The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-17
NEW YORK HERALD SATURDAY. H. 1s7-TRIPLE SHEET

ledger showed brit s5s,44e The inventory OF mo
blndery for November 80. 1854. Is entered on the
ledger as sI9, 641, AMI upon tnlt basis profit OF
sls,s0s is shown. while the inventory Itself. from
which such entry should he made shows the
amount 10 be sl3s,47s. The entry or sl5l,0H IS
FALSE ENrRY
and was made 70 cover 8 loss OF 1926 The inven-
tory OF merchandise nand for 1868 shows 70 be
$780, 73s, ana the ledger II Is sl4Os95. The In
ventory OF Elcrchanaise Tor 1859 was made up on
the basis OF cost yaluation OF articles and aggrc-
gated 500, 500, TO which was aillxed memorandum
as follows:--Amount added ny order OF agents,
$dl. 3G5-t thus arbitrarily Increasing the inventory TO
SI6o255. TO this Dr. Lalahan saws he was not q
party and dil not even know OF IL until six months
after II was made. A similar conuiron OF things,
he asserts, ruus all ,nr,ngn the accounts OF the
Concern lie also gives the cash balances IN bank
ana as entered on tile books of tine Concern and
shows IKE discrepancy. aud states that between
the years 1868 and 1895 Concern PAID ouB FOR
tegest 1882 more than 10 hal received on It's LARGE
balances IN bank. Dr. anahan's answer closes with
q letter rom j. J.. Magce agent oil the depository at
Boston. which EXHIBITS u confused STATE OF AFFAIRS.
Mr. Magee Is both charged and credited VITA
moneys and hooks, &c, winch ne never sent or re.
ceived and the balances oi one year are placed TO
iae account OF another year. In 1896 ne Is charged
Tor books St,25o more than he received a0d wncn
should be charged to the Cincinnati Depository.
And lie is credited cash 1915 more tnan he mad Tor
warded and sI,4s5 balance belonging 10 lcd2 IS
credited 70 1863.
After the reading OF this document Mr. Buckley
offered to rreseht the other documents named -
ggoeld Of irrceyaacy, ana the Chair sustained MS
pOins. - r -
".
evidence indcated by W. RucKiey, ana he ~ sired
the sense Of The committee lheieo. .s' 's~-r'e'
In. Woo.lru1 wanted an executive session to
compare Vows, but Dr, Kennedy and 0LncrS Op-
posed, Oh the slo'ni that lacy hal no views 10
compare on this POM.
Mir. Buckley wanted TO show by those documents
that Dr. Lanahan mad been t.aduccl by the o.ical
press. and That the committee. bv an error Judg-
ineut haa Itllod 10 do hun 1ustce and there was no
other course open to MIN but 10 appeal the courts,
as he nad done. And Il Dt Laaalan had Llkcg! hls
!BpcHie,'s advice ho wouii haze taScn tnls acuon
= DIR. LANAuAN AS A WITNESS.
DR.. Lanahan was tuen placed Oh the stand, ana
testified sub tantallg tnat Nhen he entcred the l0u-
car1 early ~ June. 1853 he supposed Vlat NJ snoaid
be informed u the duties deyoving upon nll, auu
OF the manner Of performing them ny ~. carlton.
nothing OF tae details Oh the business touching
the purchases OF STOCK, &c. lie expressed
give nm Instructions To DR.. WISE, who suggested
That he ought to make inquiries rom the heads or the
dlacrent departments, and So MAKE DIIlsef familiar
wien the details OF tho Daslnes3 that way.
EARLY in Juiy, therefore," me Doctor continued
81 asked Nh. uooaenough how and when he pur-
chased paper, &c. HIS answer was III ielnlJe anu
hlS manner rcDusive, ald SO l was uaftvoraply
Impressed. Being unlanliliar win such tnings l
determined 10 say rolilns more TO aim unul nad
inurned myscH o. such matters. l naue inquiry
Iii the Office OF OF tie bOCkkeepeTs .or vouchers
tor paper and was In ormed that there were
In Lne olice; that they were held BY the suDer,ll-
tendenG ana that payments were made on monthly
statements Some We're presented and found
That they simply gave dates ani amounts oil money
but ala not specify articles purchased. 1 applied to
DR.. Carton III regard 10 this matter ana he In
formed me that Mr. Goodenough had the vouchers,
ana lnat 1t all riGnI In February following HE
committee prOpuunded questions 10 Dr.. Carton IN
regard to methods or BUSINESS. when he answered
that they had such perfect system OF checks that
nothing could go wrong wltiOuJ tue knowledge OF
the agents. told DR.. Carlton privately nat If rue
commGtee should LOOK INTO the details OF the bush
ness tney would hrd sad STATE Of things for the
agents. DR.. Carton sad MI. Goodenough had the
vouchers for paper, gc., and 1t was All right. re-
Piled that hlr. Goodenongh was a uead man TO thc
committee and that the agents were the rcspons Die
partes aud that they might Us wei ak any man Oh
DR.. Carlton asked me whether considered Mr..
Goodenough dishonest reped that the question
was not proper; that his continuance IN the employ
OF the Concern was sucicn evidence OF their conf
dence in him. They had 0tlerconv together
on these matters, and Dr.. Lananan made injuries
in regard TO the purchase OF paper, ana learned that
these we're not conducted In person by Nh. Goode-
noupn but through hr. j. f. Porter. pr Iananan
then made another demand upon Mr.. G0odenough
Tor the vouchers OF the paper purchased for the
year previous, bat instead OF that Mr.. Goodenough
sent MIN Two order books, accompanied with u
note, IN which he stated That lie mad purchased at
the lowest market prices. second demand for the
bills and vouchers was made and they were then
presented, and showed That most OF the paper was
purchased from Mr.. Porter Dr. Lamar n men ap-
piled to Bradley r. Hard, paper dealer ana found
that hs S2les To Porter correspondent in regard to
date and quantity, but not As to price, lie then told
Mi. Goodenough tnat they pad too nnch for paper.
and that he would prove il Il Mr.. Goodenough would
step Into the agents. office While Mr.. Hard sod
paper 10 Porter at slo 80 rea, Porter charged the
Concern SI3 so therefor. Mr.. Goouenough SAID he
generally delivered Ills orders either personally Or by
mail.
General Runyon here made inquiry as to the rele.
vancy or this narration. one thing It proved, he
said-namely, that IN all this investigation Or.
Lanahan not Intcrfered with by DR.. Carlton,
we have a matter now before which Is not in The
rcnotest way connected with any TRANSACTION OF
Mr.. Go0dcnough. Counsel then read from DR. Lana
hams affidavit In application Tor the mandamus to
prove that he did not once name Mr.. GoodenOugh
IN that connection, but rather that he desired to
ascertain whether any property still remained IN
the hands OF the agent or former agent whlca had
not been turned over 10 the corpcrators under the
statute. His justification must therefore, be as
wide and no wider than DR.. Lanahan made il him.
Hence this course OF examination ia wholly irrele-
want and should not be proceeded III.
Judge Reynolds commended that they had right
to go back far beyond the date OF the application
for Justification OF that act, and argued that DR..
Lanahan was compelled to this act Tor his defence
in the Goodenougn SUIT which, contrary to pledges
Elven, was being pressed against him.
General Eunyon proposed TO prove that the books
were never denied TO DR.. Lanahan IN tins case ana
tnat two weeks before his application to the court
perlor Court had the power AT any time 10 subpoena
the books and hand them over 10 DR.. Lanahan And
they had actually been before the court in that very
case.
the Chairman ruled that 20 justify Dr. Lanahan 1t
was proper to shoiy the state Of things which ex-
listed At the time or the application for maudamus,
whether they such as to compel HIM thus to
apply; but as 10 how the dcieuce would show such
state or things was another matter. Hence uo
ruled the present line OF testimony as irrelevant and
out oil orOer.
This decision was appealed from by the friends or
place tue members OF the committee sCvegally ana
publicly on the record, they decided to In exc.
cutive session. which was Immediately called. aud
tue public proceedings for The day terminated.