Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1866-10-17
TIE NEW ORLEANS FRAUD.
The Way the Government was swindlsd.

The heavy swindles on the Government
perpetrated by Jacob Loewenthal, claim
agent OF New York. were communicated to
Ihe Government authorities by gentleman
in the same profession now practising there
Mr.. Loewenthai' frauds and torgeries were
detected and traced up 10 an abundance of
legal proof, any portion of which is suffi-
eient 10 convict him of forgery. fraud and sub
ornatlon OF witnesses, by very respectable
claim agent of that city. 1t appears that
about the beginning of September ample
evidence of the fraudulent practices CT Mr..
Loewenthal was submitted to the Secretary
ot War, and by him referred to the Pay
Master General, who on the ID of October
returned the paper to the Adju,ant Gener-
al, from whose Office it was immediately
transmitted to Major General Philip Ii.
Sheridan a, New Orleans, vino is now en-
gagged IN ferreting out this stupoiIous piece
OF rascality, which has p:undered the United
States Government OF about one million OF
dollars. Last spring Mr. Loewenthal sent
two men to New Orleans-Mr. j. Lovejoy,
formerly claim agent in Washington, and
Mr. u. Blair who advertised that they were
government agents, duly authorized by the
government to collect the discharges of col
ored troops for the purpose of procuring and
paying to them the boanties due them
These confederates were provided with
spurious stamp, which they used in their
transactions with the colored troops, and
which they informed the negroes was law
tui government stamp. When large mum
Der Of these discharges were thus collected
they were sent on TO Washington. Mr.
Loewenthal furnished great quantities of
blanks to the New Orleans confederates.
who made out applications, with the excep-
ton of names and amounts. filed up the
'sfhdavlts and had them stamped by notary
public IN this complete condition, and sent
them on to Washington in huge bundles.
Here Mr, Loewenthal filed up the blanks
with the names and amounts due the sol
diers, whose discharges he had previously
received, made out the necessary vouchers
LOT pay, forged the signature of the claimant
ana signed It In manner representing that
the claimant had made his mark having the
soldiers discharge as proof and presented
the claims for payment. Mr. Loewenthal,
alter becoming possessed of large sum of
money IN this manner, started for New Or
leans, first warning his partners to give no.
'ce 10 all claimants that their presence was
required at the Office in New Orleans to re-
ceive their money. Arrived there he was |
sure to lind an immense concourse of color
ored claimants in the midst of which, with |
al the noise and confusion usual on such |
occasions, he called each claimant up in sue
session, and by an ingenious and rapid |
method of payment, which not little mys-
phed the recipients,q who where hurried |
away too quickly for their surprise to find /
expression in words, he contrived to force
rom ! this branch of the service very graft |
lying remuneration. Unless means are dis
covered to recover from Mr.. Loewenthal all !
Q! portion of the money thus fraudulentIy |
obtained the government must be loser, in
ssmuch as the claims which Loe wenthal col
lected were real while for their settlement
tne Government has nothing but forged re-
2slpts to show Most Of the men whom
oewenthal professed to pay received but /
PORTION of what was due them, and there
loTe have still claim against the Govern
4snt. A Great number of fictitious claims !
nnich had been presented at the depart
ulents and had been stamped as rejected on !
secount of the claimants names not appear
ing on the rolls fled in the Adjutant Gen
e,afs office were found in the Office of tie .
Hew Orleans partners, thus plainly indica- I
Slns another mode in which fraud was at
ssnpted on the Government authorities, and |
I Is expected that in short time all the /
aetails will be made public. 1t is also said
nat full Developments will implicate certain !
Psymaseers who were concerned with Mr..
t-0eNetnthh IN the payment of check books.