The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-10-09
HOW AND WHY.

HOW AND WHY.
The United States treasury department
has been peculiarly unfortunate in its Sc
lection of agents, and it is somewhat mat
ter of surprise that it has not suffered
larger pecuniary losses through them than
has been the case. Jay Cooke & Co., for
long series OF years its financial agent and
the negotiator of its bonds, failed disas-
trousy and dishonorably, but it occurred
at a time when their dealings with the gov
eminent were small and the loss was in
significant, but their disaster and dishonor
reflected discredit upon the country whoae
duly accredited financial representatives
they were. The employment of Sanborn,
and the notorious contracts entered into
with him, were as disgraceful to the treas
ury department as they were fraud on the
government. The machinery of the inter-
nal revenue office, as well as that of GUS
toms, has been fruitful of jobbery, fraud
and corruption, aud although the officials
of these departments are not, strictly
speaking, financial agents of the govern
ment, yet their manner of conducting bus
mess and the numerous frauds committed
by them, or with their connivance, has re-
flected gross dishonor ON the financial his
tory of the country and has been in keep
ing with the general management of the
treasury department. Happily for the
country, Boutwell, and Richardson are no
longer Irresponsible" for the finances.
Happily, too, Benjamin II. Bristow is Sec
rotary of the treasury, and the practices of
which we have been speaking have been
and are being exposed and stopped.
Another of these financial agents was
the firm of Henry Clews & Co., whose
failure and the loss of the government
thereby are we'll known. That the govern
ment would have suffered no loss if the
treasury department had conducted their
dealings with them only in strict compli-
ance with law is also we'll known. Their
failure and the proceedings in bankruptcy
against them has resulted in disclosures
which, while they will be a surprise to the
country, will sufficiently explain the how
and the why of the employment of 30 many
dishonorable financial agents and other
public officers, and only leave the country
to wonder that its pecunary losses have
not been very much larger. One Benja-
min II. Cheever, a notorious Washington
lobbyist, had presented claim against
Clews q Co. for some six hundred thou
sand dollars or one-quarter of the profits
of the firm during the time it was the
financial agent Of the government. He
Pounds the claim on written agreements,
signed by himself and Clews, wherein the
latter agrees that, in case the firm are APP
pointed financial agents of the govern
ment, one-fourth of the profits shall be
paid to Cheever-the remainder to be di-
vided as follows: one-fourth to Clews,
one-fourth to one Habicht, and one-fourth
to one James Van Buren,. Who this Van
Buren, was is unknown, but that he was
representative of some one in power may
be inferred from the fact that the consid-
Grafton of these agreements was the lob
bying to be done by them in obtaining the
financial agency for Clews & Co.
Next to the secretary of the treasury
this is the choicest position in the gift of
the government" says Cheever, and for
two years and six months he faithfully
worked to secure it for Henry Clews &
Co. His contract required from him all
lawful services" in Washington and else
where Gin every way until success was OBJ
tanned and he seems to have lived up to
the terms Of his contract. He expressly
denies that he ever offered any "pecuniary
inducements" to any officer OF the gov
eminent, but says that he promised Louis
Dent-we need not inform our read
ers who Louis Dent is, one half
of his quarter of the profits
that IS one-eighth of all the profits of
Henry Clews & Co. The competition for
the appointment was great and he la
bored with "various members Of the admin
istration "-specifying Boutwell, and De-
lano-"to counteract the efforts" of other
bankers and agencies, and conferred par
ticularly" with Roscoe Conkling, Henry
B. Anthony, Lot NJ. Morrill,, Charles Sum-
ner, Logan, Pomeroy, Sprague, Chandler,
Vice-President Wilson, Speaker Blaine,
General Banks, Butler" Butler especial
" ly took great interest in ii "-Ramsay
and "ffty others" and when called on to
give their names, he gave the concise, but
comprehensive, answer, "Let me have a
Congressional Directory" He says /:
" explained to the gentlemen in various
" positions under the government and in
the various walks of life the importance
OF having such wise and successful
man as Mr.. Clews" at the head of the
financial agency, and his explanations were
crowned with success
The names of some of these gentlemen
preclude the very idea of corruption, and
leaves no doubt in the mind that If thew