The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-02-13
LATEST NEWS.
TELEGRAMS.
FROM WASHINGTON

Reference to the Abstraction of the India II
Trust Bonds from The Interior Depart.
ment
WASHINGTON, Feb. l2-The report of the Selec
| Committee of which Mr.. Morris, of Illinois, il
Chairman, gives detailed account of the fact.
relative to the abstraction of the Indian Trus
Bonds. Thirty or forty witnesses were examined
| including ex-Secretaries Floyd and Thompson
! The latter is exonerated fiom any completely il
the theft, but he, we'll the former Secretaries
OF the Interior, are censured for the insufficient
manner in which the bonds have been held in tha
Department, there being adequate responsibility
attached to the custodian. According to Mr.. Rus
sells own evidence, he did not know at first where
| the bonds of which he obtained possession came
from. Mr.. Byerly was an agent for the negotiation
or sale of the bonds, and Mr.. Lea was an interme
| diate party between Russell and Bailey.
1t was also ascertained that Secretary Floyd
| gave acceptances to the amount of nearly seven
millions, or from two to three millions more than
! Messrs. Russell, Majors & Co. ever earned while
these contractors received all the money due
them. The acceptances were given on the strength
| of their contract.
Senator Benjamin was important witness
About year ago, he could not exactly fix the
time, he received a letter from Messrs Duncan,
Sherman Co., asking him to ascertain whether
Secretary Floyd's acceptances were good
Mr., Ben amin called on the President, who said
he knew nothing about them or any law authori-
Zlng their issue. Mr.. Benjamin next called on Mr..
Floyd, who said the acceptances were in accord
ance with the usage of the Department, and were
given condtionally to the arrival of trains from
one point to another. Mr.. Benjamin reminded him
OF the impropriety of such proceedings, and Mr..
Floyd said he would sign more, but notwith-
standing, from April to December. he gave accep-
tances to the amount of 81 163 900. The last
was given on the 18th of December, the day that
Bailey delivered up the last supply of bonds
The Committee have ascertained that many OF
these acceptances are still out. Two hundred and
sixty thousand dollars worth of them are in the
hands OF one or two parties alone, but which are
tlons, and merely report the facts.
IMPORTANT TESTIMONY OF SENATOR BENJAMIN A.
NAN NOTIFIED OF GOV. FLoYD's SYSTEM OF ISSUING
ACCEPTANCEs.
MIR. BenJamin, who promptly appeared at the re-
quest OF the Committee, and testified with COM
mendable and courteous frankness states that dur.
ing the brst session of the present Congress some
t"elve or eighteen months ago, he was written to
0y the attorney of Duncan, Sherman & Co., of
New York, and his opinion requested as to the le-
gailty OF acceptances issued by Gov. Floyd to Rus
sell, Majors q Waddell.
1t was mentioned in the letter that these
'dra1ts, as they were then called, were offered
for negotiation with the assurance that they were
Issued with the appreciation of the President and
Attorney General. Mr.. Benjamin visited the Pres.
'aent and submitted the inquiry to him. The Presi-
aent repIed that ne knew nothing about the matter,
that they had been issued acithout anu kno,cedoe of
has, that he did not knoo By uirtue of ,chat Lae III en-
had been issued, but that he (Mr. Beniamiu) nio6t
rely, if Coz. Floyd had issued them, he had issued
them property and that he had better apply to him
,cas acting.
INTERVIEW WITH GOV. FLOYD.
In pursuance of this suggestion, Mr. BENJAMIN
called on Gov. Floyd, and was informed by him
that the matter had not been submitted to the At
torney General, as was stated; that the drafts were
issued in pursuance of long established custom
OF the office; that he was not aware of any law
actually authorizing their issue; that he would in
quire into it; that the acceptances were issued to
MoIn r. "all III
certained that the trains for Transportation which
they had contracted to send from St Louis to Utah
had actually started on their way; that the nav
ments were to be made under the contract in in
staiments as the trains arrived at different points;
ana that, having received intelligence of the actual
departure OF the trains, he had accepted, in ad.
vance OF their arrival the intermediate point hay-
ing certainty that they would arrive
~ suggested to him" says Mr.. BENJAMIN, "that
thought he was acting imprudently: that if anv
accident should happen to these trains by attacks
oy Indians or any other cause, and thev should
iall to arrive, it would be impossible for him to nav
the acceptances upon intelligence OF that fact. and
mat that would give good reasons for complaints
and Investigations which would be injurious to
him, and urged him to discontinue the practice
Two days atterward received note from i'm in
forming me that he obliged for the frank state
ment had make to him, and that upon refec
ton he had determined he would accept no more"
GOV. FLOYD CONTINUES HIS OLD HABIT
1t has been shown that, contrary to the asser
tion of Governor Floyd, no practice of issuinp ar.
ceptanceS had ever prevailed in the War Depart
ment previous to its introduction by himself that
he issued these acceptances indscriminately and
without reference to instruments or the arrival or
departure OF trains, and without regard to money
which was due.
One would naturally expect to find that Governor
Floyd, having been admonished BY one whose DO
siton and legal learning gave authority to his ad
vice, having confessed the illegaty of his proceed
tngsi f,gti ana EXPRESSED determinaton to make
lurtner acceptances, would have proceeded there.
after with great caution and circumspection even
II he did not entirely discontinue his previous mol
ICY 1t appears, however, that-supposing the
note to MIR. Benjamin, before referred to, to have
been written year ago--there have been issued
by Governor Floyd since that time, acceptances to
the amount OF 900, viz In April $40 OOO in
May, 100000; June, S350,000; July, S95, 900; Au-
gust, S235, 900; September, Sl25,O0O; October.
S2lo,Ooo. 10 this amount must be added the $685.
OOO OF unconditional acceptances of which there is
no registry, and the grand total is as above stated
Having had his error and its consequences dis
tnctly pointed out-havng expressed his intention
TO refrain IN future from the commission of similar
acts, he still persists in his former course and ar
tually issued acceptance for Sl35 900 at a date
so late as the 18th of December, 1860.
" neither this manifest contempt of counsel DISC
oedlence OF law and violation of solemn promise
can be reconciled with purity of private motives
and taithfulness to public trusts is for the House tn
determine. 1t is the opinion of your committee
that they cannot.
RECOMMENDATIONS FOR NEW LEGISLATION
our committee have now reported, so far as as
certained, all the material facts connected with the
abstraction of bonds from the Interior Department
and with series of transactions unprecedented in
their character, and remarkable for alternate exb
billions of fraud and folly.
As one Of the results of the examination thew
have made, they submit a bill to provide for the
more certain and efectual punishment of crimes,
such as those that have been brought to their no,
uce' and also amendatory of the second section of
the act of Congress, approved January oath. 1871,
entitled, can act more etfectually to enforce the
attendance OF witnesses on the summons of either
House OF Congress, and to compel them to disclose
testimony"
They also beg leave to suggest that the fluctua-
hons OF the stock market, and the delay and un-
certainty in the collection of the interest on the
bonds, seem to demand some further legislation in
regard to the Indian Trust Fund, as a measure of
obvious justice and humanity to the Indians
All OF which is respectfully submitted on behalf
ol the committee. L. N. MORRIS, Chairman.