.^ "-■-"■■-% '^v^ q'^ o (?;;\^ 4 O .^^ b-" * '^0^ 'oV •r O ' O • ^ c - „ '' . t-* :^ ^^^i^'- )^.* .V ^. '.^©isS,* '\^ ^<^ <- o -iq^ .i?:ja«sr- ^o^^ ./ . 60TII Congress, { SENATE. (Document 1st Session, j [ No. 398. REPOKT ON CERTAIN INDICTMENTS FOKMEliLY FOUND AGAINST D. H. JOHNSTON, P. S. MOSELY, GEORGE MANSFIELD. J. F. McMURRAY, AND MELYIN CORNISH, AND LATER DISMISSED. L E T T E K THE ATTORNEY-GENERAL, SUBMITTING, PURSUANT TO SENATE RESOLUTION OF MARCH 3, 1908, A REPORT WITH REFERENCE TO CERTAIN INDICTMENTS FORMERLY FOUND AGAINST D. H. JOHNSTON, P. S. MOSELY, GEORGE MANS- FIELD, J. F. M'MURRAY, AND MELVIN CORNISH, AND LATER DISMISSED. March 19, 1908. — Referred to the Committee ou ludiau Affairs and ordered to be printed. Department of Justice, Office of the Attorney-General, Washington, D. C, 'March 17, 1908. Sir : By direction of the President I hereby submit a report on the subject-matter of the resolution of the Senate of the United States dated March 3, 1908, and received by me on March 4, 1908, with reference to certain indictments formerly found against D. H. John- ston, P. S. Mosely, George Mansfield, J. F. McMurray, and Melvin Cornish, and later dismissed. It appears from the records of this Department that about the 25th day of June, 1905, information was received that the firm of Mans- field, McMurray & Cornish, who had been the attorneys for the Choc- taw and Chickasaw nations of Indians, and, as such, had resisted, on behalf of said nations, the applications of numerous persons for citi- zenship in the said tribes before the citizenship court, together with the governors of the said two nations, had been indicted for the alleged misappropriation of tribal funds by the grand jury of the southern district of the Indian Territory. This indictment had been found by the said grand jury under the advice of one W. B. Johnson, ^X'^ ]() 2 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. then United States attorney for the said district. Soon afterwards the attention of the Department was called by the President to com- plaints that this indictment was not supported by the evidence sub- mitted to the grand jury; that the grand jury itself, or some members thereof, were hostile to the defendants, and shared a prejudice against them i^revailing among the white inhabitants of the Choctaw and Chickasaw territory and the adjoining district of Texas, arising from the fact that several thousand such persons had been foiled in attempts to procure their enrollment on the tribal rolls of the Indians in ques- tion through the efl'orts of the said counsel, at an estimated saving to the genuine Indians of some $15,000,000, and that the Un,ited States attorney had been actuated in his official conduct by personal enmity to the accused, arising mainly from the fact that they had replaced him as counsel for the said tribes of Indians. By direction of the President an inquiry was ordered into these charges and com- plaints, and Mr. Charles W. Kussell, now Assistant Attorney-General, was ordered by Attorney-General Moody to conduct said inquiry. It is suggested in the first paragraph of the resolution proper that Special Agent John S. Mosby, of this Department, had been instru- mental in causing the said indictment to be found, but this appears to be a misapprehension, founded apparently upon his having investi- gated the charges against United States Marshal Benjamin H. Col- bert, of that district, and certain other parties against whom indict- ments were found about the same time, and also to the fact that Mr. Mosby was then present in the Territory and informed of the pro- ceedings before the grand jury. It does not at all appear from the records of the Department that he was authorized to act in any official capacity with regard to the subject-matter of the resolution now under consideration; he appears, however, to have believed the defendants guilty. After a prolonged and very careful investigation Mr. Russell reported to the Attorney-General that, in his judgment, the indict- ment ought not to have been found, and ought to be dismissed, and on December 6 Attorney-General Moody directed the United States attorney for the southern district of the Indian Territory to dismiss the said indictment unless he had found some reason to the contrary since his return to the Indian Territory, he having previously visited Washington for consultation with the Attorney-General on this sub- ject. On the same day Mr. Johnson telegraphed to the effect that he was expecting further information on the subject, and this informa- tion he sent on December 13 in a letter and telegram, of which I inclose copies, marked Exhibits ''A" and '* B." On December 17 he stated in another telegram that he was convinced of the guilt of the accused. It is understood that the Department of the Interior desired the prosecution to be continued, and in view of this fact, and inasmuch as Mr. Johnson's term of office would expire within some six weeks^ it was determined not to dismiss the indictments, but to cause a further investigation to be made by the succeeding United States attorney, Mr. George E. Walker, who was appointed on February 1, 1000. In the meantime — that is to say, on December 18, 1905 — the President had directed the removal of Mr. Johnson, but on the same day revolted the order. The two announcements were made, in accord- ance with custom, through this Department, but the cause of the APR 13 u:^ > (TV -J. r> INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 3 action in each case is not disclosed by its records. Nothing further appears with respect to the case until on April 9, 1907, a report was received from Mr. George R. Walker, United States attorney for the southern district of the Indian Territory, a copy of which is herewith inclosed, marked " Exhibit C." As will be observed, this elaborate report concludes with the statement : I therefore respectfully inform yon tliat I am prepared to take the official and professional responsibility of dismissing the indictments, unless there is some fact known to the Department at Washington or some conclusion arrived at by the Department that has not occurred to me. On receijot of this report I telegraphed Mr. Walker as follows : Take no further action in prosecution against Mansfield and others until further instructed by Department. Simultaneously I telegraphed to Mr. W. S. Gregg, a special assist- ant of this Department, then engaged in another investigation in the Indian Territory, to proceed as soon as possible to Ardmore, in order to investigate the case and make a full report thereon to the Depart- ment, and on the day following I addressed a letter to the Secretary of the Interior in the words following : Dear Mr. Secretary : I inclose herewith a copy of United States Attorney Walker's letter in regard to the prosecution against Mansfield and others. inclosing a copy of Mr. Walker's letter. On May 1 the Secretary of the Interior wrote as follows : Dear Mr. Bonaparte : Referring to your letter of April 10, relative to the prosecution against Mansfield and others, I am clearly of the opinion, after conference with Mr. Leupp, that the case should be vigoi'ously prosecuted de- spite the letter of the district attorney. On the same day Mr. W. S. Gregg submitted his report, a copy of which is herewith transmitted, marked " Exhibit D," The conclud- ing paragraph of this report, as will be noted from an examination of the said exhibit, was as follows : In view of all the evidence presented to the grand jury, the allegations in the indictment, and after a careful examination of the books and papers of Mans- field, McMurray & Cornish, I have reached the conclusion that the Government could not hope to be successful in prosecuting the case to a final determina- tion. As to whether or not additional evidence could be obtained upon a trial of the case is a question which it is impossible to determine at this time, but with the evidence now at hand, and with no prospects of obtaining anything in addi- tion thereto, I feel confident that the facts do not justify a further prosecution on this indictment, and I have the honor to recommend that the United States attorney be directed to dismiss the proceedings. On May 2 a copy of this report was forwarded to the Secretary of the Interior. On May 8 he replied as follows : I inclose herewith a copy of a memorandum prepared in the Indian Otfice re- garding the suit against D. H. .Johnston, P. S. Mosely, George Mansfield, J. F. McMurray, and Melvin Cornish. Under the circumstances I think it will be necessary to abandon it. A copy of the memorandum annexed to this letter is herewith in- closed, marked " Exhibit E," and, as will be noted, it concludes : I have carefully analyzed Mr. Gregg's report and, in view of what is said therein, I am firmly convinced that the indictment should now be dismissed, and I so recommend. On receipt of this letter, and after having consulted with the Presi- dent personally, I wrote, as directed by him, on May 9, to Mr. Charles 4 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL, Nagel, of St. Louis, asking if he would serve as special counsel to make an investigation of this case, advising the Department whether the prosecution should or should not be abandoned, and if, in his judgment, it should be pressed, conduct the trial on behalf of the Government. Mr. Nagel accepted this appointment, and was fur- nished, at his request, with all the papers on file in this Department, or in the Department of the Interior, bearing upon the question, and, under date of June 24, 190T, he submitted his report, a copy of which is herewith inclosed and marked ■■' Exhibit F." An examina- tion of this carefully prepared and thoroughly impartial review of the case presented by the documents will show^ that Mr. Nagel says : Upon he wbole, therefore, my coucliisiou is this : In so far as the indictment relies upon the bald circumstances that the acts of the Chickasaw Nation were not approved by the President, or that the expense accounts rendeied by the attorneys were not properly itemized, the indictment can not. in my opinion, be sustained. If I am to pass upon the remaining questions of fact in the light of the documents before me — that is, the testimony before the grand jury and Mr. Gregg's conclusions — then I also recommend the dismissal of the indictment. This report was received by the Department on June 29, and on that day I acknowledged its receipt as follows: I am in receipt of your very interesting report of the 24th instant, but have not yet had time to give it more than a hasty perusal. I will give it more care- ful consideration at the earliest opportunity, and will write you later. A copy of Mr. Nagel's report was duly forwarded to the Secretary of the Interior on June 29. On September 5 a reply was received, inclosing a letter from the Acting Commissioner of Indian Affairs, copies of both of which communications are inclosed herewith, marked, respectively. Exhibits " G " and '' H." By reference thereto it will be seen that the Indian Office says : It is believed that no good purpose would be served by bringing to trial Mans- field, McMurray, and C(n-nish, and the others indicted with them, and it is therefore recommended that the Department of Justice be requested to instruct the proper United States attorney to dismiss the indictment. It will also be seen that the Acting Secretary of the Interior says, " I concur in the recommendation that the indictment referred to be dismissed." Notwithstanding the successive recommendations of Messrs. Rus- sell, Walker, Gregg, and Nagel that the indictments in question be dismissed, and the approval of this recommendation by the Indian Office and the Department of the Interior, this Department held the question of such dismissal under advisement until November 13, 1907, when I sent the following telegram to Mr. Nagel : Have decided to, direct district attorney to secure dismissal of indictments against Mansfield, McMurray, and Cornish. Action taken after full consulta- tion with authorities Interior Department. On the same day I instructed Mr. Walker to dismiss the indict- ments, and, in the same telegram, called his attention to the impor- tance of taking this action before the proclamation should be issued admitting Oklahoma to statehood, since the court in which the in- dictments were pending would be deprived of any jurisdiction over them, if action were delayed until after the Territory had become a State. On the day following, November 14, I was informed by a telegram from Mr. James E. Humphrey, assistant United States INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 5 attorney (Mr. Walker being absent), that the indictments had been dismissed. I now submit a review, in detail, of the several paragraphs of the resolution and its preamble. The first paragraph of the preamble of the said resolution is as follows : Whereas it is alleged that on the twenty-fourth day of June, nineteen hundred and five, a grand .inry of the United States of America, duly selected, sum- moned, impaneled, sworn, and charged to inquire fully in and for the body of the southern district of the Indian Territory in the name and by the authority of the United States of America, did, upon the oaths of the members thereof, find, present, and charge that one D. H. Johnston, one P. S. Mosely, one George Mansfield, one J. F. INIcMurray, and one Melvin Cornish, and others to the grand jurors unknown, on certain days in the year nineteen hundred and two, within the southern district of the said Indian Territory, did unlawfully and feloniously commit the crime of conspiracy to defraud (an offense against the laws of the United States) by defrauding the Chickasaw Nation out of the sum of twenty-eight thousand eight hundred and seventy-six dollars and ninety cents, the exact amounts fraudulently obtained from the Chickasaw Nation and the exact times and places where and when the said fraudulent transac- tions occurred being set out in said indictment. The alleged statement embodied in this paragraph is substantially correct. The second paragraph of the said resolution is as follows : And whereas it is alleged tliat on or about the fifteenth day of December, nineteen hundred and five, the Attorney-General of the United States did di- rect one W. B. Johnson, then United States attorney for the southern district of the Indian Territory, to dismiss, by entering a nolle prosequi in said case, the said indictment. The alleged statement contained in this paragraph is inaccurate. On December 6, 1905, the then Attorney- General, Hon. William H. Mood}', sent a telegram to W. B, Johnson, then the United States attorney for the southern district of the Indian Territory, in the words following: Dismiss indictment of Mansfield, McMurray, Cornish, Johnston, and Mosely. unless you have, since your return, found some reason to the conti'ary. The third paragraph of the said preamble is as follows : And whereas it is alleged that the said W. B. Jolmson refused to dismiss the said indictment as directed by the Attorney-General of the United States. The alleged statement contained in this paragraph is likewise in- accurate. On December 6, 1905, the said W. B. Johnson replied to the telegram of the same date of the Attorney-General, as follows : Your telegram this date directing dismissal case against Mansfield, McMur- ray, and Cornish, et al., received. Will await some information which has been unavoidably detained and then advise you. On December 8 a telegram from Mr. Cecil A. Lyon to the Presi- dent was referred to the Department of Justice. This telegram was as follows: In spite report Attorney-General cases against Johnston, McMurray. et al. not dismissed Ardmore, Ind. T. Please so direct. On December 10, 1905, the Attorney- General sent the following telegram to Mr. Johnson: Information referred to in your telegram must be sent at once. Am anxious to end this matter. Answer. In reply to this message two telegrams and a letter were sent explaining reasons for delay and furnishing some items of the prom- 6 INDICTMENTS FOUND AGAINST D, H. JOHNSTON ET AL. ised information, and on December 17 the following telegram Avas received from United States Attorney Johnson : From the evidence before grand jury I believed defeud.iuts guilty. The book and statements of defendants explained away our chief evidence of conspiracy, defendants claiming warrants delivered to Johnston in satisfaction of personal advancement. Statement of bank shows this claim untrue. Think evidence on hand will warrant conviction of all defendants. The fourth paragraph of the above-mentioned preamble is as follows : And whereas it is alleged that the Attorney-General of the United States on or about the fifteenth day of January, nineteen hundred and five, removed the said W. B. Johnson from office, said removal being by telegraphic communica- tion, and said removal being based upon the refusal of the said W. B. Johnson to carry out the directions of the Attorney-General of the United States. The alleged statement contained in this paragraph is likewise inac- curate. It is evidently unnecessar}^ to call the attention of the Senate to the fact that the Attorney- General has no power to remove a United States attorney from office. The records of this Department, however, show that on December 18, 1905, the Attorney-General sent the above-mentioned W. B. Johnson, United States attorney as afore- said, the following telegram : The President has to-day removed you from office of the United States attorney for southern district of Indian Territory, to take effect immediately. The fifth paragraph of the said preamble is as follows: And whereas it is alleged that the said Attorney-General of the United States did, on or about the fifteenth day of January, nineteen hundred and five, by telegraphic communication, reinstate the said W. B. Johnson in the office of United States attorney for the southern district of the Indian Territory. The alleged statement therein contained is likewise inaccurate. On December 18, 1905, the Attorney-General, by direction of the Presi- dent, sent a second telegram to the said W. B. Johnson in the words following : My telegram of to-day notifying you of removal from office of United States attorney is hereby canceled. The records of this Department do not disclose the reasons of the President for causing either the first or the second of the above- mentioned telegrams to be sent. The sixth paragraph of the said preamble is as follows: And whereas it is alleged that the said W. B. Johnson refused and continued to refuse to dismiss the said indictment against the said persons during his term of office. The alleged statement contained in this paragraph is inaccurate to this extent that, inasmuch as the above-mentioned W. B. Johnston, United States attorney, was never instructed to dismiss the indictment in question, except in a contingency which aj^parently did not arise, he did not and, indeed, could not "' refuse to dismiss the said indict- ment ; " but it is true that the said indictment was not dismissed during the remainder of his term of office, which ended on February 1, 1906, nor, I may add, was the said indictment dismissed until November 13, 1907, some twenty-one months after Mr. Johnson's successor had assumed office. The seventh paragraph of the said preamble is as follows: And whereas it is alleged that on or about the thirteenth day of November, nineteen hundred and seven, the Attorney-General of the United States did INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. i send a telegram to the United States attorney for tlie sontliern district of the Indian Territory, one George K. Walker, directing him to "be snre " and dis- miss the said indictment against the said persons "before the Territorial courts pass out of existence and the creation of the new State." The alleged statement therein contained is substantially correct, although slightly inaccurate in language. On November 13, 1907, I addressed the following telegram to George R. Walker, esq., then United States attorney for the southern district of the Indian Terri- tory : Have decided to authorize dismissal of Indictments against Mansfield, McMuri'ay, and Coi'nish. Take appropriate action at earliest opportunity, and be certain that indictments are dismissed before statehood goes into effect. The eighth paragraph of the said preamble is as follows : And whereas it is alleged that on or about the fourteenth day of November, nineteen hundred and seven, the assistant United States attorney for the south- ern district of the Indian Territory (the United States attorney being absent at the time), one James E. Humphrey, did cause an order to be entered upon the records of the United States court for the southern district of the Indian Terri- tory, sitting at Ardmore, dismissing the said indictment by the direction of the Attorney-General of the United States. The alleged statement contained in the last-mentioned paragraph is substantially correct. The first paragraph of the resolution itself is in the words follow- ing: Therefore, be it Resolved, That the Attorney-General of the United States be, and he is hereby, directed to transmit to the Senate a true and correct copy of the report of Spe- cial Agent J. S. ;Mosby, uiion which report the said indictment was returned; the minutes of the grand jury and the documentary evidence presented to said grand jury; a true and ecn-rect copy of the indictment; all correspondence of every kind and descrii^tion that has passed between the Department and the United States district attorney or attorneys and his or their assistant attorney or attorneys for the southern district of the Indian Territory ; all correspondence of evei-y kind and description between any officer, agent, or em[)loyee of the United States Government and any other person or persons whomsoever, per- taining or api>ertaining to said indictment. I have the honor to say that there is no report of Special Agent J. S. Mosby relating to the indictment on file in this Department, and no such report was ever received. The said indictment was not returned upon such report, nor upon any report of any special agent of this Department, nor upon any report of any kind. It is again evidently unnecessary to call the attention of the Senate to the fact that indict- ments must necessarily be returned upon the testimony of witnesses produced before the gi-and jury which returns it. This Department has not in its possession the minutes or the documentary evidence presented to the said grand jury, and can not, therefore, furnish or transmit the same to the Senate. This Department has, however, a copy of the indictment found, and transmits herewith what it believes to be a true and correct copy of this document, marked " Exhibit 1." There is included in this report, or inclosed therewith, all corre- spondence between this Department and the successive United States attorneys for the southern district of the Indian Territory which is material or appropriate to the subject-matter of the said resolution. Such further correspondence on this subject as there is on the files of this Department relates mainly to the acknowledgment of communi- cations or other matters of routine. This report contains the sub- 8 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. stance of all correspondence in the possession of this Department between public officers belonging to the Department and other per- sons which is material to the subject-matter of the said resolution and ajDpropriate for transmission in accordance therewith. The final paragraph of the said resolution is in the words following: That the Attoniey-Genernl be, and he is hereby, directed to inform the Senate why said indictment was dismissed, whether n))on insnfiiciency of law or fact, and particularly whether the facts aliened were in the form of documentary evi- dence, and the guilt of the defendants thereby established beyond question : and whether it is customary for the Attorney-General to interfere in the prosecution of persons against whom an indictment or indictments have been returned in the State or Federal courts of the country, and if so, by what authority of law ; and whether other indictments of a similar nature liave been dismissed by direc- tion of the Attorney-General within the past fi\'e years, and if so, what indict- ment or indictments and the cause therefor. With regard to this paragraph I have the honor to state that the reason for the dismissal of the said indictment appears from the present report and from the communications herewith inclosed from United States Attorney George K. Walker, Special Assistant W. S. Gregg, and Charles Xagel, esq., special assistant to the Attorney-Gen- eral, all three of whom successively recommended the dismissal of the said indictment ; that by " the facts alleged " I understand the reso- lution to mean the facts alleged in the said indictment, and the in- formation of the Department on tliis subject is contained in the three reports lastly above mentioned and inclosed herewith, and in certain verbal reports made by Assistant Attorney-General Charles W. Rus- sell, who made a careful investigation of the matter, as set forth in this report; and that, in the opinion of Messrs. Walker, Gregg, and Nagel, of Assistant Attorney-General Russell, and of the present At- torney-General, " the guilt of the defendants " was not '' thereby," that is to say, by the evidence submitted to the grand jury, " estab- lished beyond question." On the contrarj^, the officers in question agreed in the belief that the indictment ought not to have been found, and that there was no hope of securing a conviction before an impar- tial jury. I further respectfully report that it is customary for the Attorney- General to interfere in the prosecution of persons against whom an indictment or indictments have been returned in Federal courts of the countr3^ and that it is not customary nor would it be possible for the Attorney-General, as such, to interfere in the prosecution of persons against whom an indictment or indictments have been re- turned in State courts of this country. The authority of law for such intervention by the Attornev-Geheral is contained in the acts ap- proved August 2, 1861 (12 Stat, 285). and June 22, 1870 (16 Stat., 164), and codified as United States Revised Statutes, section 362; and many indictments charging offenses against the United States have been dismissed under the authority of this Department within the past five years, but I deem it inappropriate to furnish a list of such indictments and the reasons for the dismissal of each, respectively, inasmuch as such information would appear to have no bearing upon the subject-matter of this resolution, and to furnish it would involve a very material loss of time and labor and considerable expense to the public. I deem it appropriate to add that it appears from the records of this Department that on July 31, 1905, Mr. Charles W. Russell, now INDICTMENTS POUND AGAINST D. B.. JOHNSTON ET AL. 9 Assistant Attorney-General, as above stated, sent to Hon. William H. Moody, then Attorney-General, a letter relating to this case, of which a copy is herewith forwarded, marked '' Exhibit J ; " that on September 20. 1905, ]\Ir. Eussell submitted to the Attorney-General a report, of which a copy is herewith forwarded, marked " Exhibit K ; " that on October 14, 1905, this report was, by order of the Attor- ney-General, forwarded to Mr. W. B. Johnson, then United States attorney for the southern district of the Indian Territory, with in- structions to make such comment thereon as he might deem appro- priate; and that on October 20, 1905, Mr. Johnson sent' a letter to the Attorney-General, a copy of which is herewith forwarded, marked " Exhibit L." Subsequently the said United States attorney was ordered to Washington for a personal conference with the Attorney- General, and, after said conference and his return to the Indian Ter- ritory, the telegram of December 6, 1905, was sent to him by this Department. I did not refer to these various documents in the nar- rative portion of this report, because they appeared to have no direct connection with the dismissal of the indictment in question on Novem- ber 13, 1907 ; but, as they relate to the subject-matter of the resolution and are among the documents requested by its terms, it seems appro- priate that copies of them should accompany this report. It seems proper likewise that I should say that, while, as is herein- before set forth, the records of the Department do not disclose the reasons for the President's removal of United States Attorney Johnson on December 18, 1905, and his revocation of this order on the same dnj. I have official information that the first-mentioned telegram was sent under an impression, on the President's part, sub- tantially to the same effect as the alleged statement contained in the third paragraph of the preamble to the resolution above mentioned, that is to say. that the said United States attorney had disobeyed the instructions of this Department, and his removal was by reason of such supposed act of disobedience, and that this erroneous impres- sion having been removed through a personal explanation by the Attorney- General, the President later on the same day revoked the order in question. Very respectfully submitted. Charles J. Bonaparte, A ttoimey- General. The President of the Senate. Exhibit A. [Telegram.] Ardmore, Ind. T., December 13^ 1905. "Further reporting on Mansfield, McMurray, Cornish, et al. matter, verified statement cashier State National Bank, Denison, Tex., shows January 1, 1899, D. H. Johnston personally had on deposit less than $500. On May 17 account overdrawn ; same June 3 and September 6. On May 20, same year, Johnston as governor had on deposit $30,000 to pay expenses per appropriation act ; same date checked out $2,565 ; same date his personal account credited with that amount. Same 10 INDICTMENTS FOUND AGAINST D. H. JOHNSTON BT AL. thing occurred June 12 — $1,200. On December 6 account of gov- ernor had $34 on hand. During 1900 account governor had deposited about $7,000; all checked out same year. Nineteen hundred and one same account had deposited $2,000 ; checked out. In 1899 John- ston's individual account showed deposits $18,500; 1900, $42,000; 1901, $21,000. Salary as governor only $1,500 per annum; other in- come reported nominal. Claimed by attorneys during these years Johnston personally advanced money to defray expenses and took these warrants due them in lieu thereof. Think further investiga- tion will show large deposits of Johnston were funds belonging to Chickasaw Nation. Will mail statement this date. Johnson, United States Attorney. The Attorney-General, Washington^ D. C. Exhibit B. Office of United States Attorney. Southern District of Indian Territory, Ardmore, Ind. 7"., December 13, 1905. Sir: I l^ere^^•ith inclose you verified statements of the account of D. H. Johnston and also of D. H. Johnston, governor of the Chicka- saw Nation, with the State National Bank, of Denison, Tex., verified by the cashier of that bank. These are the statements I have been having so much trouble in procuring. I also inclose an act of the Chickasaw legislature appropriating $30,000, which sum was turned over to Governor Johnston on May 20, 1899. The act itself explains the purpose for w^hich the appro- priation was made. It will be observed that on the same date $2,- 565,75. was drawn from this fund, and also on the same date similar sums were credited to D. H. Johnston's account. On June 12, $1,200 of this amount was checked out, and on the same date the same amount was deposited to the credit of D. H. Johnston. Beginning with January 1, 1899, D. H. Johnston deposited during that year $18,509.87. During the year 1900 he deposited $42,001.20. During the year 1901 he deposited $21,458.75. It is a well-known fact that Governor Johnston did not have an income in any one of the three years mentioned equal to $5,000 per annum. I feel confident that an examination of the Chickasaw treasurer's books and of the revenue accounts of said nation will show that the moneys thus deposited belonged to the Chickasaw Nation, and was not the individual money of Johnston. It has been impossible for me in the time allotted and the oppor- tunity afforded to make an investigation to learn definitely from what source he received this money. It will be remembered that tie attorneys, Mansfield, McMurray & Cornish, admitted that Johnston received three Chickasaw warrants for $2,700 each, which should and did belong to them. The explanation offered by them was that the warrants were turned over to Johnston because he had personally advanced money to them to defray expenses incurred on behalf of the Chickasaws for an amount greater than the sum of the three war- INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. ] 1 rants. The first item submitted by them was a check of $77.15, paid them by Johnston September 7, 1899. At that time the $30,000 had not been entirely used, and there was no reason why he should have paid these expenses out of his individual funds. The same may be said about other checks paid later. I feel that it is unnecessary for me to go into details, because you will have an opportunity to examine the statements furnished, and nothing I can say will probably assist in arriving at a proj^er conclu- sion about this matter. I can not refrain from saying, however, knowing the financial condition of the parties and the surrounding circumstances, that I believe a more complete investigation would reveal the fact that the moneys used by the attorneys to cover alleged expenses did not belong to Johnston, but to the people of the Chick- asaw Nation, and that when he received the three $2,700 warrants, which has been admitted, he was appropriating money to his own use that he had no right to. Nor have I changed my original opin- ion as to the guilt oi these defendants. The book shown by them appeared to account for the three $2,700 warrants, but the investi- gation made convinces me that Johnston did not advance this money out of his private means. The other accounts were shown b}^ the book to be regular, but as those statements rendered were so poorly itemized it is impossible to sa}' that the expense was or was not incurred. So far as I am concerned, this closes my investigation of the case, and it is for you now to determine what shall be done. Very respectfully. The Attorney-Gener-\l. Washington, D. 0. Wm. B. Johnson, United States Attorney. Exhibit C. Office of United States Attorney. Southern District or Indian Territory, Ardmore, Ind. T., March 29, 1907. Sir: In the matter of the indictment for conspiracy pending in the United States court in the southern district of the Indian Terri- torv against D. H. Johnston, P. S. Mosley, George Mansfield. J. F. McMurray, and Melville Cornish. I have to report that since the date of my appointment, to wit, February 1, 1906, I have given earnest consideration to the indict- ment, the stenographic report of the evidence presented to the grand jury, the personnel of the grand jury finding the indictment, the personnel of the witnesses testifying before the grand jury, the mo- tive, if any, of the witnesses in so testifying before the grand jury, the relations of the prosecuting witnesses to these defendants, the rela- tions between the various members of the grand juiy and these de- fendants, and the relations between these defendants and the public at larse in the southern district of the Indian Territorv. 12 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. For my guidance as to the law involved in this matter I prepared, with such assistance as I could procure in my office, a brief on the general law of conspiracy, a copy of which is herewith inclosed. As to the facts and allof the facts to be relied upon and used in the trial of the case I was informed by the Secretary of the Interior that further information would be jDresented to me, and that Mr. William J. Burns, of the Secret Service, would be put in charge of such work as special assistant to me in the business of collecting all the evi- dence in existence touching these facts. I early consulted the local attorneys of these defendants in reference to their disposition to place at my disposal for personal examination the books, checks, ac- counts, contracts, etc., that were exhibited to the Department of Jus- tice at Washington prior to my appointment, and was assured that all such books and papers would be brought to Ardmore for my ex- amination upon request. I then, from time to time, as I could spare it from my general du- ties in the management of a large criminal business which had to do with crowded dockets in eight court towns and with a large vol- ume of new criminal business being continually ground out by eight grand juries, commenced to acquire by observation, absorption, and the processes of taking on information known to lawyers as under- standing of the environment and the validity of this indictment. I have written Mr. Burns several letters requesting him to make his investigations, as this case was on the Ardmore docket and could not be continued indefinitely from term to term. During the past week I found that I had the time at my disposal for the personal consideration of the facts in this case and made a request of the local counsel for these defendants to furnish me for personal inspection all books, papers, checks, contracts, etc., that would throw any light upon the crime charged in the indictment. I examined the cash book of Mai^field, McMurray & Cornish, the original checks, numerous letters, reward for Mansfield, McMurray & Cornish. S. Doc. 39S, 60-1 2 18 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. If the owner of a valuable fee in land sliould employ an architect or a contractor to put a structure thereon, and the owner had only a small amount of cash to cover the necessary expenses and accord- ingly should engage to give to the architect or contractor a small salary for services and a contingent interest in the proceeds of the sale of the land and the building erected thereon, it is not fair to assume that the architect or contractor would be content with the misappropriation or embezzlenu-nt of the paltry expense money in the hands of a substantially bankrupt owner. It is to be assumed, however, that the owmer and the architect would husband all their time, get together all of their limited resources, and devote all their energies and all their little moneys so that the project might be achieved and the reward secured for the enrichment of a practically bankrupt owner and a practicall}' bankrupt architect or contractor. It is not fair to assume that Governor Johnston and Governor Mosley, of the Indian tribes, and Mansfield, McMurray & Cornish were devot- ing themselves to the dissipation of such trifling sums of money when by the proper use and application of such money and large sums of money borrowed by Mansfield, McMurray & Cornish on their own personal credit, a great prize could be won for the Indian tribes and 10 per cent of which then became the property of Mansfield, Mc- Murray & Cornish. Like the Johnson grass in Texas, of which a Nestor farmer told me on the train on my return from the Denison Bank, where I found a mare's-nest. The Johnston grass, with the muscular roots that the farmer described, threatens to spread over the State of Texas and conquer all opposing vegetation there. So I then thought and now state the fact to be that, like the Johnson grass in Texas, the fore- going conclusion spreads its way over this record and strangles every fact opposing it. This case can not be won. It ought not to be won. There is but one victory for the Government in the premises. That is in the immediate dismissal of the indictment. I do not wisli to be understood in the foregoing as tendering any criticism of Mr. W. B. Johnson, my predecessor in office. I therefore respectfully inform you that I am prepared to take the official and professional responsibility of dismissing the indictment, unless there is some fact knoAvn to the Department at AVashington, or some conclusion arrived at by the Department that has not occurred to me. Very respectfully, Georoe R. Walker, United States Attoniey. The Attorney-General, W ashington^ D. C. Exhibit D. Department of Justice, Washington, May 1, 1907. Sir : In obedience to the instructions contained in your confidential letter of April 0, 1907, directing me to investigate the facts upon which the indictment in the case of The United States v. D. H. John- ston, P. S. Mosely, George Mansfield. J. F. McMurray, and Melvin Cornish, pending in the southern district of the Indian Territory, INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 19 charging a conspiracy to defraud the Chickasaw Nation out of cer- tain funds, is predicated, I have the honor to submit the following report of the result of my investigation : I proceeded to Ardmore, in the southern district of the Indian Territory, and requested the United States attorney, Mr. George R. Walker, to place at my disposal for examination all of the records of that case, which he did. I first took up the indictment and went through carefully all of the testimony, which appears of record, pre- sented to the grand jury at the time this indictment was returned. It appears from the records that only a portion of the testimony before the grand jury was reported. It appears that Mr. McMurray, one of the defendants, appeared before the grand jury and testified, but his testimony does not appear to have been reported. It further appears that when the investigation was instituted before the grand jury it was the intention of Mr. W. B. Johnson, who was at that time United States attorney, to inquire into the facts concern- ing the failure of the bank of the Chickasaw Nation, located at Tisho- mingo, Ind. T., which had become insolvent. However, during the progress of the investigation before the grand jury, evidence was pro- duced which tended to show that Mansfield, McMurray & Cornish, who were at that time attorneys for the Chickasaw Nation, and D. H. Johnston, governor of the Chickasaw Nation, and P. S. Mosely, for- merly governor of said nation, had conspired together to defraud said nation out of certain funds. The indictment against Mansfield, McMurray & Cornish et al. is predicated upon the testimony of Kichard McLish, fonnerly auditor of public accounts of the Chickasaw Nation; that of William T. Ward, formerly treasurer of the Chickasaw Nation, and that of D. TI. Johnston, governor of the Chickasaw Nation. If there was any addi- tional evidence before the grand jury against these defendants, it does not appear of record. The principal allegations in the proceedings against Mansfield, McMurray & Cornish are as follows: 1. That Mansfield, McMurray & Cornish conspired with D. H. Johnston, the governor of the Chicksaw Nation, and P. S. Mosely, formerly governor of the Chickasaw Nation, to have passed by the Chickasaw legislature acts authorizing the expenditure of money, which acts were not submitted to the President for his approval. 2. That Mansfield, McMurray & Cornish received payments for salary and expenses under these acts. 3. That certain warrants for salaries and expenses that were issued in favor of Mansfield, McMurray & Cornish were indorsed over to D. H. Johnston, the governor of the Chickasaw Nation, by the said Mansfield, McMurray & Cornish. 4. That Mansfield, INIcMurray & Cornish presented accounts for fees and expenses to the Chickasaw Nation, which accounts were ap- proved by the governor of said nation, when they were not entitled to such salary and expenses. I. It is alleged that Mansfield, McMurray & Cornish conspired with D. H. Johnston, governor of the Chickasaw Nation, and P. S. Mose- ley, formerly governer of the Chickasaw Nation, to have passed by the Chickasaw legislature certain acts authorizing the expenditure 20 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. of nioiiey. wliirh' act- were not subniitted to the President for his approvaL It does appear that acts authorizing the governor of the Chickasaw Nation to make expenditure of funds for the benefit of said nation \Yere passed by the Chickasaw legishiture and that certain of said acts were not submitted to or approved by the President. The first of these acts passed the house and senate of the Chickasaw legislature in September. 1899, and was approved by the governor of said nation on September '20, 1899. There is nothing in the records to show whether or not this act was submitted to the President for his approval. The act is as follows : AN ACT Approving the contract of Mansfield, McMurray and Cornish for legal services, and making appropriation therefor. Whereas on .July twentieth, eijihteeu and ninety-nine, Douglas H. .Johnston, .aovernor of the Chickasaw Nation, on the part of the Chickasaw Nation, en- tered into a contract with Mansfield. ^McMurray and Cornish, attorneys at law, to represent the Ciiickasaw Nation in all matters of citizenship now pending befoi-e the Dawes Commission, the Secretary of the Interior of the United States, and the I'nited States courts, to the final completion and approval of the rolls of the Chiekasaws; said contract to be subject to be annulled by the legislature of the Chickasaw Nation after two years from the date thereof; Whereas it is provided in said contract that the said Mansfield. McMurray and Cornish are to reeei\'e, as compensation for such legal services, the sum of live thousand dollars per annum, together with their actual and necessary ex- penses ini-uri'ed in the performance of such services, and such expenses to be rendered in duly verified accounts to the governor of the Chiclvasaw Nation, on the twentieth of each month, to be certified by him for payment, as provided by the terms of said contract; and Whereas in the trial of contested cases of those claiming Chickasaw citizen- ship before the Dawes Conunission and the Secretary of the Interior, and in certain proceedings now itending and to be instituted in the United States courts in connection with citizenship matters, it will be necessary to incur ex- penses in the way of witness fees, mileage, court costs, and so forth: Therefore, Be it enacted hij tin' Jcgislature of the Chickasaw Xation, Section ]. That the said contract entered into on July the twentieth, eighteen hundred and ninety-nine, between Douglas H. Johnston, governor of the Chick- asaw Nation, on the part of the Chickasaw Nation, and Mansfield, McMurray and Cornish, is hereby ratified and approved. Section 2. That an appropriation is hereby made therefor out of any funds belonging to the Chickasaw Nation not otherwise apjjropriated. and the auditor of public accounts of the Chickasaw Nation is directed to issue his warrants on the treasurer of the Chickasaw Nation for such salaries and expenses, includ- ing traveling expenses, clerical assistance, postage and stationery of attorneys, per diem and mileage of witnesses, court costs, and such other items of expense as may be incurred in the iierformance of such services, shall not exceed the sum of twenty-seven hundred dollars per annum. Section .3. Tliat this act shall take effect and be in force from and after its passage and approval by the President of the United States. Recommended by C. D. Carter. Passed the house this Sei>teniber 1!), l.sitO. Joe Newberry, Speaker of the House. Attest : J. W. Greenwood. Clerk of the House. Passed the senate thi.s September 20. 1899. Dave Seely, Attest: President of the Senate. J. W. Byrd. Secretary of the Senate. Approved September 20, 1899, D. H. Johnston, Oovernor Chickasaw Nation. INDICTMENTS FOUND AGAINST D. H, JOHNSTON ET AL. 21 It will be observed that this act approved a contract entered into by Douglas H. Johnston, the governor of the Chickasaw Nation, with Mansfield, MclSInrra}^ & Cornish, attorneys at law, to represent said nation in all matters of citizenship pending before the Dawes Com- mission, Secretary of the Interior, and the United States courts, and for the filial completion and approval of the rolls of the Chickasaws. Under the terms of said contract Mansfield, McMurray & Cornish were to receive as compensation for legal services the sum of $5,000 per annum, together with their actual and necessary expenses incurred in the performance of said services, with the further provision that the expenses incurred in this connection should not exceed the sum of $2,700 per annum. The second act, under which salary and expenses w^ere paid to Mansfield, McMurray & Cornish, passed the Chickasaw legislature on October 26, 1900, and was on the same day approved by D. H. John- ston, the governor of the Chickasaw Nation. There is nothing in the records to show that this act was submitted to the President for his approA^al. The act provides as follows: AN ACT To provide for regular and necessary expenses to protect the interest of tlie nation, and directing payment of the same out of the contingent fund of the governor. Whereas past experience has shown that regular and necessary expenses must be provided for protecting the interest of the nation in the various matters that arise from time to time, sucli as court costs, witness fees, and other expenses of litigation, traveling expenses, postage, stationery, and so forth : Therefore, Be it enacted iy the legislature of the Chickasaic Nation, the governor is authorized to incur such expenses, including the items above mentioned, and to pay the same out of his contingent fund, and an appropriation therefor in addi- tion to the amount now fixed by law is hereby made to be so used and expended, if in his judgment the same shall be necessary, and such expenses as shall be or have been incurred, under the direction of the governor, shall be rendered in itemized accounts, and upon his approval thereof the national auditor shall draw his warrant therefor and the national treasurer shall pay the same, and such account shall be retained by the governor as vouchers for such expendi- tures out of his contingent fund for the infoi-ination ^tf the legislature, and this act shall talce effect and be in force from after its passage and approval. Recommended by R. H. Colbert. Passed the house this October 26, 1000. Attest : T. W. Greenwood, Clerk of House. Passed the senate this October 26, 1900. Attest : Wyatt Chigley, Secretary of Senate. Approved this October 26, 1900. L. V. Colbert, Speaker of House. W. M. Guy, President of Senate. Attest : B. H. Colbert, National Secretary. D. H. .Johnston, Governor of the Chickasau: Nation. It will be observed from this act that the governor w^as authorized to incur expenses, including court costs, witness fees, and other ex- penses of litigation, traveling expenses, postage, stationery, etc., and 22 INDICTMENTS FOUND AGAINgT D. H. JOHNSTON ET AL. to i)ay the same out of his contingent fimd, and an appropriation was made^ therefor in addition to the amounts theretofore fixed by law, if in the judgment of the governor it should be necessary to make such expenditures. In the agreement of the Commission to the Five^ Civilized Tribes, with the Commission representing the Choctaw and Chickasaw In- dians, of April 23, 1897, which was ratified by Congress on June 28, 1898, will be found the following provision concerning the submission of the acts, ordinances, or resolutions passed by the council of either of said tribes to the President of the United States for his approval. The provision is as follows : It is fnrtlior agreed that no act, orflinauce, or resolution of the council of either the (Mioctaw or Ciiickasaw tril)es in any manner affecting the land of the tribe or of tlie individuals after allotment, or the moneys or other property of the tribe or citizens thereof (except appropriations for the regular and neces- sary expenses of the goAerument of the respective tribes), or the rights of any persons to employ any kind of labor, or the rights of any persons who have taken or may take the oath of allegiance to the United States, shall be of any validity until approved by the President of the United States. When such acts, ordinances, or resolutions passed by the comicil of either of said tribes shall be apjiroved by the governor thereof, then it shall be the duty of the national ser-retary of said tribe to forward tl-.em to the President of the United States, duly certified and sealed, who shall, within thirty days after their reception, approve or disapprove the same. Said acts, ordinances, or resolutions, when so approved, shall be published in at least two newspapers having a bona fide circulation in the tribe to be affected thereby : and when disapproved shall be returned to the tribe enacting the same. (30 Stat., 512.) It will be observed that in this provision certain acts, ordinances, and resolutions are not required to be submitted to the President. The exception reads as follows : " Except appropriations for the regular and necessarj^ expenses of the government of the respective tribes." It is claimed that the officials of the Chickasaw Nation did not deem it necessary to present the acts making appropriation for expenditures for legal services and other actual expenses to the Presi- dent for his approval, in view of the exception heretofore noted. As to wdiether or not acts of that character come within the purview of the exception is a question which the Government is now seeking to have determined through the institution of civil suits to recover the amount of expenditures made under acts of that character. The indictment charges that Mansfield, McMurray & Cornish, and Johnston and Moseley conspired to defraud the Chickasaw Nation by not submitting legislation of that character to the President for his approval, but I have been unable to discover any evidence to prove the allegation that these men conspired to prevent such legislation being submitted to the President for his approval and with a view to defrauding said nation. If such conspiracy existed there has been no evidence presented up to the present time to establish the conspiracy. II. It is alleged that Mansfield. ^Mc^rurray & Cornish received pay- ments for salary and expenses under acts of the Chickasaw legisla- ture which had not been submitted to the President for his approval. There is no question but that disbursements were made to Mans- field, McMurray & Cornish under acts of this character, and these defendants make no attempt to conceal this fact, but franklv admit it. INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 28. III. It is alleged that certain warrants for salaries and expenses that were issued in favor of Mansfield, McMurray & Cornish were in- dorsed over to D. H. Johnston, the governor of the Chickasaw Na- tion, by the said Mansfield, McMurray & Cornish. Upon completion of my investigation at Ardmore I proceeded to South McAlester and had an interview with Mr. Cornish, and asked him if he was willing to place at my disposal for examination their books and papers showing their transactions with the Chickasaw Na- tion. He replied that he would be glad to submit them for such pur- pose, and did place them before me for examination. With respect to the above allegation in the indictment, I found upon an examination of the books and papers of Mansfield, Mc- Murray & Cornish that warrants issued in their favor by the treas- urer of the Chickasaw Nation for salary and expenses had, in certain cases, been turned over to D. H. Johnston, the governor of the Chick- asaw Nation. Their books and papers show, however, that D. H. Johnston had, at various times, advanced to them out of his personal account funds to defray expenses in connection with matters arising involving the Chickasaw Nation, and that subsequently, when war- rants were issued to Mansfield, McMurray & Cornish for fees and expenses, they indorsed the warrants over to Johnston to reimburse him for advances he had made to them. Mansfield, McMurray & Cornish have the checks and drafts which passed through the banks, showing that Johnston had advanced such funds to them, and the amounts and dates of those checks and drafts correspond to the amounts of the warrants which they indorsed over to Johnston when said warrants were issued by the treasurer of the Chickasaw Nation. Their books, checks, and drafts concerning these transactions cor- respond to the allegations in the indictment. I do not believe there is any question but that Mansfield, McMurray & Cornish at that time were short of funds, and that occasions were arising in connec- tion with matters involving the Chickasaw Nation which necessitated the immediate expenditure of money. In any event, the records do not show that Mansfield, McMurray & Cornish converted to their own use any funds paid to them by the Chickasaw Nation, except what they received as salary and fees. Their books show in detail their expenditures from the time of their appointment as counsel for the Chickasaws down to the present time, IV. It is alleged that Mansfield, McMurray & Cornish presented false and fraudulent accounts for salary ard expenses to the Chickasaw Nation, which accounts were approved by the governor of said nation. Their books, checks, and other papers show that they did render services and incur expenses in connection with the amounts alleged in the indictment as having been paid upon false and fraudulent accounts. I went over carefully their books relating to these expen- ditures. Of course, it was practically impossible for me to tell in each and every case whetlier the expenditure was reasonable, but in those cases where they had charged for railroad fare, hotel accom- 24 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. modations, stationery, etc., I considered the charges to be reasonable. There are hundreds of items of expenditures shown by their books, and from the vast amount of work done by this firm for the Chicka- saw Nation, T have every reason to believe that the legal services were rendered and that the expenses were incurred. In connection with certain expenses incurred by them and alleged in the indictment, Mr. Cornish frankly admitted, and their books show, that they did expend some money in connection with the elec- tion to ratify the agreement referred to in section 29 of the act of Congress of June 28, 1898 (30 Stat., 495) ; that they had in certain cases incurred expenses for special trains to convey voters from re- mote parts of the nation to the election, and that they did pay the expenses of these voters going to and from the election. It is a question whether or not this was a wise and judicious expenditure of money. But there is no evidence to prove, so far as I have been able to ascertain, that Ma^'Sfield. McMurray & Cornish converted any of the funds, which their books show as having been expended in that manner, to their own use or benefit. CONCLUSION. The district attorney, Mr. Walker, in his recommendation that the indictment be dismissed, dwells to a large extent upon the results obtained by Mansfield, McMurray & Cornish, while attorneys for the Chickasaw Nation. It certainly must be conceded that they did save millions of dollars for the Chickasaw Nation by the institution and prosecution of hundreds of cases for the purpose of dispossessing fraudulent claimants and in other matters, but in my investigation of the facts upon which the indictment is predicated I did not take this matter into consideration in any way, as it seems to me that the sole question to be determined at this time is whether or not these defend- ants conspired to defraud the Chickasaw Nation out of the funds alleged in the indictment, regardless of what they may have accom- plished for the nation. I have every reason to believe that if Mansfield. McMurray & Cornish would have been permitted to present their books and pajaers to the grand jury for the purpose of explaining their transactions with the Chickasaw Nation that bod}'^ would not have returned an in- dictmenl upon the evidence presented. It appears that McMurray was before the grand jury, although his testimony does not appear of record. It further appears that he requested Mr. W. B. Johnson, who Avas then district attorney, to withold the returning of the indict- ment until he could send to South McAlester for their books and papers. This was agreed to by Mr. Johnson, and Mr. McMurray at once called up Mr. Cornish over the long-distance 'phone and requested him to bi-iug all their books and papers relating to matters involving the Chickasaw Nation to Ardmore at once. This was on Saturday morning, and i\Ir. Cornish at once left for Ardmore. taking with him all their books, papers, etc., concerning the matters which the grand jury Avas investigating, and arrived at Ardmore at 12 o'clock that night. But it appears that the grand jury had returned the indict- ment at 4 o'clock in the afternoon. These men did not. therefore, haA^e an opportunity to present any documentary evidence before the grand jury to make a thorough explanation before that body. INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 25 There is another phase of this case to be kept in mind, and that is that W. B. Johnson, who was United States attorney at the time the indictment was returned, was. up to the time of the employment of Mansfiekl, MclMurray & Cornish, attorney for the ChickasaAv Nation at a sahiry of $8,000 per annum. As to whether or not that had any- thing to do Avith the finding of the indictment, without any oppor- tunity being given to the defendants to make a thorough explanation, which had been agreed to by the district attorney, I am unable to say, but all the circumstances tend to show that Johnson was not exceed- ingly anxious to give McMuray an opportunity to make a full and complete explanation before the grand jur3\ In view of all tlie evidence presented to the grand jury, the allega- tions in the indictment, and after a careful examination of the books and papers of Mansfield, McMurray & Cornish, I have reached the conclusion that the Government could not hope to be successful in prosecuting this case to a final determination. As to whether or not additional evidence could be obtained upon a trial of the case is a question which it is impossible to determine at this time, but with the evidence now at hand, and with no prospect of obtaining anything in addition thereto, I feel confident that the facts do not justify a fur- ther prosecution on this indictment, and I have the honor to recom- mend that the United States attorney be instructed to dismiss the proceedings. Very respectfully, The Attorney-(texeral, Washhigfon, D. C. W. S. Gregg. EXHJBIT E. ME]\rORAKDlTM FOR THE SliCRETARY OF THE INTERIOR. Some days ago I made a memorandum with reference to this sub- ject for Commissioner Leupp. I did not keep a copy of it, but as I recollect it I took the position that it was not a question as to whether these men could be convicted, but as to the duty of the Government in the premises, in view of the fact that they had been indicted and that the indictments ought not to be dismissed unless you and the Attorney-General were satisfied that the grand jury which indicted them was packed against them. The report of jNIr. Gregg is clear and seems to cover the case in its entirety, and it puts an entirely different phase thereon. It shows (1) that the circumstances under which the indictment was obtained were not, to say the least, in keeping with good criminal practice; (2) that the evidence introduced was not sufficient to warrant the grand jury in finding a true bill; (3) that the evidence that the Govern- ment now has is undoubtedly insufficient to justify a conviction if the indicted persons are tried: and (4), most important of all, that not one penny of the money supposed to have been misused reached the pockets of Mansfield. McMurray & Cornish. This being true, the in- dictment and charge of consjoirac}^ would fall from its own weight. You now have had the recommendation of United States Attor- ney Walker and that of Mr. Gregg, who it seems from his report gave 26 INDICTMENTS FOUND AGAINST D. H, JOHNSTON ET AL. the case, with all the evidence and everything relating thereto of which he could secure possession, a careful, painstaking, and thor- ough investigation, that the indictments be dismissed. I have care- fully analyzed Mr. Gregg's report, and, in view of what is said therein, I am firmly convinced that the indictments should now be dismissed, and I so recommend. G. A. ^7V. May 4, 1907. Exhibit F. St. Louis. June 2^. 1907. My Dear Mr. Bonaparte : In obedience to the instructions contained in your letter of May 9, I have carefully examined all the documents that have been forwarded to me from your Department and from the Department of the Interior. I find that in a good many instances I have been furnished duplicates; that some of the papers do not appear to refer to the immediate question presented, and that in other cases documents, while referring to the general inquiry, have no immediate bearing upon the decision which I am asked to make. Even so, a considerable volume remains for the careful examination, which I have endeavored to make. I find, among other things, that it has been the evident purpose of the prosecution to impress the authorities with the fact that the defendants have been guilty of different kinds of misconduct, and have in many ways taken advantage of the Indians: and that for these reasons the prosecution ought to be insisted upon. I find, also, that the defendants have endeavored to cast doubt upon the impar- tiality of the prosecution, claiming that the former district attorney had himself been guilty of conduct not unlike that which is now charged in the indictment; that he was ]:)rejudiced, and that some of* the members of the grand jury were likewise actuated by a feeling of resentment, to be attributed to litigation which the firm of Mans- field, McMurray & Cornish had instituted for the Indians against them. My first conclusion is, that while circumstances of this kind may ultimately be of value in determining the weight of e^ddence, they can not be conclusive in deciding whether or not the prosecution ought now to be proceeded with. I have therefore assumed that an answer to your inquiry calls for a decision, first, as to the sufficiency of the indictment; second, if the indictment is sufficient, then as to the sufficiency of the evidence to give it support. Proceeding with the questions in that order, I con- fess to some hesitancy in undertaking to answer the first one. My experience in the practice of the criminal- law is extremely limited, and I am therefore not really able to cope with the technical ques- tions which the form of the indictuient may present. I do feel at liberty, however, to say that the form of the indictment does not impress me favorably. It appears to be hastilj'^ drawn, charging both governors with conspiracy throughout, regardless of the terms for which they served. Beyond that, the indictment charges the collec- tion of Indian funds upon fictitious demands; but it does not set out INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 27 the offense with any degree of particularity. It appears in the main to rely upon the charge that the issuing of the warrants was im- proper, because the contracts under which the attorneys proceeded were made iii pursuance of acts that the President had not approved, and because the warrants were issued and paid upon insufficiently itemized accounts. Without undertaking at this time to finally pass upon this feature of the case, I will say that it does not inspire me with confidence. This brings me to the second question, in which I believe you to be more especially interested, certainly so far as my participation in its settlement may go. Does the evidence upon which the prosecution may expect to rely support the indictment, or, indeed, can it support any offense which the prosecution may have sought to present by the indictment ? Upon this point the chief contention seems again to be that the several acts of the Chickasaw Nation under which the two contracts with Mansfield, McMurray & Cornish were made were not submitted to the President for his approval and were therefore without validity. The conclusion appears to be drawn that if the acts lacked validity then an}^ payment made under contracts entered into in pursuance of these acts or either of them constitutes a crime. I can not follow this argument. To begin with, it is a very close question whether or not these acts should have been submitted to the President for his ap- proval. It is apparent that there is a conflict of opinion upon that branch of the case. Competent representatives of the Department of Justice seems to incline to the opinion that these acts did not come within the provision of the agreement of June 28, 1898. I incline to the view that the employment of counsel and the in- curring of ordinary expense in litigation for the protection of the ordinary interests of the nation might well be held to fall within the exception to the provision of the agreement. This being so. I can not believe that a prosecution for crime can be successfully based upon a mistaken but honest interpretation of this agreement. Of course we are all familiar with the general rule that everyone is presumed to know the law. But we also know that to convict of crime the intent nuist be found. In this case the charge is conspiracy, and once admitted that the interpretation of the treaty upon which the defendants acted can be honestly entertained I fail to see how a con- spiracy can be predicated upon the bare fact of the failure to sub- mit the acts for the President's approval. This conclusion, it ap- pears to me, is sustained by the further circumstance that no secret was made of these transactions. These acts were public in the Chick- asaw Nation, the contracts were public, the expense accounts were public, open to the inspection of any one interested: and, indeed, it appears that the entire situation was called to the attention of representatives of the Department of the Interior as early as 1902, that copies of expense accounts reached the Department from time to time, and that, therefore, impliedly, at least, the officials of the Department in control of this Indian tribe and its interests were ad- vised of and consented to the manner in which this business was con- ducted. It is true one of the witnesses before the grand jury testified that the question, wliether or not the acts of the Chickasaw Nation in question should be submitted to the President for his approval, was 28 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. the subject of discussion between him and Chief Johnson, and that the chief was opposed to such submission. But the same witness indicates that the act was finally forwarded by him with the knowl- edge of the chief and apparently with his consent. The attorneys are not referred to one way or the other. I do not believe that such conduct can substantiate a charge of conspiracy. Nor do I think that the case is materially strengthened by the fact that after the Presi- dent's disapproval (to which the same w^itness testifies, but as to which nothing fu.rther is found in the record) the chief proceeded under the act upon the theory that the President's approval was unnecessary. After all this only brings us back to the first proposi- tion. There is nothing in this branch of the case to sustain the charge of a conspiracy to collect moneys from the Chickasaw Nation upon fictitious claims, or, indeed, to justify the conclusion that the belief that the President's approval was unnecessary was not honestly entertained. It is further contended that the defendants should be prosecuted because,^ the moneys named in the indictment were collected upon insufficiently itemized statements. I can not believe that a charge of conspirac}' can be maintained upon such slender grounds. It is true these statements should have been itemized, and it may be true that this was insufficientlj^ done in these cases. AYhat is proper itemizing and what is a bill of particulars has been the subject of considerable doubt. But it seems to me that where a party submits a statement in which he refers to the cases which he has had in hand, and gives the totals of his expenditures in connection with those cases, and such a statement is allowed and paid without objection, it can not be possi- ble to sustain a charge of conspiracy' upon this conduct alone, without more. My conclusion, therefore, is that the mere fact that the pro- visions of the acts which require or contemplate the itemizing of statements have not been strictly complied with can not in itself fur- nish sufficient ground for prosecution in this case. This brings me to what I regard to be the real merit of the inquiry. Were the expenses for which Mansfield, McMurray & Cornish pre- sented bills actually incurred, or did the attornej-s present fictitious bills, and. if so, did they do it Avith the knowledge and consent of the several governors of the Chickasaw Nation; and maj^ the charge of conspiracy be supported by such a state of facts? I confess that this branch of the inquirj^ has given me some trouble ; probably more than it seems to have caused officials who have been asked to investigate. This may be explained bj^ the fact that these officials have had the opportunity to inspect the books and the ac- counts, and have been in a position in other ways to satisfy themselves as to some features that do not appear to be well explained by the documents placed at my disposal. I can not say that the amounts in- volved have impressed me as necessarily large. Of course, I do not refer to the $750,000 fee, the contract for which and the Congressional legislation in connection with which evidently have no innnediate bearing upon this case. Neither do I refer to the other fees allowed under the two contracts which are in question, because, if it be true that acting under the contract in the absence of the President's ap- proval does not in itself furnish sufficient ground for an indictment, then these fees were, for the purposes of this inquiry, properly al- lowed and paid. INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 29 The question of the amounts collected, therefore, arises only as to the expenditures and costs outside of fees; and when we take the total amount paid out by the nation on this account, and distribute it over the number of years covered by the employment, I confess the amounts do not impress me as being necessarily large. The affairs of the Chickasaw Nation were then undergoing changes that made the incurring of large and varied expenditures inevitable. To that extent I agree with the conclusion reached by the other inquiries ; assuming, of course, as I do, and as the testimony furnished seems to show, that the expenditures charges for covered court costs, witnesses' fees, even constables' fees, traveling expenses, etc. Assuming, however, that on their face these allowances for ex- penses, etc., do not seem large, my difficulty is not necessarily over- come. I see that the amount of $2,700 allowed for expenses under the first contract was collected in full for each year. On the face of the statement it looks as though the attorneys had assumed the right to receive this amount whether it was actually expended or not. Clearlj', if the expenditures do not reach that amount the attorneys were not entitled to collect it ; and the rightful collection must there- fore rest upon the assumption that the expenditures exceeded, or at least reached, the sum to wliich the first act limited those expend- itures. I have nothing before me to satisfy myself upon that point, unless I am to accept the result of other investigations upon this point, as well as the absence of damaging testimony before the grand jury. I am impressed, of course, with the fact that Mr. Gregg, espe- cially, in his carefully prepared report, specifically states that he has examined the books and the accounts of expciditure and that they tally with the amounts charged. Assuming this to be correct, and that the books theniseives are correct, as I am not in a position to say from my own investigation, my difficulty in this respect would be disposed of. In like manner I may accept the explanation of the warrants for expenses turned over direct to Governor Johnson. A similar difficulty, although less calculated to arouse question, arises as to the expenses paid under the second contract. Itemizing here was also unsatisfactory. While the failure to itemize properly is not itself a crime, it is, of course, possible that insufficient itemiz- ing was a cloak for a crime. Again, Mr. Gregg has examined the books and accounts and reports that they tally. To repeat, if I am to accept his conclusion as to the correctness of the charges, the quep tion is, in my opinion, answered. As the result of my own inquiry, I can not answer for this conclusion. But, after all, no one can know of his own knowledge. My inquiry, like Mr. Gregg's, would be con- fined to a comparison of the books and the accounts, and to an inves- tigation into the probability that the moneys were actually and prop- erly expended. Presumably, I would reach the same conclusion. Another difficulty grows out o:" the fact that in one of the many statements filed in connection with the case (among others in Mr. Gregg's report), it is made to appear that the attorneys charged the nation for moneys which they had paid out to cover expenses of members of the nation in attending the election to ratify the treaty of 1898. I am not familiar with the law or practice upon this sub- ject. Inasmuch as little importance seems to have been attributed to this statement, I am disposed to think that perhaps it was customary to have the nation pay the traveling expenses of voters. Without 30 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. a satisfactorv exjilanation, I would not be willing, however, to assume that such an expenditure was properly made by the attorneys, and, if made, was proj^erly chargeable to the nation's treasury. To repeat, I have no explanation for this item which to me seems satisfactory. I have not thought it necessary to await such explana- tion because, if this expenditure was wrong, the offense, if any, has undoubtedly been barred. This is the one item brought to my atten- tion which, on its face, would appear to sustain the charge of con- spiracy named in the indictment. It is fair, however, to say that I have not pursued the inquiry, and do not, therefore, make the accusa- tion, because the offense, if there was one, would be barred, and be- cause no such item is included in the indictment itself. The earliest item in the indictment is November, 1902, and the election in question was held, as I read it, in December, 1898. I have referred to this particular matter, therefore, not because it is of decisive importance, but because of its possible bearing upon the nature of the immediate charge and the propriety of further prosecution. I have dwelt upon the circumstances of this case with as much detail as, in my judgment, they will bear. My conclusion, therefore, is that if I am to accept the results of the inquiries into facts already made, or if I am to rely upon the evidence produced before the grand jury alone, then the indictment can not be sustained, and upon that assumption I should have no hesitancy in recommending that it be nolle prossed. The district attorney in charge of this prosecution is upon the ground, where he can make every possible investigation of the facts, and has come to the conclusion that the prosecution is hope- less. That recommendation is joined in by a special representative of the Department sent to the particular locality to make his own inquiry, and who makes what appears to be a very careful report. These recommendations have served to change the attitude of the Interior Department. Under such conditions I can find no justifica- tion, with the facts as so far presented to me, to insist upon a prosecu- tion which would put defendants to a needless and costly trial and would involve the employment of special counsel and would neces- sarily incur very heavy expense to the nation. If, on the other hand, I am not free to act upon Mr. Gregg's find- ings of facts, or if tliere is promise of supplementing the evidence before the grand jury, then a further inquiry may, of course, disclose irregularities in the accounts and books of the attorneys which so far have not been made to appear. It can not be denied that the running of three employments with the nation at one and the same time, the fact that the attorneys appear to have practically financed the affairs of the nation, and that the accounts rendered do not on their face furnish the needed information is calculated to arouse such an inquiry. Upon the whole, therefore, my conclusion is this : In so far as the indictment relies upon the bald circumstances that the acts of the Chickasaw Nation were not approved by the President, or that the expense accounts rendered by the attorneys were not properly itemized, the indictment can not, in my opinion, be sustained. If I am to pass upon the remaining questions of fact in the light of the documents before me — that is, the testimony before the grand jury and Mr. Gregg's conclusions — then I also recommend the dis- missal of the indictment. If, however, I am to conclude upon the facts in dispute after an independent inquiry, I, of course, am not INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 31 now prepared to state it. To do that I would have to visit the Terri- tory, or have persons in possession of facts come here. If, in other respects, I have left untouclied or have unsatisfactorily disposed of any feature of this case, I shall, of course, hold myself ready to comply with such instructions as you may see proper to give me. In the meantime I venture to express my surprise that no civil proceedings have been instituted to recover for the Chickasaw Nation the money of which, as it is contended, they have been wrongfully deprived. It seems to me such a proceeding might serve the double purpose of recovering the funds and developing the truth of this prolonged controversy. Respectfully submitted. Charles Nagel. Hon. Charles J. Bonaparte, Department of Justice^ Washington, D. C. Exhibit G. Department of the Interior, Washington^ September 4, 1907. Sir : I have the honor to transmit herewith letter from the Acting Commissioner of Indian Affairs, dated July 27, 1907, approved by me, reporting upon your communication dated June 29, 1907, trans- mitting a copy of a letter from Charles Nagel, St. Louis, Mo., dated June 24, 1907, in regard to indictments against Mansfield, McMurray & Cornish and others for conspiracy to defraud the Chickasaw Nation. I concur in the recommendation that the indictments referred to be dismissed, and that suits be instituted against the parties indicted for the moneys alleged to have been wrongfully received, if, in your judgment, such suits can be successfully maintained. The Department will be pleased to have the original papers re- ferred to by Mr. Nagel returned for its files when they shall have served the purpose for which they were transmitted. Very respectfully, G. W. Woodruff, Acting Secretary. The Attorney-General. Exhibit H. Department of the Interior, Office of Indian Affairs, Washington, July 27, 1907. Sir: The office is in receipt of departmental letter of July 22, 1907, transmitting for consideration and early report a copy of a let- ter from the Attorney-General dated June 29, 1907, inclosing a copy of a letter from Charles Nagel, dated St. Louis, Mo., June 24, 1907, in regard to indictments against Mansfield, McMurray & Cornish 32 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. and others for conspiracy to defraud the Chickasaw Nation. Mr. Nagel seems to full}^ cover the subject and reaches the conchision that the indictments should be dismissed. He does not think there is sufficient evidence to justify the Government in prosecuting the persons who have been indicted, and from his letter it seems that he doubts whether there was sufficient evidence before the grand jury on which to found the indictments. United States Attorney Walker and Mr. Gregg, of the Department of Justice, have heretofore recommended that the indictments be di^ missed. Their letters are not before the Office, but from what the Office is able to recall of what was said by them, and in view of Mr. Nagel's recommendation, it is believed that no good purpose would be served b}^ bringing to trial Mansfield, McMurray & Cornish and the others indicted with them, and it is therefore recommended that the Department of Justice be requested to instruct the proper United States attorney to dismiss the indictments. You call the attention of the Office to the last paragraph of Mr. Nagel's letter, in which he expresses surprise that civil proceedings have not been instituted to recover the Chickasaw Nation moneys alleged to have been wrongfully used by Mansfield, McMurray & Cornish and others. The Office understands that Mr. Nagel has ref- erence to certain moneys expended in accordance with the provisions of certain acts of the legislature of the Chickasaw Nation, which acts were not submitted to the President for approval, and which prob- ably were invalid without his approval. There are now pending in the Choctaw Nation two or three suits involving this question, and it does not seem that it would be necessary to begin suit on behalf of the Chickasaw Nation until the Choctaw suits are disposed of and the question determined. However, the Office sees no objection to the institution of suits on behalf of the Chickasaw Nation pending the determination of the Choctaw cases, and if such action is taken and the court holds that the acts involved in the Choctaw suits did not require the approval of the President, the Chickasaw suits can then be dismissed and but little expense will have been incurred. The papers received with your letter are returned. Very respectfully, C. F. Larrabee, Acting Gommissioner. The Secretary of the Interior, July 30, 1907. Approved : G. W. Woodruff, Acting Secretary. I INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 33 ♦ Exhibit I. United States oe America, Indian Territory, Southern District, ss: In the United States court for the southern district of the Indian lerritory, sitting at Ardmore, for the May term, 1905. Indictment for conspiracy. United States V. T>. H. Johnston, P. S. Mosely, George Mansfield, J. F. McMur- ray, and Melvin Cornish, de- fendants. The grand jurors of the United States of America, duly selected, summoned empaneled, sworn, and charged to inquire within and for !i u ^.?^ *^'^ southern district of the Indian Territory, in the name ^^1 ^ the authority of the United States of America, upon their oaths do find present and charge that one D. H. Johnston, one P. S Mosely one George Mansfield, one J. F. McMurray, and one Melvin ^Zl ' f ^""^^nno ^"^ ■^]^- ^'^^''^ J^^^y unknown, on the 2d day of No- vember A. D 1902, withm the southern district of the Indian Ter- ritory, did unlawfully and feloniously commit the crime of conspir- Spk-T^^at''.?^^'''^ ^^^^^'^^ ^^^ United States by defrauding the Chickasaw Nation, committed as follows : That during all the times herein mentioned the said P. S. Moselv was governor of the Chickasaw Nation except from September, 1904, when the said D H. Johnston was governor of the Chickasaw Nation and during all of these times the said George Mansfield, J. F McMur- ray, and Melvin Cornish were each citizens of the United States and not members of any Indian tribe or nation and were associated to- lrlM™;I"c;?ni^"™'^-^ ^"'^^ ^^" ^^^"^ ""'^^ ^'^^'^ ^' ^-^fi^l^' That the said Chickasaw Nation was at all times herein mentioned composed of the Chickasaw tribe of Indians and duly authorized and recognized by the laws of the United States as political dependencv ^nd government, under the name of the Chickasaw Nation, having a governor, audi or public accounts, national treasurer, and legislature: Jiat to the said Chickasaw Nation there belonged in the Treasury of ^he United States large sums of money known as trust and invested ^unds coal and aspha turn royalty funds, and funds derived from the i5ale of lots m town sites. That at the time and place aforesaid and at all times herein men- ^oned the said D H Johnston, P. S. Mosely, George Mansfield, J. F. ^cMurray and Melvm Cornish, and others to the grand jury un- mown, did falsely feloniously, unlawfully, and wickedly ion^pire, ,ombine, confederate, and agree together among themselves to de- n thp t" ^ '^'I'll! Nation out of large and divers sums of money Nation ^""^^ belonging to the said Chickasaw nr^ufL^ pursuance to and to effect the object of said conspiracy, ombmation, confederacy, and agreement said P. S. Mosely, as gov- S. Doc. 398, 60-1 3 34 INDICTMENTS FOUND AG^UNST D. H. JOHNSTON ET AL. ernor of the Chickasaw Nation, caused the auditor public accounts, without authority of hiw. to issue at divers times certain warrants u]>on the national treasurer of the Chickasaw Nation, payable to the said Mansfield, McMurray & Cornish, at such times and in amounts as follows : No. 801 802 803 804 805 806 807 943 944 945 Date. November 2, 1902.. November 26, 1902. November 8, 190-2-_ November 12, 1902. do do do April, 16, 1903. do do Amount. $2,700.00 2,500.00 2,500.00 1,000.00 2,50.00 100. OO 515.00 396.05 1,628.75 365.75 No. 1476 1477 1478 1479 1480 1485 2235 2237 Date. February 3, 1904. do do do do do July 28, 1904 do Total Amount. $2,000.00 l.-SSS.OO 1,667.00 1,641.95 1,000.00 2,700.00 3,879.45 2,700.00 28,876.90 That in pursuance to and to effect the object of said conspiracy, combination, confederacy, and agreement said D. H. Johnston, on th^ 14th day of February, 1905, within the district- and Territory aforesaid, Avithout authority of laAv, caused the auditor of public ac- counts to issue a certain warrant upon the national treasurer of the Chickasaw Nation, payable to the said ^Mansfield, McMurray & Cor- nish, No. 112, for the sum of $2,500. That each of said warrants hereinbefore named were issued upon a false, fictitious, and pretended claim that the amounts therein named were for actual expenses of the said Mansfield, McMurray & Cornish while engaged as attorneys for the Chickasaw Nation. That in pursuance of and to effect the object of said conspiracy, combination, confederacy, and agreement said D. H. Johnston, P. S. Mosely, George Mansfield, J. F. McMurray, and Melvin Cornish, and each of them, did present said false and fraudulent warrants, well knowing they were false and fraudulent, to the national treasurer of the Chickasaw Nation, and caused the same to be paid by the said national treasurer out of the trust funds of the said Chickasaw Nation then in the subtreasury of the United States at St. Louis, Mo.; that at the time such moneys were paid said D. H. Johnston, P. S. Mosely, George Mansfield, J. F. McMurray, and Melvin Cornish, and each of them, w^ell knew that they Avere not lawfully entitled to said money, and well knew that said items of expenses were fictitious and fraudu- lent, and well knew that no itemized statement of expenses, as required by law, was ever presented, allowed, or approved, and well knew that said money was obtained without consideration or without any au- thority of law, but falsely, fraudulently, feloniously, unlawfully, and wickedly did then and thereby contrive and intend to cheat and de- fraud the Chickasaw Nation out of said moneys, to wit, the sum of $31,376.1)0; and did then and thereby cheat and defraud the said Chickasaw Nation out of the moneys aforesaid ; and did embezzle and convert to their own use the aforesaid moneys, contrary to the form of the statute in such case made and provided and against the peace and dignity of the United States of America. (Signed) W. B. Johnson, United States Attorney. INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 85 Exhibit J. Department of Justice, July SI, 1905. Dbak Mr. Attorney-General : I received to-day your letter of the 28th instant, with inclosiires from Mr. Cecil A. Lyon, of Sherman, Tex., and after considering- the subject in question sent Mr. Lyon the following telegram: Am directed to have your Indian Territory matter inquired into by competent person. Think it would be well to present case to me here, at least preliminarily, provided I am satisfactory person. Frank answer by wire will not prejudice your friends. At the time the indictments were found against Mansfield, Mc- Murray & Cornish, Marshal Colbert, and others Colonel Mosby was at Ardmore, Ind. T., with authority to go before the grand jury. He was not concerned with the ^lansfield matter, but with the question of fraudulently reissued Chickasaw warrants. He heard the testi- mony of one of the members of the Mansfield firm, however, and came back with a strong impression that they were guilty. He showed me since a letter from the district attorney, Mr. Johnson, expressing the same opinion. Colonel Mosby knows little about the matter, and I attach no great importance to his impression, while Johnson is said by the Mansfield firm to be unfriendh', for reasons stated in Mr. Lyon's communications, whicli you saw. I should like you to know in a general way something about this matter at this time. The firm of attorneys, acting for the Choctaw and Chickasaw nations, obtained legislation establishing the Choctaw and Chickasaw citizenship court to review decisions of Judge Town- send, in whose court the indictments have been found, and other regular judges of the Indian Territory, which decisions admitted to the rolls of tribal citizenship two or three thousand persons, who would have shared in the land allotments. The citizenship court has decided against most of them, and that has resulted in saving to the tribes lands said to be worth as much as $15,000,000. The firm had contract Avith the Indians for 9 per cent of what they should save, which percentage would have amounted to considerably over a million dollars. This contract the Secretary of the Interior refused to approve, proposing to allow a fee of $250,000. which the firm refused. They went to Congress and had the question of a rea- sonable fee submitted bv law to the citizenship court, which allowed them $750,000. An injunction proceeding against Secretaries Hitchcock and Shaw- was begun last winter to prevent payment of this fee, the bill charging; all kinds of frauds, etc. I represented the two Secretaries. Secretary Hitchcock was disposed to believe the charges of fraud and, at all events, took and still takes a very unfavorable view of the firm. The bill was dismissed. It has been suggested, and seems to be believed by some people, that the firm bought its way through Congress in the matter of the fee legislation, and naturally the attorneys of the citizenship claimants Avho were defeated by the eilorts of the firm and those claimants themselves are not overfriendly toward the firm. And some small people are doubtless envious about the big fee. 36 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. Of course an indictment having been found, what is now asked of the President is a very serious thing, and may give rise to much criti-. cism if he should decide to have the inplictment dismissed and action taken other than the trial of the case by the court and jury. I shall therefore endeavor to be very careful before advising such action. Very truly, yours, Charles AV. Russell. Hon. W. H. Moody, Attorney-General. Boston, Mass. Exhibit K. Department of Justice, Washington, September' 29, 1905. Mr. Attorney-General : I duly received from you a letter dated July 28 last, inclosing a communication from Mr. C. A. Lyon, trans- mitted to you by the President, concerning an indictment of Mans- field, McMurray & Cornish, Governor Johnston, of the Chickasaw Nation, and others for conspiracy and embezzlement of Chickasaw funds. Your letter stated that the President was anxious to have the matter investigated and directed me to have a competent person make the investigation. I answered on July 31 last (copy hereto attached). As I told you in my answer. I wired Mr. Lyon on that da}^ as follows : Am directed to liave'yovu" Indiaii Territory matter inquired into by competent person. Think it would be well to present case to me here at least prelimi- narily, provided I am satisfactory person. Frank answer by wire will not prejudice your friends. I called Mr. Johnson, the district attorney, to Washington, and Mr. McMurray, of the firm of attorneys in question, was requested to come, and came. I had a long talk with Mr. Johnson, who had ex- pressed the opinion that the accused were guilty. Mr. McMurray had promised to bring his books and papers, but did not do so, and after a brief conference asked for time to prepare. A few days ago I had Mr. Johnson, Mr. McMurray, and his part- ner, Mr. Cornish, before me, with all the evidence and documents, and had my assistant, Mr. Lawrence, present during the examination. As I wrote you : Of course, an indictment bavins been found, what is now asked of the Presi- dent is a serious thing, and may give rise to much criticism if he should decide to have the indictment dismissed and action taken other than the trial of the case by the court and jury. I shall therefore endeavor to be very careful before advising such action. I have been, accordingly, very careful and deliberate, and have nevertheless reached the conclusion that the prosecution should be dismissed or nolled. The indictment of Governor Johnston, Governor Mosely, of the Chickasaw Nation, and members of the law firm goes upon the theory that these persons conspired together to obtain some of the funds of the Chickasaws by warrants drawn upon the Treasurer and issued by direction of the governor, based upon pretended expenses of liti- INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL, 87 gation incurred by the firm on behalf of the nation, and that they embezzled the funds so obtained, and that no such expenses had been incurred and that no accounts such as required by the Chickasaw law and a contract with the firm had been presented by the firm. Sufficient facts were produced to show an apparent case, but it needed only an explanation and the production of some documen- tary evidence to make it fall to pieces. It was shown that one of the warrants had been made out payable to Governor Johnston him- self, and from this fact it was evidently inferred that this was a part of his share of the spoil. And much Avas made of the fact that the Chickasaw law under which most of the expenses were incurred had not been approved by the President; but it was believed to belong to a class of laws providing for the " regular and necessary expenses of the Government," which did not require the President's approval. This is probably correct, but if not correct, this is a point about which lawyers would naturally differ. I have not thought it my duty to decide this matter \ipon such technicalities, but have sought to ascertain whether the expenses were really incurred in good faith for the benefit of the nation or, on the other hand, the moneys were embezzled in pursuance of a criminal conspiracj^ It is established before me beyond any doubt that the former is true and that the indictment has done a great injustice to the per- sons indicted, four of whom, including Governor Johnston, were earnestly, intelligently, and successfully striving for the welfare of the Chickasaw Nation. I therefore recommend not only the dismissal of the prosecution, but the giving out of something like the following : The Department of Justice, by direction of the President, has carefullj'^ investigated the matter of the indictment of Governor Johnston, Governor Mosly, of the Chickasaw Nation, and Mans- field, McMurray & Cornish, attorneys for the nation, for a criminal conspiracy to obtain and embezzle the nation's funds under the false pretense of settling accounts for expenses of litigation on its behalf, and has reached the conclusion that the indictment has done a grave injustice to Governor Johnston and the attorneys. It will be remem- bered that these attorneys received a very large fee last winter out of the funds of the tribe for successfully conducting litigation to take from the citizenship roll several thousand persons who had been wrongfully admitted to citizenship and hence to share in allotment of land, and that a certain former officer of the tribe brought suit against the Secretary of the Interior, the Secretary of the Treasury, and Treasurer to prevent the payment of this fee. At that time prac- tically the same charge was brought against the attorneys, and the complainant then was one of those who appeared before the grand jury recently. Of course the contest over the right to enrollment of citizens and the consequent right to receive allotment engendered much bitterness against these attorneys, which was increased by their successful struggle to enforce the tribal taxes against merchants and others. The Department of Justice and the Interior Department have been in touch with them for a number of years and knew that they were actively and busily at work to further the interests of the Indians and uphold the hands of the Secretary of the Interior in 38 INDICTMENTS POUND AGAINST D. H. JOHNSTON ET AL. protecting them. The indictment, therefore, came as a great sur- prise. Respectfully, Charles W. Russell, Special Assistant Attorney-General. Exhibit L. Office of United States Attorney, Southern District of Indian Territory, Ardmore, Ind. T., October 20, 1905. Sir: I am in receipt of a letter from Assistant Attorney- General Russell, dated October 14, 1905, inclosing his report to you " on the indictment of Mansfield, McMurray & Cornish and Governor John- ston," for conspiracy, with instructions to make such comment thereon as I might desire. It is useless for me to say that a request for me to comment on a report of a superior officer carries with it such embarrassment that I prefer to recite the facts, though lengthy, and let you judge whether my conclusion was correct that these defendants under the evidence before the grand jury which is yet to my mind unexplained, should have been indicted and subjected to a trial as other defendants; or that of Mr. Russell, who recommends not only a dismissal of the case, but that an apology be offered by the Department of Justice for the injustice done these defendants, and Mr. Ward, who is not one of the defendants in this indictment, but a witness against defendants. On May 20, 1905, Mr. Jenkins, representing the Interior Depart- ment, called at my office and submitted a statement of facts about the fraudulent recirculation of Chickasaw-school warrants by various parties, including our marshal, and Mr. Ward, deputy clerk, and re- quested that the matter be submitted to the grand jury, then in ses- sion at Ardmore. I was personally engaged in the court room in the trial of cases, and had two of my assistants at Pauls Valley attending the court there. I therefore requested Mr. Jenkins to wait until I could communicate with you, which T did, requesting that some special officer be detailed to look after this matter. You immediately wired me to give the matter my personal attention, and sent Col. John S. Mosby to be present and assist in the investigation. The grand jury was composed of men perhaps unexcelled in intelligence and integiTty anywhere. (I inclose a list of their names and occupations.) Many of these jurors personally knew Mr. ISIcMurray, and some had been his friends for more than twenty years. The investigation began, involving not these defendants, but others. On the second day appeared on the scene ma'\v of the defendants, in- cluding Ward, Colbert. Johnston, and McMurray, none of whom lived here, who began demanding of the grand jury that they be per- mitted to come in and testify. Although it is an unusual thing to permit defendants to appear before a grand jury, I felt that a thorough investigation should be made, and the grand jury not only let them appear but Mr. Ward sent in two or three other witnesses. Mr. McMurray was. for some unknown reason to me, not permitted to come before the grand jury until the last day, and then his ex- INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 3V> planations were so unsatisfactory they injured instead of helped his case. During the investigation of others, as I have stated, evidence incriminating Governor Johnston, ex-Governor Mosely, and Mans- field, McMurray & Cornish developed. This they seemed to know almost as soon as I did, and they at once be^an to exercise every influ- ence within their power to prevent an indictment. I have since learned that they had friends in Washington interceding at that time so strenuously that Colonel Mosby received a telegram from the De- partment to " see that Mansfield, McMurray & Cornish had a square deal." I will confine myself to the evidence against Mansfield, McMurray & Cornish, Governor Johnston, and ex-Governor Mosely — ^Ward being in another and different indictment, and not having the slightest connection with them. In August, 1898, D. H. Johnston was elected governor of the Chickasaw Nation for a period of two years. In September, 1899, the following act was passed by the Chickasaw legislature and approved y the President: AN ACT Approving the contract of Mansfield, McMurray and Cornish for legal services, and making appropriations therefor. Whereas on July twentieth, eighteeu hundred and ninety -nine, 'Pouglas H. John- ston, governor of the Chickasaw Nation, entered into a contract witli Mansfield, McMtirray and Cornish, attorneys at law, to represent the Chickasaw Nation in all matters of citizenship now pending before the Dawes Connuission, the Secre- tary of the Interior of the United States, and the United States courts, to the final completion and approval of the rolls of Chickasaws, said contract to be subject to be annulled by the legislature of the Chickasaw Nation after two years from the date thereof; and Whereas it is provided in said contract that the said Mansfield, McMurray arid Cornish are to receive as a compensation for such legal services, the sura of five thousand dollars per annum, together with their actual and necessary expenses incurred in the performance of such services, such expenses to be rendered in duly verified accounts to the goxernor of the Chickasaw Nation on the twentieth day of each montli, to be certified by him for payment, as pro- vided by the terms of said contract; and Whereas in the trial of the contested cases of those claiming Chickasaw citizenship, before the Dawes Commission and the Secretai'y of the Interior, and in certain proceedings now pending and to be instituted in the United States courts in connection with citizenship matters, it will be necessary to incur expenses in the way of witness fees, mileage, court costs, and so forth ; Therefore Be it enacted by the legislature of the Chk-kasair Nation, Section 1. That the said contract entered into on July twentieth, eighteen hun- dred and ninety-nine, between Douglas H. .Johnston, governor of the Chickasaw Nation, on the part of the Chickasaw Nation, and Mansfield, McMurray and Cor- nish, is hereby ratified and approved. Sec. 2. That an appropriation is hereby made therefor out of any funds belong- ing to the Chickasaw Nation not otherwise appropriated, and the auditor of pub- lic accounts of the Chickasaw Nation is hereby directed to issue his warrant on the treasurer of the Chickasaw Nation for such salary and expenses, and the treasurer is directed to pay the same out of any funds of the Chickasaw Nation in his hands or that may come into his hands not otherwise appropriated ; Pro- vided, That said expenses, including traveling expenses, clerical assistance, post- age, and stationery of attorneys, per diem and mileage of witnesses, court costs, and such other items of expense as may be incurred in the performance of such services, shall not exceed the sum of twenty-seven hundred dollars per annum. Sec. 3. That this act shall take effect and be in force from and after its pas- sage and approval by the President of the United States. During the year 1900 every citizenship case pending in the courts of this district was disposed of, a majority of them having been dis- posed of before their employment, and the citizenship court did not 40 INDICTMENTS FOUND AGAINST D, H. JOHNSTON ET AL, begin work until about January 1, 1903, on a rehearing of these cases. On October 26, 1900, the legislature passed an act as follows: AN ACT To provide for regular and necessary expenses to protect the interest of the nation, and directing payment of the same out of the contingent fund of the governor. Whereas past experience has shown that regular and necessary expenses must be iirovided for protecting the interests of the nation in the various mat- ters that arise from time to time, suc]i as court costs, witness fees, and other expenses of litigation, traveling expenses, postage, stationery, and so forth : Therefore Be it enacted by the legislature of the Chickasaw Nation, The governor is authorized to incur such expenses, including the items above mentioned, and to pay the same out of his contingent fund, and an appropriation therefor, in ad- dition to the amount now fixed according to law, is hereby made, to be used and expended, if in his judgment the same shall ho necessary and such expenses as shall be or have been incurred, under the direction of the governor, shall be rendered in itemized accounts, and upon his approval thereof the national audi- tor shall draw his warrant therefor, and the national treasurer shall pay the same ; and such accounts shall be retained by the governors as vouchers for such expenditures out of the contingent fund, for the information of the legislature; and this act shall take effect and be in force from and after its passage and approval. These two acts just mentioned were the sole authorit}'^ for the em- ployment of this firm of attorneys and the expenditure of the moneys hereinafter mentioned from 1899 until this time. In 1899 an act was passed authorizing the governor to employ J. R. Burton as general attorney for two years. In 1901 an act was passed authorizing the governor to employ Z. T. Burton for two years as attorney. In the same year an act was passed to pay William Murray $800 for services rendered as attorney. I mention these facts to show that whenever the Chickasaws em- ployed an attorney it was onlj^ for two years at a time, and this has been their custom for the past fifty years. In August, 1900, Governor Johnston was reelected for a period of two years. It was claimed by Mr. McMurray that Governor John- ston employed them as general attorneys also, and promised to see that they were paid a salary not to exceed $5,000. He did not Imow whether this contract was oral or in writing nor for how long it was to run. Mr. Cornish, who was not present when the statement was made, subsequently stated that they were not employed for any stated amount, but could charge for services rendered, no maximum or min- imum being fixed; that the contract was oral, and no time fixed for expiration of same. Mr. McMurray further stated that during this time he made another agreement with Governor Johnston by which he was to endeavor to get Congress to pass an act authorizing a per capita payment of $240,000, this being a fund known as the "incom- petent fund, held in trust by the United States for incompetents. For this service, his firm, in the event of success, was to receive $15,000, only $2,500 of which has yet been paid'. He further stated that for the expenses incurred before the citizenship court they were to present monthly accounts, with vouchers, to the Secretary 'of the Interior for approval and receive payment ; that they now held more than $40,000 of this expense account which has not been presented for approval or payment, although the citizenship court ceased to exist last December. Mr. Cornish stated that the Chickasaws also owed them about $28,000, Avhich they had personally paid out. INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 41 I don't think I am mistaken about these statements. If I am cor- rect, then the Chickasaw government is still indebted to them as follows: $12,500, $40,000, $28,000; total, $80,500. I presume the $40,000 item will be shared jointly by the Choctaw and Chickasaw nations. I submit a statement showing the amounts received by them from the Chickasaw Nation: For the year : 1900 $13, 000. 00 1901 20, 971. 35 1902 22, 671. 11 1903 10, 652. 78 1904 26, 921. 40 Total 94, 216. 64 The acts of 1899 and 1900, copied in full, are the only laws author- izing the governor and these attorneys to do anything or draw any moneys. In addition to the above, Mr. McMurray stated that in a hot con- test in an election to ratify or defeat the supplemental treaty they hired people to go around and make speeches, give barbecues, etc., and this afterwards was paid out of the Chickasaw funds. I cite these several facts to show the extravagant and illegal use of funds by the governor and these attorneys, and I have only related a few of them. Under the indictment I can introduce any evidence tend- ing to show a conspiracy to embezzle the funds of the Chicaksaws. I submit now a sample copy of the way their accounts were item- ized, as provided for by the two acts above set out, all of the others being similar, the originals of which I have : EXPENSE ACCOUNT OF MANSFIELD. M'MUBRAY & CORNISH — GENERAL CONTINGENT. [From April 19, 1902, to October 18, 1902.] Account of expenses incurred by Mansfield, McMurray & Cornish under the direction of the governor of the Chickasaw Nation, under the act of the legisla- ture of the Chickasaw Nation approved October 26, 1900, in protecting the Interests of the nation : Traveling and other incidental expenses, court costs in all suits pend- ing in the United States courts and elsewhere afi:'ecting the rights and interests of the Chickasaws, except such expenses as are pay- able out of the funds provided for payment of expenses before the Dawes Commission and the Interior Department in citizenship matters, clerical assistance and other expenses in copying records of the United States court for the central and southern districts of the Indian Territory and of the Dawes Commission for use be- fore the Choctaw and Chickasaw citizenship court, expenses of members of firm at Washington and elsewhere, and expenses in connection with negotiation and ratification of supplementary agreement and all other usual and necessary expenses incurred $6, 865. 00 The above amount is correct as stated. Mansfield, McMurray & Cornish. EXPENSE ACCOUNT OF MANSFIELD, M MURRAY & CORNISH. In protecting the interests of the nation in all matters that have arisen, other than citizenship, from October 1, 1903. to July 25, 1904, under the act of the leg- islature of the Chickasaw Nation, approved October 26. 1900. 42 INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET Ali. In the various suits and proceedings arising in and pending before tlie United States courts in Indian Territory, involving tribal timber, taxes, and lands sought to be condemned by railway companies for rights of way, station grounds, water stations, and other railway purposes; in various matters pending before the Commission to the Five Civilized Tribes, the United States Indian agent, the United States Indian inspector, the Commissioner of Indian Af- fairs, the Secretary of the Interior, and the Congress of the United States, involving the rights and interests of the Chickasaws; in expenses of members of firm and assistants to and from Washing- ton in connection with these and other matters ; clerical assistance, traveling expenses, postage, stationery, telegraph and telephone expenses, and all other miscellaneous expenses chargeable under said act $3, 879. 45 The above account Is correct. Mansfield, McMurray & Coenish. SALARY ACCOUNT OF MANSFIELD, il MURRAY & CORNISH. As citizenship attorneys of the Chickasaw Nation, under the act of the legisla- ture of the Chickasaw Nation approved September 20, 1899; July 20, 1904. To amount due as citizenship attorneys, at the rate of $5,000 per annum, from January 20, 1904, to July 20, 1904 $2, 500. 00 I now submit a copy of one statement of work performed as general attorneys, amount charged, etc., to show that they were either em- ployed at a salary of $5,000 per annum without authority of law or, if the charges were made for services performed, then I can prove that a great deal of the services charged for were never rendered at all : EXPENSE ACCOUNT OF MANSFIELD, M'MURRAY & CORNISH GENERAL CONTINGENT. [From October 18, 1902, to March 30, 1903.] Account of expenses incurred by Mansfield, MclNIurray & Cornish, under the direction of th(^ governor of the Chickasaw Nation, under the provisions of the act of the legislature of the Chickasaw Nation approved October 26, 1900, in protecting the interests of the Chickasaw Nation, as follows : Traveling expenses, court costs, and other usual and necessary expenses In suits and proceedings disposed of and pending in the United States courts in the Indian Territory and elsewhere, as follows : City of Ardmore v. Choctaw and Chickasaw nations, and city of South McAlester v. Choctaw and Chickasaw nations to condemn lands of the tribes for waterworks ; United States v. Choctaw and Chickasaw nations, in Ardmore court, and The United States v. Choctaw and Chickasaw nations in South McAlester court, to con- demn town lots for use as sites for United States jails ; incorpo- rated town of Spiro v. Choctaw and Chickasaw nations, in Poteau court to condemn lands for waterworks ; Thompson v. Morgan, in court of appeals at South McAlester, upon appeal from the United States court at Pauls Valley ; Choctaw and Chickasaw nations v. McKenna and Page, in court of appeals, at South McAlester, in- volving the validity of the act of Congress authorizing the con- demnation of lands of the Choctaws and Chicasaws, without com- pensation for turnpikes and toll bridges; Choctaw and Chickasaw nations v. Fort Smith and Western Railway Company, in United States court at South McAlester, to compel such company to make adequate compensation for right of way ; Kansas City Southern Railway Company v. St. Louis and San Francisco Railway Com- pany and the Choctaw and Chickasaw nations, in Poteau court, to INDICTMENTS FOUND AGAINST D. H. JOHNSTON ET AL. 43 (xmdeinn lands for reservoirs at Potean ; expenses incurred in making settlement with the Enid and Anadarko Railway Company for right of way ; Chicago, Rock Island and Pacific Railway Com- pany for station grounds at Chickasha, Duncan, and other points ; St. Louis and San Francisco Railway ('ompayv for station grounds at Francis, Ada, Ruff. Skullen, Mill Creek, Randoli)h, ' Madill, Helen, and Platter ; St. Louis, San Francisco and New Orleans Railway Company for station grounds at Hugo, Dnrant, Madill, and Ardmore : Missouri. Kansas and Texa,s Railway Company for lauds for reservoir at Colgate; Gulf, Colorado and Santa Fe Rail- way Company for lands for station grounds and reservoirs at Purcell, Wynuewood, Marietta, and Bob ; Choctaw, Oklahoma and Gulf Railroad Company for lands for reservoirs at Haileyville and Wapanucka, and for station grounds at Calvin, Krebs, Haileyville, Herbert, Carlo, and Milburn ; Choctaw, Oklahoma and Gulf Rail- road Company for right of way of Haileyville and Ardmore branch; Missouri, Kansas and Texas Railway Company for right of way for Colgate and Oklahoma City line; expenses incurred by George A. Mansfield, J. i\ McMurray, and Melven Cornish, to and from, and at, Washington, in connection with the matter of the per capita payment for $40 per capita to the Chickasaws, enforce- " ment of the laws of the United States regulating trade and inter- coui'se with tlie Indian tribes, under the act of the legislature of the Chickasaw Nation, providing that the tribal taxes of the Chick- asaw Nation shall be collected under the direction of the Secretary of the Interior and other matters before the Department of the Interior and the Congress of the United States, affecting the inter- ests of the Chickasaw Nation; and expenses incurred for clericiil assistance in office and other places, postage, stationerv. telegraph. and telephone bills $2, 388. 55 The above account is correct as stated. Melven Cornish. Your attention is directed to the first four items of this account, all of which were agreed upon before condemnation suits were brought, the same being only to perfect title with no contest. United States r. Choctaw and Chickasaw Xations was to condemn a town lot for jail site. The Choctaw and Chickasaw nations were joined as defendants to remove any possible cloud to title; appear- ance was entered by letter, after said defendants had been paid in full, to the Indian agent, as required by law. In many instances the condemnation of lands for railroads were settled in the same way, the suits being brought as friendly ones to remove any possible cloud to title. Your attention is invited to that portion of the account which says, " Expenses of George A. Mansfield, J. F. McMurray, and Melvin Cornish to and from and at Washington, in connection with the matter of the per capita payment of $40," etc. This item is for expenses in- curred in connection with incompetent fund, above referred to, and where they were to receive an unauthorized fee of $15,000. Mr. Rus- sell heard them state that they were only to receive expenses in event of failure to secure the legislation. It is useless to go further into details. This account was approved by Moseley, who became governor in August. 1!)02, for two years, when Johnston was again elected. The evidence shows' that these attorneys, and whoever happened to be governor, had the entire unlimited control of the finances of the Chickasaw Nation from October, 1900, and expended money on any pretext for any purpose they saw fit. Mr. Ward, who had been treasurer, testified that he had turned over to Governor Johnston 44 INDICTMENTS FOUND AGAINST D. H, JOHNSTON ET AL. about thirty-five or forty checks that slioiiid have gone to Mansfield, McMiirray"& Cornish. Before 1900 there Avas never a woid of suspicion against the offi- cials of the Chickasaw Nation. Tlieir revenues about covered their expenses; but although their revenues were increased -in many ways, including coal royalties, even their expenses for operating their schools had not been paid until Congi-ess last winter appropriated something over $800,000 to pay oH' tliis indebtedness. That there has been an extravagant misuse of funds there can hardh^ be any question. When I was called to Washington in August I was kept there about nine days, as it later appeared, waiting for the return of Mr. McMur- ray, who had gone for his books and other evidence to make explana- tions of the charges in the indictment. He came with Mr. Mansfield, but brought nothing, claiming to Mr. Russell that their books were kept under the supervision of Mr. Cornish, who was then in Colorado. It was then agreed that they would return in September with Mr. Cornish and the books. They came, but brought no books, stating then that they nerer kept any books at all. Not the slightest mem- oranda was ever exhibited in my presence to explain anything. What Mr. Russell saw and heard to cause him to report '' sufficient facts were produced to show an apparent case, but it needed only an expla- nation and the production of some documentary evidence to make it fall to pieces " I can not srj. The defendants did tell their story, but nothing was shown to support their statement that I saw. I would be pleased to see such documents, because my hope has alwa3^s been, for many reasons, that they could explain these matters away. Again, Mr. Russell says : It was shown that one of the warrants had heen made out payable to Gov- ernor Johnston himself, and from this fact it was evidently inferred that this was a part of the spoils. Mr. Russell had access to, and stated he read, the evidence taken before the grand jury. He must know Governor Johnston denied drawing a $2,700 warrant which, if due anyone, should have gone to Mansfield, McMurray & Cornish. On the next day after Mr. Ward had testified he came before the grand jury and admitted he got the warrant, and exj^lained that he drew it so as to have monej^ on hand when the attorneys needed it. In Washington, for the first time, these attorneys stated that was a mistake that the governor took the war- rant, because he had already advanced them money out of his own funds. Mr. Ward, the treasurer, testified : I think the warrant was issned. and Mansfield, McMniray & (^Ornish indorseP^<^. ^ a"? DOEES BROS. ^ •> LIBRAnV BINDINCS ^^ A^ * ST. AUGUSTINE