Heavy defalcation and reported escape to Yankee land.
--On Saturday morning last,
Captain Thomas S. Knox, Commissary at Camp Jackson formerly of
Fredericksburg, Virginia, and
George W. Butler, formerly of
Norfolk, Virginia, but recently of New York, late a teller in the
Confederate States Treasury Department, left this city, and, it is reported, have gone North.
Since their sudden departure it has been ascertained that
Captain Knox is a defaulter to the extent of $350,000 of Government funds, which he converted into sterling exchange, through the negotiations of ex-teller
Butler, at
Sutton & Co's banking-house.
Some time since
Butler resigned his position in the Treasury Department and was turned over to
Captain Coke for conscription, but in order to permit him to superintend the settlement of his accounts as teller, he was granted sixty days furlough, which afterwards was extended fifteen days more.
Since his resignation it had been his practice to appear at the Treasury Department once a day and continue the examination of his accounts; but up to last Friday no defalcation had been discovered against him. The reasons which induced him to leave the
Confederacy are, therefore, unknown to his friends.
It may have been that he was approaching a crisis in his accounts with the
Government where in irregularities occur, or that, as the time of his extended furlough had nearly expired, and he had been assured that no further indulgence would be given him, the dread of going in the army prompted him to leave.
Captain Knox obtained a passport at the
Provost Marshal's office upon his personal representation that he had a blind brother he wished to convey to
Fredericksburg, and upon this false representation merely, without any papers entitling him or his blind brother to a passport, he was furnished with the necessary important papers to enable him to carry out his purposes.
Butler, it is said, acted as the blind brother, and succeeded in getting on the train by wearing deep blue goggies, muffling himself up and leaning upon the arm of
Captain nox.
