The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-06-17

ledrcr showed brit S5s,44e. The inventory OF mo
blndery for November 80 1854. Is entered on the
ledger as $40, S41 and upon that basis profit OF
slS,90S Is shown, while the inventory itself, from
which such entry should be made. shows the
amount 10 be $1as,47s. The entry OF sldl.0n IS
FALSE ENTRY,
and was made 70 cover q ,Oss OF 1854. The nven-
tory OF merchandise on nand for 1868 shows II u be
Sl3o.73s, and on the ledger IL is sla0,ss5 The In
ventory or merchandise Tor 1859 was made up on
the basis or cost valuation or articles and ayyrc
gated 500, 500, TO which was affixed memorandum
as follows:--AmOuut added NY order OF agents,
50, STD thus ARBITRARILY Increasing the inventory TO
SIGO,o55. TO this Dr. Lanaban saws he was act
party and dill not even know OF IL untl six months
after H. was made. similar CONDITION oI things,
he asserts, ruus all ,hrbugn the accounts OF the
Concern. lie also ewes the cash balances IN bank
0na as entered on tie books OF the concern, and
shows a IKE discrepancy. and states that between
tue years 1863 ana 1870 the Concern pad CUT for NJ
teyest sa932 more than it haa received on is iarge
balances IN bank. bt. i.anahans answer closes with
letter rom J. J.. hage, agent OF the depository at
Boston, which exhibits confused STATE OF ahiiis
Mr.. Magec Is BOTH chargel ana credited VITA
moneys and books, &C, winch ne never sent or re.
ceived and the balances ol one year are placed to
tac account OF another year. In 1r6o ne IS charged
Tor books St.25o more Than he received and wnlcn
should be charged to the CINCINNATI Depository.
And he Is credited cash 1915 more tnan he mad Tor
warded, and si.4S5 balance belonging to lso2 IS
credited 70 1868.
After the reading OF this document MI. Buckley
offered to prcselt the other documents named as
evidence out General Run, on opposed on the
ggoand Of !rrcleyaacy, ana tue Chair sustained MS
poins !" 2 - .
evidence indicated by nr. kucIley, ana he u sIed
the sense OF the committee tnereon. 80 r~-'ss
Lr WOolruI wan.ed an executive session to
compare views, but Dr. Kennedy anu osncrs OPP
posed, on the ground that lAey mai no views 10
compare on this polnt.
Mr. Enokleg wanted 10 show by those documents
that DE- iananan mad been Gaduccd by Gho 0.clal
press. and tlaG the committee Nv an error OF judg-
ineHt had Jailed do INN justice ana there was 40
other course open To MN but 10 apuea 70 the courts.
as ne nad done. And II ID. Laahln had tlkcA has
lBucklcysi advice he would haze taGca TINS acuon
long before.
DR.. Lanahan was tuen placed Oh tae stand, ana
ceru, early june 1868, he supposed that ne snond
be informed oI The auties deyoivlng upon hlll, aad
oil the manner of performing Them w ~. Carlton,
Eut there was nothing san to him, and he Knew
nothing OF the details OF the business touching
me Purchases OF sIocE' &c. nc eXoresssd
give him Instructions To DR.. Wise, who suggested
that he ought to make INQUIRIES rom the heads OF the
dl1crent departments, and 80 MAKE himself familiar
wsh the details OF tho BUSINESS III mat way.
EARLY IN Jniy, therefore," me Doctor continued,
al asked Mr.. tioouenougn how and when he pur :
chased paper, &c. Ills answer was in iollnlre and
hls manner rcpu.sive, ana so was uafivOrauly
Impressed. Beiug unahii!iar win such things
determined u say rotllns more to aim unti nad
informed myself OF SUCH matters. | made inquiry
the Office ol one oil the bookkeepers .or vouchers
Tor paper, and was informed that there were none
In tne oiice; that they were held b. the SUI ERIN
tendenC and that payments were made on monthly
statements. Some were Presented. aud | found
That they simply gave dates anu amounts OF money
but did not specify articles purchased appiied TO
Dr. Carton III regard 10 this mater ana he III
formed me that hr. GoouCnough had the vouchers,
and That Il VAS all rlGnI lii February 1onOwin2 NE
committee pr0pouaded questions 10 Dr. Carton IN
regard to methods or business, when nc aisWere
that they had sucn perfect system OF checks that
nothing could go wrong wil.lOut the knowledge OF
the agents told DR.. Carlton privately tnat II ine
coulmICtee should LOOK into the deas OF the bush
tney would hrd sad STATE OF things for The
agents DR.. Carton said Mr.. Goodenough had the
vouchers for paper, &c., ana 1t was All iight. re-
Piled that Mr.. GoodenouEn was dead man TO INC
Committee and that the agents were the respons Ole
parties, and that they might as vel ask any Oh
the street about tue business as air. Goodenouen.
Dr. Carlton asked me whether | considered Mr..
Goolenougn dishonest. reDlied that the question
was not proper; That his continuance IN the employ
OF the Concern was sahccnt evidence OF their CONT
III him. they had NEUTRALITY-SUSPICIOUS. together
on these matters, and Dr. l.anahan made inquiries
in regard To the purchase OF paper and learned that
these we're not conducted In person by Mr.. Goode-
Dough but through Sir. j. +. Porter. Or. Lananan
then made another demand upon Mr.. Goodenoush
Tor the vouchers OF the paper purchased for the
year previous, bat instead OF that Mr.. Goodenoagh
sent MIN Two order books, accompanied with
Hote, IN which he stated that he md purchased at
the lowest market prices. second demand Tor the
bls and vouchers was made ana they were then
presented, and showed That most OF the paper was
purchased from Mr.. Porter. Dr. Lamar n tncn ap-
plicu 10 Bradley r. uafti, paper dealer ana found
that his safes To Porter correspondent in regard to
Gate ana quantity, bat not Is to price. lie then told
Mir. Goodenough tDat they PAID too much for paper.
and that he would prove it II Mr.. Goodenough would
step tuto the agents. Office. While Mr. Hard sod
paper 10 Porter at so 80 ream, Porter charged the
Concern SI3 so therefor. Mr.. Goouenongh SAID he
generally delivered Ills orders either personally by
mail.
General Runyon here made inquiry as to the rele.
vancy OF THIS narration. one thing IL proved. lie
said--namely, that IN all this investigation Dr.
Lanahan was not lntcrfered with 10y DR.. Carlton.
we have matter now before US which Is not in the
remotest way connected with any TRANSACTION OF
Mr.. GoOdenough. 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 tla5 he desired to
ascertain whether any property stil remained in
the hands Of the agent or former agent wilcn had
not been turned over TO the corpcrator5 under the
statute. HIS justification must, therefore, be as
wide and no wider than Dr.. Lanahaa made il him.
self when he made his application to the court
Hence this course OF Examination ia wholly irrele-
want and should not be proceeded il.
Judge Reynolds commended that they had right
to go back far beyond the date OF the application
for justification Of that act, ana argued that DR..
Lanahan was compelled to this act for his defence
in the Goodenough SUIT which, contrary to pledges
given, was being pressed against him.
General isunyon proposed 10 prove that the books
were never denied TO DR.. Lanahan IN tins CASE and
That two weeks before his application to the court
they were offered to him. And moreover, the SUI
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 Or. Lanahan lt
was proper to shoY the state of things which ex-
Isted at the time or the application FOR maDdamus
whether they were such ~ to compel HIM thus to
apply; but rs 10 how the defence would show such
state or things was another matter. Hence he
ruled the present line or testimony as irrelevant and
out OF oroer.
This decision was appealed from by the friends OF
DR.. Lnnahan ana, as vote the appca! would
place the members OF the committee severaily and
publicly on the record they decided to voc In exc.
cutve session which was Immediately called aud
ua IN IA IL W lfcr