The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1876-04-24
Frauds in the treasury Department.

Frauds In the Treasury Department.
ST. LOUIS, April 22.-Tbe Times will
publish tomorrow some statements made
to one of its reporters by Sergeant Geo.
Prender, in charge Of the signal service
station here, before he LETT tor Washing
ton last night, where he will testify be-
fore the Committee on Expen-
ditures in the Treasury Depart
ment Prender was public debt
clerk in the Treasury Department under
Secretary MCCULLOUGH, and his state
meuts are to the effect that while SO en-
gagged he discovered that great frauds
were being practiced on the government;
that each public debt statement reported
money in the treasury that was not on
hand, while the government WAS paying
three per cent for money to meet tenn
porary necessities. He alsu discovered
that hundreds of thousands of dol
lars of government money was
placed in the hands Of confeder-
ates outside of the Department who
loaned it back to the government as in
dividual funds and drew interest on it.
While pursuing tle investigation, Prem.
der was Informed by the clerk in the Re.
demption Bureau, named Richardson,
that immense frauds were being perpe
trated in that bureau. and that fortunes
were being made by reporting money de-
stroyed which was preserved, and that
only one.half of the money turned in
for redemption was actually
destroyed, and that the other half
being devided among the perpetrators OF
the fraud. Prender reported these facts
to General Spinner, who was Treasurer
at the time, but the latter declined to
investigate them, saying he did not
believe frauds were being prsc.iced. In
March, 1869, a Congressional retreL CHI
ment committee was examining alleged
frauds in the treasury printing depart
ment. Prender went to Mr.. Edmunds,
of Vermont, who was chairman of this
committee and laid all the facts before him
and as sked for an investigation. Edmunds
replied that the time OF the committee
WAS too short to warrant an extended ex.
animation, and nothing was done. After
Mr.. Boutwell, became Secretary OF the
Treasury, Prender, who at that time had
retired from the Treasury department,
informed him of the discoveries he had
made while y clerk in the department,
and the Secretary promised to investi.
gate the matter Shortly after this,
man named Fox, who had also
been clerk in the Redemption
Bureau, called on Prender, and stated that
he been appointed detective by Secre-
tary Boutwell, to work up these frauds,
aud wanted all papers and evidence he
had in his possession. Prender declined
to give them up, except on order from
Boutwell, Fox left, but returned IN
little while with letter from the Secre-
tary, asking for the documents, and
Prender gave them to Fox in the pres
ence OF witness who knew their
character, ard who is now in Washing
ton. In the meantime Richardson
had retired from the Redemption Bureau
and located at Albany, New York. Fox
visited him aud socn after Richardson,
although a Democrat, was ap-
pointed assistant post master at Albany,
and no inveslig gation of frauds was ever
made. Prender will probably testify
before the committee at Washington,
when it is expected the matter will be
brought to light.