The New York herald., 1871-09-15

counts and that owe the frishtfu Of about
during the last few years stock going deeper
70 and %
oaSns s Ss f p 0 had Thought ago
better In returning here to, deliver myself up
for The 49, ass pcs
on you and the advantage have taken Of the special POSI-
1sy against tie
hoping always 70 los; and conceal my
really s" Tss o 1svr s
s
any s pert have as small seton .gan,.
ssos osS tsss S Ia
Of what have lost expect TO take the full punishment
sss w II @
na
ss % my the ACCOUNTS
with one house there whose subject
lost WITH hem which they know was public money, but they
II have been trying s9 make my mind .hl.
% cn & for ia aAy s ns not
Ss1s Ss.. to ssS
from you or the authorities T. that II possible some small
cSnsnns my NY PRESENT @ s ou
S tine hands ~ q ynO al Of
ny IN
fear viii 20 away now .A' IHsD9%RD Ho6as
| TOTAL AMOUNT OF THE DEFALCArIoN.
Paymaster General Brice says this morning that
the total amount OF Hodges defacatlon Is ascer.
taned to be $47l,ooo and that 1t will appear upon
investigation that the Treasury Department is re-
sponsbe for the failure of the to discover
the deialcatiOn sooner General Brice also denies
the report that hodge, after suspicion had first been
attached to him, was allowed to draw any checks
except such were necessary TO transfer balances
to the proper officers.
PARTICULARS OF THE CRIME.
The particulars in the of Major Hodge, ascer-
tanned in conversation with General Brce this morn
ing, are as follows:-
on the 18th inst. the Paymaster General reported
defalcation and emDezzlement Of large sum Of the
Rn9c Sy money pertaining to the department by
as & css semed 70 msn sqGa
which Major Hodge, then in arrest BY orders Of the
Paymaster General, wa was Immediately transferred as
time in close confinement The Paymaster General
made concise statement for the Information OF the
rived from The confession OF the delinquent pay.
master and confirmed BY an examination or his
| stances had come to hight in reference TO a
| single official transaction Of Major Hodge, In.
aroused susp con OF fraud, and which, on being in.
terrogated he failed to explain satisfactorily.
order arresting his functions IN ihe Pay Depart
| ment relieving him from duty and requiring him to
close and render his accounts and turn over his
designated temporary succ cessOr Major Rochester,
Paymaster. all the public money for which he was
accountable. After the lapse OF reasonable time
1t ascertained that he had compiled In part only
with the order, when on Saturday evening, the 9Th
inst, he was reminded OF the necessity 0i its inl-
mediate accomplishment. On Sunday, the 10th
inst, he addressed letter. which the PaYmaster Gen.
eral received at his Office Monday morning the Iith
iDst making full confession OF his inability to close
his accounts and announcing himself as a deraulter
In the startling amount OF $450000, lost during the
last few years in stock speculations. He admitted
the systematic deceit long successfully practised by
him to cover up his deficit through false ana fraud
ulent official returns, statements and accounts.
Major lodge mad teen employed for years on
special service In NJ the Paymaster Generals Olce,
whom the highest confidence could be reposed.
Paynaster General, Colonel Andrews, deceased,
who, Oh General Brces relieving him OF the charge
mended Major Hodge TO General Brice In unquali-
fed terms for his capacity, reliability and peculiar
lnsly continued by General Brice in the same
branch, while, from time to ttme other various
Were most ana
by him; and so II continued down to the events Of
MAJOR Hodges functions required, mucn OF the
time the disbursement OF large sums OF money, and,
as a consequence. ne was kept supplied, through
official dlsbursing account His disbursements
during the past six years. since the war, have
or $29 371, $50. For the payment Of Treasury ceria
Gates for bounty alone they, for considerable
month. The large disbursements with the
necessary credits, have afforded hun the
false entries and certificates no has so long sue.
ceeded IN shielding from discovery or even breath
OF suspicion. The first and TO the Paymaster Gen.
eral the most important, inquiry suggested, is how
could the frauds be perpeuated and continued
through succession s Of years without knowledge
the Paymaster General office through his accounts
and statements That confidence was felt not
only by General Brice, but as well and as fully by all
c0ncerned-by the Officers, his ASSISTANTS, by the
chief bookkecper OF the department and by the
relations. No occasion OF dlstrusJ or suspicion
arose to lead to testing OF his condition and the
discovery Of his fraudulent accounts, false anu
THE TREASURY DEPARTMENT AT FAULT.
failure TO detect his Crimes in teir very ncepto1 ~
and cannot as the Paymaster contends, be charged
to any Immediate laches IN that ONCE. The ac
counts and statements rendered by paymasters to
that Office do no. prove their own accuracy to the
real amount OF their deposit balances. That can
only be arrived at by comparison OF the statements
by their respective deposit accounts In the various
repositories Without direct information from the
depository that office could have no means OF know
ing the accuracy OF paymaster's certified balance
IN that depository. 10 remedy this and guard care
turns Of paymasiers in May, 1865 the Secretary OF
War; after conferrng with the Secretary Of the rrea
sury on the subject Instructed the Paymaster Gen
eral to issue circular orders 10 all paymasters TO
forward to the Treasury OF the United states direct
at a. IN the end Of eacn , week week statement OF
plan was, that as all the repositories In the country
were required TO make weekly statements 10 the
the depositors disbursing officers and the cre0it to
each q comparison OF those weekly statements
would snow any material discrepancy between de-
positors and paymasters, and when any such was
found Of course it necessarily became the duty Of
for that duty to notify the the Paymaser GensIai Of
the fact and n any paymaster neglected to forward
his monthly statement at all, the Paymaster Gen.
eral could only know the fact by notice from the
Treasurer The Treasurer OF the United States, In
letter to the Paymaster General, dated May o. 1866
after previous conversation on the subject, wrote
In these wOrdS:-
If instructions should be issued from your Office directing
all paymasters 70 report TO this oDce the balances
70 their credit nj the close Of each designating the
place OF such deposit think the present system might be
made 10 work safely.
The Paymaster General ND that very day issue the
circular In pursuance OF the Secretary Of Wars
orders, and IN compliance with the Treasurers sug
gestion. That circular has been ever since and
Is now In force. 1t provides for weekly deposit
IN lin ono Moo on.S