The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-12-28

This morning. n warrant for his arrest and
commitment was made out by Capt. God
dard Chief of Police. and 1t was determined
tonlace him in Jail without an examination
Mt this time, unless that was demanded by
his counsel, Mr. Carlisle.
As soon as Mr.. Thompson received the let
ter and ascerrained the probable where
abouts. in New York of Bailey's alleged
coufederate-Wm. II. Russell. OF the firm of
Russell and Co., the great overland pony ex-
press and army transportation contracton-
he telecraphed to Marshall Rynders to effect
his arrest but up to the hour at which we
90 TO press we have not been able to learn
that he is in custody. He is believed to have
reached Washington this morning per rail,
getting into the cars at Philadelphia, and
leaving them only after they had backed out
Of the Washington depot, to return in on
another track eluding the officers on watch
for him, by jumping of thus on the out
skirts of the city. Russell is said not to be
the only person implicated besides .Bai-
ley. A Washington banker and Others,
whose names we have not been able to learn,
are rumored at the department to be well
nigh us deeply involved in the transaction,
as aiders, abettors, advisers, &C., and Us
sharerS in contemplated profits Of it.
Bailey had three millions of dollars in
such bonds in his custody, and might rs
easily have taken the whole. Our impression
is that the particular bonds can be identified
II 80, while parties who may have innocently
purchased portions of them may lose their
money 80 invested, the Government may not
ultimately be loser.
Bailey was appointed to Office on perhaps
the strongest testimonials as to his alleged
high character that were ever offered in be-
half of any other applicant for Government
clerkship, though since his appointment ne
has been known to the men about town as u
fast liver and regular frequenter of the
faro banks.
This morning Bailey went over to the Jail
in company with his counsel, Mr.. Carlisle,
and gave himself up, and was fully COM
mitted by magistrate.
P.S.-Since writing the above, we have
learned additional particulars of the Affair, as
follows: viz: Bailey is said to allege that he
loaned Russell the bonds under his persua-
sion and those of a Washington banker, not
for the purpose of speculation in stocks, but
that by selling them he might meet sundry
accepted drafts OF his firm on the War De
partment, payable out Of any money due
them or 10 become due to them from the
Government, to meet which the Department
had then no money at command OF course
he alleges that he anticipated that when the
Department might be in funds, the stocks
would have been re-purchascd and handed
back to him. Russell gave him an amount OF
such accepted drafts equal to the amount OF
stocks b illegally loaned to him, which
said-so accepted drafts he placed in the safe
as security for the eventual return OF the
Safe bonds.
1t is further said that Russell obtained
from the Bank of the Republic, in New York,
ON the State bonds-that bank now having
them in its possession-the money with
which to take up the accepted drafts on the
War Department. IL is doubted whether
the accepted drafts which Bailey held US
security are really any security whatever
But that fact will be settled very shortly, we
apprehcnd, on further investigation.
Russell has been arrested in New YORK,
and the public are awaiting further develop
ments. There is also another rumor that
dcfalcation oS $4,000 in another direc-
ton had been discovered Its truth | cannot
ascertain. Events that are occurring strength
en- the belief entertained by some that one
secret of the desperation cvinced by some in
regard to the dsunion matters grows out in
part, and especially among the employees OF
the government here, Of a wholesome fear
that the Lincoln administration will probe
to tue bottom the rascality, POPULATION, and
plundering which has been going on in the
various departments Of the public service.
Both branches of Congress have adjourned
over to Thursday. In the Senate to-day,
Nicholson of Tennessee made speech taking
issue with his colleague johnson on the Sc
ccsssion question. The bill for the admission
of Kansas, passed by the House, is made the
special order of the day for Monday next.