The New York herald., 1876-11-27
SECOND AUDITORS REPORT.

RECORD OF FIFTx-NINE YEARS woRx-DE-
sCRIPTIoN OF A clRcUMLocUrIoN MILL
FRAUDS ON THE uNITxp STATES.
WASHINGTON, Nov. 20. 1876.
The annual report of the Second Auditor OF the
Treasury shows during tho last fiscal year thors
adjusted p. los accounts Of Indian agents. army
paymasters recruiting medical and ordnance officers
CLAIMS Tor of pay aud bounty and miscellaneous
accounts involving m aggregate disbursement OF
sa6 $50 544 II, and leaving hand for fusure con-
sdcraton 20 64 accounts OF which Ii. 500 claims
OF soldiers tor pay and bounty accruing drrng the late
rIYry-xIxE YEARS. WORK.
The report also exhibits In tabular form tho opcr.
atons OF The Office since It's organization N 1877 iron
which II appears the whole number OF and
80 ls6l ~. 4CS and that from Juno 80, 1851 TO
June 30, 1876. the number OF such settlements
e57 s06 nvoving 81 s32 4S 035 -. ITO this number
urc added the claims examined aud rejected, 236 44S
u appears that l. l94, 244 claims and money accounts
have been settled anu disposed OF In the last fifteen
years.
The tables also show that in the time I147 AIS
property have been adjusted $751; etcrs
have been and that oil. .5s7 certincaIes IRON
the and pay rolls of the army have been made
10 the Adjuant General, Third Auditor and other Of
nccIs.
The following extract de-criptivc OF tho process Of
what technically called covering iu," Is strongly
suggestive Of n suspicion that Mr. Tito Barnacle's cir
cum!ocution oiicc has one or NOR, branch establish
mcnts in Washington
The by which moneys are covered into tho treas
Is generally understood Az the work th once
h.s as been considerably augmented sy the covering ~
the TO In deposits made by
sine APRIL 1871. paymasers have required TO do.
post monthly with designated depotaric of the United
Sa.cs all amounts stopped om tho pay OF oncers aud
taking duplicate receipts cerhcAtes Of deposits
thcre and ior~ arding tho original to the Of
On its receipt by the Treasury Department
independent Treasury division, the certificate recorded
appropriate which the deposit should credited
The Secretary of War refers to the Paynastcr ensra
ho obf in from tha
OF the paymas,er making the deposit, indorses
tue appropriations tho certificate and re-
turns to the secretary of War As she
majority Of deposits embrace onsys pertain.
ing the and Ordnance departments the
certificate Is then referred 60 those
shat they keep record Of cpayments their
the Of the Who II this
Office with that the amount be properly listed
severed into the irea,rrs rnc list, made out on
place ot deposit. the and
the ueposor whose personal ercdit tho will
be the under he I'D of
The list being led for reference
the Warrant division Of the Treasury Department
terred the reasurcs Office comparison With the
found IL is reported and returned this
once amer having been recorded in the Divion
Arsaaisition is then made out il the following foru-
DEPOSIT REorsiIf0S.
Department
To THE SECRETARY or rns TxrAsuRv:--
issue % your warrant ~ lon On 'ns persons named be-
dollars and being deposited 10 the credit
Of the said Treasurer list No herewith and to
ther credit OF the ntioned sppropra
tious.
Given under my handshis - day f.. 1876:
g.. -, Secretary of war.
Countersgued second tompt roller.
Registered. - -. second Auditor
Name aud Rank Appropriation. Amourt Total