New-York tribune., 1890-01-29
s15,o13 25


hereby certify that the above is true statement
THOMAS A. JARDINES. Auditor
The statement does not contain any reference to
the fund for the erection OF a monument to Post
master Pearson. The money collected for that pur-
pose is yet part Of the POstoffce funds, and Mr.
Lounsbery had charge Of 1t private individual
He might have deposited the money in any bank
but it was supposed that it had been kept In the
postoce building. Five hundred dollars Of the fund
cannot now be found.
Postmaster Van Cott said that some information out
side Of the facts developed in the examination had been
obtained as to the manner in which the money had
been taken. Some cews had also been obtained
and further investigation might result in new dlscov
cries. He made formal statement in which he
said:
The Postmaster declines to make any reply 70 or COM
ment upon many absurd and ncorrecs statements rep0u
TO have made by various persons In connection WIN
this unfortunate matter further than to say thaU hos
hos hean developed which affords slightest ground for
aspersons integrity OF OF the present epoye
Of the Office good faith OF the officers Who nave the
Investigation in their charge lie Is conhueht vi Ills ~
v to present such facts will conyince all eohcerneu
that the deficiency is solely to the dishonest pacces
Of the late cashier through methods against wch no sue
guards could been effective Making que allowance
for The natural sympathes and prejudiceS wae may nav
prompted the reported utterances OF MI houiso,9
riands and relatives and the naturally interested motives
which others may had in seeking TO dNert 'e sp
sbility for misdoings, the Postmaster ooes no. %
the
evidence in his possession (Which includes 1acs "hch 1T
M h,,c interest and in OF his surees ne iS ao
yised to reserve the present. VIII clearly sno" %
,here s no foundation for other theory 'hah s' VI
deliberate embezzement by the cashier "i'iou' ~
or conniyanoe from any quarter
The clerks in the cashiers Office have been care
fully examined and have given information that gives
grounds for Mr. Van Colts belief that the teis "ero
deliberate. 81. -, =,
papers were served yesterday in suit begun by
II.
F. Washburn and John Moonan, the bondsmen oil the
aofaurinr cashier. The Postmaster seeks to recover
tbe amount of the loss from Lounsberys defalcation
The complaint in the case need not be served uh'i
twenty days have elapsed, but Assistant postmaster
Morgan whose legal experience Is valuable 10 tie
postmaster believed that suit should be begun at
once TO prevent the bondsmen from attempting 10
transfer their property. An attachment was issued
AGAINST Mr. Huffman, who is not resident OF this
state and deputy sheriff was placed In charge oi
his place of business, and his BANK account anu o'
personal property were attached. A lis pehueii'
was also filed against the property In Ihr'y ioursn
st on which the Office Of Huffman d Co.
A. si,,ated The propcrty was bought In 1854
nv Messrs Huffman, Lounsbery and G. +. James, u'e
last mentioned being son of OBSERVATION-DISCLOSURES
James, Mr. James is not now partner III uic n'i"'
The property was bought for S14,ooo ana Is ho"
probably more valuable, although the Fostohoo
authorities have learned that it is mortSaged nome
and no information as to their purposes was received
Postmaster Van Colt denied that there was any truth
in the reports of unkind feeling on MS part against
the cashier lie said that on the contrary he XIV"
trusted him implicitly at first, and the casmer Vou
him that Mr.. Van Colt had treated MIN more corui'nS
than any of his predecessors
Chief Inspector Wheeler and his assistants were DuSy
Yesterday at one phase of the investigation, ana
they may be able to trace some part Oh Tie s'oich
money They refused to say anything about any dis
coverics they have made
The reports Of Lomsbery's losses IN speculation arc
believed at the Postofce. and some factS aiieauS us
closed strengthen the belief. lie had lost IL Is said
large sums of money in dealings in sugar Trust ccrtn
Gates and in stocks. He apparently used tne roSV
offce funds rccessy after January lav J, what he in
tended TO do referring reporter to George Bliss HIS
0oui'0 cannot say what Mr.. Huffman and The other
bondsmen will do" SAID Mr. Bliss, that Is not mat
Ter for the press. but lies wholly between cheh' al"
No attachment has been served on the other bonds
The mortgage on Mr.. IIufman's Thirty foarthst.
uroperty is said be for from 81 900 to 81 o,ooo;
There mortgage on lie IN IT. ys rbeesore hesSSr p Imsn
ms wife, Corneia NJ. Huffman, George IL; Louhspeiy
and his wife Carrie Loanseef and nor IeSry b. HyGc
executors and trustees of the estate OF the iate Wra
SIoane covering the real estate at No 600 West
nitv fourthst and the building standing and those
10 % NJ Hyde and Mr. sloane out of the city but
ramnnd ;;ofn Mr. Sloanes attorney, who has charge
neas an snonrps OF tbe william Sloane estate said
I'VE loaned Huffman Co. the money 10 pa' up up a, srT
,niIding with | know nothing at all about inc hrnl,
or abont MIR. LounsbeIy personally. lhe moroFase
stilI holds good in preference 10 ai o''er ''''"'
William Y. Frazec of Frazee & Co., hay merchants.
rbirty fhird-st and Eleventhave., said: Il nave
known Mr Huffman for the last ten years ever siiee
ha vas clerk with T. Lenanc d. Bro lie went lhto
business here feyen years ago ~''n ndetoog the hay
md grain business from his connection with Lcnanc.
md they 0Ounsbery and james, furnished the
capital at least so we IN tne au1 ,,ndrew from the
firm for causes not stated. They always pdlu IneT
bills promptly, and it was unoerstoou Ia' 1o 9 % liz
partners had an outside income, ov Inherited nv his
wife I shouM saw there was enough In IiuflInans
business TO pay this shortage unless terc are apos
unknown to the trade Mr. LouiisDeIS a ,a, hn had
some money in the business, or Mr.. Thurman w0dd
not keep him there. Tie business must nave hau
money from some place. Mr. Thurman Is n1t sup
posed 10 have put in much money II any. mus W. Mo
are led 10 surmise that Mr.. Lounsbery was the
capitalist Of the firm" a. -,
Thonas Lenanc OF the wholesale hour, grain
feed hay and straw firm OF Leane bTo.gr hcener nc
with us a number Of years. When he dcclued 10 20
into business for himself he came 10 my brother air
saying that he about to 90 into business WIN
asked my brother II lie could lend MN Sl,oOo or
81, 900. Ny brother told him he could nave nc
money. But when Mr.. Huffman had ORGANIZED ms
firm and started In, nc said he would not necd inc
money. The firm has been very prosperous
understand their business is worth $4,000. but
il is not possible that II pays $4,000 year TO eacn
hree years after It started and II he left money IN
ihe business ] have never heard Of IT, and yet the
business continued right along the same as bciorc'
which shows there must have been money! .,,
Where Lonnsbery's money went 10 Is Sun q
mystery The evidence of every one acQualntea WIN