Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1861-01-04
TELEGRAPHIC NEWS.
Washington, Dec u.

rotary of War. These acceptances had
been given continually, in accordance with
the usual course Of business, for the trans
Portation Of the supplies OF the army, I'M
der the contract with the Government.
Mir. russell, finding himself unable to
negotiate these aceeptances and being
greatly embarrassed pecuniarily, and as.
certainng from GODDARD Bailey, with whom
he was intimately acquainted, that the lat
ter had control OF over three millions of
the Indian trust funds invested in the
bonds OF different States, arranged with
nm to let HIM have half a million dollars
o. these bonds to be hypothetical in N.
\ and as security for which he gave Bal
ley the acceptances Of the War Depart
ment. which Bailey placed in the safe
where the bonds were kept. Recently
these bonds have greatly deprecated. and
the bankers IN New York, who made ad-
Vances on them, therefore called for addi-
tlonal security. Bailey, in order to save
the bonds, delivered over three hundred
thousand dollars worth more of them
making in all $l,70O,00O.
On the 18th inst. be addressed a letter
to the Secretary of the Interior, frankly
lmpartlng these facts, and requesting an
investigation: This letter he gave to
Senator to deliver to the Secretary on bis
return from North Carolina, which request
was complied with The investigation
yesterday proved the truth of these state
ments.
sutor, Lea & Co., comprise the banking
finn through which the negotiation was
transacted
Nothing, either in the papers or in the
investigation, shows that any parties ex-
cepting those Immediately concerned in this
business as above related, are in the slight
est degree concerned in the transactions.
1t may be stated that the acceptances Of
the Secretary Of War have been given
from time to time, in compliance with a
contract with Russell, Majors & Co., and
until recently that firm have had no diff
Guilty in negotiating them. To day Mr..
Bailey was arrested at the instance of the
Government. and required to give bail in
the sum of $4,000 for his appearance at
the next term Of the Criminal Court.
1t is thought that the Government is
protected, as the acceptances more than
cover the amount Of bonds distracted.
The special committee of the House to
which the investigation of the subject is
referred consists Of Messrs. Morris, of Ill,
Conklin, Of n. Y, Bocock, of Va, Harris,
Of Md, and Case, of Indiana.
Washington, Dee 90,
The Cabinet has just adjourned, after
protracted session of six hours The af-
fairs at Charleston was the subject under
consideration. Secretary Floyd stated to
the President, in writing, that unless Ma
jor Anderson was withdrawn from Fort
Sumpter, he could not remain in the Cab
met.
Secretaries Thomas and Thompson were
understood to entertain the same views
but the events of to-day changed their
minds somewhat.
The President determines, after full de-
liberation, not to withdraw Major Ander-
son, and Mr. Floyd's resignation was there
fore accepted
Among the persons named as Mr..
Fioyd's successor is Benjamin f, Butler,
Of Mass, who has been in confident con-
sultation with the President for several
days.
A serious division exists in the Cabinet,
and break up may at almost anv hour
be anticipated; recent and highly impor-
tant intelligence from the South, received
by the Government, may precipitate the
event.
The Secretary Of the Treasury has inst
received despatch from Charleston, sta
ting That the revenue cutter in the port of
Charleston had been seized by the author
tiles, and that the captain who is native
Of South Carolina has resigned The in
telligence was Immediately communicated
to the Cabinet
The Navy Department, at II o'clock,
received despatch from Lieut.. James P.
Foster, commanding the SLAYER Bonita,
which was carried into Charleston, stating
that his prisoner, the captain of the sla-
yer, had been taken before a State Judge
by writ of babeas corpus that the Judge
removed the prisoner to his custody on
the ground that he had no guards, and
on his way to Bonita with his prisoner, he
had been taken by force from his custo-
dy by mob.
The Presidents Message is an evasion
Of all responsibility, and contrasts Buchan-
ans timid policy with the bold action of
jackson. The Globe charactcrizes the
Message as an appeal TO the North to make
concessions to the South.
Washington, Dec, 31-9P. NJ.
The report that prevailed this P. NJ.
throughout the city that Gen. Scott had
been appointed Secretary Of War ad ante
rim produced thrilling effect, and occa-
stoned much indignation among the secos-
sionists, who are fully aware that Gen.
Scott is in favor of extensive military
preparations. The truth is that P. NJ
General Holt is in temporary charge of
the Department, and tonight was attend
ing to the duties there in company with
the chief clerk.
Ger. Scott has not been either at the
Department or at the Presidents house to-
day
Both Thompson and Thomas were at
the Cabinet meeting to day, though rumor
had declared otherwise.
Many reports prevail. with no truth for
their foundation, which serve only to add |
to the already intense excitement.
Mr.. Bingham's bill to further provide I
4. ~. r