The New York herald., 1871-08-31
~ .Swiudlc 10 a
t4@tsc amount.
ARREST Or -HE h4sr,gs
Confessions of Some of the Primo.
pal Operators.
How Carpet-Baggers and Seal
awags Grow Rich.

is about one hundred and forty miles
In length It is one OF the trunk roads from
the West and North and does large business.
Being the property OF the State OF Georgia. 1t was,
until leased a few months ago. controlled by the
Governor, who appointed the superintendent and
other officers.
AN UNPRoFTTABLE RAILROAD.
In January, 1870, Governor Bullock appointed
Foster Bl0dgett selstyed United States senator to
the superintendency. During the same month
Blodgett paid $685. into the State Treasury as the
profits OF the road. At the end o. the next month
he paid in $4,000, and Thereafter no payments
whatever were made As soon as the Treasurer
made public the fact that he was not receiving any
money from the road rumors arose that some tall
swlndltng was going on. Blodgctt bore all
the charges with Spartan fortitude, and
when he submitted his report declared
that the profits had been expended IN
relaying the track, constructing new bridges
and purchasing new passenger and freight cars.
Reports, however, were and still are current that
the road mad been plunged into debt to the amount
OF half million OF dollars and as BlOdgett had only
explained what ne had done with the profits and
was silent respecting the debu the public mind set
tied down firmly into the belief that the STATE road
"a 1t ia called, contained gang Of plunderers.
HIGH LIVING ON SMALL SALARIES.
Wcat strengthened the opinion was the fact that
their salaries did not warrant To say the least 1t
was a suspicious circumstance that men who re.
ceved from 81, 200 to 81 900 per should spend
three or four times that sum and be heavy purchas
ers OF real estate. To give you some idea OF how
enterprisng these gentlemen were would state that
In the Of OF the parties arrested his taxable
property increased from 5000 In 1870 to Sl 900 in
1871.
Although the charges Of robbery were loud and
frequent neither Bullock nor Blodgett adopted any
measures looking 10 their investigation. Time
passed, and the railroad was leased to q company
of capitalists for saoO,ooo per annum. Board Of
commissioners was appointed by the Governor to
close up the books Of the road, and all the old
officers were retained. These continued their
work until few days ago. when, to the surprise OF
everybody ror people had abandoned all hope of the
rascalitles being diseovered). an exposition waa
made OF startling swindles having been perpe.
trated.
DISCOVERY OF FRAUDS
MAJOR McCalla, the bookKeeper Of the road, who
was retained under tho old regime, and who bears
the reputation OF being the only honest ofcial in
its employ, was the gentleman who discovered the
frauds. While engaged In posting his books he
noticed that the expenses for the last two months
pr or to the turning over OF the road to
the lessees were frIghtfully out OF proportion
to the expenses Of previous months Articles
thousands. Without making known his suspicious
any person ne quietly proceeded with his investl-
cations and soon found that the road had been
into his confidence Major George r. Burnett, per.
sonal friend OF his, ne impaired 10 that gentleman
the acts he had ascertained MAJOR Hargrove an
able lawyer Of this city, was next called IN ana the
three set TO work with view TO liking the guilt
upon the proper parties.
The hrst person on wnom'guilt was actually hxed
was Joseph Fry who sad the position qf rSss oer
Blodgest, VINO hed the position Of general pIrenas-
lag agent to the road. Fry, IL appears NAG , been
sented for oertincatlon. and Oh all the fraudulent
bills discovered his handwriting. signing Bloigetts
that further conceaiment was impohtic. Fry was
regarded as an Intimate friend or FOs.er Blodgett,
In whose mousse he resided, and with whom he was
supposed to hold confidential relations.
nLpp1ETT AND BULLOCK INFORMED.
MAJOR NC aScalla aSeorSSinEy acquainted Foster
giviDR them names and dates. Whether these OH.
cals promised to take any Steps IN The matter
nOnng Whatever for three months after information
was siven them. Meantime McCalla pressed his
evidence OF rascalily, and as neither bullock nor
nlodEeit seemed willing TO procced he determined
to take uDOn himself all The responsibility vi arrest.
lug aud punlshinR the rascas.
THE FIRST ARREST.
II was the intention VI McCalla to have Fry ar
rested on one Monday. TO his surprise BlodIett
anticipated him aud had Fry arrested The previous
Saturday: various motives are assigned TO Blodg'
tice to repeat tnenl shall let them pass. Fry was
was brought before Justice OF the Peace and re-
leased Oh the ridiculous bail Of $780, AS tins sum
was too small not to excite remark Bodgett again
had him brought into court and the bail bond was
Fry lc the city and was supposed to have abscOnded
CONFESSION IN COURT.
the next arrest made was that OF Mr. N. p. Hotch.
kiss, Auditor OF the road, and MS was followed by
the arrest oi Mr. Alexander merchant Of this
s" but Aesander made cIean breast o ns part
In the swindles. He said tnat Fry had come to him
AID asked him II ne woud like To make some
money. Alexander replied that he would. Fry then
decIred that all the oiiclals employed the State
road were stealing al they could aud that 1t would
Gus work. Alexander WAS perfectly willing. In
strucied by Fry he made out bill against the road
for so,995 lo IN the name OF his rm, which had pre-
vlousy had bona fde transactions with the road.
Fry next made him draw up Oil for the exact
in the name name SI e o0 ham an
these bills paid and Alexander got his share OF
the plunder. Durlug the examination ne confessed
having paid back $500 as conscience money" re.
ceived from this and 0tner transactions.
THE CoNsPIRATOKs.
ln,ense sensation rev, revelations harn ", Which
rascaties which mad occn perpetrated. Nor was
the public hope disappointed; Try no sooner heard
Al anita ana told all he knew. Major McCaia had
long been aware tnat conspiracy existed. but the
witness. lie confessed to the authorities that The
swlndles were perpetraicd by rlng composed or
HaIris. the treasurer N. p. Hotchkiss the auditor
and himself and shat they mad robbed the State OF
an enormous sum OF money.
HOW THE THIEVES WORKED.
The TnOfns OD rdndt OF the cOnspirat0rs was
simple. Their ccrt1cet0n OF bills was ali tnat was
necessary to receive payment. Fry certified for I'D.
Bloigeti, Mullins aud Hotclkss certiucd for them
serves, and Harris the treasurer, paid
the money. Confederates were obtained.
for q small consideration, to make out
bills against the road, AMI sometimes the c0nspira.
tors themselves made out bills In the name Of inagi-
nary firms and drew the money on them. To give
you some idea OF the systematic manner IN winch
tle villains went To work, would state that Fry
con esscs having tho blllheads OF "McEwen, Grant
Co.. commission and metal dealers, New York
agency" printed In Philadelphia, ana how much
yet been ascertained.
MORE ARRESTS.
A. a consequence OF Frys confession Isaac r. .
Harris, the treasurer, was arrested. lie waived