Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1898-03-26
SATURDAY. MARCH 20, 1898
AN ALLEGED Big STEAL
Government Clerk Said to Have Is
sued Bogus Time Checks.
sTEALINss DECENTRALIZATION

The Genuine Checks Were Given In
Return For Government Work on the
Upper Mississippi River, and These.
With the Bogus Ones, Wore Cashed.
Washington. March Authorization
has reached the government, through
a number of banks at St. Paul. Mimi.
that during the past year and more
these and other nearby 6anks have
been made the victims OF colossal
frauds through the suspected collision
of government clerks connected with
the commission having in charge the
improvements on the Upper Mississippi
river. The statements submitted by
the banks indicate that 100000 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. II. Southall. chief clerk of the
United States engineers office st 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
vestigation at once.
st. Paul, March 23.-Just how great
the loss through the government time
check lSaud may prove to be cannot
be kndR n 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, II is said that he finally ad-
mitted that fully 25 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 a scheme for the
payment OF the worlxmen by IL 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.
]. II. Southall has been employed by
the government for a 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 ]. ID. Dushane. IT was announced
at the time that Southall retired from
the position of clerk that he had mad,
considerable money in a speculation
in corn. and that he intended in the
future 20 devote his entire time to the
stock market.
His duties while he was acting a:
clerk were to keep the time as turned
in by the foreman of the pay that wa,
due the workmen. and TO pay them of
in these time checks The checks wer,
often bought up in large numbers b,
spectators, were cashed by banks anS
were held until the government wa
prepared TO meet the bills. when South
all would receive a remittance direc
from Washington and would then de
post the money in his own name an,
take up the checks with his individual
checks.
BY doing this for period OF 10 year
his signature became perfectly wei
known to all banks in this vicinity
and his credit. with the government
back Of the paper that he issued. wa
considered as good as a government
bond.
OF the 100000 or 100000 worth O
time checks known to be outstandin
probably less than one-fourth was he'll
by banks. and some of these were hek
by them for individuals. Two locs
banks which failed 10 months ago hel
over $4,000. and nearly as much NOR
was held by Hartford, Conn, banl
One man in Wisconsin, whose nam
could not be learned, had bought $64, OK
worth OF the checks, and $4,000 nor
had been taken as a good personal IL
vestment by 8 St. Paul capitalist. ]
smaller amounts the time checks al
understood to be held all over tn
country, and it viii be some time befol
the full amount can be learned.
Southall is at his home in st. AL
thony Park under charge OF a detectiv
although IL Is stated that he has n,
been formally arrested.