New-York tribune., 1872-07-31
EPISODES OF A DEFAULTER's LIFE.

| To the RAZOR Of The Tribune.
SIR: | notice in the list of Government de-
faulers printed in THE TRIBUNE the name of John X.
Phillips (msprined John A. PhilDps). Doubtless you
are not aware that the fatherinaw Of the sometime
Acting President OF the United states-Gen. Horace
Porteris the gentleman who is indirectly responsible
for this defalcation, amounting to $4,000, instead OF
$4,000 as you state; and that Notwithstanding over two
years have elapsed since the money was stolen by Ph-
lips, who bis deputy, no attempt has been made at
Washington to collect from him. The facts In the case
are these: Phillips TO this city, an adventurous
Englishman from the Barbados, in 1865, and easily
managed by his ready address TO secure place in the
Revenue service. On President Grants Inauguration
John McIIarg was appointed Collector Of the old Fifth
District of this city, and Phillips was retained by him
as Deputy Collector. Mr. McHarg hardly installed
in his Office before Phillips began to appropriate checks
received by him from tobacconsts in payment for
stamped tin-fo tobaccO-wrappers This practice he
kept up without moestatiOn until he fed from the
country in March, 1870. Then Mr.. McHaTg was left la
BILE the for the amount stolen as the law
held him responsible for the acts Of his subordinate
No suit however, for the recovery OF the money mas
ever been brought against Mr. McIIarg or his bonds
men; and nothing has been done TO hold them account
able IN any way, although the Government authorities
have not extended the same immunity 10 otner Col
lectors placed under similar circumstances.
Why is this Ia 1t because Mr.. McHarg is Gen.
Porter's fatherinlaw, and because Thomas Murphy Is
one of his bondsmen There be other real rea-
SOU Lewis j. Kirke, who Collector previous %
McHarg. had to pay the Revenue Department about
S73OOO which had been stolen by his deputy Strange
to say the deputys name John h. Phillips, and,
stranger still, McHarg informed Of the transaction
and warned against Phillips when he took Mr. Kirke ;
place, but did not make any change in his Office.
These are not all the strange features OF this case
On the very day that McHarg returned from Washing
ton where he had been summoned in regard to Phil
ips's defalcatons he was visited at his house by the
latter who decamped within three hours for Liverpool
by the Federal Courts and although he is said TO have
returned this country and although respectable per
sons claim nim here, lie has not been ar
rested His frauds reported TO have been discoy-
cred through certain incorrect official reports and his
OF documents. The false reports made
monthly took them eight months TO hnd out that
| there was anything wrong. Perhaps there rs more
truth poetry III the hints OF Revenue men To the
effect tnat defauters sometimes retained in office
after they were found in the hope that some lucky
speculation would Defall them aud enable them To make
up for their defacatiOns.
An inspection OF the official records at Washington
Will show that Mr. McHargs appointment as Collector
was obtained solely the recommendation OF his son
in-law He lived in Albany, and comparatively un-
known here. He not acquainted with the Revenue
service and was here nearly three months before he
, could obtain any bOndsmen He had almost despaired
OF being able to qualify and take his place; ana while
in this suspense Gen. Porter hastened 10 this city 10
help him of his troubles. Thomas Murphy was
visited, and bondsmen soon forthcoming These
facts eau be easily verified NJ
Nelc- York, July 20, 1872.