The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-04-24
.startiing: :Deyelopments.

ST. LOUIS, April 23.-The Ifmes Will
publish tomorrow some statements made
10 one OF its reporters by Sergeant George
Prender, in charge Of the Signal Service
station here, before he left for Washing
ton last night, where he will testify be-
fore the Committee on Expenditures in
the Treasury Department. Prender was
public debt statement clerk in the Treas
ury Department under Sec'y McCulloch,
and his statements are to the effect that
while so engaged he discovered great
frauds were being pfacticed on. the Gov
eminent and that each public debt state
ment reported money in the Treasury
that was not on hand while tho Govern
ment was paying three per cent for mon
ey to meet the temporary necessities. He
alSo discovered that hundreds Of thous-
ands OF dollars Of the Government money
was placed in the hands of the Confeder-
ates outside Of the Department who have
loaned it back TO the Governments rs indi-
vidual funds, and drew interest on it.
While. pursuing these investigations
Prender was informed by the clerk in the
Redemption Bureau, named Richardson,
that immense frauds were being perpe-
trated in the bureau; that fortunes were
being made by reporting money destroyed,
which was preserved; that only one-half
OF the money turned in for redemption
was actually destroyed, the other half
being divided among the perpetrators
Of the fraud. Prender reported these
facts to Gen. Spinner, who was Treasurer
at the time, but the latter declined to In
yestigate them, saying he did not believe
frauds were e'being practiced. In March,
1869, a congressional retrenchment COM
mittee was examining the alleged frauds
in the Treasury Printing Department,
the President went to Mr.. Edmunds, OF
Vermont, who was chairman Of this COM
mittee, laid the facts before him and
asked an investigation. Edmunds said the
committees time was too short to have
an extended examination, and nothing
was done. After Boutwell, became Sec
retary OF the Treasury, Prender, who ut
that time had retired from the Treasury
Department. informed him Of the discov-
cries he had made while clerk in the
Department, and the Secretary promised
to investigate it. Shortly after this .
man named Fox, who had also been 4
clerk in the Redemption Bureau,
called on Prendcr and stated that he had
been, appointed a detective by secre-
tafy Boutwell, to work up these frauds,
and wanted all the papers and evidence
he had in his possession. Prender de-
clined to give them up, except on an
order from Boutwell,. Fox left, hut he
returned in "a little while, with a'letter
from the Secretary asking for the docu-
ments, and Prender gave them 10 Fox in
the presence Of witness who knew
their character, and who Is now in
Washington. In the meantime Richardson
had retired from the redemption bureau
and located At Albany, New York. Fox
visited him and soon after Richardson,
although Democrat, was, appointed as
sistant postmaster at Albany, and no in
vestigatlon OF the eirauds was ever made.
Prender will probably testify before the
committee at Washington on Monday,
when II is expected this matter will be
brought to light. ~