The New York herald., 1876-03-18

IL Is very Important particularly rs revealing
the manner in which the funds OF the bank f.tlercd
away in loans without adequate security, tho most
notable instance OF which in connection with the
famous Seneca Stone Ring, OF which Governor Cooke
and william s. Huntington the leading spirits,
and of the stock OF which certificates for 200 shares
each were held by various high officials OF the govern
ment
THE POST TRADERsHIPs- CAMPBELL
BEFORE THE OBSERVATION-DISCLOSURES
MADE By ORDER OF THE PREsIDEET-THE
INFLUENCE on oRynLE GRANT AND C. W.
BABCoCK.
Ex-Governor Campbell Of Wyoming, now one OF the
Assistant Secretaries of State, before the Commit
tee ON Expenditures in the War Department to-day, and
read a despatch published In the NEW YoRK HERALD,
dated Bismarck including him with others in the sale
OF post tradershps and said he appeared voluntaryto
deny under oath every statement concerning him IN
that article He had never, any way, directly or IN
directly concerned the sale OF post radershps
any bargain any way affecting post traderships,
and no one by him, had been authorized to use his
namo In connection with the sale or barter OF post
traderships
The Chairman said he had never seon the article
until Governor Campbell called his attention TO it.
The Governor said his brother, j. N Campbell, was
appointed TO post radership not by tho Secretary OF
War but under the old council system, by General
Auger on tho 11th OF May, 1870, at Fort Fctterman
His brother appointed on his recommendation,
but held the position, the appointment having
been revoked within four days He SAID he did not
know Of any post traders having paid money to the
Secretary Of War any other person for The prvi
lege. He had heard such charges In wyoming but
nothing definite; nor could he say who told him. In
reply to question he said he supposed 1t had always
been the that the satlers traders extored ex
orbitant prices OF tho soldiers, they having a mo-
nopoly.
c. K Peck testified that he OF the firm OF Durfec
L Peck who wore post traders at Forts Suly, Rice,
Stevenson apd Buford they appointed as such
by the Army Council OF Administration; in 1870
act was passed giving the appointment to the Secre
tary OF War; when the leadership at Fort Buford was
taken from tho lrm aud given to A. c. Layton; Gen.
era Hedrich partner of Layton; the witness did
not know whether Layton paid the Secretary Of War
or any other person tho appointment he had
heard any body say so; he did not know whether Or
Vile Grant had Interest In tho business he had
spoken to Grant; J. W. Vaughn was designated
to succeed the firm OF Durfee Peck at Fort Steven
son; Mr. Peck informed him that there
only companies at the post, and his impress
sion that Vaughn wanted $1,000 for tho
privilege of the post but he did not receive the
from the hrm The Secretary of War not having been
advised Vaughn would accept the position the firm
sequently put out Mr.. Peck understood, through
Orville Grant James Fitz succeeded the rm Fort
Rice. Fitz in conversation with him, attributed his
appointment the fact that he Ftz) had been attcn-
tive to Mr. Tomlnson, an invalid, who had been placed
in mis- care Tomnson being brother of Mrs Belknap
Athey appointed succeed the nrm Fort Sully
Mr.. Peck said he mad a conversation with the Secre
tarv of War, who told him the appointment had been
given Athcy by order of President Grant and that
been a clerk for w. c. Babcock, Surveyor General Of
Kansas, and brother OF General Babcock, late the
Presidents Private Secretary. There four CON-
panes tho post II q valuable post when the
firm had II, netting about $40 900 year. Tho Drm en-
tered into contract with Athey who had no means.
W. c. Babcock came tho firm about contract
to employ Athey at the rate OF 81 500 year
until he could furnish means TO purchase tho
STOCK suppress o. DGSieo wreck. Athey subsc-
quently obtained such means. The witness supposed
the appointment was procured through the influence
Of Surveyor General Babcock; in fact under
stood between him and Athcy
1t further appears from the testimony that Durfee
Peck were Indian traders Cheyenne under license
from the Interior Department, ana succeeded by
George Felt to whom the firm sold their stock at
satisfactory prices Witness understood Fets appoint
ment through the influence OF Orville Grant
The post worth from SIS 900 to $40 900 year The
year. The witness attributed the removal Of the firm
at that place Orvlle Grant. Having understood an
order for revocation of the license OF Durfce Peck
was issued from the Indian once the wit
asked the Secretary OF the Interior about
It, and the Secretary Informed HIM that the order
issued by the direction OF the President The Sccre-
tary said that If he did not cut of head when he
ordered do the President would his head Off
There was no complaint whatever against tho firm OF
Duree Peck The witness detailed the character of
the contract with Athey. In consideration that he
would buy up the stock of DuIfee 4 Peck he
salary at the of ST. 500 a year until he
should do This done to protect the interests
the firm, they had sac 900 worth goods the
post, and Athey might have goods there at any
tmc and until Athey should buy the goods Of the firm
they to pay Surveyor General Babcock $3.50
quarter This they did for three quarters, making the
sum of 81 $50 This in consideration OF BabcocK
having procured the contract
In further testimony the witness said the effect OF
making the posts monopolies increased the prices
quired be paid Tor goods by both soldiers and In
dams The witness said the proclamation the Prcsi-
dent extending the Great Sioux Reservation enhanced
the value of the posts that reservation. Cheyenne
and Standing Rock the Great Sioux Reserva-
ton The effect OF the proclamation TO drive away
all competition
q DO you know the reason which induced the issu-
Of the proclamation, A. 1t generally
derstood there that through the influence Of
Orvillc Grant.
q TO close out all competitionY A. Yes. sir; which
II did.
The witness said OF the profits goods bought St
Louis and sold at the that staple ARTICLES from
fifteen to twenty five per cent made fancy art-
ccs the profits were about nifty per cent the officers
usually got their goods lower than the men 1t de-
srablc TO favor the officers.
On further examination the witness said that c. W.
Babcock Surveyor General OF Kansas al the time
he became party the contract TO which reference
Is above made.
Adjourned until tomorrow.
INVESTIGATING THE POST OFFICE DEPART