Evening star. [volume] (Washington, D.C.) 1854-1972, 1868-09-21
The Alleged Defalcation al the Post Office
Department.

TIMArKD TO AMOUNT I'd Si7,0OO.
The announcement that Col. f. b Olmstead
disbursipg clerk Of the Post Once Department,
and superintendent Of the Department building.
had proved defaulter aud left the city, created
great surprise here, as he was extensively
known and highly esteemed by u large circle of
friends and acquaintance. The amount OF the
de heit in his accounts cannot be known until
all OF his books and papers are thoroughly
examined, which is now being done, but thu
work Is not yet finished. 1t appears that
for sao e but 0p tSe drs wa. d is ~ssd
because his accounts were already over
drawn. The Postmaster General was then
notified of the fact by the Treasury
Department and he Immediately inquired
OF Olmstead the cause OF this, he replied that 1t
wss owing to some informally, he not having
transmitted certain vouchers which he should
do So On Saturday morning last he was at
MS once as usual about half
past ten o'clock. aud inquired if Mr.. Brauagan
a night Waterman. was there. Being told that
Bransgan was down stairs, he went to see him
and stated to Brauagan that he was in trouble,
aod wanted TO see bin privately, but could not
tH'k to min at the Dep ArtDen as there were too
msny Pc: sons about, bat that he would 60 -
BrsDagan's house aud talk TO him there; that
be WA then gong to the Tro lsury to 5 what
ne could do, and would see Bran lga1 at his
t2ih street Tear r, and about twelve
O'Clock Olmstead cine in sski1g
for soldiers cot AID s,odch
aaf s SITTING that ne cid not want to 60 no ne
YVES going to remain in the woods a tine add
would then leave for p-rts unknown. The
coat end hat were furnished by Brauigan, and
Olmstead gave him IN return bis has, telli ~
him to destroy ii. He also gave to Bran gan
s1.cO0 in grCenDacks, telling him to denver the
money to Mrs. Olmstead and the key TO the
.aie at the Department, which he told B. to
drop in his private drawer ct the Department
he then left the house with the overcc 1t ard
SLOUGH hat on. Branigau grew troubled about
the ma.ter, and delivered the envelope con-
Mrs. Ollnsiead, at her II ID ence on 1Ith sir ct
between M aud N strcef-, add told her
Of her husbands strange action: The
unders' and the matter. Braniyan fear,ny that
he hid done wrong went to 80 the priest of
the parish to whom he told all that he'd hap
what he had done, and directed hum to imme-
ciately notify The Post Office authorities of al,
and keep nothing concealed. Branigan thea
sought Third Assistant Postmaster General
senger was sent 10 the house of Olmstcad, when
Mrs. o. Immediately sent the package Of money
and envelope containing the key. Upon open-
ing m, the envelopeit was found to contain besides
the safe key, the gold finger ring and shirt
studs which Olms' cad had worn. The
facts We're Immediately communicated
TO Major Richards, Superintendent of
erai SPECIAL agents OF the Post Once Depart
m nj, were placed on trail OF the fugitive,
but up to the hour Of our going to press this
s sae ne had not been arrested. Olmssead
mas been Engaged for some lime past in per-
Fct'n patent envelope machine, upon which
he has expended a large amount OF money aud
expected to sell the machine to the Govern.
ment and realize fortune thereirom. Some
time ago he bought a Iarm near Beltsviile,
Md, and later has been purchasing large tracts
OF land in North Carolina, which he repre-
sent d were rich with ell yer and iron mines
n To
money. He was also lately interested in a
plumbing and gas-fitting est .blishment on 9TH
peighborhood.
He has always been looked upon as an honest,
upright mlu, though somewhat eccentric
Many persons have lately declared that he was
gong crazy and II is believed that his mind
was affected. A number OF clerks in the Post
Ofiice department. had deposit ID with him for
saIe X; eping. Government boads AID valuable
papers. End these have not yet .sn fonnd II
is leJred that he has made use Of item in his
specula!ions. II is said that he was an inordi-
male opium enter, which tended to derLuge
his mind. He his an estiuable wife and four
children, the oldest Of which Is boy about
ia years OF age. His family are in the depths of
trouble, as he hos always been an affcc,,opate
husb pd and kind f-ther. Olmstead was ap-
pointed disburs'"g clerk End superintendent
OF the building by Postmaster General Deani.
SON on the 9th Of September, Is ), to succeed
Mr.. James ). Hallowell, who resisn ned.
Col. VIM. Bell, of this city, 1a.e q special
agect OF the Treasury Depar men, bu, for
merry tisbprsiuy clcrk of the Pot Once De-
partmeut, was appointed on Saturday evening
TO succe ed Olmstesd, ard entered upon the dis
charge of his duties this morning. ~ rfr
Congress appropri: I'D $4,000 to complete
the Post Office building, upon O'ms;~cd's own
estimates, but this sum has all been expeud ID,
ard ,he building but little more than hal. fla
ishsd. s.-
The Postmaster General, with his assistants,
Mcclellan and Zervly, and Colonel Bell, the
new disbuising clerk, this morning opened the
nj. nj lnph lie
and papers. About $4,000 worth Of youcle 8
Which pnrported TO ha We been paid were fonnd,
aud they, il is stated, should have beeh trans
ni;red to the Treasury. The isct Of them beng
found In the safe creates the usticion that
they ale fraudulent; but II Will soon be known
whether they are genuine or BOT.
sr ie fourd all the books ard papers, bat about
forty. five dollars only IN money. They
found memorandum prepared BY Ohm
on Hand" in which he mentions vouchers for
large amounts which c3pnot be found. Were
all the vouchers therein mentioned at hand ard
legitimate, The defalcition would be less thai
two thorsand dollars, but II is evident that for
d Urge amount there are no vouchers His ac-
counts at the Trsa-ury Depar tnent, up to the
Both Of June last, show si6O,0OO for which
no vouchers have yet been returned, but
two pay rolls for the Post Office Depart.
ment for the months of July and August,
amounting TO over $4,000, besides the
ments on the building, furniture, supplies,
salary advanced TO clerks this month, &c
amounting in the aggregate to abou: $4,000
Supposing them all 70 tie genuine, and Ii leaves
the amount to be accounted for about Si7,CJ0
which, il is thought, is about the extent Of the
though il is not known what
amount of bills have been contracted which
Will yet be presented. The books were all
found to be in perfect order, end kept
very plainly, and it is thought the
vouchers found are all genuine. Olmstead
was seen on Saturday evening about 9 O'Clock
at house near Pierce's Mill on Rock creek
about four miles north Of the city, where ne
asked for something to eat, but the inmates not
liking the appe Irance Of his soldier coat aud
sloGched hat refused him. He. next went
TO the house Of an old colored won an ne n
there, who gave him some food aud he inquired
OF her the way 10 Georgetown, stating tnat he
wantea to find the Rockville turnpike. When
he lett the house of Branigan he stated that he
Fad over 500 in change in his pocket, but
promised BranIgau that he would not commit
suicide. 1t Is thought that Olmstead is still In
he ne'ghborhood Of the city.
Olmsie5d's official Bond is but $4,000, aud
his properly in this city is probably worth
3 5,tO0.
TIE FALSE PRETENCE CAsE.-Ths after.
moo, Justice Walter rendered his decision in