The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-27
THE PIT7SBURG POSTMASTER.
Astounding Discoveries of Fraud at
the Pittsburg Post Office.
Stewart Arrested and Confesscs to Being
Short $4,000.
Prompt Action Of General
CreSweu.

People In this city were startled this afternoon
by the announcement or the arrest OF John II.
Stewart Postmaster OF Pittsburg, on q charge OF
embezzlement to the extent OF $33, 900. The high
position occupied by the man, his activity In po-
ntical and public matters generally. his worth to
the Fire Department as one OF It's Commissioners
and his many personal good traits caused the an
nouncement to be received with utter dismay by
his friends and by the public with genuine as
constituent.
FIRST COMPLAINTS
Some time since there were numerous com.
plants made Of irregularities the Pttsburg Post
ONCE and Of the non-receipt OF letters containing
remittances. So constant was this annoyance and
financially disastrous that United States District
Attorney II. b. Swoope was made aware Of the
fact. Complaints were made from clergymen
editing q religious newspaper here, who report
loss Of 100 letters and something like $1,000 in
moneys another LAB letters, with about 200, while
other persons have suffered like losses to greater
less extent.
DISCOVERY OF HUGE DEFALCATIONs.
Mr.. Swoope asked Postmaster General Cresweli
for an investigation, and Immediately Afterwards
Major Petherbrtdge chief O: the special agents,
sisted by b. X sharatz, OF New York, arrived here
and commenced the work Of estgatOn, which
disclosed the fact that the accounts OF the ONCE
were improperly kept, and that some Of the clerks
portion OF their pay by being induced to sign vouch
ers for greater amount than they have been re-
ceiving. One instance IL stated OF q clerk who
regularly signed q voucher for SIS month
more than he was paid. or course, the Postmaster
In his accounts was credited with the full amount
OF the voucher, and the difference between CHS
sum and the amount received by the clerk repre-
sented his net gain by the transaction. The nrst
evidence that the Department had OF there being q
delacation In the once when drafts the Pitts
burg Post ONCE to the amount OF $4,000, In favor
OF the Panhandle Railroad Company, for the mail
service, returned to the Depart ment protested
for non-payment. At that time the Postmaster,
according to his accounts, should have had ample
funds to pay the draft. This caused prompt action
at the Department in taking possession OF the once
and suspendng the Postmaster.
THE AMOUNTS.
The investigation of accounts was continued to
the Postal Revenue Department fund.- In which
there was discovered o discrepancy to the amount
OF $l8,416 rs. In the stamp and stamped envelope
fund the sum missing was ascertained to be
$12,556 So. OF the money order fund the sum OF
l,Os7 25. or the funds received from box rents
and postage collected there was deficient $3.50.
Alter having proof positive Of defalcsuon Mayor
Petherbridge telegr aphed the fact to Postmaster
Creswell, who, In return, ordered the arrest OF
Stewart, and directed that criminal proceedings
be at once Instituted against him.
STEWARDS ARREST.
Accordingly information was made this after
noon, before United states Commissioner Gamble,
against Stewart, charging him, as Postmaster OF
the United States at Pittsburg, with embezzling
and converting TO his own use $33, 435 48 OF the
public funds OF the United States. Armed with
warrant, Deputy United States Marshal Pender
went down to :he private once OF the Postmaster,
and said "Mr. Stewart, / have Q warrant for your
arrest"
The Postmaster. who had been chatting pleas.
anty with some friends, suddenly turned pale and
started back as II been shot at. He recovered
himself soon afterward, and reached out his hand
for the warrant which he took without utterng Q
word. He read it over very carefully and then re-
turned II to the deputy and made known his readi-
ness to follow him whenever he thought proper to
take him.
HE ADMITS TIE LOSSES
He was taken to the ONCE OF the District Attor.
ney, where he was examined at some length and
finally he admitted to Mr.. swoope the defalcston,
stating that the amount was, perhaps. over
$4,000. Bail in the sum OF 100000 was demanded
for his release, ana finally this furnished, p H.
Laughlin, Charles Bachelor and Alexander Brad
ley all well known citizens, furnishing security in
the sum Of $40, 900 each.
Stewart was appointed In 1868 by President Grant
az the successor OF James II. McCleland. He
served the county in the capacity Of Sheriff. and
was captain OF a company OF nremen recruited in
this city which served IN the rebellion. HIS bonds
men are his father and James Kelly, Of wilkins
burg near here. II is said the great fault, and,
probably the origin or his dincuties lies in his in
competence and carelessness az business man.