, 1873-07-23
THE FORT SMELLING SWIMDLE.
Flow Frank Steele & Go. Got $500
Acres for Nothing.
And Charged tho United Stntos
100000 for Taking 1t.
From fbs 81. Paul Dfsudtcb. Juiv IN.

,,,,,, From the 81. Paul Dtspateh, ,j"lv1o.
roa 9 sns s ss e7e San hs a bssaiGs bs soa ut 1 p 5
auction: aa0 Three Thousand acres wore sold for
nc mors; i aa been whispered quietly al over
waa wooly head undor % o tic woodpiie; % that su our
-; TammaRy i1nn'n a5 Rng Ind madGs a. big thing put
mods, aud wlnka Of those in tho ring.::,.
Being always Rnxi0ua to furniHl tho people
with tfo facts in roforonco to auoh matters, lilo
Dispatch has, by ita Washington ngonto' dgont
study Of tho papera on nlo In tho War Depart
mont, boon onablod to lay before It's roadors the
factB In roforonco to this transaction. They ro-
voal ono Of tho most shameful cases OF fraud
cycr practicod on the American people.
HOW THE FRAUD REGAIN. -
Fort Smelling was soloctod BY tho Unised ststos
for military pG4st e da3 fs5 Ga0t 1926 The
buildings there. After while, now many years
| ago. Frank Stoolo, thon quito young man, be-
eamo autlor at tho fort. As tho result proved,
a e. t.
| tnblish forry ncroBs tho mississippi River on
condition that ho was to transport all soldiers
and officers FREQ Of charge. This forry ho still
III o %s sea1 IL e1s he Sropsl goat
tue United States, for they had roacrved the
| montlls notice.
On tho 23d of April, 1856, Steele wrote d
letter proposing to buy tho reservation at $l5
per aoro. Jelforson Davis, then Secretary of
War, refused to sell because tho fort was needed
| for military purposes. Thcn an not WAS ancaked
through Congrosa to authorize tho Secretary OF
| War to soil any forts which had become uHeless.
| Under this act tho fort was sold to Steele in
| 1857. Tho facts concerning this ealo zero shown
| by
A CONGRESSIONAL INVESTIGATION
| which followed. On the 4th OF january, 1858,
! on motion OF lion. Robert Smith, noniber OF
| Congress from Illinois, tho following resolution
WAS adopted:
TesoIrtd, That committee Of i've mombcrs to np-
trcnmatsnces Connected With liz sale 20 Of H. tho Mil military
reservation ut Fort Smelling, tho in which such
sse WE made to whom msds to go
agreed to be- paid adequate not; and whether
the I'D reserve at tho tme Of ahtd aao was longer
hayo power to send for persona and papers, and to
sdminlater oatha to witnesses.
Tho Speaker appointed Alossrs. Burnett, Nor
ris, Morrill,, Faulkner. and Pottit MS tho Select
| Committee.
| WHAT THE INVESTIGATION SHOWED.
On tho 9Th Of April, 1858. tho Com1nittee
mado thair report. minority report WAS made
ginia. by tho report Of the Committee tho fol-
lowing faots appear: Within six wcoks after tho
now Secretary OF War, tho notorious Floyd, On
torod Ills office, the aalo wnB orderod. This or
der was made without any consultation with
Con. Scott, tho Lieutenant General OF the ar1ny,
or with any other army officer Of prominence, to
ascertain whother tho fort wna neodod for mill
tury purpoges. Tho bost proof that it was need
Cd is that tho Government still uses it. nenrly
twenty yoars aftor the sale:
Floyd Ind q "chum in Virginia, named Will
lam King Hoiskof, q corporal in the Virginia
militia to whom lie entrusted tho business Of
reached Ct. Paul, On tho 9Th ho took Maj.
Eastman, already hero, into tho commission with
him to sell tho fort. Tho next day it WAS sold at
priuate sale to franklin Steele for 800, 900.
VALUE OF srEELEs punolIAsE.
Tho Government buildings alone wero worth
$4,000, according to tho Testimony Of Col.
worth SIS, 900, hut the Government had spent
been spont on tho reservation tho. year be-
fore. There wero in tue reservation $500
acros. So that it Ve call tho buildings
worth onc-half .hs estimate. say ego, 1000. II
s sye M a 6us xse Rly dq5 ar se s s ct
oil around the reservation was selling for $50 an
nero! This salo was made in 1857, prior to the
great crisis, and whon land in that region conf
settlers toll ls, woro Ut higher figures than they
AA'0 o'0' WY WY TIE ~ SALE WAS PRIVATE.
neiakol talked with no one else but Steele
about tho sale, except tho tar-kecper Of tic ho-
tol where he stopped. He was afraid that mon
oyod mon would hear Of ii and "uaale combinn-
tions to beat down tho price," Frank Steele ad-
mittad In conyornntion tlat he would have given
| Sllu,uuU II HG Coulu not uNF1 bOG IL 1Or lGH6.
The Hon. Robert Smith, III. G., tostilod that If ho
had had chance to bid hn would hnYo given four
times asmuch aB stcelo boughtitfor. Subsequent
ly to tho ualo Matthew Johnaon testified that tho
Of tho land for *25 ooo, equal to sA75 900 for tho
whole trnot. 6tcclo offered, and his offer wAs
accepted 800, ,000-sSU 900 cash and tho balance
in one and two years tuiUout interest. At TINT
time money was worth in st. Paul per cent per
month.
MORE REASONS FOR sEcREoy
Dnt thoro iH yot more OF tho story. Konneth
Mckenzie and Franklin 6tuole both had orocted
buildings on the rcaorvation. They did not own
them, for being on the property Of the United
Kenzio and stocle woro there simply on suffer
ance. Shortly before tho salo Of tho rcsorva-
ton, Steele bought out McKenzio for $4,000.
stoeles own M property on tho 1eaorye W. w.
worth Of Investments to which steelo
could only obtain title by buying out the
United Stated title. 30 tbRt whom Steele agreed
to pay 300 900 ho was paying e25, ,oo0 for certain
tho ea0,00O wo must deduct $4,000 for tic
yaluo Of tho Government buildings, and 925, ,0o(
for tho yaluo Of tho buildings erected by Mo
to pay for 1890 acros Of. land, or ut the rate o
si.;73 per acre. And this is tho property which
tho lion. Robert Smith, large owner Of land 1t
Minnesota, and well acquainted with tue renor:
Tor $500, 900! This is tho land OF whiol
G,sO0 acres have just been uold nt tho rato o
100000. Tho Commissioners by 10
crot sale sold tho property to stcelc for $40 900
although they vol know that ono yoar bofor,
Eteolo lad made written proposition to Jcffer.
sou Davis, thon Secretary Of War, to buy thu
ploco for SIG aero, or $40, 600 moro than tho,
sell 1t for at private salo to tho same man.
Tho salo to stoclo was so secret that tho vor.
officer in command of the fort knew nothing O
it until tho contract was executed, It WAS ii
secret that ono month afterwards IN intelligen
gontloman living in st. Paul did not know 1t wa
inado. It WAS 80 nccret that a Mr. Reynolds, o
St. Louis, on Aug. 10, 1851, -nearly throo month
i after tho Aalo,-Wroto to tho aooretary OF Wa
to know tcten 1t would bo sold.
people Of Minnesota. Instead Of being made 1t
loyal subdivisions Of forty aoros each, aithor a
, opou auction or by scaled proposals. na IN tn