Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1861-02-27
THE GOVERNMENT ROBBERY
REPORT OF THE COMMITTEE

! ferred the resolution Of the House, adopteI
ON the 24th day of December last, direct
ing them to enquire into and report tn
/ facts in relation to the fraudulent abstrac
ton of certain bonds held by the Govern
ment in trust for the Indian tribes, from
the Department of the Interior, and t
whom were also referred the communication
of Hon. JOHN B. FLOYD, late Secretary @
War. and the letter of the Hon. RoBER,
McCLELLAND, late Secretary of the Interi
or, having submitted their report, we Civ
some extracts:
The report opens by describing the bondi
United States stocks and certificates which
were abstracted. They were held in trus
for certain Indian tribes.
Under previous Administrations the
bonds were placed in the immediate charge
of some clerk, selected for his integrity anC
capacity, who kept them in a safe in the
Indian Office No stamp or other mark Of
designation was placed upon any of them,
with the exception of small portion, and
the only safeguard the Government had
was the faithfulnoss and honesty of the
person entrusted with their keeping. Sc
careless a mode of transacting the public
business and administering a trust 50 deli
cate and important, astounds US by the
magnitude of its folly. Neither the Com
misSioners of Indian Affairs nor the Sec
retary of the Interior ever counted the
bonds in person, and the only information
that either of them could have possessed
touching their safety was the payment Of
the coupons every six months, and such
examinations as they occasionally chose to
order to be made by others. Fortunately
for the Government, however, no loss was
sustained during previous Administrations.
The report then speaks of GODDARD Bal
", the clerk in whose hands the bonds
were placed, saying The evidence shows
that Mr.. Bailey came to Washington a
bankrupt in fortune, and political adven-
t1rer seeking Office He brought with
him. however, the highest testimonials of
confidence and respect from various distin-
guished men in Alabama, where he lived
and in South Carolina, where he was born,
and had previously resided
THE ADsTRAcTED BoNns.
All the stocks, including those that were
abstracted, were kept in room in the
Interior Department, occupied by Mr. Bal
". IL a ssfe, the key of which was in his
sole possession. The extract marked 'B. "
will show the character and respective a
mounts of the distracted bonds, as well
as thes States by which they were issued,
except in this-that the whole amount, as
shown by said abstract, is S72. of $1,000
each. when, in fact. Mr.. Bailey delivered
to Mr. William H. Russell, so only.
o o
BAILEY AND RUSSELL 5 NEGOTIATIONS.
The report goes on to show that w. H.
Russell and GODDARD Bailey had negotiations
during which Bailey delivered to Russell
these bonds in installments, both parties
of course knowing that the bonds were not
their property.
Mr.. Bailey's motives for stealing the
bonds are not clearly ascertained, but the
Committee are. however, constrained to ex-
press the conviction that behind the events
that have been made conspicuous, and be-
meath the exterior of the transactions that
have been described, is purpose which,
although successfully hidden, was none
the less powerful and efficient, and has
given unity and vitality to the schemes
now partially exposed.
Mr.. BAILEY's CONFESSION.
A part of the evidence adduced is found
in Communication from Mr.. Bailey, dated
Dec LIST, 1860, and addressed to the Hon.
Jacob Thompson, Secretary Of the Interior,
containing a statement that portion of
the bonds constituting the Indian Trust
Fund, amounting to $4,000, were no
longer in his possession. This confession
was, on the 18th of December, placed in
the hands of Mr.. Wagner, with the request
that it should be delivered to the Secretary
of the Interior five days before the expira-
ton of his term of Office, or, as Mr.. Wag-
ncr understood it, five days before the
fourth of March On the Goth of the
same month, Mr.. Bailey addressed a note
to Mr.. Wagner, requesting that the note
previously committed to him (Mr Wagner)
should be given to the Secretary of the
Interior Immediately upon his return from
North Carolina. Mr. Thompson arrived
on the afternoon of the 22d of December.
AUDITOR FULLER THE CAUSE OF THE EXPO
SURE OF TIE FRAUD.
Mr. Bailey, in the exercise of FORE
thought prudent to avoid detection, made
up his stock account for the current year,
showing on its face that all the bonds were
safely in his custody, and had caused its
presentation to the second Auditor, Mr..
Fuller. That officer refused to approve it
for the reason that the coupon account,
DESIGNED to be a check upon it, did not ae-
company it. 1t is, perhaps to this refusal
that may in part be attributed the early
disclosure of the fraud.
The report next speaks of the disposi-
ton of the stolen bonds. 1t appears that
they were sold by Mr.. Russell and his
agent to certain parties in New York, Bal
timOre, Chicago, sc.
RUssELL's BUSINESS MAN MAKES HIMSELF
SCARCE.
An important witness, Jerome B. Simp-
son, who would be found in New York, it
was expressed could not be obtained. He
had acted in that city as the confidential
business agent of Russell, Majors & Wad-
dell, and knew, it was believed, all the de
tails of their business transactions with
the Government, and of the abstraction OF
the bonds. The most active and diligent
search for him proved unavailing. As
none of his acquaintances remembered to
have seen him since about the day follow
ing Nr. Russell's arrest. and as no trace OF
him has as yet been discovered, it IS evi-
dent that he absconded or concealed him
self to avoid the responsibility of his acts,
and an appearance before the Committee or
the Courts.
RUSSELL DoY'T LIKE TO FACE THE MUSIC.