward