The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-09
JACOB THOMPSON am TIE MDIas TRUST
FUNDS.

friend has called ms attention TO an article II
your issue Of Saturday. October "a, 1868, heades
sIagalized Swindles In Wasnington-A Counterpart
81 the New York Quarantine Swinde IN washing
Secretaries Floyd and Thompson Ontdone-De
1alcation of Indian Trust Funds Legalized." In thu
body Of this communication, which purports I,
have been written at Washington, appears this sen
tence:- .g
Ever since celebrated Indian Trust Fund defAca.ion
members OF President Bnehanan Cabinet there bee
about for schemes % accomplish legally what done
% get hold Of those tempting trust funds
The statements Of fact in this extract so far a
president Buchanan's Secretarles' are concerned
are all false and slanderous. The insinuations
inuendoes and implications are all equal
false and slanderous. But in giving II pub
hcity by inserting this communication in you
paper cannot suppose you acted with malic,
aforethought because as Secretary Floyd is deac
and am an exile, cannot see the ground OIL
possible motive which would prompt the EFFORT TO
stab the character or TO fix stigma upon the repu,
faton either OF the unfortunate dead or the still
more unfortunate exile. But as the columns OF your
paper have been used to circulate the fasehood |
request you land i hope as a simple act OF Justice
you VIII grant my requeSt) to allow me tne use oi
the same TO circulate the truth 10 ~ the duty OF the
editor 10 seek for the truth and the law protects
him In asserting IL earlessy, and in this case feel
tAe less inclined 10 complain Of you, as asseruons
the oor or the House OF Representatives by unscru
pu0us and unprlncipled members OF Congress, and
ihey have been allowed 70 pass nncontiaaicted.
pass current for the truth and thus serious injus
,1ee may be done to the reputation Of an honest man.
Is The transaction from which these damaging
charges against President Buchanan's Secretaries
arise is tis:In the year 1880 one GODDARD Bailey was
. disbursing clerk in the Interior Department. and
thus became the custodian of the Indian Trust Fund
u consisted OF bonds Of the United States and OF
ers OF the States and amounted to a96 24l He had
INF no
and for more than three years discharged his trust
with unimpeachable integrity and great acceptable
mer and fan OF 1860 without any authority from the
secretary OF the Interior and without the knowledge
OF . single person connected with the government,
asnount OF $4,000 and delivered them into the
hands OF one William Fl. Russell, taking his re-
sell as collateral security for the return OF the
bonds, drafts drawn by Messrs Russell. Majors h
and S the On e
These accepted drafts also amounted to $4,000.
This Ne the whole case.
eve OF resgning my place in the Cabinet and on the
22d OF that month received from him the following
letter.
WASHINGTON, Dec. 1, 1880
= aS II qsss yn Il qs mot e
in saSs custody those IN a as
S s.s '' SSSSp0s ss
with the preceding avowal he following
maze Ss
. s s s
1ory given me That they would be
That sss m % to s ps
.S me- p. with s s .s
snaesh and that had at any time the least Idea Of
any eas he
advised me pal. with the bond, or evsT knew
sssir surrender make this :tsemsn, now not because
sRSssS y
=: gIsni:s: Very 'sspse'ia'ys your Yss$$sSs
" Hon JACOB THOMPSON, Secretary q Interior
As to the extent ofthe missing bonds this statement
was found upon exsmipssion to be correct and re-
But hs did 'f not change the crnns,y q Ms act
sa ns I o Sspi q
sale and Of his ROOM He was dismissed from once
Che government. on the Monday morning after the ne
confession OF Saturday night Addressed commu-
'nication to the Hon. Mr.. Sherman, d OHIO, then
Chairman Of the Committee OF Ways and Means.
stating what had taken place in the department. and
requested him to move IN the House for q committee
Ties and expose them to public reprobaiion. Prl-
Vately requested him to urge upon the speaker 10
make up the committee entirely Of persons opposed
possibly be construed to proceed from party bias
favorable to the persons Implicated. The committee
and after full and laborious investigation made
unanimous report at q time when the feeling was
and after Hhad retired from ONCE and returned to
Mississippi. quote from that report:-"Ihey your
committee) deem it put Justice TO add that
secretary Mr.. Jacob Thompson IN the slightest
degree In the fraud and nothing 70 indicate that ne
had any completely in the abstraction or that ne had
any knowledge OF 1t until the time Of the disclosure
by GODDARD Bailey" speaking OF Bailey's appoint
win nm the highest testimonials Of confidence and
respect from various distinguished men In Alabama,
where he lived and in South Carolina, where he was
born and had previously resided. Being man OF
acknowledged talents, with these evidences Of capa-
city and respectability are not surprised that
she Secretary Of the Interior reposed confidence In
In speaking OF "the disposition OF the bonds" the
committee say:"As soon az the abstraction OF the
bonds was made known 10 the Secretary OF the Int
rior he applied himself diligently 10 discover with
whom they were lodged, that proceedings might be
Instituted for their recovery
would make further quotations from this report
OF q committee composed OF honorable men, but po-
ltical opponents, but wish not 70 respass further
such a verdict DO you not feel tnat u - no,
simply improper and false to use the eplthe, o.
thai Il il really outrageous, and should be frowned
upon by every honest mani What do you think OF q
member OF Congress skuking behind his privilege oil
freedom OF speech without personal responsibility,
VINO would spitefully call me corrupt defautlng
Secretary" after such finding OF TINS committee.
such q man with unintgated contempt. II q bank
president should have clerk In whom be had long
placed confidence to take and carry away sum Of
money left In his custody, would you allow All honest
mans good name 10 be furnished by calling MIN .
defaultlng bank PRESIDENT
Asto Governor Floyd. reel ought IN tn's conhec
ton to say q word His accepting the drafts o
Aessrs. RUSSELL Majors n Waddell, and allowing
them TO be thrown upon the market, was unques
tionably grave administrative error. whatever MAJ
have been his motives. Brt the committee fahed u
md after the most diligent search IN this direction
any evidence thai he had anytnng whatever TO d.
with Bailey's transaction II "a true Bailey said NJ
committed this breach OF trust IN order 10 serve
Governor Floyd aud TO save ms acceptances IRON
roinr 20 protest But II IL clear that Governor
Floyd did not know his purpose aud did not appre
Cafe the Intended Kindness when he did know II. II
A moreover true that his accepances furnished vii
ham l.. Russell with the means oil working upon the
feelings OF Bailey, who was Governor Floyd;
relation and OF seducng him into criminal betraya
OF trust. But Secretary Foyd's act had no con
nection with Baieys act, and no more caused j
c1nan the teachings or Christianity have caused al
the crime and bloodsied which have been per
NARRATED In i,s GnYernnI ElnYl In no naf