Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-07-09
A Series Of Shallow Fabrica,iOns- Old
'!BiOOd-Letting Zach" Places Hunse.
ly in Suspicious Light.

ENORMOUS anu cOQtiDned frauds upon ar
administration previous to Lincoiu's tC
be
SHALLOW SERIES OF FABRICATIONs
which even casual scrutiny exposes. By
emitting certain facts aud misplac:pp
certain figures, it is Attempted to show
that Gy thS careless and dishonest ex,
change OF the Indian trdst funds fol
worthless local and State bonds. the
country hes been made to lose sums
which, with interest, would now amount
to millions. The case, in brief, is this
The interior department, for many wears
pss.-2s far back as 1880, at least-hss
been the repository Of 4 certain fund,
held IN trust for certain Indian tribes,
| arising from the sale OF certain lands,
| the interest Of which, under an express
| treaty stipulation, was to inure to their
benefit, and the government was bound
to see that it was
SAFELY AND PR0FITABLY INVESTED.
and made responsible for the annual
amount which should at five per cent.
accrue therefrom. An act of the pres.
ent congress, directing that the custody
and control OF this fund should be trans
feTred from the department OF the in
| terror TO the wat department has brought
the su0Jecs prominently before the pub
lie and given rise to rumors that for
several Gays past have been current here
OF an alleged
| DEFICIT OR DEFALCATION
in the funds, which wss made long years
back under Democratic administrations,
and which was only discovered under
the present regime in sequence of the
order mentioned above. An ATTEMPT TO
get at the facts by an interview with
Secretary Chandler himself brought out
the damaging statement readily given
by the secretary, and briefly telegrs phed
She Times last evening. that q ysrv
large portion of this fund had been in
vested in worthless State aud private
corporation bonds by these Democratic
| officials, ia direct violation Of law, and
that the government would be the loser
in the aggreg gate to the amount Of be-
tween $5, OO0. 600 ana S7,000,O0O, and as
the secretary expressed il, nearer 81, ,OOO,-
600 than S.. 600, 600. The secretary said
be expected to find S., 600, ,O0O or SIS, ,0OO,-
600 Of
GOOD SECURITIES,
but found only about S., 600 coo, the rest
being worthless, and tbs balance, with
the accrued interest, making the total
loss, which was set down at nearly ST.
OOO OUO, This smcunt included $50, 600
Of Stale bonds, which he said had bean
aostracted by jacob Thompson, Buchan-
ans secretary OF the interior, and for
which the government had only
FLoYD's AoUEPTANOEs
as secretary OF war, which are now, of
course, worthless. No further explans-
ito Ess made of these items, save that
they were distracted, and be (Chandlerl
Lad brought suit against Thompson for
the amount, with interest, and would re-
cover the amount, Thonpson being pos.
sessad OF that much realty. Tne eeore-
tary seemed gladdened by the interest
selen by the Times in the report, and
pren1iseu to-day to furnish the Times
bureau complete tabular statement Of
- whole matter, showing when these
worthless bonds were purchased, by
whom, and OF whom, and the amount
of interest the government has been
forced to pay upon them, besides
THE LOSS OF THE PRINCIPAL.
The secretary was called upon this af-
ternOOn, at his pleasant rooms in the in
ed with q statement made cut in tabu.
lar form, which was submitted ss proof
of the staten ents made in regard to the
condition Of the fund. The law direct
ing that such fund should be invested in
government securities was passed on
Septem er IL, 184l. Some OF the pur-
chsses enumerated were made prior TO
this, but all such investments made sub
in -
vision of the statute. The secretary's
statement shows that on the twenty
seventh of February, 1889, the secretary
Of the treasury purchased Arkansas
State bonds to the SmUunt of S90, 900.
On this to July, 1875, there is due $780,
800 interest. Then purchases were made
BY JACOB THOMPSON,
secretary Of the interior, as follows: Sep
tember, 1857, Florida bonds, S132, 600;
interest accrued, $l33, ,420; October, 1857,
Louisiana State bonds, S37, 100; interest
accrued, $3.50; July, 1857, North Caro-
lima State bonds, Sl47, 600; North Caro-
lima railroad bopds guaranteed by the
State, 500 600; Albemarle and Chesa-
peske canal, guaranteed by the State,
$1,000; January, 1858, South Carolina
State bonds, Sl25, coo; interest accrued,
500, 600; April 13, 1858, Tennessee State
bonds, $40,0 ,000; interest accrued, $24, ,035;
July q, 1885, purchased by the secretary
Of war, Tenness State bonds, S125, 900;
interest accrued, S75, 600; March 8, 1887,
Tennessee turnpike bonds, purchased by
the secretary OF the treasury, $66,6 ,666 66;
interest accrued thereon, $54 $50; Octo-
bsr, 1851, purchased by the secretary OF
the tressury, Tennessee State bonds,
S104 600; interest acc, ued, $S4, 240; July
8, 1850, purchased by the secretary Of
the interior, Virginia State bones, $751;
500; interest hccrued, $471 ,25S; same
date, purchased by the same, Chesa-
pesxa and Ohio canal company bonds,
1000; interest accrued, 81, ,O90.
THE SUM TOTAL.
is as follows: Bonds purchased, 81, $685.
466 66; interest accrued thereon, all due
from the different States, $ll9,290. The
abstrsted State bonds are as follows
Missouri, 1870, 900; North Carolina,
1857, 900; Tennessee, SAB 600; total,
SS7O, eco; interest from date of abstrac-
ton on all, $500, 100; total, principal ard
interest, ST, ,679, 100. The grand total of
bonds purchased and alleged worthless,
with tbose classified as distracted, to
Re,her with the interest paid to the gov
eminent on all, is 81, 3S4, 1857 16. The
preceding is the entire statement of the
department. 1t constitutes their bill Of
particulars under which they charge ex.
Democratic officials vito wilfuily swim
ding the government, and assert de-
ficit modified $4,000, ,0G0 since lest night.
This is the campaign thunder which the
kitchen organs are dealing out to-day
with all the iavishness OF displays and
double leads, and which is given the
press and the people under the authority
OF Secretary Chandler as the exact con.
dition OF the State stocks and bonds
other than nationRl held IN this fund. A
subsequent visit, however, to the Office
of the custodian Of the fund, Mr.. Dun
can Thompson, jr., and an interview
held with him, followed by an examine
tiou Of the bonds and papers Of the Of
fee, has developed facts that have placed
the secretary
INA SUSPICIOUS LIGHT,
and will force the public to class the
statement, so widely herslded as start
ling exposure, as nothing else tnaD
cheap campaign dodge and q shameful
little attempt to faisify the records oy
suppressing the truth. Mr.. Thompson
was first ask for the total amount be-
longing to the Indian trust fund, in
cluding investments of ali kinds, and
10, a look into the books, that il might
he saeh how all the amount was invest.
eel. On one page q! - large ledcpr was
found condemned statement If the
whole mattar, which shows the total