The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-07-16
THE INDIAN TRUST FUND
FRAUD.

LeIIeI FROM hOus JdCOD AuOupBOus
MEMPHIS, July 15.-The following sp-
pears In the AUaLdRehe this morning.
OXFORD, Mss, July SD James N,
Williamson, EsQ.-MY DEAR 6R: Your
letter OF yesterday was received by me
this evening. l thank you for the ex.
tract clipped from the Avalanche, headed
"a Large Deficit" The facts In this case
are lew and have been so often paraded
before the public in all the distorted forms
that malIgnity and prejudice could pro-
duce them, that ! reCur TO them with re-
luctance. 1haVe always had faith In the
power Of truth and It's Ultimate triumph
over ialsehood, but alter twelve years,
the Second Auditor takes up the account
and presents the matter 70 the public as
though something new had been discov-
cred. The whole case iS this: The De-
partment Of the Interior Is made the GUS
todian Of the bonds held in trust Tor the
various Indian tribes. The interest on
these bonds Is regularly collected and paid
over TO these trlbes. A clerk In the de-
partment Is charged with their custody,
and II tho coupons are regularly brought
forward for collection, the department
presumes as a matter Of course that the
bonds are in his hands. In this case, dur
Ing my administration OF the department
a Mr.. Bailey, a clerk Of high standing and
unquestioned talent, was charged with
this duty. Early in the year 1861, after
all the January coupons had been brought
forward and regularly collected, and he
had been called TO make out full state
ment OF his accounts for the Auditor,
which In itself was full and satisfactory,
and 1t became known that 1 would In q
few days resign my place in the Cabinet,
owing TO tho contemplated withdrawal oi
Mississippi from the Union, then 1t was
that Mr.. Bailey sent me his confession that
he had without my knowledge or consent
in any way, delivered over TO Messrs,
Russell i Colrage, government contrac-
tors, bonds to the amount Of 1891 600,
and taken In their stead acceptances OF
the Secretary of War for the same amount.
He said he had taken the responsibility OF
doing this TO save the credit of the War
Department, and had not advised me
Of what he had done, because he knew !
would condemn It, and would not allow
him to touch a single bond. As soon as
the confession was received, the keys
OF his cafe were taken from him, and the
contents carefully counted, and the state
OF things showed his confession TO be true
In every particular. The clerk was dis
missed for his inldelity TO his trust, and
Congress, then In session, was informed
by a. Communication from me Of what
had been done, and this concluded with
the request that q committee consisting
exclusively Of political opponents should
be appointed to examine into and report
upon all the facts. The committee was
appointed and q most thorough search
was made into all the circumstances and
facts In the case. The committee were
unanimous in exonorating the Secretary
from all blame whatever in the matter, and
their report was received by Congress
without dissenting voice. This was at
a time when party spirit ran high, but
still at a time when members Of Congress
scorned to endeavor to afflx to the name
Of public servant any stigma uDlustly
and falsely. Alter more than twelve
years, tho Auditor reaches the account,
and after rejecting the acceptances Of the
War Department, in which l think he
acted correctly, he gives this defeat as
something new.
Second, The auditor OF 1861 claims the
honor Of, making this discovery, whom in
truth was the first TO make all the facts
known. For fidelity, efficiency and
promptitude In the administration Of the
interior Department from 1857 10 1861, /
am willing TO be compared with any ad.
of 1t, either before or since
that time. Certain it is that no business
was one or two years behind time. l
have written this 10 you for your own
would not have you igno.
rant ol the fact, but / have 80 often ex.
planned this matter, and know so well
that all honorable men are fully BStished
with the propriety Of my conduct, that !
must leave msllgners and the evil dis
posed TO think and say what they please.
You eau do what you please In saying
anything 10 tho editors. / do not sup
pose they meant to do me any injustice
In publishing the dispatch. II they had
thought o, minute, they would have re-
membered publishing my explanation
addressed 10 the Cincinnati Enquirer,
which they produced as demonstration.
Yours truly, J. THOMPSON.