New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-10-01
COAL FRAUDS AT BUFFALO.
A WESTERN JOHN KELLY ARRESTED.
A Gil AHGE OLE RRIRERY AND Perjury.

KEIIY's HISTORY, AND MODES OF DOING OFF,
CLAL BUSINESS.
lBY TELEGRAPH TO THE IRIBUsEl
BUFFALO, N " Sept. 3O.-Soon after the opening
of the Criminal Term Of the Superior Court tins
morning John Kelly, Superintendent of Canal Re
pairs for this section of the Erie Canal was arraigned
before Judge Clinton upon two indictments found
against him on the 2sth inst. The first indictment
charges Mr. Kelly with perjury and the second with
bribery. The indictment for PERJURY in substance
is as follows:
The jurors present that since the appointment OF MT
Kelly superintendent on March IL, 1879 ana WINE
he was superintendent namely, Dec H. 1874, he wick
OF James e Jackson r then Canal Commissioner Of the
State having charge Of the part of the canal OF whGn
Kelly Superintendent TO false abstract and account
OF Kelly's cxpen lures for repairs upon the cana,
for the sixtyone days between between otr d hnI
means, no did actually procure such certificate Inc
fraud consisted in his procuring the auditing OF ths 40,
str8ct OF an OF Ellis Webster Son. for coal sold
to Kelly for the Canal Department. The value OF e c0al
stated at 672 70, when in fact he paid only T6Oo 10
all of which well known to Kelly at the time OF
making the abstract. II is charged that at the time OF
making the affidavit IT became nat ad 2e atScn
Oct l. 1874, aud Dee 80 1s74 paid Ellis Webster son
mentioned the abstract and account hadbeen furnished
for the benefit of tine state alone.
The indictment further charges that John Kelly was re-
CURED to make this affidavit BY Games Jackson Jr.'
Canal Commissioner in order to authorize tie COhhls-
sionor 20 make his certificate upon the account to
authorize Kelly TO present the abstract the Auditor
ani procure It's allowance. # also presented that JOIN
Kelly did, upon his oath, falsely, corripty, anu
felcousIy swear i'm subs acc and eject, that according
tie best OF his knowledge and belief, all had been per
furnished for the benefit The state, aud the state
alone, when in Truth he did nos at tnat time or at any
other time pay Ellis Webster 4 Son SG72 20 Tor coal
furnished the state as mentioned as he well knew AT the
TIE CHARGE OF BRIBERY.
The Indictment for bribery, after the preliminary
statement 10 regard to the official position OF Kelly,
states as follows:
March II, Is7i at the City OF Buffalo John Kelly did
wifGy aud corTUply accept from Els Wooster * Sol
endrt would purchase from them an the coal required
by the state at the City Of Buffalo, they would give 10
Kel the OF 30 cents for every ton u! coal NIch nc
as such Superintendent should purchase frOn theh Tor
the State. After entering into this rauduen, asieJ
after the delivery OF which Kelly received of Webster
Son bin bearing date Dec %. 1874 the value OF Which
~ 20 % a. bride and pecunaly reward 10Y h'iS
made tie agreement before mentioned
TO APPEAR DAILY IN COURT.
Mfr. Kelly states that he has retained sherman J.
Rogers of Bowen & Rogers of this city as counsel
but owing to the absence of Mr.. Rogers this morn
ing, Senator A. p. Laning appeared on his behalf
To both of the charges he entered a plea of mot
guilty" The bail for hIs appearance from day to
day was fixed at $4,000 on the perjury Indictment
and 81. 900 on the bribery charge. George and
Thomas Farthing, distilers, jointly became his
AZ ASSERTION or INNOCENCE.
In conversations Mr. Kelly denies the charges in
every particular. He says that if he received any
coal az his own house from Mr.. Welch he expected
10 paw for IT, and was only waiting for the latter to
present his bill; that it did not appear to him as
range that 10 bill had been presented sooner as ne
WAS bnving coal of Wclch frequently, and he sup
posed the bill would appear in due time. lie also
denies receiving Y744 or any other sum as commits
SION He claims that while his section was extended,
at the time it came under his charge, from u to %
miles the expense of keeping it i'll repair was nearly
SlOO 900 less during tho previous year than 1t was
under the supervision of his predecessor for the same
length OF tine.
WHAT PEOPLE SAY or MR.. KELLY.
Mr.. Kelly il an old citizen Of this comfy. In
speaking of his past, citizen recently stated that
for several years past Mr. Kelly has been very sue
cessful politician. For many years he kept butcher
stall where he made comfortable living, and was
generally regarded an honest man. Five or six
wears apo he began TO interest himself in politics.
Soon after lac was elected Alderman by the Demo
cratic party. where he served the city four or
five Yeats Duung this time he was largely en-
gagged in real estate transactions ana ac-
cumulated money rapidly. When Gov. Iildcn
was elected Mr. Kelly's party insisted that he must
take the Office of Canal Superintendent. Inc ldea
seemed absurd to him, he said as he could not see
what ne wanted with an Office which would pay MIN
only 81 400 per annum At first lac refused to have
ANYTHING to do with it. Nevertheless, when the pO-
litcal ASPECT of the case was considered he finally
consented and was accordingly appointed. AL
though an illitcrate man. he is genial and frank with
every one. and person well calculated to carry
political influence among n certain class.
THE OPPORTUNITY FOR FRAUD.
In his testimony before the Governors Commits
sion Mr. Kelly stated that lie kept no books nor ac-
counts of any kind, except the check roll. which IS
signed by the foreman of each gang of aborcts, and
such vouchers as he might receive in other cases.
His disbursements last yearranged between sZooOo
and S25. 600 in payment for labor, materials, etc.
Chapter - of the Laws of 1888 provides that 1t
shall he the duty of each Canal Superintendent on
or before the 10Th day of each month"; either to pub
lish in some newspaper printed in the counties
through which any part of his section of the canal
masses or file in the office of the County Clerk in the
comfy in which he shall reside, an abstract of his
official disbursements.
This abstract is required 10 state thename and res
idence of the persons 10 whom he has paid money
and the amount paid to each which abstract shall be
verified by the oath Of such superintendent. lhe
abstract shall be published, instead OF filed, except
when the superintendent shall be unable to procure
its publication for 81 800. The section beginning
al This end of the canal is known as Section II, and
extends from Buffalo to Sulphur Spring guard lock-
distance of rs miles The abstracts for this section
are filed with the County Clerk, but the certificates
attached do not state that it is abstract of his
official disbursements during the time specified. The
history of the canal frauds demonstrates that
vouchers can be taken without the necessity of dis
bursting their full face value.
The following is a copy OF the affidavit accompany
ing the abstract for the month of August, which is
similar to those OH file for the other months OF the
current year