The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1879-07-17

Co. checks for ST. 023 900 pnder lns.rnG,
tions from Lindeman. when bus SbO0,OUO
worth of their silver had been assS yed
Superintendent Acton ofthe New YorS
Assay Office, has been in the habit OF
signing checks in blank, and leaving
them thus in the Paying Clerks possess
ion. Last year eighty,two blank checks
were found in the Office with Acton's
siguature. This is a virtual desertion OF
bis duty by Acton, for he cannot know
his clerks action nor supervise his pay
ments, A rogue in the paying clerks
place, or a thief getting into the office,
could fill up a check for million, and it
might be collected and the parties disap-
pear before detection. If necessary the
clerks countersignature could be forged
Sup't Dunning Acton's predecessor, re-
peatedly got checks made to his own or
der for sums due public creditors. Then
he indorsed the checks to the creditors
and turned in their receipts with the
vouchers afterward. After a time he
grew slew about turning in the vouchers
and one day it was discovered that he
had collected $4,000 of these checks
himself
Linderman employed more than a
score of persons in visiting mints and
assay offices, attending annual settle
ments, and assisting him in doing 80. for
which he spent in four years over $ll.
600. He paid his son, 10 years old, and
not in the public service, So 757 for less
than six months service. The law does
not allow travelling expenses to any one
but the Director; up to Oct l, 1877, ne
received $4,000, charged to this account
Frank H. Gassaway, man of notorious
character in Washington, received ST.
668 79 for taking an inventory (l6 pages
of foolscap), of furniture and fixtures at
the San Francisco mint. At the close OF
the Linderman investigation of that
mint in 1877, but before the report was
made the superintendent, La Grange,
who was removed in consequence OF
that investigation, presented Linder'
mans wife with ST 900, saying it was
present from the employees of the mint.
Some OF the employees, it is said, COM
planned afterWard, that they were com.
pelled to contribute, and could not afford
it.
When Prof. Robt. E. Rogers Of Phila
delphia, +. 0. LeeCh of the Mint Bureau
Washington, and A, w. Downing, Chief
of the Coming Department of the Phila-
delphia Mint, were sent 10 San Francis
co to attend the yearly settlement OF the
mint, Linderman instructed Sup't La
Grange to pay their travelling expenses
and $l0a day to Rogers from the profits
of fractional coinage. Before the Glover
committee he swore he had never used
these profits thus, but the record convic-
ted him.
Llnderman bought in his wife's name,
in 1874, $50 shares of the California, and
125 shares of Consolidated Virginia, the
big Bonanza" silver mines of Nevada,
which were controlled by Flood, Mack.
ey, OBrien and Fair. For these he paid
80 per cent or less, about 1926 600. Before
the committee he called these So 900
'very moderate means" of his wite's. In
March. 1875, he bought of the Consolida-
ted Virginia Dore silver bullion, valued
by the sellers at $l,023 900, and paid
them 900 600 on account, without wait.
ing for the assay to show whether it was
correctly valued, or 50 3 per cent of the
value as afterward ascertained. The
company got their money two months
before completion of assay, and we're
thus enabled to make 15 600 interest,
In June, 1875, he bought of them impor.
ted silver bars valued by them at 1900.
600, and paid them LAPS QUO down over
tWo months before completion of assay,
and enabled them thus to make 20 600
interest. The essay showed the bullion
worth but 1887 600, or 6S 900 short of
the valuation, 30 that he paid them in
advance 98 6 per cent of the value, run
ming great risk of overpaying. The
bullion was paid for at 2l4 aer ounce
fine metal, delivered at San Francisco.
The express charges were paid by the
Government to New York from the prof.
it's on fractional silver coinage, instead
of being paid by the sellers, and the ex-
pense at the assay Office were paid by
the Government without authority Of
law. These expenses amounted to 32'
600, which made the silver cost the Gov
ernment 1884 per fine ounce. The
market valae was "a 80 that the pur-
chase, as well as costing 92 600 more
than Linderman pretended, cost $4,000
more than it could have been bought for
elsewhere. Linderman also directed Su-
perintendent Acton to- pay 1000 more
than the assayed value of the gold in
the purchase, the sellers claiming that
the assayer had made mistake" Ac.
ton replied that there was no authority
to pay it, but at Linderman's direction,
after seeking to throw all the RESPONSE.
bility on Linderman, he paid, and charg
ed it to "pro6t and loss"
Prof. R Z. R gers OF Philadelphia, an
other stock kholder in the Consolidated
Virginia, the sellers, was employed by
Linderman to make an examination"
and of course reported strongly in favor
of making the payment. Wm. q. Dubois
Assayer at Philadelphia, protested very
much against correcting" assays at the
instance of outside parties, saying this
destroyed the reliability of assays. The
payment was hidden ia the Directors
annual report for 1877, by calling it
"wastsge," when no wastage, but IA 900
saving had occurred. The payment took
place without the knowledge of the
New York Paying Clark, and unauthor.
lied by the Sec'y of the Treasury. The
purchase altogether cost about 65 600
more than was pretended. In the same
month Linderman also took off the com
pany's hands nearly 1000 600 more sill
yer than they were anxious to sell.
Jan. 1875, the Bonanza stocks, under
the effect of wild reports about the mines
were very high in price. Consolidated
Virginia reached $50. Linderman's 25.
300 worth of stock was worth once 200.
900, But it fell by October to 2lO, and
California, the other part Of the Bonanza
TO 25O. So it was bulled again. In the
summer Of that year Linderman visited
California on official business, sought
conference with the managers of the
mines, and arranged an inspection of
hem. He and Prof. Rogers then, or
oon after, q holder Of 10000 or more
tonLr - 1haoa y,ainaa insnanfad than