The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-13
Tho Ignorance, Imbcdlity, Negligence, Ger
ruption, DuplleI,y and Deliberate RascaII-
ty Of Floyd Pretty Clearly Madc Out.
GODDARD Bailey Mere Catspaw Of the
Ex-Secretary and His ChumS.
The Government Involved in Losses
and Liabilities Hard Upon Six
Millions Of Dollars.
RECOMMENDATIONS OF THE COMMITTEE,
Sc, Sc, &c.

&C., &C.3 &C.
The select COMMITTEES to whom referred the resou-
of the House. adopted tho Gath day of December
last directing them to inquire into and report the facts
in relation fraudulent abstraction of certain bonds
held by the In trust for the Indian tribes
from tho Department of the Interior and to whom was
also referred the communication Of tho Hon. John B.
Floyd atc Secretary Of War and tho letter Of the Hon.
Robert McCleland, late Secretary Of tho INTERIOR beg
leave respectfully to
That upon the day Of their appointment they repaired
TO the Interior Department. and held an interview with
the Hon Jacob Thompson then Secretary OF said Depart
ment and expressed to him their desre To enter upon
the duty assigned them at as early period AZ would
comport with his convenience and bo consistent with the
public interest Three days thereafter and as soon as
they authorized to employ stenographer, your
committee organized and have hbored ~ bring tneir in
vestigation carly termination with diligence that
has been quckeDed by appreciation Of the grave cha
racer of the subject committed To them and OF tho IN
tcrest felt by the House and by the country in its re-
markable details.
II soon became evident that tho abstraction of
certain bonds from the Interior Department fact easily
nsce taned and indeed ADMITTED by the person VINO o,k
them, was incident Of minor Importance IN c)mpari-
with The transactions preceding and connected with
and your committee therefore considered IT In
cumboLt upon them 70 trace accurately aud as tho
roughly possible, through the nrtuous wmdings OF
vast and complicated ani though
cealeo ram,cations the ana purposes and deeds
Of those who have been the parties 10 daring and unre
cedened fraud upon one Of the the
nent In view Of the magnitude OF the often and the
great loss involved they so regarded themselves fuy
justified in puehng the investigation TO Tho furthst
limit OF the authority ST.. in them. Tho want Of time
the lack OF zeal has prevented them from
obtaining all the information tDcy desired; yceneush
has been ascerianed 10 satisfy in their opn on the ma
teral inquiries with which they were charged by tho
House, they think viii appear from . shccnct &C
count OF the evidence that has been adduced before
them.
BY reference to tho abstract marked a." herewith
transmitted, u wiz be seen that The government stii
holds state bonds and certi iacatos and United StItos
stocks Tor certain Indian tribes, % the nount Of
So 525 1stI SO These bonds, well as Tho $40 alb
slractcd and lnias bond handed To the Hon o. "
Fitch and returned by him to the fhprtncn,, for
assigned ia his correspondcnce with GODDARD
Baty purchased from time u time by authority
OF law, with the money % the indians, ARISING from
treaty stpulaiions Originally they in charge of
the Indian Bureau while that bureau cd with
the Depar tncDt Of War, remained N ts custody
afior It became one IL The bureaus OF tn Interior Dc
pariIon lSs9 fr nat limo 40 10 1851. In that
year the custody Of the securities was transferred 10 the
Secretary Of the Interior The government, having the
bonds It's possession the trustee for the indians,
who wero the actual Of tlcm; and prssumlng
that It's agents have exercised ordinary diligence ana
their custodan the question aries as 70 The
extent Of It's liability for their loss Your commteo
do not however, propose to pursue that inquiry, az
eoysynmopt cove 1' viii not perm,t thcso Who have
committed themselves 70 its protection 70 DO rob
bed by ITS officers or employs without making prompt
ample compensation. Yet tho disregard Of these
Judiciary obgato would seem TO aggravats the turp
tude or the offender whose fconous hand could ride so
sacred trust. Such act furnishss msst melancholy
evidence OF tho decay OF public vituo and VIII remain
blot upon history and indication Of our down
ward career. In this repcc matters but little who
was the iranaessor Tho fact Of the commission OF tho
net, at n moment when thought VIC bad reason 10
boast tf our good faith and integrity w remain fixed
In the public mind, and be remembered as dark Of
fopco when its guilty perpetrators have been long for
gotten
Under previous admnisrstpns tho bofns woro placed
In tho immediate charge OF some clerk, selected for his
integrity and capacity who kept them In q saNe in
the Inoan Office. No stamp or other mark OF dcsig-
nation was placed upon any Of them, with tho excop
tl~ 10 0afnv fhx.
government had tho faithfulness aud honesty
OF tho person entrusted with thor keeping.
SO cless mode c rIsacting the public business and
administering trust so delicate and important astounds
us by tho magnitude OF It's folly. Neither tho Obmms-
scncr Of nd Aars nor the Secretary Of tho nterior
counted the bonds In person. and the only informa
ton that either Of them could have possessed touching
their safety the payment Of the coupons every six
months and such examinations as they occasionally chose
TO order 70 be made by others Fortunately for the go
vcrrmcnt, however, no loss was sustanei during pre-
vious administrations, there the slightest ground
70 believe that the Hon Robert McCeiand Of Michigan,
former Secretary Of the Interior whose supervision o1
the trust, while Il remained in tho Indian office has been
called question: whose letter referred 70 your
committee acted ut any time or In any way unfahful 70
H. On tho contrary, the evidence OF Mr. Henry Beard
entirely oxonerates him from any blame, further than
tho expression already made by tho committee OF thoir
opinion Of the modo in which tho business generally
managed. Your committee viii not pause TO inq ire
which Secretary exercised tho greatest watchunoss and
care, for u is not within their province 70 Institute
sucn an mvestgaon lnoe oesir1us ,, 2, nn-o
Department. St they deem but justro TO adj ,has
they have discovered nothing to involve tho late secfe
tary, The Hon. Jacob Thompson IN the slightest degree
tho fraud nothing 10 Indicate that he had any
compile ty in tho abstraction, or that no had any
knowledge Of 10 until the time OF the disclosure by
GODDARD Bailey soon after he entered upon tho duties OF
his Office, tho commencement OF the present admnls
traton he appointed two additional c.rks Ior
his derar tment one OF whom Mr. Bailey, who was
placed Id charge of the Indian Trust bonds h etter OF
appointment, signed by j. Thompson, secretary, bcars
date July L. 1851 and among of er things says-under
appointment desire particularly tnat you snoud
take charge OF the hold In trust by the bead OF
of
interest thereon become due, and $50 that the
same Is properly paid into the public treasure" bond
was required OF him, which he subsequently executed,
in tho penal OF five thousand dollars with BenAmn
Mo1nloch OF Texas, and VIM Oerries, of Charleston
South Carolina securities. This bond was acknow-
Iedged before 1ioses Kelley j. r. and It's sufhciency
certified by "Phil Barton Key, q. =. Dis Atpy.n h
was then approved by 81 Thompson" Copies of tho ~,
Ing The evidence elbows that Mr. Bailey 60
10 Washington bankrupt In fortune, and a poenics
adventurer, seeking office. He brought with him how
ever, tho highest testimonials OF confidence ana respect
from various distinguished gentlemen In Alabama, where
he lived and In south Carolina where he was born and
talents, with these evidences Of capacity and respec
by We are not surprised that the Secretary Of Into
rior repoeed confidence in him. While he should perhaps,
have exercised moro watchful guardianship tho
stocks and the movements OF his subordnates, cannot
be inferred that he was Intentionally negligent OF hS
duty Any other public functonary might have bcen do
ceivcd in tho same way.
the AfxrRAcryp
All tho stocks including those that were abstrncteds
we're kept In tho room in the Interior Impairment oocu
sole possession The accompanying abstract marked "B
will show the character and respective amounts ~ the
abstractod bonds as well tho states BY which they
issucd, except in this that the whole amount, :.