Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-10-20

theftS would make
large catalogue. But even the number of
the conspicuous and important frauds is
large, and the amount of stealing they rep
resent Is considerable. 1t runs into the
millions.
The experts who have been at work on
the system of the treasury and the other de-
partments, and under whose recommended
tion the recent reorganization of the Treas
ury Department was carried out, prepared
some time ago statement of all the frauds
which had been passed by the accounting
offlcers of the treasury: their object being
to demonstrate that the checks, which were
CONSIDERED such safeguards, were really of
much less value than had been supposed.
The hrSt important case to which they call
ed attention (AIr Dockery acted as their
spokesman on the floor of the Housed was
that of the disbursing clerk of the Post
Office Department, a man named Burnside,
who defaulted in the amount of $50 600 in
1854. This amount was received for the
sale of waste paper, old boxes ETC., between
1919 and 1884, and Burnside instead of
turning it into the treasury put it in his
pocket. Now the books of the superintend-
ent ana the financial clerk are inspected
once week, and repetition of this fraud
would be impossible. The government buys
eSAAS SAPSA AChNC ucdTly.
Star Route Frauds,
The celebrated star route" frauds are
probably the most conspicuous in the list
OF frauds against the government. These
frauds were worked under plea of expsdit-
ing the service of the Post Office Depart
ment over what are known as "star routes
routes covered by special contract with
carriers, which are indicated in the Post
once Department list with an asterisk IL
VI fandA Ialt,
week at point 10 miles from a railroad
within 90 hours from leaving the railroad.
Tor $l,oOO year, the patrons of the office
Including the friends and employees of the
contractors) would petition for a delivery
twice week. By coiiusion with officials of
the Post Office Department the service
would De expedited as requested, and the
contractors would receive double the sum
agreed upon originally for the work
Then petitions would be presented for
quickening the service-that is shortening
the time OF transportation. This would
me an another addition to the comnensation
often quadrupling 1t. In about four months
ATE" July i, 1878, the cost of the western
star route service increased about 81 300
coo year. Then came public scandal, CON
gressional investigation and indictments
Since the investigation of the star route
frauds the Post Office Department has
stopped "expediting'' the star service II a
contractor declines to deliver the mail al a
better rate OF speed, the contract is can
celed and new contract Is let to the low
est bidder.
The Horse Claims.
But for the failure of the urgent def
cheney appropriation bill In Congress in
1887 the treasury would have been robbed
of 10000 10y an official of the Treasury De-
partment named Harvey He put through
the third auditors Office bogus claims for
horses taken during the war These claims
were approved by the controllers office he
cause thew al,
Harvey obtained $1,000 on them: bnt the
additional sum, which he expected was NOT
appropriated by Congress, and before
another session a clerk in the third am
ditors Office discovered the fraud and tho
matter was investigated
Ninety-two per cent Of the money ex-
pended by the government is advanced to
dlsbursinS clerks in the different denart
ments. Many of the frauds on the govern
ment, therefore, are traced to disbursinp
othcers. Only few years ago the dis
Dufslng clerk OF the Department of Justice
man named Ewing, was found to be short
several thousand dollars. money which had
Deet advanced to him and for which he
had not accounted The auditing depart-
ment OF the treasury was so far behind in
Its work that he had no difficulty in con-
cealing the shortage.
Howgate's frauds, which amounted TO
sIIoooO. were worked by means of fraudu-
lent vouchers. Howgate was disbursine Of
ficrr for the weather bureau
The embeZzlers and defaulters are not the
only people who have robbed Uncle Sam
great many trusted clerks in the TREASURY
nave taken money which belonged to the
government Where SO many people have
the handling Of money constantly IL is sur
prising that so little Is stolen. The most
famous treasury robbery occurred in 1873.
when Benjamin Hallock. a clerk in the cash
room, took Si7, 900 in treasury notes of s.aO
each. They were not new notes IL they
had been their numbers would have been
consecutive and they would have been easy
q al
were saloon keeper named Ottman and a
sporting character known rs 'Peeleg''
Brown They fell under suspicion. and d.
, n atterward the secret service officers
began to shadow Hallcck. Eventually
Hailock was arrested and he turned states
evidence. But not only did the other mon
escape punishment through a disagreement
of the jury. but $l4 500 which was found
on deposit in Alexandra to the credit of
Ottman. and which was supposed to be a
part or the stolen money, was turned over
10 the counsel for the accused men. So the
government got very little satisfaction from
its prosecution of the case. That is the al
niost lnVariable record of the trial of per-
sons who have robbed the government.
Worn Paper Money.
Ine redemption of well-worn paper cur
| rency by the treasury has given ooportp
nifty for more than one theft. Every pre-.
caution Is taken against the abstraction of
airy OF the old currency after the treasury
mas given receipt Tor II to the United
States Express Company, and all possible
safeguards are thrown around the new
currency which is sent oat to replace il.
When the old currency is sent through a
subtreasury 1t comes to the department
sorted according to denominations. 1t has
been counted twice at the subtreasury. At
the treasury II Is counted again and sorted
according to the character of the notes. and
then according to series Packages are made
of Eotes of like character, and each pack
age is cut I'm half through the middle of
the notes. One package Of half notes is
sent to the Secretary's Office and the other
to the treasurer's office to be counted again.
and these offices are a check on each other
The final step Is the destruction of the old
notes under the eyes OF a committee OF
treasury employees, with one person not an
employee of the treasury. Meantime the
bank which sent in the old currency for re-
demption has been credited with it's value
and packages of fresh notes made up
in the treasurer's ONCE and shipped by
express. These packages. Of course, are
handled many times In their progress
through the treAsurer's Office.
when the redemption Office of the treas
cry was established. IN 1874, there were
defects In the system which made 1t possi-