It so happened that we of the Indian Peace Commission had been much indebted to this same trader, Ward, for advances of flour, sugar, and coffee, to provide for the Crow Indians, who had come down from their reservation on the Yellowstone to meet us in 1868, before our own supplies had been received.  For a time I could not-comprehend the nature of Mr. Campbell’s complaint, so I telegraphed to the department commander, General C. C. Augur, at Omaha, to know if any such occurrence had happened, and the reasons therefor.  I received a prompt answer that it was substantially true, and had been ordered by The Secretary of War.  It so happened that during General Grant’s command of the army Congress had given to the general of the army the appointment of “post-traders.”  He had naturally devolved it on the subordinate division and department commanders, but the legal power remained with the general of the army.  I went up to the Secretary of War, showed him the telegraphic correspondence, and pointed out the existing law in the Revised Statutes.  General Belknap was visibly taken aback, and explained that he had supposed the right of appointment rested with him, that Ward was an old rebel Democrat, etc.; whereas Ward had been in fact the sutler of Fort Laramie, a United States military post, throughout the civil war.  I told him that I should revoke his orders, and leave the matter where it belonged, to the local council of administration and commanding officers.  Ward was unanimously reelected and reinstated.  He remained the trader of the post until Congress repealed the law, and gave back the power of appointment to the Secretary of War, when of course he had to go.  But meantime he was able to make the necessary business arrangements which saved him and his partners the sacrifice which would have been necessary in the first instance.  I never had any knowledge whatever of General Belknap’s transactions with the traders at Fort Sill and Fort Lincoln which resulted in his downfall.  I have never sought to ascertain his motives for breaking with me, because he knew I had always befriended him while under my military command, and in securing him his office of Secretary of War.  I spoke frequently to President Grant of the growing tendency of his Secretary of War to usurp all the powers of the commanding general, which would surely result in driving me away.  He as frequently promised to bring us together to agree upon a just line of separation of our respective offices, but never did.

Determined to bring the matter to an issue, I wrote the following letter: 

HEADQUARTERS ARMY OF THE UNITED STATES,
WASHINGTON, D. C., August 17, 1870.

General W. W. BELKNAP, Secretary of War.

GENERAL:  I must urgently and respectfully invite your attention when at leisure to a matter of deep interest to future commanding generals of the army more than to myself, of the imperative necessity of fixing and clearly defining the limits of the powers and duties of the general of the army or of whomsoever may succeed to the place of commander-in-chief.