The New York herald., 1872-09-22
TIE sUB.TREAsURY DEFALCATION

Ono Man Arrested as Wftncss-Hc
knows How johnson Speculated-The
Peculator,s Politics--Thc Detectives Ac-
lively Engaged.
There was hardly anything new regarding the
tnfalcation OF the Internal Revenue stamp clerk,
James E. Johnson Of the Sub-Treasury yesterday.
All the facts have been brought out against the
man and the history OF his peccadoes Is complete.
The detectives still in hot pursuit. but 1t Is their
opinion that he has escaped to Europe, where,
however they say it will be just as easy to capture
him as it would be In neighbOring State They are
certainly on his track and in few days Will be able
to tell great deal more than is made public at
present. They arrested a man named Matte Gro
min Yesterday, who is said to possess some knowl-
edge of JOhnsOn's
MODUs oPERANDI,
and they took him before United States Commits
sioner Davenport, who tried him as an impartial
witness in the awaiting the appearance OF the
principal. Cronin, 1t is stated, was
ASSOCIATED WITH JOHNSON
in several Of his operations, and unquestiOnably
knew where the funds came from with which he
operated. He will be called upon to testify as to
what he knew Of JOhns0n's operations, and, no
doubt, his testimony will be very interesting The
d>tectives hope that within the next TWO or three
Says they will be able to make much more i'm.
pOrtant capture which will not only reflect credit
upon themselves, but will help materially towards
clearing up the case.
the ratter Yesterday. His partner states that the
prevalent opinion is that Johnson has escaped; but
that in spite OF this the case will turn out much
better than there Is at present reason to expect.
No reward has been offered for the capture OF john
son, nor will there be. 1t is now a question OF
pride with them whether they will succeed or not
and though very hard case, they are working
with great energy.
the firms with which Johnson transacted business.
II Is openly said that they
MUST HAVE KNOWN
that the money with which lie specuated was
stolen from the Office. 1t Is alleged by many promi
nent inanciers that the brokers with whom John
son entrusted his speculatiOns knew ne had only
salary OF 800 per annum, and that he could not
possibly speculate upon this 1t is unquestionable
that the general talk ia very un avorable to the
brokers with whom he did business.
General Hilh0use refuses to state anything more
to the press. He has as yet no opinion he says as
to whether he is liable not for his clerks delaca
tion This fact too generally known, however to
need the Generals confirmation. The lnternai Rev.
enue law has o special clause, which says that
every Sub-Treasurer OF the United states shall be
RESPONSIBLE FOR EVERY DEFICIT
OF his clerks. This Is, in fact, why bonds are In
sisted on as a condition OF fulfilling the duty ind
Gated to them.
OF the case Is gradually dying out, ana again the
street is settling down to its accustomed quiet.
some attempt has been made to give the dealca-
ton political complexion. There seems to be no
reason for this. Johnson was democrat and was
appointed under democratic President, so that
there can be no cause for Identifying the republl
can authorities with his defalcation.