Cincinnati daily press. [volume] (Cincinnati [Ohio]) 1860-1862, 1860-12-25

WASHINGTON, December 24.-The entire
extent of Bayliss's operations is unknown.
He had in charge FIVE millions in State
bonds. Another loss was discovered in the
Interior Denartme@ to-day; $500 in cash
il reported to be missing. Secretary Thomn-
SON promises to restore the L. 49,, -.
private fortune. Bayliss y a reIative n,s ~
Secretary Floyd. '' VI
VIM. II. Bissell, ?. contractor to carry sun.
Plies to the ar'rly in Utah, was arrested In
new ork ro-day by United States Marshal
Rynders, on charge of being implicated In
the hypothecation of the Indian Fund Trust
EEonds. de was ordered to be taken imme-
diateJy ~ Washington.
It appears from the facts in connection
with the late abstraction of bonds that about
Eve months ago, VIM. e. Russell, of the firm
of Majors, Russell 4 Waddell, held about
$l,00O,0O0 of the official acceptances of the
Secretary of War, given cOnditionallY, in ac-
cordance with the usual course of business
for the transportation of supplies for the
army, under contract with the Govern
ment.
Mr.. Russell, not finding himself able to
negotiate these acceptances, and being
greatly embarrassed pecuniarily, and aseer-
tanning from Bagliss, with whom he was inti-
mately acquainted, that the latter had con.
tol Of over So, 900, 900 of Indian Trust funds
Invested in bonds of different States, arranged
with him to let him have about $500,0 900 of
these bonds to be hvnothecAted in New
York, and as security for which he gave
Bagliss the acceptances of the War Depart
ment which Bailey placed in the safe where
the bonds were kept. Recently, these bonds
have greatly deprecated, and the bankers in
New York who made advances on them.
therefore, called for additional security.
Bagliss, in order to save the bonds delivered
over three hundred thousand dollars worth
of them additional, in all 1910, 900.
On the 18th instant, he addressed letter
to the Secretary of the Interior, frankly
imparting these facts, and requesting an in
vestgatiOn. This letter he gave to Senator,
to be delivered TO the Secretary on his return
from North Carolina, which request was
complied with. ... ri
The investigation yesterday proved the
truth of these Statements.
Suter, Lea 4 Co. compose the banking
firm through which the negotiation was
transacted; yet nothing is Aown to impli-
cate any except those Immediately concerned
in the business, as above stated.
1t may be stated that the acceptances of
the Secretary Of War have been given from
time to time, in compliance with contract
of Russells, Majors & Co., and, until recently,
that firm have had no difficulty in negotiate
ing them.
Bagliss Yves arrested to-day at the instance
of the Government and required 10 give
bail in the sum of $1,000 for his appearance
at the next term of the Criminal Court. 1t
is thought the Government is protected, as
the acceptances more than cover the amount
of bonds distracted.
The Special Committee of the House, to
which an investigation of the subject is re-
ferTed, consists of Messrs. Morris, of Ill;
Conkling, Of N. Y; BOcOck, of Va Harris,
of Me-, aud Case, Of Ind.
The Speaker has directed that the names
of the South Carolina members be retained
on the roll, therefore, not recognizing the
action of their State as severing their con-
nection with'the House, as they themselves
maintain.