Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1890-09-11
Attempted Frauds on the United States
Treasury

Among the l1herltanceS from the adj
of Mr.. Buchanan was an an
pllcation for the reissue Of lot of coupon
bonds alleged to have been DESTROYED.
The claimants proved the fact as clearly as
human testimony could-that these bonds.
each with SIX coupons attached. were de-
posted In a locked mailbag in Frankfort,
trans ported to Liverpool, and there de-
llvered into the hands of an agent of the
postotice on board Steamship which
was wrecked by collision, and went, with
all It's mails. and all but two or three of
those on board, to the bottom of the sea.
The completeness of the evidence was
itself a source of suspicion and, much to
the chrgrin of the claimants. Secretary
Chase affirmed the dicision of bureau Off
Ger that the duplicates should not be issued
except by the direction of congress. On
the application of the claimants at the
next session, congress passed an act di-
rectlng the issue of the duplicates. The
claim was again presented with the act,
and the duplicates were demanded. The
same bureau officer again represented his
suspicious to the secretary, and. with the
sanction OF the latter, the present regula-
ton was adopted, interposing delay of
twelve months after proof of the claim be-
fore the actual issue. This rule was We
hemently assailed by the claimants through
the press; they even charged the officer
with Intentionally multiplying the authority
of congress.
At this time the coupons of bonds re-
deemed were in packages in the registers
fiIe-room. There was little need of their
examination, and no attempt had been
made to arrange them in consecutive
order. Books were made with one page
appropriated to each bond, and space
for each coupon, while a force of CLERKS
was detailed to place each redeemed cou-
pom IN appropriate space.
At the expiration of the year the claim
ants came for their duplicates They were
assured that they would now be issued
unless some satisfactory reason could be
shown for their further delay The books
were sent for, and in their proper spaces
were found all the coupons 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
adverse claims being made, they were
paid.
What was the explanation of this mys-
terry? | do not know The pressure of
official duties and the anxieties of war
which occupied us so necessarily pre-
vented any further investigation, and the
inquiry into it will probably never be an
swered.
The next fraud which ] recall was a sue
cess as far as the department was concern
ed. The loss of money was prevented by
an accident
The course of proceeding for the collec-'
ton of claim for army supplies was usu-
ally this:
The contractor made his collections
through his banker. His monthly &C
count was made up in conformity with all
the rules of the War Office, and transmit
ted to that office with a letter of directions
where the draft should be sent. The War
Office approved the claim if correct, and
transmitted the account, the latter, and
the action of the war department to the
secretary of the treasury, by whom 1t was
sent to the proper auditor, whose d1ty it
was to admit the claim. If he decided
that the claim was proper one, 1t was
sent to the comptroller who revised TIE
action of the auditor, and, if correct, APP
proved it, sending the account with the
accompanying documents to the secretary
who issued the warrant for its payment.
This warrant was countersigned by the
controller, and entered on the books of the
register the treasurer then drew his draft
upon one of the repositories for its pay
ment, and the draft was sent by mail ac-
cording to the original letter of instruc-
ton, which constituted one of the file pa
pers The file was then sent to the regis
ter's file-room, and there remained. 1t
comprised all the papers, showing a COM
plete histoy of the transaction.
On the occasion in question the cashier
of one of the Washington banks came to
the office of the Register with draft just
issued for more than $50, 900. payable to
well-known Massachusetts contractor and
regularly endorsed 1t bad been present
ed by the head porter Of Wizards Hotel,
reliable man, who said thai the payee was
i'll and unable to leave his room. He had
therefore requested him to collect the draft
in notes, if possible, of 81 200 each.
Without any apparent reason the cashier
said his suspicious were excited, and he
went with the porter to the hotel to see
the payee and be sure that the transaction
was all right But the sick gentleman
rad disappeared. He had probably
watched the porter, and finding that there
was delay in the payment, had vanished.
The file was sent for, and the letter
found directing that the draft be sent to
the contractor at Wizards Hotel
He was communicated with by telegraph,
and said that the letter was forgery. He
had given che same directions in this case
as in his former collections.
his fraud was consummated by an out
81 der with the assistance of a clerk in the
Treasury. No outsider could have obtain
ed access to the files in order to remove
the true letter and substitute the forgery.
Such a fraud could not be prevented by
any system. Fortunately the suspicious
CT the prudence Of the cashier prevented
any loss.
Father and Son
There was an educational scene, says the
Minneapolis Times, down at the depot the
other day between man and boy, but 1t
was the man that needed the education,
not the boy. The boy came there to meet
his father and failed to bring some piece
of baggage that was expected. Il did
just as you told me to, papa, said the little
fellow, who was manly little chap. 81
told John to get it and put it in the car
riage and he didn t do it. ;"
Il don't believe you are telling me the
truth, " said the father in a loud bullying
tone" You forgot to say word about
it, and when | get home I'll settle with
You.
But, father, did
Hush up said the man sternly, while
the boys cheeks flushed and his eyes filled
with tears
seemed to be family factotum or coach
I,o+o fha 1o,oot o,11 Tho fa+b