New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-23
ST. PAUL BANKS SWINDLED.
SAID TO HAVE LOST 10000 THROUGH THE
OPERATIONS OF MISSISSIPPI RIVER
IMPROVEMENT COMMITS
SION CLERKS.

Washington March 22-Information has reached
the Government. through a number of banks AZ 81
Paul. MINI. that during the last year and more
these and other banks near by have been made the
victims OF colossal frauds through the suspected
collision Of Government clerks connected with the
Commission having in charge the improve
ments on the Upper Mississippi River. Full,
details Of the affair have yet reached
the Government. but the statements submitted
by the banks indicate that $4,000 or more
has been procured from them through fraudulent
time checks for services never performed Copies
Of some OF these time checks said 10 he signed
by j. H. Southall. chief clerk Of the United States
Engineers office St Paul. and da ted diff
ferent times in 1897 Others. 1t IL understood. are
dated IN 1898 How the banks came to be imposed
upon TO the extent indicated. and why the checks
have been withheld until this time. cannot be even
conjectured II is understood that the banks will
make claim for reimbursement but the law Is
said here to be clearly against this contention. The
Government will begin a searching investigation at
once into the whole matter
81. Paul. Mimi March 22-Just how great tho
loss through the Government time-check fraud
may prove to be cannot be known until ex-
animation OF the books Of the Engineering De-
partment has shown which checks are good and
which false. About three weeks ago the local
banks which first became Interested through some
Hartford Conn holders OF the paper. began an
investigation. and became satisfied that the amount
appropriated by the Government to carry on the
work the upper Mississippi River After sew
eral interviews with SOuthall IN which. II Is said
he tried II prove that there nothing in the
claims. it is alleged he finally admitted that
fully p per cent OF the checks outstanding are
wort HESS
To protect themselves the banks at once took
the stand that the Government. having adopted
scheme for the payment OF the workmen en-
poyed by II. which enabled empoye TO defraud
the banks and other innocent purchasers OF the
paper. should h." compelled TO stand the loss The
films OF the claims of the banks for the payment
u the entire amount OF the checks was made in
Washington, with the result that the matter be-
came public
ment for more than fifteen years up to six months
ago At that tine he resigned chief clerk Of
III" Engineering Department in this city. being
succeeded by J. u. Dushanc. II announced AT
money In a speculation in corn and that he in
tended in the future to devote his entire time TO
the stock market. His duties while acting clerk
70 keep the time Of the workmen as turned in
by the foreman. and 10 pay them in these time
checks The time checks We're often bought up In
large numbers by spectators. We're cashed by
prepared 10 meet the bills when Southsll would
receive remittance direct from Washington and
would then deposit the money in his own name and
take up the checks with his individual checks.
came well known 70 all tho banks In this vicinity
and his credit considered good Cow
eminent bond. or the 10000 or 10000 worth ~
checks known TO be outstanding probably less
than one fourth held by banks. and some Of
thl- vas held by them for individuals Two local
banks which failed fifteen months ago held over
Hartford. Conn. bank. One man in Wisconsin,
whose could not be learned to-day had
bough, 900 worth u the checks and $4,000 more
had been taken by 81. Paul capitalist. In smaller
amounts the time checks are understood 70 be held
all over the country. and IL will be some time be-
fore the full amount can be learned.