Evening star. [volume] (Washington, D.C.) 1854-1972, 1871-10-07
TIE FIRST FRAUD ON THE UNITED
STATES TREASURY.
A Financial Irregularity" OF "the
coed old times"

How they Managed the Bond Bust.
ness Sixty Years AxO-FeFged Ger
tihcates Amounting 60 SAC, 600 or
Mora Father Temps his son. and
the SONS Testimony COnvicts the
Eatker-Nothing Like 10 since the
Revolutionary War.
The first fraud perpctrated on the Treasury
Of the United States, of which there is any
record, was in 1900 by clerk named Charles
Tomkins, in the cfiice of the Register, and by
means OF forgery. Tomkins a native and
resident Of Baltimore, and entered as book
keeper in the office OF the Register in $780, and
continued there until 1854, when he resigned
While occupying this position he had charge OF
the stocks generally, ami held possession OF the
public certificates signed in blank by Joseph
NoGrse, then Register of the Treasury. During
the absence of Mr. Nourse in the country, il
was usual for him TO leave these blanks signed
by him, to be filed up and used if necessary.
Tomkins generally filled up the blanks, which
were examined by some other person in the Of
fee, and ON the return of the Register that Of
hcer would make a cursory examination, more
as "A matter OF form than as precaution, hay-
ing the most unlimited confidence in the integ-
rity Of MIR. TOmkins, who was conspicuous for
his reputation asa
GOOD AND MORAL MAN.
On the 4th of August, 1890, Congress passed an
act creating loan OF tive millions OF dollars,
bearing per cent. interest, and redeemable at
the pleasure of the government. This loan was
negotiated principally by Mr.. Clement Biddle, a
noted tnancier OF the times, through the Penn
sylvania Bank, at Philadelphia. The loan was
redeemed from time to time, and the last of il
in 1911, and il was not until then that the dis
eovery Was made in the department OF r-demp-
lion that 81 900 more had been redeemed than
the act authorized. This discovery led to a
tedious and perplexing correspondence between
the Treasury Department and bank officers, and
finally il was developed that
THE SUSPICIOUS CERTIFICATE
was one which had been issued in $500 in the
name OF Samuel Spalding, of Philadelphia,
through Mr.. Biddle, of the loan bank, and from
the first book of margin ever used by the govern
m,nt, dating back TO 1871, and the one in use
when the seat OF government was removed from
Philadelphia TO this city.
AN INVESTIGATION
was ordered by Albert Gal attn, then Secretary
OF the Treasury, as TO the preparation of the
crime. and suspicious were fixed upon Mr.
Charles Tomkins, as shown in the following let
ter to Mr.. Biddle
TREASURY DEPARTMENT
Registers Office, August, 1911.
SIR: After a very minute exam nation of The
scrip certificates which were issued for the Five
Million per cent. loan, 1t is ascertained that
one thousand dollars more were issued than the
amount OF the scrip certificates In the course
OF this inquiry circumstance has been pre-
sented which has induced me to inquire of you
whether q certificate tor 81 600, dated october
seth, 1880, issued in your name, and upon which
MIR. Charles Tomkins, under a power OF attor-
ney from you, received the interest here from
10th June, 1899, to 31st December, 1900 was
upon your own account or whether, as he acted
here as your agent, il was any way on his &C
count The certificate was transferred to the
Bank of the Loan Office of Pennsylvania in
your name, on the eth January, 1901, and num-
bered 2C61. Very respectfully,
JOSEPH NoURsE, Reg. Treasury.
To Clement Biddle, Philadelphia.
Subsequent correspondence showed that Mr.
Biddle " rs surprised, and that he knew nothing
Of the felOnious transaction. Great precaution
was used by the officials in the matter, and no
publicity given to il, by order of the Secretary,
until the matter could be unravelled. A search
ing examination was entered upon at once, and
il was found that some
TWELVE BLANK CERTIFICATES HAD BEEN ABB
sTRACTED
fI0m the margin books, all signed in blank by
Joseph NOurse, as Register, the most OF them
being on the per cent. loan, authorized sub
sequent to the per cent loan. A letter of the
Secretary, enclosing Mr.. Bddes letter, was sent
to MIR. Nourse, requesting that he lay the papers
before the Controller, in order that he might de-
eide on the prOpriety OF institutng suit for the
recovery OF the money fraudulently obtained
Fears were entertained that further frauds might
be discovered, as the missing blanks were still
out. There was no doubt left but that Tomkins
who had removed TO Baltimore, and was living
there in genteel manner. was the guilty party,
and the fact, too, that he had son, r. sea-farins
man, who had suddenly become owner and mas-
ter Of vessel, and was doing a large mercan-
tile business, strengthened the belief that
oTBER CERTIFICATES HAD BEEN FORGED,
and on the fruits of which their prosperity was
based On the 10Th OF September, 1911, the
Register received for redemption from Messrs.
Oracle q Son, of New York, a certificate for
$4,000 deferred stock, which was at once re-
turned to them
MARKED "couNrERrEIr,"
and soon after another one for $50 900 of the
same character. These both purported to have
been drawn March 10th, 1906, in favor of George
Sheriff, of Bladensburg, Maryland, and bearing
subject to redemption by payments not exceed
ing in one year, on account both Of principal
and interest, the proportion of So upon hun
bred of the stock bearing interest Messrs.
Oracle & Son were shocked at this intelli-
gence, and in a letter to Mr.. Nourse stated
that they received il by the last ship from
England from their correspondents, Messrs.
Barring Brothers & Co., who purchased il in
London for their account I'm part of an order
sent them for American stocks, and that they
believed it to be the first instance of any fraud OF
the kind. They further desired the Register s.to
forward TO them some public document relative
70 ii, that they may transmit the same TO Lon
don TO recover back the money paid as the en-
dOrsement on the back might not be conclusive
evidence of the counterfeit" also stating that il
would not be safe 10 send the certificates until
they heard from Messrs. Barring in reply as, i'm
case OF their being lost, they would have nothing
to show. They also ask: :. Pray, does there such
person as George Sheriff reside at Bladens-
burg, and are there any other blank certificates
missing from the Treasury? We are fearful that
the fraud may have extended further than the
ones we have got; and will not the government
take notice of it and offer a reward for the dis
cONery OF the persons VINO have stolen the
blanks?" On this being made known to Mr.
Galatin. he ordered
THE ARREST OF ToNKINs, SR.
This was In October, ISL. Tomhins was then
in Philadelphia and his son was about starting
on voyage to Lisbon as master of his own shin
the ''Justiana," in which he had been cruising
to England and other countries. Ii was sus-
pected that
YOUNG TONKINs
was connected with his father in the negotiation
OF these certificates, which suspicion proved 10
he correct, as will be seen. AS stated. he was
about to leave the port OF New York for long
voyage, and after his arrest he was taken befor,
Judge Livingston, Of New York, to whom he
fatty denied all knowledge OF the forgery whei
charged with IL and was committed.
Abraham Joy, an intimate friend Of Captain
Tomkins, was also arrested ON board of the same
ship, and when they found themselves in limbo
ToMKINs, THE YOUNGER, MADE CONFESSION
to Judge Livingston, as follows: That his name
was James Tomkins, mariner by occupation.
and son of Charles Tomkins Of Baltimore, who
was for some years In the office of Joseph Nourse
as clerk; that he left the United States in AprI.
lS09, in the ship Wo0ddrop, Capt. Sims, bound
10 Liverpool, as steerage passenger, for the
purpose of bringing out his wife; that Abraham
Joy went with him as friend; that Joys real
name is Harrison, and he Ia q brother to his
(Tomkins) wife, to whom he, Tomkins was
married In Liverpool; that he (Tomkins) wac
present and signed his name Is witness to q
power Of attorney for transferring American