The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1863-01-09
Developments of Fraud
In New York. -.

AL dScuC vi Iuc w di OCP3tl Culcut, MI
O. S. OLcoTr, has been secretly but bust
ly engaged in New York city, since the
first of November, in the investigation OF
alleged frauds upon the Government in the
enlistment, organization and subsistence
of Volunteers, and the result of his inves-
LEGATIONS occupies a large space in the New
York papers.
1t is truly sickening development that
is made. 1t appears that not less than
one Thousand persons are implicated in an
organized system of fraud that has been
for more than one year in operation in
New York. The total amount out of
which the Government is already known
to have been swindled is not less than
100000. 1t will in the end, no doubt,
be found to exceed even this sum. The
particular modes Of swindling pursured
are set forth with sufficient clearness and
minuteness in the columns devoted to the
subject. Those frauds were principally
committed by brokers in claims, and by
officers Of regiments in process OF enlist
ment. Speaking of the brokers, the ac-
count says:
They employed runners 10 lager-beer
shops and boardinghouses, and any and
every place where it could be ascertaincd
that a recruit had ever eaten q meal OF.
Sl.t,f ,>ir,t and :,,,1-,n, 10 &
these places, under various arts and pre-
fences, Gotten by actual Bribery to certify
and swear to bills against the Government
Not satisfied with this, they employed
clerks 20 Manufacture bills ont Of whole
cloth, and forge signatures TO them. Mr..
Oicott has in his possession over forty
forged signatures to bills which have
been verified as t0rgeyies by Colonies and
contractors whose names were USED. In
stances have been discovered where bro
kers have purchased claims OF poor Ger
mans for $25, and on the following day
have called at his place ana got him to
sign what purported to be a receipt, but
which was in reality Il fictitious bill for
$4,000. Their frauds have been perpe-
trated mainly through the agency OF igno-
| rant German people, who could not read
our language, and WHO were made to swear
to a bill of two thousand dollars when
they supposed it was only $50, or to CERT
fy to the correctness of large claim when
they supposed they were signing receipt
for a small one Some of this class of
people, however, who had no claim against
the Government, large or small, have been
induced to certify and swear to bills through
the agency of a bride.
Recruiting officers are also discovered
to have played the same game. Instances
have come to light where recruiting Off
GERS have induced lager-bicr men to sign a
bill for 81 800 where the claim was only
S25, and the bills have been sworn to be-
fore a notary, who either through negli-
gence, or because he was privy to the
fraud, asked no questions, and in some
cases did not even administer the oath
Cases have also turned up where the I'm
ion Defence Committee had paid the regu-
lar 40 cents per ration for recruits, and
the contractor has been compelled to pay
five cents OF each ration to the Colonel of
the regiment, and 10 per cent. Of his gross
receipts to the Quartermaster.
MI. Olc0lb commenced MS luO0rS by III
vestigating the frauds OF the army brokers,
and after disposing Of these he was pre-
sentel by the Secretary OF War with bill
which had been paid in Washington, and
was sworn to by the Colonel OF New
York regiment. The bill was accOmpani-
ell by the names Of q large number OF sub
vouchers for the different items, all of
which except two, the Commissioner has
discovered to be torgeries. "A further in
vestigation has brought to light the fact
that this same Colonel ha> swindied the
Union Defence Committee, swindled pri-
vate citizens, swindled the General Gov
eminent, and swind!ed every one Of his
subordinate officers and privates, and that
the sum total OF his swindling cannot fall
short OF 500, 000. The Wholesale frauds
developed in this case have induced the
Government to direct Mr. Olc0tt to inves-
tigate the transactions Of each and every
regiment raised in this city, where the cir
cumstaces connected with It's organization
are open to suspicion.