Trader post scandal

, Secretary of War from 1869 to 1876 A native of New York, and Iowa attorney, William W. Belknap entered the American Civil War in 1861 fighting for the Union. Tradership monopolies established At the beginning of the war, Union soldiers began purchasing supplies from private vendors known as "sutlers". These traderships controlled by Sec. Belknap became lucrative monopolies and were considered profitable investments during the 1870s. Violence on the Western frontier decreased starting in 1870 and lasting until 1875. The money Indians used to purchase weapons came from federal appropriations to keep Indians pacified. This policy caught the ire of Col. George Custer, stationed at Fort Lincoln, who discovered most of the actual profits from the traderships were going to investors rather than the licensed sutlers. Belknap supplied soldiers with defective breechloading rifles that jammed after the third round. This discrepancy in military weapons between hostile Indians and the U.S. military was considered by one historian to be a significant factor in the defeat of the U.S. Military at the Battle of the Little Big Horn in 1876. Having filled out and submitted an application on August 16, Sec. Belknap's War Department awarded Marsh a tradership at Fort Sill in the Oklahoma Territory. An illicit financial arrangement, approved by Belknap, was made where Evans would keep the tradership and give Marsh quarterly payments amounting to $12,000 per year. Marsh then split this profit in half; giving $6,000 per year to Sec. Belknap's wife Carita in quarterly payments. Evans would keep the remaining profits from the Fort Sill tradership. Carita came from a wealthy Kentucky family and was used to living in opulence. It is believed that the kickback payments were intended to support this lavish lifestyle. However, Carita lived to receive only one payment. She died in December 1870 from tuberculosis, one month after giving birth to her child. After Carita's death, Sec. Belknap and Carita's sister, Amanda Tomlinson Bower, who had previously moved in with Carita and Belknap, personally continued to take quarterly profit payments from Marsh. Belknap eventually married Amanda in December 1873 and she became known as the "Queen" among cabinet member wives. Caleb Marsh was the husband of one of Amanda's closest friends. Amanda had, just as her sister Carita, enjoyed an opulent lifestyle that cost a considerable amount of money during the Gilded Age. Belknap's $8,000 yearly salary was unable to support his third wife's lavish spending habits. When suspicious people asked Belknap how he could afford such a high standard of living on his salary, Belknap stated that Amanda, a wealthy widow, had received money from her deceased husband's estate. In total, Sec. Belknap received more than $20,000 in payments derived from the Fort Sill tradership. According to Congressional testimony, Belknap received money from other trading posts, as well. ==House investigation==

''' National attention was drawn to the plight of American Indians in 1874 when paleontologist Othniel Marsh revealed that the Lakota Sioux had "frayed blankets, rotten beef and concrete-hard flour." Secretary of Interior Columbus Delano, responsible for Indian Bureau policy, resigned from office in 1875. Clymer's committee did not have far to look for corruption, and information was soon gathered from witness testimony that Belknap and his wives had received illicit payments from the Fort Sill tradership contract. Apparently, Clymer, who was friends with Belknap, advised Belknap to resign office to keep him from going to prison. Belknap then withdrew from further testimony, and his attorney Blair proposed Congress drop charges against his client if Belknap resigned. The Clymer committee, however, was in no mood for compromise and declined. Weeping, the burly Belknap prostrated himself before Grant and confessed to the kickback scheme, blaming his two wives. Belknap begged the President to accept his resignation. Custer testimony ''' Clymer continued his investigation into Belkamp's War Department, having called upon Col. George A. Custer, stationed at Fort Lincoln, who testified in Washington, D.C., on March 29 and April 4. Custer was rumored to have anonymously aided the New York Herald in their investigation into Indian Traderpost rings, Custer believed that the $13,000 difference went to partners in the tradership, or to Belknap himself. Grant was offended by the mention of Orvil Grant's name in that context. Custer also testified that Col. William B. Hazen had been sent to a remote post, Fort Buford, as punishment for Hazen having exposed Belknap's traderpost rings in 1872. This angered Philip Sheridan, who wrote to the War Department and contradicted Custer's claims, including concerning Hazen's reputed banishment. ==Response of President Grant==

Grant's acceptance of Belknap's resignation on March 2, 1876, caused considerable commotion in the U.S. House of Representatives since the House was ready to vote on Belknap's impeachment on the same day. Grant had Attorney General Pierrepont launch an investigation into Belknap; however, no charges were made by the Justice Department against Belknap. Grant's refusal to see Custer was designed to humiliate the Colonel. When Custer left to return to Fort Lincoln, Grant had Custer arrested in Chicago, since Custer left Washington without visiting Grant or Sherman, a breach of military protocol. By Custer's own request, he was moved to Fort Lincoln under arrest to serve out his detention from active service. The Eastern press was outraged by Grant's actions against Custer and stated Grant had punished Custer for his testimony at the Clymer Committee. Custer had also gotten the reluctant endorsement of Sheridan, who knew that Custer was a skilled military leader. Grant allowed Custer to join the expedition on the grounds that he would not take with him any pressmen. Custer bragged he would "swing clear" of Terry's command once on the Expedition. ==Senate trial and acquittal==

On March 3, 1876, a committee of five from the House of Representatives, headed by Clymer, presented Belknap's articles of impeachment to the Senate. Belknap's lengthy Senate trial, which took place in July, was very popular and the Senate gallery was filled with onlookers. Belknap was finally acquitted by the Senate on August 1, 1876. With 40 votes needed for conviction, 25 senators voted no on each of five counts, while the yes votes were 35, 36, 36, 36, and 37, thus acquitting Belknap by failing to reach the required two-thirds majority. Many of the Senators voting against conviction expressed the belief that a private citizen could not be impeached by the House or put on trial by the Senate. Grant's timely acceptance of Belknap's resignation had unquestionably saved Belknap from conviction. ==Aftermath==

After Belknap was acquitted by the Senate, he was indicted in Washington, D.C., District Courts. Grant replaced Belknap with the judicious and popularly received Alphonso Taft as Secretary of War. ==References==