National Republican., 1884-06-21
NAVY DEPANIMENT'
BUREAU OF MEDICINE AND SURGERY,
IQNp

For tho medical department of the navy for
ships and statlous.
Mr.. Dempsey fatty denies that he has in
way been guilty or cogniaant Of any wrong
doing and was Indignantly surprised at the
attempt to implicato him In these frauds,
and declares that his books and papers will,
on investigation, fully establish his inno-
cence.
Kirkvood on hearing of the new warrant
against him went at once to the police court
at about $50 p. NJ, and gave additional bail
in the sum of 81 900, making S6,OO) III all.
James ID. Cumming who was arrested
Wednesday night, was bailed Thursday night
in the sum Of $1,000, with ID. Loughran, the
cigar dealer, as security.
Detective Wood asserts that he has evidence
of the existence of q similar system OF fraud
in other bureaus of the navy department,
and the order Of the secretary of the navy, as
printed below, is designed to cover the inVes-
tigation of other bureaus
Secretary Chandler said yesterday alter
noon that he had no new Information TO
make public, but that he had ordered court
of inquiry, which would investigate every
thing in the department relating to the frauds
in the bureau of medicine and surgery, and
of other bureaus
The work of examining the books and
vouchers for the suspected existence of other
frauds became SO extensive that 1t became
necessary yesterday morning to issue tho
following order:
NAVY DEPARTMENT, wA7HTNGToH, June 20, lSsi-
A court of inquiry, Of which Commodore James
H. Juuett, U. S. n, Is hereby appointed president,
and Medical Director George Peck U. ). NJ, ana
Pay Director Thomas II. LOCKER, U, 5. n, mem
bers ana Paymasier Jonathan q. Barton, U. 5. N,
judge advocate, is hereby ordered TO convene ln-
mediately at the navy department. washington,
D. c., for the purpose Of investigating the frauds
recently pfaCticed. by means OF false and fraudu-
lent vouchers, in the bureau of medicine and
surgery in said department The court WIZ re .
NsafN all
discover to be fraudulent, in whole or III. part,
with the circumstances IN each case.
The court VIII inquire INTO me system. 81 max
ing purchases aud payments in that Bureau, in
cluding all forms and safeguards adopted to
secure honest results, and Will Compare that
system with those of the other bureaus, ana will
also asce rtaln whether or not there has been in
recent years any change IN the system; and II so,
whether 1t has tended to insure greater security
for the government or the reverse, The cOurtwill
not only ascertain who has prlcticed dishonesty
ana iraud but also whether any per'on has been
-'Eui- df 1iegiiGenr0 or fneiliciency which has
contributed to such dishonesty ana fraud or 10
loss to the government.
The eout Will report upon all the above points
at inquiry, and also its opinion concerning " .
conduct OF all officers of the navy or civilian oil-
terS and employees Of the department In any way
cnnnectec with the transactions investigated.
If the prog ess Of the Investigation leads 10 the
disclosure Of any similar frauds connected with
any other bureau OF the navy department. or WIN
any of the naval expenditures, the court Will
proceed TO investigate and report upon the same
This employment on shore duty Is required By
the public interests, and such service VIII con-
tiunt until Sept l. 1881 uule,s II is otherwise or.
dered WM. i. CHANDLER,
Secretary OF the Navy.
Commodore Jouett is in New York city OIL
duty, Medical Director Peck is at his home
at Elizabeth, N. j., and Pay Director LOCKER
and Paymaster Barton are here. The cour
will probably meet to-day and organize, a
Commodore jouett aud DR.. Peck will roacl
here this morning
Nothing has yot been definitely heard as t.
Carrigan's whereabouts, but 1t is probable
that he will be found in few days
The navy department and fourth auditors
officials refuse to give any information as Il
other persons who are suspected of complicit.
in similar frauds, but it is known that othe
questionable vouchers have been discovered