Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1861-02-20

statement to the records of the War Depart
ment, is deficit of Sc, ,137 1896 TO fall upon
me holders Of these acceptances or 10 be assumed
IN some may by the Government.
WHAT WAS DONE WITH THE ACCEpTANCFs.
Inc evidence shows that the acceptances have
peen sold in various parts Of the United States
Wherever bank Or private individual could
oe induced to purchase. Inasmuch, however,
as the amount of those that have been traced
| directly into the hands of present holders con-
stituted but small fraction of the sum still
| unaccounted for, and as owners are daily filing
additional claims at the W ar Department, it is
| deemed Unnecessary to give detailed state
ment of the discovered acceptances or to
make other mention of them than to refer to
the papers relating thereto presented by the
| War Department, and to the general evidence.
1t is proper, however, to remark in this
| connection, that while your committee do not
deem 1t necessary TO give said details, the
data In the War Department fixes the minimum,
amount OF outstanding acceptances known to
that Department at 81 ,445, 900.
PECULIAR RECORDS IN THE WAR DEPARTMENT.
By reference to the testimony of Mr.. Irwin,
clerk in the War Department, it will be seen
that he kept registry of the acceptances on
loose pieces of paper, only as they were report
ed to him from time to time, and no other was
made. He states, too, that there was no
gistration Of the S798, 900 of conditional ac-
ceptances which fell into Mr.. Bailey's hands
and that Immediately after the discovery of the
abstraction of the bonds Governor Floyd went
to his Office and directed him (Irvin) to enter
an order of cancellation of those acceptances,
which he did upon a slip of paper as he had
| entered the dates and amounts of others that
| had been issued. The acceptances being in
| the hands of the Hon. Jacob Thompson, hav
| ing been placed there by Mr.. Bailey in lieu
of the distracted bonds, an order of cancella-
| tion, at such time, was simply an order a
gainst the Government. Had the acceptances
been held by other parties, the order would
| have been equally futile for, if legally issued,
it could not invaldate them.
PAYMENTS TO RUSSELL, MAJORS wADDELL.
| 1t also appears from the records of the War
Department that while these acceptances were
| being issued to the amount of millions of dol
| lars, Russell, Majors and Waddell, were regu-
larly receiving their pay for the services per-
! formed under their contract, in money, from
| the Government. The aggregate amount OF
| the payments made to them. in cash, during
the years 1858, 1859 and 1860 is S4 ,842, ,9644l,
and large portion of this sum was paid by the
| proper officer at Leavenworth City, Kansas.
| Gov. Floyd admitted in his evidence that ev
| cry acceptance which he made ssran against un-
| earned money" and was designed to give the
| contractors "the credit of their contract"
| Yet there has not been discovered the slight
est indication that he made any inquiry about
| the payment, or concerned himself to see that
| ances. Reference to the testimony OF General
| Johnson, of the army, and of Mr.. Atkinson, the
| Third Auditor OF the Treasury, and to de-
| tailed statement of the payments which pre-
sented to the committee the amounts of the
earnings and payments, will more fully appear.
| 1t would, perhaps, be sufficient to say upon
! this point that Mr.. Russell acknowledges that
| there is now but small sum due his firm for
current earnings. But it was considered desi-
rable to remove all uncertainty from this ques-
! ton, and to ascertain positively whether Rus
sell, Majors and Waddell had ever presented
any claim TO the War Department for extra
services, and whether any claim for such SER
| vices had ever been paid by that Department.,
and correspondence was accordingly had with
| the present Secretary OF w ar, the III on. oseph
| Holt, who referred the letter of the committee
| to Gen. j. f. Johnson, Quartermaster Gene
raj, and Col. J. 2. lor, Acting CommiSSary
eff General Subsistence. 1t will be seen from
their replies, that no such claim has ever been
made, or allowed. Gen. Johnson, however,
states that there is an account amounting to
S27 800 40 still suspended, which the late Sec
retary of War directed to be reduced by
! s.disalowance" of 50, 1852. He also states
| the sum due them on the 4th of January last,
upon current earnings, to be S27, 750.49, from
which must be deducted fifteen thousand dol
lars for duplicate payment. This amount
was ascertaned by telegraphing to Leaven-
worth, cat which place the accounts of Russell,
Majors and Waddell are kept,) and, altho' 1t
may not include other earnings in New Mexi-
| co, it cannot be largely increased. The facts,
therefore, are, that Russell, Majors & Waddell
not only absorbed all the sums earned by them
under their contracts, and sold all the bonds
they received from Mr.. Bailey, but also raised
very large sums of money upon the acdeptan-
ces issued by the Secretary of War.
THE PRESIDENT NOTIFIED OF FLoYD's DoJNGs.
| Senator BENJAMIN testified that some twelve
or eighteen months ago he was written to from
| New York by the attorney of Duncan, Sher-
man & Co., and his opinion asked as to the le-
gaity of the acceptances issued by Gov. Floyd
! to Russell, Majors and Waddell; that, the let
| ter having stated that they were issued with
! the appreciation of the President and Attorney
! General, he called on Mr.. Buchanan, who told
! him he knew nothing about them, but If Gov
Floyd had issued them, they were issued prop
erly that he visited Floyd, who said the mat
ter had not been submitted to the Attorney
| General, that the ssdrafts'' were issued in pur-
suance of ng-established custom of the Oh
! flee, but not until after he knew the trains Tor
transportation had left st. Louis for Utah !;
that he (Benjamn) urged Floyd to discontinue
the practice and that the latter had promised
he would. Other testimony shows, however,
that Floyd continued to issue acceptances in
discriminatory, without reference to install
ments to the arrival and departure of trains,
or without regard to money which was due !;
the aggregate issued after Mr.. Benjamin s
warning being 50, 900. Concerning this,
i the Committee say ay:-ssHaving had his error
and its consequences distinctly pointed out !;
having expressed his intention to refrain, in
future, from the commission of similar acts,
he still persists in his former course. and ac-
tualy issued an acceptance for $l35,00O at a
date so late as the 18th of December, lo6o.
Whether this manifest contempt of counsel,
tfsobedience OF law, and violation of solemn
nromisa can ha reconciled with purity of pri-