Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-09-14
From Washington,


THAT RU-KLUx INVESTIGATION.
WASHINGTON, ID. C., Sept, Ex-senator Pool
of North Caroliua and Representatives Buckley
and Beck, constituting the subcommittee OF the
kukluX investigating committee, met here to-
day to examine and digest the mass of the tcsti-
mOny furnished by the executive officers of the
southern states concerning their finances, taxa
ton, &c, in order to report to the full committee
OF twCny-One, which will meet here on the 2Ot1
inst Several governors have failed to furnish
the information requested; and the report upon
matter indicated will probably be incomplete.
CONCERNING iNsoLVENT BANKS.
The Encouragement has decided that the govs
crnmcnt has no right Of priority of payment as
against the private creditors of an ifsolVent
national bank for moneys which the bank holds
TO the credit Of the United States treasurer and
the United States disbursng officers, and reg
iSuy Of court, or either of them, Overland above
the amount realized from bonds held as security
for deposits lie has also decided, in connection
with this question, that the controller OF cur
rency has no authority, under law, to declare
dividend TO the private creditors OF national
bank before the claims of the United States Of
all kinds are first satisfied.
PUBLIC LANDS.
The commissioner of the general land Office
has issued instructions to the district land otli-
GERS at Menasha, Wisconsin. for the sale of two
townships of land heretofore reserved for the
Stockbridge and Munsec Indians. These lands,
situated in Shawano county. Wis, are prlncl-
pally valued for the timber will be sold orcaSh
and for not less than the appraised value.
DISHONEST PAYMAsTER.
Major John L. Hodge, deputy paymaster id
the army, is delaulter to the government to tic
amount $4,000 or 100000. year ago dr.
tectives discovered that his affairs were in Il
loose condition, his accounts being behind, etc,
and an investigation was ordered, but, for some
reason not known, never took place. On Thurs
day last, the paymaster general discovered, as
nR hon
of Major Hodge, and, by letter. requested him
to explain it. He still could not believe his
deputy dishonest, but expected he would be
able to make a satisfactory explanation. lie
failed TO do so, and Gen. Price then iutimatcd
his suspicious, and peremptorilv ordered him to
close his accounts by Monday last,
The next day Gen. Brce received a letter from
Hodge, containing full confession of his guilt,
and stating that he had been making fraudu-
lent returns and statements since 1866, and the
money thus obtained had been spent in gold
and stock gambling in New York. He mem
toned in his letter the name of one firm who
knew that the money he sent them for invest
mcnt belonged TO the government, and con-
cludcd by stating that he was ready TO turn
over all his property, both personal and real,
amounting to something like $4,000, to any
agent of the government authorized to receive
such an assignment. He expressed contrition
for his crime, and said he intended to return
the money he had taken, and impOred that he
DC as lenlently dealt with as possible.
lois suspected that other parties were involved
IN the dclalcati0ns Major Rochester has been
detailed to discharge the duties of the office va
Gated by the arrest of Major Hodge, who left
yesterday for Baltimore in charge of United
States officers, who were directed by the general
OF the army TO turn him over to the command.
ant at Fort Mcllenry, with directions to place
him in solitary confinement, with Il sentinel to
guard his cell. The accused has heretofore ena
loyed an excellent reputation, and at the pay
master generals Office was regarded not only as
thoroughly honest, but an accomplished scholar
and accountant.
Gen. Bricc, on Monday, placed the delaultng
paymasteT under close arrest, and yesterday
procured, by telegraph from Gen. Sherman an
order for his confinement in Fort Henry. The
accused who is about thirty-sX years OF age, is
native Of Philadelphia, and inherited most
of his property from his uncle and his
father, the latter formerly assistant secretary
OF the treasury, who died about three years ago
Ills mother is still living, and onefOf his sisters
is the wife of Admiral Rodgers, at present com
handing the China squadron. Ile.has wife
and four children, who are plunged into the
deepest grief by his misconduct He will be
tried by court martial, which will dou btless i'm
pose as penalty imprisonment and dismissal
from the service 1t can hardly be expected
that any portion of the amount of his delalca-
ton will be recovered, except perhaps a few
thousand dollars from the sale of his private
property. Major Hodge lived in eXtravagant
style, on a salary of about $500. Detectives,
both here and in New York, to day, severaly
endcavoring, on inquiry at the banks and else
where, to discover farther information.