Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1861-01-03
GIGANTIC FRAUD AT WASHINGTON
100000 Bonds Abstraetsd from the
Department of the Interior.

Department of the interior.
ltsppears from The fscts in connection
with The late abstraclisns Of the bonds Of tn.
Indian Trust Fund, that about five months
ago VIM. H. Russell. of the firm ofMsjors
Russell & Waddell, held about one million
dollars Of the official acce ptsnees Of the Sec
Rotary Of War. These acceptonces had been
given ccnditionally, in accordance with the
usual course Of business, for tran 'portation
Of supplies for the army under tbs contract
with the Government. MIR. Russell Roi
finding himself able 10 negotiate the sccept-
anccs, snd being greatly embarrassed pecu.
nisriiy, end sscerisining from GODDARD Bal
ley, with whom he was intimately aoquaint-
ed, that The latter had over So ,000, 900 of
Indian Trust Funds invested in bonds Of
different States, arranged with him to lei
him have about half million Of these bonds
TO be hypotheca,ed in New York, and as
security fer which he gave Bailey the &C.
.ceptancss Of the War Department, which
Bailey placed in The safe where the bonds
were kept. Recently these bonds have
greatly deprecated, and The bankers in
New York who made advances on them
therefore called for additional secxrity.-
Bailey, In order to save the bonds, delivered
over $500, 600 worth of them additional, in
all 1870, 900. On the 18th he addressed
letter 10 the Secretary Of the Interior frank
Iy imDarting these facts, and requesting an
investigation. This letter he gave 10 o
Senator, 10 be delivered 10 tho Secretary on
his return from North Carolina, which re-
quest was complied with. The investiea-
ton yesterday proved the truth of these
statements. Suter, Lea & Co. compose
the Banking firm through which the neeo.
Ha,icn was transacted. Nothing in the pa.
pers nor in The investigation shows iha,
any Of the parties, except those immediate
ly concerned in the business as abovs rela-
ted, are in the slightest manner concerned
IN the transaction. II may be stated that
The acceptances Of the Secretary of War
have been given from time 10 time in GEM
pliance with contract with Russell, Ma
jors & Co., and until recently that firm
has bad no difficulty in negotiating them.
To-day Bailey was arrested at the in
stance Of the Government, and required 10
give bail in the SUN Of So, 1000, for his an.
pearance at the next term Of the Criminal
Court. 1t is though the Government is
protected, as the scceptances more than
cover the amount Of bonds distracted, The
special Committee of The House to which
an investigation is referred, consists
OF Messrs. Morris, OF Illinois, Conklin of
New York, Bocock Of Virginia, Harris of
Maryland, and Chase of Indians.
The extent Of Bailey's operations is IN.
known. He had in charge five millions of
State bonds. Another loss was discovered
IN the Interior Department to-day; $4,000
in cash is reported to be missing. Seere.
tary Thompson promises to restore the less
from his private fortune. Bailey is rspor.
ted to be nephew, or other relative, OIL
Secretary Floyd.
Russell had been arrested in New York
by the United Stsles authorities. The
bonds are Of the States Of North Carolin.
Missouri and Tennessee.
Bailey is relative Of Martin, Of Lecomp.
Ten notssietY. He was sent some time ago
10 California 10 examine the accounts Of
Thomas Hurry charged with being q de.
faniler. .. -
This is hard blow on the admins
tra''on and SecsssiOnIsts. Bailey is ma
five Of South Car0Iins, and signed recently
card that he would not hold Office under
DIR. Lincoln. =,