Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1861-01-09
srupENDoUs NATIONAL ROBBERY
SS7O, 900 Indian Trust Bonds abstr acted from
the Interior Department.

South Carolina, appointed to Office from Ala
bama, a young married man OF about thirty
years of age, admitted to be a person of re-
markably fine abilities and attainments-pla-
ced in the hands of friend a letter to be hand
ed to Secretary Thompson. This was during
the latter's recent absence. His manner was
such as that the friend pressed him with inqul-
ries concerning its contents, and learning
| them, hastened to deliver IL to Mr. 1. on the
instant of his return to this city on Saturaay
evening last. 1t proved to be voluntary con-
| fesson frem Bailey that at the instance OF an
| other he had distracted (and loaned to that
person) from the iron safe under his charge,
| a large amount-SS70 ,000-ot the State bonds
held by Mr.. T. as Secretary OF the Interior In
trust for sundry Indian tribes-the proceeds of
| their bonds sold by the Government andso in
vested and held for their benefit in pursuance
| of treaty stipulation.
1t seems that the Secretary had endeavored
| to induce the regular treasurer of his depart
| ment, Mr.. Peter hammond, to become their
custodian, but not being obliged so to do by
law or regulation, he declined the responsible
ity of their charge. The Secretary then en-
trusted them to the keeping of Mr.. Baily, the
Departments law clerk who was under bonds of
ten thousand dollars for the faithful perfor-
nance of other trusts-not that one. The re-
ceipt of this letter by the Secretary, OF course
created great commoton in the department,
| and he, with Bailey, and other clerks, were
there engaged in the consequent investigation
all Saturday night last, until three A. NJ, with
hacks, police officers, &c, plying over the
city. According to Bailey's confession, he
loaned the bonds to the party who had induced
him to commit the abstraction, but was not to
receive a single dollar of the proceeds of the
speculation. He had cut off, and preserved in
the safe, the coupons for the next six months
interest, so that no part of that could be lost
to the Government or Indians.
Bailey had three millions of dollars in such
bonds in his custody, and might as easily have
taken the whole. Our impression is that the
particular bonds can be identified. If so,
while parties who may have innocently pur-
chased portions oil them may lose their money
SO invested, the Government may not ulti-
mately be a loser.
Bailey was appointed to office on, perhaps,
the strongest testimonials as to his alleged
high character that were ever offered in be-
half of any other applicant for Government
clerkship, though, since his appointment, he
has been known to the men about town as a
fast liver, and a regular frequenter of the faro
banks.
This morning Bailey went over to the Jail in
company with his counsel, Mr.. Carlisle, and
gave himself up, and was fully committed by
magistrate.
Mr.. VIM. H. Russell, the supply contractor
of the firm of Russell, Major & Co.. the great
Utah contractors, is the confederate OF Bailey.
He was arrested in New York on the 2fth, ta-
ken to Washington next day, and imprisoned,
| in default Of bail, which was fixed at SoO0 ,OOo
| A THEORY FOR THE THEFT.
| Special Dispatch TO the Philadelphia Press.
Among the rumors with respect to the $780,
| 900 depreciation on the Indian-trust fund is
| one which, if it be not reliable, seems pauSi-
BILE. 1t is, that Secretary Floyd, to aid Rus
sell, Major K Co. in complying with their huge
| contract for the transportation of army sup
| plies from the Missouri river to Utah, accept
| ed their drafts instances absolutely.
| in others conditionally, for sum exceed
| ing $500, 900. Subsequently he allowed Rus
| sell, Major II Co. to draw the whole amount
due them under their contract, with the assur-
| ance on their part that all of his acceptances
| as Secretary of War should be re tired. Drafts
matured, and Russell, Major & Co. were una
BILE to meet them, and others were soon to ma
| ture, which, unless money could be had would
| be protested also. Under these circumstances,
Mr.. Bailey, the clerk in charge of the Indian
trust fund, who, it is said, married a niece of
| Secretary Floyd, was approached by an agent
| of Russell, Major & Co., and told that unless
| the acceptances referred to We're provided for
| Immediately, the Secretary of War would be
| disgraced irredeemably. He was then asked
to lend to Russell, Major < Co., temporarily,
| State bonds of the Indian trust fund TO the
| amount Of eight hundred and setenty thousand
| dollars. Bailey, Influenced by tho conviction
that this breach OF trust was the only means
of saving the honor of the Secretary of War,
and satisfied, also, that Russell, Major & Co.
| would be able to replace the bonds according
to promise, delivered bonds amounting to
S870,000 to Major Russell, the principal of
that firm, who hypothecated them to the Bank
OF the Republic, New York. This is said to
| be Bailey's version of his unfortunate breach
of official trust, which it was impossible to
conceal longer, ,nasmuch as the Indian Bureau
| had applied for the coupons, to collect the
January interest on the bonds distracted.
| Hence, the confession of Bailey to the Secre-
tary of the Interior, on Saturday, of the whole
affair.
Bailey protests that he never received
| cent of the proceeds OF the bonds, and this
would seem to be conclusive, if the statement
which we give current and most authentic,
seemingly, can be relied upon. We cannot
vouch, of course, for its correctness in all
particulars.
1t is proper to say that the Secretary of War
is implicated in nowise with the abstraction of
the missing bonds, nor is it believed he knew
aught of it until Saturday last. His culpabil-
ty, if any attach to him. consists in the ac-
ceptances for Russell, Major & Co. 1t is un-
derstood, however, that such has been the
practice of the War Department. and of other
Departments of the Government, in dealing
with contractors having'heavy M onetary trans
actions with the Government. If it be that
these acceptances of the Secretary of War
were for the year 1860, the United States will
be liable for such of them as were uncondi-
tional. 1t is alleged in we'll informed quar-
ters, however, that the acceptances were to
cover the amount which would be probably
due to Russell, Major < Co. on account of the
transportation of army supplies tor the year
1861. In that event, the loss to the United
States, it is contended, will not exceed $780,
900 those acceptances being regarded as clear
| ly illegal. We do not so think. If the ac-
ceptances of the Secretary bind the Govern
katso