Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1863-01-03
ASTOUNDING DEVELOPMENTS.
srupEkDous FRAUDS ON THE GOVERNMENT

From the hew York 1tmss Of Saturday.
1t is generally knowa to the public that commissioners
appointed by the General Government have been at wor
for several weeks past in this city and elsewhere invest
eating alleged frauds upon the Government IN cnnexoi
with the raising and subsstng of volunteers organizing
regiments, and other operations from the commencement
Of the rebellion to the present time
The commissioner appointed for this city was Mr. H. D
Ocot who entered upon bis Investigations on the LIST
November last and has already discovered frauds 10 Inc
extent OF 800 900 perpeirated 10 this city and the pros
Investigation is finished
When the rebellion broke out Congress was not IN ses
so and there was no appropriation by the General Gov
deray the expenses of recruiting regiments
volunterrs consequently, the expense connected with
raising regiments had be paid either by the Colonel and
regment officers by subscriptions OF private individuals
| or by donations from the Unan Defence COMMITTEE II
the following August however during me extra session
Congress- 600 were appropriated To rectit aud
volunteers and the Adutant General OF the United
States Army made the custodian OF the fund Mus
tering Off stibshel in the different cities aod
at each Office army officer was appointed 10 disburse
the moneys that were drawn from the general fund
The dsbursiDg officer appointed for this city was Col
Sacketf, OF the regular army He hired building IN
White street opened has dsbursng Office appointed his
clerks, aud was Immediately overwhelmed with business.
The first sum received from the Adjutant General was
O000 which all disbused In three or four days
AS coon as IL became
Office had been opened here the holders OF claims against
Unce Sam swamed around its doors like the ocusts Of
Egypt, and continued to increase in numbers uul Col
Sackett got second installmen from thu Adutant Gene
rail- which until three four weeks after the first
nstalment. The second draft for 100000, which
disbursed and the last received until the fol-
lowing November when another nstalment OF about the
same amount was cent on from Washington.
The disbursements made at this time were principal y
for the subsistence End lodging of recruits after their
isment and pending the time of their going into camp
he hat If
ted States Army had always been that bs for subssteacr
aud lodging should be certified to by the recruiting officer
signed by the contractor and endorsed approved by the
Colonel commanding the regiment. Owing however, to
the rush OF volunteers at that time and the nexpeence
OF oicer these regulations not always adhered to-
and Col Sacke found it necessary to write to the Score
certificates of recruiting officers should be received
guarantees Of the correctness of bills No answer was
received to this letter and Col Sackeit left to his
own Judgment to act as he should think best
The contractors of two kinds: fret, general con-
tractors who took bids for the subsistence and lodging of
recruits aud who gave sureies and second special con-
tractors who generally keepers of ageIbeer saloons
and cheap boarding houses and who boarded aud lodged
recruits to the number Of haadozen, or ess
vous TO their going into camp These small contractors
were anxious Tor the pay OF their bl. 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 other class swnders
OF the Government commenced business in this city IN
December, 1861. They FIRST did legitimate, though
very shaving business but they found way of n-
creasng the szs of their bills by alterations in The figures
and followed up this fraud by making fictitious bills which
were vouched for by downright forgery
On the 9Th of December 1861 Col Sackett vacated his
post as dsbursng officer for this city and was succeeded
by Lieut. Col Nichols also Of the regular army Before
Col Sackett left he the habit OF requiring adavits
from the special contractors of the correctness of their
bills, aad also employed additional guard against
fraud detectives 10 ascertain whether the adavts were
Lieut. Col Nichols held the post Disturbing officer
until June, 1862 when he relieved by Capt Larned
Who in gave way the 26th Of August last to Lieut.
Col. Reed, who holds the position
During the latter part of Col. Nchols's term and all
through the term Of Capt Larned the brokers were in full
blast, and conducted their business with reckessness Of
yilany that j. perfectly astounding They employed run
visit lager beer shops and boarding houses and
and every place where it could be ascerteined that
cru had eaten meal slept night and Induce
the keepers of these places under various srs and
fences Gotten by actual brbery to certify and to
bills against the Government Not satisfied with this they
employed clerks to manufacture bills out Of whole CLOTH
aud forge signatures to them.
Mr. Oco has in his possession over forty forged sigma
lures bills which have been verified orgeres BY the
Colonies and contractors whose names were used. In
stances have been discovered whore brokers have pu
chased Claims OF poor Germans for twenty dollars and
on the following day hays called at his place and got him
to sign what purported to DC receipt but which was in
reality q fictitious bill for two thousand dollars. Their
frauds have been perpetrated mainly through the agency
of ignorant German people, who could not read our Ian
Qusge and who were made to bill OF thousand
dollars when they supposed only twenty dollars or
to certify to the correctness of large claim when they
supposed they were signing receipt for small one
Some Of this class of people, however, who had TO claim
against the Government, large or small have been oducN
to certify and to bills through the agency ofa bride
Recruiting officers also discovered to have played
the same game Instances have come to light where
erung officers have induced lager bier men to sign bill
for fifteen hundred collars where the claim only
twentyfvej and the bills have been sworn to before
tary who either through negligence or because no was
prvy the fraud asked questions and In some cases
did 1T even administer the oath Cases have also turned
NJ where the Union DEFENCE Committee had paid the
guar forty cents per ration for RECRUITS and the cpntaeor
has been compelled 10 pay FIVE cents Of each ration tohe
colonel Of The regiment aJd ten per cent c his gross re-
ceipis to the quar- termaster
Mr. Ocott commenced his labors by investigating the
frauds Of the army brokers' and after dposng OF these he
was pr scented by the Secretary of War with bill which
hGd been paid in Washington, and to by the
MED by the of large number of sub vouchers Tor
the different items all OF which except two the Commits
Onsr has discovered TO be foreeries further nvest
CATION brought TO hight the fact that this Colonel
has swinded the Union Defence Committee, swnded pr
czenr, swhded the General government, aud SWIM
died every of his subordinate officers and privates
and that the total Of b., swndng cannot fall short Of
100000 The Wholesale frauds developed in this
have induced the Government to direct Mr. Olcott to in
yest gate tie transactions Of eech and every regiment
raised in this city where the connected with
its organization are open 10 suspicion.
The Commissioner Ia mo- now prepared to give the names
Of the actors in these swindug operations many m them
have not yet been arrested but the prncpa will be
made known 10 few Days 1t s thought that nearly a
directly or indirectly in the faHds Many OF the uep wp9
have been iumpeted marys to the system of illegal
ALL arbitrary arrests who cent to Fort
Lafayette for these ysrv frauds aud when their names