New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-12
THE JUDGE A DEFAULTER.

The IRfBCSEs dispatches, given pciow, ue-
scribe the defalcation at length.
THE JUDGE A DEFAULTER.
~ pynr To TIE UNITED STATES $600.oo0-THE
SORT OF MAN WHO ASSUMED 10 TRY GENsRAL
ASpRRsoS--A QUIET LOT or ASSETS.
[BY TELEGRAPH THE TRIDUNE.i
WASHINGTON Feb. 1.-THE trial of the members
a the Returning Board, by Judge ii. r. Whitaker,
a, Newt Orleans and some OF the marifestly unfair
,upes which have been made by him. have caused
,ome inquiry to be made in Washington about the
character and past history of this man. II is dis
covered from records of the Treasury Department
that Judge Whitaker is at this moment defaulter
"a the amount of about 5000, 900 TO the Govern
uent of the United States. The circumstances of
his defalcation as follows:
When New-0rleans was captured by the Federal
troops Thomas p. May. special agent Of the Treas
ury Department, was placed in charge Of the United
States Sub-Treasury in that city, and remained in
the position OF Assistant Treasurer until the Fall OF
1865. At that time Mr.. May became president of
the First National Bank of New-OrleODs. III. H.
Whitaker the present Judge, was appointed Assist
ant Treasurer in bis place. Mr.. May becoming one
of his bondsmen. In the Spring of 1867 informa-
ton was received at the Treasury Department from
New-York in regard to some irregular transactions
between the First National Bank of New-Orleans
and the Sub-Treasury and Mr.. John j. Knox, now
Controlerof the Currency, and Mr. Mellne. of the
Treasurer's OAice were sent to Louisiana to make
an investigation.
WHAT THE AGENTS FOUND.
These gentlemen reached New-0rleans on the
nth OF May 1867 aud found that Mr.. Whitaker
was out Of town. Taking immediate possession of
the Assistant Treasurers Office, they made an ex-
animation of his cash, and found ii short about
siiO0OO0. Demanding from the cashier informa-
tion rs TO where the remainder of the funds were,
he replied that he supposed they were in Mr.. Whit
takers tin box which was locked, and OF which
Whitaker himself had the key. The agents of the
Government then sent for a locksmith and had the
box opened II was found to contain a lot of prom
issory notes. bills Of exchange and memoranda, out
of which the Government subsequently, realized
about 300. 900. Among tho papers were several
drafts for large amounts on Cakes Ames. which
were protested Mr. Ames asserting that the signers
Of the drafts had no authority to draw upon him.
When Mr.. Whitaker returned he admitted that
when ne received the Sub-rreasury from May his
predecessor he found about 100000 in certificates
of deposit of the First National Bank of New-Or-
leans for which he receipted to May as cash. and
had so reported, TO the Treasury Department III
Washington. Subsequently he SAID he had re-
ceived in payment of transfer orders on the bank,
the certified checks Of May the president, and that
Of exchange and promissory notes which were found
in the box
MAY and Whitaker both turned over all their
property to the Treasury Department, and out of
that transfer by May the Government has since
realized about 100000. Only trfng amount
has ever been obtained by that transfer from
Whitaker Mr. May acknowledged that the bank
of which he was president had received all this
money, and it was understood at the Treasury De-
partment that il had been lost in gold and cotton
speculations in Ncw-York. Mainly, however, while
the bank was under the presidency of Mr.. A. Z.
Graham. formerly of New-York. and while May was
himself Sub-Ireasurer. May only took the presi-
dency Of the bank when affairs became so bad that
Graham resolved to get out at all hazards May I'M
doubtedly hoped by means of his private fortune
and some lucky turn in speculation TO
carry things through, and replace the money and 1t
was through his influence that Whitaker was put
into the Sub-Treasury his successor The detal-
cation as it now stands is about $6O0.OO0 for
which Whitaker is wholly responsible. Previous
TO has appointment Assistant Treasurer, Mr.. Whit
taker was a Collector of Internal Revenue, and
there still remains balance of $1,000 on his ac-
count with the Internal Revenue Bureau that has
never been settled.
Criminal prosecutions were begun against both
May and Whitaker; but owing to the peculiar
condition of society in New-0rleans il was utterly
impossible TO Obtain conviction. As nearly as
the officers of the Treasury Department can re-
member May and Whitaker were arraigned. and
made no plea to the indictments against them and
were acquitted by the jury without leaving their
seats.
POOR LUCK IN CONVERTING ASSETS.
In connection with the attempts of the United
States Government 10 recover a portion OF the
money stolen by May and Whitaker, there
occurred many amusing incidents which illustrate
the difficulty which the Government encounters in
realizing property which may fall INTO its
hands. Among the property turned over by Mr..
May was horse railroad, from which the Govern
meut realized about $500, 900; the steamer Virgin;
the house in which May resided; $4,000 worth of
stock in the Varieties Theatre. and other mis-
cellaneous property. The house was supposed to be
worth about $20,000 and there was in the cellar
store of wine valued at $4,000.
The Government took up and paid a mortgage
which had been given on the house. The WINE was
drunk up by officers of the United States; and after
paying enormous expenses the Government finally
sold the house for just about enough to save itself
from loss.
The steamer Virgin was valued at about $50, 900.
After satisfying lien Of 50 800 the officers of the
Treasury Department by the advice of naval Off
GERS, painted her up with the intention of sending
her to New-York to be sold, as no advantageous
offer was made for her in New-Orleans. Having
got the ship in good condition, it was con-
cuded TO provide for the payment of the
expenses of taking her to New-York by
shipping a cargo of cotton. The amount taken
board not very great as the boilers and engines
of the vessel occupied much room as greatly to
reduce her carrying capacity. After leaving New
Orleans the Virgin stuck upon bar, and after great
dltfculty was again GOT afioat. Officers of the
Treasury Department think that every tug-boat in
The Mississippi River must have been employed in
pulling the Virgin off this bar. The bills for towage
that were presented seemed almost TO be without
limit, either number or amount. Having finally