The weekly Minnesotian. [volume] (Saint Paul, Minn. Territory) 1852-1858, 1858-04-24

| A1Snt upon several DIRK 1TS0Soct1OD0s
The New Bedford Fort Schuyler and Fort Smelling Land
Sales Evidence Of Grand Plumber Combination OF
New York Politicians.
WAsHrNcToS, April IL.
A recent letter in New York Herald, pur-
porting to be written here, and pretending to
give history Of the sale, to Government,
of some land in the vicinity of New Bedford,
| for war purposes, has, most unfortunately for
the ap; aren't objects of the writer, excited in
quiries which have resulted in exposing a
clue to some very important and interesting
developments. This letter undertook to ex-
plain how property estimated by good judges
to be worth ut most no more than $2UO per
acre, should, upon being wanted by the Gov.
crnmcnt, have sud Ienly appreciated to the
value Of ST. 300 per acre, without duplicating
anybody in particular in fraud upon the
Secretary of War; but a single inquiry has
thrown wonderful amount of light upon the
subject, thus involved in hopeless mystery by
the Herald writer.
1t appears from an enquiry directed to the
proper quarter, that the person of whom the
Secretary Of War made that purchase of pro-
perty at New Bedford was Mr.. Bizby, of
New York, who conveyed the land and re-
ceived the exceedingly handsome sum of
| $3.50, 600 therefor This instantly affords a
probable clue to the whole transaction. Mr.
| Bixby is the head OF firm of which the Hon.
John G. Mather and w. McIntrye are sup
posed to be silent members, and whose bust
ness as bonded warehousemen, under the iavOr
OF MIR. Collector Schell, is rightly supposed
to be of quite lucrative character. The
additional circumstance that some time pre-
vious to the sale, Mr.. Mather visited New
Bedford to take q look at the property in
question, serves TO confirm the suspicion al
really excited in short, there are the strong
est reasons to believe that the same partie.
who will appear to be involved in the Fort
Schuyler speculation, when the report Of the
Investigating Committee in communicated to
the House, also invented and practiced upon
the Secretary of War the second, and, it is
believed still grosscr ''game of speculation;
at New Bedford. 1t has been discovered, in
addition, that these bold and successful plot
tiers were also at the bottom of the Fort
Smelling transaction; IN fact, the same thread
runs through each of these swindling perfor-
mances, and in each case it comes home to a
clique OF about seven men, prominent as poll
ticians and having official position to back
them, in New York. The Custom House is
|
and the influence of Mr.. Collector Schclrs
position appears 10 have been the leading
circumstance which gave them their good
luck in disposing of their property to Govern
ment at such telling rates.
The sum of Sis, 900 was paid Mr.. Rich
ard Schell for the Fort Schuyler property
of this, at least $4,000 is safely estimated
to have been clear profit to Mr.. Schell and
the parties interested with him the Collec-
tor being the man upon whose appraisement,
as commissioner appointed by Government
to ascertain the value of the property, it was
purchased as that enormous price. 1t is an
interesting fact that Mr.. Richard Schel was
not the owner of the property until after the
commission to appraise it came to his brother,
and that the Collector did not appraise its
value until after the original owner had part
ed with it for small sum to Mr.. Schell and
bis associates. All these facts do not merely
| look like collision to cheat the Government,
but they prove it.
The Fort Smelling property was purchased
ostensibly by Franklin r. Steele of Minneso-
ia, but hands of the New York Custom
House spectators appear when the purchase
money comes to be paid
The sum OF 100000 was paid into the
treasury by Mr.. Steele for this property,
which consisted of fraction short of 5000
acres, situated at the confluence of Minnesota
and Mississippi rivers, $ miles above St. Paul.
Opinions differ greatly as to the success of
this speculation the Hon. Robert Smith of
Illinois, who moved the Committee of Inves-
| tigation. testifying that the property was
worth double or treble the sum paid for il ;
Others saying that they would not take it
now at the price given. There was motive,
| however, for Mr.. Smiths action in the case,
since he owns large amount of land joining
this reservation on the north, including the
water power at st. Anthony's Falls but
whatever may be the success Of the bargain,
Mr. Steele raised a large portion of the pur-
chase money among the parties in New York
who effected the ,rt Schuyler sale; it being
said that $4,000 of the $4,000 paid out
of the Treasury to Mr.. Schell was paid back
again on the Fort Smelling property. Other
gentlemen, whose names I know, were inter-
ested in this affair, bnt as there is a cOntrarie-
ty of opinion as to its character, and it may
turn out to be merely fair business transac-
ton with no elements of fraud about it,
refrain from connecting them publicly with
the parties to the dsgraccful operations Of
New Bedford and Wilett's Point. In the
two latter cases, there appears to be little
doubt that the Government has been most
extensively ard shamefuly defrauded by
somebody.
The report Of the Investigating Commit
tee, of which Hon. John b. Haskin is Chair
man. cannot fail to show how and by whom
this was done in the Fort Schuyler case and
If their powers are enlarged 50 "a to enable
thpm IN inv StiUatp fha Now Raifnrd aff:,i,
they have already clue which will lead them