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

once suspended On the I'D Of December ne again APP
reared, and was reminded of what had been said TO
him ON previous occason, and more fully admonished
that he was not required TO answer any questions
He was also advised that bis examination would be
waived If be desired it, in whole in part and that II
he 30 elected his evidence already given would be ex-
plunged. Tie of Congress approved Jan. "a 1897,
entitled "An Act more efectually TO enforce the at
tendance Of witnesses the summons OF either House
Of Congress, and compel to discover testimony, was
then shown Mr.. Russell, and after reading IL
he requested further time to advice with
his counsel. Before leaving the Committeeman,
however, he stated, in reply to question,
had been explained to him previously to bis appear,
auce before the Comittee. On the 25th, Mr. Russell
presented to the Committee O paper, prepared, be
states, an answer TO the question that had been
previously proposed TO him. and requested that IL
should be placed upon the record he lett II wlthtne
Committee and further questions were proposed.
This instrument, though not properly belonging 10 the
record Of proceedings, transmitted to the House
for It's inspection as one of the accompanying papers
| On examination it will be found TO be, not an answer
to the questions that had been asked as Introductory
10 more important ones, but an elaborate eiort mace
nv Mr. Russell with technical adrotness and legal
acumen, to avail himself of the act Of Congress be-
fore referred TO- and to intepose as shield between
himself and the consequences OF his deeds Nearly an
the material statements therein contained are wholly
incorrect II il not true he alleges, that he
not permitted by law to refuse to testify to any fact
within the scope Of inquiries, neither Il 1t true
that he was required to testify, be testified Of his
own free will and was not compelled as declared
by the title of the act discover testimony, nor
was he "required" as expressed in the body Of the
law 20 give his evidence Your Committee, therefore,
while they are constrained to consider the course adopt
ed by Mr. Russell confession OF bis moral guilt, do
not deem il within their province to anticipate OF
| preiudQe a question Of law which may arise in legal
prosecution. -
The acceptances issued by the Secretary Of War
when the niqutous act perpetsted by one Oh 'ne suo
ordinate officers of the Interior Department in the alb
| stracton Of bonds was made known, il was discov-
cred at the same time that accepahces unauthorized by
law and deceptive aud fraudulent in their chararter
bad been issued by the Secretary OF War IN favor OF
| Messrs, Russell, Majors WaddeU. As portion OF
these are separately connected with the history OF the
bond embezzement il is proposed first to inqe into
| tie circumstances attending their issue.
L. ia stated by Mr.. Russell that the day he made
his las application for securities, Mr. Bailey agreed to
furnish them on the condition that there should be de-
posted with him in their place the aceepances OF Gov
Floyd IA Secretary of War Mr.. Russell II would APP
near had then on hand 49, 600 of acceptances 2O
| Of which were unconditional and the balance con-
dioped and payable out OF the earnings Of Russell,
Majors & Waddell for ls6l. lCcpies Of accePtances
| viii be found embraced in the testimony OF the Hon.
| Jacob Thompson The amount OF the bonds he re-
ceived that and previous occaspns was $4,000 or
| ss5I CO., There was therefore wanting TO make mp
the requisite sum Of securities kl5 OOO ard accord
lngy find that there is an acceptance bearing date Dec
Is for that precise amount. When II Is remembered
TINT that was the date of the ast delivery of bonds and
Of the receipts therefor the inference seems unavolda
bic that the Acceptance was Issued 10 make up an ascer
tanned deficiency, and that 1t was ANTICIPATED II would
90 INTO the possession of Mr.. Bailey. There other
facts that should be stated in this connection Mr.
Russell fixes the probable earnings Of hi firm for the
wear 1861 al from $50 COO to $685. 600, while Captain
| Van Vliet estimated them at $issOO0 for 1850 and
General johnson says in his testimony that for the
present year. they will be about what they were in
! is6O which was $4,000 including payment made
! in Washington by Capt. Miller, Of little more than
| 500 600 The conditional acceptances given 10 Mr.
bailey amount TO f79s 600, $2is0O0 more than the
msninum sum that could have been earned by Messrs
Russell Majors & Waddell during that year, according
| 10 the estimates Of the Department based upon the
earning. Of the previous The acceptances Tor the
| s7qs 90 were the only conditional ones issued and
these together with thoe for $72 OOO Issued uneonst
tutionally be regarded loss az the Govern.
| ment will doubtless acknowledge the obligation to
place tho bonds beon cling the Indian Trust Fund,
and there is little to expect that Russell Majors
| {. Waddell will make return for what they have
/ secured.
II yonr Committee could rest here, and could feel
justified in expressing the belief that there are no other
0ut.tanding labililies and that further demands
| would be made upon this any future Congress III
Connection with these extraordinary proceedings, they
would deem n occasion for congratulations 70 the
House; but unfortunately there are transactions Of
siur character, but Of still greater magnitude, that
! claim your attention.
In las the Secretary Of War commenced the Issue
Of acceptance and at the time wrote TO various
hanke aud indi idual urging them TO purchase or dis
count One of bis letter.. aud one from Col Drinkard,
! Chief Clerk Of the War Department, to james j.
Soutter esq President Of the Bank Of the Republic,
| will be found included in the testimony sken in New
York Copies Of various other letters relating to the
! came subject obtained from the War Department,
/ company this report. Mr. +. L. james OF New.fork
Civ testified before the Committee that Mr. SOutter
10 whom reference has been already made sand 20 him
mon one occasion that be bad draft for $4,000 and
with IL letter from the Secretary Of War, stating that
be had i.sued, about 10 issue, acceptances III
| favor Of RUSSELL Majors 4 Waddel, but that at no
time shonld he ,sue thoae ucceptances 10 exceed
| half the amount which he knew, Of bis own knowl'
edge was actually due 10 the parties for services
already performed. Mr.. soutter, on being called upon
20 produce this communication, says that he Lad an
impression and he supposed II was derived from letter
| of M Floyds that the War Department issued ac-
ceptances 70 the extent only Of onehaf Of the amount
that would become due to Russell, Majors & Waddell
| work in process OF execution. Ahhough an exam
nation Of the letters received by the bank and his
private letters failed to bring 10 light such communi'
cation o. be bad expected find, Mr. Soutter does not
change his opinion, but concludes that was derived
from the statements OF some persons whose names ne
cannot now recall These letters and representations
are important in showing the means adopted by the
Secretary of War TO get the paper he issued INTO crc-
| aiion.
In relation TO the acceptances sued Internationally
by the late Secretary Of War; your Committee deem II
their duty to all the facts they have been able to
discover as fully as possible. They amount in the ag
pregate TO the enormous Of g. 1885. Add there
TO the conditional aeceances which have already been
thrown back upon the through the agency
of Mr. Bailey ard the sum total IL $6,NI ,395 This
estimate is based upon data furnished by the War De-
partment. II appears therefom, that accepances to
the amount of $40 600 were returned 10 The Depart
| ment for cancellation. Mr. RUSSELL however, claims
TO have returned only 1900 600 500 0OO He further
states that the acceptances which he did return
those which had matured in his own pocket and could
not therefore be negotiated But this assertion posi-
lively contradicted by the Endorsements the returned
acceptances and by the testimony Of Mr. Irwin clerk
in, fba Warn Tine