enable the council to begin a system of policy for the future that will develop the resources and protect the interests of the citizens of San Francisco. Whatever expenses may be contemplated, or improvements made, it is strongly recommended that the town be kept perfectly free of debt. Since my arrival here, I have received three petitions from the citizens, through the hands of a committee, for the removal of Geo. Hyde, esq., from his office of alcalde of the town. The committee, Messrs. Ward, Brannan, and Ross, also handed me distinct charges, signed by themselves, and herewith handed to you, against Mr. H., of a serious nature, that demand investigation. This is due to Mr. Hyde himself, and to the citizens of the town. I have selected you, gentlemen, to perform this duty of making a thorough investigation of these charges, and to report to me the facts of the case, with your opinion thereon. You have just been chosen by the people of this town to regulate their public affairs and to guard their interests. To whom, then, could I so well confide this duty? You must feel the importance of scrutinizing the charges against the chief magistrate of our town; but, while the interests of the community require an examination, the respect due to his office demands that Mr. Hyde be allowed every privilege and facility to explain any facts, or produce any testimony, that his case may call for. You are hereby authorized to call upon Mr. Hyde for a full exhibition of his accounts and general administration of the affairs of the town since they have been under his direction, that you may examine and report thereon. Relying upon your intégrity and patriotism, I am, gentlemen, your most obedient servant, R. B. MASON, Colonel 1st Dragoons, Governor of California. To the TOWN COUNCIL ELECT HEADQUARTERS TENTH MILITARY DEPARTMENT, Monterey, October 6, 1847. SIR: Governor Mason directs me to acknowledge the receipt of your resignation of the office of captain of the California battalion of mounted riflemen, and to inform you that that battalion was discharged by Lieutenant Colonel Fremont about the 27th of April last, and that of necessity your commission ceased with the existence of the battalion. The battalion was likewise discharged in a manner not in accordance with the laws of the United States, and cannot receive pay until further action is had by the government. He regrets, therefore, that he cannot at this time order you to be paid; but assures you he fully appreciates your services and friendship, to which Commodore Stockton bears such high testimony. I am, sir, very respectfully, your obedient servant, W. T. SHERMAN, First Lieutenant 3d Artillery, A. A. A. General. Don SANTIAGO E. ARQUILLO, of San Diego, California. HEADQUARTERS TENTH MILITARY DEPARTMENT, Monterey, California, October 9, 1847. SIR: I have the honor herewith to enclose to you the papers relating to a certain contract entered into on the 3d day of March, 1847, by Lieutenant Colonel Fremont, mounted riflemen, with a Don Eulojio de Celis, a resident of Ciudad de los Angeles, California, but professing to be a subject of the Queen of Spain. The paper marked A is a copy of this contract, with Lieutenant Colonel Fremont's certificate, bearing date April 26, 1847, that the contract had been complied with on the part of Don Eulojio de Celis, and that he, Fremont, had executed to him in payment a note for the sum of six thousand nine hundred and seventyfive dollars. Lieutenant Colonel Fremont left California in the month of June, 1847, giving no notice to General Kearny or myself of the existence of such a contract, or that he had pledged the faith of his government for the redemption of it by the payment of the sum of $6,975, nor had I the least idea of this obligation until applied to by Colonel Stevenson, in his letter marked 1, whether I would recognise the contract and redeem the bond at maturity. This letter was accompanied by those marked A, B, C, D, E, and F, which show that in fact, notwithstanding the certificate of Lieutenant Colonel Fremont, Mr. Celis never delivered to the commissary of the California battalion one single head of beef cattle under this contract, and that not one of these six hundred cattle was slaughtered for the use of that battalion; but, on the contrary, that they have been delivered to a Mr. Stearns, of Los Angeles, in two parcels: one of four hundred and eighty-one on the first day of May, and another of one hundred and nineteen on the sixth day of July, 1847, both of which dates are subsequent to the discharge of the California battalion, commanded by Lieutenant Colonel J. C. Fremont. There is no doubt that these cattle are the same six hundred contracted for by Lieutenant Colonel Fremont on the 3d of March, 1847. Mr. Celis stated it positively in his letter marked D, and the receipts for them by Stearns, marked B and F, specially state that he (Stearns) receipts for them in the name and behalf of Lieutenant Colonel Fremont. These deliveries occurred at the time when a garrison was stationed in Los Angeles, with a commissioned agent of the commissary department of the army, Lieutenant Davidson, to take charge of any subsistence stores intended for public use; yet these cattle, furnished by a formal contract, are delivered to a private individual, upon a special agreement (as he, Stearns, says) to breed on shares for the term of three years. I have endeavored to procure from Mr. Stearns a copy of the agreement he has made with Lieutenant Colonel Fremont for taking care of these cattle; but his letters, marked 7 and 10, positively assert that he regards these cattle as the private property of Lieutenant Fremont, but that the agreement by which he holds them is a verbal one, witnessed by a Mr. Hensly, Midshipman Wilson, and Lieutenant Gillespie, United States navy. Midshipman Wilson has endorsed on the paper 10 that he knows nothing of it, and the other two gentlemen have gone to the United States in company with Commodore Stockton, and cannot be referred to by me. Thus stand the facts, and I am applied to to know whether payment will be made upon the paper marked 2, which is a certificate that the sum of $6,975 is due to Mr. Celis for supplies furnished the California battalion, which supplies are clearly and plainly the lot of six hundred breeding cows now in the hands of a private individual, not one of which has been used for public purposes. This note becomes due on the 18th day of December, 1847, and bears an interest of 24 per centum per annum after that date. In connexion with this subject, I call your attention to the paper marked 3, wherein Lieutenant Colonel Fremont has bound himself and future governors of California to pay the sum of two thousand five hundred dollars at the expiration of eight months from the date of March 3, 1847, or, in default thereof, that the note shall bear an interest of 24 per cent. per annum; this, too, when the acting assistant quartermaster at Monterey had been more than a month in the country, with a supply of money applicable to the proper expenses of the army in California. Mr. Celis states that it was partly to secure this loan of money that Lieutenant Colonel Fremont made with him the liberal bargain for cattle, for which the price is about 40 per cent. higher than the market price at the time. Both of these notes are soon due, and Mr. Celis is going to make application for payment, as he claims to have fulfilled his part of a contract, for the redemption of which the good faith of the government of the United States is pledged by an officer thereof; but the whole transaction, as shown by the accompanying papers, appears to me of such a character, that I shall not order payment of the money to Mr. Celis, but refer all the papers to the department for such action as they may consider proper in the case. I have the honor to be, your most obedient servant, General R. JONES, R. B. MASON, Colonel 1st Dragoons, commanding. Adjutant General, Washington. No. 1. HEADQUARTERS SOUTHERN MILITARY DISTRICT, CALIFORNIA, . COLONEL: On the 17th of June, Acting Assistant Quartermaster Davidson called on me with a resident of this place, named Celis, who had exhibited to him a contract made with Lieutenant Colonel Fremont for the delivery of 600 head of beef cattle, and inquired whether the government would recognise the contract, and pay the bond at maturity. The acting assistant quartermaster, deeming it proper to consult me, called with Mr. Celis, after exhibiting such papers on the subject as he had in his possession. I requested that he would furnish the quartermaster with copies, and give him all the information in his power as to the disposition that was made of the cattle, and, in short, every species of information, as well in relation to the cattle as to the causes that led to the original contract; and that the acting assistant quartermaster might act officially, I addressed him an official letter, requiring him to make all necessary inquiries and report the result to me. On the 6th I received from him the papers marked "A" and "B," together with a copy of my communication to him, "C." I have since obtained, and for ward with the others, the statement of Celis, (marked "D,") of all particulars connected with the contract, together with a copy of the note given by Lieutenant Colonel Fremont, (marked "E,") for $2,500, loaned him by Celis, to obtain which the contract for the cattle was undoubtedly made. This matter, in my judgment, clearly shows the whole transaction to have been unjustifiable and calculated to defraud the government, although such may not have been the intention of the government officer who made the contract. The whole is respectfully submitted for your adjudication. I have the honor to be, very respectfully, your obedient servant, Col. Com'g Southern Military District, California. N. B. Since writing the above I have received from Celis an additional receipt given him by Stearns, (marked "F,") for 119 head of cattle, making the delivery of the 600 complete on the 7th July; whereas the certificate of Colonel Fremont, that the contract is complied with, bears date 26th April, 1847. JULY 14, 1847. J. D. STEVENSON, Colonel. No. 2. The This is to certify that there is due from the United States to Don Eulojio de Celis the sum of six thousand nine hundred and seventyfive dollars, on account of supplies furnished by him for subsisting United States troops in service in this Territory and under my command. above sum for which this obligation is given shall be subject to an interest of two per centum per month, after the expiration of the term of eight months from the 18th day of April, 1847, until paid. J. C. FREMONT, Lieutenant Colonel United States Army. ANGELES, CALIFORNIA, April 26, 1847. I certify that the above is a true copy of the certificate held by Don Eulojio de Celis, at Monterey, California. W. G. SHERMAN, First Lieutenant 3d Artillery. AUGUST 26, 1847. No. 3. Eight months after date I, J. C. Fremont, governor of California, and thereby the legal agent of the government of the United States of North America, in consideration of the sum of two thousand five hundred dollars being loaned or advanced to me, for the benefit of the said government of the United States, by Eulojio de Celis, hereby promise and oblige myself, in my fiduciary character as governor aforesaid, and my successors in office, to pay to said Eulojio de Celis, his heirs, executors, administrators, and assigns, the aforesaid sum of two thousand five hundred dollars, without defalcation. It is agreed and understood that if the aforesaid sum of two thousand five hundred dollars is not paid on or before maturity, it is to draw interest at the rate of two per cent. per month from the time it falls due. In testimony whereof, I have hereunto set my hand and have caused the seal of the Territory to be affixed, at the City de los Angeles, the capital of California, this 3d day of March, in the year 1847. J. C. FREMONT, Governor of California. True copy of original: S. C. FOSTER. I certify that the foregoing is an accurate copy of the note or bond held by him, at Monterey, California, this 26th day of August, 1847. No. 4. W. G. SHERMAN, First Lieutenant, 3d Artillery. HEADQUARTERS SOUTHERN MILITARY DISTRICT, CALIFORNIA, COLONEL: Enclosed you will receive the translation of Celis's communication in relation to the contract with Lieutenant Colonel Fremont for beef cattle. I learn from Doctor Foster, the interpreter here, that in conversation with Celis, the day before he left here for Monterey, Celis stated that he should place the notes in the hands of some person at Monterey, to be presented at maturity to the successor of Governor Fremont, and, if they were not paid, have them protested and forwarded to the Spanish minister, at Washington, to be presented by him either at the War or Treasury offices for payment. Mr. Stearns is still at his ranche, some twenty-five miles from here. I shall write him immediately, and if there is no probability of his returning here in time to forward his answer to you by next mail, I will send some person down to deliver the letter and get his answer. 1 also enclose you the receipts for two ensigns, forwarded by the United States ship Lexington. I have the honor to be, very respectfully, your obedient servant, Colonel R. B. MASON, No. 5. HEADQUARTERS SOUTHERN MILITARY DISTRICT, CALIFORNIA, : COLONEL I have the honor to enclose you a copy of my note to Mr. Stearns, making the inquiry relative to the cattle he holds, as per receipts |