The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-10-29
FRAUDS And THEFTS.
How Uncle Sam Has Been Worked for
Money.


stealings and Schemes Involving
Large Amounts of Money -Precau-
tions Adopted.
From the Washington Star.
The theft of $4,000 from the govern
ment thirteen years ago by Capt. How
gate, who is now confined in the Jail here,
is only one of a very long list of frauds
and thefts by which Uncle Sam has been
made poorer The list of fraudulent
claims Of fraudulent pensions and of
petty thefts would make a large cata-
Iogue. But even the number of the con-
spicuous and important frauds is large,
and the amount of stealing they repre-
sent is considerable. 1t runs into the
millions.
The experts who have been at work on
the system of the treasury and the other
departments, and under whose recon-
mendation the recent organization of the
treasury department was carried out, pre-
pared some time ago statement of all
the frauds which had been passed by the
accounting officers of the treasury; their
object being to demonstrate that the
checks, which were considered such safe
guards, were really of much less value
than had been supposed. The first i'm
portant case to which they called atten~
ton (Mr Dockery acted as their spolzes-
man on the floor of the House, was that
of the disbursing clerk Of the Postot1ice
department, man named Burnside, who
defauIted in the amount of $4,000 in 1884.
This amount was received for the sale of
waste paper, old boxes, etc, between 1870
and 1884, and Burnside, instead of turns
ing it into the treasury, put it in his
pocket. Now the books of the superin-
tendent and the financial clerk are in
spected once a week, and a repetition of
this fraud would be impossible. The gov
eminent buys some experience rather
dearly.
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 eXpe-
/ diting the service of the postoflce depart
/ ment over what are known as "star
! routes''-routes covered by special con
| tract with carriers, which are indicated
/ in the postofice department list with ar
/ dSLeIlEk. II Il contract W DIS iilettlG " We
! liver mail once a week at a point 10 miles
from a railroad within 50 hours from leay-
! ing the railroad, for $1,000 a year, the pat
rons of the Office Gneluding the friends
and employees of the contradictory woult
petition for delivery twice week. BS
| collision with officials Of the postofiice de
partment, the service would be expedited
as requested, and the contractors woulC
receive double the sum agreed upon or
| iginal5y for the work.
| Then petitions would be presented fol
1 quickening the serVice-that is, shorten
ing the time of transportation. Tint
would mean another addition to the com
pensation, often quadrupling 1t. In abou
four months after July l, 1873, the cost o
the western star route service increased
about 81, 100000 a year. Then came publi
scandal, congressional investigation AM
indictments. Since the investigation q
the star route frauds the postofice depart
ment has stopped "expediting" the sta
| service. IF a contractor declines to de
liver the mail at a better rate of speed
the contract is Cancelled and a new con
tract is let to the lowest bidder.
But for the failure OF the urgent de
dciency appropriation bill in congress ii
1887 the treasury would have been robbie
Of $4,000 by an official Of the treasury de
partment named Harvey. He put through
the third auditors office bogus claims fo
e. ]
were approved by the controllers office
because they were regular on their face
and Harvey obtained $12 600 on them; blu
the additional sum which no expected
was not appropriated by congress, and be
fore another session q clerk in the thir
auditors office discovered the fraud an
the matter was investigated
Ninety-tWo per cent Of the money eN
pended by the government is advanced t
disbursing clerks in the different depart
ments. Many of the frauds on the govern
/ ment therefore, are tracked to disbursin
/ officers. only a few years ago the dis
bursting clerk Of the department OF justic,
q man namad Ewing was found TO b
short several thousand dollars, none
which had been advanced to him and fo
which ne had not accounted. The audi
ing depa rtment of the treasury was so ia
behind in It's work that be had no dil
{ tlculty In couceaHng the shortage.
Howgates frauds, which amounted I
b $4,000. were worked by means OF fraudl
lent vouchers. Howgate WAS diabursin
officer for the weather bureau.
l Tho e7nbezzlers and dcfauiters are M
: the oniy people who have robbed Unel
Sam A great many trusted clerks in N
treasury have taken money which bC
lougod to tine government. Where so man
/ people have the handling of money cor
] gtantly IL is surprising that So little
stolen The most famous treasury robber
occurred IN 1875 when Benjamin HallocI
a clerk IN the cash room, took $4,000
treasury notes Of $500 each. They wei
not new notes. n they had been their nun
bors would have been consecutive an
they would have been easy to trace. Ha
locks accomplices iu the theft were q 81
loon Keeper MINED Ottmau and "a ap0r
ing character known as 'BcRieg" Brow
They fell under suspicion, and directly 81
forward the secret service officers beEa
t0 shadow Halioek Eventually Hailol
was arrested ana be turned states cy
deaee. but NOT only Qid The other men e