The New York herald., 1868-08-18
FRAUDS IN THE PAYMENT OF BoUsTlEs.
Amportant DisclOsures-HOw the Frauds
Were Comnaitted-An Investigating Com
mittec Appoiuted-The SwindIers White
vaSlod.


miftee Appoiuted-The swindIers White-
washed.
WASHINGTON, August is, 1858.
In view OF the near approach OF the Presidential
election and the vital importance OF ts result upon
e iu'ure OF tne country, to give account Of some
OF the frauds and cOnnivance at fraud Of which the
party now in power has been guilty would perhaps
be time and trouble well expended II all lbe records
OF the several departments OF the Uovernment
could be thrown open to the inspection of
the public. that credulous and much abrsed
body would stand speechless with astonishment AZ
the number and magnitude OF the peculations that
would thus be revealed. The great success thesa
public piunderers have met with in their sIittle
games" for large winnings has deprived many OF
them Of the caGtion with which they have bean
wont, in times gone by, to carry them into execu.
tion; and now, rejoicing In their enormous strength
which utterly dedes all attempts to check them theg
dip into the public Golfers with the most refreshing
efrrontery and In the broad glare OF day, trusting
confidently to the universally Of the guilt for their
escape IL brought to account. The boIdness with
which many of these frauds are perpetrated fre-
quently discovers them to the public gaze, and an
emphatic demand for inquiry and prompt punish.
ment in case OF guilt generally creates but tri-
nng arrangement In the lucrative operations
Of the accused. To meet the ends OF JUS
| tice committee is spoken into existence.
| Sometimes 1t is a committee OF congressman and
sometimes committee OF clerks OF the same de-
partnent; but whether the the other for GER
tain reasons best known to themselves good and
substantial ones no doubt, these committees always
| have among their oiice furniture whltewash
buckets and brushes. When the committees have
completed their labors il is generally found too that
| they have used those implements quite liberaliy.
| few weeks ago the Secretary of the treasury
was informed OF q system Of frauds that was being
carried on by some OF the Treasury clerks league
with other clerks In the War Department. The evi-
dence brought before the Secretary was sufficiently
clear to induce him to lay the matter before the Con-
| gressiona committee appointed to investigate
! charges OF fraud against the Pay Department. lhe
chairman of this committee Mr.. w. 5. Lincoln, sup
posed, as the charges involved alleged frauds in the
payment OF bounty, that his committee was author
ized TO take cognzance or the matter, and at once
entered into an investigation with remarkable zeal.
prominent officer OF the Treasury Department and
one from the Adjutant Generals office, since de-
ceased, were appointed to assist the committee in
their labors. The charges OF fraud involved one or
| two rooms in the Second Auditors office, several
clerks and officers of the Coored Bureau OF the Adu-
tant Generals ONCE and number of clerks in the
| once or the Second Comptroller OF the Treasury.
| The investigating committee waited upon Secretary
Schofeld, who at once entered into the examination
with them, and the Colored Bureau was closed, as
was also the two suspected rooms in the Auditors
| office The committee applied themselves vigorously
| to work. For a few days The proofs OF 0yerpay-
ments to colored soldiers and OF much confusion
among the vouchers were discovered in great abun-
dance.
suddenly marked falling Off was observed in the
zeal with which the committee and their assistants
ferreted out the fraudulent cases, and very OF
the strongest and cleares cases OF fraudulent deal
|
| levant. Thus the investigation progressed slowly
! with prOdgious show OF labor but with no.
Congress. The chairman of the committee had
taken no part In the investigation for several days
before the adjournment, and on the last dag Of the
session Mr.. Cobb one OF the committee made brief
report to the effect that although Irregularities exist
in the payment OF colored bounties and discrepan-
! ces between the records of the Adjutant Generals
and the Second Auditors offices were found, yot no
evidence Of fraud was obtained against any ndivl-
| dual in either department named or against any
| agent doing business with them.
Now your correspondent, having had access to the
same evidence that was laid before the committee,
purposes to give his understanding OF the same and
| will endeavor to explain lew OF the irregularities
accordance with o law OF Congress loyal owners Of
slaves who enlisted in the volunteers were paid $500
as indemnty for the loss OF their property. To carry
| out the provisions OF this law a Slave Claim Oom-
mission was appointed, which examined and settled
| the claims. The first commission settled most OF
| these claims coming from Maryland and Delaware.
| The law also specified that every coored volunteer
| who had been slave was entitled to only 800
bounty; and in order that there should be danger
OF overpayment in these cases Mr.. Stanton directed
that as each claim OF q loyal owner was paid the
remark that the cOOred soldier was slave should
be entered on the muser-out roll filed In the AdJu-
tant Generals ONCE. when the second Slave Claim
loyal owners In Missouri Kentucky and other West
ern States, no order was given by the Secretary Of
| War to have the data entered on the muster-Out
rolls, and consequently the entries were not made.
Now between the radical clerks OF the Second Audi
tors ONCE the Bureau OF Colored Troops and certain
firms OF claim agents in this city strong political
afinity exists, which Is very natural, ali being dis.
tinguished members or the Grand Army OF the Re-
public s therefore but that this radical
ring which has only the welfare OF the negro Ut
heart, should wish 70 favor their colore1 brethren
for a coored claimant who by law is only entitled to
$780, not only lays the colored claimant under debt
gratitude to his radical guardians, but results lar
more pro1tably to the claim agents. and, doubtless
TO all others concerned.
In order the better to understand how the afOre
said irregularities occur let us present claim and
follow it up to It's settlement we will take
Bureau, which will save the necessity OF sup
posing one. favorite nrm OF claim agents
pvao ohn cc@pany
states Coored Troops The claim Is taken up In the
second Auditors office; but before certificate can
reau OF COlored Troops TO ascertain whether he was
slave. II he was he Is entitled to 500. II he was
free he Is entitled to $500. The following ls copy
oil the question written on the back OF the caim:-
TREASURY DEPARTMENT,
Rc.pecaIy referred % ,as Adlaianl General. who wg
Troops: He claims 70 have enlisted Decs%ber 1861 sss
$ :: to the navy there any '
The reply came back from the Adjutant Generals
ofice ''There is no evidence on the rolls Of the com
pany on file In this ONCE that he was slave" ON
this reply the certificate was given that the claimant
While il Is true that the rolls furnished no evidences
that this claimant was slave there was at that time
duly sworn TO and subscribed, that John Smith waS
his slave at date OF enlistment December ~, 1885,
and this owner had been paid his $500.
Here, then, Is where consultation or the
slave claim records would have saved TO the govern
ment $500 that was fraudulently expended. II this
were Isolated case there might be some
reason to suppose that 1t the result Of care.
essness, but when we ind large number OF similar
cases the matter Is deserving OF more serious term
than irreguarty. Many more like bo
given. The claims Of Robert Blake Company q,
Thlreth Coored Troops; stewart Pitts, Company *,
Ninth Colored Troops; benjamin Anderson, Company
A, 1hirty-ninth Colored Troops, and hundreds OF
others. This Ia not the only method by which fraudu
lent claims paid; there are many Others, II any
thing, OF a more aggravated character. Take. for
example, the case Of william O. Boxer, Company X,
Sxty.seventh United states C0lorcd Troops. Boxer
was discharged a surgeons certificate OF dsa-
bity. and could have been paid on the Information
given therein. when his claim came up In the
| Second Auditors office the usual question was
| asked, was he a SLAYER The answer was returned
| from the Bureau OF Colored Troops that he was q