Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-11-26
swindIlnR the Govcrnuaos-V1,,--.-
EFamda md DrfnIcntin-.

EFaHds and DCfnIcasioas.
From the New York World. November l3I
For the past eighteen months most Tzgsstf.
system Of fraud against the government Bas 49,
going on in this city By means Of forged bi7ls
on the subsistence department ia White sfrosf
The matter has been quietly under in7esfisa.j.1.
and is at the present time by a Commission
specially appointed by United States MsrsLBI
Murray, of this city, t. whom the dise1verv nj
these frsuds is due. The facts have, for A i1ug
tsgps been known 70 The rspoI tsTs Of the varieus
until the parties could al be secured FTs65sE-s
tUTe notice Of the affair appeared in The Herald
Of yesterday morning, ard has already worked
much mischief in preventing the srresis Of some
Of the guilty persons
The facts IN the case are that solomon E0bu-
STAN, broker doing business in White street.
and g. b. Tracey, a broker a. the esrrer Of
Broadway and White street, hsve been in tbs
habit of purchasing bills on TIE subsistence 5e-
psrtment in this city for one hslf and some
times one-fOurih their apparent value. Bills Of
SI,S00 were purchased Tor $3.50, ard others in
ike proportion Parties were employed 10 hu1r
mp contractors who had subsissed men. aud
some Of the latter, bsirs ignorant Of what thew
were doing, we're led 10 slFn bills fsr subsistinrr
one thousand men who're they bad really pro
vided only for one huadred As many As Alr
persons are implicated in these frauds, and auife
Kohnstsm and Tracy weFe arrestsd On Tuesday
afternoon and taken TO Fort Lafayette. One Of
The runners eOn'esses to having sold 500 600
worth Of ihrse bills, and another ackno7-leless
still larger sam, very great deal Of which
were fslse and fraudulent Il is suupo-e5 tbs
whole amount will foot up not far from a million
dollars.
The commission is row sitting at ihs United
States army office at - White street where the
--ffuu o.-a lNosfv
expected some curious developments viii bo
made relative 70 the manner in which thsss
frauds have been conducted.
From she New York Commercial Advertiser Nov. ID !
A defslcation Of a very extensive character wsz
brought to light fsw days ago as the custom
house An investigation at once began. which
has resulted thus far in the Suspension Of six
teen clerks in the liquidasing department.. The
details Of the sffair are as yet shrAudsd benaalh
the impenetrable veil Of official secresy, bus
enough has tTsnspifed to indicate the extent OF
the defalcstiOn and point out some Of its par
tieipators,
Some few days ago clerl, in the lieuf5a,iuv
department vas arrested for desirovfng vsius-
bic books Of record in his department. IL il
alleged that this fact led to The Investigation Of
the affairs Of his Office and that il resulted u,
the discovery that wrong entries had beaRdE
in numerous Instances, and that the5 appli-
destroyed probably with view conditions
the crime ssion on ths
The search for svidenca.ble than those
each thread Of testimony ded ccin of Rhode
lowed, it led the iDqairerasifiess 90
tons Of the customs, o. for o. sir own bush
agency Of other cleIkouls, 10 Day especial
sons employed in T. 9t others. Such is
have been susDendes OF human natule '
progresses AS tSUDervisinu of other us0-
not be stated n TO forget She night Of every
varying frome pleases. I. is not question
toned, bat no d mans canduct distuTbs
euraey to wars or interfeTes with his neigh
statements. The -ivilege Of acting accord
made public IN te'As the sct OF the motive
-5 measured or eireum-
The Fire on the cent busy bodies, who
their own affairs 10
Prom the Rochester Union
Tuesday night a bagg. gossips," maI5
passenger train on theanly engaged iu
road which left Suspepsioheir employment
at ii o'eleck, ?. 81, was baihey receive IN
its eontents-roails. baggage ansEs. Were
near London, c. ". The hre wsyitbiu his
cred among the mail matter, and aHR, Jess
subdue the hames proved huitless. The tbrou,b-
New York mail, which should Rave srrfvs5 n,
this city st O'Clock, A " Tuesday. and in
mediately sent west, was IN the burned ca Il
having been delayed here until s1B p n
owing to the tratn from the sass not arriving
in time 70 connect with the zsrniaz train vest
The through and way sails which were trans.
ferred IRON the u traih hren ths ssst the same
evening "a the 9 Is kaia wasf, were Ia ne
burned ear and EEe dsFEeyed A uurber of
sOuthernefs, wAo WSTs travelling rom Toropso
10 Windsor, has al fhsii baeeass. which con.
tanned money and valuable Sfsets burned
The loss to thea is ssrsre. Nearly 100000
in the express car and the mails srsrs lost. One
hundred and Afty pieces Of baggage we're
burned. Al IN sll, it Is oae Of the nost disas-.
trous hres We hsgs 5seR called upon 70 record
for some time. The loss to she railroad COM
psny must be severe