Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-06-15
MORE LIGHT

Throtcn Upon the Crooked Transactions of
Pirate Shernaan-HOsr He Paid the Er-
penses of the Presidential Peace Commits
sio, of the South.
Washington, June 12,) Special to Cincinnati
Enquirer.
Another interesting chapter of the history of
the late Presidential election has come to light.
1t will be remembered that when the Presi-
dental commission was sent South the question
was frequently asked in the newspapers, ssWho
pays its expenses?" The following letters full
ly answer that hitherto unanswered question:
Private and Confidential
TREASURY DEPARTMENT
WASHINGTON, March %, 1877.
Geo. F. Baker, Cashier, First National Bank,
New York:
My DEAR SIR: The President has decided to
send commission, composed of men of promi-
hence and responsibility, to some of the South
ern States for the purpose of healing, if posi-
BILE, the present political difficulties which ex-
ist in them. 1t is also hoped this course will
secure to the administration and the
government the moral support and aid
of persons residing in Southern localities.
The only practical difficulty in the way of
carrying out this grand project arises from the
want OF an appropriation. Your bank can re-
move that difficulty, and it is for the purpose
of securing your aid in this matter that l adj
dress this letter to you, believing that you will
cheerfully cooperate in a work which has for
its aim and object the peaceful solution of
grave and perplexing difficulties. The amount
which will be required will probably fall be-
tween $4,000 and 81 ,000
What have to suggest is this: That your
bank advance the money to some person, who
will be appointed the disbursing agent. and re-
celve from him the vouchers which he will take
,hay,h o,,
gress convenes again deficiency appropriation
will be asked for by the executive for the pur-
pose indicated above, and what you shall adj
vance will be promptly returned to you. l do
not think there can be any hazard or risk in the
matter or l would not suggest it. l have
thought also, that you would be pleased to
have the opportunity to render the aid which
is needed for a good purpose at this time.
shall be glad to receive an early reply to this
letter. With much respect, l am yours.
CHAs F. CoNANT
An early reply to this letter was read as fol-
lows:
FIRST NATIONAL BANK, =,
New YORK, March "a, 1877.
My DEAR Mr.. CoNANT:-I am in receipt of
your letter of yesterday in regard to making an
advance Of money for the expenses of the
commission to be appointed by the President
to visit Southern States and beg to say that the
bank will take pleasure in extending the ac-
truly, GEO. F. BAKER.
The unearthing of these letters opens up a
new lead for an investigation which is likely to
play an important part in the impeachment of
John Sherman, an event almost sure to come
in the near future; for this manner of paying
the bills of the commission is held by some of
the best lawyers of the House to be a fragrant
violation of law, which prohibits any officer of
the government from anticipating any appro-
priation. Sherman's name does not appear in
these letters, but it is not conceivable that the
plan was conceived or carried out without his
authority.
Conant is the special financial agent of the
government at London in the interest of the
syndicate. He is Sherman's confidential man
in all business between the treasury and the
syndicate. and at the time the letters were
written was assistant secretary of the treasury.
| 1t is further significant that Fahnstock, presi-
dent of the First national bank, is one of the
five members Of the syndicate; that his bank is
| a special depository for United States
four and one-half per cent. bonds,
and that it has for long time
been Secretary Sherman S most specially favored
financial institution. Sherman's responsible
| ity, however, will be fully proved by letters
| over his signature, to Baker and to the COM
| mission, vouching for Powers who was the dis
bursting agent appointed, and who pro-
NOTED shortly after his return from the expedi-
ton.
The commissions bill of expense has also
been unearthed. 1t is entertaining docu-
ment, and will be fine nuts for Ben. Butler,
especially an item of ffty-nine dollars and
| some cents for travelling expenses Of Wayne
McVeigh from Harrisburg to Washington and
return. AS this amount is four or five
times above the regular fare. Butler will
be likely to ask Wayne to explain. The bill
further shows that Justice Harlan took his son
along at the expense of the appropriation
which the President was to ask Congress to
| make, and that it cost about $4,000 to indulge
in that commission. The hotel bill averages
S12 per head per day. The deficiency appro-
prlatlon, as preordained, was Recommended
and came very near being tackled on by Chair
man Atkins to the deficiency bill. By advice
! however, he declined to appropriate, and the
scheme now is to have the Senate tack it on
to the sundry civil bill.