Year: 1869

Report Of the Second Auditor in Relation to
Alleged Fraudulent Practices Of Claim
Agents in the Collection Of Claims for Pay
and Bounty.


WASHINGTON, March 25 1se9


The Second Auditor Of the Treasury to-day sent to
the chairman of the Senate Committee on Pensions
a report OF one Of the formers clerks detailed by
hun to investigate the fraudulent practices Of claim
agents IN the collection of claims for pay and bounty
In the cases Of cOored troops. The Auditor says he
has used all means in his power to check these
frauds but owing to want Of authority to organize
any detective system he has not succeeded to the
extent he otherwise might. So many fraudulent
claims having lately been filed he has suspended
action upon large number Of them and withheld
Treasury certificates amounting to over S1500O0 In
anticipation Of further legislation by Congress af-
fordin9 greater protection to the government.


The Commissioner OF Pensions concurs entirely in
the views expressed by the Auditor. He says the
report shows most systematic and startling frausH
upon the government, and unless something be done
at once to correct the growing evil the government
must be the SUFFERER Like the Auditor, he regards
the bill introduced by Senator Wilson as of vital I'M
portance, and hopes sincerely 1t VIII meet the ap-
proval OF Congress.


It appears from the report and evidence that
complete system OF defrauding and cheating the
colored claimants prevails in ana around Memphis,
Tenn, and that the system OF preparing and prose-





reckessness and fraud The author OF the report car.
red with him 100 Claims for bounty in behalf of
widows as q test and from investigation he found
nearly every claim to be fraudulent. In twenty
claims where the names OF the same witnesses ap-
peared in every case having seen all of the twenty
claimants married he found upon examination that
these witnesses did not know any OF the widows,
never saw any Of them married and were never at
some Of the places where the marriages were alleged
to have occurred. 1t appears that neither the claim
agent nor the officer before whom the claims are
executed read and carefully explained to the wit.
nesses the papers they are requested to sign; and
from the fact that these claim agents have used the
runners as witnesses TO several hundred marriages
places widely apart in the same year and sometimes in
the same month, he concludes that the agent Is the
principal party to the frauds and the runners gen.
orally but dupes and Tools The c0lOred men known
runners or claim hunters are hired by the agents
to bring them claimants, and paying from one to
three dollars for ordinary claimants, father or
mother, but four dollars for wdowers. This pre-
MUM he offered on widows claims because the pen.
sion s involved In all such cases. and doubtless from
the fact that the agent secures not only large fee,
but continuous one SO long as the pension may be
granted, and by the way Claims are now being
prepared and evidence OF marriage or CO.
for pensions will be presented in the case OF every
deceased soldier. and by this same means the
agent proved the fact OF marriage he VIII prove the
existence OF minor children, issue OF the soldier and
have lie pension c0rrespondin9y increased. Two
or the principal agents at Memphis had each for
time one OF their own clerks appointed deputy
county clerk for no other purpose than to adminis
ter oatlls In their claims. These deputies md not
have access to the seal OF the court but would
simply administer the oath. then send the papers to
the principal clerk Tor him to sign and aix his seal.
And even after the authority to these deputies was
revoked ana the witnesses were sent to the County
Clerk to be qualified he would ask II the papers had
been read to them ut the agents Office, and II they
said yes he would administer the oath, sign and
afiix his seal. The author OF the report details at
length the means by which agents conduct their dis
honest business.