Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1860-12-27
THE REPORTS FROM WASHINGTON.

then sent officer Doudigan and Mr. Allen on with the
cused % W Ashlrg'V"
THE REPORTS FROM WASHINGTON.
WAsniNGToN Dec. %, 1860
1t appears from the fac in connection with the late
distractions OF the bonds Of the Indian Trust fund.- that
about five months ago VIM. II. Russell OF the firm of
Majors Russell Waddtll, held about a million of dol
lars OF the accepauces OF the Secretary OF War Th,ss
accepnces had been given condionally for ranspOra-
ton of supplies OF the army under contract with the
government. Mr.. Russell not finding hmscfable TO ne
goae these accepanccs and being greatly cmbarras ed
pecuniarly and ascertaiuing from GODDARD Bailey nth
whom he was intimately acquainted that the latter had
control OF three millions OF Indian trust funds in
vested in bonds OF different States arranged with i'm
TO let him have a million dOllirs-Ihtsi bonds TO be ny
pothecated in New York-aud security for which, be
rave Bailey the acceptauces 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,
IN order 10 save the bonds delivered $500 900 worth
OF them additionsl-in all $4,000.
On the 18th inst he addressed letter to the Secre-
try Of the Interior frankly impartng these facts and
requesting an investigation This letter he gave 20
Senator to be delivered TO the Secretary his
from No tn Carolina which request was complied with.
The investigation yesterday proved the truth II these
statements Luter Lea * Co. compose the bank ng Grm
through which the negotiation was transacted
As high government officials are connected with the
matter the details of the transactions concerning the ac
eeptlnces alluded 10 ia my dispatch last night are kept
back and probably will not be thoroughly known until
developed by the House Special Committee appointed to-
day investigate the matter at the request of Secrc-
~ Thompson Who asked Speaker Pennington, as spc-
cia favor to make the committee strongly republican
as possible to avoid the possibility of the charge that his
Mr Thompson party friends upon the committee
troed their action TO shrld him. lie desIrous OF
the most thorough aud open Investigation into the whole
matter.
Those who profess TO know the facts in the case say
that Mr. Russell who has been largely engs ged in
porting United States stOres across the plains Utah and
beyond finding himself financially embarrassed more
than year ag0 obtained the consent of the Secretary
of Warto draw upon his department 10 the amount OF
one hundred thousand dollars The Secretary accepted
the draft Some time afterwards he made similar re-
quest tor the amount assuring the Secretary, the
atters friends gay that the first DRAFT taken care or
To accommodate Russell the Secretary accepted the Sc
cond This mode OF operating, it is said was repeated
ak seven times The friends Of the Secretary in e1-
planning this assert that the Secretary of War had no
idea that Russell accommodating the drafts hut sup.
posed be only renewing them aud that the Secreta-
~ OF Wars obligations did not amount AZ any time to
over one humid ID thousand doara A. last finding out
the fact it said that certain banker in this city went
to Bailey who had charge of the Indian bons and told
him that his bailey uucle the Secretary of War would
be ruined Il he did not save him. aud informed him that
he had the power to do so, by allowing him to use the
State stocks held in trust for the Indians TO him
against the acceptances given TO Russell.
Bailey baied to night in three thousand dollars
Mr. FAINT Of the firm Of FAINT RttenhOuse q CO.. bank.
ers, and Nj CALI of the firm OF 81 w. Gait Brothers,
jewelcrS, we're bis surety. BseyiS among people this
evening as large and apparently as happy as usual.
Russell was presumed by Secretary Thompson to be
worth over two millions of dollars.
The special committee of tina House. to which an in-
vesgaon OF the subject is Referred consists OF Aessrs
Morris Of Illinois; COnkliug of New York; Bocock of
Virginia; Harris of Maryland and Case, Of Indiana.
RuGs will be brought to testify before the Commit
| tee
The Secretary Of WI will be subpenaed to appear
before the Committee, bu whether he will or not
does not appear.
There are Others here and some who have suddenlE
disappeared, whose testimony will be valuable in the IN
vestigatiOn.
1t has been discovered within few days that two -
lions of dollars are missing from the United States Urea
sury that is not accounted for the books The eerls
have been busy ever since the discovery searching The
the books TO ascertain whether actual robbery has
been committed to the above named amount or not
The matter Is not yet known 10 the public but the eli
OF the governm. mt ia the secret and very much
exercised fearing the report may prove true right upon
the excitement consequent upon the robbery in the in
terror Department
Many members OF Congress suspicious that gene
raj grab game is going in the various departments
the government in view Of the prospective dissolution
Of the Union and the belief is strengthened greatly by
the events OF day or two and t is seriously conem
plated 10 institute thorough investigation into the affairs
OF each bureau of each of the departments Congress
could not be engaged in better work, for there IL nc
doubt that the suspicion of members referred to is justly
grounded
Russell will be requested to resign the Presidency oil
the California Pony Express Company, but tho company
will continue lis efficient business with new head.
Bailey, il is said, has been living ut the Of two
hundred dollars per month"; with salary Of sixteen hun