Tag Archives: Fraud
…altho saving of one salary to the publick is but a small consideration yet the Salutory [salutary, i.e. beneficial] scheme of oeconomy so valuable to our repubican Goverment can not be carried into full effect unless things of this kind be noticed…
Thomas Underwood, Jr. to Thomas Jefferson, July 25, 1802
I recieve information that [John] Hopkins Commr. [Commissioner] of loans in Richmd. being allowed by law 2. clerks and having scarceley occasion for one, in fact employs but one, & gives him the salary of two. will you have this enquired into, and exact restitution of the double salary illegally given.
To Albert Gallatin, August 3, 1802
Patrick Lee’s Explanation
Careful leaders promptly investigate abuses under their command.
Underwood was the whistleblower, informing Jefferson that John Hopkins, a Federalist officer-holder and businessman in Richmond had authorization to employ two clerks when he needed only one and was paying that one a double salary. Underwood acknowledged that saving one salary was negligible, but the nation’s republican principles must be upheld, and the people would appreciate the gesture.
Jefferson had to contend with many government employees who were appointed by Presidents Washington and Adams. He accepted Federalist officers who performed their duties impartially but had no patience with ones who abused the trust placed in them.
He acted immediately in this case, directing his Treasury Secretary Gallatin to investigate and recover any funds spent illegally. Two weeks later, Gallatin furnished the President with a certificate verifying that Hopkins had submitted the names of the two clerks he claimed to employ. Gallatin went no further, saying Jefferson’s source must verify whether Hopkins actually employed only one.
The results of this matter are not disclosed, but Hopkins remained in his position for another two years.