National Republican. (Washington City (D.C.)) 1872-1888, 1874-10-30
MAJOR HoDGFs DBFALOATT0NS
SUIT TO RECOVER HALF A MILLION
DOLLARS FROM PoLHAMUS & JACK

SUIT TO RECOVER HALF A MILLION
DOLLARS FROM PoLHAMUS JACK
SON
In the United States Circuit Court yesterday,
before Judge Shipman, the civil suit OF the
United States TO recover ESQ.,, 900 against Messrs
Polhamus & jackson, brokers, late OF Wall
street was begun. This case arose out Of the de-
| falcation Of Major @. L. Hodge, q paymaster OF
the United States, who, 1t will be remembered,
was convicted by court-martial, in 1871, Of mis-
| applying the funds Of the Government, and SEN
fenced to the penitentiary and afterWard par
doned by the President. 1t was discovered from
the evidence given before the court-martial that
Hodge had lost the money intrusted to his care
by specializing In stocks and gold In Wall street,
ana that the gentlemen referred to had acted as
his brokers' Shortly after Hodge was convicted
Messrs. PoIhamus jackson were Indicted in the
United States courts for eonspiring 70 defraud
the Government.
This case never came to trial, however, ss, by
direction Of the authorities at Washington,
zolIs pTossqEi was entered by the District Attor-
ney. Suit was then brought to recover the
amount SO lost from the brokers' by civil process
and the trial Of the cause was begun in the Uni
ted States Circuit Court, before Judge ShipmAn,
yesterday. The Government was represented by
Assistant United States District Attorneys IRE
main and Sherman, and the defendants BY Mr..
Roger A. Pryor, Mr. Hodge was first put upon
the stand BY the prosecution. He testified that
NAenotANNANAA1
jackson in the purchase OF stocks and gold,
and said that It was in 1867 that he first began to
use funds belonging to the sR ne SAD "a
used cid not belong to him, and that he had
never intimated that they belonged to the Gov
eminent. During the cross-examination BY Mr..
Pryor he said that HIS father, who died in 1858,
was reputed to be wealthy, and that It was gen.
orally supposed that he was in much better cir.
eunstances than he really was. His father had
experienced considerable losses during the last
four years Of his life and this fact was not gen.
He further said that it was his habit to write
letters connected with HIS private business in his
office in the pay department, and al his letters
and teiegTams were sent to that address. Major
Kent, chief Of the finance division OF the Pay
master Generals Once, was next called. He tes-
tilted to the extent Of the money transactions be-
tween M aior Hodge and the defendants as shown
by the accounts current and other documents
given him by Major Hodge at the time when the
appeared to testify in behalf Of his firm. After
explaining how he had become acquainted with
Major Hodge; he gave an outline q his business
HeVed him to be man Of means, and that he had
known him in Washington, where Hodge had
owned Hodge had also told him that he was
largely interested in contracts which were being
carried out in Washington, such as street paving
and other improvements, and that he expected to
make money out of them. The business Of his
flrm, Mr.. jackson said, was very large, and in
one year IN Theh ne DE o 15C up Sne
and one-half payments. In nine years their busi-
ness had involved the sum Of q, 100 900 900, one
hall received and One-half paid. He had often
drawn on his bank for g, 0OO, 900 In one day.
The money received by the firm from Major
Hodge was RENTED by him in drafts on banking
houses, in cash, and by drafts on the United
States Assistant Treasurer. Whenever MAJOR
Hodge made a remittance by draft on the Assist
ant Treasurer, he accompanied it with q letter
explaining why 1t was DONE and the hrm never
had any suspicion that the money so sent was the
proceeds Of Government funds. His firm had de-
posted at various times in the course Of their
IrauEa lions with Major Hodge about El4b.OOl to
his credit with the Assistant United States Treas
urer, in this city. After the witness had ex-
planned the transactions of his firm in the pur-
chase and sale OF sundry securities for and on
account of Major Hodge, and the transfer of the
amount of their indebtedness to him to the Gov
eminent after the discovery Of the detalcation,
the court was adjourned until eleven o'clock to-
day, when il is expected the case will be con-
elnded -Afag Y0rE TYaeF October %