The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-03-22
from the Chicago Tribune, March l4th.]
t.e.knap and Fort Smelling.

from the Chicago Tribnne, March l4th.]
t:e.kna p and Fort Smelling.
In the light Of the recent exposure Of
ex-Secretary Belknap as bride taker,
the scandal OF two or three years ago
relative to the Fort Smelling fraud is in-
vested with new interest, land the strong
susricioE raised at tina t time of the Sec.
vetary's dish NEST motives in che settle
ment Of the claim receives a confirmation
from the latter demonstration of his cor.
ruption. 1t is pertinent, therefore, to
recount at this time the history of tho
Fort Smelling reservation.
The government owned some 5000
acres Of land on the Mississippi river, not
far from St. Faul, which had been re-
served for the location of fort. 1t was
thought some twenty years ago that this
would be an excellent site for CITY, and
one Franklin Steele. early in Mr.. Buchan-
ans administration, made the govern
mcnt an offer of $4,000 for the land,
which was refused. In 1857, year later,
when J. 3. Floyd had become Secretary
Of Var, and notwithstanding the rejection
of his previous offer Of $4,000, Steele
was enc .uraged to make another bid cf
only 100000 payable in three equal in
stallments !; and this offer
Floyd accepted. The sale was con-
summated so far as one pay
ment of $50, 900. could do so; but before
it went any further it attracted the at
tentien of Congress, and committee Of
the House after having investigated the
sale, reported it as fraudulent and as
having been made by the Secretary of
War without authority Of law. In the
mean inc, though the original contract
stipulated that the deeds should not pass
until the full amount Of money had been
paid. Floyd evidently became alarmed at
the Congressional investigation and gave
Steele title to the property, 100000
still remaining unpaid. This additional
sum never was paid, as matter Of fact.
so that the sale was not only void alb
anitio by reason of it's fraudulent charac-
ter, but also from the failure Of the pur.
chaser to pay the money as stipulated in
the contract. But Steele was in posses.
sion, and when the war came on he
permitted part of the lard to be occu.
pied by the State Of Minnesota as rem
devious for troops, and it was also occu.
pied subsequently by the United States
as a recruiting station. The parties
claiming the ownership made it profitable
by tolls from ferry which they oper-
ated but after time rental was de
handed from the United States of $4,000
a month for occupying portion of the
land, which would have been at the rate
Of 81 per cent. on the entire cost, or 80
per cent. on the actual payment of $780,.
900. Secretary Stanton persistently re.
fused TO allow this preposterous claim
but, after Belknap came into office, Steele
had the effrontery to present bill for
$4,000 rental, from which he was will.
ing to deduct the unpaid 100000 pur-
chase money, leaving his claim in cash
100000. Though this really amounted
to the governments giving Steele the
land and paving him $4,000 for taking
it, Belknap allowed the bill; but it was
not paid.
In 1870 Steele's work bore fruit. A
resolution was passed by Congress EN-.
towering the Secretary of Wa: to set apart
1000 acres of the Fort Smelling lands as
q permanent military reservation and "to
quiet the title to said reservation, and to
settle all claims in relation thereto, and
Tor the use and occupation thereof, upon
principles of equity This resolution
placed the matter entirely in the hands
Of Secretary Belknap, which was evident
ly what the Steele party desired. Bel.
KNAPP appointed commission of his
own to report an equitable adjustment,
and this commission recommended one Of
two ways. viz; ~ Steele to receive
back his 100000 paid in 1857, with $27..
600 interest, and the government to retain
the 5000 acres; or (2) Steele to receive
all the land except the 1000 acres re-
served by the government without any
further payment. OF course. if one Of
these propositions was fair and equitable
the other was not. But Secretary Bel
KNAPP chose the latter. That is, 1881
acres of land were reserved for the gov.
eminent, together with buildings, to off,
set the unpaid balance owed by Steele
from the fraudulent sale by Floyd, and
leaving over 5000 acres to Steele. Sub.
sequently to this settlement Steele is be-
Heved to have sold one.half the land he
received for 100000. So the transac-
ton figured up accurately as follows:
Steele paid for 1916 acres Of land -. 80, 600
Received for ,52l acres ...... s $1,000
Received for buildings 1909
Received for rentfrem govern
ment ...... 1881
Received for 5000 acres ...... 100000
Value OF remaining land. 90. 100000
s4e7, sos
steele's profit =. go. ..... 90. .s4a7 ,a0s
This was the profit made by an indi.