The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1876-05-04
FRAUDS.-NORE start
LING ENPOSURES.

How the Monthly Debt statement was
made up.-FaIse Reports As to the money
HaHd.- Currency Reported Destroyed
tHat was Divided among the Perpetrators
0fFrswd--Failnvs Of Repeated Efforts
Have an Investigation.
= The st. Louis Times recently pub
lishcd statements made to one Of its
reporters by Sergeant Geo. I'rcnder
in charge of the Signal Service in that
city before he left for Washington 10
testify before the Committee on FIX
pcnditure of the Department
lsrendcr was public. debt statement
clerk in the Treasury Department UNI
der Secretary McCulloch, and his
statements arc TO the effect that while
so engaged, he discovered that great
frauds were being practiced upon tho
Government that each public debt
statement reported money i'll the
Treasury that was not on hand, while
the Government was paying three per
ceut. for money to meet temporary
necessities.
He also discovered that hundreds of
thousands of dollars of Government
! money was placed Ill the hands Of con-
federates outside of the Department,
who loaned it back to the Government
as individual funds, and drew inter-
est ON ii. While pursuing these in-
vestigat!Ons, Prender was informed
by clerk in the redemption Bureau
named Richardson, that
IMMENSE FRAIDS
were being perpetrated in that bureau ;
that fortunes were being made by II =
porting money destOyed which was
preserved that only One-half OF the
money turned in Tor destruction was
actually destroyed, the other half be-
ing divided aineng perpetrators Of
frauds. PreHder reported these facts
TO General Spinner, who waa Treas
urer ut the time, but tho latter declin-
ed to investigate them, saying he did
not believe frauds were being practic-
Ell.
In March, 1850, Congressional Re-
ftrenchment Committee was examinii z
alleged frauds ia the Treasury Print
| ing Department. Prender went 10
Mr.. Edmun,ts, OF V-rmOnt. who was
Chairman OF the Committee, and laid
all the facts before him and asked nn
invesligation. Edmunds replied to
me that the Committee was too short
warrant an extended examination and
nothin. was done Aiier MIR. Bout
| well became Secretary of the Treasury
Prender, who at that time had retired
from the Treasury Department, in
formed him or the discoveries he had
made while clerk in the Department.
and the Secretary promised 10 inves-
tigate the matter. Shortly after this,
! q man named Fox. who had also been
clerk in the Redemption Bureau, call
ell on Prender, and stated he had been
appointed detective by Secretary
boutwell, to work up these frauds and
wanted all papers and evidence lie had
in his possession. Prender declined
to give them up except OH All order
from boutwell,. Fox left and return
ed i'm little while with 4 letter from
the Secretary, asking for the docu-
ments, and Prender gave them to Fox
i'm presence of a witness who knew
their character, and who is now in
Washington. In the meantime, Rich
ar6son had retired from the Redcmp-
ten bureau and located himself al
Albany, New York. Fox visited him
and soon afterwards Richardson, al.
though Democrat, was appointed
Assistant Postmaster at Albany, and
no investigation of frauds was even
made. Prcndcr will probably testify
before the Committee at Washington
OH Monday, when it is expected this
matter will be brought to Eight.