Waterbury evening Democrat., 1888-07-20
FRAUDULENT METHODS
Two Men Arrested for Conspiring Against the Government.
BROOKLYN NAVAL THEFTS.

Ex-Emp1oyee Daniel Laird Charged
 with Paving the Way for Bidders.
 He Claims that He Acted Under the
 Orders or His Superiors = Another
 Arrest Last Night.
 NEW YORK, July 2O-Startling disclosures of gigantic system of fraudulent methods practsed by the Government officials in the Brooklyn Navy Yard were made public yes- terdav
 Special agents of the Navy Department, who have been engaged for some time inves- ugating rumored crookedness, have gathered, it is said, sufficient evidence to prove that the Brooklyn supply station is honeycombed with fraud and that the conspiIators have succeeded in swndling the Government out of hundreds of thousands of dollars-possibly millions.
 Secretary Whitney has for some time, it appears, been in possession of certain in- formation concerning oNtonsive frauds in the matter of supplying provisions to the Navy. The Brooklyn Navy Yard is the central SUD- ply station, and most of the rascally work was done there, although it is believed that similar frauds have been practised in the other navy yards
 Recently the Secretary detailed Paymaster Allen, of tho Navy Department, to work up the matter, and with him was associated Col.
 
 Justice, who was specially detailed for the work. These gentlemen have been trying for several weeks to get at the facts, and their labOrs eliminated on Wednesday night in the arrest of Daniel Laird, of New Lots.
 Laird has been connected with the Brook lyn Navy Yard for the past twenty-six years, mainly in the storekeeper's department, where he held the position of superintendent of mills. It was his duty to receive the sup plies, and intending bidders were always ferred to him for samples of the goods wanted and other information.
 Laird was taken in a coach to the United States Marshal's offico in Montague street, and thence to the Raymond Street Jail, where he was locked up for the night. Yesterday afternoon he was taken hefore United States Commissioner Moric and waived an exami- nation. He was committed in default of $2, 500 to await the action of tho Grand Jury.
 It is understood that Laird is not the big game which the Government is after, as number of warrants have been issued and more arrests will follow.
 United States Marshal Stafford said to a reporter yesterday that it was largely owing to certain admissions made by Laird to the Government agents that tho big conspiracy was finally unearthed. When the Marshal arrested Laird at the picnic the latter said:
 What did was done under orders, for was merely subordinate If 1 open my mouth to make statement will shake the two cities from foundation to roof
 The method adopted ly the conspirators was very simpc and yet very successful. c. J. Coughey, q salesman in the employ of Francis H. Lcggett X Co.,, wholesale grocers, of New York, may not havc been the first bidder to discover the scheme, but he was the first to lay the evidence of the fraud before the Navy Department.
 In May last the Navy Department adver- tised for proposals for 5000 pounds of tea. MT. Coughey, an intending bidder, applied for information in regard to the quality of the tea wanted and was shove q sample much better than the Department desired and he bid according to the sample. His bid was 3S cents per pound. John G. Mars, who, it is al- legged, is one of the consprators, bid on an inferior sample at 25 cents and was awarded the contract
 Mr. Coughey claims that he could have underbid Mars on tho same quality, but as he didn't get straight tip" his proposal was away off," When the goods were delivered there wasn't very close scrutiny and the officials who permitted the fraud got their "divvy' and the contractor pocketed pretty balance of profit
 So with all other supplies, whether of food, medicine, clothing, furniture and tho like. United States Marshall Stafford says: Tho whole business of the Supply Department of the Navy Yard is now being investigated and still greater revelations will be forthcoming shortly. Several warrants have already been Issued and arrests may be expected at any hour.
 At o'clock last evening Deputy United States Marshalls Biggort and McCullom brought John G. Mars into United States Commissioner Morle's office. Mars had been arrested at his home in Jersey City, late in 1 the afternoon. He made no resistance, and was hurried down to the Annex boat and l taken direct to Brooklyn. At a late hour last night he had not obtained bail, and he was | locked up in tho R&yinAHd Street Jail.
 Mars is employed as a cic:'k by the firm of Houghtaling X Co.,, wholesale dealers, of New |