The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1898-03-23
BOGUS TIME CHECKS
Said to Have Been Issued by a
.s,.s Government Clerk.
sTEALINGs SAID TO BE 100000.

Return For Government Work on tho
Upper Mississippi RIvor, ana These,
[ with the Bogus Ones, Were Cashed.
Washington. March 23.-Information
hns reached the government, through
e. number of banks ut st. Paul, Mimi,
that during the past year and more
these and other nearby banks have
heen made the victims of colossal
frauds through the suspected collusion
OF government clerks connected with
tine commission having in charge the
improvements on the Upper Mississippi
river The statements submitted by
the banks indicate that $780, 900 or more
has been procured from them through
fraudulent time checks for services
never performed. Copies of some of
these time checks are said to be signed
by.J. III. Southall, chief clerk of the
United States engineers Office at st.
Paul, and are dated at different times
during the year 1897. Others. it is
understood, are dated in 1896. The
government will begin a searching in
Yestigaton at once,
st. Paul, March 23.-Just how great
tHc Io5S Lie llHlc
check fraud may prove to be cannot
be known until an examination of the
books of the engineering department
has shown which checks are good and
which false. About three weeks ago
the local banks. which first became in
terested through some Hartford, Conn,
holders Of the paper began an in
vestigation and became satisfied that
the amount of checks out was far in
excess of the money appropriated by
the government to carry on the work
of the Upper Mississippi river.
After several interviews with South
all, In which it is claimed that he tried
to prove that there was nothing in the
claims, 1t is said that he finally ad-
mitted that fully rs per cent Of the
checks that are now outstanding are
worthless.
TO protect themselves the banks at
once took the stand that the govern
ment, having adopted scheme for the
payment of the workmen by 1t that
enabled an employe to defraud the
banks and other innocent purchasers
of the papers, should be compelled to
stand the loss. The filing of the claims
of the banks for the payment of the
entire amount Of the checks was made
in Washington, with the result that
the matter became public.
J.'H. Southall has been employed by
the> government for period Of more
than Is years up to six months ago.
At that time he resigned the position
Of chief clerk OF the engineering de-
partment in this city. being succeeded
by j. D. Dushane. 1t was announced
at the time that Southall retired from
the position of clerk that he had made
considerable money in speculation
In corn, and that he intended in the
future to devote his entire time to the
stock market.
His duties while he was acting as
clerk were to keep the time as turned
In by the foreman of the pay that was
due the workmen, and to pay them off
in these time checks The checks were
often bought up in large numbers by
speculators, were cashed by banks and
were held until the government was
prepared to meet the bills when South
all would receive a remittance direct
from Washington and would then de-
posit the money in his own name and
take up the checks with his individual
checks.
By doing this for period of Is years
his signature became perfectly we'll
known to all banks in this vicinity,
and his credit, with the government
back of the paper that he issued. was
considered as good as government
bond.
OF the 100000 or 100000 worth of
time checks known to be outstanding
probably less than one-fourth was held
by banks, and some Of these were held
by them for individuals. Two local
banks which failed Is months ago held
over $4,000, and nearly as much more
was held by Hartford. Conn, bank.
One man in Wisconsin, whose name
could not be learned had bought $4,000
worth of the checks, and $40, 600 more
had been taken as a good personal in
vestment by st. Paul capitalist. In
smaller amounts the time checks are
understood to be held all over the
country, and it will be some time before
the full amount can be learned.
Southall is at his home in st. An
thony Park under charge Of detective,
although it is stated that he has not
been formally arrested.