Floyd (above) getting recommendations. Floyd, although not, in the near future got Russell with his people on the Horse Express on it when you look at the a ties scandal you to definitely landed Russell in prison.

Then, he was faced with three matters away from choosing stolen possessions and a unique charge out of conspiring to help you defraud the us government. Despite his glory and his most other contacts toward authorities using post and advisor contracts, Russell is actually taken to Washington, D.C., and you can listed in jail, their bail lay at the $500,000. As for Bailey, his part on affair only introduced him a beneficial $5,000 bail. A network out-of members of the family and you can business partners across the country paid Russell’s bail just after it had been reset on $300,000.

Less than Analysis Just performed Russell face unlawful costs, our home out-of Representatives began a study from inside the January 1861, although Southern area says was basically beginning to secede in the Connection. A house Look for Committee kept hearings due to March, hearing the brand new bound testimony off 46 witnesses. Possibly this type of witnesses contradicted both. Russell affirmed inside the cover 4 times, addressing issues having switching frankness and you can misunderstandings, saying the guy didn’t remember dates or levels of profit concern. By the time this new committee completed its performs and awarded its statement, Assistant Floyd had abandoned his government blog post and you can fled across the Potomac so you’re able to Virginia, which would in the future secede towards Confederacy. New panel concluded that Floyd hadn’t merely connived illegally having Russell and acknowledged acceptances, but got done this along with other entrepreneurs, also. Chairman Buchanan was also slammed for having heard about Floyd’s strategies. Buchanan got advised your to prevent including points, however, hadn’t accompanied up on the problem. Secretary of your Indoor Jacob Thompson has also been highly slammed and you may is sensed guilty of overlook regarding your securities that had been taken. Bailey never endured to possess demo, dodging legal summonses till the Civil Combat turned into the federal government’s brand new interest. Their situation decided to go to criminal judge during the Washington inside late January 1861, adopting the their testimony

Russell looked to the fresh secretary out-of conflict, John B

until the Family Look for Panel. His attorney taken to legal a national law, simply 36 months dated, one exempted congressional panel witnesses regarding getting charged criminally based on their earlier testimony. New legal you are going to do-little but dismiss Russell’s situation. Regardless of if Russell’s go out for the courtroom turned-in their choose, the guy failed to come out of the latest scandal in the place of personal and you can economic losings. In the future, he previously no alternatives but in order to file for bankruptcy.

In terms of William Russell, he were able to slip through the courtroom system for the a beneficial technicality

The new Entrepreneurs An ironic spin close the brand new destiny off Russell, Majors & Waddell. Even while our house See Panel is holding hearings across the ties scandal, Congress is actually appointment to discuss post agreements into new year. Argument centered on those people supporting the main channel, because the Horse Express got currently proven the brand new route’s viability and you can the rates during the delivering this new post. The house out-of Agents chosen meant for subsidizing brand new central station, passage a costs to that particular feeling from inside the March. In the future, word reached Washington that Confederate pushes away Western had stop the fresh brud Thai new Butterfield Overland Mail’s stagecoach line, the newest channel from Southern area which had served once the a competition with the main channel. It development pushed Congress so you can assert that Butterfield Overland Mail end up being transformed to your central overland channel, if you find yourself meanwhile eliminating aggressive putting in a bid to own mail beginning along you to definitely line. Having John Butterfield and William Russell, the choice is actually an intolerable tablet. Only the previous 12 months, Butterfield ended up being pushed off his own organization to have a deep failing to expend business expense in order to the number one creditor, Wells, Fargo & Company. Because of the March 1861, Wells Fargo try operating the new Butterfield line. Import from Butterfield towards the main route perform put the line directly in battle into the COC and the Pony Express. In situations, and you will given the ongoing securities scandal, government entities would not beginning to consider Russell and his awesome associates