Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1861-02-14

THE GREAT NATIONAL ROBBERY STARTLING
DISCLOSURES.

THE GREAT NATIONAL NOTWITHSTANDING
DISCLOSURES.
REPORT OF THE SPECIAL COMMITTEE THE HOUSE ON THE
FRAUDULENT ABSTRACTION oF THE BONDS OF THE INDIAN
TRUST FUND PRESENTED MONDAY, FgB. ii, l86l-rHE
GOVERNMENT INVOLVED A OF So 900 600 ny THE
NAsIrEAsASCE N oFrICE Ex-sECRETARY or WAR JOHN
h. FLOYD.
The select committee TO whom referred the reso
luton of the House, adopted the 24h day Of Decem
Der last directing them inquire into and report the
facts in relation to the fraudulent abstraction OF certain
bonds held by the government in trust for the Indian
tribes from the Department OF the INTERIOR and to whom
were also referred the communication OF the Hon. John
i. Floyd late Secretary of War; and the letter OF the
Hon. Robert McCeland former Secretary OF the lnter
Or have made their report and it involves an exposure
of the most dsgraceiu character, and seriously impl-
Gates the official integrity Of the late Secretary OF War;
John B. Floyd, Of Va.
The Committee after setting forth that they proceeded
with their duties with much expedition as possible
state that it became evident that the absrac
ton OF certain bonds from the Interior Departments
fact easily ascertaned and Indeed admitted by the per-
son who took them-was incident OF minor import
in comparison with the transactions preceding and
connected with that act and the Committee therefore
consider IL incumbent upon them to trace as accurately
and thoroughly possible through the tortuous wind
ings of vast and complicated interests and extensive
hough concealed ramicaons, the motives and purpo-
and deeds of those who have been the parties to
daring and unprecedented fraud upon OF the dprt
ments of the Government.
The Committee state the nature Of the bonds; they
purchased from time to time by authority OF law
with the money Of the Indians arising from treaty spu
lstions. Originally they in charge of the Indian
bureau, while that bureau connected with the De-
partment of War, aud remained in its custody after it
became of the bureaus of the Interior Department
in 1919, and from that time up to 1857. In that year
the custody OF the securities transferred TO the Sec
rotary of the Interior. The Government having the
bonds in its possession the trustee for the Indians
who the actual owners of them and presuming that
its agents have exercised ordinary diligence and
their cusodaus the question arises TO the extent Of
its liability for their loss This question, however, the
| Committee do no deem il necessary 10 pursue.
The reI ort states the in which the bonds
kept and severely censures the insecure arrangement
| 1t is said
Under previous administrations the bonds placed
in the immediate charge of clerk, selected for his
integrity and capacity, who kept them in safe in the
ludian 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 the aitbfuness and honesty of the PRISON
trusted with their keeping So careless mode ofrans-
acting he public business and administering trust
icate and important astounds by the magnitude of
it, folly. Neither the Commissioner Of Indian Affairs
the Secretary Of the Interior counted the bonds
in person. and the only information that either Of them
could have possessed touching their safety the pay
of the coupons every six months and such exami
atoms they occasionally chose to order to be made
by others. Fortunately for the government however,
loss sustained during previous administrations
s there the ground to believe that the Hon.
Robert MoCleland, Of Michigan, former Secretary of
the Interior whose supervision OF the trust while il
NAMED in the Indian ONCE has been called in question:
aud whose letter referred TO your committee acted
at any time or in any way unialthiul TO It.
The committee deem but inst TO add that they have
discovered nothing to involve the late Secretary the
Hon. Jacob Thompson, in the slightest degree in the
fraud and nothing indicate that he had any compiled
ty in the abstraction that he had any knowledge of it
until the time OF the disclosure by GODDARD Bailey The
appointment OF Bailey represented to have taken place
under high recommendations from distinguished men in
Alabama and South Caro-. -, and with the proper
rifles. The evidence shows, says the report that Mr.
Bailey came TO Washington bankrupt in fortune, and
political adyentuer seeking Office Being man of
knowedged eats with these evidences Of capacity and
respectabity not surprised that the Secretary OF
the Interior reposed confidence in him. While be should
perhaps have exercised more watchtu guardianship
the stocks and the movements OF his subordiuates
it cannot be inferred that he was Intentionally negligent
OF his duty. Any other public luuctionary might have
been deceived 10 the way.
The whole OF the distracted bonds is stated to
be S72 OF 81 900 each in all $S12 900.
The negotiations between Bailey and VIM H. Russell
are stated. VIM H. Russell the head of the house of
Russell, Majors * Waddel, lrm widely known as con.
tractors with the War Department Tor transporting
provisions over the western and southwestern plains
Last Russell became embarrassed and communi
Gated the fact to NJ. Luke Lea, on his way to Washing
ton former commissioner OF Indian Affairs aud part
ner OF Russell's in banking in Kansas Russell
it seems stated that he had heard OF Mr.. Bailor or
Bartev who was a relation OF Gov FlOyds and asked
Lea if he knew him. Lea said he knew hr. Bailey
and Russell supposed that he was the The report
saws that Lea both aTUl and willing witness
lt turned out that at Russells importantly Lea saw
Bailey aud told him that unless Russell relieved Gov
Foyd acceptances would be protested and he would te
compelled to retire from the Cabinet. Mr. Lea does not
state that he suggested to Mr. Bailey to rifle the Indan
trust safe but he subsequently knew that the operation
was going and endeavOred 10 Gissuade them from it,
II, obtained the solemn pledges from both Russell
aud Bailey that his should never be publicly known
| III connection with the business
Mr. Lea did not introduce Russell to Bailey but q
meeting tool place at the Var Department about the
18th Of July The parties introduced each other
| by Col w. r. D,iukard chief clerk Of the War Depart.
ment, and Secretary Fioyds most intimate friend. Col
D. as shown by bis evidence impressed Bailey with
the belief that Russell gentlemen of respecta
bity aud pecunary resources and that If the accepu
ces were allowed SO to protest. he Lhe Secretary
would be greatly sgnouzsd aud stur5ed. Russell and
Bailey held private interview II the third story OF the
Department and within le8 hours thereafter BAey de-
yered to Russell one hundred and fifty thousand dolars
OF bonds at the rooa Of the latter person in Wash
ng.on city aud on the same morning the recipient re-
turned with them 70 New York. Subsequently In Sep.
tember, 2S7 bonds, in addition TO the st,
ferred Russell the note OF Rlsscl Majors Wadde
being left security, in tbe first case In December,
| bonds additional. The Arrangement that the first
bonds were be returned within ninety Gays, but when
The second iustalment taken the lime was extended
| 20 the 1th of March, 1861.
| Why Bailey distracted the bonds is question the
committee cannot satisfactorily answer. Russell aud
Bale, both deny that the latter received any valuable
consideration for what be did. His bank account TO
same s. 900 between July aud December which,
salary of - 600 per annum, is the only peculiar fact in
this connection Il appears tina, the Transaction was ex-
prcssly to protect Secretary .oyd from disgrace.
The account Of the confession of Bailey, made
through Mr. Wagner TO Secretary Thompson, is already
known to the public. Tue immediate exposure OF the
rau is asciibed the refusal OF Auditor Fuller who re-
fused approve Baleys stock account, for the
that the coupon account did not accompany it.
From the test mony there procured, it was apparent
that the bonds had been disposed of by Mr. Russell aud
his agent and that Mr. Russell did not have it in hs
power 10 restore any Of them limited number of them
TRACED into the possession OF certain individuals aud
| corporations, follws:
Merchants, Benevolent Association, New York city (wit
Mrigs aud ireenleaI fer acceuat Of W Pur ell o.,
Richmond, Va (Sithess, A. Meiss) Mssour -: 10000
Mitchell Schenectady ~ Y, oHOn o three, 'tte not o.
Sanders Haydensvle Mass to thee, State not given
James King a Som, New York city, u. g. Rllg wtness)
CARY pode Ca New Ycrx civ witness l. O. Clark 800
Capt Porter New York ctS hattiem No gan snessl C0
Jerome ftzaUgh 4 Co, New Yo.k city purchased with
kn wldge Of theis eharscte d. H. .rlsni Nines l9eOO
W. T. Coleman Co New YORK city, (Colem wit esS OCOl
George smith, Ulcage "a Campbell wle 81 ..'.. 81 QoQ
Tomas Swami Balnofe (wn Melm witness luuOO
D. Gather BaiaCre &" Fisher ,se'') 9S SSo
Townsend colt B-ltmore, w. Fisher wless) 49,. 6cOJ
nessJ -. -, -. ... $500
slsi 600
few other bonds were ascersiued to have been pur
chased bV Riggs Co bsnkays OF Washington for other