The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1901-03-13
sHEALIN GS OF 4 CENTURY
Losses to the Government Amoum
to Sl6,000,OOO.
HOW SOME OF IT IS RECOVERED

Many Defaulters Joined the Army Dur
ing the Spanish-Amcrican War Guv-
ernment Kept Their Salaries, Which
Were Applied on Their Old Indebt-
edness-The Record of fEmbezzlcmcnts.
Washington, D. C.-In 10 years the
gross receipts of the United States
Government have amounted to S32,-
663.313,54S.13. In that time the Gov
ernment has lost through dishonest
agents and officials approximately
S1G,000,000. Gradually portions of
these defalcatiOnS are being collected
by Uncle Sans agents. Occasionally
some bondsman Of a defaulter. who
failed to make good his pledge, has a
oalance due him from the Government
from some contract secured or serv-
ices rendered, which is withheld and
applied to his former indebtedness.
In this way a considerable portion OF
the $16,000,000 due the United States
IS gradually being collected.
ACCOMPLISHMENTS were numerous IN
he SpaniSh-American war. A num-
Der OF men who were defaulters, or
who had been on the bonds Of dis
honest agents of the Government, Sc
cured positions in the volunteer army.
In some cases their unsatistied oblisa-
tions had been running on for pc
riod of forty years. They supposed
that the account mad been lost sight
Of by Uncle Sans agents. Imagine
their surprise when the paymaster
visited their regiment and rendered
them, instead of their salary, certii-
cate of receipt for the amount of
money due them, which had been ap-
piled on their old Indebtedness to the
Government. In that way a good
many thousands of dollars were col
lected in 1895 and 1899.
At the Solicitors office in the Treas
ury Department is kept minute rec
ord of all Government creditors whose
terms of service has expired. This
record dates back to 1889. 1t includes
not only a list of defaulters and em-
beZzlers, but q list of their bondsmen
rs welt In some cases the amounts
are small, while in others they extend
into thousands Of dollars. In nearly
every case the defaulter had given a
bond which proved worthless or was
insufficient to cover the amount Of his
shortage. In some cases not n dollar
was realized Oh the bond which had
been accepted by Uncle Sans agents.
1t is an interesting fact to note that
for twenty years after the orSaniZa-
ton of the Government there was not
a single defalcation. From 1920 to
1910 shortages in the accounts OF the
Government officials became numer-
Gus, and from 1910 to 1860 there was
q very marked increase. The ten years
from 1860 to 1870 exceed any similar
period. as the opportunities for EN-
bezzlcments were greater. The Post
office Department has been since the
beginning of the Government the most
opulent field for the defaulter. Short
ages in the accounts OF postmasterS
from 1920 to 1880, when the system of
inspection became extremely rigid,
were Of frequent occurrence. In most
cases, however. the full amount Of the
defalcation was collected from the
bondsmen. In about ten per cent. OF
these defalcations, however, the bonds
proved to be practically worthless.
and Uncle Sam became the loser.
Shortages for small amounts were
usually paid promptly by the bonds
men, but when it came to settling for
a large amount it has been more ditfi-
cult.
The Internal Revenue service from
the beginning of the Government to
the present time has been remarkably
free from dishonest officials. There
is not case on record in the Treasury
Department of an Internal Revenue
collector being a defaulter. Treasury
officials are at 4 loss to assign rea-
son for this. as the system Of inspec-
ton is no more rigid, and as the
amount of money handled by Internal
Revenue collectors is greater than that
handled by any other officials of the
Government.