Evening star. [volume] (Washington, D.C.) 1854-1972, 1871-12-08
ANOTHER FRAUD on TIE TREASURY.
$4,000 of Government Funds kb-
sfracfed
stock Speculation az the Bottom OF ia.

The investigation into the alleged deialcaton
Of Francis A. Marden, chief of the division OF
accounts i'm the Office OF Treasurer Spinner-an
account OF which was published in The STAR of
yesterday-revealed another defalcation, OF a
much larger sum, which was traced 10 Seth
johnson, interest teller in the cash room. IL was
discovered during the investigation that he had
distracted fifty thousand dollars Of the public
money. johnson has been in the department
about eight years, and was one OF the most
trusted clerks in the Treasurer's bureau. He is
a native of New York, and before coming To
washington was employed BY Gen. Spinner in
ms bank. Some two years ago Gen. Spinner
mad his suspicious aroused upon learning that
johnson had imported from Europe
TWO GOLD WATCHES
at cost of five hundred dollars each. The
matter was investigated, but il was ascertained
that he had traded several old watches, and
represented IT, at he had received some money
nom his father, hence no Importance was at
tached to the matter. Again, il was represented
10 General Spinner that johnson was living
beyond his income, but, upon inquiry, nothing
definite could be ascertained. and, as his ac-
counts appeared TO be correct upon examination.
nothing more was thought of these reports IL
new appears that johnson made his accounts
appear correct by
FORGED ENTRIES uFoY HIS ROCKS
The lack OF force in the TreaSurers office rem
dered 1t necessary in his instance that he should
keep his own books as well as handle the money,
hence II was an easy matter for him to make en-
IL appears that several years ago johnson
commenced using government funds in
sPBCCLATIoNS
here and in New York. Recently he opened an
account with FAINT s Co., OF this city, alleging
that wealthy friend of his, T.. l.. Sherman,
patent lawyer. Of New York city, had RENTED
him money TO speculate with in stocks. I'm the
month OF October, not long after the account
was opened, suspicion was aroused in the minds
of FAINT, Washington Il Co. that something was
wrong. They promptly notified MIR. johnson
re m al i'm rad md
disturbed until they could see Mr.. Sherman and
satisfy themselves that il was Sherman's money.
Mr.; sherman wrote letter to said firm recoS.
nHmg the account as his. FAINT & Co. were still
not satisfied, and on pushing their inquire. still
further, johnson finally confessed that it was
GOVERNMENT MONEY THAT HE WAS USING,
and that Sherman knew the fact for several
years: and further, that the embezZlement COM
nenced many years ago. The moment johnson
admitted to FAINT, Washington & Co. MONDAY
December 4, 1S11.) that he was using govern
ment funds that firm promptly made known the
fact TO Gen. Spinner. The amount to his credit
with FAINT, " ashingtOn & Co. is about SIl 900.
TO cover his previous defalcations he distracted
the sum OF $4,000 on the 18th OF May last, but
IT has not yet been ascertained from what ac-
count he took the money. The officials are now
examining into that; bat as the examination
involves some correspondence, it will probably
be day or two before it is ascertained from
what account he took it. johnson
MARRIED A new YORK LADY
some five years ago, and resides on \ street.
where he keeps house, and has his wife's parents
reside with him. He is now very i'll, and cannot
be tried, as his condition s too critical TO per-
mitOf his removal. lie has confessed his crime.
however, and the balance OF $1,000 in bank to
his credit will he taken possession of by the gov.
eIDment. 1t is not positively known il there
was any COLLISION between johnson and Marden,
whose detalcation We published yesterday but
il seems to be the opinion that the former had
some knowledge Of the fraudulent transactions
H the latter, but Marden had no knowledge of
the frauds of johnson. The total defslcation of
the two to-day IL believed to be
klXTY-Two THOUSAND DOLLARS
SJO,oO0 for johnson, and S12.0n9 for Marden-
but the Sli 600 in bank TO Johnson's credit re-
duces the total amount TO S5l 900.
GENERAL SPINNER
considers himself in honor bound to make good
the amounts distracted from his Office. and did
Immediately replace the 81 800 distracted by
Edwins few years since. Congress, however,
siders il his obligation now to make good the
defalcation OF both Marden and johnson but
Congress will no doubt relieve him.
The dcfalcatiOns which have occurred in the
Trcasurer's office since Gen. Spinner has had
charge were: First, that of Charles H. Cornwell
IN December, 1855, amounting TO $4,000, but i'm
this case all the money was recovered. Second,
that of Edwins, which occurred a few years ago.
alluded to above, and now these embeZ Elements
of Marden and johnson.
Gen. Spinner had no knowledge whatever of the
tact that johnson was Specializing in stocks; had
such information come to him he weuld imme-
diately have dismissed him from Office. 1t is re-
ported to-day that Sherman has been arrested
in New York as an accomplice of Johnson's, at
any rate an order for his arrest has gone out.