The New York herald., 1875-10-21
THE CANAL FRAUDS.
Seventh Report Of the Canal lnVesti-
eating Commission.
GEORGE D. LORDS OPERATIONS.
Estimated Cost Compared with Ac-
tual Expenditure.
BrFFMO CONTRACTS AND STATE OFFICERS.

The following Is the seventh report Of the Canal In
yestigating Commission and refers Buffalo contracts:
70 His Excelency SAMUEL J. TILDEN Governor Of tho
state OF New York
CONSEQUENCE Of the gale Oh the lakes referred 10
IN our ffh report the gravity Of which Is nowhere
manifest il The magnitude Of the Legislative appro-
pratton made 70 Lord for repairing them furnished
pretext for passing another act 'f0r protecting the
Eric Canal from the encr0achments Of Lake Erie by
extending the Black Rock breakwatcr southwark from
he entrance OF Black Rock harbor to the
Erie basin, distance Of one mile, and
aprroprating the sum of $4,000 for the pur-
pose contract for this work was let on the 9th Of
August 1870 ID Charles skinner who, on the 7th
OF the following MONTH assigned Il TO George u. Lord
Lord agreed perform the whole work for $45 GOO,
but the contract not proving as remuneratve as was
expected or interfering in some way, perhaps with
other arrangements which were more So was aban-
doned and on motion or John y. Fay, then Canal
Commissioner cancelled on the oath day OF June,
1873. The work done up to that time was estim-
ated 10 the contractor at 1899. The Lcgis-
lature OF 1873 made additional appropriation
for This same work Of SIS 00O and the l+th OF Oco
Der 1873 contract was let 70 Clark Bennett TO COM
pete il FOR the gross Of $50 720 10 was not COM
peted for that amount An additional appropriation Of
$40 600 made for continuing Il by the Legislature
OF 1874 Under color of this contract however, the
contractors have already been allowed the sum oL
Sl5I1 which is more than 600 in excess Of
what Their contract entitled them 70, and over
$ll 900 In excess Of the amount actually ap-
proprated for the work. and Il s sl ess than half
completed At the past rate Of expenditure this
eimproyementi viii cost the State over S375 600 for
no part Of which have been able % ind any good
excuse The Central Railroad runs between the canal
and the bay. y affords The canal All the protection It
needed from tie storms 81 Lake Erie and if 1t did not
the greatest possible damage that the canal could sus
tain from tho gales Of the lake would bear sensible
proportion the interest upon the expedure already
made not TO speak Of that which the continuation OF
the work must involve. The facility with which
the cost of this work has already
swollen to several times the original
price, Is another illustration Of class of canal
phenomena which our investigation has by this time
made familiar 20 you. The contract let without
quired and without any convenient means of verifying
the estimates Of the engineers.
ON the day that Skinner took this contract for
extending the Black Rock breakwater August 6, 1870,
he took another contract for deepening and i'm
proving the narrow canal in Black Rock har-
Dor for s45,300; and on the same day. the
nh OF the following month that he assigned the first
he assigned the second contract to George D. Lord.
JARVIS Lord and William Mudgett were their suretes.
BY the terms of his contract this work was be
finished before the 1st OF April 1871.
on the lst Of August, 1871, another contract was
awarded TO Edward W. williams for .crib and vertical
waln and cutting bend or projection in towing path
on guard,lock section AZ Black Rock, and cleaning
out mouth Of millrace leading from the harbor
at Lower Black Rock to mills Of Thornton y
Co. and others 4 for SIS, 25l. Williams only an
instrument Of George D. Lord to whom he assigned
this contract in which he held only ancmlal interest
within ten days after it awarded TO him The
sureties were William Mudgett and George p. Lord
himself As these two contracts related 70 contnu-
Gus plece Of work, and as George ID. Lord was pro-
prietor Of BOTH shall henceforth speak Of them as
his. The work done by Lord under them consisted in
deepening 400 feet OF the old canal prism, the
construction OF 1876 linear feet Of crib work
and about l. $50 linear feet Of dry vertical wall and
about 600 linear feet ofverea retaining wall III cement
The walls last mentioned were badly founded anc
composed Of such inferior stone and badly laid tha
large sections Of them had already fallen, when VIZ
visited them the spring, and others bulged and
must be rebuilt from the foundation. The Other
vertical wall was very much distorted, and Of quality
below that required by the specification For the work
above named, which constituted but very inconsider-
able portion Of the work covered BY these contracts,
LORD received S12 l07 06 and then asked the Canal
Board to cancel his unfinished contract Mr. Fay was
again his advocate, and made report in favor of
leasing him. and on the 6h Of August, 1872 this con
tract also cancelled
THE SKINNER AND WILLIAMS CONTRACTS
We will now continue the history Of the Skinner and
Williams contracts Of which Lord the real propri-
etor. On the Both Of August 1873 and only few days
after Lords contract cancelled the Board Of Canal
Commissioners made contract with Edward 3. Van
Duzen for deepening and Improving the canal, from
slip number three 70 York street and thence 10 the
head Of Black Rock Harbor, and including the deepen
crib work through the narrow part of SAID
harbor extending thence to the broad part
OF said harbor about 1900 feet
below the Ferry street bridge in the city Of Buffalo =
THIS embraced besides the work covered by
the 1knnerLord contract just cancelled extension
Of The division bank 81 crib work some LOO feet fur
ther below Ferry street bridge Van Dusen's bid for
this work amounted TO sl24. 500.
On the 2lst of the following January Van Dusen
asked TIE Canal Board p cancel this contract also after
endurc 81 less than SO COO upon the pretext
that the discharge from the sewers Of Buffalo
into the portion q the canal he was required
20 dram imposed upon him unforeseen expense
Mt Van Duscns remedy for this sewer-drainage into
the canal was against tie city or Buffalo III anywhere
and not against the state and though nothing what
ever had occurred O invalqate his contract DIM
ish his responsibility or executing ii the Canal Board
on the motion of John p. Fay Canal Commissioner
granted his application. Without waiting for the action
o the Canal Board however. Van Dusen the 10Th Of
February, abandoned the work Mr Fay the Canal
Commissioner Immediately. and without any Interrupt
ton Of H. took charge Of the work under the pretext
having It ready for sprng navigation, and in The course
OF Tour months expended me sum of sl9 59 s cut Of
fund which had been appropriated by the state FOR
the prosecution Of this work only under contracts 10
be let TO the lowest bidder. By the terms of Van
Dusens contract it the duty of The Canal
Commissioner To have collected Els $40 900 81
expenses on his work ii they were ncces-
core rom Van On.en hineeir' T,,s C,,r9
sioner not only failed to make this reclamation.
but when the question came UP ior anal decision the
Canal Board IN June, and alter tie money had been
spent, Mr. Fay himself moved that Van Dlscns appi.
cation for the cancellation Of his contract be granted
and by his discharged Van Duscn, far AS i
possible for the Canal Board 70 40 so from his
liabilities to the Stale for this money, without exsct!ns
any forfeiture making any deductions for worA
done on contractors account
Ii would appear from the testimony that though Nr
Van Daseu released from hs lrs contract through
the friendly intervention or Mr. Fay he was still inter
4 contract for the prosecution OF substantially
the same work at much higher prices and finally re-
ceycd the generous premium OF $4,000 Tor whatever
portion oi Its interest lie sold 70 Clark Bennett %
the 9th 81 May following the original let
ting Of this contract 70 Mowry, the Legisla
ture appropriated $4,000 more Tor com
peting division bank ana work connected therewIth
in Black ROCK Ha1b0r 10 separate the canal from
and make ID Independent Of the harbOr"
When became apparent TO the contractors, Clark 4
Bennett that, owing 70 the gross underestimate Of
quantities by the Division Engineer, the original ap-
preparations would be exhausted before the work was
more than hlf done. they addressed themselves TO
Tha6deus "a DAVIS 0f Buffalo, Of whose services one
member oi The hrm Al least, had had frequent occa-
eons before - avail himself tO procure the authority Or
the 1ahal Board io applying mmed aiely the whole Of
the Appropriation Y their work and their wishes pre-
vailed
A. Tie conduct of Mr Davis this aud other trans
actions developed before tAs Commission nov under
invest cation uy TIE criminal courts of the cry Of Buff
iao s unnecessary ior ns V express euy opinion
70 the statutory Liabilities lie may have incurred n lis
relations WIN Bennett X Co ana the Lords. We can
not However, f0r1ear expressing conviction thar il
is reproach 70 the state tAat man protesting ana
habiiua3y acting upon sach loose notions III
official duty should hold position III such
dignity and responsibility AS that IN Canal Am.
pralscr And yet in this and our preceding reports
have cited only part Of the transactions ID which
Mr. Davis appears TO have prostituted bis Official pogi-
tion TO private ends, viii more fully appear
The very step Ia this history reveals Of them
Tie somewhat cursory examination 81 the Buffalo work
III Apr last ~ this Commission suilccd to make L
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