The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1876-05-02
Frauds In the Treasury Depart.
lneut.

-AzSe sz5Gis, April ~ The Times will
publish 70 morrow some statements madu
to one of its reporters by Sergeant Geo
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 clerk in the Treasury Depart
ment under Secretary McCulloch, and
his statements are to the effect that while
so engaged he discovered that great
frauds were being practiced on the gov
ernment; that each public debt statement
reported money in the Treasury that
was not on hand, while the government
Vas paying per cent for money to meet
temporary necessities. He also discov-
cred that hundreds Of thousands Of dol
lars of government money was placed
in the hands OF condolences outside Of
the Department who loaned it back to
the government as individual funds and
j drew interest on it. While pursuing the
investigation, Premier was informed by
the clerk in the Redemption Bureau,
named Richardson, that immense frauds
were being perpetrated in that Bareau,
and that fortunes were being made BY
reporting money destroyed which was
preserved, and that only one half of the
money turned in for edenption was ac-
tually destroyed, and that the other hall
was 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 inves
tigate them, saying he did not believe
frauds were being practiced. In March,
1S69,a Congressional retrenchment com
mittee was examining alleged frauds in
the treasury printing department. Prem
der went to Mr.. Edmunds, of Vermont
who was chairman Of the committee, and
laid all the facts before him and asked
for an investigation. E Eimunds replied
that the time OF the committee was toe
short to warrant an extended examina
tion, and nothing was done After AR
Boutwell, became Secretary of the Treas
ury, Prcnder, who at that time had re.
tired from the Treasury Department, in
fo.med him of the discoveries ho had
made while clerk in the Department
and the Secretary promised to investi
gate the matter. Shortly after this, 8
man named Fox, who had also been 8
clerk in the Redemption Bureau called
on Prender, and stated that he had been
appointed detective by Secretary Bout
well to work up these frauds and wanted
all papers ami evidence he had in biz
possession. Prender declined to give
them up, excep. on order from Boutwell,
Fox left, but returned in little while
with letter from the Secretary, asking
for the documents, and Prender gav'
them to Fox in the presence OF wit
ness who knew their character, and WHIT
is now in Washington. In the mean
time Richardson had retired from tn
Redemption Bureau and located at Al
bany, New Yo,k. Fox visited him, ant
soon after Richardson, although Dem
ocrat, was appointed assistant postmas
ter at Albany, and no investigation Q
frauds was ever made Prender Wi
probably testify before the committee 8
ashington, when it is expected the mai
; ter will be brought to light.
Theloss of the ship Victory. frol
IN