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102

There is reason to believe that this money was borrowed for the occasion, wt [strike] but whether this fact - if it be one - was know to Major Nicholls or not, I cannot say.

         I have ordered the Commdg. Officer at Fort Brown to make a full investigation into this question, see telegram, copy marked (10.).
         From the telegram received from the Assistant U. S. Treasurer at New Orleans - copy marked (12.) it will be seen that no twelve hundred Dollars was transferred to him by Lieut. Neely as he )Lt. N.) reported to be the case in his report of March 31.st. to Commanding General.
         From the examination of a copy of Lieut. Neely's report to the Chief Commissary of the Department for March 31. 1874, herewith enclosed, it will be found to differ materially from the one made to the Commissary General, and there are not means at these Headquarters of determining which is correct.
         The conduct of Major Nicholls, the Paymaster, in returning the $2000. 00 to Lieut. Neely, and receiving back his check for the amount, without the knowledge of the Commdg. Officer, Major Merriam, who had manifested anxiety to him, to know if this money had been turned over as ordered, has an unpleasant look and requires more explanation than Major Nicholls has seen fit to give.
         It is entirely possible that the only fault of Major Nicholls, was extreme and almost criminal neglect and indifference, and he may in his statement, which I have called for, be able to make a satisfactory explanation.
          I enclose copies of the orders, under which Acting Commissary's of Subsistence are required to turn over surplus funds to the Paymaster.  This plan was adopted to facilitate the getting of Currency to the Paymasters and the transfer of Surplus funds by Commissary's.
          Enclosed will be found two sets of charges against Lieut. Neely, with his resignation placed in the hands of Major Merriam, Commdg. Officer at Fort Brown, as explained in this letter, also a copy of a telegram from Lieut. Neely, asking delay  for explanation, which has never been received.
          I beg to state here that it is impossible for Department Commander or his Staff, to exercise supervision over the accounts of disbursing Officers in his Department that shall be of any value, unless the accounts of such Officers pass through his hands.
                                                             Very respectfully Your obdt servant

2234.2527.D.T.'74 (Sgd) C. C. Augur Enclosed herewith. Brigadier General U.S.A.

                                                                          Commanding

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