New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-03-30
WIN, H. PUSSELpS E.YPLAHATION or
THE BOND ROBBERY.
rras rae Nl,n. WI Erenina Post.


William II. Russeil, Of the army contract hrm oil
Russell, Majors " Wadaell, publishes long defense
of bis conduct ID the matter Of the stolen Indian trust
Bonds His statement, filing pamphlet OF siksseu
naoes ia rot only elaborate attempt at sflustica-
ion hut an indignant remonsraDce against the action
If he Specal Investigating Committee appointed by
Congress- Mr.. Russell, regarding bimsef as the VIC
tim of circumstances, denOunees the report OF tse Com
mittee as unfair aud partial covered over with
"sstatements and false deductions and as contain
ing within itself :" its own manifest refutaion.
After ndulgng in these observations Russell pro-
eeeds 10 show the nature of his contract with the Gov
eminent, appeals 10 officers Of the army TO testify to
the fidelity with which he has conducted the work Of
transportation for the troops dHells pSSn 9e losses
sustained BY bis firm in tho affair of the Utah SUPPLIES,
states that bis acceptances largely negotiated and
were falling due while he had no means to meet the
demand; aud he comes down to the time OF the theit
of the bonds This part of the story - go curious tnat
we copy it entire. II will be that he claims to
have been ignorant of the reo character of the bonds
in lis first negotiations with the Clerk, Bailey but
that having once tasted the sweets OF plumber, be
made second essay in the same line, with full knowl-
edge Of the rick.
His lNTRoDucrfoN TO BAILEY.
When was thus surrounded by embarrassment, and
while was at Washington nsBg every eXeftlon IN my
power to get the claims of orr firm aganst the Govern
ment allowed and paid, l was introduced !? Godaia
Bailey who as have sinee learned, was disonIslng
officer in e service OF the Government. Before meet
ing with him and forming bis acquaintance, L had
learned that he was an able and Influential lawyer,
who would be able 10 assist me IN my business VIII
the War Department. All the circu instances attending
reformation OF bis acquaintance inquiries respect
ing the acceptances of the War Department and the
probable effect upon the Secretary OF Wa OF Their oe
inc dishonored-are set forth at length in my published
statement made 10 the Select Committee OF the House
of Representatives. and need not now repeat them'
NE EFFECTS THE LOAN.
II is sufficient to say that he informed me that he mad
some State stocks at his command, which might use
for purposes of bypothecaton, if could return them
in ninety days told BIN that had no DOUBT OF my
ability to return them in that time. Tho loan was ac
cordngly effected, and proceeded on the eNeGihg o
tho same day. to NewYork with the state stocks ana
used them in the manner and for purposes already IN
dicated When | obtained them and pledged them for
money, with which to protect the maturing aceePtah
COS of the War Department, was wholly ignorant OF
their true character. This statement l MADE 20 we
Select Committee under the soemnites OF luolci1i
oath. was not aware at that time, nor Tor Two OF
three months thereafter, that there was an lhdlsh
Trust Bond in existence. II only when so Jks de-
olined and the parties with whom had mace the ny
pothecatOn notified me that they must sell then OF
have an additional deposit to make good the Margin
thai learned their character. returned 10 Nhsh
ington and sent for Mr.. Bailey, with the view OF ii-
forming him that / would not be able TO return me
State stocks which had borrowed from him, 10 the
time stipulated in our agreement.
nv IElRsS THAT THE BONDS WE'RE STOLEN
In the interview which then had with him, told
an Of the demand that had been made upon me by te
PARTIES who held them TO increase the deposit, ana o
The notice Of their determination TO sell them unless
such additional deposit were made ne 70 ot lie udi"n
Trust Fund This disclosure completely oYerWheineu
Ine. Il added ENHANCEMENT TO embarrassment: n'w
instantly and with intense reality, how dihlSul' ~
would he to extIicaie myself from my uniolihals VI
lemma / had no means az my command WIN WIN
10 redeem the hypothecated bonds, and, as they were
likely 10 be sod feared that ght not be able ever
to recover them. The Government owed our hrm' ~
will be from this paper for Losses and irelgns N
noliey only portion of this claim has been presented
for adjustment 20 the Department and Congress. l
knew the great difficulty Of securing payment Tor 80
large an amount, and 70 presented 1t es 10 procure an
ndorsrmsnt Of the principle involved end In the hope
| afterwayd Of obtaining the entire amount. lhe he
Urtment was in procession If all the facts and as Ia
as was able Judge had taken no exception to tet
claim itseh without pretending 70 unoer7'sTd il lt
tie ustioo Of each particular item thereof The late
Secretary Of War Gays, in his published statement toa
we were entitled TO thaa BAH million OF dol
| lars."
| When discovered that the bonds bad borrowed
and hypotheeated belonged TO the Indian Trust Fnnd
would have freely gwen the whole 81 this barge
claim and everything | worth beside, 70 have
been able ut that moment TO restore them. Other &C
ceptsnoes Of the War Department were then maturing
and likely To 20 TO protest. This knew would 30 i'm
pair the credit Of Arm 10 render the sale Of the
bonds certain ard their recovery impossible. had nc
time TO devote 20 calm reflection. week or ten days
might have enabled me TO mature some plan by which
to recover and restore then but in tue mean tine they
werd'lAey to be sold. Them and in trat event !
| kusw that tie Government accep'auccs which had
been issned 10 our irm under circumstances that
placed me under the highest possible obligation to pro
ieeI them, mus. inevitably 60 TO protest
| RUSSELL GETS DEFER n TBf MrPE.
In the strcss of my diacutes was In no condition
and, as have said before had no time TO weigh tht
responsibility, on tho ono hand Of wrecbing our hIn
discediiing The War Department, and permitting TIC
hypo,hecaied bonds TO be cold beyond my reach
! ar,,inst that OF the other band Of aecepipg moN
bonds with which to protect those TIA, had already
used until Congress should authorize the Department
to pay us orr drrs determined upon the latter al
terna,ve. This decision involved the necessity of using
"A surcnt amonnt OF bonds 10 protect from protest the
! other maturing accoptancrs Of the War~Depsrtment
for IL perfectly obvious that protest would put il
wholly and permanently out Of my power 70 return
either the rst second 10, Of bonds. Accordingly,
accepted additional lo aud used them, partly 80
protect thoee already hypohecatod but chioy 10 raise
money upon them TO pay off tho other acooPtsnces then
| maturing.
| HE IS IN IMMINENT PERIL.
II is proper 10 remark in this connection that in
| ceiyng the second lot Of bonds l gave in exchange
| therefor tho receipts OF firm In my own hand.
writing to be deposited in tho Interior Department az
| the evidence that had received them TIE money
due our Fla was very largely in excess of tie bonds
and left in the department the evidence that Lad
received them there could have been intention on
my part 10 defaud the Government, liz 1t possible
that the Government lose dollar Oh account OF
| this Transaction.
Shortly after obtained the econd 10, of bonds the
monetary crisis, occaso toned by the agitation of tie
| country came on Financial embarra ssmcnts began
TO be felt Ill the country Stocks of all kinda
commented running down with a rapidly that flled
me with the greatest possible alarm. Ny fear wa
that the bonds had hypothccatod would go down TO
very low figure and he sold at snch a sacrifice would
still further embarrass l saw, in word, that
| WAS in imminent peril.
had received the second lot of bonds the better TO
enable me 10 re,oyer the trst and .h a kH0nedee 81