National Republican. (Washington City (D.C.)) 1872-1888, 1875-01-28
DISTRICT FORGERs.

The Alleged Conspiracy to Defraud the Dis
trict, and how it Came About.
The case Of Richard W. Walters, Guy H.
Thompson, Thomas ]. LaEenby, Samuel T. Luck
EFT, J. ]. Wilmarth and George b. Coburn, ar
rested by Detectives Sargent and McElfresh
upon charges made by FitZhugh Coyle, Comp
troller Of the District, Of conspiracy to defraud
the government, by obtaining payment OF q
claim against the District, by means Of fraudu-
lent payroll, came up for hearing in the Police
Court yesterday, Gen. Terry assisting Assistant
District Attorney Evans in the prosecution, and
Messrs. A. G. Riddle, L. e. Hine and WIN; a.
Cook, jointly, for the defendants, and Gen. Grit
tenden for Wilmsrth, N. II. Miller for Walters
and John q. Fay for COburn.
The District Attorney entered a Holle pros. in
the case Of Mr. Coburn, Gen. Terry, for the Gov
eminent, stating that there was not evidence
enough against Mr.. COburn to sustain q charge
against him, SO he was discharged.
The case was opened by General Terry stating
the history Of the case as follows: Walters OBJ
tanned a contract from the Board Of Public Works
TO park Fifth street. In October last he closed
his account with the District through his attor-
neys ]. &. Lay & Co., and received certificate
in Iull, less the percentage retained oy regula-
lions of the board Of audit. Through some error
in tine office Of the board no record appeared to
have been made OF this settlement. In NOVem-
Der last the fact of his claim still appearing in
the office OF the board Of audit Walters proceeded
10 make out a payroll Tor nye persons purporting
TO be laborers, with powers Of attorney to Guy II.
Thompson, ]. J. Wilmarth and Samuel J. Luck
This payroll, with certificate of board of audit
and power of attorney, was presented to District
Auditor Vincent, who issued warrants for the
payment Of he claim. These warrants were de-
posted in the Peoples Savings Bank, indorsed
BY George H. Thompson; and subsequently he
(Thompson) drew checks to the amount OF the
warrants. These warrants were indorsed by Gen.
BaIloch. Of the Peoples Savings Bank, presented
at the United States Treasury. and the money
received by him for the bank. Gen. Terry stated
that the Government expected to prove that Wal
tiers had already received payment IN full Tor ms
claims for contract less S71 reversiOn; that this
certificate and ay-roll were fraudulent; that the
persons whose names appeared on the payroll
and on the power Of attorney as laborers claiming
pay could not be found, and that no such persons
exist.
Vincent, auditor Of the District, recognized the
certificates of audit and warrants for the pay
ments as genuine and regular, and made In the
usual manner from official evidence OF Indebted
ness. Characterization ELECTED nothing further.
He knew Of no prior claim or payment as the
books OF the Office were not In his possession, and
he had no occasion to examine into the genuineness
Of the certificate Of audit upon Whlch ne had Is
sued the warrants.
The next witness, Mr. Noyes, of the firm Of J..
q. Lay Co., testified that on the sth Of october
last the firm drew the full amount OF walters
claim for work done under his contract, less q
certain per cent reserved for repairs, which
amount he, NOyes, paid over to Walters at once;
that he knew nothing Of this eertineate presented
and Identified by Mr.. Vincent.
Mr.. Vale, clerk to the board Of audit, testified
that Walters account was settled in October, and
paid in full less SCH reserve.
On crOss-examinatIon stated that his informa-
ton was derived from the books OF the accountant.
Robert b. GIL was employed in the ONCE OF
the beard Of audit; left office LIST Of November:
before he left the Office he saw the certificate OF
indebtedness in favor Of walters; after he lett he
informed Thompson Of this account in favor Of
Walters; saw Walters and Thompson make out
the payroll and powers Of attorney, and saw
them attested by LaZenby.
On cross-ex8minAtiOn stated that he introduced
Walters and Thompson so that Thompson could
prevent the claim Of Walters.
F. NJ Drany testified that he was q partner
with Walters in the Fifth-street contract; that
in October Walters made a settlement in full oil
his account for work in the contract; that he
(Drany) YVES time-keeper, and paid all the la
borers and that no such persons as those whose
names appear on the payroll presented in court
had at any time been employed by him or Wal
tiers on the work.
The court here adjourned the case till O'CLOCK