The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-07-31
A Matter-Of-Fact History About the
Frauds at the Red Cloud Agency.
THE RINGS ORGANIZATION.
What Delano and Smith Have
Endeavored to Show.
A FEW FIGURES AND SOME HARD FACTS.

TO prove 70 the pubic that the Secretary OF tDe
nterior aud Commissioner Smith cannot be held
responsible for frauds at the Red Cloud Agency
because the agent was nominated by the Episco-
pal Church, and that, therefore. all the Official
ACTS OF the agent, fraudulent and otherwise arc
chargeable 10 that Church. This might have some
appearance OF FEASIBILITY II the Church had the
slightest control over the agent after appoint
ment, or If Messrs. Delano ana smith could show
that they had not aided and Allotted him ia the
most important feature OF his irauds-nam ely, In
procuring payment on his fraudulent vouchers.
Or IL they could show that his was the only case
IN which the Treasury was swindled with the.r
and there might possibly be some doubts which
could be construed III their favor. But this is not
the case. And II is singular fact. capable OF the
cIearcSt demonstration, that the Indian Ring
vouchers were always approved and paid by the
Interior Department in face Of the most convinc-
ing evidences Of fraud.
THE INDIAN RING
Is composed OF such men az ID. W. Clinton
Wheeler, G. M. Dodge j. W. Boser, Il. T. Bald
win, and the official representatives. the In
terror Department. A. II. Wilder Is q new graft
and came into power with Il. p. Smith, but al
though his name and Dodge's are the only ones OF
the Ring which appeared on contracts, all the
members named had interests, while Bosler and
BALDWIN actually filed all the beef and hour con-
tracts for the Sioux agencies. Mr. Delano knew
Boser's character as contractor for he
officially and personally Wen informed that
point by the report OF the Committee on Appro-
prlatons REPORT No. 30, Fortyarst Congress third
SESSION. and by Mr.. William Welsh. OF Iha-
delphia. He was subsequently Informed by Messrs
Avord and Kemble, special commissioners APP
pointed by himself, and WHO reported 10 MIN in
person. In his office At Washington, that frauds
In supplies were largely practlsed at Whet-
stone Agency, and that they had no donDt
that the quantity OF beef receipted for was
largely In excess OF the amount re-
ceved, ana they recommended officially
special investigation OF the AFFAIRS or that
agency. covering the whole term OF the then
agent and suspension OF his accounts ana out
standing vouchers certified by him until such In
vestigatlon could be had These Commissioners
subsequently furnished ample data Tor an investi-
CATION to the Indian Bureau. But q. NJ. Dodge
was then the contractor for beer and hour, and
the idea OF suspending any accounts Of his was
not to be thought Of
on the 9th OF September, 1879, the Board OF H.
dian Comms sioners rejected the beef accounts OF
q. NJ. Dodge because OF fraud IN delivery at Whet-
stone Agency, the Board having derived Its knowl-
edge OF the fraud from tae report OF Commission
ers Kemble and Alvord. They subsequently re-
three being $45.9 2O IA Mir. Delano himself not
only failed TO project the government by with
holding payment OF these accounts until thor
ough inv stig alton was had. as requested by the
Board but wrote TO Hon. Nathan Bishop TO ask
him to q conference In Washington ior the pur-
pose OF arranging for removal OF the rejection by
the Executive Committee OF the Board, OF
which MI. Bishop was then acting chair
mau. Failing in tins, the action Of the Board was
set aside and the accounts paid. The payment
was finally ordered in legal opinion delivered by
w. Ii. Smith, Assistant Attorney General, Mr..
Delano's faithful follower from The Internal
Revenue Bureau, IN which he gives a reason
for payment, "In this critical financial PERIOD
when business men certainly need their money,
do not taink II rignt to refuse payment
simply because wrong has probably been done
At some otner agency" Thus Mr. Smith and the
department. while admitting the fraud paid the
About the same time
G.. NJ. DODGE PRESENTED A CLAIM
Tor cattle said to have been taken by Indians.
amounting to $5,O54 81. BY law the department.
was prohibited from paying this account, all such
claims being alassed as "depredation caims,n
which could not be allowed until submitted TO
Congress and specially appropriated for. Yet the
Indian ONCE approved and ordered is
payment from the appropriation for sub
sisiing the Sioux. Inc Board or Indian Commits
sioners first rejected 1T because OF no proof
and the then acting secretary, Mr.. Cowan, re-
turned 1t again Tor reconsideration by the Board.
But Mr.. Bishop was firm, ana, calling attention
to the law. refused to approve 1t. The account
was subsequently submitted to Congress with the
remark mo proof" set opposite TO 1t, ana was
finally Withdrawn. During the summer OF 1873
the attention or the Board was called to the i'm
mense quantities OF beef for which the agents a
the RED Cloud and Whetstone Indian agencies
were giving vouchers and the uniformly large
average OF weights allowed A. IL. Wilder was
the contractor nomlnally, but ]. w. Bosler filed
the contract; although it was expressly stipu-
lated in the contract that mo contract or part
thereof Will be permitted 10 be assigned or flied
by other parties Without the written consent Of
the Secretary OF the Interior" The Secretary OF
the Interior was informed by the Board OF the
assignment to Bssler. but Ne declined TO inter
fere, aud, In fact said that probably Bosler
could nll 1t as well as anybody or words to that
effect.
During the month OF October 1873, voucher
for the amount OF $so,6S5 50 was presented to
the Board for approval. 1t was payable 10 A. III.
Wilder Tor beef said to have been delivered at Red
Cloud and Milestone agencies. The Board OF In-
dian Commissioners approved the immediate pay
ment OF $4,000 49, that being the amount justly due
and allowable at the time, and recommended the
payment Of the balance '1n instalments, October
10, November l, Is and co. providing that the last
instalment should not be paid until the agent
showed that none or the cattle mad been lost by
death, stampede, theft or otherwise" Their rea-
SON Tor this action was:-That the agent had
charged the government with the receipt and
care OF more than twice as much beef as ne was
authorized by contract 10 receive; and because
the amount received should have furnished beef
TO the end OF November; and they assumed that
inasmucn as the government mad taken
the expense or herdlng or the con
tractors hands. even Illegally as was
the case, there was no reason why the whole
amount should be paid until justly due by the
terms OF The contract ana there was assurance
that no loss had been incurred by the unwar-
ranted action OF the agents. They also informed
the department. that they would not by full APP
proval, become parties TO the illegal transactions
OF the agents.