New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-02-13

camber bi depos increased largely former ones,
lint amounted In the aggregate TO not more thap $5V
or So Geo. II is true that this sum Is al one 10 DO
in me pesseesion of peIson whose saiasy was but
20 ono ner annum and who wac supporting family,
vet II would not of itself constitute ground Tor grave
msnciop or afford clue 10 the discovery OF the pur
poses of the sbrracior. MIR. hiey, IN DIS eoixeLsa
tions with various Witnesses alleged that his design
yas 70 protect the character of Gov. Floyd ana 10
cave him from the dishonor and retirement from be
Cabinet that would be necessarily incident to the pro-
test and discovery Of the aceeances winch mao pee
illegally issued TO the firm Of Russell Majors wad
delft Whether this consideration was the sole motive
of his conduct IL is left 10 the House to determine
Your Committee are, however, constrained 10 express
the conviction that behind the events That nave ueeh
made consliC uous and beneath the exterior oil the
trarsac,ions that have been described, s purpose
Which although sully hidden was none the less
powerful and efficient and has given unity and vital
ity TO the schemes now partially exposed.
A nart of the evidence adduced IL from a comm9-
nication from Mr.. Bailey dated Dec. le6o and ad-
dressed 10 the Hon Jacob Thompson, Secretary Oh the
Interior containing statement that portion OF the
bonds constituting the Indian Trust rund amounting
~ ESQ 600 were TO longer In his possession. ms
confession was On the 18th Of Decemser placed IN the
hands of Mr. Wagner with the request that 1t should
be delivered the Secretary OF the Interior n'e oays
before the expiration Of his term Of office, or, as Mr.
Wagner understood it, FIVE days before the lth Oh
March. On the Goth Of the same month MIR. Bailey
addressed a note to Mr.. Wagner requesting that the
note previously committed to him Mr.. Wagner should
be given 10 the Secretary OF the Interior lnnedi'ey
mon bis return from North Carolina. Mr.. Thompson
arrived on the afternoon Of the I'D Of December On
the evening of that day the acceptances Issued D the
War Department, and the receipt given Tor the bohds
nv Mr.. Russell were handed 10 Mr.. Thompson at the
Office Of the President In the Executive Mansloh oy
The Hon. III. NJ Rice United States Senator from MN,
neso,a No earlier iutimation Of the abstraction had
reached Mr.. Thompson. . -
Yonr Committee not designing to examine Mr.. Bal
lev as a witness caused subpoena TO be served upon
Mr.. Rice 10 appear before them He declined TO obey
n The Chairman then addressed him note, explain
inc that he had been Inadvertently summoned and po
Iiielv requested his attendance. To this be replied
that LIE would any question that might De pro-
nounded 10 hun in writing. Seeing that he stood so
pertnaciously on his privilege as Senator 1t was not
thought consistent with the duty OF the COMMITTEE or
dignity Of the House TO press any further inquiries IN
less The House shall 80 order.
Had the original intention Of withholding from ire
Secretary all knowledge Of the fraud until within a
few ts of the +th Of March been carried out the con-
fusion incident TO a change Of administrative olhcers
would have prevented prompt investigation, ana Ge-
priyed Mr.. Thompson OF the means OF Immaculate oe-
inse Mr. Bailey in the Of foethOught pru-
dent 10 avoid detection up his stock account Tor
the current year. showing It's face that all the bonds
were safely in his custody, and had caused s Presen'a
ton 10 the Secad Auditor, Mr.. Fuller. That oficer
refused 20 approve it, for the that one coupon
account designed 10 be check upon it, did not accom-
nanv il. II IS PERHAPS, to this REFUSAL that may III
part be attributed The early disclosure OF the fraud.
II will be observed that willie Mr.. Baileys state
meut ia dated Dec. l. 1860 and embraces the entire
number of bonds, and fixes the month of July ms the
time AT which he entrusted them 10 other parties me
testimony Of Mr. Russell shows that they Were not an
delivered at one time but that three hundred and thlr-
~ three were Transferred TO bin on the 18th OF beee-
her nearly two weeks subsequent 10 the date OF Mr.
Baileys confession. The only satisfactory xpianalon
that can be gwen Of this noticeable discrepancy, Is the
supposon that the statement was actually prepared
the day 1t was gwen 70 MI sd ,ne dh ,ns
yronsfully "Dec. lst TO alay any Suspicion that
might be excited il ii were seen that the date OF lhe
abstraction wa identical with the date OF The last ac-
ceptance which wa issued by the war DeIaT'ih,ehl,
for the purpose NJ your COMMITTEE thihk, Oh making
up a definite amount Of securities.
THE DISPOSITION or THE BONDS.
Az soon as the abstraction of the bonds was made
known to The Secretary Of tie Interior eapPed him
s.lf diigehly TO discover with whom they were
lodged that proceedings might be instituted for their
recovery. Mo-es Kelley, esq, Chief Clerk was DIS
patched 10 SewYork and he there caused wts OF iu-
junction to be served upon few parties IN whose pos
sess)n be bad reason TO believe some OF ne pohdr 10
be Bot ascertaining tits mode Of obtaining the de-
sired information TO be both slow and unsatisfactory
Mr. Thomson advised that your Committee shonld
hold some Of its sessions IN the City OF Newly ork
being desirOus Of exPediting the inyestigeioIs and
.vodinQ the heavy e1uense tina, would be incident 90
the summoniDg Of large number OF witnenr's from
that city. Your Committee concnrred IN the propret
Of this suggestion and having aked ior and obtained
leave 10 III in such places they believed the public
interest required they proceeded Mt considerable per-
soua inconvenience, TO New-foik.
From the testimony there procured, II was apparent
that the bonds had been disposed Of by MI Russell
and his agent and that Mr.. Russell did rut have u In
hi, power 10 restore any Of them. A limited number
of them traced Into the possession oil certain In
dividuhs and corporations, a. follows;
MeehApt. Benevolent AssociAiioB, New.1ort City, 5000
Mex. d 5sslIs Tor account Of C. W Pa4 Co.
Bichmond, Va, Mo-. {. neis', wtnei........' lo""
Mca,L Schenectady N Y. from TO J, State not men
Sander. Hsydsa'1is to state given aels.,
ia. O. King Sons. E,~Yoi City, MOI. J. o King, -,
c,,s pes,. Co n z city L. G. Ci.i wiias. 400
Js sS sI FaSdsi Co Yori cy purchased with
w r Coleman Co NewYork riy Coleman witness 90 ooo
Geo smith f R A. W SimPSsIk eco
r. Garther, Baltimore w. Fisher whne"'''''.'.''' 9so
b. Atkinson Baltimore, do...........s'...... IOoO
Lowdu, Thompson Co., Baltimore mHtn Lewis wit. ..o
eoO
ia 900
few other bonds were ascertained TO have been
purchased by Riggs a. Co.. bankers, Of Washington
City for other parties and by other individuals which
are not included in the above statement.
The appear ance Of Mr.. Russell before the Committee
at an early stage Of our proceedings and before the
examination of any witnesses your Conmittee desig
mated two of their number, the Chairman and the
Hon. Mr., Thomas, TO consult with Robert Ould, esq,
United States Dstct-Atoney for the District Of Co
lumbia in reference the abstraction of the bonds,
and the legal questions connected Herewith. That
officer advised that the testimony OF both Mr. Bailey
and Mr.. Russell should be taken. An important wit
ness, Mr.. Jerome b. Simpson, who would he found in
New-York, il was expected conld not be obtaned he
bad acted in that city the confidential business agent
of Russell Majors Il Waddell, and knew, il was be-
eved, ali the details of their business transactions
n. ~ I'D nf tha hctr actin If tha