The New York herald., 1872-09-21
TnE SUD-TREASURY DERALCATION
Further Facts About the Robbery by the
Internal Revenue Stamp Clerk.
General HillhouSe Thinks II q Legal Question
Whether lie is Responsible.
Nothing Yet Known Of tho whereabouts Of tho
Defaulter-Johnson an Old Stock specula-
tm-How the Money Went-A
Long Series Of Peculations.

INC TOOOery Dy Jdmeb Es JOuuSon, thc WIN ~
the Internal Revenue Stamp Department OF the
Sub-Treasury, the main topic OF conversation
in Wall street yesterday. The full erp0se, pub
lished by the HERALD, was read with great interest
by every financial man on the street, and many
were the comments made The statement Of Gen.
eraI Hillhouse, the Assistant Treasurer, was
scanned with peculiar interest," he being the prnci
pal party interested in the transaction. The ques
ti0n whether he would suffer for the dishonesty of
his clerk excited great deal OF discussion. With
the view OF ascertaning the exact responsibility OF
General Hllhouse in the matter, the reporter OF the
HERALD called upon him yesterday afternoon. He
was received with the same courtesy as on the
previous day, though General Hillhouse appeared
to be In no very enviabe frame of mind.
Is THE ASSISTANT TREASURER RESPONSIBLE?
81 have called, Gcneral,n said the reporter, "to
ascertain whether the statements which have been
made that you or your bondsmen are responsible
for the defalcation Of Johnson are true ?"
'That," answered the General, 'is very nice
rolnt OF law, and 1t is legal question whether
am responsible or not / might tell you was or
1 was not but 1t would amount to nothing"
"Yet, General" said the reporter rs blandly as
he was able, 'in question which Affects you 80
vitally you must have an opinion g'
81 might have an opinion" re,oined the Assist
ant Treasurer, "but what would it be to give it
when any lawyer knows more about 1t than do ?"
''rIOm tHe very laCC CnaI you 10 NOT give al
opinion" insisted the reporter, 'the public will
probably infer that you hold that you arc not re-
sponsible, especially as you seem inclined 10 make
1t question OF law.n
.The public is at liberty to infer what it peases"
reiterated the General, somewhat warmly. "FOr
myself am not really able to make any positive
statement about my liability in the matter"
sIs there anything new in the Johnson matter ?"
''Nothing that know Of Things remain
changed since yesterday"
up" '''''
.'Oh, yes.n n
NO FURTHER FRAUDS DISCOVERED
The reporter retired and went In quest OF Mr..
Leopold, the head Of the examining corps. This his
Building. The reporter buttonhoied him.
"po you know anything new in the deialcaton
MIR. LEIPoLD-No. have been at work search
ing up the accounts and find further deficit.
REpoRTER-It remains. then, at $1S5,0ooP
nave finished my examination in this matter. and
lean safely say nothing further is wrong. My as:
the cash in the Treasury, and we find that every
thing with this one exception Is correct.
The reporter was about to leave when Mr.. Lei
pold buttonholed him IN turn.
Gin your report Of the interview with me ycstcr
day." he said, ''yOu made one mistake. You made
me state that it was first discovered the frauds.
This ts not so. When the 1rst examination was
Muse Was o satisfied a a
examination. This was done by Mr.. White the
out the sums which were missing and came on
Just In time to make third examination, which
proved that they were correct. do not wish to
claim any credit that belongs TO other parties in the
and asked for Johnson, which little incident first
created suspicion All can claim is to have veri-
fed what others had begun"
WHAT THE DETECTIVES ARE DOING.
The HERALD reporter assured Mr.. LeipOld tho
correction should be made, about which he appeared
to be very anxious. Captain Sampson, the detec-
wa asve you a' Anything s new Captain in the John
son matterY" asked the reporter. s.r
Captain sAMPsoN-Not much just now that am
hcfnO
smoothly, and can say this much that an immense
deal Of headway has been made since Yesterday in
the case. All the avenues have been guarded. 1t
ls only just to say that the government has afforded
al the the hepin Its power which is very important to
KzroRTER-nayc you any idea where Johnson is
ut present located
answer. have very strong reasons to believe he
is In the country. and then, again, ! have good
ble In the present state OF affairs, to say which is
the case. All can say is that we are working
40 think have very good Chance
succeed. Nothing will be left und0ne to discover
the criminal, assure you.
about matters around here. Tell me what Is the
responsibility OF General Hllhouse in this defalca-
ton. Is he responsible for Johnson's robbery
:" GENERAL nILLH0usE Is RESPONSIBLE.
'Csp tain SAMPsoN-0f course he is, as a question
men n" ara responsible to this amount. For every
Sssss Ssss: sas 4ss what na
the action Of john,on 80 peculiarly scoan; ,Sc
dlelly Yes my dear boy snStSng snSts how vsre the
wanted to make extra enor. to catch the ne
thief It would be tho knowledge OF this inss :.
anG IN s sd MSo%s TSa SnnsGn
guilty OF such a crime. have no sympathy with
sr hdys sc deal
the entire system OF our banks round here is
G too %pSn trust II human nature
some SOM g aay the temptation comes and he makes on
WHAT GENERAL nrLHorsE SAYS SUB ROSA.
Naturally the Johnson robbery has thrown
gloom over the entire force Of clerks in the Sub
that one Of their number should have turned out
go bad. 1t may be interesting to state however,
that among financial men In Wall street it IS the
public department than those in the Sub-Treasury
building, This is the FIRST instance on record Of
one OF their number proving unaithiul to his trust
Yesterday a gentleman called upon General Hill
clerks make you distrust the restt"
mo-" answered the General, ~ have hundred
Should % be one black sheep in the number does Dot
make me esteem the others any less. No one can
be more sorry than ! am about about this lla alar; It,, !
dishonesty. But trust the others none the less.
SYMPATHY FoR GENERAL nILLnoUsE.
Among the brokers and bankers In the street
general sympathy has been expressed for the false
position in which the Assistant Treasurer has been
placed by the Johnson defalcatiOn. He Is very
popular among financial men, and since his tenure
OF oice he has made many friends by his constant
urbanity TO oil c0mers. That hc should thus be
made responsible for the large sum Of $lsj,0C0
through the dishonesty Of another Is the subject Of
universal regret. II is said by some that this de-
ialcaton will seriously compromise his position, as
IN case the money In not recovered his bOndsmen
Will DC made immediately responsible for the
amount
HOW JOHNSON DISPOSED OF TIE MONEY
II is renoered certain hy revelations which were
made yesterday that Johnson was very much given
to stock speculations. lie has been O spcculator
ever since lie has occupied his present postion.
IL may seem strange that this fact should never
have come 10 the knowledge OF his superors but 1t
appears he worked very quietly, and none hut Ills
most intimate friends knew this propensity OF lis
The HERALD reporter had an interview with pay
ing teller of one OF our most prominent banks yes