, 1862-12-30
STUPEND0US FRAUDS on THE
GOVERNMENT.

[From the New York Times, December 21th.1
It is generally known to the public that
Commissioners, appointed by the general
government, have been at work for several
weeks past, in this city and elsewhere, inves-
tigating alleged frauds upo4 the government
in connection with the raising and subslsting
Of volunteers, organizing Of regiments, and
other operations, from the COMMENCEMENT Of
the rebellion to the present time. The Com
missioner appointed for this city was Mr.. H.
S. Olcott, who has now arrived at that point
in his Investigations when the general facts
connected with the frauds, and the manner in
which they were perpctratcd, may be made
public without Interfering with the aims Of
the government and the ends Of justice.
Mt. Olcott entered upon his Investigations
on the 1st Of November last and has already
discovered frauds to- the extent Of S700, ,00o
pcrpetrated in this city, and the prospect is
| that they will reach double that amount be-
fore the investigation is finished. In order to
give clear idea Of the mode OF rather the va
Tious modes, in which the Government has
been swindled, IS it is Necessary to 60 back to
the beginning of the war When the rebellion
| broke out Congress was not in session, and
there was no appropriation by the general
government to defray the expenses Of re-
| crniting regiments of volunteers; con
sequently the expense connected with
| by the Colonel aud regimental officer, By
| subscriptions Of private individuals, or by
donations from the Union Defense. Commit
tee. In the following August, however, dur
ing the extra session Of Congress, SEQ, ,0o0, 600
| we1c appropriated to recruit and organize vol
United States army vas made the custodian
of the fund. MASTERING officers were estab-
lished in the different cities, and It each Office
an army officer was appointed to disburse the
moneys that were drawn :, from the general
this city was Col. Sackett, Of the regular
army, lie hired building in White street,
opened his disbursing Office, appointed his
clerks, and was Immediately overwhelmed
with business: The first sum sun r received from
| the Adiutant General Was $4,000, which was
all tisburEcd in three or four days,
II Assoon as it became known that 3 govern
ment disbursing Office had been opened here,
thehoiders Of claims against Uncle Sam swarm
cd around its doors like the 1ocusts Of Egypt
) and continued to increase in numbers until
4 Col Sackett got a second instalmeut from
the Adjutant General, which was not unti
| th1ee OF four weeks after the first instalment
The second draft for $100, 600, which was sool
:, disbursed, and vas the last received until th
: following November, when another install
, .ment Of about the same amount WIS sent O.
! ! from Washington. The disbursements mad
: at this time were principally for the subsis'
enceand lodging Of recruits alter their en-
, listment, and pending the time Of their goin
= into camp; and it may be stated here that th
/ TeTul1L10Q8 OF IuE OuQlEu GlhltS H&l!4t LII
= slXays been that bills for subsistence an
> lodging should be certified to by the recrni
ing officer, signed By the contractor, and e1
dofsed us approved BY the Colonel command
n ing the regiment Owing, however, to th
+ rush Of volunteers at that time, and the inc.
perienca. OF. officers, these regulations wei
10. not always adhered to, and Col Saekett foun
d it necessary to write to the Secretary Of Il
If Treasury for instructions as to how far tt
d certificates Of, recruiting officers should |
received as: s:gnasantees Of; the correctness
g bills. No answer was received to this lette
le and Col. Sackett was left to his OWN judgmel
It to act as he should think best.
The contractors were Of two kinds: fir:
i. general contractors, who took bids for Il
Is Subsistence and lodging Of recruits and ri
gave sureties; and, second, special contrat
ors, who wer generally keepers Of lag
X beer saloons anti cheap boarding houses, .,
who boarded and lodged recruits to the nu
re- ber Of half dozen; more OF less, previous
Mt their going into camp. These snall contra
Of ofs were anxious for the payment Of tn
n. bills, and, being unable to get the money frt
~ the government, they swere driven: intu:,;t
IN bands Of brohars to get them discount
as This class Of men-whom He may call al
brokers, md who figure more e1tensi7