The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-09-16
PLINDERING UNCLE SAM,
THE BIG DEFILCITIOS OF P4TMIS-
TER HODGE.
History Of the crime-IIis Arrest and
Commitment to Fort McHenry-Cul.
pable Negligence OF Pay Department
Officials.
From the Washington Patriot.l

Officials.
From the washington Patrtot.l
For several days past there have oeen WIS
pers in the air that crash was Impending III
the nav department of the United States Gov
ernment; that Irregularities, which had been
going on for long time, had at last reacneo
a point when they could no longer be hid
tina, the full extent Of the peculatlons must
be made public, and that justice must be met.
ed cut to the guilty.
THE ACCUSED PARTY
was Major John Ledyard Hodge, well-knoWn
citizen of Washington, and a deputy paymas-
ter OF the United States army on duly IN mus
CITY. The accused served in the late war In
PENNSYLVANIA regiment, OF which State ne
was native, and held the rank of lieutenant
eoionel In the volunteer forces. Major Hodge
Mas heretofore enjoyed an excellent reputa-
ton, and at the paymaster. generals once was
regarded not only as thoroughly honest gen
tleman, but an accomplished scholar and &C.
countant. On account of his extraordinary
qualifications, the paymaster-general detahed
him for duty at his office, employing him IN
adjusting the irregular accounts OF other pay
masters, and on special service until aoout TWO
years since, when ne assigned MIN as payEss-
ter OF the bounty certificates ofthe second au.
ditor's Office This was highly responsible
position, the paJmerts sometimes amounting
TO $500 600 per moniii, but the paymaster-gen-
lers! asserts that he placed the most implicit
Confidence in his deputy's Integrity, and tully
believed he would not betray his trust.
TOO MUCH CONFIDENCE.
And that confidence must have been un-
bounded indeed, for General Brlce could never
he convinced OF Hodges irregularities. quite
a year ago, 1t Is reported, attention was Called
to Hodges accounts By detectives, who had
their suspicious aroused; butthe statements OF
the accused were accepted as true, and no ln-
yestigatiou was ordered. AZ different times
the past year the paymaster-seneral has re-
.ceived information that hodges accounts
needed to be looked into, but instead of acting
upon the Information aud investigating imme-
-diately, these charges would be shown TO the
accused, and he would be afforded an oppor-
tunity of making an explanation, which was
Invariably accepted, thus putting an END TO
further proceedings. Two weeks ago, how
ever, General Brice discovered palpaole error
In Major Hodges returns, and by letter re-
.uuested him to explain 1t, for he could not
even then believe that his deputy was dishon-
est. Hodge, however, failed to make satls-
factory explanation, and q more rigid and
careful examination OF his books followed, aud
the accused was then placed under strict sur
'veillance, and all his movements were closely
watched. Finding that 1t was impossible Tor
him longer to conceal his crime, Major Hodge
wro'e e to General Briee letter containing a
FULL CONFESSION OF HIS GUILT,
and stating that he had been making fraudu.
lent returns and statements for several years,
and that the money thus obtained ha6 been
spent In gold and stock gambling IN New
York He mentioned in his letter the name
of one firm who knew that the money he had
sent them for investment belonged to the
government, and concluded by stating that he
was ready to turn over all Of his property,
both personal and real. amounting In value 10
something like $50.000, to any agep:ec the
government authorized TO receive IN an as
signment. He expressed contrltion for his
he had taken, and implored that ne be as
Oieniently dealt with as possible, The full text
of the feuer was applied Tor last night, but
General Brice declined to make IL puonc, oe.
cause 1t was addressed to the Secretary OF
War, and 1t would not be proper to give II
publicity. Besides 1t was not deemed adVtsa.
able to publish the name Of the firm referred
TO in the confession:
In view of this confession, there was but one
course to pursue, and that was to place the
defaulter under arrest, which was according.
" done, and an order having been obtained
from General Sherman, he was, on Tuesday
evening, sent under guard to Fort McHenry,
with instructions to place him IN solitary con-
fnement> and 10 have his cell carefully
guarded.
TIE AMOUNT OF DEFALcATIoN
was stated Yesterday at between S4OO, 900 and
$500, 900, but this was In part guess WORK, aiter
very slight examination of the BOOKS. All OF
Hodges books and papers are In very oad
condition. but 1t was believed last night, IN
circles that ought TO be thoroughly informed
ons,he subject, that the de!acation will not
fall short Of
ONE MILLION DOLLARS,
nearly all OF which will be total loss to the
government. as Hodges property and the
amount of his bond will cover very small pro-
portion of the amount The true amount can
not be ascertained until after the books OF the
second eudtor's Office, as well as those OF the
pay department, shall have been thoroughly
oyerhanled. The second auditors Office will
make the investigation at once. "A lew Gays
prior to the arrest. General BriSe had con-
ference with the acknowledgement OF the army.
with reference to the manner OF disposlng OF
Hodge, aud it was deemed best to SEND MIN 70
8 United States fort for satekeeping. court
martial will be convened for his trial at an early
day, aud it Is probable that court Vi Inquiry
will be ordered to Investigate everything IN the
pay department, to ascertain how far others
are culpab!e, through negligence or otherwise.
THE ACCUSED,
who Is about sairty-siX years Of age. Is
native OF Philadelphia, but since his residence
in this city lived at No. 1923 Franklin Terrace,
streets. He is possessed of considerable real
estate and personal property. His mother is
still living One of his sisters is the wife of
Admiral Rodgers, at present commanding the
American China squadron. He has wife and
Nur children. According 10 his own contes-
Sn, he has been specializing largely In stocks
and other securities for number Of years,
and 1t was reported last night that on the
famous ''black Friday" nearly two years ago,
he lost one hundred thousand dollars In one
transaction. Like the illustrious President of
the United States, Major Hodge was an ad.
mirer OF horsefesh, and has invested good
deal of money in fast horses, and lost con-
siderable on the turf. He lived here In prince
Iy style-a style entirely too princely for
maGSwho was supposed to have no other
means than limited income and salary of
$500 per annum.
TdMM1NY SLAUGHTERED.