Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1871-09-28
Serious DcfnlCatiOns.

There was intense excitement in Wash
iugton occasioned by the report, which
subsequently appeared to be correct,
that Col Hodges, Paymoster of the
Regular Army, was guilty OF defalca'
ton to the Government, extending
back to 1864, amounting TO n half
million of dollars Stock speculations,
gold gambling, and real estate trans0c-
tions, in which he had been unfortunate,
are given as the leading causes of the
disaster Col Hodges was, conveyed,
under strict guard, by order of General
Sherman, to Fort McHenry, Baltimore,
where he will be held until a court-mar-
tial can be organized for his trial.
Gen. Brice, Paymaster-general, re-
ceived from Col. Hodges confession of
his crime, with statement that he had
lost the amount during the last few years
in stock speculations. The defaulter
has been favorite with Government
officers, where he has always been re-
garded as above suspicion, and he has
always had what is called the "creNm"
of the service. He has been retained in
Washington for several years, never
having been subjected to the trials and
embarrassment of field service, and has
always had the easiest and least respon-
sible service in the Paymaster's depart
ment. Col. Hodges in his letter to Gen.
Brice admits systematic deceit, run
ming back several years tocover up false
and fraudulent returns, dishonest state
ments, and inaccurate accounts. His
disbursements for six years past amount
to 500, 291, 450. For the payment OF
Treasury certificates for bounty alone,
the amount ranged from $4,000 to
$500, 900 per month
1t has now been discovered that John
W. Norton, ex-assistant postmaster Of
New York city, and more recently the
superintendent of the money order de-
partment of the New York post-oflice, has
been guilty of populations, extending
over long series Of years, to the amount
of $4,000. The discovery was made
about a month ago, but the post-office
authorities have been ever since engaged
in getting at the real facts of the case.
John w. Norton, the defauter, is now
between forty-fve and fifty years of age
and was appointed by the late James
Kelly, then postmaster of New York, to
the responsible position of assistant post
master. In 1864, when the Post-otlice
money order system went into operation,
Mr.. Norton was given the superinten-
dence of that department in the post
office. The business of the money-order
department had by this time grown to
immense proportions; it received and
paid over every day about as much money
as any of the banks in the city, and its
transactions every year amounted to
about six million dollars. Every dollar
of these immense sums was in the com
plete control of Mr.. Norton. The manu-
al labor alone of signing the drafts and
receipts became so great that the Post
master Mr.. Norton was instructed to
sign the name of General Jones, and he
drew and disbursed the money needed in
his department. 1t was shown last month";
however, that Norton's accounts, though
they balanced with themselves most adj
mirably, did not compare so well with
the books of the Assistant Sub Treasury,
which is in effect the bank of deposit of
the New York Post-office, and upon in
vestigation the defalcation was discover
ed. The amount will be fully recovered
by the Government.