The New York herald., 1865-01-05
s rhe coars NE 4 ten A. n, Judge Mason
and proceeded wisA she rsbuttlpe testinony.

yesys. !. ,9iteAr In H8E vxAs agSan pd'dsfe 1os
I(syor:p between 1859 and 1851 my name was
suggested to the President as csnddate for Secretary
Of the Treasury; my was also suggested 70! tne
0Ss e VSScsSa o cOnseps SSr s sapoa 81 my Term
o. ocs asnayor have held no ocs ma Zee csoo Cd
Sse .ss s,ssss :ss 4 sY2 Fs s
the aaugurstiop Of the President IN March, lssl ant
there subsequently, several times 40 MOI remember
how Often nor now long "a na sO went ~ On
business connected with the financial affairs ofthe gov
ernpent with the Secretaries Of the Treasury and Navy
continued, with NJ Chase 50 LONG Is The re-
NAMED in !, Office; when ! visited Washington,
ans persons for spponten have no
recollection whether subsequently, w there, spoke
in favor q The sRRon.Ient Of any one iners were VERY
change of Administrations do not recoect any appoint
ents to be while Twas there; have had conside
rabe correspondence with the Secretary Of the Treasury
in regard financial matters, and saw him here frc-
quently; was very friendly terms with him. have no
distinct recollection Of having been 70 Washington 70 o.
factory destroyed by hre bad no personal superm
teudence Of the arinoy and directed MT Farley % make
correctly possible through the aid Of the book
keeper inventory of the losses O. Have you any such
inventory A, None other than the Claim presented
TO the government next conferred with Mr. Farley as
10 the proprety and the possibility OF making out the In
veatory Il Ans1y made out; an intermediate sug
gesen Of mine 70 Mr. Farley was to make oa. nas sSs ,Sa, a
Mr. Farley and myself after consultng with Mr. Kcene,
considered to be inpaccable have no recollection OF
ont tSat plan The ditcuty was lhe absence Of books
and papers and the mupicHy or articles in all stages
suggestion Of my mind TO show tho amount
OF pduAe ia the TRANSACTION had record OF the money
advanced and could estimate the liabilities on the con
tracts: this would have returned to tho entiro net
balance of liabilities and payments over the receipts
abandoned that plan because II would be an illegal
method OF presenting the claim, and the city would
with DrODrietv. settle upon tnal OASIS. tntNk
conferred h Mr.. Fasley upon that point; the CITY
authorities might have replied that they did not
whether we were making or losing money &C after
this was abandoned we We're considering how we could
proceed and had no definite axed plan until Mr Jones
s aT pnn eae% % be
ber remember that Jones' asked what my plans
but - % " 2. id
II; ne a mau had no confidence IN: the advances
do not oil appear upon the cash hook there were some
ten dollars which tho did not eSer
upon The cash book should have gone into the book
Il part Of the purchase from Mars,on remember at
Mr. opee suggested the method Of changing tile contract
price lcss the cost Of flashing; Cannot give h.s Ian
guase; do not know what interest he lad 10
the making out O. the claim ad not ASK Mr gone: me,
The claim; IL struck me as just and proper method,
Which would embrace the profits 80 far az We hal easncd
not until the claim was msdc out Q The plan would
have ysa .hs saps profit n @ sS' TSs Ssa esa oesa
would have rcuded materssis LABOR, royalty and pro-
Gtss A. think 80 far as those gans were
but part Of the plan was 70 allow twelve and hIr per
sdopsed that when 10 carry out The suggestion
there an Inventory made Of the properly other thar
the guD sna q hi sGSa Saa sd yous roI s Snen n
tory. omitted the current expenses Of the esusb
hshneut rent fuel Pay for super,ntenass1s as &C.
which were found inadequate, and which had to be
replaced; Mr. Keens todd al the time that he had no
hiatt that they had no means Of asceriainng the whole.
Can you show Ia this cash book or other record
Of outlay any sum for materials OF work 20 making tools
no, know what 8 IN the books have 20, critically OK.
all the outlay and all the receipts 35 t 8,.i.s --i
O viii you point out in the cashbook the entries
sSA q ~ =
OF $1537e So other entry the other money was
received after the cash book was closed .s...eg &
materials Ia the acory and the OF labor that had
been appended upon those materials, 10 the unfinished
se ses any Scuy that would SSs
greater in the than In the other O Why them
In the presentation OF the claim TO the city, would IL not
becu the proper mode 10 state the cost OF material
end the labor upon tue carbines In the particular stages
In which they very That armory had been in oxis
euce nineteen months and all the money expended there
ninetecn months had been expended With view OF
producing that result and II any profits TO be made
in the production Of the finished guns; We expected
profits the machinery or toos the amory had just
arrived the condition for producing finished guns wc
had got Il very nearly In perfect state Of equipment
ducs when we started; the time, money, labor
all the outlay made during these nineteen
N ds see sDn g a spS bas soue
could be expected therefore that should make
that outlay for nineteen months and then receive upon
the six thousand carbnes than half perhaps two
thirds finished merely what they had and oregp all
prof, upon them; would be entirely UNJUST felt that
we would be entitled what would enable US TO replace
the entire establishment IN the position In which was
but IN consequence ~ my position insisted that moth
ing should be charged above cost although would cost
tnT x.xl.r tf thovn arog gnn vuhy
profit should be charged, In my Judgment O
What was tho difference between this mode, and
iecsed, escep, tha, this included profits as well As
outay3 A. Profits II any; that the difference In pn
cplc, the one would have been smpe return Of the
capital invested without compensation for the hazards
or the enterprise, aud the other would embrace the
profits " any. O. Iuuderstndd that your computation
II only for SIX thousand carbnes and for any part OF
the thousand and y that had been delivered 70 the
government A. Certainly they were not there Q
VIII you show uAat was omitted 10 tie schedule OF ma
cbnery TOOLS &c., thing that went into the cost OF
machinery and oos, and keeping up and replcnishing
tools and the cost OF carrying on the conccrn thai was
applicable N the production Of the one thousand and
nIiy guns delivered 10 the government A I suppose
that for the very same reason that IL was excluded from
shs el,im upon tho CITY, w,, y no, included IN tho
there " omitted from that schedule anything that
went into the production Of the thousand guns
delivered 10 the government except the mate
rials that went into themf A. IL was omitted
10 the claim against the city for The rcon that II bad
no business ihere u would he fraudulent claim to put
" in. O Won't you point out any items amounts OF
outlay FOR machinery and tools or Keeping up machinery
and tools carrying that factory that actually
employed In the making Of the thousand guns do.
livered 10 the government that omitted from this
schedule that foots mp $4,000 A. Certainly; IL ap
prehend the question, II Is whether can point. out
anything that went into the cost Of the one thousand
guns delivered TO the government left out Of this
schedules suppose that everything Is left out sup
pose has right there at all q Now win you point
out in what respect these schedules that foot up s97 o0o
fail TO show all The machinery, all the tools, all the ma
terias for machinery and tools, and all the work in
ard and and N
up machinery and tools that were employed In that fac
tory In the production Of whatever produced there
A. Mr. Eyarts, should be very much obliged II you
would put shorter questions
The Court-Therc are $4,000 paid for workmcn keep.
ing up tools in that factory The counsel wants to know
N You can state whether that Includes all the tools
for making those which delNnred W the gov