Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1861-02-20

WIN. n. RUSSELL FeARFulLY INVOLVED.
The select committee to whom was referred
the resolution of the lower House of Congress,
adopted on the oath day of December last, di-
recting them TO inquire into and report the
facts in relation TO the fraudulent abstraction
OF certain bonds, held by the Government in
trust for Indian tribes, from the Interior De-
partment, made report on Monday, Feb. 1lth,
from which make the following extracts,
ana by which il will be seen that while the
Government sustains direct loss of $50 900,
through the rascalty of high officials and
others, il is indirectly involved in aggre-
gate loss of over SIR millions Of dollars
THE INDIAN TRUST BONDS.
By reference to the abstract marked GA, !"
herewith transmitted, it will be seen that the
Government still holds State bonds and GER
ticates, and United States stocks, for certain
Indian tribes, to the amount of 50 ,525, ,2fl 80.
These bonds, as we'll as the SO distracted,
and one Indian bond handed to the Hon. G..
y. Fitch, and not returned by him to the De-
partment, for reasons assigned in his eorres-
pondence with GODDARD Bailey, were purchased
from time to time by authority of law with
the money of the Indians, arising from treaty
stipulations. Originally they were in charge
OF the Indian Bureau. while that bureau was
connected with the Department of War, and
remained in Its custody after it became one
of the Interior Department in lS49, and from
that time up to 1857. In that year the custo-
dy OF the securities transferred to the
Secretary of the Interior. The Government
having the bonds in Is possession, the
trustee for the Indians, who were the actual
owners Of them and presuming that its a.
gents have exercised ordinary diligence and
care as their custodians. the question arises
as to the extent of its liability for their loss.
THE NEGOTIATIONS BETWEEN RUSSELL S BAILEY.
VIM. III. Russell is the head of the house of
Russell, Majors addell, firm widely known
MS contractors with the War Department for
transporting army provisions over the West
ern and Southwestern plains. Mr.. Russell sta
ted to the committee that he had heard in N.
York OF such man as Mr.. Bailey, although he
did not exactly remember his name, who had
been in the city to sell Chiriqui securities and
Florida bonds the latter for Mr.. Yulee, Sena-
tor from that State. When asked from whom
nc received his Information, he gave the answer
usually resnrted to in such cases, viz he could
not remember. The next heard of Mr.. Russell
is, that he is on his way from New Y ork to
Washington, In company with Luke Lea, Esq.
a banker in the latter city. Mr.. Lea was for
mery Commissioner of Indian Affairs and is
partner OF Mr.. Russell in the banking busi-
ness at Leavenworth, Kansas. In convcrsa-
tion that ensued between them, Mr.. Russell
made known to Mr.. Lea his embarrassed cir
cumstances, and asked if he (Mr. Lea) did not
Russeli.) Mr.. Lea answered in the negative.
lie states in his testimony that Mr. Russell
suggested that he had heard of a man iH Wash
Ington, by the name of Bailor or Bartey, who
a relative of Governor Floyd's and an a
gent for the negotiation of the sale of stocks,
and asked his friend if he knew him. Mr..
Lea was again compelled to give negative
reply, but stated that he knew a man there
by the name of Bailey, and Mr.. Russell said
that he supposed that was the man of whom
lie was in search.
1t is very evident, from Mr.. LEAFS examina-
ton, that he was both artful and unwilling
witness. He had to be pressed with great per-
iinacity to induce him to disclose what he
knew, and even then his answers were so in.
terspersed with irrelevant and equivocal re-
marks, designed to relieve him from suspicion
Of completely, that your committee are COM
pelled reluctantly to notice the absence of the
candor and frankness that they might reasona-
oily expect to find in his responses. He was
compelled, however, to say that he informed
Mr.. Russell that Mr. Bailey was in no condi-
ton to assist him; that he had no stocks or
money, and was as poor as anybody. Before
separating, Mr.. Russell seeming still to be-
ileve that aid might be obtained in the quarter
Indicated, requested Mr.. Lea to see Mr.. Bailey
lnregard to the matter. Mr.. Lea complied
with this request, and stated to Mr.. Bailey
mat Mr.. Russell had said, unless assistance
s Ienuered, the acceptanceS or GoV. floyu
would be protested, and he would be compel
,eu 10 retire from the Cabinet. Mr.. Lea is,
"o"eVer, careful TO state in his evidence that
g gave no intimation to Mr.. Bailey that he
tri'snt use the stocks he had in his charge be-
,,Urhslng to the Indian Trust Fund. Mr.. G.. G.
nagner, who is nearly related to Mr.. Bailey,
ana IN whose hands was first placed his con-
'esSlon, states, in his evidence given (your
Ssonmiitee are pleased to say with fun and
ponoraole frankness, that he learned from Mr..
n,ha"ey that Mr.. Lea did mention the stocks in
.u ne conversation between them. And, indeed,
,H 'ls would naturally be inferred, from the fact
h nat Mr. Lea was perfectly familiar with the
W. Tsqess of the department, and knew that
4', bailey had the stocks in charge, and had
,J.g Iatge command Of private means. Mr.. Lea
S,ai uI's that after the delivery of the first in
Ti'nent Va of bonds to Mr.. RUSSELL he knew that
ris; 20; russell and Mr.. Bailey were engaged in
fg the Indian Trust safe that they con-
,Sad 'ed 70 him; that he had conversation with
I'm - -. on the subject, and that he endeavored
tssnade t them from further commissions of
CRIME. He also states that he refrained
informing the Secretary of the Interior