Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-04-13
Willy SPANIARD
OF GUAM CAUGHT
BY P.O. SLEUTH

Earl p. Smith. United States post
office inspector. who was "A through
passenger on the ChiyO Mlru TO
day. has the distinction OF finally nail
ing what has been the widest defraud-
ing OF the United States government
in the Pacific when he arrested Cap
tain Pedro Duarte. postmaster at
Guam, on a charge OF embeZZling $40.
00n The feature OF the arrest was
the fact that the POStOttice authorities
have known OF. the leak in the Guam
office ever since Duarte's appointment
i'll 1903. but each inspector sent to in
Nc,tigate returned with the story that
the office was satisfactory.
Where former inspectors failed
Smith forced Duartr TO confess, and
although his mission to the island VAS
strictly in the interest LG the post.
office affairs, he learned things which
Will probably lead to Investigations
Of other irregularities and eventually
cause ii Shakeup in Guam'S uficchuld
trS
Duarte was sentenced to 10 years
in the BiIibid at Manila by Chief JUS
tiCe Nincente COmaChO in the Guam
court of appeals, and was fined the
extent Of his defalCatiOn, $4O,0UU. His
PROPERTY is being COnfiScated to pay
the fine but contrary to the first re-
pert, he will not be held for addi
tiOnal sentence if the property value
does not cover the fine. Influential
SpaniardS who have always cleared
him in the past by lending him guIl
to balance his books pending an in.
Spectiun, have been laying wires for
his pardon. They have failed to
reach the ear of President Wilson.
who alone has the right to PARTON
federal prisoners.
Ii will be remembered that when
the island of Guam came into the pos
session Of United States in 1898 Span
ish officeholders were retained The
Cid Spanish regime with ten or
twelve leading Castilian families con-
trolling the island was allowed to go
on, and many customs Of the old days
were continued under American con-
Irl |. One of those customs preserved
in secrecy was to borrow money from
the government whenever there was
a need. If not from the treasurer,
from the postmaster
When Captain Pedro Duarte of the
Spanish navy was appointed pOstmast-
or in 1903 he did but fall into the
ways Of his predecessors of using pos
tai money with the hope OF paying it
back. So clever was the old Span
lard that when inspectors were sent
to account for the leak he always was
cleared. The shortage was covered
by the ready gold of his friends.
Duarte's method was to fitch from
the money order funds, carrying
large amount Tin transit" on his
books and it was nearly impossible
for the auditor to check him up in
Washington, as it takes a transport
four months to make the round trip
from Guam to San Francisco and
back, and when Duarte was called to
account for large amounts missing. he
always declared that these funds were
lin transit" and the government was
forced to let the matter drop allow
ing Duarte to make up the shortages
by using borrowed money.
Last April the auditor in Washing
ton noticed a heavy increase in the
funds which Duarte was carrying in
transit" and it was resolved to get
the old Spaniard this time. Some time
as taken up with preliminary ar
and on February Is last
Inspector Smith arrived in Guam and
took up the case.
Exposure was inevitable as the
shortage had become too big to be
covered. All kinds OF speculative
schemes were tried by the willy Span
lard to make up his loss only to re-
suit in deeper deficit. The last scene
of his 12-year financial tragedy was
laid in a cabin Of the United States
transport Thomas bound for Manila
with a o. S. soldier guarding his door.
Inspector Smith intimated that the
thus started in "the
dark little island" may reveal some
more startling Irregularities.