The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-25


msneed Under Buchanan and
Floyd, Contaminated Under
Grant and Bsllnar
The st. Paul Despatch OF the 10th devotes two ana
half columns to an exposure Of what IL calls
the Fort Smelling swindlc. WI ich eliminated last
month in the sale of part Of the reservation in
Minnesota for 100000. The story La summarized
thus brieny:-
THE ORIGINAL FORT SMELLING RESERVATION
consisted OF 1890 acres. In June, 1851, Franklin
Steele, who was then running the Fort Smelling
so w OF a % s9he
whole Of this reserved tract for $4,000. Thirty
thousand dollars was 10 be paid III cash and the
terest No title could by law be gwen to steele
until the full amount was paid. Pending the pay
who had some acquaintance with the value Of the
reservation, moved In the House that q committee
be appointed to investigate tho sa e, as he believed
greatly below the true value OF the land.
The committee was appointed and after
thorough investigation reported In substance that
A CLEAR CASE or swNDLINa.
1t was found that one year previous Steele had
made an offer to Jefferson Davis then Secretary OF
War OF $lle 600 for the tract, $4,000 more than
he finally agreed to pay, which Offer mad been re-
buildings, was estimated BY competent judges at
from $500 600 to $4,000 Steele and his partners
had offered to sell one rwsntysevenh Of the land
OF se7s,OoO Tor the whole. The government
buildings on the reservation were WORTH at
tngs there were others erected by Steele,
or purchased by him from private parties.
long to Steele, but to the government. These were
worth some $4,000 more SO that tae value OF the
whole property was s5CO,ooo Ct very least and
$7oo, COO
the price which steele had agreed to pay for this
cash had been duly trans erred OF the balance
not single cent has ever been paid. but ON the
contrary, the government has refunded the original
$50, 900 and more, too.
THE ACTION OF CONGRESS-.
On June 4, 1858, the House reached vote on the
resolutions rs amended, and the following was
adopted
Resolved That the management Of the sale ~ the
@ y the Of war
q Its Of SSsS ~ the Of that
he soid have Sdsn ii rsrmtsad
ssSlysd he terms Of sale adopted by tho agents
bs law rs 70 the
raj, sale eat at q !r TAR price ,,,
mi appoinsa under Tee authority Of " resolution
Syy General The nncd saia Sa may Mi ao as
ss{ ss sao &c
de- Tie public interests require. ''''
STEELE PUT III POSSESSION.
What were tho results? In the face or these
ing the fraud OF the whole transaction, the inia-
nous Floyd, on the eth OF July, 1854 little more
than month alter Congress had repudlated and
denounced the sae-deliberately placed Steele in
possession OF the fort. He had paid but $4,000 Of
the $4,000; the law provided that no title should
be given until the consideration money had been
PAID but, in the lace OF this law, In the face the
Congressional exposure, still owing $4,000 on
fha fort tn
Stee,e Is addressed to Captain A. W. Reynolds, A.
Q. NJ, Fort smell ng, anu Is signed by I. S. Jessup
or War; and bears date Of July 0, 1858. The
transfer was made on the theory that the govern
poses and yet to-day nearly twenty years after Tus
the sale, the government IS still using it for mill
tary purposes.
sHERMAN's IDEA OF TERMS
TO anticipate the run OF the narrative bit, the
matter was referred to General Sherman. On May
70 1885, he gave his opinion that .'Mr Steele is not
anxious TO 1ulfl the terms OF his agreement" The
General adds
A fair compromise should be made with him (steelc)
hn HIM ws
all moneys received by him e has had Tie Of the
other rents and proais and should MAKE declarative
him.
II this plan had been followed Steele, instead OF
getting $500 acres and his $4,000 back, would
the receipts from the Terry during the war were
enormous.
WORKING WELL FOR STEELE.
The Despatch charges that to increase his profits
Steele, when the war broke out, succeeded in
having Fort Smelling made the rendezvous for
Minnesota troops. 1t says
There was abundance of vacant land around st.
Paul. camps c0uld have been readily formed and
cheap buildings erected, but the designation was
made to Fort Smelling. Adjutant General John b.
Sanborn, in his report OF January 1862 lex. Doc.
Mimi, 1861, p S2) says:-
made efforts to secure the old post of Fort
same With The understanding and agreement with the
party posses lion tina, tie State should have the Use Of
II for military purposes without expense.
General Sanborn issued his first order April q.
1851 and said :-"Captans will report to the Adju,
tant General at Fort Snelng.0
The fort was now used as a rendezvous but by
the state authorities, to whom 1t had been tend
cred nd free Of expense. something more
THE UNITED STATES RopxD IN.
Finally, about January, 1862 an order was Oh.
tanned from the War Department at Washington
designating Fort Smelling as the recruiting rendez-
vous of the state militia and volunteers. The trap
was sprung; the thing was fixed. Frank steele
Fort Smelling The travel to and from the fort was
enormous. Strings hall mile long OF vehicles had
p his n to s was
The next necessity was that the War Depart
ment should look favorably upon Steeles game
AS long as secretary Stanton held that place his
clear perceptions and unninching integrity pre-
vented action satisfactory to the grabbers. But
they were patient. They bided their time. They
waited until long after the war closed. They
chiefly
RELIED UPON ALEXANDER RAMSEY.
They could help him with democratic votes in the
Legislature and with sham democratic papers, and
Ramsey could help them by advising, as he did,
the secretary OF War to settle the diiculty upon
an equitable basis" The conspiracy triumphed at
last. Frank Steele drew up tic following
The United States to = r Steele tee s' Dr..
January "a, 1863
To use and occupation of Fort Smelling reservation
Tor insitary purposes from April "a, 1851. to JAM
usry ~ i5bS-Sl months al 5000 per month 4l62 900
CR--5y balance OF purchase money unpaid GOv0
THE GRAB FOBBED.
Thc war Department, under General Belxnap
allowed this bill for 'Tent,r 1t took back 1000
acres immediately around the fort; 1t paid back the
$4,000 received from Steele; and now, within few
days BACK, Steele has sold one-naf the property
Tor 500 000l The other half Is divided by the con-
splrators, being worth another 100000.
This fraud has robbed the United states OF landed
property worth 100000. for which they received