Trader post scandal

The trader post scandal, that took place during Reconstruction, involved Secretary of War William W. Belknap and his wives, who received kickback payments derived from a Fort Sill tradership contract between Caleb P. Marsh and sutler John S. Evans. In 1870, Belknap lobbied Congress, and on July 15 of that year was granted the sole power to appoint and license sutlers with ownership rights to highly lucrative "traderships" at U.S. military forts on the Western frontier. The power to appoint traderships by the Commanding General of the Army, at that time William T. Sherman, was repealed. Having been granted the sole power to appoint traderships, Belknap further empowered those traderships with a virtual monopoly. Soldiers stationed at forts with Belknap-appointed sutlers could only buy supplies through the authorized tradership. These monopoly traderships were considered to be excellent investments and were highly prized. Soldiers on the Western frontier, who were thus forced to buy supplies at higher than market prices, were left destitute as a result.

In 1870, Belknap's second wife, Carita, successfully lobbied her husband to appoint a New York contractor (Caleb P. Marsh) to the trader post at Fort Sill, located in the Indian Territory. John S. Evans, however, had already been appointed to that position. To settle the question of ownership, regarding the tradership, an illicit partnership contract, authorized by Belknap, was drawn. The contract allowed Evans to keep the tradership at Fort Sill, provided he paid $12,000 of the annual profits to Marsh. Evans would be allowed to keep the remaining profits. Marsh, in turn, was required to split half of his receipts from the contract, $6,000 per year, with Carita. However, Carita only lived to receive one payment. In 1870, she died from tuberculosis, shortly after giving birth. After Carita's death, Marsh continued to pay Belknap Carita's share of the profits, for the benefit of her child. Although the child died in 1871, Belknap continued to accept quarterly kickback payments from Marsh. When Sec. Belknap subsequently remarried, to Carita's sister Amanda, both Belknap and Amanda continued to accept the quarterly payments from Marsh.

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