The times., 1897-08-31

The poSt0ffice inspectors are on the traii
of Dr. Frederick s. Coburn. the Treasury
clerk and also manager Of the branch post
! office at the drug store at Ninth street
and New York avenue, who, they eIain,,
derrauded the United States Government
out Of several thousand dollars.
A letter was received at the drug store
last Saturday from the doctor, in which
he stated that he was in Boston having
/ sioriOus time. He directed the clerk in
charge of the store u look out for the busi
ness, and said that he would return after
be had made a tour of the New England
| States.
There was no reference to the fraudu
| lent practices, and the clerks at the store
/ received their first Information OF che af-
! fair from the story which appeared ex-
| clusively in The Times. Through an in
advertebce, the name of the man wanted
, by the pOstoffice inspectors was printed
Dr. Robinson Colburn, Mr.. Colburn is EN-.
! ployed in the second auditors s office, while
Dr. Coburn is in the sixth auditors service.
The similarity of the names and the fact
that they are both in the Treasury De
partinent caused the unfortunate error
Ar. Colburn is a man Of unimpeachable
honesty, and il is regretted that his name
was accidentally used in the story.
Cohurn drew a sufficiently large salary
from the Government to meet his needs.
but ii is stated that he was accustomed
to speculate. This cannot be confirmed,
but the inspectors are looking up the clew.
In the sixth auditors office DR.. Coburu
had a good opportunity to become famil-
lar witt the workings of the money order
system, and perhaps here evolved his al
legged ingenious plan for defrauding the
Government. II seems plausible that Dr..
CobuTn houeht the drug store with the
intention OF working his scheme. The
branch postoffice which is attached to
the pharmacy would afford the desired
means Of accomplishing his purpose.
IT. {. H. Groome and his partner, DR.
ROsborough, kept the pharmacy for some
years, but DR.. Groome moved TO Carlisle,
Pa, about eighteen months ago, and left
the business in charge of DR.. Rosborough
CoburE wanted To buy Groome's half in
terest in October Of last year, and it is
alleged that by false representation
Groome was induced to execute a bill of
sale. For tins Coburn agreed TO pay
81, l,33 5.56, Of which S556 was in notes
and for the remainder he would assume
GrOome' share of the firms Indebtedness.
A suit was filed last April by Groome
against Coburn and Rosburough 1t was
stated in tile declaration that the bill Of
sale was executed by Groome with the
understanding that Rosburough was TO
execute to Groome deed of trust on the
remaining half interest in the business.
Rosborough, however, refused to carry out
this agreement and soon af5er decided to
Coburn his interest in the pharmacy.
Judge Bradley heard the case, and de-
creed that RosbOrough be compelled to is
sue q deed Of trust to GrooIne to secure the
debt or S525, and that the second sale to
Coburn be decreed subject To d deed oi
trust.
the detailed story Of the plan operated
Toy Coburn as published in The Times has
been confirmed by the inspectors Coburn
would issue fraudulent money orders and
apprise tie postmasters Of other ci ties of
the issue. He would then go 10 the distant
office n person and cash the order The
scheme is new to the inspectors. The man
could work the scheme for some time with
out leiHg detected, until the regular quar-
terly accounting was held. C0burn did not
attract suspicion until the numerous cashed
money orders came into the department
and il was noticed that no returns came
from the Ninth street br anch office
The inspectors, after a casual glance
at the books, We're convinced that some
thing was wrong. They went to the drug
store for an explanation, but DR.. Coburn
had gone
The branch postoffice was removed, and
the books taken 70 the department No
explanation was made to the clerks at
the store, and they were of the opinion
that it was done at the request OF DR..
Coburn.
1t is not vet known how much money
was obtained by Coburn but it is alleged
to be from $4,000 to $4,000.