The Washington herald., 1915-02-14
CARNIVAL OF FRAUD" WAS
DRAWING TO CLOSE.
February IL, 1865.


Fifty years ago today a Carnival
of fraud" ah it was aptly termed.
which had cost the United States gov
ernment millions of dollars, stolen in
the purchase of it's war supplies, was
being brought to an end through the
exertions of Secretary of War Edwin
NJ. stanton and Secretary OF the Navy
Gideon Welles.
That wholesale frauds should have
fiourished through nearly four years
OF the war, with two such incorrupt-
ible men as Stanton and Welles on
guard. in the two departments doing
the bulk of the governments buying,
illustrates the far-reaching system of
dishonesty that preyed upon the gov
ernment
These two officials had made special
efforts to catch some of the larger
thieves, and had been often thwarted
by men of influence in public life at
Washington. They had finally ap-
pointed special agents, whose whole
duty 1t was to prosecute fraudulent
contracts and others. The result was
few penitentiary sentences, which
had a marked effect in checking
frauds on the government.
1t was not. however. until the last
months of the war that the govern
ment was able to protect itself against
organized thievery.
Col Henry S. Alcott, an army officer
who acted as special agent for the
War Department in bringing thieves
to justice, and next for the Navy De-
partment. in 1879 wrote a paper on
the subject of his work. under the
title, The Wars Carnival of Fraud"
In this he gave specific cases, with
names of contractors sent to prison,
and described the various means fol-
lowed for defrauding the government.
from fraudulent contracts by rich
manufacturers. to plain thieving by
draymen acting in collusion with their
superiors in the government navy
yards.
In the East the largest gains were
those of manufacturers; in the West
of persons who dealt in horses and
forage.
Theft by COIIusIon.
Col Alcott wrote warmly of his sub
ject. giving a vivid picture of a phase
of war conditions not often mentioned
by historians.
Contractors, bloated with the prof
it's on shoddy. rode in emblazoned car
riages, which, little while before,
they would have been glad to drive
as hirelings." he began.
Intrigue held the key to the
kitchen-stairs of the White House.
shaped legislation, sat cheek by jowl
with Congressman and seduced COM
missioned officers from the strict path
of duty. Our sailors were sent to sea
in ships built of green timber, which
were fitted with engines good only
for the junkshop and creased with
sperm oil derived from moss-bunk-
ers and the fat of dead horses.
For one pound of necessary metals,
one yard of fabric, one gallon of
liquid, the price of two was paid.
our soldiers were given guns that
would not shoot, powder that would
only half explode, shoes of which the
soles were filled with shavings, hats
that dissolved often in a months
showers and clothing made of old
cloth, ground up and fabricated over
again.
In the navy yards there was sys-
TEN of corrupt bargains between the
public servants and contractors, under
which goods of inferior quality and
short of quantity were accepted as of
the lawful standard and count; public
property was purloined and carried on
in open daylight; scores OF super
huous men were quartered on the pay
rolls by politicians; navy agents col
luded with ring contractors to buy for
them all supplies at highest market
rates on an agreement OF is per
cent commission, and clerks in the
yards, for a consideration, would slip
the pay acquisitions of these ring
thieves from the bottom TO the top OF
the pile that awaited the official GER
tificate of approval, so that they
might draw their money at once, TO
the prejudice of honest dealers.
There was no such thing as the
taking of a general account of stock
not even a keeping Of the accounts
by double entry. The old regular Of
fcers in charge of bureaus, high toned
and unsuspicious, were iattered into
a fatal sense Of security by subordin-
ates bound body and soul to thieves.
ConspIracIes on Bids.
In the military arsenals the same
rottenness prevailed. The army stand
ards were themselves debased under
the plea of an eXigency. In the letting
of contracts a fair competition was
frustrated by the transparent con-
spiracy of bidders, who would put in
absurdly low proposals under fictitious
names. and then bid themselves at the
highest price that, from surreptitious
information received. they knew would
throw out honest COmpellOES anu Sc
cure them the contract.
Their profits were calculated to
come out of the delivery of inferior
articles of skimped measure to gov
ernAhent inspectors, with whom they
had an understanding.
presents of horses, carriages,
jewelry, wines, cigars and friendly
help toward promotion, though pass
ing under a politer name than bribery.
effected the same results as though
they had not
I'Every artIfice that rascally inge-
nuity could devise and clever men and
women carry out was resorted to to
procure the brigadier's stars or the
coloneTs eagles for ambitious incom-
petents"
Cases of Punishment.
The picture hery drawn was of
while the so-called carnival
was at It's height. in 1852 and 1853. 1t
was curbed in 1864, and prosecutions
in 1855 stoppEas II, though with the
war near Its e5d, the case was similar
to shutting the stable door after the
horse had gone. s..r
The honesty Of the people expressed
itself in hard sentences for war
thieves that were caught.
Specific cases of punishment men
toned by Col. Aicott, included that .of
a prominent New York Jew, who rob-
bed the government OF 100000 on
false vouchers for the board and lodg-
ing of recruits He was sentenced to
ten years At Sing Sing
The provost marshal at Baltimore
was tried by court-martial for theft