Centre Hall reporter. [volume] (Centre Hall, Pa.) 1868-1871, 1871-09-29

There was intense excitement In WaMll-
inRton occaRioned by the report, which
subsequently appeared to be eorrech
that Col. Hodges, PaymaAter OK the
Regular Army, was guilty Of ddaica'
tion 10 the Government e1tenaing
back 10 1864, amounting 20 haf
million Of dollars. Stock specuintions'
gold gambling, and real estate tranAac-
tons, in which he had been unfortunate,
are given Aa the leading causes OF the
disaster. Col. Hodges was, conveyed
under strict guard, by order OF General
Sherman, 10 Fort McHenry, Baltimore,
where he will be held until court-mar-
tial can be organized for his trial
Gen. Brioe, payma6ter-general, re-
ceived from Col. Hodges a confession OF
his crime, with statement that he had
lost the amount during the last few years
in stock specnlations. Tho deianlteF
has been favorite with Government
officers, where he has always been re-
Rarded ns above suspicion, and he has
always had what In called the "cream"
Of the service. He has been retained in
Washington for several years, never
having been subjected 10 the trials and
embarrassments Of field service, aud has
always had the easiest and least respon-
sible service In the paymaster'a depart
ment Col Hodges in his letter 70 Gen.
Briee admits n systematic deceit, run
ming back several years 30 cover mp false
and fraudulent returns, dishonest state
meats, aud inaccurate accounts, HIS
disbursements for RiK years past amount
20 S29, ,29l, 400. For the payment OF
Treasury certificates for bounty alone,
the amount ranged from S400, 600 10
$500, 900 per month.
Ii has now been discovered that John
W. Norton, ex-asSistant postmaster Of
New York city, and more recenly the
superintendent Of the money order de-
partment of the New York post-otice, has
been guilty of peculations, extending
over long series Of years, 10 the amount
OF $4,000. The discovery was made
about a month ago, but the post-otice
authorities have been ever since engaged
in getting at the real facts Of the case.
John w Norton, the defanltef. is now
between forty-fve aud fifty years Of age,
and was appointed by the late james
Kelly, then postmaster of New York, b
the responsible position Of assistant post
master. In l864, when the Post-ofllee
money order system went into operation.
Mr.. Norton was given the Euperinten-
dence OF that department in the post
Office. The business Of the money-order
department had by this time grown to
immense proportions; il received and
paid over every day about as much money
as any of the banks in the city, and iis
transactions every year amounted 70
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 90 great that the Post
master Mr.. Norton was instructed 30
sign the name OF General Jones, and he
drew and disbnrsed the money needed in
his department. II was shown last month.
however, that Norton's accounts, though
they balanced with themselves most Ad-
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-ofiice, and upon in
vcStigation the defalcation was discover
ed The amount viii be fully recovered
by the Government