The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-13

nIy one OF the other two Is accounted for by the
rpoDaence between Mr. Fitch and Mr. Bailey, aifSIay
is embraced IL The ABSTRACT, ana
Unnamed was sS .he Of Mr. heay beard the
rp custodian OF The bonds under Secretary Nc Aelali
Ar Beard says:-in the advertisement eight haear i
bond banded TO Mr Fitch as stated was not EN- race
occurred IN this way II needed only one hun rel an
Sory three Tennessee bonds to complete the eight hndre
and seventy missing, but office book list Of bonds,
as prepared by Mr. Bailey indicated IA as missing. The
secretary directed us TO include az the la as at that
time some uncertainty felt whether there might
no, han $40 missing. The advertisement was
prepared haste, and before the fdh investigation by
sir hammond, Mr. Williamson aud myself was
peted To avoid the ncaDvenienHe Of referring ., ah
irac, B your committee viii state tnat n!rety Of
these bones were issued oy the state OF Missouri
iCr the 81. Lonis and Iron Mountain RIiroad,
riney by The same state ior The Hannibal aod 81 -
ssph read hundred and thirty for the North Misso ri
road Ely one for the Missouri Pacific road seventYtwo
by me State OF North Carolina dated January 1856 ooe
hoodred and four by the same state lated July, 1891
one hundred and nineteen by the State, dated
January, 1857 forty five ny the same state, dated Oco
Der 1885, by the STATE date April, 1851; III
by the State dated October, 1851; fpurteca By
the State OF Tennessee, dated January 1857 i've by The
same state, dated January 1854: forty by the same
STATE dated snuay 1856 ter by tire same state dated
annary 1866; seyenty-bve by the same state, da'ed
Some aiaIti,,y occurred in the Identification of thu
Nortn Carolina bonds several witnesses state, that
they held bonds where nnmbers corresponded
they bad been held By themselves by .hose from
wnon oey ob'an"d them long before those IN the late,
hist coTrect. The solution o. the aii!caty mis-
erstaudng may be found IN this The state If North
Carolina ssnei bonds 10 aid in varions enterprises, and
shey were divided into classes each class bearing dl
seT"nt dae, yet having precisely similar series Of mum
hers party NIGH, Therefore bold bond whose mum
her oorresponded with the number in printed list
bat The BONDS would not Dc idenci because belonging
30 separate casses des grated cy different dates There
10 have been cause Tor similar mistakes in rcte
reTce % the bonds isssci By other states
YI,E NlcortTsoSs HEwfasy Mr.. RUSSELL nm. HALEY.
&Dlam D. Russell IS the head OF the house Of Russell,
M QfS SaaGel, bfnl WiNsiF known % contractors
wb ihe War Department Tor transporting army provisions
The Western Southwe pans. NJ. Russell
stated the committee that he hao heard ia New York
oS such Mr. Bailey, although he did not exlcty
remember MS name, who hal been IN city sell
Chgsqn securities and FLORIDA bpadsine latter for nr.
luee, a Seuaior from that STATE. When asked from
wonn he received his nitrmat ,on gave tho answer
usually resnfied 10 IL such cases-vz "le co4lt not
remember" The next beard 81 Mr. Russell u that he is
hrs way from Nea York to Washington, IL company
with LUXE Lea, Esq. n banker OF the at'sf city NJ.
lea waeicrmefy Commissioner n' Indian Aftrs aac y
partner of Mr.. Russell in the banking business at
seavenwortn, Kansas. In conversation that ems aed
between them Mr.. Russell made known TO Mr. Len hs
embarrassed circumstances ADD assei i ne (ir l.sa
Tim t@r. RnssciD. Mr. Lea answered negative.
He states ~ his testimony that 81. Eassel suggested
that he bad heard Of in Washington by the name
Of RsIies or Bnriey, who was relation Of Governor
yd AM agent for the negotiation or sale Of stocks,
and asked his trend ir be kuew HIN. Mr. Lea was
asair compelled TO give negative reply bnt stated
sOaL he knew a man there by the name oi Bailey and
NJ Russell sad he suppose he was Tue nan % whom
~ ia search h. s very evident from Mr. Lea's
animation that he both an arttn and an unwilling
witness He had 70 be pressed With great pertacity 10
induce him 90 disclose What he knew and then hts
ausaers 20 lerposed with irrelevant and eqaiso
remarks, designer TO relieve him from suspicion q
uompc,.y. thai your committee are compelled reile
taBtly notice the absence of the caDdor and frank
that they mien. reasonably expect 10 fad 10
hls responses He compelled, however. 10 say that
informed Dir. Russell that Mr. Bailey WIS IN
condition to ssstst hun; that he had no stocks or
money, aud 'as poor as anybody" Before sepa-
rating, Mr. Russell seeming SIN 10 believe that aid
migft be ostaoed "a the quarter indicated, requested
Mr. Lea 10 see Mr. Bailey ia regard the matter Mr.
cpmuled with request, and stated Bailey
that Mr. Passe bad SAID unless assistance rendered
the acsciancs or Governor Floyd would be protested
be would be complied to retire from the Cabinet,
Mr.. Lea however, careful 10 state III his evidence that
lie gave ~ n,inat,on 10 Mr. Bailey thai he NIGH nee
lie STOCKS he bad in his charge nelongmg 70 the Indian
Trust FUND. Mr. C. q. Wagner, who is nearly related 10
Nj. Raey and whose hlnds was first placed hts con
fesiun states his evidence, given (yuar commi.tee
pleased say with ull and honorable irankness,
that he learned from Mr. Blcy thai Mr.. Lea did mention
the soefs 10 the conversation between them. AMI, in
r-ed TINS would naturally he inferred from the TACT that
Mr. Lea perfectly familiar with tie business OF the
department and knew that Mr. Bailey had the stocks IA
charge, and rad 10 large command OF priva.e means
MI. Lea admits chat, after the delivery OF the first install
% bones 10 Mr. Russell, he knew tha, Mr. Eissei
and Mr. Ba'ey Wee engaged ~ rihng the Indian Frnst
bond safe that they go confessed u him; that Dc had
converse with them The subject and that he
.esyorod dssuade them from further ssions OF
inc crime. He also states thai he rcfraiued irem in
forming the Of the Interior OF the transactions
referred to, and that he exactcd tue most solemn
pledges from MS two FRIENDS that his name shogld
never be pnchcy known in connection with the
bnsuess Rut his precautions have not availed 10
aGord b.m entire mpton frcm rcspons btty
connection with the transactions your committec
have inquired INTO. Mr. Lra did not introduce Mr. Bailey
Mr. Russell, aocs he state THAI he appointed for
them place ol>neemr y. It happened thar toese two
persous did the War department The
day that the between NJ, Lea aud VI. Bailey
occurred, Br Russell says this was between the l2tn
and 1871 Gays Jals II PROBABLY the l3rh
cay a thar month Tho chef clerk Of he war Depart
snout e Rotary Toyds most intimate friend, Col W. r.
frtnkard Was The rnedu through whom, the intro lu.
took place on thai dry shey had their 1is intor
view a. The War department Col. Drinkard, as shown
ny his oWu evidence impressed sir. Bailey with the be
A.FE hat G~ Rn- diana af .
b!iy and pccrtiary resources and that the accept
the secretary Of War allowed 20 80 to pro
test he tthe secretary would he greatly agoozed and
disturbed Nessrs Russell and Bailey heid private
interview in The bird story o. the department, add
within a few hours thereafter Mr.. Barley delivered TO Mr
Rnese $50 COO 81 honds at the of the latter
Washington city, and on lie came evening recpi
states that be left With ar. Bailey The note Of Rus
sell, Majors Waddel in their stead as security.
Ninety ~ these hundred and ity oonts were
E@sours, aad The balance fmuessees Mr. Russell does
reccilcct, at first whether the January
pons were IN the bonds but states NAV subsequently The
most OF the bonds we're retired 5y D IA 10 order " ooan
those coUpons 10 return 70 Mr. Bailey, as he iBaley)
positive 10 his request 70 have them returned The
coupons arag been taken IN lie bonds we're after yards
cs,,osed a Tie obiet was, 81 course 70 coucea the
fsand for u The coupons were OF hand was not POI
haole b4t the bonds would be demanded inquired of.
According 10 tine statement o. Nj Russell. there
no frtber correspondence y communication between
Mr.. Bailey and b.melf until The september following 81
tsst me ne returned 10 Washington For the purpose of
Gotta nc others An Interview was hold with NJ. Bai
hey, the result Of which was thai isree Dan3red
and eighty bonds, in addition I, those
brst taken, transferred e. nr. Russell ~
lbe following DAY The protection Of the OF
Secretary Foyd t1r necessity q providing for the other
s.ceplances ana the honds previously delivered, sni
~hcp serc tGefel to have been hyp1toeca'ed, were
assgpod The ior requiring Grler assistance.
IN tnss the FIRST instance the paper o. Russell.
MAJORS wadde WIS lett - security sr E.ssel states
that this conference Mr. Bailey first informed hm
that The bonds IN bis possession belonged 10 The adao
Trust rnd. Il the agreement tnat the boads drs,
taken shnuld ne returned wtnn nev dss but at the
second interview the time EXTENDED b. the An ol
March 1891 In roeer Mr. Russell r. urued the south
caro- ria and Florida bonds oue hundred aud forty
rfty IN NUMBER having asceriairci that ne cnu's Dos
negotiate iheo aud North Carolina Donis wore sosttp
red 10 Their stead Mr. Rfssell sgrin apPe.red WASH.
lngtop December following, aud, 90 the gcounds
80 successfully relied upou before, VIZ The pto.
lection Of the War Department from disgrace and
the bonds previously t,keu from sicrihct,
he WIS enabled obtain from Nr. Bailey
three hundred and thirty three bonds as afd'oaa "a
vance making The cntre number absracied eight nun
red aud seventy. From the bonds obtained o. iae Sc
nnd ihrA already referred TO- " s evIdeot