The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-10-12
$25, 900 package to Mrs. Grant at the
White House.

scHENoK AND HIS PECULIAR DEAL.
Gen. Schenck's connection with the
Emma Mine company was formed on
Parks proposal that he should subscribe
for 500 shares, cash value 100000, but
should not be required TO provide any
money. Park was to lend him the money
without interest, and guaranteed that the
dividends should amount to 2 per cent per
month, while held by Schenck, and agreed
to take the shares back at any time at par.
Practically this gave Schenck a bonus of
"a per cent. on the stock. because the note
was made payable in one year and bore no
interest Subsequently the dividends
guaranteed were reduced to II per cent.
and the bonus thus reduced to Is per cent.
NO security was ever given. Gen. Scheuck
did not consult the secretary of state as to
the propriety of allowing his name to be
used. The arrangement by which his
shares we're bought for him and the divi-
dends guaranteed was kept secret The
fraudulent character OF the enterprise was
soon known. An investigation by the
House ensued. His testimony was proved
to be mainly false. The committee unani-
mously. reported resolution condemning
his action as ill advised, unfortunate and
Incompatible with the duties of his official
POSITION" and the House unanimously
adopted it.
THE GENERAL ORDER MONOPOLY.
The New York Custom House has been
one of the chief bureaus of corruption un.
der the Grant administration. The system
of warehousing goods which had been in
vogue for years and given entire satisfac
ton to New York merchants, was changed,
in 1870, and an extortiOnate monopoly
given to one of President Grants proteges
This monopoly was obtained through the
President and his secretaries, Babcock and
Porter Charges imposed by this frm OF
Leet Il Stocking, sometimes amounted to
more than the freight on the same good
from Liverpool to New York Their
profits from these extortions we're estimat
ed as high as $300,00U a year. 10 gold.
Stewart, Dodge, and other eminent Derch'
ants, protested in vain. Under Collector
Murphy many other abuses grew up
Horace Greeley and other witnesses show.
ed, before the Investigating Committee,
that the Custom House patronage was
used TO control the Republican party.
Public indignation compelled Murphy S
resignation. but the President wrote him a
tulsome letter of compliment.
PRINTING FRAUDS.
In 1874 the management of the Govern
ment Printing Office was investigated by
the Republican Senate, and although
charges OF fraud were sustained, Printe,
Clapp was whitewashed. In 1876 the
House committee on printing, whose chair
man, Mr.. Vance, is a practical printer
made a thorough investigation. TIL
showed, on the testimony of the best ex
perts in printing and binding in this com
try, that Clapp overcharged from 35 tC
BOO per cent; that owing to the enormous
supply of type and materials, books OF
l 200 pages were kept in type. and when q
new edition was ordered the Government
vas charged a second tune for composition
J that full composition is charged every year
in this way for the Army Register, which
) is kept standing, and in which only a few
: changes are annually made; that bills were
made for articles not purchased. The
,, Investigation proved that while the Gov.
ernment Pricing Office cost from lS6;
TO 1865, exclusive of taxes, insuI ance anC
Improvements, S2l,767 496. or an annua
average of Sl,6T4 ,422, that The worl
could have been done honestly for 60 pei
cent. OF that amount, or about $l3, loo, O0(
the waste aud fraud amounting in / 8 years
to $S,6OO,OO0. The House legisIated ClapI
out of office; new office was created t
which the President appointed Clapp; tn
nomination was confirmed by the Senate
Notwithstanding all these disclosures.
THE sANBoRN FRAUDS.
: In 1872, Secretary of the Treasur
I Richardson made contract with john D
e Sanborn for the collection of taxes with
D held in all 5000 cases. for collecting whic
Y he was to receive fifty per cent. of III
= whole amount The contract was mad
: without consulting the Commissioner u
+ Internal Revenue. or any officer OF tn
r Department, The amount collected b.
B Sauborn was 1927 900; the amount re
tanned by him was S2lS 500; the amour
l. Continued on next page).
J.