The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-03-22
New York Observation-Disclosures OF
the Bailey De faIcati0n.

NEW YoRK, March 21-The in
vestigaiion into the Affairs of Collec-
tor Bailey still continues. Mr.. Childs
his chief deputy, was arrested on Sat
urday night. but was released on bail
of $4,000 to-day, his presence being
needed at the investigation aE tho of
fee MIR Vail. Deputy CoilsctOr,
claims that the accounts of the office,
so far as investigated, ere found cor
rect, on the contrary, District Attor-
ney PieFrepont, says up to the present
time, dsfaication amounting to 1920,
900 has been discovered, which he
thanks will cover the fraud. A war
rant for the arrest of Bailey, Childs,
aud Frederick Low, the cashier, was
issued on the affidavit of Colon Il
Whitley, chief of the secret service
division, OF the Treasury Department,
that the United States had been de-
frauded of about 100000, and that
Bailey has confessed he is in default
to large amount and that others
must have aided him.
The belief is expressed by many
that Bailey is still in New York,
while others think he committed sui
| eide. Childs made a statement
| substantially as follows: He had
nothing to do with Bailey's accounts,
which he managed himself. lie de-
| posited the funds collected in the
| Fourth National Bank. Whenever
he required money he drew on that
account, but be, ,Childs, does not think
Bailey understood the law upon the
subject. The Treasury Department
sent Mr.. Mann, one time, to examine
Bailey's accounts, and they were gem
orally settled in some way to him
Childs) unknown.
Bailey has done all in his power to
return all the money taken. He did
not want the public to know how his
affairs stood. He was naturally
proud and ambitious, and would not
submit to public disgrace. Bailey
always endeavored to detect fraud,
and had repeatedly said, L do not
want money so much as [ desire the
reputation of good and faithful
officer" He had often spoken to
Bailey about his Indebtedness to the
Government, and so far as acquainted
with the facts, Bailey's accounts were
not always allowed by the Treasury
Department.
He would often give receipts for
money 10 tax payers, and fail to make
entry on the books, and had returned
a number Of such accounts as unpaid
Childs himself had never used any
money of the Office for his own bene.
tit, and whenever he received money
always returned it to the cashier
He had In his possession a letter from
Bailey, clearing him from any suspi
cion. Bailey admitted he was doing
wrong, but seemed to think he would
eventually came out all right. Childl
says he also was ssnguine of this, il
Bailey was allowed sufficient time
The cashier knew nothing of the
transactions, and is honest and up
right IN all his dealings.
Childs thinks the amount taken bJ
Bailey will reach $4,000. the exten
! of his bonds. Many of his confden.
tlal clerks, and others In the employ
of Bailey are reported willing to make
affidavit that he appropriated large
sums to his own aud various accounts
The Commercial Advertiser says i
has 1t from good authority that one o
Bailey's bondsmen approached a vel
known distiller 10 this city with th'
proposition that if the whisky intcres
would raise $500, 900 he would resigr
and leave town. The offer was de
elined.