Pomeroy weekly telegraph. [volume] (Pomeroy, Meigs County, Ohio) 1860-1866, 1861-04-05
From the n. Y. Post.
The Stolen Bonds.
A Statement from VIM. H. Russell.

From the n. Y. Post.
The Stolen Bonds.
A Statement from VIM. H. Russell.
William H. Russell, Of the army con-
tract firm of Russell, Majors & Waddell,
publishes long defense Of his conduct
in the matter of the stolen Indian Trust
bonds. His statement, filing pamph-
let of sixteen pages, is not only an elab-
crate attempt of self-justiication, but an
indignant remonstrance against the ac.
ton of the Special Investigating Com
mittee appointed by Congress. Mr..
Russell, regarding himself as the victim
Of circumstances, denounces the report
of the committee as unfair and partial, y
covered over with ennis statements and
false Deductions" and as containing
within itself ':its own manifest refuta-
ton
After indulging in these observations,
Russell proceeds to show the nature of
his contract with the Government, and
appeals to officers Of the army to testify
to the fidelity with which he has con
Quoted the work Of transportation for the
troops; dwells upon the losses sustained
by his firm in the affair of the Utah sup
plies; states that his acceptances were
largely negotiated and were falling due
while he had no means to meet the de-
mand-and so comes down to the time
of the theft of the bonds. This part of
his story is so curious that we copy it
entire. 1t will be seen that he claims to
have been ignorant Of the real character
of the bonds in his first egotiations with
the clerk, Bailey, but that, having once
tasted the sweets of plunder, he made a
second essay in the same line, with a full
knowledge of the risk.
HIS INTRODUCTORY TO BAILEY.
When I was thus surrounded by en-
harrassments, and whilst | was at Wash
ington using every exertion in my power
to get the claims Of our firm against the
Government allowed and payed, l was
introduced tosG oddard Bailey, who, as
have since learned, was a disbursing Of
fcer in the service Of the Government
Before meeting with him and forming
his acquaintance, [ had learned that he
was an able and influential lawyer, who
would be able to assist me in my bust
ness with the War Department. All the
circumstances attending the formation
of his acquaintance-his inquiries re-
specting the acceptances of the War De-
partment and the probable effect upon
the Secretary Of War Of their being dis
honored-are set forth at length in my
published statement, made to the Select
Committee of the House of Representa-
tiyes, and | need not now repeat them
He EFFECTS THE LOAN.
1t is sufficient to say that he Informed
me that he had some State stocks at his
command, which [ might use for pur-
poses Of hypothecation, if I could return
them in ninety days. L told him that
had no doubt Of my ability to return
them in that time The loan was ac-
cordingly effected, and I proceeded, on
the evening of the same day, to New
York, with the State stocks, and used
them in the manner and for purposes al
ready indicated. When l obtained them
and pledged them for money, with which
to protect the maturing acceptances OF
the War Department, | was wholly ig-
norant- of their true character.
This statement made to the Selectcom
mittee under the solemnities of a judic-
ial oath. | was not aware, at that time,
nor for two or three months thereafter
that there was an Indian Trust Bond in
existence It was only when stocks de-
c1ined, and the parties with whom / had
made the hypothecation notified me that
they must sell them or have an addi-
tional deposit to make good the margin
thatI learned their true character. |
returned to Washington, and sent for
Mr.. Bailey, with the view of informing
him that | would not be able to return
the State stocks which | had borrowed
from him, in the time stipulated in our
agreement.
HE LEARNS THAT THE BONDS WERE
STOLEN.
In the interview which [ then had
with him, [ told him Of the demand
that had been made upon me by the
parties who held them to increase the
deposit, and of the notice of their deter
to sell them unless such addi-
tional deposit was made He then told
me, for the first time, that they belonged
to the Indian Trust Fund. This dis
closure completely overwhelmed me-
1t added ENHANCEMENT to embarrass-
ment. [ saw instantly, and with intense
reality, how difficult it would be to ex-
tricate myself from my unfortunate di-
lemma. | had no means at my command
with which to redeem the hypothecatcd
bonds, and as they were likely to be
sold, [ feared that l might not be able
ever to recovor them. The Govern
ment owed our firm, as will be seen
from this paper, for losses and freights
in 1857, exclusive Of interest, $955 $50
From motives of policy, only portion
of this claim has been presented for ad-
justment to the Department and Con-
gress. l knew the great difficulty of
securing payment for so large an amount,
and so presented as to procure an en-
dorsement Of the principle involved, and
in tile hope. afterward of obtaining the
entire amount. The Department was
in possession of all the facts, and, as far
as [ was able to judge, had taken no ex-
ception to the claim itself without pre-
to. understand fully the justice
of each particular item thereof. The
late Secretary of War says, in his pub
lished statement, that we were entitled
to ''more than half million dollars"
NO TIME FOR CALM REFLECTION.
When had discovered that the bonds
I had borrowed and hypothecated be-
longed to the Indian Trust Fund, l
would freely given the whole of this
large claim, everything [ was worth be-
sides, to have been able at that moment
to restore them Other accaDtaDcac of