Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-04

the character of work which the Secre-
tary of the Treasury has heretofore ac-
complished under the authority of sec
ton 166 of the Revised Statutes. l will
refer only to few concrete instances
of this description:
AN investigation of the ink contracts
of the bureau of engraving and printing
a few months ago disclosed what APP
peared to be a conspiracy between the
ink expert of the bureau and a certain
manufacturer of inks. by which the gov
eminent was paying four times the legit-
innate price for its black ink The result
of this invest cation was the indictment
of the ink expert and the manufacturer
and new contract upon a more nearly
legitimate basis with a resultant saving
to the government of fully 500 $50 a year.
I'm the customs service the secret serv-
ice division has been utilized to great
advantage in cases where the customs
agents were handicapped by being too
we'll known. AT Seattle a secret service
agent broke up an opium smuggling gang
that had been operating for years in de-
f1ance of law. and made the largest SeiZ-
ure OF opium, one ton. recorded in the
department. and convicted the smugglers.
In the RoSenthal silk frauds in New
York the secret service division was OF
great assistance. securing the evidence
upon which a silk examiner in the APP
praiSers stores was convicted and Rosen-
thai, the principal offender was indicted
and is still a fugitive from justice.
The assay Office at Seattle. Wash. was
the subject of complaint on the part OF
depositors of gold dust that their returns
in that office showed larger percentage
of loss in refining than at other points on
the Pacific coast. An investigation, made
Jointly by the superintendent of the Sar
Francisco mint and secret service agents
disclosed systematic thefts by a trusted
employe. who was subsequently indicted
tried and convicted for the offense. The
than 100000. and approximately s4o.00t
was recovered by the secret service
agents.
Looting of Frisco Mint.
'On the occasion of the annual exam
nation and physical count of the con-
tents of the mint at San Francisco g
shortage of $4,000 in double eagles was
disclosed, there being six empty pigeon
holes each of which should have con-
tanned 5000 sack. This was investi-
gated by secret service agents, and the
chief clerk, a former cashier Of the mint
was convicted of the crime and sent tC
the penitentiary.
"A few years earlier an investigation
conducted by the employees of the secret
service division disclosed the systematic
lOotng of the assay Office at Carson City
New. and the assayer and an assistan,
were convicted Of having distracted ap-
proximately $SO,UO of the government
gold
Still earlier there were extensive theft
from the mint at Philadelphia. where colo
bars were being carried away. Agents
of the secret service division made ar
investigation, which resulted in the con-
viction of the superintendent and the re.
covery of practically all of the stolen
property.
I'm the marine hospital service, a
branch of the Treasury Department. a
trusted clerk employed duplicate vouchers
by the manipulation of which he was able
to collect from the government nearly
100000. Secret service agents exposed
his methods and secured his indictment,
to which he afterward pleaded guilty, and
was sent to the penitentiary.
AT the time when there were two con-
trollers of the Treasury a chief of di-
vision in the second controllers office de-
vised an ingenious plan for defrauding the
government through fraudulent horse
claimS'-claims for animals which had
been seized and used by military order
during the civil war. An investigation by
secret service agents disclosed the char
acter of the fraud. through which the
government had already lost $15,OOO, and
IN which there were pending nearly $oo.-
600 in illegitimate claims. The offending
clerk was tried and convicted, and SEN
fenced to the penitentiary for twelve
years.
I'm the Office of the treasurer of the
United States, where the mutilated cur
rency Is received and counted for redemp-
ton. there have been many skillfully de-
vised plans for defraudng the govern
ment. and in that branch of the service
alone there have been many investiga-
tons and convictions.
Fraudulent Claims Uncovered.
"In the Office of the auditor for the
Post Office Department. a branch of the
Treasury service, in 1884. secret service
agents conducted an investigation which
led to the discovery that claims aggre-
eating 100000 were fraudulent, because
of prior payment, and that amount was
saved to the government. Later. in the
same Office, secret service agents dis
closed the theft and use of Cancelled
money orders, and fixed the responsibility
upon an employe, who committed suicide
rather than face prosecution
These are but suggestive samples of the
varied demands made by the Secretary
of the Treasury upon his secret service
division in the protection of the interests
Of both the department and the public.
Aside from the general question involved
in the proviso. concerning which l have
very decided views, but which ] shall not
express at this time. there should be no
question of the authority of the head OF
this department to use the force of the
secret service division for such special
Investigations as may be necessary in his
own department.
l am advised that the Secretary Of the
Treasury is quite within his rights in
thus employing the service of these
agents, and the modification of his statu-
tory authority by the proposed restrictive
paragraph in this bill is not only dis
elimination against him as the head of an
executive department, but distinctly to
the advantage of violators of criminal
statutes Of the United States.
Respectfully