postal-savings account, key funds, and other trust funds. Inspector Brannon instructed me to have the combinations of the vault and safe in which these funds and stocks were kept, changed so that Harrison alone would know the combinations to this particular vault and safe, so that he only would be able to have access to them. This was done promptly. Inspector Brannon also stated that the other employees of the office, including myself, should stay out of this vault and safe in the future, 'As though it contained a den of rattlesnakes.' This was literally complied with. "Every effort was continually taken to safeguard the funds and stocks of the post office at Bainbridge and no other shortages came to light until May 1931, at which time Inspector W. B. Brannon during a regular audit and investigation of the office discovered a shortage in the accounts of John A. Harrison amounting to approximately $650. This shortage was in the postal-stamp stock, postal savings account, and key funds, all of which were kept exclusively by Harrison. Mr. Harrison admitted full and sole responsibility for these shortages. Inspector Brannon began this investigation on May 5, 1931. One week later he called in Inspector T. W. Overstreet who helped him continue the investigation for some 2 or 3 days longer. "On May 16, 1931, the services of John A. Harrison were suspended by order of the Post Office Department, and he was removed from the office. After the inspectors had concluded this last-named investigation several shortages chargeable to Harrison were found, which increased the original shortage of approximately $650. Among these later-discovered items which increased the shortages were some invoices chargeable to the office for stamp stock received, and which should have been debited by Harrison on the books kept for that purpose. Instead of entering these invoices he hid them away. This was one of the ways in which he covered shortages in the stamp-stock account. "Finding these invoices, I became suspicious that the real extent of the total shortage had not, perhaps, been ascertained. I immediately reported these newly discovered shortages to the inspectors who had conducted the investigation, and also wrote the Post Office Department requesting a list of all invoices chargeable to the office. This was done during June 1931. The reply of the Post Office Department indicated an additional shortage of fourteen-thousand-and-somehundred dollars, bringing the shortage to more than $15,000. I immediately called by inspectors back to the office by long-distance telephone, and the further shortage was substantiated. "In addition to failing to enter invoices properly chargeable to the office, Harrison used various schemes to cover up his peculations, among which were making and keeping a double set of books and reports. It appeared later from photostatic copies of reports furnished the Post Office Department, covering quarterly stampstock reports, that Harrison had forged my name as postmaster willfully and indiscriminately and without my authority or knowledge. "These peculations of Harrison extended over a long period of years. In fact it is my belief that the various times on which these different peculations occurred, aggregating more than $15,000, has never been definitely ascertained by the Post Office Department. During all of this time, both prior to and subsequent to my connection with the office as acting postmaster and later as postmaster, the inspectors of the Post Office Department had audited the office at least once a year. The shortages were so cleverly and diabolically hidden that the inspectors failed to find them. "To this last mentioned shortage aggregating more than $15,000 Harrison admitted his guilt, absolving all other employees of the office of any knowledge or complicity whatsoever. He was later indicted, entered a plea of guilty, and was sentenced to a term of 4 years in the Federal Penitentiary at Atlanta, Ga. "By the application of Mr. Harrison's bond and other credits such as retirement fund, etc., the original shortage was reduced to $10,068.28. As postmaster I was at that time under an $18,000 bond. The inspectors making the audit made formal demand upon me at the time for the balance of $10,068.28 which Mr. Harrison's bond and other credits failed to cover. I replied stating that owing to the fact that I had acted under orders of the inspector in making Mr. Harrison personally responsible for the particular funds in which the shortages later occurred that I did not believe that under the terms and conditions of my bond either I or my surety were liable. Since that time the matter has lain practically dormant. I was allowed to serve on as postmaster until my term expired in 1935, 4 years later. I was then out of the service for some 45 days, and was then reinstated into the service by the Post Office Department and transferred to the post office at Griffin, Ga., as a clerk in which capacity I have served continuously since. "For more than 20 years I have been a post-office employee. I have given the best years of my life to the Service. During these many years I have striven at all times to give the most efficient and conscientious service of which I was capable. I am sure that it is not at all necessary to point out to you that the highly specialized skill so essential in post-office work is really worth very little in other lines of business and industry. In other words, I know post-office work and no other. However, I cannot remain in the Service unless relieved of all responsibility in connection with the shortages of Harrison, as I have no funds or property out of which the shortage can be made good. "For the reasons herein stated I earnestly hope that the bill for my relief (H. R. 7843) is passed at this session of Congress." Deponent makes this affidavit for the information of any official of the Post Office Department, any United States Congressman or Senator, or other United States official charged with the responsibility of acting on this matter. CLIFFORD J. WILLIAMS. Sworn to and subscribed before me, this February 7, 1940. [SEAL] B. E. HATCHER, Notary Public. WASHINGTON, D. C., January 12, 1940. In re H. R. 7843: A bill for the relief of Clifford J. Williams. Member, Committee on Claims, House of Representatives, Washington, D. C. DEAR MR. RAMSPECK: On yesterday I introduced in the House the abovecaptioned bill for the relief of Clifford J. Williams and the same was referred to the Committee on Claims. In 1926 Mr. Williams was appointed postmaster at Bainbridge, Ga., in which office he served until 1935. Mr. In 1931 a shortage was discovered in the accounts of the Bainbridge, Ga., post office which, after a long period of auditing, was finally fixed at the sum of $15,634.30. The assistant postmaster, Mr. John A. Harrison, admitted the shortage, was removed from office and sentenced to a term in the penitentiary. Harrison was under bond in the amount of $4,500, the American Casualty Co. being the surety. The postmaster, Mr. Clifford J. Williams, was under bond with the same company in the amount of $18,000 and the postmaster's bond covered the acts of his subordinates. By application of the principal amount of Mr. Harrison's bond, his retirement benefit accumulations, salary, etc., the debt was reduced to $10,068.28. After the term of office of Mr. Williams, postmaster at Bainbridge, expired, he was transferred as post-office clerk to Griffin, where he is employed at the present time. On September 21, 1939, by order of the First Assistant Postmaster General, the entire salary of Mr. Williams was suspended in order that the amount due him as salary might be applied to this shortage. Mr. Williams has no property and is unable to pay this shortage. Since the entire salary of Mr. Williams has been suspended he is living on the bounty of friends until he can obtain relief. I will be very grateful if you will assist me to press this bill to an early hearing and also if you will make any suggestions to me that you think might be of benefit to me in getting the matter completed. With best wishes, I am, A. SIDNEY CAMP, Member of Congress. 76TH CONGRESS 3d Session SENATE GUS ROTH { REPORT No. 1894 JUNE 19 (legislative day, MAY 28), 1940.-Ordered to be printed Mr. BROWN, from the Committee on Claims, submitted the following REPORT [To accompany H. R. 382] The Committee on Claims, to whom was referred the bill (H. R. 382) for the relief of Gus Roth, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment. The facts are fully set forth in House Report No. 1883, Seventysixth Congress, third session, which is appended hereto and made a part of this report. (H. Rept. No. 1883, 76th Cong., 3d sess.] The Committee on the Judiciary, to whom was referred the bill (H. R. 382) for the relief of Gus Roth, having considered the same, report it favorably to the House, with the recommendation that it do pass. This bill authorizes the Secretary of the Treasury to reimburse one Gus Roth in the sum of $137 for the amount of loss of postal funds charged to him as a clerk of the post office, at New York, N. Y., on account of cashing a forged Treasury check; and releases Roth from any liability to the United States on such account. FACTS In October 1927, Gus Roth, a clerk in the post office at New York, N. Y., cashed a forged Treasury check in the amount of $137. The check was stolen by a thief who was convicted and sentenced to serve a term of imprisonment in Sing Sing prison. The thief was identified to Mr. Roth by a person having a postal savings account but this depositor had withdrawn his savings and left the United States before it was known that the check had been cashed on a forged signature. Had complaint been made prior to the withdrawal of the sum on deposit in the postal savings, Mr. Roth could have recovered his loss from the identifier. UNITED STATES POST OFFICE, Station "I", Division of Delivery Mr. JOHN J. KIELY, MY DEAR SIR: On October 29, 1927, I cashed a Treasury check amounting to $137, serial No. 99-138 and No. 30510 to Eduardo Tirado, whom I have known to be a respectable citizen, and also had at that time a postal savings account at Station "I" for a number of years. The depositor, Mr. Tirado, had $650 on deposit at the time the check was cashed. Mr. Tirado, the depositor, has been depositing and withdrawing for several months after the check in question was cashed. Mr. Tirado did not close out his postal savings account until February 2, 1928, when he withdrew $460, which was over 3 months after I cashed the check. As a matter of fact no action was taken by the payee of check as far back as January 30, 1928, which was 3 months after I cashed the Treasury check and 2 days before Mr. Tirado, the depositor, closed out his account and left for Santo Domingo. If the payee of check, Mr. Luis Ramos, 26 West One Hundred and Thirteenth Street, would have made his claim immediately, the Secret Service agent, Mr. F. A. Morris, and post-office inspectors could have held Mr. Tirado for same as he did not close out his account, as shown, until 3 months after the check was cashed. My contention is, had the payee, Mr. Luis Ramos, made his claim immediately and the Federal Reserve Bank of New York, N. Y., notified, and not a delay of 3 months, the endorsee of check, Mr. Tirado, could have been held responsible and same taken out of his postal-savings account. Therefore not due to any fault of my own, I request the Department to release the charges against me and reimburse me $137 for which I was demanded to pay. I also suggest that the State Department take the matter up with the American consul at Santo Domingo in trying to have the endorsee, Mr. Tirado, pay the $137 for which he vouched. Respectfully yours, OPINION GUS ROTH. The committee is of the opinion that justice requires that the clerk, Gus Roth, be reimbursed. He had required endorsement of the check by a depositor who, at that time and for several months following, had a sufficient deposit which could have been subjected to the claim for reimbursement. The payee, however, did not make claim on the check for several months during which time the depositor's funds could have been reached, but the payee's claim was made only 2 days before the depositor withdrew his account and left for Santo Domingo. Hon. JAMES M. FITZPATRICK, DEPARTMENTAL LETTER House of Representatives, Washington, D. C. FEBRUARY 8, 1937. MY DEAR CONGRESSMAN: The First Assistant Postmaster General has referred to me your letter of the 27th ultimo, with which you transmitted copies of letters addressed to you by Mr. Gus Roth, a clerk in the post office at New York, N. Y., in which he asks to be relieved of responsibility for loss resulting from the cashing of a forged Treasury check in October 1927. You ask to be informed if it is necessary to obtain relief for Mr. Roth by special legislation, or if the matter can be adjusted by this Department. The records of this case show that the matter was carefully investigated by a post-office inspector. The inquiry disclosed that the check was stolen by a thief who was convicted and sentenced to serve a term of imprisonment in Sing Sing prison. The thief was identified to Mr. Roth by a person having a postal-savings account, but this depositor had withdrawn his savings and left the United States before it was known that the check had been cashed on a forged signature. Had complaint been made prior to the withdrawal of the sum on deposit in the postal savings, Mr. Roth could have recovered his loss from the identifier, but as the check was issued by another department of the Government, the Postal Service was not responsible for the delay in detecting that it was not properly paid. Section 1409, Postal Laws and Regulations, covering the payment of Government paper from money-order funds, is very explicit, and reads as follows: "Government paper of any kind may be received from responsible persons whose endorsement thereon the postmaster is willing to guarantee, provided such paper will be accepted at par." From the foregoing it will be observed that Mr. Roth was not obliged to cash the paper and in doing so guaranteed its endorsement. Under these conditions 1 |