The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-12-25
THE REPORTS FROM WASHINGTON.

THE REPORTS FROM WASHINGTON.
WASHINGTON, Dec. "a, 1860.
II appears from the facts in connection with the late
distractions Of the bonds Of the Indian Trust fund that
about five months ago Vim. H. Russell, Of the firm Of
Majors Russell Waddell held about million of dollars
Of the official acce Of he Secretary of War; These
accepances had been given conditonaly in accordance
with usual OF business transportation Of such
supplies OF the army under with the
Mr. RUSSELL not finding himself able to negotiate these
acceptances and being greatly embarrassed pecuniary
and assertainng from GODDARD Bailey with whom he
intimately acquainted, that the latter had control
of three millions Of Indian trust funds invested in
bonds Of different States arranged with him to let him
have about half million d,llars--these bonds to be
hypothecatea in New Yorkand, security for which,
he gave Bailey the accepances of the War Department.
which Bailey placed in the safe where the bonds
kept Recently these bonds have greatly deprecated,
and the bankers in New York who made advances on
them therefore. called for additional security Bailey,
ii order TO the bombs delivered $500 900 worth
e them addtonal-n all $50 900.
On the 18th inst no addressed letter TO the Secretary
of the Interior frankly imparting these facts and
auesng investigation. This letter he gave Sena
tor TO be delivered to the Secretary his from
North Caroline, which request complied with.
The investigation yesterday proved tbs truth Of these
statements. Luter, Lea Co. compose the banking firm
through which the negotiation transacted Nothing
either in the papers in the investigation shows that
any parties except those Immediately concerned in this
business above related in the slightest
concerned in the transactions
IL may be state that the acceptances Of the Secretary
Of War have been given from time 10 time In compli
'anoe with contract with Russell, Majors Co., ami
until rccena'y that Arm have had difficulty negoa
ting them.
It thought the government is protected, as the &C
.cepiances than cover the amount Of the bond
abstracted.
The report received here this afternoon that Russell, Of
the arm Of Majors Russell o., government contract
ors had been arrested in New York does surprise
any here his Is freely connected with the
prey robbery, whether justly or otherwise.
As high goverr< 1t officials connected with the
matter the dctaso the transactions concerning the
ccpanoes alluded to my despatch last night are kept
back and probably win not be thoroughly known until
developed by the House Special Committee appointed
to-day TO investigate the matter, at tho request
OF Secretary THOMPSON who asked Speaker Pennington
special favor, to make the committee strongly
publican possible 10 avoid the possibility Of the charge
that his (ar n onpsons) party friends upon the
mittce controlled their actions to shield him He
DESTROYS Of the thorough and open cation In
10 the whole matter.
Those who profess 10 know tho facts In the say
tha, Mr. Russell who has been largely engaged in trans
porting United States stores across the Plains
20 Utah and beyond, finding himself financial
Iy embarrassed than year ago, obtained
the consent Of tn Secretary o War TO draw upon his do
p,mcnt the amount OF hundred thousand dollars
The secretary accepted the draft some ,me Afterwards
lie made sinr request for the amount, assuring
t secretary the aiters friends say tina, the FIRST draft
was taken care o. To accommodate Russell the seere-
tary accepted second This mode 81 operating II Is
SAID was Jcatcd ak seven times. The friends Of
he secretary 10 explaining this assert that the Secretary
OF War had nA idea that Russell was accumulatng the
drafts but supposed he was only renewing them, and
that the Secretary Of Wars obligation did not amount at
any time 70 over hundred thousand dolare AT last
finding the fact II is said that certain banker In
this cry went to Bailey who hal charge Of the Indian
ponds and told him that his (Hacys) uncle, the secre
tary Of War would be ruined II no did not save him, and
informed him that he had tho power TO 90 %, by allow
,na him 10 use the state stocks held trust for the In
ns H. save him against tho sccepanccs given 70 Rus
seil
paley was bailcd tonight in three thousand dollars
Mr. Fsnt q the nrm Of FAINT Renhouse Co., banker
md Mr. Gait OF the Grm Of NJ W. Gait Brothers, jewel
here his surety. Balcy Is among people this even
ing ~ large and apparently as happy a. usual
Russell was presumed by Secretary Thompson TO be
worth over two millions Of dollars
Tho speciai committee OF the House, 10 which nvcs
Morris. Of Illinois; Conkng, Of New York; Bococki Of
Virginia; Harris, Of Maryland, and Case, Of indiana
Russell viii be brought 10 testify before the Committee
The Secretary q War viii be subpoused 70 appear DO
fore the Committee but whether he win consent not
does not appear.
There arc others here and so-ne who have suddenly
disappeared wboss testimony will be valuable In tbe in
ves'isstion.
IL has been discovered within a few lays tina, two
million Of dollars missing from the United states
Treasury that " not accounted for on the books Tho
clerks have been busy ever since the discovery search
ing the books to whether actual robbery has
DcoD committed 10 The above named amount NOS The
matter net yet known 70 tho public bit tho Officers q
fhe government are Ia the secret aud very mgh
sed fearing the report may prove truc right upon tho
excitement consequent upon the robbery In the Interior
Department.
Many members Of Congress are suspicious thai 4 rene
ri grab game Is going IN Tho various Departments d
'fhc government in view u the prospective dissolution
OF tho Union and the belief Ia strengthened greatly by
abe events Of . day two, and u Ia seriously couem
plate TO lnstitlte thorough nvcssration Ito ths
Affairs a each Of each Of the Departments Con
uress could not engaged In better work. for there
no doubt that the suspicion Of members referred 70
Justly grounded.
abe California pony Express Company but the p~ny
>~,icoa,inue It's afncert business with new Lead.
h'"~. II is ssd, hss been living 81 tho rasc Of two