The Mountaineer. [volume] (Great Salt Lake City [Utah]) 1859-1861, 1861-05-04
THE TRUST FUND ROBBERY.
WILLIAM u. RussEIl's pErrysE, !. y.

has published a defense OF his contll,c
8 and IN reply TO the report of the speech,
= tcominittee OF the House Of Representa
tiyes, which be asserts to be full of mi,
/ statements and false deductions, and alto
i lgcther unfair and partial
) He claims to have issued acceptance.
i'm good faith. which were largely nero
| tiated;. but the. firm were heavy loser
!. upon their transportation contracts. ain,
Were unable to meet their engagement
ytOf the subsequent transactions he give
i the following account: st.
When i was thus surrounded by< EN-
barrnssments, and whilst / WIS Ut Wasl,
J ligton using every cxertion il my powe
Z to get the claims of our firm against III,
/ government allowed and paid / was in
ttrodDced 10 GODDARD Bailey. who. as j
have since learned. was d. siis6nrsing OH
D Ger in the service Of the government, Be
fore meeting with him and forming iii.
acquaintance, had learned that he was
an able and influential lawyer, who would
be able to assist me in my business with
the War department. All the circunI:
stances attending the formation Of his
4 acquaintance = his inquiries respecting,
i the acceRtances Of the War department,
and the probable elect upon the Secre.
ltary OF War.of their being dishonored--
ARE set forth at length in my published
statement, made to the select committee
lof the House Of Representatives, and /
need not now repeat them. i. r
IL is sufficient to say that he Informed
that be bad some state stocks at his com.
uand, which / might use Tor purposes Of
thypothecatioh,it could return them il,
ninety days. / told him that | had no
doubt of my ability to return them in
that time. The loan was accordingly
effected, and, proceeded on the evening
OF the same day to New York, with. the
state stocks, and used them IN tile manner
and for purposes alrGady indicated. When
. L obtained them and pledged them for
money, with which TO protect tie nlatur,
ing aeceptances. OF the War department,
was wholly ignorant Of their trne char.
acter.> This statement | made to The
select eommt tee lIa,ier the soIeInnities 81
"a 3tiiiesial oath. was not aware, III thar
time, nor for two or three months there.
after, that there was m Indian trust bond
m existence 1t was only when stocks
declined, and the parties with whom i had
made the hypotbecltion notified me that
they must sell them or have an additional
deposit to make good the margin, that. i
learned their true character. / returned
10 Washington; and sent for Mr.. Bailey,
with the View aof, Informing him that i
would not he able TO return, The state
stocks WHICH ] had borrowed from, him.
IN the time stipulated in our agreement. {
d In the interview which / then had with
hIm, / told him of The demand that lad
beea made upon me by the parties who
held them to increase the deposit, and. OF
the notice of their determination to sell
them unless such additional deposit was
made. He then told me, for the first
time, that they belonged to the Indian
Trnst Fund. Fbis disclosure COMPLETELY
overwhelmed me. 1t? added entanelc.
ment to embarrassment saw instantly
and with intense reality how difficult Ill
would be to eNtricate myself from my un.
fortunate dilemma, | had no means at
my command with which 10 redeem the
bonds, and as they were
likely to be sold, / feared that i might
not be able ever to recover them. The
government owed our firm, as will be
seen from this paper, for losses and
Lrelghts in 1857, exclusive of interest. |
s995, 900. From motives of policy, only
? portion Of this Chin has been presented
or adjustment to the Department and
Congress. knew tlis great difficulty Of
securing payment for SO large an amount,
Ind so presented as TO procure an indorse-i
nent Of the principle involved, and in the
rope, afterwards, Of obtaining the. entire
mount. The department was in posses
ion Of all the facts, and, as far as i was
bile to judge, had taken no exception to
he claim itselfwithoat pretending = to MI
lerstand fully the justice Of each particu-
ar item thereof. The late Secretary off
Var says,in his published statement, that I
10 were entitled 10 more than half
lilllon Of dollars" ...: vi. l.:.3a,.r. II
When discovered that the bonds /
ad borrowed and hypothceated belonged !.
0 the Indian Trust Fund, | would have
rGely given the whole OF this large claim.
nd everything was worth besides, 10
ave been able at that moment to restore
hem. Other aceeptaRees Of the War n
department. were then maturing and hike. y
: to go TO protest. This knew would i,
, impair the credit Of our firm as to Ia
snder the sale Of the bonds certain, aud C
leir recovery impossible. l Ind no time Il
} devote to calm reflection. A week or
~ days might have enabled me to ma, :,
ire some plan by which TO recover aud :,
store them, bat in the meantime they =
ere likely 10 be sold. Then, aud in that
tent, ! knew that the government ae- y
'ptances which had been issued to our !,
IN, under circumstances that placed me :,
lder the highest possible obligation to :
'otect them, must inevitably so to pro- "
st. + .-.- L.-. .-.- z.-. ..-.... "
In the stress VI NY difficulties, ! was in =
condition. aud MS / have said before, ! y
I'd no time toweigh, the responsibility, "
! the ont hand. Of wreckiug our firm, l.
the, war department. and per- "
ttiag ibe hyPotiweaitd bonds TO he sold ii
You'd HIy reach, aSainst that On the I,