Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-04-09
CLAIm AGENCY swIsDLEs.
More OF HE ROunty Claim
Frauds.
A Scheme for the wholesale
Plumber Of the Treasury.
Startling Developments.

Some months ago, the APPEAL pub
lished In its local columns a carefully
prepared and accurate account OF the
modus operdndi adopted by the claim
agencies in this sn1 other Southern
cities, for fraudulently obtaining money
rom the United States Treasury. The
document was a thorough expose OF the
system, aud was only written after close
sersonsl observation, and athoroUgh eX-
eminstion and digestion of the facts.
Every statement made ia that article
was afterWard substantiated by the re-
port Of Commissioner TOstin to the Sec
Ond Auditor of the Treasury, lately pub
lished, and so vigorously attacked by the
claim sgents and fheir friends.
Au aItsohe Of The New York Tribune,
after reading the report Of the Second
Auditor TO the Chairman of the Senate
Committee on Bounty Claims, took It
and visited q gentleman, lately an office
holder In Washington, and who was
known to be cOnversant with the facts in
the case. The following Is a statement
made by the ex-of1ce holder, whom We
will call M. X, during the conversation,
and published Ia the Tribune:
Before the bill gss passed allowing
pension and boua:y - cOlored vOlun-
teers in the late war, q informant, Mr..
X vas approached ~ al ex-Msjor Gen.
eral, who invited him to enter a money
making scheme, which he said, required
an investment Of $50, 0O0 on the part of
Mr.. Y. Ga being ssked for a full expia-
nation OF the schems, the General told
Mr.. Y. that il consisted in purchasing the
claims Of eolcEed soldiers for bounty.
Mr.. X.-But there is no law granting
either pension or bounty to cOlOred
troops.
NJ Gen.-True. But such q law will
sSon be passed, and unless we take time
oy the fOfelOck the field will be occupied
by a thousand agents, and our opportuni-
ties lost forever.
Mr.. What better opportunity have
We than anybody elss?
Maj.-Gen.-I have already been prom
ised by - the monopoly OF the
business. He is to receive one.ffth of
the profits in consideration Of his SER
vices.
Mr. X.-What becomes Of the balance?
Maj.-Gen.-I receive One-iith, and
you, II you invest $4,000, come in for q
like share.
Mr.. X.-That's three fifths. How
about the other two-fflhs?
Maj -Gen.-They are divided equally
between - Dust appointed Cover
Of one OF the TerritoTies) and -
3 U. s.. official at CovingtOn, KY.
Mr. A.-And what do you expect TO
Msj -Gsn.-Somewhere In the neigh.
borhOoa Of $500, 600.
Mr.. X-How?
Mai Gen. The ignorant blacks who
had served in the army, especially those
who enlisted in Kentucky and Tennes-
see, are not aware that their claims are
worth anything. Ia fact they do not
know that they have any claims against
the Government. We propose to send
our agents and buy up their discharge
psplrs st an expense Of from five to ten
each, procure the necessary doc
nments TO accompany them, and send
them all 10 tAe proper officer at Wash
who will NOT delay in l%iquidatiog
the claims, and pocketing his share Of
the profit.
Mr.. X listened with patience to an
elaborate explanation of the plan, learned
the name sGd position OF each Of the
gentlemen VINO were expected to take
part in the fraud and us proceeds and
then, according to his statement, re-
used 70 have anything to do with the
business.
1t is not deemed advisable at this time
20 make public the nsmss of the parties
20 this prof ecGed fraUt, fur reasons which
are obvious. When the proper time
comes, that ie, when a publication of all
that hiss hsen omitted OF this sffair shall
not ia any way tend to defeat the ends
Justice, the names of The interested
parties will bs given. Whistler the
made by Mr.. Y, who is a bust
ness man Of repute, is true or false, we
no g Of knowing. II tiue, it
inculp>tes q gentleman who has held an
honorable position in the sTmy, another
who has occupied places of trust aud re-
for many years, and 2 third,
who has, until very recently, been the
recipient of valuable fav0rs from the
Government.
In connection with the above we find
the following in the Washington Chron
icte Of the 5:h inst:
"Tbe representatives of the Ladies'
Uaion6 Relief Association Of New York,
in this city, received by lsst nights
q petition to Congress-, numerously
signed by New York members OF the
Grand Army Of the Republic, To pass the
bill lately presented to the Senate by
Senator Wilson, for the protection of
from ~swindliag claim agents.
Many similar petitions are being passed
round for signatures in different parts of
the country.
"It is understood that when the bill
reaches the House, Gems. Logan and
Butler will take charge OF it and endeav-
Or to press its passage. It may require
amending in some particulars, 30 as to
ne practical difficulties in the
way OF asoldier drawing tue amount due
him, but the purpose Of the bill meets
with general appreciation"
BOOKS AND PAMPHLETS.