Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-08-17
H tFr0mf he New York Herald.
Astounding mEiiIary Frauds

q.
We publish 10 day a most extraordinary recital
Of facts collected from various reliable sources
by our reporters, showing an organized system of
swindiing the Unitef States Governments which
has no parallel I'M the wars Of anv other country.
Some months sgo. we published a lengthy ex-
pose of similar frauds. which at the time led to
considerable excitement in military and general
circles. The exposures now made are more par
ticular in their bearing, pointing as they do TO 10
d~ividuals well known in the community. aud one
of whom, ut least, has been for some time con-
nected with the military service Of the country.
IL is astonishing that the Government Commits.
sioner of the War Department has not brought
these facts to the notice of the Government and
the press. Ifone 1.-THE of the charges which now
rest on private Information can be proved to be
trne, it would be more than sufficient to call for
the most c%ondigs, swift and exemplary punish
ment on all the parties concerned. Without fur
tlier preface. we viii state the facts as they have
been convesed to our reporters.
In the early part of the spring of the year 1861,
Just after the proclamation of the President OF the
United States calling for volunteers TO take the
field. two persons. whose names we here omit,
proceeded TO Washington to endeavor to obtain
authority from the proper authorities to raise q
regiment of cavalry in New York. While in
Washington they met with a man of some note,
and requested him to use his influence to assist
them in carrying out their views. This gentle
man had some doubts as to the character of one
of the ptrties, and was therefore not inclined TO
do any thing to assist him; but, thinking that the
other WAS a responsible honest and reliable per-
son. he resolved to interest himself in his behalf,
and to do everything in his power for the success
of the work he had in view. In due course the
favored party was introduced to the Hon " m.
n. Seward, Secretary of State, aud other per-
sons of influence, through whose e%xertions he
obtained the required permission 60 raise a regi
~, unf IT ata1r aud ~ |rnrptn-o lilo hpr-o- .r1
equipments for mounting and srming the men
From all that has traRspIed it appears that
three persons had entered into arrangements 10
form a kind Of partnership liz the business of
raising the regiment and fitting it out. on the un-
Outstanding that thew were eanally to divide
whatever profits m ght accrue from the opera
ton. 1t seems that another person was promis-
ed. as an inducement TO enter into the cOmbina
ton. that he should have the disposal of the SUIT
lership of the regiment for himself or for his
friends. He therefore. CD operated with them
until he discoveied that they were combining 10
swindle not only him, but every one with whom
they had any kind ofdealings. he then broke
off his contract. and refused TO have anything
more TO do with them. We are also infsrmed
that one Of the principals qualified himself before
a notary public in New York as a bondSman to
the extent of ten thousand dollars for a man who
was seeking to obtain the position OF p ymaster
in the service, while there were pending eleven
judgments against him in different courts,
amounting to several thousand dollars.
The operations. Of these parties. with a mer-
chant doing business IN Maiden lane are of tie
most disgraceful kind, ii all that is said about
them be strictly correct; and unfortunately there
seems to be very little doubt about them. It
appears that these operators were introduced to
this merchant aud that they Immediately entered
into negotiations with him for supplying one hun
drei pistols at such a rate that they could make
a profit of some seven dollars on each pistOl-the
accounts to be made out in such a manner that
the swindle should not appear on the face of the
Transaction. The pistols were accordingly sup
piled, when a second agreement was entered into
between him ard these parties to supply some
fourteen hundred more pistols at the same rate.
Before filing this order, however, the merchant
applied to the Inspector Of Ordnance 10 know
whether the Colonel had authority to purchase
arms tor his regiment, and, receiving an answer
In the negative, be refused to carry out his part
of the second agreement, and broke off all con-
nection with the party. IL further appears that
he came to the conclusion not to pay the share
agreed upon for this second lot OF pistols, and
Offered a party in the secret S.. 900 to keep quiet
about il. These pistols, as well as those supplied
before to the regiment. were subsequently exam
ined by the army authorizes and condemned at
Harper's Ferry. o,
la the matter of a supply ofhorses for the reg
j lNN N'G oAtNC AtO aKECNNo# ~ tbHl
under his authority TO buy horses, the Colonel
told several persons that he had made an ar
rangement by which he would be enabled to pay
them at an average OF about sixty dollars a piece,
but that he intended to charge the full Govern
ment price of one hundred and thirteen dollars. 1t
is positively asserted by those who are in the Sc
cret Of these b~arefaced frauds that no less a sum
than from fifty to sixty thousand dollars was rea
LIKED on this swindle alone. The horses thus
forced upon the military service of the country
were in most cases totally unfit for the uses of
cavalry, and were not, on an average. worth
more than from fifteen to twenty dollars apiece.
A farrier was employed to inspect horses. and on
conscientiously rejecting many of them, the Col
onel became greatly incensed against him and
discharged him from that service TO make room
for another examiner. who he supposed would be
more pliable. and therefore more easily moulded
to his nefarious purposes.
This new examiner, it appears, passed a num-
Der of horses which were bought at an average of
$50 a piece These horses were sold to the Gov
eminent at the lull price Of Sll3. Another per.
son who purchased horses supplied some 800 at
$50 a piece. These, it appears, were very good
horses. He made crt his bill in his own name at
slI3 each. and. after receiving pay from the mil
irary authorities. he paid over $40 a piece on each
horse TO one of the principals. He, however, re-
fused to furnish any more horses, as the firm soon
began to deal unfairly with him. This is enough
10 show the wholesale manner in which the Gov
eminent was swindled in the one item of horses;
but, if we choose to pursue the inquiry further.
there is no lack of facts Just as shameful as the
preceding. wr~wn na@w
The supply of saddles was too good an oppor-
tunity to be allowed TO pass. and the firm there
fore made good use or IT, According to n state
ment made to us. il seems that the Colonel cal
culated on making about three. dollnrsv on each
saddle. The saddles furnished 20 the regiment
were of the old Mexican pattern. and we're vastly
inferior to the Mcclellan saddle, and, as with the
pistols, they were all inspected and condemned at
Harper's Ferry.
lone clothing house in this city offered FIVE
thousand dollars for the costract to make the
uniforms for this regiment, and The Colonel
would have gladly embraced the opportunity but
IL appears that the. ~regiuental Quartermaster
drew all the acquisitions for clothing on the Uni
ted States Quartermaster. aud they were duly
supplied; thus depriving the chivalrous Colonel
: of what he no doubt deemed n good chance.
The ssbres which were supplied to the regi.
ment were subsequently condemned at Harper's
Ferry. They were of an interior quality, but the
f6rn" c0ntrived To make one dollar and fifty
fcents on each sabre. On y Contract with a mer-
chant for supplying sabres to the whole regiment,
! il was arranged thatthe partners should make n
profit Of two dollars on each weapon. Besides
, this there Is strong evidence 70 show that a nun
Der of officers bought their commissions at prices
, ranging from two hundred iollars 10 four hundred
dollars a piece. In regard to- the sutlership,
2 which, il ia already stated, was promised to a
, man fora friend. il seemsthaf the Colonel after
wards sold it to another person. but subsequently
took il from him and resold it to a thiri party
i for $500. the arrangement being that $3.50 was
to he paid in cash. and the remainder afterwards
: This latter person. il is alleged. paid the first
money. bnt refused to paw the other, on the plea