New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-08-01
WASHINGTON.
PENSION FRAUDs-MovEMENTs OF SECRETARY
BOUTwELL--CHNAMEN IN VIRGINIA


wAsMsGTos, July 81, 1870
| The frauds in the Pension Office turn out to be
| more extensive than at first supposed and their
| investigation promises to involve some very prom
ineDt men. DR.. Van Aernam, the present Commits
soner OF Pensions has devoted much time and attention
IN reforming the Irregularities in the pension system and
IN Mace the protection OF tho Government between a
customers and dishonorable claim agents and awyers
Since September last several hundred Thousands Of
dollars have been by him through his detectives
and agents from dishonest claim agents and attorneys,
and handed over the rghtul pensioners, or placed
again TO the credit Of the pension fund The Commissioner
has had the painful duty OF ordering the arrest Of very
prominent persons throughout the country az con-
nected with the frauds-and in many cases OF
convcting them Whea he entered the Pension Office
everything in confusion, and Illegal claims that had
been collected years past were yet on the DOCKS az
genuine The arrest and conviction Of Reynolds ~ west
ern New York for drawing attorney the pension OF
widow long since dead OF the results Oh his new
system Of reform This followed by similar successes
in various parts Of the country and ye: the frauds con-
tinue and are being brought 10 light every Day The
books OF the Office show that each days work IA care
fully footed up and the memorandas, false Vouchers
fraud by attorneys, nOndependence, or perjury by mo
alleged pensoner widow again married, pensioner Gcad'
&c. to be in abundance for the month OF june
The Commissioners Report shows the following results;
Pensoners-65 arrested out OF which p were con
yicted acquitted, and escaped, and IS are yet ~ bs
tried Attorneys-4O arrested Is convicted u acquitted
escaped and Il trials pending Pensioners worthy
widows have obtained s2GO3 a through fraud; OF THIS
amount the Commissioner has recovered slli9 81 va
rous attorneys claim agents have Illegally charged or
withheld sel22 56 nearly all Of this sum the Commits
soner has recovered and caused 1t to be placed IN the
hands Of the proper parties An instance OF this KIND
occurred yesterday. prominent lawyer OF boston
withheld $50 from pensiOner the lawyer was compeled
TO return the money the Pension Office and In MS et
for IN nm mi Aernam
rendered money to the pensoner ot course aer the
fraud discoyered and that the latter had refused 10
receive it except through the Pension Office; the lawyer
inclose the $50 Commissioner and the latter buys
PostOfice money order and transmits the so to tho
pensioner. This is almost an everyday occurrence.
1t is understood from officers OF the Pension Bu-
reau that stupendous frauds have been brought to
light in the last six months in the Southern States ono
of the parties charged with being concerned In these
frauds Is Mr.. DENLY Of Georgia. man said 70 be OK
prominence in the locality where he resides no
Commissioner has Of his agents investigating tho
matter Another person. and one of far more promi-
nence because he is Member Of Congress, is Rodney K
Butler OF Tennessee His connection with the cacesp
business and the report OF the Committee thereon Is OF
too recent TO refer TO. His complications In
these frauds the Pension Office, Commissioner van
Aernam states are darker than cadetshp matter
could be. An agent is in Tennessee making NOR
ough investigation OF the various frauds with which II Is
alleged Butler is connected preparatory to legal prose
cuton Money obtained checks, forged attorney
ships none xistence Of alleged pensioner, moneys with
held from the pensioners, and where pensioner
would be entitled to several hundreds OF dollars receiving
but $50 or SIS are some Of the charges made.
The Commissioner OF Pensions has doubt OF the
guilt Of Mr. Butler although the latter alleges that
all right and shows yolumnous documents and large re-
| ceipts. Indeed the Commissioner, for the past six
months has denied Mr. Butler the right to communicate
personally or correspond with the Pension Bureau or to
in q
Congress; for as a member OF Congress, 1t seems he
prosecuted some Of fraudulent claims when he was
really also acting attorney, etc. These facts were In
part made known to Congressman Bingham by Comnis-
sioner Van Aernam while Congress in session. but 10
publicity made OF the matter at the time Butler Is
| candidate for reelection to Congress
Secretary Boutwell,, who has been detained here by the
pressure important business much longer than ho
ticipated took the train for NewYOrk yesterday He
will tomorrow meet Superintendent McCartee OF the
Bureau Of Engineering and Printing and receive report
Of the sustained to the Government in the late fire
at the establishment OF the American Bank Note Com
pany. on Tuesday morning he will proceed TO Long
Branch and spend several days with President Grant
thence lie Will go TO his home in Massachusetts, where Le
| will remain for few weeks
John Chinaman will soon invade the Old Dominion; 200
Mongol laborers are on their way from California 10
Virginia. having been hired by the Ohio and Chesapeake
Railroad Co. at SIS per month. They to be employed
principally the tunnels to be cut in the western section
OF this important road. Their first camp to be located
near famous White Sulphur Springs and they ex-
pected TO arrive within the next 10 days.
II Is reported that President has decided 10 tend
to Senator Williams of Oregon, whose reelection TO Il o
Senate is doubtful the position Of SoctorGenea Of tho
new Department Of Justice created by the last Congress
The President is known TO regard the Office OF tie
important in the Government being scarcely less
so than that of Attorney-General.
The Printing Bureau Of the Treasury Department
terday turned TO the Treasurers Bureau 100000
Of the new $500 notes which will be issued to the public
tomorrow Aug. 1.