St. Charles City Republican intelligencer. [volume] (St. Charles City [Charles City], Iowa) 1857-1861, 1861-03-07
The Six Million Robbery.


on the fraudulent abstraction of In
dian bonds and the circumstances con-
nectcd Herewith, illustrate the usual
result of Investigations into official
plunderings. The horse is gonc-but
prcciscly ly who took him and where he
is remains mystcry--but it is recon-
mendcd that the stable door be looked
after in future. This is no fault of
the Committee. They are put on the
track of expert rogues, who have long
previous had the field to themselves,
and were as ingenious in conccaling
their frauds as in perpetrating them.
But still, enough has been discovered
to disgrace the country, and to lead
to the hope that condign punishment
will yet be mctcd out to some of the
parties. These, SO far as the report Of
the Committee extends, range them
selves about three central figures,
which, for the sake of brcvity and lu-
cidity, we shall take up in our own
order.
VIM. II. Russell is the head of the
house Of Russell, Majors & Waddcll,
a firm widely known as contractors
with the War Department for trans
porting army provisions over the
Western and Southwestern plains, ana
largely employed in connection with
the Utah expedition. The firm haze
had the reputation of doing a very
profitable business, but which requires
a large amount of money to carry it
on. While under this necessity it ap-
pears that Mr.. Russell hears of Mr..
Bailey at Washington who, he is led
to believe, can accommodate him. He
goes there, meets Bailey in the Var
Department, which is not his place, and
is introduced by the Chief Clerk and
intimate personal friend Of Gov.
Floyd, then Secretary of War. He is
accommodated by Indian bonds fraud
ulcntly passed over to him by Bailey,
who is their custodian, to the amount
Of $l50,O00. This was about the
middle Of July last, and the transac-
tion thus begun was repeated until
the sums reached $4,000. Previous
to this, and, as it is said, Introductory
to it, Mr.. Russell had negotiated ac-
ceptanccs to large amount made in
his favor by the Secretary of War, in
advance of his (Russcll's) earnings,
and contrary to the practices of the
government. Thus far Mr.. Russell,
whose trial is yet to take place.
GODDARD Bailey, born in South Caro-
lima, lately resident in Alabama, came
to Washington in 1857, bankrupt in
fortune, but well supplied with recon-
mendations, and was appointed clerk
in the Department of the Interior, to
have charge of the Indian Trust Bonds.
His salary was $4,000 per annum, and
he was the man whose reputation had
gone abroad as capable of helping
along the great house of Russell, Ma
jors & Waddell. He did it by alb
stracting the bonds before referred TO-
which were kept in such loose way
that the theft was easily concealed
for a long time. After thus aiding
Mr.. Russell, Bailey's own deposits of
savings with his bankers went up to
five or six thousand dollars. Bailey
kept his official accounts all fair on
the face, and the robbery was incl
dentally discovered through the fideli,
ty of one Of the auditors. The trial
Of Mr.. Bailey will probably fill out
the details Of this outline.
Thus far we have been dealing with
$4,000 thieves-now we must rise
to " financiers in millions. John b.
Floyd, Secretary of War, began in
1858 to issue acceptances in favor of
Russell's firm, and to write letters to
capitalists, urging their purchase or
discount. He made these issues at
random-at the department, at his
house, or wherever he happened to be,
keeping no accurate record of them
and he pursued the employment with
reckless ayidity, until the enormous
aggregate of Sc, 1877 1895 has been dis
covered by the committee. But there
is necessarily some uncertainty abou,
the balance yet out. These acceptances
were mostly in advance of earnings
and were unprecedented. Senator
Benjamin testifies that he unfolded
their true character to Secretary Floyt
eighteen months ago, and received the
assurance in return that no more
should be issued : and yet the dates
show that Floyd, subsequently to tha
time, issued further acceptances t,
the amount Of 81, 2,l63, 900.