Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-07-06
GREAT Treasury FRAUDS.
Radicals Peaching on Each
Other.
Serious Charges Against the
Treasury Department.

vice Department OF the Internal
Revenue Office UnfOlds q Tale of
a StupendOus Eraud ON the Gov
ernment.
WASHINGTON, July 4.-Considerable
sensation has been produced by the pub
LEGATION, in the National Republican, the
Administration organ in this city, of
statements purporting to come from Col.
Clifford Thompson, who was recently
called upon to resign his position as
Chief of the Secret Service in the Inter-
nal Revenue Bureau. The story is as
follows:
Saturday night the town was alive with
rulnors that authentic information had
been given, coming, it was alledged, from
Colonel Clifford Thompson, who recently
resigned his position as chief of the secret
service department of the Internal ReVe-
nue. Office, to the effect that the animus
exhibited in causing him to break his
connection with the Treasury Depart
ment was because he knew too much of
certain transactions lately discovered,
and which would seem to prove that
recently stupenduous fraud has been
committed.
'8The matter, said to have been laid be,
fore the Secretary of the Treasury, was
as follows: Some months since a man
by the name of Stone, formerly distil-
Ter in Brooklyn, received propositions from
certain parties in the Treasury Depart
ment that they could furnish him large
quantity of genuine United States bonds
at liberal discount, and that under the
workings of the Treasury Department
there would be no danger of discovery.
After some diplomacy, Stone became
convinced the propositions could be car
RED out, and proceeded to try and raise
| 500, 600 cash. For this $4,000 there
was to be delivered to him at Newark,
New jersey, where he was to meet the
other parties to the operation, $50, 600 in
United States bonds. The bonds were
taken to Newark, but owing to delay in
raising the money Stone did not come to
time, and the bonds were brought back.
"a short time subsequently Stone sent
| word he had fixed the question of cash
| and 10 bring the bonds to Newark. They
were taken there, and the money changed
hands. Subsequent transactions followed
| this one, under the agreement that 80
much cash should be paid down, and that
Stone should share the profits with the
parties furnishing the bonds.
''After collecting large number of the
bonds, Stone went to Quebec, and from
there sailed to Europe, where he is be-
lieved to have put the bonds on the mar
ket in small quantities in the different
| European cities. Stone carried to Eu-
rope with him young man by the name
| of Sprague, who was his clerk while
| distiller, and who materially aided MIN in
the disposition of the bonds.
| sAbout the first of June Stone came
back to Quebec, where he divided about
| $500, 900 made in his new mode of nego-
tiating public loan. After this division
of.spoils Stone resailed for Europe imme-
diately, and is now in st. Petersburg.
SIN his first efforts to raise money
Stone communicated portion Of his
plans to two or three parties from whom
he attempted to borrow. These individ-
uals, from fear or morality, declined to
go IN, but kept an eye on Stone.
''The information received from Stone
was quietly impaired to one or two par
| ties in strictest confidence. The conf
dence was so strict that it reached the
ear of Col. Thompson, then chief of the
| revenue detectives. He Immediately told
the whole story to Gen. Pleasanton, and
| asked his advice as to what to do. Pleas
anton adVisd him to go to Secretary Bout
well and lay the matter before him, as
such matters were not within the jurisdic-
ton of the internal Revenue Bureau.
i Col. Thompson laid the case before Mr..
| Boutwell,, and was laughed at for his
pains. Boutwell, asserted that such
things could not be in his department.
Oh! twas impossible, impossible, sir.
| Thompson insisted that the account came
to him with such circumstance! correct
ness that he thought it ought to be looked
into; but if Mr.. Boutwell, differed with
him, it was none of his (Thompson's)
business, and he would drop it.
Subsequent to this Col. Cross and MIR.
Whitney Frank, of New York, came
down here, accompanied by New York
lawyer named Herbert, and told to Mr..
| Boutwell, substantially Thompson's story,
and offered, if authority be given them,
| TO 60 to Europe, capture Stone and bring
all the parties to justice. OF course, they
wanted to be compensated if they sue
ceeded, and SO stated to Mr.. Boutwell,
The Secretary laughed at them, as he had
done at Thompson, and they left without
meeting the hearty cooperation they ex-
pected.
"During the discussion OF the case by
Herbert, Cross and Frank, one of them
suggested that possibly the parties who
were abstracting these bonds were substi-
| tuting counterfeits for them, so as not to
alter the size of the packages. AS soon
as Cross and Frank left, the Secretary ap-
| pointed, as the public is aware, commit
tee of three from his Office to examine the
bonds, purchased and 1Gndestroyed to see
if they could find any Counterfeits among
them. This committee reported tbs. there
was not a single counterfeit bond amongthe
seventy millions examined. This exam
nation was to make the mil Is of the
people easy if report should get out that
the bonds purchased by Mr.. Boutwell, and
kept in the Treasury et'ldeStroyed were
being stolen and counterfeits substituted.
"This is the whole story IS related to
Mr.. Boutwell,, and whether he will take