The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-28
DELIBERATE STEALING.
Embesxling War Clerk Proved Weak
ness of Treasury Cheeks.

Embesxling War Clerk Proved Weak
ness of Treasury Cheeks.
Washington Letter in Philadelphia Record.
Two or three Official defalcations at the
capital recently have furnished food for Sc
rious reflection. The amount OF public
money thus lost has not been alarming.
even IL we aggregate all the defalcations OK
the last dozen years. But the fact has APP
parently been demonstrated that there are
no absolute checks. as many presume. to
prevent an unbonded 1850 clerk from steal
ing if he have opportunity and be SO
minded, and this is a matter Of deep con-
Germ.
Since the Howgate episode OF thirty years
ago perhaps the most spectacular embezzle-
ment or series of entertainments is that dis
closed last week OF the clerk Watson. ac-
complished through reckless forgeries- But
while Watson has apparently appropriated
to his own use nearly 10000 OF public
moneys. his operations in some OF their
features are by no means so disquieting as
those of the late William s. Yeatman. dis
bursting clerk of the War Department.
While ii may be that Yeatman secured
less money than is now credited up to Wat
sons operations, his methods were far more
The most serious aspect OF the featman
embezzement was the fact that IL could be
accomplished In fiscal Office handling NIL
lions of dollars of treasury money annually.
and presumptively so safeguarded by ac-
counting and auditing checks as to prac-
tically make transportation Impossible.
erly that his robberies were not discovered
until death laid low the cunning or his
brain and hand. He was appointed disburs-
ing clerk of the War Department in 1886 by
ClpVplar0'S
liam C.. Endicott, having been clerk IN
various bureaus of the department for
| quarter of century previously.
He was disbursing clerk about fifteen
years and IL is roughly estimated that In
that period he drew from the Treasury De-
partment and paid out over the counter OF
the War Department disbursing office over
| SIS, 100000 Besides this great sum In cur
rency and gold he annually disbursed large
sums by check. so tnat ms snnuai agsr.,
s., 900 and 100000 Yet he bore all this
| weight OF responsibility for a salary OF 81
| 600 per year.
He was always attentive to his duties and
most people thought he was rather pune
tilious in their discharge: Nothing was done
loosely nor carelessly. The disbursing clerk
| had no extravagant habits so far as known.
He did not speculate nor busy himself with
| outside affairs OF any kind. His long rec
ord Of usefulness in the department. and
his excellent reputation raised Ieatman
above all suspicion.
His death was very sudden and entirely
] unexpected. When the accounting officers
1 and Yeatman's nominated successor checked
| up theoffice preparatory to turning 1t over TO
| the latter they were thunderstruck TO find
| that the deceased was short in his accounts
| Through suits begun by the government
and others against Yeatmans estate ii was
| disclosed that his defalcation Appropriated
| 10000 or $4,000. 1t is possibly even greater.
Nobody knows or ever will know the full
| extent Of the Yeatman shortage.
Yeatman's scheme of money-getting had
for its foundation forgery. OF course. He
mulcted the government by improyising
| spurious vouchers, as some say. but more
| probably by raising the amounts in regu-
| lar ones after they had been signed and
sworn to by the .payee. approved by the
The possibility Of such complicated frauds
1 was remote that, in fact, they seem
impossible even yet: They were wholly I'M
suspected by the checking officials.
| The important difference between young
| Watson's methods and those of Yeatnan
| was this: The first was only successful for
| time, through the gross carelessness OF
his superior, whose personal confidence he
had gained. In fact, Watson was constant
| ly at the mercy of mere accident. IL Au-
| dtor Petty had ever made even a casual
examination OF the Offices records in COM
parison with the bank balances and check
| books Watsons entertainments must have
| stopped years ago.
Not SO Yeatman. He, too, enjoyed the
confidence OF his superiors. but his ac-
counts were passed upon by officials or an
other ,s1a IT.; There was no careless
/
nothing SO uncertain. His pay rolls and
| miscellaneous vouchers were properly
checked up monthly in the Treasury De-
partment: There were other checks. He
| could not draw money from the treasury
| except on the very eve Of payday. and then
only on the most careful and exact esti-
| mate OF pay roll requirements. The disburs-
ing officer is permitted 10 keep no large
amount of funds on hand between pay
| days. His miscellaneous payments from day
to day were by check on the Treasury De-
| partment on sworn vouchers approved by
| the Secretary of War.
Therefore the only likelihood of discovery
| in Yeatman's case was that some Forged
or raised voucher might be bungled In
such manner as to arouse suspicion and call
for close investigation OF his accounts,
such as was precipitated necessarily py
his death, and the requirements OF his
successor in self-protection. But II does not
appear that this wary disbursing clerk
ever bungled. He was not impatient Tor
millions. He Travelled slowly, but his foot
ing was sure. His very moderation Is the
most alarming feature OF Yeatman
frauds. IL is not known that single one
OF his fraudulent vouchers was ever for
a moment questioned in the Treasury De-
partment
So safe and sure were Yeatman's meth
DDS that 1t has been asserted 10 the writer
by an expert accountant having knowledge
of the matter that had Yeatman lived 70
! settle in person his accounts with the
checking officers and his successor his eni-
bezzlements would never have been dis
covered, even though they had been con-
tinued and even increased.
Yeatman's frauds were evidently not the
result OF his necessities. for he left some
$4,000 in cash in his safe. To the end ne
retained the confidence OF all around him.
The seeming ease and safety through O
! long term of years with which his opera
tions were prosecuted. Notwithstanding The
difficulties interposed by law and various
administrative devices. arouse doubts as &c
the efficacy of any of the applied modei
methods 10 safeguard public moneys In
trusted for current use 70 dishonest fiscal
agents Of the Yestman class-