The San Francisco call., 1897-06-20
NORTON LED
A BAD LIFE
FOR YEARS
Made False Reports and
Personated Collector
Welburn.
DEPUTIES AND AGENTS
ARE TO BLAME.
Government Agents and Others
Failed to Count
Stamps.
GROSS FRAUDS LASTED FOR
MANY YEARS.
Strange Lights and Shadows in the
Career of a Man Who Had the
Confidence of Every body.
GROSS FRAUDS LASTED FOR
MANY YEARS.
Strange Lights and Shadows in the
Career of a Man Who Had the
Confidence of Every body.

The scandal of the suicide and great
shortage of Cashier Isaac Norton of the
Internal Revenue Department stirs the
old red Federal building as it has not been
stirred in years.
Captain Thrasher, the special internal
revenue agent who made fame years ago
by his raids among the Tennessee Moon
Sinners" is taking up the tangled skein
left by the defaulting cashier, and will
have it unraveled by Tuesday.
Collector Welburn admitted last night
that the shortage in Norton's accounts
would run from S25, 900 10 $35 900, but
there is a possibility that it may reach
$4,000.
The Collector is very reticent and pre-
fers to stand the brunt of the blame him
self, rather than say anything that will
blacken the memory of the dead or reflect
on his friend and chief deputy, Louis
Loupe; yet those familiar with the business
of the internal revenue department know
that the Collector never had the com bina-
tion to any of the safes in the building,
and that he depended wholly on the
monthly reports of Chief Deputy Loupe
and the special agents whose duty 1t was
to see that the cashiers stamps tally with
the accounts of the bookkeeper.
II Special Agent Mclaughlin or his
successor, Cromwell, had carefully in
spected Norton's stock OF stamps each
month, as ordered to do by the Collector,
the shortage could not have remained un-
discovered for more than a month.
If Chief Deputy Loupe had made a per-
sonaI inspection of all the stamps on
hand every month Norton's shortage
would have been discovered in its incep-
ton, but the trouble was that every body
had too much confidence in the cashiers
honesty. thus giving him an opportunity
to tilch large sums from the sale, to which
he alone had the com bination.
Collector Welburn has always refused
to learn the com bination OF either of the
two big vaults or OF the cashiers safe. In
fact so long as Norton was respons sible
and under bonds tor what occurred with
the small safe he had the right to say that
nc one but himself should have access
thereto, except during the stated invoices.
The 5000, 900 or So, 100000 worth of
stamps in the large vaults have been found
to be practically undlsturbed, but the
shortage is in the cashiers safe. 1t is
supposed that the method pursued was
something like this: An order would
come in for $4,000 worth of stamps. Nor
ton would receive the money, keep $500
of it and report the sale as $500.
OF course this shortage could have been
discovered at the monthly invoicing had
Deputy Loupe and the special agent
personally counted the stamps, but
it is supposed that they took
Norton's word for these small
amounts, as they were generally worn out
after counting millions of dollars in the
large, hot vaults, particularly as the
amounts reported on hand always tailed
within few cents of the amount called
for by the bookkeeper.
The weary inspectors would say, be-
lieving in his honesty, like, what is on the
little tray?" and he would reply, II have
stamps valued at $125, 30" 1t would then
be found that the sum thus reported
agreed with the books, and Deputy Loupe
and the special agent would hand the Col
lector a lead pencil memorandum 10 that
effect.
The Collector was thus powerless and
could not have discovered the shortage
unless be had counted the stamps him
self. He always believed that Mr. Loupe
had made the personal count and so great
is his confidence in that gentleman that
he will not ask him to make good the
shortage, which could not have occurred
had Loupe personally made the count.
Loupe is under bonds for the faithful
discharge of his duties, but the revenue
agents, being merely Government detec-
tives, are under bonds to nobody and cam
not be held for their failure 10 make the
count, though the law makes it their duty
TO see that the books and stamps on hand
tally.
They are hired, in part, to watch just
such matters as the Norton shortage.
Collector Welburn has given more at
tention TO the Office than is usual, doing
all the disbursing, making OUT all the
checks and reports and attending to
vast amount of work Entrusted to clerks
by his pred ecessors.
He has been at the Office regularly, but
the shortages of Norton were beyond MS
power to discover unless he had done all
the work of the Office.
IL was discovered by Collector Welburn
yesterday that Norton made a con fession
to his brother. In letter that treated
largely of family affairs, written a few
minutes before he took the fatal draught,
he said: Il have defrauded the Govern
ment out of large sums of money, and 1
cannot bear to face Colonel Welburn.
Louis Loupe and Bert Thomas"
The unfortunate man also said in the
same letter that he had spent $500 left in
his care by Louis Loupe and others. He
begged his brother to repay the sum if
possible. In the letter he left his brother
were 5000 and his gold watch.
He stated that the money would pay
for the burial and go partly toward set
tling the debt to Loupe. II is supposed
that he wrote that letter few minutes