The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-13

permitted by law to refuse 20 testify to any fact Within
the scope Of our INQUIRIES. Neither ~ II true "that he
required TESTIFY He ies1ded OF his own free
will and was not compelled" as declared by the title
OF the act, 10 discover testimony, was he ere
qured expressed in the body OF the law give his
evidence. Your committee, therefore, while they are
constrained consider the adopted by Mr. Rus
sell ar confession Of his moral guilt, do no. deem
within their province 10 anticipate PREJUDICE question
OF law which may arise Ia leg Al prosecutions.
THE socErTAscEs nsrED ny TIE SECRETARY or
When the iniquitous act perpe.rated by one Of the
subordinate OF the Interior Department 10 the
abstraction OF bonds, was made known, il was dis
the time that acceptances unauthorized
by law and deceptive and fraudulent in their character
had been issued by the Secretary OF War favor Of
Messrs Russell Majors Waddel. AS a portion Of
these psepraby connected with the history OF the
bond embezzement, II - proposed nrst to inquire lno
the circumstances attending their issue.
II is stated by Mr.. Russell that On the day he made ais
last application for securities, Mr.. Bailey agreed fur
uish them the condition that there SHOULD be deposit
ed with him, in their place, the scceptonces Of
Governor Floyd as Secretary OF War. Mr.. Rug
sci, it would appear, bad then on hand seven huu-
dred and thirty Thousand dollars OF accept
seysnty.two thousand OF which were UNCONDITIONAL
and the balance conditional and payable out OF tho
niIps OF Russell, Majors Waddoll Tor 1851 (cop.s Of
the acceptances will be found emo aced in the Testimony
Of the Hon Jacob lbompson) The amount OF the bonds
he received on that and various Occasions was agh.
hundred and seventy eight hundred and seventy hou
sand dollars. lberewas therefore nothing 70 make 9p he
requisite Of securiuesone hundred aad thirty i've
toas md ooars and accordingly ind that there M
acceptance bearing date the 18th, for tina, precise
When il is remembered that that the date =!
the last delivery Of bonds aud Of the reoept therefor
the inerei unavoidable that the acceptance was
issued t. make up an ascerained deciency and that II
Anticipated that Il would - iu'o the pos eson OF
Nr Bailey There other iac.s that should DC
stated 10 This connection Nr. Russell nxes the
probable eqrErgs Of BITS firm 70! the year 1861
Mt from $500 600 to $500 600 while Captain Van Vst
estimated them ssS 900 1850, and General lohnsln
says his testimony for the presea, year they s
be about what they IN 1850, which $500 600,
including payment made IN Washington oy CapIan
a.ller q ltte Than 900. The conditional ac-
ceptarces gwen 10 Nr Bailey amc mt u S79S 600, or
been ned ny Messrs, Russell Majors 4 WaIdeli dur
rg thai year according the estimates Of the depart
nent, based upoa The earnings fnr the previous year
The acceptancss for the sos 00o the only cond
roual iesned and these, together with ibnas TOR
s72 0G0 'ssuel noonlitonay, tnus, be regarded rs
oss as the government VIII doa1ess acknoa ledge the
Obligation 10 replace the bonds belonging 10 the indllo
Trust fund aud there is ht,'s expect thtt
Russell, Majors 4 Waddel viii make retncn
OF what they have receisea: II yoar COMMITTEES
expressing he Dells that there other outstanding
larilts, and that further de hands would be made
upon this any future Congress IN connection with .aese
extraordinary proceedings, they would deem this
caA on for Congratulations 10 the House eut unfort
naely, thtIc trans actions oil similar character, bu.
Of stl greater magnitude, that clfm your attention
IN 1858 lie secretary Of Wae coameuce1 che issue OF
ceprauccs and 81 the same time wrote various bankers
and individuals urging their purchase discount. one OF
his rters aud from Gone Drfosari Chief Clerk Of
the War department. james Soutier Esq President
OF the Bank OF The Reprblc, will be found included IN
the testimony taken IN Ne. York. copes q varions
other letters relating Ia the same subject ootausd from
the War department., accompany tins report Mr. T.
r. James, Of New York city, testified before the
con mtice that Mr. Sontter, u whom reference
has beer aireecy made sad 10 him upon OCCASION
that h. bad draft for SIS o00 and with . letter from
the Secretary o War; stating that be had iesucd, or vas
about issae, acccptances IN favor OF RUSSELL Va
Wadtel' but that 1t no time sho,d he Issue those
cepaucee to exceed one bait Of the amount which he
knew, Of his own kDow'edge, was actually due to the
parties ftr fervices already performed. Mr. souter
beng called upon TO podicc ms communication
rived from letter OF Mr. FLOYD that the War Depart
nent issued ptances q tie extent only OF onehsf
If the amount that would become duo - Russell Majors
Wadde on work in process % exe1uion. Although
examination OF tie letters received ny III. bank
and his own private letters faiiei TO bring %
light such a communi :stion he bad expected
10 ind, ar. sou'ter does not change his
opir on but concues that II derived from the state
Innt OF some rers whose name be cannot now recall
These letters and representations are important, az
showing tho adopted by the Secretary Of War TO
get The papers ne isued into circulation.
MORE risS Sc goo Q, AccslTAScss ISSUED
In relation 10 the &C ep'ances issued uncon-
ditionally by the iate Secretary q War, your
committee deer, it thet duty 70 state
all the facts they have been able discover fully
possible. They in the agg -egA TO III
sum OF Sc 10 ,395 Add thereto tire condtf,nh accept
anccs wh Oh have already been thrown back upon the
government through the agency OF Me- Bailey, aud the
total Is 80 oi7 1896 This estimate Is o,sed npea data
furnished by toe department, appears heretrom tina,
acoepances the amount OF 900 retained the
department for cancellation Mr. Russell however, caas
70 have returned ony $500 COO $3.50 coo He further
that the acccptances which he did return those
which had maturea in his own pocket, and could no;
therefore be negotiated But this assertion is positively
conadcct by the endorsements on the returned sccep
tances and by the tincny OF Mr. IRWIN clerk the
War Department. From The careless aud irresp"ns BILE
ia which business transacted by tat gen
teman nud the late Secretary Of War an from The fact
thut it the habit Of GOV Floyd accep,ances
NJ the department. a. his hone, or nj whatever place
he happened to be, add otoer considerations, il Is maj
fer OF great uncertainty whether not the $50 600
should be deducted from the sum heretofore stated, The
probability il that when the aocepiances returned
T. Gov Floyd by Mr. Russell he accepted others ~ the
same tiue for the sane amount of which there
registry made. deemed safest 10 procecd uplu the
suggestion that the hcccptances made in The place o.
those returned were registered Upon this hypothesis
the $40 600 be deducted from s679 1896 Of
ditiona aocep,ances made and registered the War De-
par ,rnent. This would have Of them far shown
by the Of that department $50 1896 still in cir
culation Add to this amoan, sos 600 OF conditional
accspiances received by Mr. Bailey in lien of the bonds.
the aggregate il SO 1871 sos Here, then combining
the statement tho records Of the War Department
deficit of SO 1877 1906 fall upon the holders OF these
ccptanccs be assumed in way by the government
WAS DONE wIrn TIE AccsrTAScxS
The evidence shows that the acccpances have been sold
10 various parts of the United States wherever hank or
private individual coudbe induced toprchase ,nasmuch
however the amount Of those that have been traced
directly into the nauds Of present holders constitutes
but n small fraction of he still uraccouutea for and
as owners are daily ding additional claims at the War
Department II s deened unnecessary to give detailed
Statement, Of the discovered asceptanccs or 70 make
other mention OF them than to refer 10 the
papers relating thereto presented BY the War
Department, ami to the general evidence.
Is proper however, TO remark in TIT connection, That
while your committee do not deem necessary -
said details the data in the War Department nve IT.,
minimum amount OF outstanding acccptances XII 70
that department at 81, AS 600
ruRrrsH stoyps rEncFnnSGs
Mr.. Richard r. irwin, the faithful and ntclnseat
clerk 10 whom reference has been mnde e,sc-
where this report, Gays IN his evidence There may,
OF course, he other outstanding acccp.aD ;es, Of
whereabouts OF which the department has know.
ledge" There viii also be found embraced in his cvi
dence given upon being Gales before the committee
the 9th inst letter addressed by r. A. Barnes, Isg
Prcsden, OF the ok OF the state Of Missouri, under
date Of January "a 1851 10 the Hon. Joseph H,t Sec
rotary Of War, which i OF interest and will throw light
UPON the conduct OF Governor Foyds proceedings and
in regard 10 the accepiances Mr. Irwin s
further testified TO the receipt OF other letters by the
War Department. since the papers furnished the
mittee by that department r3nsmiit'd of cssac
similar TO Mr. Barnes This branch " re inquiry "
evidently prolific and could be pursued . great cDgtn,
IL ne .cs sty required time would permit.
~ fsrSsTE
To avoid all appearance Of unfairuess, your committee
considers proper 10 give Mr.. Russes estimate OF the
amount OF epances issued set forth ia the follow
Ing cxtfact from his testimony
Question. State as nearly you can, OF
knowledge and recollection the amount OF accoptances
Of Governor Floyd shown BY that ths have
been used 10y YOU. a. have got hut idea about 10
very large, cannot tell how large; believe IL
exceeds 80 COO 600
O. Toes il not exceed 81 600 Coo A. do no. recoI.