New-York tribune., 1867-07-24
THE CANAL FRAUDS.
INVESTIGATIONS oP THE COMMITTEE OF THE
STArh SENATE.

INVEsTIGAT oP THE COMMITTEE or THE
STArH SENATE.
The Albany correspondent of The Troy Times
furnishes that paper with the following abstract Of
certain evidence before the Senate Committee on the
investigation of canal management:
In 1885, in tho Spring Charles j. DE Graw. Charles T.
Case and John A. Robinson had quantity OF timber
lying in the river near Corning Hood occurred, by
which portion OF tho timber carried of down the
river and some OF II lost As the canal was not
opened that year the time advertised owing 10 this
saine food the omission deemed good ground TO ap
ply TO the Legislature and get pay for the timber just
claim against the State. At the session OF the Legsa'
re in 1906 Do made application TO tho Senate for
relief and his petition referred TO tho Committee on
Claims by which the examined, and Mr. Gihson,
the chairman committee, reported against tho
claim but the Senate after considerable discussion,
committed the case, and O majority OF the committee
he chairman dssentng) reported IN favor Of the bill.
and II became law finally and the matter was referred
10 the Canal Board for hearing The Board subsequently
heard the case and the 9th day Of December 1866,
awarded s9i. 900 TO the claimant
The Investigation Committee being Informed that this
claim was fraudulent, examined large lumber OF wit
nesses during the session. and becoming satisfied OF tho
fraud caused amount awarded TO be stricken out OF
appropriation bill, and supposed that payment Of tho
claim from tho Treasury had thus been prevented.
10 now appears that James j. Beden of Syracuse bnd
prior TO the session, made contract with DE GIaw TO
furnish the evidence" and make the necessary dsbnrse
nents 10 get this bill passed, and 10 receive his
share Of the plunder 600 No evidence, however
furnished by Beden, but the contrary, this done
by DE Graw, Belden making the necessary psymenta
The character Of the disbursements sshown by ono tem
being 200 paid for orsainS the ease The plnnderers
item had been stricken out OF the appropriation bill In
the senat and that the nys'sa,on TO- CoMmtss had
ment and on his draft ,oGs PAID
The evidence shows that when the Auditor did this no
knew that this claim was being investigated fraudu
lent and that item had been stricken from the appro
iS paymsnt 1o was drawn without authority Of law
Thus the State has been defrauded In one transaction 20
by the aid OF public officer u volunteer. who when
he acted did so with m knowledge of the fraud charged
fha pendpg Investigation thereon and that there
authority OF 10 mako tho payment This last appears
clear from the fact that me Andor drew the aP
Item was stricken out In tho Senate and never became
osn after the election Of Gen. Bruce by the Legislature
a. Canal Commissioner, he declared or caused 10 bc de
Sae@ Car Sne seeoS Of Ss division year, I'M
nediately, and without any pnDe notice entered into
Se Contractor should have dose and for doing which
Bedea paid the draft: OF Bruce $4,000! This
@ men In order 20 have earned that amount Of money
then stood Il would have REQUIRED the employ
lent acts In this connection would require space
the Fall election subsequent 10 the above
Cen Bruce candidate Tor an election as Canal Com.
missioner on the pTssS, msks sa and w w. WEhs
containing full statement Of the fots contested with
nmeessc paper At The editor Sf that paper
1sed tSst he was offered 1000 nof TO pa6sh that sTt
Gle N his papeS and he accepted the money and did NOS
There was letting Of contracts for repairs at Buffalo,
and Geo d. Lord had IN proposal aud one Dnnn had
one also In the name OF on6 Kingsey Dunns Offer was
lower than Lords for the fve yeare about 10000 me
prnposals had been opened at Bnfslo and h was PLAIN
OF tho contract adjourned 70 Albany the SUCCEED
ing Monday. Lord immediately offered Dunn te9oo he
would consent to hsye his ba made Informal pnnn In
natsd that could not be done but Lord said he could
bnt IL would cost HIM H 900 70 gat 10 done. 10 wa nney
agreed by Dunn he would take the 80 and let bis
for schenectady, the day before tho BIDS 70 be
acted upon, ard bsd an interview with David David
y FORREST ehe Clerk OF the Contracting Board,
who consented 90 10 the Canal CommssioDsry once
at Albany and let Lord his bid and thatof Dunn
They went 10 Albany together, Sunday, and enered
the oes Alone and the Clerk opensd the safe where sss
tha two above specified on Monday, when the Board
met Dunns bid was found % Be horaa the mann name ,Ss Os
the supervisor OF s oWn having msappse,rsds s the
Contracting Board Dunn howeyer being ansssy IN he hs
ralnd at IOrd's going ON Cd bundsy. eud thihk"k NO