, 1873-08-01
THE FORT SMELLING MATTER.
Secretary Belknap's Version Of tho Sale Of
tho Reservation.
Abstract Of tho Report Of the Commits
sion Appointed in 1870.
How tie Valuation Of the Property Wes
Made, and How Stoeles Claims
Against tho Government
Were Adjusted.
sptc;ai Dispatch tc The Chicago Tribune.


WASHINGTON, July 81.-Scorotary Dolknnp re-
turned this morning. Your correspondent callod
OH him for tho purpose OF getting tho Wat
Department version of tho sale Of tho Fori
Smelling Reservation. Tho Secretary exprosHed
groat surprise at tho statements published in
certain Minnesota papers with regard to this
transaction. Ho declared TINT whatoyor might
DO Haid about outaido parties, ho aud tho mem.
bors Of the Commission who mado the report
on tho salo of tho reservation were innocont
OF all charges OF fraud or corruption,
or attempts to defraud tic Government.
In October 1870, tho Secretary issued an
order creating q Commission to examine into
tile matter. In his report to tho President for
that year, tho Secretary says "Tho net eotting
npart portion Of tho Fort Smelling military
reservation for II permanent military post, and
tho settlement OF all claims in relation thereto,
has boen carried out by haying the location and
tho facts concerning tho claims roforrcd
to and examined by board of otl}cors,
who made report recommending q settlo~
ment, which settlement was concurred in
by myself and accepted by tho caimanta."
Tho report to which tho Secretary rofors is
dated Nov. 10, 1870. It statoa that the officers
proceeded to St. Paul, where they mot Mr.
Franklin steolo and Gen. Sanborr, his attorney;
that Mr. Btoelc and bis partners paid 5D0, 900 for
the property in question, 800, QUO Of Which WAS
in cash, with ample security for the remainder;
that, iu consequence Of d request made to tho
Secretary Of War by select committee Of
tho HouBo Of Representatives that ho
should suspend action in the mattor until
tue Government authorltios had failed to com.
ply with tho requirements Of the contract in
making conveyance OF the property to the pur-
chaHer after ho had fulfilled all tho conditions
required on Ills part; that after ho had beonputip
poasossion Of the promises by the proper United
btatoB anthortioB, and hnd incurred considerable
expense in making surveys OF town-lots, and ip
to individuals with u guarantee Of tito, the res-
orvation WIS again taken posHasBion OF by
thc military authoritios, and had heen
hold by thom ever since, and TINT he
engagements md subjected to hoayy damagen
and losses. Upon thiB Steele declined to moot
lis deferred payments, whcrenpon tho Secretary
Of Var caused proceedings to be instituted
Attorney General WAS asked for an opinion on
partmont Inns the power given it by Con1gross ia
sell the land in question. Having sold, it your
c1copt to enforce tho rights and perform tho OBJ
legations which the agreement cloatca." Thle
contract entities tho purchaser to deed as soon
us he.pays one-tlird of the price mud gives Batis
faotory security for tho romainler.
With regard to tho price Of tho land, tho re-
port says: "The Board mado diligont inquiries of
those persons whom they considered most roli-
able, disntereeatcd. and the best judges in 1e-
gard to the Valno Of tho land at the present time,
but found 1t difficult to arrive at 4 satisfactory
conclusion, Us there woro wiao discrepancies Of
opinion upon tho subject, homo estimating It as
low as Sl0, and othors placing It ns high as 31o0
per aero. From information which was doomed
tho most ro1iablo, and from the prices at which
adjacent, and similarly situated lands have
recently boen sold, tile Board are induced to bo.
lieye that tho ontiro reservation might ut the
present timo be sold for farming purposes at IN
average prico of about go por aero. That por-
tiou Of tho tract adjacent to Minnehaha Falla
steolo admitted Tint the forty-acro lot
embracing tho falls was worth 100000,
but tie swamp and sandy lands
Toud ,n d..IDoo be r; Torth considerably lsas than
the Board arc al follows: That just and eqni-
table settlement Of the claims Of Mr.. Steele and
bis associates, al required by tho tcrtns Of tho
Sa b tho hooi spss o aHs KY s
| fort aud buildings thoroto pertaining, with new
reservation Of ,62l 20-100 acros, having the fc'
lowing boundaries, VIZ: beginning .lRiarter tf Of
o oi Of sceo ;ns
north of range IS, wes.. ,,a,in NJ ia nf tho p min
nhannei n r." n9innosota River, thence west to
tia aousG - Mwost corner Of tho northwest quarter
Of osction 50, tow, and range aforesaid thonoo
I north to tho northwest corner Of Section ~,
town and range aforesaid thonee east to the
| middle OF tho main channel Of tue mississippi
River; thonco along tho NUN channel Of tio
Miaaissippi River and tho confluence Of the
ssssRi a1d Minnesota nvofs 81 ta at M;n tne
nesota River to tho place Of beginning, contain
ing 1.52o 20-100 acros Us an equivalent, for which
tho Commission recommends that tho claimants
allowed rs follows yiz For tho ~ 2e1o Ivy
for the fort and buildings, =, sl292o io1
tho uso aud occupation Of tho promises.
being g. Per cent on $50, ,9oo, the rs, amount nj
retention by tho United statos, viz: nine yeara
aud aoven months, from April 20. 1861, to Nov
90, 1870 81, $50; total s6e, 200; the Government
deciding to tho claimants their remainder OF tha
ants relinqnishing to tho United States al claims
upon tho now reduced renervo Of $40 2o-loq
acres. This adjustmcnt of tho question would
balance the account and aottlo I'LL clallnR upon
Should any further explanation DO necessary
to full understanding Of the considerations
which influenced the action Of the Board in ar'
g. t WIS - sod at tme
whon land speculation WAS rife in Minnesota,
and tue supposed eligibility OF tho position + +
q town site, moro than its value tor agricultural
in tho price they paid for it. Tho rap!tl
IMPAIRED, If not wholly annihilatod, the pros-
tllat now it possesses but little value uHido from
farming PURPOSES. Tho buildings, valued Ut
$4,000 by Commissioners Iaskill and Eastman,
thirteen years ago, hayo boon koPt in ropair BY
patlon Of tho rosorye by tho troops. The Board
aro therefore Of opinion thas tho amount Btatca,
s12o20 IL fair estimate, Us the buildings Would
have depreciated fu!lY the amount Of difference;
Aa the doyornmont haa deprived the claimants OF
tho control Of tho property, equity Heems to ro~
ouire that interest should not bo charged thonl
for the period Government returned possession.
| IIence no interest has boon charged on tho re-
| ana f1ln Glnint.