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 SQuandered-Fraud Absolute
~ Unchecked aid the National Einnnces
at the Mercy of Thieves and Robbers.
Continued from Last Iyeek.)

ing, that TINS corrupt and law-delying
bureau has by its showing, printed notes
and bonds for which the Government is
liable to the extent, up to June 80, 1873.
OF S6,55O, ,O00, 900, and that while it has
been conducted with extreme secrecy. it
has done $5,775 900 900 within nine wears
past, and also $l3, ,000,000OOO Of revenue
stamps.
In 1873, when the panic was at its
1eight, George +. Cutter. then Navy
Pay Director at New York and now Paw
master General Of the Navy, remitted TO
Fay Director Bradford at London $500
OVO to meet drafts drawn by Paymastcrs
al over the world on Jay Cooke, Me-
Culloch d Co. Cutter bought bills of
exchange from Francis o. French, ex-
change teller of the First National Bank
OF New York and New York agent of
Jay Cooke, McCulloch & Co., the very
house against whose threatened failure
The many drafts at London were to be
protected by remitting to Bradford. Oct.
4 he drew from the.New York Sub-Treas-
ury 100000, and Oct. $1Sl 1928, 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 8 per cent. day in the market,
french and his associates were enabled
to use this half million to make $4,000
or upward. Gutter swore that he did
tr 8 by order of Secretary Robeson.
Thousands of dollars, tho 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.
crates in 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
coulc procure it, but must have half for
their services. This extortion was made
practicable by the Treasury taking no
steps to notify owEcrs of the failure to
collect, and keeping the whole matter q
profound secret. Geo. Sharp jenkins,
the man who seems to have been most
largely, engaged IN these eAtortions was
warned OF his approaching arrest by
some one in the secret, and fled the coun-
sEo; try but not till package containing
soN ehlio Suu SHluTcSSeQ
6y him to the wife of the clerk
had furnished the information, had
fallen into the hands of Mai. William b.
Moora, Supervising Special Agent of the
treasury, who detected the operations.
Moore asked the detail of an operative
from the Secret Service to help 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
itontiary for misconduct in the Army,
and who seems to have PLAYED the spy
and done all he could to shield the par
tie3 concerned.
This inquiry, however, which seemed
to be desired 1y all the Treasury au-
thorities, while it related to eStortion,
had very different fate when it reached
the forgeries. At the same time that the
package Of $500 fell into Supervising
agent MCore's hands, package was also
found addressed to the wife OF the Inter
est Teller of the Treasurer's Office con-
tanning a valuable silk dress pattern.
THIS was kept by the teller, G. l.. Jones,
till he learned that one of Moores asss-
tnnts had inquired about it, when he re-
turned it to the sender, II. M. 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-
tectcd in fraudulently collecting un-
claimed interest from the Government by
forging powers of attorney. In three
cases it was ascertained that A. u. wv
man, Treasurer of the United States, had
learned of these frauds, and instead of
exposing Williams and having him pun
ishef, 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 reguia-
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 tine package addressed to Mrs.
Jones; but while he urged the investiga-
ton of the extortion by outsiders, lie let
Moore know nothing of these forgeries,
though Moore informed him Of tho find
ing Of the Jones package. Williams was
introduced to Jones and vouched for
while under Fundamentally the Appoint
mcnt 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
.nents werc 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 tho forged papers 10 Williams,
Middleton & Co., at last accounts still
held the money, no effort being made by
the Treasury officials to compel its re-
tr-n, and Wyman is still defaulter to
ti,t 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
his sacccoun;a 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
fraudulent transaction and the forged sig
nature to the receipt for the money were
scratched Off the Treasurer's Office rec
ords. Tnis unclaimed interest has at
times been several millions in amount.
When not called for after long time, it
should revert to the Government, but the
Treasury has taken no steps of this kind.
1t turns out that Charles +. Conant,
Assistant Secretary of the Treasury, was
Intimate with tho fcIger and swindler