The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-27
GENERAL WASHINGTON DESPATCH.

WASHINGTON, March 20. 1871
THE "UNCLAIMED INTEREST" TBoUBLE-A
REPORT FROM THE SOLICITOR OF THE
TREASURY.
After long aud careful investigation Of tho method
of paying what is called IN tho Treasury "unclaimed
interest,"" tho Solicitor of the Treasury has submitted
lengthy report tho Secretary OF tho Treasury, in
which he reviews In detail the whole matter and finds
that the recently published statements Of COLLISION be-
outside parties and prominent officials, by which
fraud has been practiced upon tho Treasury have hid
no basis whatever. The Solicitor says:-"lt does
appear that either tho Treasurer Assistant Treas
urcr have been involved in any Official negligence,
that by their doing neglecting to do, giving
withholding any Information, they have exposed
tho Treasury tho creditors OF the gov
eminent 10 any loss. Tho Treasurer Is, in
fact the party liable for any losses occurring through
any act neg gence OF his and clerks and
that relation in addition to his rrcproacnabe charac
ter seems 10 bs sufficient safeguard for his official
fidelity. The chief of tho loan division made, by
ordor of the Secretary Of the Treasury the attorney of
parties claiming overdue interest who have not
appointed nm attorney. In all these cases payments
woro made by check and TO tho party In whose name
the Interest stood upon the books In tho Treas
ury John p. Bigclow, late chief OF tho loan
division; Daniel Baker, the present chief, and
William Fletcher, In the absence OF tho
latter, have acted attorneys under this
order. and all payments mado upon vouchers fled by
them believed 10 be regular, nor has anything
been disclosed upon which suspicion can be justified
that these gentlemen not discharged their official
duties connection with all interest disbursements
with strict integrity and fidelity. Tho scandaous
publications that have connected the name Of Mr.
Charles f. Conant Assistant Secretary and late Act
ing Secretary OF the Treasury, with these irregular
payments from the Treasury have not tho slightest
foundation Of fact to rest upon. That officer
had nothing to do with tho payments of
unclaimed interest," and no knowledge OF them except
what has been gained in this investigation. There Is
evidence terdng to show that he has obstructcd
delayed any OF the measures prudently or properly
taken 10 detect and punish the unlawful practices
connected with these Treasury colections though II
Is fairy to be presumed from what no has sad done
or omitted that be has not approved Of either the
agency or methods by which tho investigation has
been conducted. l submit that to subject public
officers, whose fidelity has been tested by
years Of upright administration and vouchcd
for by the confidence OF their supcriors and OF their
fellow citizens, 10 the same methods and the same
agencies applied only TO outlaws and crimi
nails is to degrade public oIlco below the ambition OF
honorable men. Even such agency might be
ployc It should be strictly according 10 law and under
the express direction of the head Of the department.
and for q subordinate officer 10 undertake promote
an investigation tho conduct OF his supcrors and
associates by such methods will not only destroy the
respect and confidence essential TO the discipline Of
the public service, but will make tho cmploymcnts OF
the government centres Of intrigue where ambitious
and envious men can undermine and supplant their
supcriors.
II IL not shown that any information for publication
has been gwen by tho supervising SPECIAL agent, but
II does appear that Mr.. Timmons has been much less
retcent and discreet In his communications than
adyant agcous TO the public interests Much publicity
necessarily obtained In tho proceedings attending tho
arcs, Of aud attempts to arrest the persons mpli
Gated and the Of employees OF the government
who had been dismissed from tho department. Tor inca.
pacity or misconduct has given personal turn and
malicious exaggeration to reports which had an insig
niacan, and comparatively innocent basis Of fact to
stand upon.
1t is not known up to the present time that, with
the exception OF S2io mprudcntly paid ont in 1876,
any amount has been paid unca med interest which
has not been paid back, viii not be paid back the
result OF the present Investigation No loss has
suited result the United States tho Treasurer
beng Liable upon his official bond for all disbursements
maze 70 persons authorized TO receive the
Several thousand dollars appear to have been fraudu-
lcniy paid OUT but this cannot DO determined with
out judicial investigation