The New York herald., 1871-09-18
w ASF1NG ON.
The Defaulting Paymaster and
His Temptations.
ulatiOnS.
Meeting Of the Supervising inspec-
tors Of Steamboats,.
Proposed Changes in the Present
Modes of Inspection.
The Ku klux Reports from
South Carolina.
SENATOR SCOTT'S REPORTS SUSTAINED.
A Horrible Case Of Probable Ku Klux-
ism in Georgetown, D. c.

WASHINGTON, Sept. II, 1871.
Tue Case Of Paymas,er Hodge-(srOss NeRli-
gcuce Of Government Accounting Officers.
The controversy between the Paymaster General
and various officers OF the Treasury, relative to the
responsibility for the failure to detect the Ong-con
tinued embezzements OF paymaster Hodge, Is beau
tlfuly revealing the working defects Of the account
ing system Of the government. and inc ease with
which dlsbursng officer who Is fortunate enough
to gain the confidence or his superlors can have the
laws and regulations designed for the protection OF
the pubic funds, inefficient as they may be, set
aside to give him the clearest pos
sibe neld for fraud and pecelap2p, Under
these laws and reguations as Applied to
,ccsss trusted officers, Major Hodge should have
closed his accounts to date and made an
actual transfer OF all his balances to some other off,
Ger when he renewed his bonds, In 1867, well as
last April He should never have been permitted TO
have In his possession or deposit larger sums
than were needed to meet his averages current dis
bursements. He should have peen rel2ired to
number his checks on each depository where his
funds were kept III regular successo ons and account
for numbers not appearing in his crrrent returns.
Nor should he have been allowed to draw cash from
the repositories except In small sums to pay the
comparatively few claims and demands that did not
exceed SO apiece. Had Paymaster Hodge
been required to settle his back accounts and
transfer his cash balances when fling his new bond
on his transfer from the volunteer to the regular
pay corps, IN 1861 the embezzlemenls OF the past
Tour years would have been prevented by the eer-
tain discovery or his deIalcatOns to tnaU date, and
compliance by the Pay Department. with the rules
at the time OF his periodical renewal of bonds. five
months ago, while il would not have saved much to
the Treasury, would have brought an earlier dis
covery; had the Paymaster General not habitually
and contrary to rule and custom, hOn0red his calls
for large sums not required Tor imme-
diate disbursement. the means OF carrying
on his Wall street speculaions would nave
been wanting altogether; had he not been granted
The unusual privilege of issuing checks Without
numbering them in regular series he could not
have used his blank checks to obtain public funds
Tor his private purposes. and had he not been per-
mitted to draw from the Treasury here sums rang
ing from five to fifty thousand dollars in cash and
payable 10 bearer, he would, early in his career,
have been brought face to face with such an array
OF fictitious names to be invented and endorsements
to be forged that he would nave turned aside from
his projects I'm despair. That observable indepenJ.
ence and absence OF cooperation ana comparison OF
books and papers by and between the various
oGlcalS and subordnates TO whom a discussing
officer is made accountable becomes an element OF
discussion in connection with the case OF this de-
faulter. 1t was at all times possible for Major
Hodge, while he possesseo the confidence OF his
superiors, TO report without detection, as his
weekly balance for any week, one amount TO
Paymaster General Brice ana different amount to
Treasurer Spinner. At the end or the calendar
month he could, In his current, report the
balance due by him to the United States to be sum
different from that just named In his regular
weekly report. The upshot OF the matter apart
from the personal disputation, daily waxing hotter,
is likely TO be q stern and radical reform OF
the system and practice Of accountability by Con-
gress at Its coming session, and weakening OF the
too prevalent custom among the permanent Office
holders at Washington OF retaining pet subor-
dnlates and granting them license that they
would not think or using themselves. Paymaster
Hodge was specially excepted from the general
order changing the statlon and duties Of army
officers who had been long on duty here year ago,
anu the reason advanced by his chief was the same
tnat had covered prior exceptions to general regu-
latlons-an alleged public ex,gency and the possess
sion by the officer OF unparalleled fitness and iediy
in his place.
Boutwell, on ~pecchm king by Government
Officials.
Secretary Boutwell, has telegraphcd Acting Secre-
tary Hartley that he VIII reach here on Thursday
next and after remaining here few days Will leave
year since Old John COvode, then Chairman OF the
state Central Committee OF Pennsyl lvania, tele-
grapned to MIR. Boutwell, that it was all-important
for him to make some speec hes in the Keystone
State, or the republicans might lose several Con-
gressmen. Mr.. Boutwell's reply Was in effect that
he had been selected to il the occ OF Secretary of
the Treasury and could not at the time absolve him
self from the responsibility of the Once. TINS year
he has treated the Pennsylvanans the same way,
although he can find 1t convenient to address the
people Of Ohio on the political aflars OF the day.
The Ku Kiux Reports from south Carolina.
Senator Scott sent to the Attorney General on sat
urday the following documents sustaining his pre-
vous position as to the affairs In South Carolina.
United States Commissioner Poiner, Of Columbia,
S. c., whose name the first affixed to the state
ment OF the 7th inst declaring that martial law
not necessary IN Spartanburg county, sent the ol
lowing to Senator Scott
MY attention has Just been called to an editorial in
the Charleston C0u OF the 7tn instant, IN which
letter from Spartanburg, addressed TO senator |
Scott i'll relation to the condition OF aflars In that
county. ana signed by myself, with others, Is made
there IS no necessity for the declaration
of martial law IN several counties OF this
Wne SO far s,oa as my snoWeege nia sX
true, yet believe tnat the county quiet at present
simply because the United states civi and military
authorizes nave been for the last weeks riding
through the county making arrests OF all those |
whom tney could nnd who nave been heretofore en- !
gagged In committing outrages since the Invcsti- |
gazing Committee left know that outrages have oc-
Cured In York and Union counties, and may nave Oc-
Cured III spartanburg county during my absence
of three weeks at the United States Court IN Green
vile, and no doubt they would have continued III |
Spartanbu2 county II 1t had not been for the active
taken by the United states officials. L |
believe that martial law is the only permanently |
enectlvc remedy Tor these troubles.
SAMUEL I. POINER,
United states Comniis sloner.
HEADQUARTERS POST SPARTANBURG,l
SPARTANBURG, =. g., Sept 6, 1871. I
Hon. JOHN SCoTT United STATES senator and Chair |
man Congressional lnvestigating committee