The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1868-10-02
M$igte11amenms.
From tho Detroit Tribune, Sep. 9.
Extraordinary Developments.
HALF A MILLION STOLEN FROM THE GOV
ERNMENT BY POST OFFICE FRAUDS.


Our readers are well aware that during
the past several 7weeks, parties in Buffalo,
New York, Washington and Chicago have
been arrested upon indictments found by
the Grand Jury of the United States Court
for this district, charging them with being
implicated in conspiracy by which they
have defrauded the government to great
amount. The full particulars of the all
legged fraud, which it is believed win
amount to over $500, 900, have not yet been
fully published We give below such facts
as it Is deemed prudent to present to the
public at present, and detailing the man
ner in which the frauds have been COM
mitted in the Post Office Departments for
the past seven Or eight years, and amount
ing, it is believed, to nearly 100000.
q The first intimation of the fraud was re-
ceived by the Postmaster General in Feb
ruary last, who was secretly informed that
fraud was being perpetrated in his DIS
partment and that his own agents were
concerned in it. He was given no clue as
to what was the precise nature of it, and con-
ferred with the Secretary of the Treasury,
requesting that the latter should entrust the
matter to one of his agents, fearing that, as
had been reported to him, his own were
connected with it, whatever it might be-
Mr.. Fred. Carlyle, of this city, special
agent Of the Treasury Department, was in
Washington at the time, and to him the
Secretary entrusted the duty of ferreting
out the matter He at once undertook the
work, and in June reported the result of the
Investigations to the Postmaster General to
the effect that by q conspiracy, reaching
through seven years, from 1851 to 1868, the
government had been swin5led by Post
Office contractor, Post Office agents and
clerlsin the Treasury to the amount, in the
aggregate of several hundred thousand dol.
lars. He was then directed by the Score.
tary Of the Treasury to submit the facts to
Alfred Russell, United States District At
torrfey for this district and instruct him to
commance criminal proceeding against all
parties implicated in such frauds, in
such district as Mr. Russell deem
ed proper. In accordance with these in
structions the facts and evidence in the
case were submitted to the Grand Jury in
session in this city in June last, and indict-
ments were found against nine persons who
| have since been arrested ON warrants issued
from the United States Circuit Court OF
! this judicial circuit. 7TtW & H.
And now as regards the character OF
these frauds. The law authorizes the Post
master General to contract for wrapping
paper, Irvine, &C., for the different post of
fees in the United States, and prior to Oc-
tober /, 1857, these articles were furnished
by contract The United States, for the
convenience of business in the Post Office
Department, is divided into three districts
and in each agents are appointed and de-
nominated "Blank Agents of the Post Office
Department. The headquarters of the
blank agent of the First district are at
\ Washington, and he supplies with paper,
Irvine, &C., the post offices in the Southern
States. The headquarters of the agent Of
the Second district are at New York, and
I his field is the post Offices of the Eastern
and Middle States and California, and the
Headquarters of the Third district are at
Buffalo, which supplies the post offices Of
the Western States. The agents are sup.
piled by tho contractor upon the requisitior