The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-06
CANAL FRAUDS.
Report Of the Board of Canal InVeSti-
eating Commission.
GEORGE D. LORDS CAREER.
His Aptitude for Raising Bills and
Making Money.

the Buffalo contracts; and embraces the following
points,
On the 10th day OF February, In the year 1868 the
State entered into with George D. Lord to
keep in repair section IA of the Erie Canal for the
OF four years ten months from and including the
first day Of March, 1868 for the Of Sal 400 year
Mr.. Lord ito dredgo out the deposits in the canal
1t Buffalo and Black Rock also to dredge out the de-
posts between Guard Lock and Black Rock Harbor
and between said harbor and railroad bridge" This
be done previous the opening naviga-
ton in 1868, Mr.. Lord binding himself to maintain
meanwhile in the Erie basin channel 800 feet wide and
10 41o feet deep to dredge of Black Rock Harbor
at least 200 cubic yards of material and out of the
Ohio basin 10. 600 cubic yards each year.
few weeks after this contract signed the Legs-
ature appropriated "for excavatng and dredging Ohio
basln in the city Of Buffalo whenever the contractor
shall clean out the same to the uniform depth Of ten
feet required by his contracp the sum of $l2 600
much thereof shall be necessary TO give uni
form depth OF thirteen feet Of water in the said canal
Under this legislative modification of Lords repair
contract the State, in the following month, entered
into a contract with John Hand OF the city Of Buffalo,
for dredging the Ohio basin, in the city Of Buffalo, the
three feet in depth below the base bottom line
which the repair contractor Of Section No IA is
quired to dredge said BASIN"
On the 10Th of May, 1869, the Legislature appropr-
ated $50, 500 for dredging Black Rock Harbor, Erie
basn and for deepening slip and protecting dock OF the
Ohio BASIN In July following the passage OF this act
the 10th, the STATE signed two contracts with John
Hand one for dredging the channel around the north
end OF Erie basin brcakwater, in the city OF Buffalo,
and the other for removing deposits from Black Rock
Harbor.
On the 9th Of May Of the following year. 1870, the
Legislature appropriated the sum OF $4,000 "for exca
gatng and removing the material in the Ohio BASIN in
the city of Buffalo, to make thirteen feet Of uniform
depth OF therein be done under the existing
contract OF John Hand and to the expense Of
moving all the material in said basin as 1t existed at the
7ate OF such contract
In the winter of 1871 George d. Lord solicited Mr.
Lewis j. Bennett, Of the partners Of John Hand
TO apply to the Legislature OF which he had just been
slected member for relief under their several con-
tracts with the State upon the pretex that they had
GOT been remunerave Lord STIMULATING that he should
receive twothirds OF whatever sum was allowed them,
and that Bennett should not have any trouble or
pense in procuring the appropriation Mr. Bennett as
gented TO this proposal
On the 10th Of April 1871, the Legislature passed
act requiring the Canal Commissioners TO take testi-
mony 70 the suflciency of prices for dredging in
Black Rock Harbor and Erie and Ohio basins, both
under the contract OF John Hand, aud ordering said
Commissioners TO allow such additional price shall
reimburse and be a reasonable compensation to said
contractor.
On the It'll of July 1871 the Board of Canal Commits
yoners, consisting at that time Of W. W. Wright John
y. Fay and George W. Chapman, met at Buffalo, and,
the prosecution OF these contracts, awarded TO the
claimants upon the Ohio basin and the Erie basin
tracts the sum OF $50 $40 TO- which and above
he sum of S34 SOL 81, which was paid TO them under
heir contracts.
The only witnesses examined were Lewis J. Bennett
and John Hand, two of the claimants; William Richard
son, q partner of Bennett James 5. Hayden fellow
iredging contractor; j. Behn, at that time assistant
engineer in charge of the work covered by the Hand
contract and Oliver Cornell one Of Benefits work
Oen.
II appears from the evidence that the award Of the
Commissioners
charges
The whole amount OF this award with the accumu-
lated interest, amounting $33 1872 80, paid
10 Jarvis Lord, as President OF the Monroe County
Bank; part Of 1t was ever paid TO John Hand;
Thaddeus c. Davis received of IL from Lord $40 GOO Of
which he gave Lewis j. Bennett SO 900 only retaining
The remainder, s., 800, for himself
On the 23d OF May, 1872 the Legislature apDro-
prated sfor dredging out Black Rock Harbor the sum
Of 000 under the present contract for doing the
same, ana Notwithstanding its alleged Improbable
ness, the contractors went on with the work till the
Appropriation exhausted which occupied until the
month Of july 1873 Emboldened by his previous
success occurred TO George d. Losd ask from the
Canal Commissioners another award for the relief Of
John Hand"
Lord again sought Mr. Bennett and proposed to
obtain for him another award the terms
The last The arrangements for the meeting OF the
Canal Commissioners, the procuring of testimony and
oil the trouble and expense incident TO the preparation
sf the for this second award managed by
George D. Lord William H. Bowman his attorney
and Thaddeus G. Davis
The Commissioners met at the TIN House, IN the
\ city Of Buffalo, the 27th day Of November, 1874
the Board Of Commissioners at that time consisting Of
Alexander Barkley, X. W. Stroud and James Jackson,
Jr The only witnesses examined Lewis J.
Bennett William IL Douglass and William Richardson,
Benefits partners; Oliver Cornell of Bennett's
workmen and J. Frederick Behn Upon the testimony
of these witnesses the Commissioners made an add
tional award for the relief of John Hand" OF $50 $685.
on this work Bennett estes that but for what they
obliged to pay to the agents of the State TO get
what he called 'air play, their contracts would have
been profitable; that It occurred TO him TO ask
relief from the legislature thai when he prepared his
claim for the first award he regarded nal that he
nstigated TO make the second application by Lord
and encouraged in IL by Davis; that he not asked
10 make up his bill until after the testimony before the
Commissioners had been all taken; that when the bill
forwarded TO Lord at Rochester IL returned TO
him through Bowman, who instructed him that 1t was
not in accordance with the evidence taken before the
Canal Commissioners and required him to take it back
Tor correction; that be did take 1t back; made
bill greatly increasing all the amounts In the pre-
yious award, and sent il 70 Rochester When Bennett
1ext saw it, II was in the hands OF Davis.
The proof that every cent of the So 637 80 awarded
70 these consprtors in OF what the law APP
proprated for their relief and obtained upon purely
fictitious and fraudulent charges is that Benefits time
books show that the whole number of days which
tredge was employed on the Ohio basin was 240 Mr.
Bennett claimed So 100 as interest tor three years on
$4,000, the assumed cost OF machinery tools, &c,
ascd in the Ohio BASIN and so 600 for depreciation Of
the machinery during the same period whereas the
machinery and boats actually in use only $40 days
The same dredging machinery was employed upon the
work IN the Erie basin he claimed 81, 800 for two
gears interest $4,000 its assumed value and
kS 900 for depreciation although the total number OF
lays it was employed on this work was but l49 The
Same dredging machinery was employed in the Black
Rock Harbor Bennett claimed 81 200 for three years,
interest its assumed value OF $50 000 So 900 Tor its
depreciation during the same period whereas the total
aumber of days OF its employment on this work was
sut 800.
The amount paid by Bennett for towing according to
,s time book, AGA 65; the amount claimed by
aim 81 057 rs.
The total days performed by his dredges accord
ne 10 his books In the Ohio basin, 240 Eric
Basin 149; Black Rock Harbor 500; making in all 6gs
Vow Mr. Bennett testines that 500 per day each was
mi Tor the use of his dredges and appurte
ances This Tor COS days would yield on the three
contracts 500, 800
He actually received, at his contract prices,
how his dredges would have earned, supposing their
work had been hired by the day at full prices
Here follows an extract from the testimony or Mr..
Bennett, substantiatnR the allegations regarding the
lredgIng frauds.
IL appears from the testimony OF MT Thaddcus q
Davis that besides acting counsel In this last award
both for the State and for the administering down