The Morning herald., 1876-04-24
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"a Az u ~ ~ ia'' 81 Debt. --'S
BY American Press Association.
ST. LOUIS, April 2Sd.-The TimIs o.
Today PUBLISHED some statements made to
one Of Its reporters by Sergeant George
Prender,y In charge ofthe signal station here,
before he left for Washington last night,
where he will testify before the Committed
on Expenditures of the Treasury Depart
ment. Prender's statement IL to the effect
t that he was public debt statement clerk in
the Treasury Department under Secretary
McCuIlouxh, and that while 80 engaged he
discovered that great frauds were being
practised upon 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 temporary necessities. He
also discovered that hundreds of thousands
Of dollars of government money were placed
| IN the hauds of confederates outside the
department, who loaned IT back to the gov.
srnment % individual funds and drew In
terest upon It. Prender says while pursu-
inn these Investigations he was informed by
cierk IN the Redemption Bureau named
Richardson that immense frauds were being
pefpetrated In that bureau, and that for
tunes we're being made by reporting money
destroyed which was preserved; that only
one-hslf Of the money turned In for de-
struction was actually destroyed, tho other
half being divided among the perpetraton
Of the frauds. Prender says he reported
thsss facts to Gen. Spinner, who was Trsas-
urer, but the latter declined to
investigats them, saying he did
not believe frauds were being praoticed. In
March, 1850, q Congressional Retrsnch-
meut Committee was examining alleeed
frauds in the Treasury Printing Depart.
ment, and Prender says hs went to Mr.. Ed
MundS, or Vermont, who was chairman.of
the committee, laid oil the facts before him,
and asked for an Investigation. Mr.. Ed
munds replied that the time Of the committee
was too short to warrant extended exami-
nation, and nothing was done. Prender
ssys aher Mr.. Boutwell, became Secretary
Of the Treasury he (Prender), who at thst
time had retired from the Treasury Depart
ment Informed him of hediscoveries he had
made while clerk IN the department, and
the Secretary promised to Investigate the
matter. Shortly after this Q man named
1ox, who had also been clerk in the Re-
demption Bureau, called on Prender and
stated hs had been appointed detective by
Secretary Boutwell, to work up these frauds,
and wanted all the papers and evidence he
had IN his possession. Prender asserts he
declined 70 give them up except on an order
from the Secretary. Fox left, but returned
in 4 little while with q letter from tho Sec
rotary asking for the documents, and Prem |
der gave them to Fox in presence of w.t. |
ness who knew their character and who 10 |
now IN Washington. In the meantime
Richardson had retired from the Redenp-
ton Bureau and located at Albany, New |
York. No investigation Of the frauds was
ever made.
Prender will probably testify before the !
esmmittes at Washington on Monday, when
II Il expected this matter will bs brought to |
light.