The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-07-24
THE SUPPRESSED GLOVER REPORT.
Millions on Millions of the Public Funds
Stolen and Squanderet-Fraud Absolute
ly Unchecked and the National Finances
as the Mercy Of Thieves and Robbers.

Millions on Millions Of the Public Funds
Stolen and Squandere6-Fraud Absolute
1y Unchecked and the National Finances
uk the Mercy Of Thieves and Robbers.
Continued from Last Reek.)
1t is remarkable, and somewhat alarm
ing, that this corrupt and law-defying
Bureau has by its showing, printed notes
and bonds for which the Government is
liable to the extent, up to June 80, 1878,
Of Sc, ,550, ,000, 900, and that while it has
been conducted with extreme secrecy, it
has done $5,775, ,OGG, 900 within nine years
past, and also SIS, 200, ,O00,0 600 of revenue
stamps.
In 1873, when the panic was at its
height, George F. Gutter, then Navy
Pay Director at New York and now Pay
master-G General of the Navy, RENTED to
Pay Director Bradford at London $780,
600 to meet drafts drawn by Paymasters
oil over the world on Jay Cooke, Me-
Culloch & Co. Cutter bought bills of
exchange from Francis D. French, ex-
change teller of the First National Bank
of New York and New York agent of
Jay Cooke, McCulloch Gs Co., the very
house against whose threatened failure
the many drafts at London were to be
protected by renting to Bradford. Oct.
4 he drew from them New York Sub Treas
ury $500, 600, and Oct. 6 S181, 1923, and
paid them to French for bills of exchange.
This he did some days before the mail
left for London, and, as cash was then
worth 5 per cent. day in the market,
French and his associates were enabled
to use this half million to make 100000
or upward. Gutter swore that he did
this by order of Secretary Robson.
Thousands of dollars, the total not
being ascertainable without much lon
ger investigation, were found to have
been obtained from the Treasury as in
terest on registered bonds by forging
powers of attorney for their collection,
the forgers in many cases having confed-
eratesin the Treasury. Beside this, Treas
ury employees, who had means of know
ing to whom this interest was due, had
confederates outside who went to the
owners and told them-the existence of
the claim being forgotten or in some way
overlooked or unknown-that they knew
where there was money due them, and
could procure it, but must have half Tor
sheir services. This extortion was made
practicable by the Treasury taking no
steps to notify owners of the failure to
collect, and keeping the whole matter
profound secret. Geo. Sharp jenkins,
the man who seems to have been most
largely engaged in these eXtortions was
warned Of his approaching arrest by
some one in the secret, and fed the coun-
try; but not till package containing
$500 thus obtained and addressed
by him to the wife Of the clerk
in the First Auditors Office who
had furnished the information, had
fallen into the hands Of Maj. William B.
Moore, Supervising Special Agent of the
Treasury, who detected the operations.
Moore asked the detail of an operative
from the Secret Service to bell this de-
lection one Maxwell was detailed, who
had been appointed in reward for party
services in 1876, who afterward received
an appointment in the Army for the same
cause, who has since been sent to the pen
itentiary for misconduct in the Army,
and who seems 20 have played the spy
and done all he could to shield the par
ties concerned.
This inquiry, however, which seemed
to be desired by all the Treasury au-
thorities, while it related to extortion,
had very different fate when it reached
the forgeries. At the same time that the
package of $500 fell into Supervising
Agent Moore's hands, package was also
found addressed to the wife of the Inter-
est Teller of the Treasurer's Office con-
tanning valuable silk dress pattern.
This was kept by the teller, @. L. Jones,
till he learned that one of Moore's assis-
tants had inquired about it, when he re-
turned it to the sender, 81. nj. Williams,
formerly Deputy Collector Of Customs at
New York, who had been indicted for
completely in the Lawrence" frauds on
the revenue, and who WAS soon after de-
tected in fraudulently collecting un-
claimed interest from the Government by
forging powers of attorney. In three
cases it was ascertained that A. q. Wy
man, Treasurer Of the United States, had
learned of these frauds, and instead of
exposing Williams and having him pun
ished, had compelled him to refund
the money, and then surrendered
to him the forged papers that would have
convicted him. One of these three forg-
ed powers of attorney was drawn in favor
of Interest Teller Jones, who in paying
the many sums collected by Williams,
drew the check, in violation of regula-
tions, in favor Of Williams, instead of in
favor of the claimant, and gave Williams
other privileges. Treasurer Wyman
knew of Williams fraud before Moore
found the package addressed to Mrs.
Jones; but while he urged the .inyestiga-
tion of the extortion by outsiders, he let
Moore know nothing of these forgeries,
though Moore informed him of the find
ing Of the Jones package. Williams was
introduced to Jones and vouched for
while under indictment-by the Appoint
ment Clerk of the Treasury, j. w. Por-
ter. and by D. Baker, Chief of the Loan
Division of the Secretary's Office. Du-
ring the Glover investigation Baker re-
signed. Some of these fraudulent pay
ments we're made to Williams through
Middleton & Co., bankers, of Washing
ton. The head, s. E. Middleton, was one
of Treasurer Wyman's bondsmen, form
erly Cashier of the Treasurer's Office, and
in at least one case where Wyman re-
turned the forged papers to Williams,
Middleton & Co., at last accounts still
held the money, no effort being made by
the Treasury officials to compel its re-
turn, and Wyman is still a defaulter to
that extent. The startling facts were
discovered by the committee that Wy,
mans accounts had been passed and
settled as correct, this defalcation not
heing known to the persons who settled
hisacccoun.s except to his bondsman
Middleton, who said naught of it; that
the Treasury records do not show the
character Of the fraudulent payments;
that the sole means of detection is for the
owner to claim the money, and that the
j AL E..f~ ri l,NHr