Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1863-01-07
FRAUDS ON THE GOVERNMENT.
Upwards of s7oo,ooo swindled Out of Cover

elsewhere.
investigating alleged frauds upon the Gov
ernment in connection with the raising and
sabsisting of volunteers, organizing of regi-
ments, and other operations, from the COM
mencement of the rebellion to the present
time.
Mr. Olcott, the comm issioner appointed for
New York city, entered upon his investiga-
tions on the 1st of November last, and has al
ready discovered frauds to the extent of $780,
600 perpetrated in that 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, or rather the
various modes, in which the Government has
been swindled, il is necessary to go back to
the beginning of the war. When the rebel
lion broke out Congress was not in session.
and there was no appropriation by the Gener-
al Government to defray the expenses of re-
cruiting regiments of volunteers consequent
ly the expense connected with raising regi-
ments had to be paid either by the colonel and
regimentai officers. by subscriptions of pri-
vate individuals, or by donations from the
Union Defence Committee. In the following
August, however, during the extra session OF
Congress, $50 900. 900 were appropriated to
recruit and organize volunteers, and the Ad-
Jutant- General of the United States Army was
made the custodian of the fund Mastering
offices We're established in the different cities,
and at each office an army officer was appoint
ed to disburse the moneys that were drawn
from the general fund. The disbursing officer
appointed for New York city was Col. Sack
EFT, of the regular army. The first sum re-
ceived from the Adjutant- General was S5O.-
900, which was all disburscd in three or four
days.
The second draft was for 100000, which
was soon disbursed, and was the last received
until the following November, when another
instalment of about The same amount was sent
on from Washington. The disbursements
made at this time were principally for the sub
sistence and lodging of recruits after their en-
listment, and pending the time of their going
into camp; and it may be stated here that the |
regulations of the United States army had al
ways been that bills for subsistence and lodg- |
ing should be certified to by the recruiting |
officer, signed by the contractor, and endors- |
ed as approved by the colonel commanding |
the regiment. s
The contractors were Of two kinds; first,
general contractors, who took bids for the |
subsistence and lodging of recruits, and who |
gave sureties; and, second, special contrac-
tors, who were generally Keepers of lager beer
saloons and cheap boarding houses, and who
boarded and lodged recruits to the number of
half &C dozen, more or less, previous to their
going into camp. These small contractors
were anxious for the payment of their bills,
and, being unable to get the money from the
Government, they were driven into the hands
OF brokers to get them discounted. This class
OF men-whom We may call army brokers, and
who figure more extensively than any other
class as swindlers of the Government-com-
menced business in that city in December,
1861. They first did a legitimate business,
but they soon found way of increasing the
size of their bills by alterations in the figures,
and followed up this fraud by making icti
tious bills which were vouched for by down
right forgery.
On the 9Th of December, 1861, Col Sackett
his post as disbursing officer for that
city, and was succeeded by Lieut.. Col. Mich
OILS, also of the regular army. Before Col.
Sackett left he was in fhe habit of requiring
affidavits from the special contractors of the
of their bills, and also employed
rs an additional guard against fraud, detec-
ives to ascertain whether the afidavits were
rue. Lieutenant Colonel Nichols held the
post of discussing officer until June, 1862,
when he was relieved by Captain Larned, who
n turn gave way On the 26th of August last to
Lieut.. Colonel Reed, who now holds the posi-
ion. During the latter part of Colonel Mich
,ls' term. and all through the term of Cap
ain Larned, the brokers were in fnll blast,
md conducted their busiress with reckless s
less of viilainy that is perfectly astounding g
they employed runners to visit lager beer
hops and boarding houses, and any and every
lace where it could be ascertained that a re-
ruit had ever eaten a meal or slept over
light, and induce the keepers of these places,
nder various arts and pretences, (often by
ctual bribery. } to certify and swear to bills
gainst the Government. Not satisfied with
his, they employed clerks to manufacture
ills out of whole cloth, and forge signatures t
0 them. Mr.. Olcott has in his posses. I
ion over forty forged signatures to bills which t
ave been verified as forgeries by the colonels Q
nd contractors whose names were used. In. il
tances have been discovered where brokers
ave purchased claims of poor Germans for 8
20, and on the following day have called at n
is place and got him to sign what purported v
. be a receipt, but which was in reality fic- 8
tious bill for $1,000, Their frauds have been d