The daily critic., 1890-07-02
nEFRArnlNa rHE treasury.
How Uncle sans Purse Has Hcen Bied
by Cunning sharuers.

by Cunning sharners.
LIZ. CIirtr1la u HqrYaH h71-iue
Among the inhtritouces from the
Administration of Mt Buchanan was
an application for the reissue of a lot
of coupon bonds alleged to have been
DESTROYED. The claimants proved the
facts as clearly as human testimony
could-ihat these bonds, each with six
coupons attached were deposited in q
locked mail bag in Frankfort trans
ported 10 Liverpool and there delivered
into the hands OF an agent of the Post
office on board n steamship which was
wrecked bv collision and went with all
its mails and all but two or three of
those on board 90 the bottom of the
sea-
The completeness Of the evidence was
Of itself q source of suspicion and,
much To the charrin of the claimants,
Secretary Chase affirmed the decision Of
a bureau officer. that the duplicate
should not be issued, except by the
direction Of Congress. On the appli-
cation Of the claimants at the next ses-
sion, Congress passed an act directing
the issue of the duplicates. The claim
was again presented with the act aud
the duplicates were demanded. The
same bureau officer again represented
his suspicious 10 the Secretary, and
with the sanction Of the latter. the
present regulation was adopted, inter.
posing a delay Of twelve months after
proof Of the claim before the actual
issue This rule was vehemcntly as
sailed by the claimants through the
press they even charged the officer
with Intentionally nullifying the au-
thority of Congress.
AZ this time the coupons Of bonds re-
deemed were in packages in the regis.
ter's file room. There was little need
Of their examination and no attempt has
been made to arrange them In conseCu-
tive order Books were now made
with one page appropriate TO each bond,
and a space for each coupon, while a
force OF clerks were detailed TO place
each redeemed coupon In its apprOpri-
ate space
At the expiration Of the year the
claimants came for their duplicates
They were assured that they would now
be issued unless some satisfactory rea-
son could be shown for further delay.
The books were sent for and in their
proper space were found all the cou.
pons which had been proved to have
sunk TO the bottom Of the sea. A few
months later the bonds themselves were
presented for redemption, and no adj
verse claims being made they were paid
What was the explanation Of this
mystery | do not know The pressure
Of official duties and the anxiety Of war
which occupied us so necessarily pre-
- fvgvr 1
the Inquiry will probably never be an
swered.
The next fraud which | recall was q
success as far as the Department was
concerned. The loss Of money was pre-.
vented by an accident
The course Of proceeding for the
collection Of a claim for army supplies
was usually this. Tho contractor m ale
his collections through his banker.
His monthly account was made mp 10
conformity with oil the rules of the
War Office, and transmitted 10 that
flee with q letter Of directions where
The draft should be sent The War
Office approved the claim II correct
eTd transmitted The account. the letter,
and the action OF the War Department
TO the Secretary Of the Treasury. by
whom II was-sent 10 the proper auditor,
whose duty Il was 10 audit the claim
If he decided that the claim was a
proper one, Il was sent 10 the comp
irollcr, who revised the action OF the
auditor and, If correct. approved H.
sending the amount with the accom-.
panying documents 10 the Secretary,
who Issued the warrant for rs payment.
This warrant was counter sigued by
the Comptroller and entered on the
books Of the Register the Treasurer then
drew bis draft upon one Of the deposi-
tories for its payment, ami the draft
was sent by mail according 10 the oTigi-
nal letter Of instruction, which cOnsti-
tuted one Of the file papers The file
was then sent 10 the Register file room,
and there remained. 10 comprised all
the papers, showing a complete history
Of the transaction
On the occasion IN question the cashier
Of one Of the Washington banks came
10 the Office of the register with a draft
Just issued for more than $50, 900, pay
able 10 a well known Massachusetts, con-
tractor and regularly indorsed. IL had
been presented by the head porter Of
WillaTd's Hotel, a reliable man, who
said the payee was Ill and unable 10
leave his room. He had therefore re-
quested him to collect the draft in notes,
If possible, of 81 900 each. Without
any apparent reason the cashier said his
suspicious were excited, aud he went
with the porter TO the hotel 10 see the
payee, and be sure the transaction was
all right But the sick gentleman had
disappeared. He had probably watched
the porter, and finding there was delay
in the payment, had vanished
The ME was sent for aud the letter
found directing that the draft be sent 10
the contractor al WillaTd's s Hotel He
was communicated with by telegraph
and said that the letter was a forgery.
He had given the same directions In this
case as In his former collections.
This fraud was COnsummated by an
outsider with the assistance of a clerk
in the Treasury. No outsider could
have obtained access 10 the files 10 order
70 remove the true letter and substitute
the forgery Such q fraud could not be
prevented by any system. Fortunately
the suspicious or the prudence Of the
cashier prevented any loss.
A Constant Reminder.