Ligonier Banner., Volume 14, Number 13, Ligonier, Noble County, 17 July 1879 — Page 2

' A MORAL EARTHQUAKE. Glover’s Report On' the United States ‘Treasury Department—The - Roof Lifted Off; and the Rascality of the Republican Officials Revealed—Some of Thefr Corrupt Practices Déscribed and Fittingly Characterized—How the Interest Account was Tampered With—Linderman’s Management of -the Mint—Something Startling About >Republican Campaign Funds—Was “Counterfeit Momey DMade In the < Freasury Department? Ete., Etc. Thg long talked ef -and ‘eagerly sought for report of Mr, Glover. into frauds alleged to have beén committed upon the United States Treasury was printed in the New York Star on the 6th. It is necessarily very long, occupying an ents_ire page of the paper, and will prove *' mighty interesting reading’’ to the people whose names appear in it, and to thousands of tax-payers who have had their suspicions directed to the Treasury Department fOr many months past. The following extracts, of course, do not cover the whole ground, or anywhere near it, but they will give some idea of the scope of Glover's inquest tor which he has been so much abu ed and ridiculed by the leaders of the opposition party. It ggmmcnc.es with his discoveries in reiation.to e : o FRAUDULENT COLLECTION OF INTEREST. This mquiry, which seemed to be desired by all ireasury authorifies, while it related to extortion, had a very ditferent tate when it reached the torgeries. - At the same time that -a package of &600 tell into Supervising Agent Mooi~¥ hands a’ package was also found, addressed to “the wile of the interest ‘l‘e)der of the I'reasurer’s office, containing a valuable silk dress-pattern, This was kept by tae Teller, C. L. Jones, till he ledined that one of Moore’s assistants had inquired about it, whén he returned it to the sendcr, H, M. Williams, formerly Deputy Cellector of Customs at New York, who had lately been indicted tor complicity in'the ** Lawrence!l’ frauds on the revenue, and who wassoon after detected in fraudulently collecting nncliiméd interest from the Government by ferging powers of attorney. In three: cases it wasascertuined that A. U, Wyman, Treasurer. gt the United States, had learned of these frauds, and instead of exposing Williams and having -him punished, had compelled himn’to refund the roney, and then surrendered to him the forged papers that would have convieted him. One of these three forged powers of attorney was drawn in favor'of Intere est Teller Jones, who, in paying the many sums collected by Williams, drew the check, in viola~ tion of regulations, in favor of the claimant, and gave Wilhams other privileges. Treasurer Wyman knew of Williams' frauds before Moore found the package addressed to Mrs. Jones; but while he urged the investigation of the extortion by outsiders, he let Moore know naught of these forgeries, though Moore informed. him of the finding of the Jones package. . Williams was introduced to Jones and vouched for— while under indictment—by Tc Apportionment Clerkof the ~Treasury, J. W. Porter, and bgel). Baker, Chief of the Lioan Division of the Becretary’s office. During the Glover investigation Baker - resigned. BSome of these fraudulent payments were made to Williams through Miadleton & Co., bankers, of Washington, The head, 8. C. Middleton, was one of 'Treasurer Wyman’s bondsmen, formerly Cashier of the Treasurer's office, and inat least one case where Wyman re- - turned the forged papers to Williams, Middleton & Co., at last accounts still held the money, no effort heing made hy the Treasury omicials to compel its return, and Wyman isstill a defaulter to that extent. The startling facts were discovered by the Committee that Wyman’s accounts had been passed and settled as correct, this defalcation not being known to the persons who settled his accounts, except to his bondsman, Middleton, who said naught of it; that the Treasury records do not show the ckaracter of the fraudulent payments; that the means of detection is for the owner to c¢laim the money, and that the entry of the fraudulent transection and the forged sign-ture to the receipt for the money were scratched off the T'reasurer’s office records. This unclaiméd interest has at times been several millions in amount. When not called for after a long time, itshould revert te the Government, but the Ireasury has taken no steps of this kind. . It turns out that Charles ¥. Conant, Assistant Secretary of the Treasury, was intimate with the forger and swindler Williams, and that J. V. Porter, Appointment Clerk of the Treasury, and D. Baker, Chief of the Loan Division eof t%e Secretary’s office, who introduced Williaras, and vouched for him while under indictment, to Interest Teller Jones, knew all about the unmclaimed interest business, Baker having been designated by the Secretary to aid and protest owners in .collecting their money, and Porter having had charge of the records of; the fund in the Rirst Anditor’s office.

Ir 1874 John P. Bigelow, then Chief of the Loan Division, Secretary’s office, under Secre= tary Richardson, obtained a cogy of the record of .unclaimed interest, much-of which was due to parties abroad. Soon afterward he was made . London agent of the Government in syndicate operations, When he went abroad the list of small claimants disappeared. He stayed abroad until 1877, and when Williams was_in danger returred to defend him. James H. Robinson, Assistant Solicitor of the Treasury, declined to aid Moore's investigation, - saying, They don’t want to continue up stairs,”’ referring to the Secretary’s “-office; and . he co-operated =with Appointment Clerk Porter in an ' effort to break down Moore’s investigations by abolishing the force of Inspectors of Customs,:to which Moore’s assistant in the matter who had first traced the Jones package—belonged. Robinson suddenly marutactured an opmion that there was no law for the existence of this force, which has existed over fifty years. When Moore informed Assistant Secretary Conant of Williams’ frauds, Conant. to Mooze’s astonishment, advised him to drop the inquiry, and he threw such difficulties in Its way that Moore felt forced to suspend it the whole time that Conant was Acting Secretary of the Treasury. When Sherman became Becretary Moore reported the tacts to him, and Sherman referred the matter to ‘Greorge Y. Talbot, Solicitor of tbe Treasury, instructing him to complete the inquiry in accordance with Moore's suggestions. Moore and Treasurer Gilfillan, who. had co-operated, ¢onferred with Talbot and enabled him to obtain evidence to establish the facts. They cautioned him agaiust' Conant, Bigelow, Baker, Robinson and others; but within forty-eight hours they were shut out from the investigation, and these very ‘men, inclnding Williams, were in constant communication with Talbot. The susg)ected,, parties ‘had pos: . session . of and passed round the testimony and refx)rts agaiust Williams, and some of them called Treasurer Gilfillan to account for telling what he knew. Gilfillan went to New York to aid District-Attorney Wood.“ford to arrest and prosecute Williams. there. Williams was warned of this, and passed Gilfillan between New York'and Washington, appearing before Talbot and saying-he was informed ‘Talbot wanted him. While Gilfillan was arrauging Williams’ arrest with Woodford, the latter received a telegram 'from_Talbot, dgrept.mg him to act in concert with Bigelow, Williams’ friend, and himself under suspicion, and to try ‘to have Williams give up the list of owners of ‘unclaimed interest to Bigelow! Before the Glover Committee Talbot swore that he never sent such a telegram, but the Committee obtained a’ copy of it with his signature! This diepatch stopped Gilfillan, Talbat allowed Williams to be examined without rest by a United States Commissioner of Williams’ choosing. Neither Moore, Gilfillan nor 'any other person who knew the facts was at))txfied__cf this ** examination,” or allowed testify. Only witnesses friendly to him_ were examined, and he was - discharged. . When Middleton & Co. #were msked to refund the .sumsg wrongfully paid tkem on Williams’® fraudulent. account, the letter addressed to them at Washmgton was. answered by Williams from London. Talbot made a whitewashing report to Secretary Sherman, devoted mainly to exculpam_r:f Conart, against whom no charges had been laid before him ; but Sherman deemed- it policy for Conant ,t,o retire; he was sent to London to keep Bigelow’s company, and the foreign loan operations of the Government have since been conducted bx men whe successfully did their best. to shield a confessed forger and swindler, who with the aid of Treasury.confederates stole the money that belonged to widows, lunatics, orphans and. foreigners. 'The forged signatures were unlike the true ones, and Wi‘fitiams contederate, Interest-Téller Jones, miade no comparison or test of theirreality, violating thus the rules of the office. All these officials but one, Baker, are still in office, and Porter has been made Financial Clerk of the Coast Burvey, while Wyman and his bondsmen have been freed from responsibility. The sole punisbment meted out was that of Sépervising Bpecial Agent Moore, the one man _who persist~ ently tried to expose the wrong, and who was reduced to a subordinate post. = s THE COTZON SPATES, = . &In 1862 (leonzrem prov;dfid fo:i muny egpooigl Agents co ing captured and abandoned property at the ggtti?h‘.and for turning into the ’lpteanury the proceeds of such ‘property, to be Teturned to the owners on proof before thé Court of Claimsof ownerutugand treedom from c &.’ plicity with the rebellion. Under this act 17%? balss of cotton vn:rel co'llectedlgn%e sold, t.hqp;doceeds being, as nearly as cou au:{tw ined, #36,50 ),000. OFf this, $9,310 787 wers eaten up in “*expenses,” leaving over $27,000,000. Of this, %9 545.000 bave been retume«} to owners &%der Judgments of the Court of Claims. $1.623,000 by the decretary ot the Treas&:rv. 5202 000 under speoinl acts of Con%ss, and $lBB 00 under the act of May 18, 1872-in ?11. #11.648,000, This snould leave ou hand over $15.500.000, bug the report of the Seeretary of the Treasury shows but about $5,000.0 0 on hand. What bas become of jm otaer §06,600,000 the committee could not GHT O, : P e b ; “This great raid and seizure of 175.0(0 bales of

cotton, iowever, was not the whole spoliation. Contrary to law, thousands and thousands of bales were seized by Quartermasters and other army officers and sold. the proceeds never reacfling‘ the Treasury. In one year-May, 1863, to Mhy, 1864-—the Clfief (i):grterma&tger at New Orleans, Colonel 8. Ho o&rd. received 12 779 bales, worth at least .$2500,000, yet he only acknowledged §834,000 net proceeds, and states. that this sum was spent for grmy purposes by order of Geuneral Banks. $ g e Also, contrary to law, Admiral Porter,” while ;patroling the MIBBISSLD¥I and its tributaries, seized large amounts of cotton on land and Tlipped. it to Gairo as maritime t.fllze of war. T'he Bupreme Court has decided t this cotton ‘was unlawfully taken by Porter, yet the Treasury refuses to leturn the money, to the owners. When the Committee on the Treasury called in 1876 for the production of the original records of cotton seizures, a Cabinet meetmg was held - and an Executive order was issued by Grant forbidding the production of original books and papers béfore Committees of Congress. The law placing cotton matters in the ¢ustoms division of the uffice of the Secretary of the Treasury has been disregarded and a ‘special burean formed, without authority of law, with a chief and sassistant and clerks, and with salaries fromr $1,200:t0 $3.000 a year. The duty of Martin Luther Noerr, chief, is to furnish the Court of Claims true copies of all recordsin that bureau §ertammg‘ to particular lots of cotton. Judge att of shat Court: stated from:the bench that Noerr had furnished four different reports of captures of cotton at Atlanta; the first report ade miiting the capture of bat twenty bales, but the last admitting 467! He declared that the Cotton Bureau's statements as made ug by Noerr were wholly unreliable, and stated that the luw requiring keeping of ** books of aceount showing from whom the cotton was received, the cost of transportation and proceeds of sale,” had been flagitiously and scandalously evaded and denied by officers intrusted with its execution. Noerr reported to the Court that there were :in the ‘T'reasury the records of about 640 bales from Vicksburg, not over $130,000.. Mr. Eveleth, Commissioner appointed by the Court to examine the cotton records, found that over 5,000 bales, had been seized at Vicksburg, and that the ’%roceeds had gone into the Treasury, $925,000. hief-Justice Casey, of the Court of Claims, swore that Noerr showed no disposition to correct his statement, and that he tried in vain to get Noerr to explain this great discrepancy. The Clief Justice also testified that it was ** impossible for :claimants or ‘théir friends to fget any iniormation or satisfaction at all in reference to their ‘claims from this division, expept through calls by the Court of Claims, the answers to which both the Bar and the Court regarded as wholly unreliable. In my judgment they (Noerr's reports) were in many cases intended and designed to mislead and to prevent parties frown getting justice.” William Fessenden, assistant to Noerr, was dismissed from the army in 1864 as a, def&ultl&sg additional Pa%mastet. for embezzling $20,000. He lent the public money to SBamuel B. Colby, a _contractor, and William Combs, a clerk in the Interior Department, for use in speculating in lumber, Fesscnden to receive for the use .of the money ten per cent. .of ' the actual sales. The money was lost by Fessgnden’s t.reachew, Colby claims, and Colby' was” bankrupted. Within a i'seat afterward he was made clerk in the Cotton ureau, where he h{;.s since received on an average £2,000 a year salary and large sums for ‘‘exRPa setvaces.’” -.. L e

From ' August 25, 1865 to May 5, 1873, the Treasury paid to attorneys, agents and informers more than $l-000,000 from the money which belonged to owners of cotton. One Charles Eames and various partners were paid within ten months of 1866 and 1867, $420 000, by order of Secretary | McCulioch, $158,000 -of which being ' shared ' bi,{ Eames with Jobhn A, Logan, . - then Represencative, and now Senator from: Illinois. In about eightecn months of those years BcCulloch caused to be paid to S. H. Kauffman, First Chiet of the Cot‘ton Bureau, $82,000, and Kauffman soon turned up as partner with Boss Shepherd and George W. Adams, correspondent of the New York Worid, in ownership and management of the Washington Star, which has been conspicuous in detep&ing the lbmtpct of Columbia Ringand belying the Glover investigations. Robert 8. Hale, of New York, was employed as special counsel of the Treasury Department by McCulloch and Boutwell, and was paid '524,369 tor services ren‘dered inthe course of two years. James 8. Frazier, of Indiana, was employed by BSecretaries Richardson and Bristow to aid in adjusting cotton cases under the act of May 18, 1872, and received for services in the course of two years $15.513. - Beside this, appropriations amounting to $166,000 have been procured by the Treasury from Congress to be expended by that Department in defending tlie BSecretary and his agents against suits for selzures,and in defenaing suitsin the Court of Claims, and the Department of J u'st-ic-J has procured in the same time a;i’gronriations of $285,000 to- be spent by that Department in detending suits .against the ** captured and abandoned property fund’’—s4sl,ooo in_all, and the Attorney-General continues to ask an sppropriation of $25,000 for ‘the same purpose. every year. though he and all his subordinates are salaried officials, and though under the law very few cotton claims are now allowed to go before the Court. 0 : T i

. An infamous law, procured from Congress by implicated parties, forbii~ the owners of cotion to sue the Secretary ot the |reasury or hisagents for taking away theif cotion, and appropriations have been repeatedly uvbtained to pay special connsel for using their legal skill to prevent owners from getting back their own! Andrew, Hosmer, a Union officer, settled in Alabama in the spring ot 1865, and raised a crop of cotton .worth abou: $30,000. When it was ready for market one of the Lreasury thieves scized it. The Cotton Bureau kept Hosmer out of his money ten years, took from him ore. fourth as **commission’’ to the robber, another fourth as ' expenses,” and returned haif ius property minus ten years’ interest. There were twenty-one Supervising Special Property Agents, and their accounts were ordered to be settled by Robert E. Preston, of the First Auditor’s office. In his statement Preston reports that J. M. Temeny, Agent, collected 7,469 hales, and sent Draper 5,468; but Tomeny swore before the (Glover Committee that he collected 15,690 bales and sent Draper 11,111-5,643 more than Preston credited him with in the official settlement. Special Agent O. H. Burbridge swore that ' Preston demanded . and. received money. from him before he would begin settiing his accounts; that Preston made a second demand, which was refused, ana that hence Burbridge's accounts remain unsettled. The Supreme Court has decided that the proceeds of captured cotton ‘are a trust fund in the handsof the Treasury for the benefit of the owners: but, as has becn seen, this trust is shamefully abused. Millions of this trust fund were deposited by Becretary McCulloch in Jay Cooke’s First National Bank of Washington, which- enjoyed the wuse and profit thereof, while the owners suffered. Wull--lam K. Chandler, while Assistant Secretary of the Treasury, caused a full.list of the valid cotton claims to be made out and furnished to him, and soon atter resigner and went into the prac. tice of ‘' law’’ at Washingtou. The official wha made Chandler the list swore that it was worth at least §lOO.OOO to its holder. ° :

MISSING MONEY AT THE MINTS. At the Ban Francisco Mint there was a deficiency of $235,000 in the Melter’s and Refinexr's Office in 1856 —a_great discrepancy between the Lreasurer's and Coiner’s accounts in 1866, and large losses in 1870. The Superintendent was dismissed for ¢corrupt practices in 1877. Losses were also discovered in 1870 at the Denver Mint and the New York Assay ‘Office. The New Yurk accounts were passed by the Auaitor's and Comptrolier’s Offices of the reasury without proper examination of tue vouchers which were paid by the New York Assistant Treasurer without the approval of the officers who should have received the supplies. 1 Up 10 1870 the Director seemed mnever to have examined the New York Assay Otilice, and the mint(regulations: were hard to fina there. The report of the Director of the Mint tor 1877 says (in tables prepared by Martin V. Davis, of Phiiadelphia) that the gold coinage under Director Linaerman, 18747 linclusive, was $136,000,000, and greater than that of any previous four years. This was untrue. The toinage of 1574-7 was $165.000,000 (£20,000.000 more), and that for 1861-4 Inclusive was $190.000,000, or $34 000050 more. ‘l'he Director ajso fell into this error of $10,000,000, and understated by this sum the total gotd comégge of the mints, He also understated the gold coinage I¢sl-4 by $1 6.0,000. He stated the total 1852-8 inclusive at $233,000,000; but his subordinate, Mr. Dayis, stated it 1n the same report, for the Philadelphia and San Francisco mints aloné, at $247,000,000, over §14,000,000 more. Thus a.ocordinf to official figures two of the mints coined $14,C00.000/ uore than the whole five! The SBan Francisco Melter and Refiner's revurns of bullion above the amounts charged as delivered to him, $36,000 1854-77, is credited to that mint twice Tn the same report, thus making the mint expenses appear $36,000 less than the tsutfim ‘l'he New York y Office Smelter and Refiner, Mr. Andrew Mason, by great care and skill shved and turned ‘into the Treasury in. 1876-8 .$64 000 more than the bullion delivered him for treatment was charged. Tnese returns were suppressed from the Director’s reports, being lumped with earnings, and Mr. Mason was instructed to return them as such, the motive annomt::efg in the instructions heing a shlixeldt t:zhe Min om 4nnoying inquiries as to w ey, ‘instead ot-returnfnu a surplus like Mr. Kiuon. charged the Government ' with a waste. Thus Mt.;Maglm,wg; dgmed' the credit be richly deserved, an &;618 in the report made to appear -as wasting $9,000 in order to hide the mismanagement of ochera. The letter ordering this suppression was signed as Acting Director of the Mant by Robert E. Preston, who figures napleas‘Antly'em&iwhere. in oonneemofi with cotton acs counts,' In 1876 Congress cut down the S?mempriavions asked by the Director over $BOO,OOO, but Linderman contrived u%tsmuzzle, =8 v viso allowin e earnings irom separating go zr'om efifier,m from yefining both, to be, used n meeting expenses without going into the Treasury. The result is that every year since

the earnings have been spent in addition to the sums allowed by Congress, and $500.00 yearly have been expended witbout Congress suspect~ ing it. e : E‘he New York Assay Office receipts frem the gsale of bluevitriol and sulphuric liquor in 1873 were stated by the Director there at $11,360.91. Four years later the annual report stated them as $5,802.05, Both xglrgved to be wrong; the amount was $310.360.915_ I The Director's annual repor's for 1873-4-5 state the receipts aggregating $2.047.000. The report forfiS?’l shows the same expenditures to be $2.403,000, or over §360,000 more than was acknowledged at the time. The expenditures are shown by the yearly reports for 1873-6 inclusive as $5.062,000,: The report for 1877 shows them to be $5°635,000, or over $570 000 more; §326,000 of this suppression ‘was 1n 1876, the Presidential election year. for more than haif this $572,000 suppression there is not the shadow of an explanation. In 1876 the ,items of expenditure were suppressed from the annual report. - In the spring of 1869, 211.400 bars of silver and ‘gold bullion, whose value was unknown, were deposited in the New York Assay Office, and moneys were loaned thereon to Ba.lhn‘g & Barder and others, by Assistant Treasurer Van J)irck This was very dangerous, for g:)ld'ed bars of lead or iron could thus be used to borrow on without interest or security. At least one lot of boxes said to contain bullion were deposited and borrowed on in 1869, and taken away on return of the loan without any inspection or test. This ractice was broken up in 1869 by George W, Eldelman. Deputy Treasurer of the Assay Office; but it was revived the ycar after Mi. Edelman resigned by Director Linderman, concerning * British bars and sovereigns’” whose genuineness had not been tested and it continued till the Glover investigation began, when Linderman stopped it. ! i KFrom 1866 to 1870 the New York Assay Oftice made 338 such loans, and in many cases the horrowers returned the coin and took bars, leaving the Government to pay for coining the bullion deposited to obtain the bars. In 1878 the Superintendent of the San Fran. circo Mint sent L. von Hoffman & Co. checks for $1.023.000 under instructions from Lindermmn, when but $600,000' worth of their silver had been assayed. ‘ : ‘é Superintendent Acton, of the New York Aséay Office, has been in the habit of signing checks in blank and leaving them thusin the Paying Clerk’s possession. , Last year eighty-two blank checks were found in the office with Acton’s signature. This is a virtual desertion of his duty by Acton, for he can not know his clerk’s action, nor supervise his payments. A rogue in the Paying Clerk’s place, or a thief getting into the office, could fill up a check 'for a million. and it might be collected and the parties disappear before detection. If necessary the clerk’s countersignature could be forged.. Superintendent Dunm‘gg. Acton’s predecessor, repeatedly got checks made to his own order for sums due public creditors. Then he indorsed checks to the creditors and turned in their receipts with the vouchers afterward. After atime he grew slow about turning in the vouchers, and oneday it was discovered that he had collected 13,000 of these checks himself. - 4 Linderman employed more than ascore of persons in visiting mints and assay offices, attend-’ Ing annual settlements, and assisting him in doing gO, for which hz2 spent in four years over s#ll,ooo. He paid his sen, nineteen years old and not in the public service, $2,767 for less than six months’ service. ‘The law does not allow travel--log expenses fo any one but the Director; up to October 1, 1877, he received s4¢,3oo—charged to this account. Frank H. Gassaway, a man.of notorious character in Washington, received $l,668.73 for taking an inventory (sixteen pages of foolscap) of furniture and fixtures at the San Francisco Mint. At the close of the Linderman investigation of that mint in 1877, but before the report was made, the Superintendent, La Grange, who was removed in_consequence ,of that investigation, presented Linderman’s wife with $l,OOO, saying it was a present from the employes of the mint. ' Some of the emploves, it is said, complained afterward that they were compelled to contribute and could|ill afford it. When Professor Robert E. Rogers, of Philadelphia, E. O. Leech, of the Mint Burean, Washington, and A. W. Downing, Chief of the Coining Department of the Philadelphia Mint, were sent to San Francisco to examine and attend yearly settlement of the Mint, Linderman_instructed Superintendent LaGrange to pay their traveling expenses and ten dollars a day to Rogers from the profits of fractional silver coinage. Before the Glover Committee he swore that he had never used these profits thus, but the record convicted him. ' : . LINDERMAN’S TRANSACTIONS. . Linderman bought in his wife’s name in 1874 150 shares of the California and 125 shares of Consolidated Virginia, the **Big Bonanza” silver mines of Nevada, which were controlled by Flood, O Brien, Mackey and Fair. For these he fig,id 9 per cent. or less, about $25,000. fore the Committee he called these $25,000 ‘‘very moderate means’ of his, wife’s, In March, 1875, be bought of the Consolidated Virginia Dore silver bullion valued by the sellers at $1,023,000, and paid them $l,OOO 000 on account, without waiting for the assay to show whether it was correctly valued, or 98 per cent.'of the value as afterward ascertained. The Company got their money two months before completion of assay, and were thus enabled to make $15.000 interest. In Jumne, 1875, he bought of them imported silver bars valued by them at $1,500,000, and paid them $1,425,900 down over two months before completion of assay, and enabled them thus to make $25,000 interest. The aseay showed the bullion worth but $1,457,000,.0r %63,000 short of the valuation, so that he paid them in advance 98.6 pet cent. of the value, running a great risk of overpaying. The bullion was paid for at §1.214 per ounce, fine metal - delivered at San Francisco. The express 'charges were %a.ld by the Government to New York from the profits on fractional silver coinage, instead of being paid by the sellers, and the charges at the Assay Office were borne by the Government, without authority of law. These expenses amounted to $32,000, which made the silver cost the Government $1.26.4 per fine ounce. The market value was $1.24 3, so that the purchase, as well as costing $32.000 more than Linderman pretended. cost $13,000 more than it could have been bought for elsewhere. Linderman also directed Superintendent Acton to pa},' $9.000 more than the assayed value of the gold in the purchase, the scllers claiming that the assayer made a “mistake.” Acton replied that there was no authority to pay it, but at Ginderman’s direction, after seeking to throw all the resgonsibility on Linderman, he paid, and charged it to ** profit and loss.”’ : Professor R. E. Rogers, of Phllade)%hia, another stockholder in the Consolidated Virginia, the sellers, was employed by Linderman to make an * examination,” and, of course, reported strongg in favor of making the payment, William E. Dubnis, Assayer at Philadelphia, protested strongly against ‘' correcting’ assays at_the instance of outside parties, saying that this destroyed the rehabilitb of assays. The payment was hidden in the Director’s-annual report for 1877 by .ca.ll‘uag it a'‘ wastage,”’ when no wastage, but. $14,000 saving, had occurred, The psfi'ment took place without the knowledge of the New York Paying Clerk. and without authority from the Secretar_){)ot the Treasury. The purchase altogether cost about $65,000 more than was pret,endea. In the same mongh Linderman -alsu took off tne company’s hands nearly $2 000,‘OOO more silver that they were anxious to seil.

January, 1875, the Bonanza stocks, under the eftect of wild reports about the mines, were verg hlgh_ in price. Consolidated -Virginia reache 850. Linderman’s $25,000 worth, of stock was worth once $200,000, But it feil by October to 210, and Cahfornia, the other part of the Bonanza, 0 250. - So it was lulled again, In the summer of that year Linderman visited California on official business, sought a conference with the managers of the mines, and arfra.nged an inspection ‘of 'gmm. ‘He and Professor Rogers then, or soon @fter, a.holder 05320.000 or more stcck in these mines, inspec them twice. Rogers mad€a report valuing them at $300,000, 000, which Linderman, saying that other estimates were too high, concurred in and : published: in his annual report for 1875. This - was = widely circulated, and jumped Consolidated Virginia to 435 and Califorma to 375. The rise carried Linderman's stock up to $120,000, and his. official representations held the stock xlll‘f to 180 per original share to the énd ct 1876, and to 115 till the eud of 1877, The mines only aprodnced a sixth of the amount represented. and the stock fell in value to about $15,000.000 aecording to the Statistician of the United States Monetary -Commission. The maintenance of the stock at high prices enabled. the owners to sell stock enough to realize about $125,000,000. and the'fall caused the: buyers to lose about $100.000,000, which the first sellers pooketed by Lindexman’s aid. This spread migy fortune and distress throughout the Pacific coast, : ‘ ’ October 19, 1877, the Secretary of the Treasury signed, at. Linderman’s instance, an order stopping the coinage of trade dollars. Linderman managed to let the Nevada Bank of San Francisco; owned bycphq Qonsolidated Virginia party, and the Anglo-California Bank, know of the suspension tie same day, though ‘the publie did not know 1% till the next. The second business day after the suspension the' p::;e of trade dollaxs had risen four xfir cent., a these banks, baving had notice, ad.bo&l_xt up the dollars and compelled traders with China to buy of them at this higher' price. Ex-Governor I.i)w telegraphed Linderman soon after that the suspension would drive all the silver builion in market f.%the Nevada Bank refineries; but this had no ‘effect on Linderman, : ‘O. H, Irish, Chief of the Bureau of Engraving and Pr'mtins. published last winter a lester to Mr. Atkins, Chairman of the House Committee on Appropriations, seeking to discredit Mr. Glover's statement about %Buren.n. In this letter he stated that the Bureaun ha‘d'bom‘ylzted and aelivered to the Comptroller of the Carrency 2,390,000 sheets of National Bank notes in the gsoal year 1878; but the rsezpnn of the"Burean shows that it delivered ‘32 000 sheets more, The Bureau bookkeeper swore that there conld not pussibly be a mistake in the report; yet examination showed that the report represented that 810,000 rheets of customs cigar stamps were

delivered more than tne Bureau claimed to have made! 3 . E Thé distinctive paper for printing the Government issues has been in a room used exclusively for that purpose, in bundies containing one thousand shects each. All the distinctive paper is stored in that room. The supply of legal tender paper has never been exhausted; that is, it has peen added to and drawn from since 1569, | finfl dthere has always been a large guantity on and. Com AR b : i May 1, 1877, there was stored in this room the: ' enormous quantity. or 18,716,266 shieets of 'distinctive paper, and the Cmef of the Bureau says there were stored, on the Ist of July last, 5,924.000 sheets of legal-tender paper, and there is stored beside a large amount of . National Bank note, funded loan bond and old fractional currency paper. Uf the latter, partis being used . for National Bank notes and legal-tenders. It was found that the stock of paper had been counted but once (about five yedrsago) in ten | ! The rvom in which itis stored is in the sub- [ basement of the bunilding; the corridors leading | thereto are poorly lighted, and seldom visited except by workmen employed in skops on the same floor. Six persons have access to this room atany time during working hours, and any one -of the six can open packages of this paper that have been .counted and stored, abstract from fifty to one hundred sheets at a time, and place the bundles so tampered with where they will not be reached for years. . i A man so aisposed may, by the withdrawal of small quantities at a tirne, become in the ¢nd a dishonest possessor of a large stock of this paper. No surveillance is kept on the movements of these men, and the theft would remain undiscovered until a count was made or the supply exhausted. 0 : i : What has been said of the paper applies, also. only with still greater force, to the custody of ‘the dies, rolls, bed-pieces, and plates frem waich the securities are printed in the Bureau., The purloining of these is especially to'be guarded against. The Government has not placed such checks upon them as to render their abstraction impossible. nar can they ®my the present arrangement tor doing the work. . A bed-piece is a plate of steel the size of the note or coupon, etc., to be printed, having the . entire of such note, etc., engraved on its surface, and this being finished, the piece is hardened. A roll is a small cylindrical piece of stee! having on its surtace, in relief, the entire engraved work that is on the surface of the bed piece; this ‘also, after receiving the impression, is hardened. 1t 1s made while the steel is soft by being run over the hardened bed piece, so that the entire engraved work on the surtace of the bed piece is transferred to its outside surface by pressure. The plates are large pieces of stéel from which the notes, bonas, stamps, etc., are printed, and vary in size from that of four notes each, as legal tenders, to a coupon bond, and are made by having the work from the roll transferred to their surface by pressure. There are three (3) bed pieces (also called dies) and three (3) rolls, from which the plates for each denontination of notes are made, viz.: one for the green printing on the back, one for the black printing on the face and one for the red seal. .

‘Hertofore, to insure security, it was deemed neceasary to have these separate dies, ete., and the several printings on each note made by different institut ions: but John Sherman saw fit. contrary to law, to bring this entire printing into one bureau, and to have the entire engraved stock of dies, bed-pieces, rolls and plates for printing legal tenders, bonds and the backs, faces and seals of e€ach held -in ene “vault. The custodian to ‘this vault and his assistants alone have access to it; in the course of their daily duties they go in and out at pleasure, and there is no difficulty in securing for unJawful purposes the bed-pieces from which the back. the face and the seal from which any denomination of notes, from one dollar to one thousand dollars, or all of them, are printed and make from them rolls (an operation of but few minutes), by which an unlimited number of plates can be prepared. : . ‘ ‘These bed pieces are rarely called into ullb after the roll has been "callea. The set of three could be conveniently .carried in an inside pocket, and as the preparation of. a roll requires but a short time, these bed-pieces could be taken away at the close of the work and restored in the morning, until one of each denomiration -had been obtained, and by them plates prepared for printing millions of dollars of genuine notes, The vault containing this material has often been left open and accessible for hoursat a time to any one who could get into the Buoreaul: A STARTLING COINCIDENCE. ; It is strange that each of the last Presidential elections has been followed by a Ireasury announcement that layge amounts ¢f ' counterfeit” notes were afloat. Ia 1850 the whole issue of legal-tenders was withdrawn and repiaced. on the ground that they had been larsely and skilltully counterfeited. fn 1573 the whole issue of $5OO ‘greenbacks—about s3sooo—was withdrawn and renlaced in the same way. In 1877 a counterfeit $l,OOO note was announced. One of the oldest engravers in the country testities that when'a note 18 so like the original that 4t cannotieasily be detected -as these and other * counterfeits” are said by Treasury officials to be-—-it cannot really be a counterfeit, but must be a genuine note surreptitiously printed from genuine-plates or from secret reproductions of these. plates. Other experts testified that a genuine plate, after being secretly made, can be altered with a graner in small details enough to make it seem counterfeit to any non-expert. In 1865, Hank Hall, & noted counterfeiter in New York, hired two plate-printersnamed Lankton, to go to Washingtun, get employment in the Printing Bureau, and there steal copies of every note plate the Government was using. They did steal copies (by printing. on lead sheets instead of Faper)tof several notes, and could have stolen all had not a quarrel sprung 1215) Among these copies were the backs of the. $2O, $5O and $lOO compound interest notes, whose elaborate .geometrical lathe-work engraving was thought a perfect protection against frand, and was the test among banks of genuineness. They also got the faces of sorie of these notes. A large amount of them, estimated by some at. $750,0¢0, was put afloat. The ~Governmeént has redeemed $lB,OOO seven-thirty: notes which were_afterward held to be ~counterfeits, and Jay Cooke & Co. were made to . refund the money; but the Committee that de‘stroyed the plates vsel;e by no means certain‘that they were counterfeit. ‘The Superintendent of Plate Printing ih the Bureau testitied some years since that the plates of the five-twenties which the Becret Service had captured were from the genuine bed-pieces, which (or the rolls) must gg.ve been borrowed trom the Bureau to make em. . 3

.. The $5OO * counterfeit’ greenback of 1873 was inspected by experts and compared with a genuine note for the Glover Committee, and these expert engravers swore beyond all doubt that the note came from a genuine plate or from a surreptitious reproduction of one. ‘The Bureau workmen who transferred the plate from the bed-piece agreed with this. i . A SECRET ISSUE OF: NINETEEN MILLIONS, A briet inspection of the Treasurer’'s books revealed the fact that $19.000,000 of notes were at one time secretly afloat tor several months, the ‘l'reasury statements being . faise during that time to that extent; and the fact of that secret issue remained unknown till lighted on by the Glover Committee. The . books were falsified and a balance forced to conceal this secret issue, by untruly stating that $£19,000,000- had been depusli(te(%a as temporary loan, when no such depcsit took place, : ¥rom 1867 to 1873, while the amount of greénbacks authorized by law was $336,000,000, the Areasurer s books revealed the fact that repeatedly the amount afloat was $2,000,000 above the authorized amount in the middle of the month, enough being turned over for destruction on the last day of the month to bring the total down to $356,000,000, and in other month&.%le circulation was cut down as much as $12,000,000 below the published figures in the middle of the month, enough being taken from the anissued notes on hand on the last day to, make up the sum to the lawtul figure on statement day. = - General Spinner swore that the pubiic-debt statements did not agree with his books; that he did not approve of them; that his name was put to them without his authority; that he was not allowed to publish truthful statements; that ‘balances were forced in these statements and that be finally got the law changed so as to relieve him of the duty he was not allowed to pertorm. ; In nearly the.whole of the fiscal year 1865 the Treasurer’s books show that the amount of compound interest notes outstanding was from $5,100 000 to $44.000,00) more than the published debt statements showed. One month it was $26,000,000 less. ‘Three different statements of the sum outstanding June 30, 1865, were published, differing by miliions, and none of them WOTD PYNRYTOnst & « - 4 AN

Becretary, MoCulloch publidy acknowledged some years since that on one occasion he caused $1,000,000 withdrawn greenbacks, that had been paid off and were to be destroyed, to be counted %:d g}},blmhedm the debt statement as ** cash on n ‘The first man who was intrusted with the de= struction of withdrawn notes, Charles H. Cornwell, Chief of the Redemption Division of the Treasurer’s office, was caught stealing the notes and reissuing them. The amount thus reissued is not known, but it is estimated bsi_good judges at over $lOO,OOO. The second chief, Frank Jones, was deteoted in making & falde certificate of destruction of $40.000 worth, gld;Geneml Spinner, Secretaries Boutwell and Bristow, and others, . persistently refused to investigate the matter, though about, $8(0;000,000 of the notes had passed through Jones’ hands in perfect sha.gf‘, much of it never even having been issued. The chedks and precautions against theft in destruction ars found to have been zrossg nengected and disre'‘garded in many respects, eneral '‘Spinner swore that ** they have a rule that nothing must be divulged that takes glaace in the Treasury.” SWEEPING CHANGES DEMANDED., The report concluded by stating that many of these and other matters need much more investilgation; that by no other method can the geoe learn the truth about the Government, or %ox_lgress get the information necessary to legislation; that the Treasury'is' full of epportuni-:

ties for wrong that have doubtlessbeen largely used: that that as well as other departments is run by a Ring; that the Government has far.too much to do to do it honestly or well, and that only by wholesale cuttln%’id_own of Government mel; and a wide abolition of Government unctions and offices can despotism and National ruin be escaped. : L

The Thrilling Experience of a Brooks : lyn Mason. N FEw men have so thrilling an exgerience as Philip Lynch and Joseph endergrass. The former was blown from a li\ilgh brick chimney at Hunter’s Point, N. Y., during a recent storm. The latter had an almost miraculous escape. The chimney was one hundred and fifteen feet high,’and the two" men were on a scafigol_ding, Pendergrass on the upper tier and Lynch beow him. The wind struck the chimney with terrific force, and the first. scaffolding began to sway back and forth, cracking and straining. Pendergrass, seeing the danger, hugged the brick work of the chimney. As: the storm swayed the scaffolding from its fastenings, Lynch was either unable to obtain a secure hold on the chimney or too much confused to make the attempt.” Suddenly the upper part of the scaffold gave way with a crash, and was hurled to the ground, a tangled mass of poles, planks and splinters. Lynch feil with the scaffoldy while Pendergrass, with a desperate effort, sprang upon the top of the chimney, and was left hanging on the narrow edge of brick, one hundred and fifteen feet from the ground. Lynch’s mangled body was picked up by some of his tellow workmer, and carried to the office of the company. He was not yet dead, but lived for three hours. Pengergrass, in the meantime, -remained clinging 'to the tom- of the chimney, while the storm swirled about him, seeming to threaten the overthrow of the-structure. = He suc.ceeded in finding partial protection from the hurricane by crouching on some pieces of planks that had been placed inside the mouth of the chimney to aid in its erection. He says that = when -he feit . the scaffolding giving way under him and sprang for the chimmey cap he called to. Lynch to follow him. Lynch made a desperate effort to gain the top of the structure, but lost his footing and tumbled headlong to the bottom, striking in his descent every tier of the lower portion of the scaffolding which did not fall. But another danger beset ‘Pendergrass. A fire had been a few minutes before started in the furnace below to test the” drawing qualities of the- new chimney. The smoke and gases from tm,begun to pour up through the -chimhey, and they al‘most. smothered Pendergrass, who dared not quit the, place where hé crouched, from fear of being blown from the chimney-top by the gale that ‘howled over his head - with increasing violence, while the fumes from the chimney almost took away his breath. I saw my danger,” said Pendergrass, ¢ and gave up all hope of being rescued. But just then I saw some men below me doing - all they ‘could do to relieve me, and my heart bounded svith hope.”” These were some sailors whose names could not be ascertained. They courageously volunteered ‘to climb thechimney, and clambering up the frail poles and planks that remained clinging to one side of it, they succeeded in rescuing Pendergrass, who, his nervous system having undergone &' terrible strain, fainted in tne arms .of his rescuers. He suffered somewhat from inhaling gasand smoke, but is recovering. ‘

j FACTS AND FIGURES. ; A WRITER in the London Week estimates that o less than $2,000.000,600 of British capital are now invested in India." ‘ T THERE were 10,185 births—s.2ll males and 4,974 females—in Boston last year, a decrease of 345 from the previous year. e BETWEEN 1871 and 1878, beth years inclusive, 3,860,000 persons were employed in British mines, and 9,058 of them lost their lives. jeft edd o . THE Great Eastern comes to piblic notice once more as a transport for cat~ tle, to run directly between London and Texas. Itis calculated that the vessel will take at one voyage 2,200 head of cattle and 36,000 sheep. a 5 T It is expected thatthe new Eddystone light-house will be completed in about four years, and will cost something short of $300,000. The height of the tower will be 132 feet, and the light will rise 130 feet above the highest spring tide. ‘ : OuTtsivE of the settled and occupied States and Territories there are over 724,000,000 acres of land belonging to. the Nation which have been already surveyed and are open to settlement. ‘There are also more than 1,000,000,000. acres yet to'be-surveyed. . 8 el

- RECENT statistics show.that there are ‘new 10,882 wells producing oil in the State of Pennsylvania, and they pounp: out altogether about 50,000 barreis of’ ioil daily. The product this spring has been twenty-five per cent.-greater than last year, and about three times as great as the yield three yearsage. = FIirTY-ONE tons of American meéat were condemned and destroyed by the London inspectors: the svcond week in June, entailing to the 'American ex‘porters a loss of $50,000. It is said to have been kept tén days at New York ‘before shipment, and is' the first-large loss resulting from the fresh-meat traffic. About one per cent. of the meat ifrom all sources sent to the Smithfield ‘market is condemned, and a large proportion of thefish. - IT is sgid there are fifty men in New 'York who make a living as finders of lost money and other yaluables dropped .about the ferries and rajlroad ticket offices, near ti@ theaters, ngere pegple, .are buying tickets from curbstone spec‘ulators and in front of uptown ra'sbrts’,_"i ‘where young men, with more money than sense, drink 'wine. The New York finders operate in the early dawn. ‘lln the .Cit,;ie,ss of continental Eumqu they go about with lantern, near midnight, "geeijfng into gutters and all other possile places. ‘ . i THE first State election this year will be, that of Kentucky, on August 4. The otbers come ‘in order as géguows: | California, September 3, State and Ju-

dicial officers, four Congressmen and Legislature; Maine, September 8, State officers and Legislature; Ohio and lowa, October 7, State officers in part and. Legislature; Maryland, Massachusetts, Minnesota, Mississippi, ggw Jersey, New York, Pennsylvania, Virginia and Wisconsin, November 3. Governors are elected in all the States named except Mississippi, New Jersey, Pennsylvania:and Wisconsin. = THE nitro-glycerine ~works - which were destroyed by explosion at North Adams, Mass., on the 30th ult., have a doleful record.: In, December, 1870, the magazine blew up, killing Mr. - Valier, the Superintendent. In- 1871 there was another explosion, which injured nobody. In 1876 two ‘men . were killed; in 1878 one, by explosion. Now two more lives are sacriticed, though it had been claimed that the dynamite which the factory at this time was making was perfectly safe. Immediately there was a clearing. up of the fragments and preparations made for resuming work. o e THE failures of farmers are becoming alarmingly frequent in England. In 1870 they numbered 229; in 1875{354; in 1876, 480; in 1877, 577; in 1878, 815, and in the first half of ‘1879, no fewer: than 614. In addition, the facts are well known that farmers in many counties are now losing their capital, that landlords find great difficulty in reletting at any price, and that the remis--sion of rents have only met a portion ‘of the difficulty. .If ths land of England becomes less and less able to compete with that of ether countries in the growth of meat and cereal crops, -the alteration 'in the conditions will have an effect not only on-the persons: immediately concerned, but on En-, gland-as a whole. . - - . !« ~ 'SoME interesting facts are presented. ‘in the assessment list of New York. City for 1879. .The Commissioners have - fixed “the: taxable valuation of New York real estate at $918,134,380. ‘This is .2 net increase of $17,278,680. ‘lt is due, say the Commissioners, to new -buildings; improvenments and to - the taxing of the Elevated and surfacerailroads and Vanderbilt’s FourthAvenue tunnel from Forty-ninth street ‘to the-Harlem River, which has hitherto escaped assessment. : The valuation - of personal estate is fixed at $17§,934,955, a decrease -of $21,597%120.” The decrease in the waluations of "the personal estates, of insurance and trust companies, amounts to-over $2,000,000, and is due chiefly to their. changing many investments to Government bonds. The decrease in the case of miscellaneous corporatioas is due to the shrinkage of values. T B

.- —The philosophy of ¢ married happinessis luminously set forth Iy a Western lady: ““If, before ‘marriage, you take too much pains to secure admiration and love, you will be very apt to lose them -instead. Is it not the same after marriage? If your attentions to your. husband are such that you forget your. duty to yourself and others, and pamper his selfishness, then you wrong not only yourself, but him, too. He will not respect or love you as well as'if you were a little more independent.”’ . ° o

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.- A PHYSIOLOGICAL: = 1 . Coo s V ew -‘T v »q{ ringe ! ~ PR A Guide to Wedlogk and NIV it A bgokfor priva mfi & S dusiet S ettt SR s means Of cure, 994 large page price 50 ot Lt 1D ‘ I ‘on theal a -fiul g g i b of pricey 4 : b L S T e