8th. The tobacco observed was rotten, and of little or no use 

 to the Indians. 



9th. In consequence of fraud and mismanagement, the Indians 

 suffered greatly during the past winter for want of food and 

 clothing. 



10th. The contract for freight from Cheyenne to Red Cloud 

 Agency was fraudulent, as the true distance is 145 miles, while 

 the contractor was paid for 212 miles. 



I would especially call your attention to the evidence ot fraud 

 in beef cattle, as presented in the accompanying statement. This 

 subject I investigated with much care, as beef is the principal 

 article of food of the Sioux Indians, and the frauds I observed 

 have caused great suffering among them, as well as great pecu- 

 niary loss to the Government. 



The statement I have prepared is supported in all its essential 

 parts by the testimony of officers of the Army, who were with me 

 on my expedition, or at the Red Cloud Agency. Among these 

 officers are several personally known to you, and all are gentle- 

 men of high character. Should any part of my statement be 

 seriously questioned, I trust you will allow these gentlemen to 

 be heard. If the commanding officers of all posts near Indian 

 Agencies, or other equally trustworthy and disinterested observ- 

 ers there, could likewise testify, I think it would be found that I 

 have but faintly indicated the corruption pervading Indian affairs. 



I have purposely confined myself in this statement to a single 

 agency, and mainly to the time of my visit, without reference to 

 much other testimony, which has come to me incidentally in the 

 prosecution of my inquiries, showing frauds of equal magnitude 

 at other points. This corruption, which is a constant source of 

 discontent and hostility among the Indians themselves, is, in my 

 judgment, a natural result of the present loose and irresponsible 

 system of furnishing the Indians with goods and supplies, a sys- 

 tem that tends directly to invite fraud. I do not believe that 

 anything but a radical change in this respect will prevent the 

 continued demoralization of the Indian Service. You alone have 



