The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1871-09-23
Uncle Sam nuIcted to the Tune
OF $5O0,OOO.
Major ,. L. Hodges. Quartermaster u.
8. A., I'm EfmbO-HeRviestD DefaIcatiOn
Ever Made Against the Governments.

Major ,. L. Hodges. Quartermaster u.
.. "a, I'm LimbO-HeRviest DefaicattOn
Ever Made Against the Government.
WASHINGTON, September Major j. L.
Hodges. United States quartermaster. was
arrested here yesterday charged with being
a defauter to the government to the amount
of half million dollars. The exact sum
cannot be ascertaiued. but the treasury off
cals say that it is the heaviest defalcation
ever made against the government. The
agents of the department have been to all
the banks here to find out if Hodges had any
money on deposit. 1t is believed that Hodg-
es lost this vast amount of money by specu-
lating in Wall street. The matter creates
much excitement in treasury and army cir
cles.
SECOND DISPATCH.
Major John Hodges, the defaulting pay
master, was arrested here last evening and
sent to Fort M'Henry, with directions to the
commandment to place him in solitary con-
finemept with sentinel to guard his cell.
Major Hodges is a wel-citzen of Washing
ton. and is native of Pennsy ylVania, from
which state he entered as a volunteer in the
army in 1871. He was appointed to the
regular army with the rank of major in Jan
uary, 1867. He has heretofore enjoyed an
excellent reputation, and at the paymaster
generals Office was regarded as thoroughly
honest gentleman, aud an accomplished
scholar and accountant On account of his
extraordinary qualifications the paymaster
general in 1863 detained him for duty in his
office, employing him in adjusting the irreg
ular accounts of other paymasters and on
special service until two years since when he
was assigned as paymaster Of bounty certifi-
| cafes Of the second auditors Office. This
was highly responsible position, the pay
| ments sometimes amounting 10 $500 600 per
month. The paymaster general asserts that
he placed the most implicit confidence in his
integrity. On Thursday last the paymaster
general discovered erroneous charges in the
returns of Major Hodges. and by letter re-
quested him to explain it. This be failed to
do, when General Brice peremptorily ordered
him to close his accounts on Monday last.
Next day Sunday Gen. Brice received a
letter from Hodges containing full confess
sion of his guilt, and stating that he had
been making fraudulent returns and state
ments since 1866, and that the money thus
obtained had been spent in gold stock and
gam bling in New York. He mentioned III
the letter the name of one firm who knew
that the money he sent them for investment
belonged to the government, and concluded
by stating that he was ready to turn over all
his property. personal aud real. amounting
to something like $4,000. He expressed
contrition for the crime, and implored to be
| leniently dealt with. Hodges father was
formerly assistant secretary of the treasury.
The defaulter is nephew of Prof. Hodges.
of Princeton, New Jersey. There are several
parties here who knew of Hodges enormous
Wall street specuations two years since, but
thinking it was all right they made no men>
tion of the fact. He has been known to lose
from 500 900 to $l5O,OOO per day. The
Erening Star places the defalcation at $500.
900, but is believed by the officials to exceed
a million.