The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-31
DEPARTMENT on JUSTICE.
William Z. Dodge and Judge Davis Be-
fore the Investigating Committee.
FACTS ABOUT THE MolETY CASE.
adjournment Of the Investigation After
Eight Days Work.

The Congressional subcommittee, which has been
for the past week investigating the United States Cir
cult and District courts the Marshal's Office and tho
District Attorneys department, well gathering
facts Us TO the working OF the election laws this city,
held its final SESSION yesterday ut the Aston House
Mr. T. r. Meade, tho chairman OF tho sub committee,
Mr. cauned, the chairman OF tho full committee on
tho Department Of Justice, and Mr.. Joyce tho rcpub-
lican member ofths subcommittee were present, Mr.
Cochrane being absent
William E. hodge was examined as to the facts In tho
clIknown case Of Phelps, Dodgc& Co. In mtg te.ti-
mcny ho stated that his firm settled the governments
claim against them for $4,000. but including the
costs, &c the total amount paid footed up so71 ooo
His firm never paid Judge DAVIS dollar,
directly or indirectly, and never gave any one
OF their counsel, Messrs wakcman, Fullerton
and Knox, any money for such purpose. He went
to Washington TO see Mr.. Boutwell, and had an inter-
view with him his house. the Secretary being sick at
the time, and described TO him Jaync's course in tho
case He thought II better 10 settle at $3.50 QUO than
to lose $3.50 900 MORE 1t alleged that the gov
agents ella med the total involved TO
DO ST. 600 After the most careful investigation Of
the books these agents found that the most the r
regularties against the governments regulations could
not be made out at than covered by so, 0OO
and the duty this would exceed ST. 400 ST. 800
Witness made the first offer OF settlement within a
week after being appraised OF the claim He
never offered to pay $500, 600 IN settlement.
There doubt any time in his
mind but that General Butler got portion of tho
money paid He supposed that Jayne could tell what
became Of that money IL he could be believed oath.
Senator Conkling In consultation with Butler
Bliss, Jayne, Latin and Cornell He looked on Conk-
ling the general adviser, but particularly for his
friend Latin. He considered that improper means
rcsortcd to for the purpose OF extorton from tho
TACT that there liability have ST. 900 cons
Gated Witness believed that he was an Injured man.
Tho next witness examined Judge Davis Mr..
Bliss predecessor United States District Attorney.
He SAID that about December % 1872. a carriage was
sent after HIM 10 convey him to the Custom House,
where he found Mr.. Jayne, Mr. Cornell and Mr. Latin
in Jayncs private room Jayne SAID that he had bccn
working up that case Of Phelps, Dodge & Co.
Witness then looked among the papers and
saw the affidavit OF one OF tie firms
former employees He gave y as his OPINION a. that
Jayne proposed to seize the papers OF the nrm, and
witness would not then asree TO that but consented
having affidavit prepared which should BIO sent 10
tho District Attorneys office the following morning.
and he would make application for the process TO the
courts and take II 10 the Custom House. He also
| ommendcd that before any executed u
letter should be addressed member OF the firm
announcing the condition Of affairs la response TO the
letter Mcssrs. Dodge and James went TO the Custom
House and were informed that their books and gurcs
would required. They SAID they we're willing
ccde to this request and that II could be proved they
had deirauded the government they were wiling to
imbursc tho Treasury. Witness did not see Jayne
again until December 30 when tho latter told him the
discoveries July equal his expectations. Jayne
that Phelps, Dodge a. CO. were willing 10 settle,
ana figured up the amount that should be paid
at S26o,0Ou but put as an pproximation the sum Of
| $25U00O Witness asked Jayne
THE GOVERNMENT ACTUALLY
by Phelps Dodge Co., and no answered about 81 600
Witness then SAID that Phelps Dodge Co would not
consent TO pay any such sum as that named by Jayne
TO bc demanded Witness returned 10 his Office with
tie understanding that tie Collector would direct MIN
suit Tor $500 COO and Tint the attorneys
would appear nt once ana give stipulation or cog
| noyltv Tor thtt sum- Witness met Mr.. Bliss At the
Office, the morning Of December 81, and offered
DIVIDE tho fees with hun IN the Phelps Doagc 4 Co.
Mr.. BLISS SAID that the case was not settled ;
that some ono had been playing with him, and that
there no use in his going TO The Custom House.
Witness went the Custom House. however and there
found Mr.. Latin, the Naval officer, and the Collector
and the thonghtl Mr. Cornell, Mr Jayne and Mr..
ConkIlng He stated To these gentlemen that he
wiling to them advice s could but wanted 1t
distinctly Understood that he would lot under any cir
cumstances take fec and hc never got fee in the
case.
The next witness examined was District Attorney
Bliss. He testified 10 SOM points about which he
not positive when last before the committee In the
case OF Woodruff Il Robinson the commenced
December 49, 1873 and settled January o, 1874. Tho
Indictment against BIa CHORD obtained November
Is, 1869; lett untouched by District Attorneys
ricrrepont and Davis and was "nolliei' January ),
l 10. In this case, Mr Bliss stated. human being
ever approached him, nor did human beng
know what action he proposed to take until after his
own dccsi TO the course he should pursue
made known In regard 10 Deputy Marshal Croly, he
SAID believed Croly 10 DO tho best detective he had
ever met At his twiincssD request, Croy devoted
most Of his time TO tho work OF the District Attorneys
Office, and there was an understanding between them
that this TO be done even at the risk Of Croy's
dismissal from the Secret Service Department
When Croly was dismissed he then
ploy Cd HIM District Attorneys Office a salary
which, with his pay as Deputy Marshal would amount
10 81 500 year i was owing TO croy's ingenuity
desired have croly keep aloof from The Secret
Service Department because he did not like some OF
the doings OF that department He thought there was
tendency among the secret Service agents inst-
gate to crime, proceeding which he could iolcr-
ate Since he became District Attorney there was DO
case ia his ONCE in which a Joseph Dcanc was the
principal Nor did II happen during tho same time
that any quantity OF cigars, foreign or domestic, ever
came TO hi oico In connection with official or
otherwise No case containing $1,000 cigars ever
came TO the office since ne became District Attorney
Mr.. Bliss invited the committee to interrogate
to any other points they might DESIRE but he was sub
jccicd TO no further cxamlnaio ION.
The committee remained 10 the Aston House during
the afternoon To Afford persons who might desire 10
testify an opportunity to do So Yesterday being
holiday. however, no witnesses appeared. AT about
seven o'clock IN the evening the committee
DECLARED ITS SESSIONS * THE CRY CONCLUDED,
and adjourned Mcssrs. Meade, Cauucd and
joyce lett for Washington by the o'clock
train During the eight days the committee has
been IN session II has WORK ed indclaii 2aby.
Not content with day sessions the members sai each
evening order 10 give persons chance testify
vino might be inconvenenccd By attending during The
afternoon. Mcssrs. Meade. Canlfeld aud cochranc
wore y.
kept vgilant watch Tor the interests OF the
publican party. There Is no doubt but that the Iabors
oi the committee VIII produce IN The United states
Courts this city beneficial results and Will lead to
much needed reform an many particulars Within the
time barely leading points could touched on IN the
investigation, but enough ELECTED to show that
there need OF legislation to remedy abuses. The
general belief that II John Davenport invcsti-
gated thoroughly most damaging proofs OF want 81
integrity would be discovered proved 10 be iaIa-
clous for witness attempted 10 impugn hs
private character, and the worst said OF hun was that
In mol ne
tho mvcstgnti directed against him, and the
committee has adjourned leaving him beyond all doubt
with the reputation OF being most able politician,
and tho man at tho present day most feared by all the
democratic ward politicians. Mt Meade and Mr Caui-
field both satisfied with the result OF their abors,
which were pretty constant and serious. and believe
they VIII be able 10 make such recommendations 10
Congress the subjects investigated as Will add 10
| the efficiency OF the departments investigated.