Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1871-11-02
THE "BEATY SCOUTS" FRAUD.
More startling Developments from
washington How Claims Were
worked Through the Depart
menfs-Other 6wind1es Likely 60
be brought TO Light.

light another outrageous conspiracy te
defraud, and laid its hands on the offend
ing parties, one Of whom is Republi
can of heretofore high position, Ex
Congressman Stokes, of Tennessee.
His confederate in this city, George "
Powell clerk in the Second Auditor !
office, was arrested yesterday, and il
now in Jail unable to give bail in the
sum of $4,000. The order for the ar
rest of Stokes has been given, and as he
is on his way TO this city, he will proba'
bly, be taken into custody before to-
night. The fraud in question involves
nearly 100000, and is certainly moi
more and may be less. The audacity
and ingenuity with which it has been
perpetrated will be seen in the following
facts: In July, 1870, Representative
VIM b. Stokes, then a member Of the
House from Tennessee, introduced and
advocated both before the Committee on
Military Affairs and the House, the fol.
lowing joint resolution, which was passed
on the lst of the same month:
Whereas, Dsvid Beatty, Of Fentress
county, Tennessee, did, on the 25th day
January, 1862, organize company oi
independent scouts numbering one hun
dred and two men, including himself as
captain, and his first and second lieu
tenants; and,
Whereas, Said company was on contln'
uous duty, engaged in suppressing the
rebellion, from the date of its organiza-
ton until the LIST day of June, 1865,
serving under the orders Of the com
mander Of the Army of the Tennessee;
and,
Whereas, Said company was never le-
gally mustered into the service of the
United States by any properly authorized
mastering officer, and neither officers
nor privates of said company have ever
received any compensation for said ser
vices from the Government of the United
States; therefore, 4 ugL
Be it resolved, That the organization
set forth in the foregoing preamble be
and the same is hereby recognized as
part of the military force of the United
States engaged in suppressing the recent
rebellion, and the members thereof, on
making proof of actual service, declared
to be entitled to the same pay and pen
sions as though they had been regularly
mustered into the service Of the United
States as cavalry; provided that there
shall be filed in the War Department o
roll Of said company, which shall be
sworn to by the captain and two lieu
tenants of said company; and provided
further, that each soldier, upon applying
for payment under this act, shall be re-
quired to make oath as to the length Of
his service in said company.
Mr.. Stokes was very active in pressing
| this motion, and was befriended in it,
honestly of course-by his colleague, Mr.
Maynard, and dishonesty by Powell,
the clerk, now under arrest; and Con-
gress, in the haste Of the closing days Of
a long session, and in response to the
promptings Of patriotic ardor, yielded to
Mr.. Stokes persistency and passed the
above act, which, when once statute,
bore down all the objections and silenced
all the suspicious Of the War Depart
ment. The work of presenting the roll
of the company was next in order, and
Stokes devoted himself to it. How he
did il is the result of the investigation
set on foot by Secretary Belknap, who,
in the belief that the scheme covered Q
fraud, some months since, sent dis
Greet and experienced army officer into
Tennessee, who dragged the whole thing
into light. 1t was discovered that thi
company was never composed of more
than twenty-five or thirty men, and thai
all the service they ever performed was
an occasional raid on the rebels Of ad
Joining counties. They were Union guer'
rillas, summoned for their predatory ex-
peditions at the blast of horn, and dis
persing at pleasure. Beatty was Captain,
and one Of his sons was First Lieu
tenant. .a
Some may have served year some
) longer, some less, and some certainly
only month or two. But 1t was never
theless one of the most remarkable COM
panies that was ever raised, for when
Stokes got up the roll for the War De.
partment there was the maximdm num-
ber Of men to a company thereon, just
one hundred and two, and strange to say
there had been no desertions, no dis
charges from disability, but one death,
and they had all served through TO the
end Of the war with marvellous fidelity,
over three years, 80 that each man get
ting pay and bounty was entitled to a
little over $1,000. Now the law provided
that the men should each swear as to
the length of his service Blanks for
the proper presentation of such evidence
are furnished by the Treasury Depart
ment. Stokes and his confederates
managed that in this way: They got the
parties to swear that they served, leaving
the time blank. When any one with a
compunction Of conscience hesitated he
was informed that the law fixed the term
of service, and he had nothing TO do
with that. In this way not only the men
>who did serve under Captain Beatty, but
many who did not, were put on the roll.
Confederate soldiers, Union soldiers
who had served in other regiments, per
sons from other States removed TO Ten.
nessee since the war, and fictitious
names, were found by the officers Of the
War Department 10 have been put on
the roll TO swell it TO the number Of lO2
In due course Of time each mans
account was stated in the Second Aud
itor Office, and he was informed Of the
fact by blue letter, that is a letter
written on blue paper, addressed person
I ally to the soldier at his postoffice, resi-
dence, in order that he may have perfect
knowledge Of what is due him, and noi
be defrauded by claim agents. Here il
where Powell is supposed to have done
his part. The letters never reached
their destination. II required, further
! a power of attorney 10 receive the monel
! on the name Of the soldiers Stokes re
ceived the greater portion Of the none,
5 in power Of attorney, and the suspicion
: is that there is forgery in the case also
In this way not only the Governmen
1 was swindled, but also the men who wer
s actually in service, and who, by stretch
T ing the terms of the joint resolution
might be entitled TO something. In n
b case has it been found that any man re
; ceived the amount drawn in his name
v but some Of them, knowing that some
n thing was due, have been paid in th
!, neighborhood Of $4O0 each.
n Latterly there has been troubl
e among the compensators: They hav
l.