Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-09
WEDNESDAY MORNING. JULY 9 1879

= - - AosOs
penses," leaving over 1921, 100000. OF this,
9.545,OOO have been returned to owners
under judgment of the court of claims,
VI ,623,0OO by the secretary Of the treasury,
$292,OOO under special act of Congress and
$l88,OOO under the act of May 10, 1872
in all, $11 ,648,OOO. This should leave on
hand over $15, SOC, 900, but the report of the
secretary of the treasury shows but about So
OOO,OOO on hand. What has become of the
other six and half millions the committee
could not learn.
This great raid and seizure of LII, 900
bales of cotton, however, was not the whole
spollation. Contrary to law, thousands and
thousands OF bales were seized by quarter
masters and other army officers and sold,
the proceeds never reaching the treasury.
In one year-May, 1868, to May, 1S64-the
chief quartermaster at New Orleans Col. s.
b. Holabild, received 12,779 bales, worth
at least $2,5OOO 900, yet he only acknowl-
edged 1884 900 net proceeds, and states that
this sum was spent for army purposes by
order of Geu. Banks.
COTTON FRAUDS.
1 From Aug. rs, 1865, to May 5, 1873, the
treasury paid to attorneys, agents and in
formers more than 100000 from the
money which belonged to owners of cotton.
One Charles Eamos and various partners
were paid within ten months of 1866 and
1867 $420, 900 by order of Secretary McCul-
Tough, $158, 900. being shared by Eames with
John A. Logan, then Representative and
now Senator from Illinois. In about eigh-
teen months of those years Mccullough
caused to be paid to S. 81. Kaufman, first
chief of the cotton bureau, $4,000; and
Kaufman soon turned up as partner with
Boss Shepherd and Geo. W.. Adams, CORES
pendent of the New York World, in owner
ship and management of the Washington
Star, which has been conspicuous in de-
Tending the District of Columbia ring and
belying the Glover Investigations. Robert
s. Hale, of New York, was employed as
special counsel of the treasury department
by Mccullough and Boutwell,, and was paid
1884, 1863 for services rendered in the course
of two years. James s. Frazier, of Indiana,
was employed by Secretaries Richardson
and Bristow to aid in adjusting cotton cases
under the act of May 10, 1872, and received
for services in the course of two years $15,-
513. Besides this, appropriations amounting
to $166, 900 have been procured by the treas
ury from Congress to be expended by that
department in defending the secretary and
his agents against suits for seizures, and in
defending suits in the court of claims, and
the department. of justice has secured in the
same time. appropriations of $285,O0 to be
spent by that department in defending suits
against the Captured and abandoned prop
erty fund"-$451,O0 900 in all, and the attor-
ney-general continues to ask an appropria.
ton for the same purpose of $4,000 every
year, though he and all his subordinates are
salaried officials, and though under the law
very few cotton cases are now allowed to &C
before the court.
Andrew Hosmer, Union officer, settled ir
Alabama in the spring of 1865, and raised q
crop of cotton worth about 100000. When
it was ready for market one of the treasury
thieves seized it. The cotton bureau kept
Hoemer out of his money for many years,
took from him one fourth as Commission
to the robber, another fourth as s'expenses,'
and returned half his property, minus ter
years interest.
MARINE HOSPITAL SERVICE.
DR.. John M. Woodwork, supervising sur
geon general of marine hospitals, testified
that under his management the marine hos
pital servica was not self-sustaining, though
he had doubled the tax on sailors and had (:
revenue of over $35O,OOO year to supper
the service with; that he had obtained from
Assistant Secretary Conant approval Of
vouchers for s. 700 travelling expenses, Will,
preparing report on cholera, which ex
penses, without authority of law, were take1
from the hospitol fund collected from sail
ors; that the register of the treasury's state.
ment never showed the true condition of the
Marine hospital fund, the registers figure!
being always better than the facts, and tha
he was not allowed to state the truth in hi
report because it would differ from the reg
ister's, and that there were often MANY I'M.
paid bills.
The Marine hospital, at Pittsburgh, wat
sold on Woodworth's recommendation fol-
$751;, 1000, verbal opinion being obtained
from the first comptroller that $4,000 al
ready received from sale of part of the
grounds could be used for new building
Gen. Negley engineered bill through Con
gress authorizing the sale and purchase of
new site. The sale being made, site wal
bought from Negley on recommendation o.
a commission of treasury clerks, designated
by Assistant Secretary Conant, for $3.50, 900
which, according to the best information
obtainable, was worth $4,000 or $4,000
Then the first comptroller discovered that tt
apply the $4,000 for a new building woulG
be unlawful; and Gen. Negley having got hi
100000 of sailors money, tho land remains
unused.
THE MINIS AND ASSAY OFFICES.
Superintendent Acton, of the New Yorl
off hoo h. LoI
ing checks in blank and leaving them thus
in the paying clerks possession. Last veal
eighty-two blank checks were found in the
Office with Acton's signature. This is vir.
tual desertion of his duty by Acton, for he
cannot know his clerks action or supervise
his payments A rogue in the paying clerks
place, or thief getting into the Office, could
fill up check for million, and it might be
collected and the parties disappear before
detection. If necessary the clerks counter.
signature could be forged. Superintendent
Dunning, Acton's predecessor, repeatedly
got checks made to his own order for sums
due public creditors. Then he Endorsed the
checks to the creditors and turned in thei1
receipts with the vouchers afterward. After
time he grew slow about turning in the
vouchers, and one day it was discovered that
he had collected $4,000 of these checks
himself.
Linderman bought in his wife'sY name, in
1874, $50 shares of the California and 12E
shares of Consolidated Virginia, the "Bie
Bonanza silver mines of Nevada, which
were controlled by Flood, O'Brien, Mackey
and Fair. For these he paid 80 per cent. or
less, about $25,00O. Before the committee
he called these $25,OOO every moderate
MEANS of his wife's. In March, 1875, he
bought of the Consolidated Virginia Dore
silver bullion, valued by the sellers at ST.
O23.00O, and paid them $1,0OO,OOO on ac-
count, without waiting for the assay to show
whether it was correctly valued, or SO per
Of of