The New York herald., 1874-12-11
The Evils of the Kelley
Finance Scheme.
rSUBLIMITY OF FOLLY.
Ir. Phelps Plan Of Forming a New Loan to
Pay an Old Debt.
THE PACIFIC MAIL CORRUPTION
Contradiction of the Rumored Intent Of
Mexico to Oede Away Her Territory.

WASHINGTON, Dec. 10, 1874
The Work In tho House-Mr. Dawes
the Kelley Finance scheme-The Civil
Rights Bill and Party Tactics.
In the House the debate on the Kelley bill was
resumed and somewhat energetcally prosecuted,
Mr.. Dawes making well prepared speech, In the
course OF which General Butler several times at
tempted to interrupt hlm. 1t was thought that
the speech and Mr.. Buffers interruption would
both help Mr.. Dawes in Massachu.
sets. The discussion Is not concluded,
nor are the republicans in haste
TO nnsh it. They mean to gain time for private
discussions, by which they hope to come to some
common ground. The Kelley bill is, therefore,
fortunate beginning for them. Strong efforts are
making to secure unanimlty in the party. Their
policy Is to prepare as quickly as possible sound
and acceptable bill for the reform OF the currency;
to get the President and the Secretary
OF the Treasury to agree to 1t, and then
10 use the party strength to carry It
through to success. The President is said to be
awake to the urgency OF the case He Is re-
ported to have said that IT. when policy Is
adopted any member OF the party finds 1t impos-
sible to support 1t. 1t would be unjust to seek to
detain him in the party lines and unjust to him
self for him to remain There seems to be no
wise and push through reform OF the currency.
How IT will succeed no one can yet tell; but the
leading republicans are certainly awake to the
greatness OF the peris with which they are
hedged in.
There was q report that Judge Hoar would call
mp the Clvil Rights Dill from the Speakers table
on Monday, move some amendments ana have 1t
passed by the House, If possible. Meantime, the
Judiciary Committee are consulting on the Civil
Rights bill, and some amendments win be pro-
posed there, before 1t Is reported. There is
growing suspicion that the democrats are not so
much averse to some form OF Clvll Rights bill as
they were, and that II the republicans should fail
TO pass a bill they will, at the next session, per-
naps, take up the measure and at least secure the
right OF equal accommodation OF the races on rail-
roads and perhaps In hotels, leaving out the
school and cemetery clause Many influential
democrats acknowledge that on railroads it Is put
just tnat all should have equal privileges and that
the hotel question Is not much different rom that
OF railroads.
The session promises to be one OF much
manHuvring, the two opposing parties stand
lace to face and neither means to blunder. 1t Is a
decisive battle for which they are forming pians
and probably the republicans will take care thar,
n least during this session. lew or no JOBS shall
be passed. They feel that vtgilant eyes watch
every movement OF theirs. There will be, as it
new looks less legislation than was at first
thought. The democrats are wary and hold their
men well IN hand.
Renewal Of the Pacific Mail Investiga-
tiOn-some Tangible Results Hoped.
For-The Lapscs and Sins of the Forty
Second Congress-Exci itement and Fear
Among tho Lobby.
The sensation OF the afternoon was the move.
ment to investigate the Pacific Mail Steamship
nj
thorough work Of it. The Committee OF ways and
Means determined yesterday to summon hither
for examination in the Pacific Mail troubles Messrs.
Russell Sage, RUFUS Hatch, Cornelius Gar
rison and M. Irwin SubpGnas were sent
70 New York last night and the mat
ter was kept absolutely secret here until
tho Assistant Sergeant-at-Arms had had time TO
serve his wrts. Only three OF the witnesses were
found. Mr.. Irwin, who is sald to have been here
some days ago and Is supposed to be anxious to
testify, was not found, lar as known this after
noon.
In the latter part OF February 1872. near the
close Of the Forty-second Congress. on resolution
onered by Mr.. Randall. OF Pennsylvania, the Com
mlttee on Ways and Means was instructed TO IN
vestigate the Pacific Mail steamship subsidy
and report whether there had been any bribery
or corruption in securing the annual subsidy OF
$50O,000 per annum. The committee began its
labors by summonng Cornelius Garrison, or New
York, who was examined, but nothing OF import
ance was gained. Two other witnesses, named
King and Smith, were also examined. when at
the close OF the session the committee were obliged
10 report to the House tnat the investigation
would have to be continued by the next Congress.
The evidence then taken was sealed, to be dclfv-
cred to the Ways and Means Committee OF
the Forty-tnird Congress. The recent troubles
fhn nft D.a nc hntC nat~
Company revived the question: and at the meeting
OF the Ways and Means Committee yesterday
Messrs. Dawes, Kasson and Beck were appointed
o subcommittee to examine the evidence
already In possession Of the committee
and continue the investigation. kilograms
we're to-day received from New York to the
eject that Russell sage will be here tomorrow i.
when the Investigation will be renewed. The first
thing IN order will be a resolution to conduct 1t
openly so that the present Congress and the
country may have the benefit OF all the facts. IG
is SAID tonight that majority OF the committee
Will favor this resolution Niblack, Wood and Beck.
Kasson and Sheldon are known to favor public
examination, but one other member is necessary
to make majority and II is confidently asserted
that Ellis II. Roberts will give his vote with the
ave already named This investigation, 1t IS
claimed, Will check the proposed aid to the Texas
Pacific and Atlantic ana Pacific railroads, and de-
feat all the schemes OF the powerful lobby which 1t
was supposed would try to control the latter part
Of the Forty-third Congress.
The False Rumors of q Proposed Ces-
sion or Part of Mexico to the United
States.
Pertinent to the revived report that negotia-
tlons are pending between the governments OF
the United States and Mexico for cesson OF a
part OF the territory of the latter to the former
country, it can be ofically stated that in October
last Minister Foster sent TO secretary Fish two ar
ticles which had recently appeared in the Dfario
0nciai OF Mexico with transiations thereof, re-
ierring TO that subject, the Minister adding, "rhe
articles have special significance from their ap-
pearance In the olicial journal OF the governments,
as indicating the sentiment OF the present ad-
mnistration Of Mexico upon a subject which has
gained currency through unfounded newspaper