Gould and Fisk were able to get Grant's brother in law Abel Rathbone Corbin involved with the scheme as a way to get access to Grant himself. Belknap had received kick back money from the profiteering scheme of post traders through the resale of food meant for Indians. Babcock invented the story to frustrate the prosecution. [1] Starting with the Black Friday gold speculation ring in 1869, corruption would be discovered during Grant's two presidential terms in seven federal departments, including the Navy, Justice, War, Treasury, Interior, State, and the Post Office. August 5, 1872. Another instance of a military-style command came over the McGarrahan Claims, a legal dispute over mining patents in California, when Grant overrode the official opinion from Attorney General Ebenezer R. One of the thieves then took the fake evidence to the house of Columbus Alexander, a citizen who was active in prosecuting the ring. In late August 1869 President Grant consulted with businessman, A. T. Stewart, Grant's initial Cabinet nominee, for Secretary of Treasury, concerning the Treasury selling gold. [43], After Babcock's indictment, Grant requested that Babcock go through a military trial rather than a public trial, but the grand jury denied his request. [25] In 1870, responding to extensive lobbying by Belknap, Congress had authorized the War Department to award private trading post contracts to military forts throughout the nation. Many of Grant's friends who knew him claimed that the President was "a truthful man" and it was "impossible for him to lie." President Grant would go on to win reelection the next day after a surge of support. By September 21 the price of gold had jumped from $37 to $141, and Gould and Fisk jointly owned $50 million to $60 million in gold. [44], The accusation angered Grant, who fired Henderson as special prosecutor. Grant finally realized what was going on and he was determined to stop the gold manipulation scheme. Also Fisk refused to pay off many of his investors who had bought gold on paper. Another scandal that occurred during Grant's presidency was the Whiskey Ring. On May 25, 1870, Boutwell had implemented reforms that reduced public cartage and government costs, stopped officer gratuities, and decreased port smuggling, but on July 2, 1872, U.S. Party Divisions of the House of Representatives. As the party grew nationally prominent persons joined including Charles Francis Adams, Jr., Senator Charles Sumner, and editor of the Missouri Democrat, William M. Grosvenor. The government had been known to hire private citizens and groups to collect taxes for the Internal Revenue Service. The deposition strategy worked and the Whiskey Ring prosecution never went after Grant again. [49] Native Americans would come into the forts and trade for food and clothing, generating huge profits (at the natives' expense). Interior Secretary Columbus Delano, discovered to have taken bribes for fraudulent land grants, was forced to resign from office on October 15, 1875. Babcock continued on in government and became Chief Light House Inspector. 2013/10/28 - Get the latest Scandal news and blogs from cast and crew, read the latest scoop, and more from ABC.com TV blogs More information President Grant - Scandal Grant was the first and, to date, only president ever to testify for a defendant. It was eight years of one thing after another. [44] McDonald and Joyce were convicted in the graft trials and sent to prison. As PBS tells us, President Ulysses S. Grant's claim to fame was taking command of the Union forces during the American Civil War, personally chosen by President Abraham Lincoln to defeat the Confederacy. [55][56], In a previous investigation that Charles Dana headed in 1872, Robeson had been suspected of awarding a $93,000 bonus to a building contractor in a "somewhat dangerous stretch of official authority" known as the Secor claims. According to McFeely the "evidence was irrefutable" against Babcock, and Grant knew this. It was the dawning of an age of big things for many of the characters, but one was noticeably missing. The Sun and other newspapers exposed the $5,000 bonus clause to the nation. Stevens, Walter Barlow; Bixby, William Kenny (1916). [54][55], On March 18, 1876, Admiral David D. Porter wrote a letter to William T. Sherman, "...Our cuttle fish [Robeson] of the navy although he may conceal his tracks for a while in the obscure atmosphere which surrounds him, will eventually be brought to bay...." Robeson later testified in front of a House Naval Committee on January 16, 1879, about giving contracts to private companies. Bunting argues that Grant should have pressed Belknap into an explanation for the abrupt resignation request. Although moving the supervisors most certainly would have disrupted the ring, Bristow conceded that he would need documentary evidence on the ring's inner workings to prosecute the perpetrators. Written as the general was dying, painfully, of throat cancer, the book was a best-seller. [38], The Whiskey Ring scandal even came to the steps of the White House. Melody Grant seemed like she had it all. Grant called for swift punishment but caused further scandal when he moved to protect his personal secretray who had been implicated in the affair. Later elected President ⦠because if you can run a country and other newspapers exposed agents. Not favor federal military intervention in Southern Affairs or protecting blacks, and did! 1874 revealed that many government employees were pocketing Whiskey taxes on January 6, 1872 his. 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