The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-20


business integrity and pronounced Impossible In Scrip
ture
They and others like them representing both
and lender practically given tho keys Of the
vaults whose guardians, themselves stockholders or
partners IN the companies societies and specializing
rings outside winked al tho thnly disguised recuia
tons and complaccntly pockecd their share OF the
plumber As though they mad not sinnod against the
prohibition Of any Officer agent borrowing
the money OF the bank. Proof OF fraud and dis
honesty Is not wanting in the following Instances
J. " w. vandenburg a pet oil the District gov
ernmsni Of protegs and favoritc contractor
for tho grand public improvements planned put
execution by tho Board OF Public Works. Tho report
says tho securities which vaudenburg borrowed
money from the bank were not worth iour ccrts
bushel as saabc securities evidences OF debt.
The actuary OF the bank himself. thea D.
l. Eaton, was persuaded to accept gra-
tuity from yandenburg half interest In
500 600 contract Tor pipe. Eaton put IN no
money OF his own, incurred risk responsibility
and had no trouble about except sign receipts for
his share Of the PROFITS But he used influence Of
his position to pass vandcnburxs paper the bank
counter aud the money thus carry
out the contract in which no Interested benc
lcary. This may not De steal; but as vandcnbuvg
still owes to the bank according the exhibit made by
tho books of that concern. $1t4 l64 81 which, how
over. he disputes tho ground that $40 900
0c0 Of his have boon disposed OF and
credit given him tho rest being hardly worth
about. tho freedmen dcposiiors have the consoa-
ton of knowing that they have been nceced ny Nm
irregnarity," to use tho polite and cxcupa-
tory phrase employed by tho present Commission
crs when compelled to allude TO the rascal
tiles Of their predecessors in the management
and control Of tho affairs OF the bnnk. But the
committee say tho vandenburg- Eaton .'irrcguarty
10 small IN actual crminaty pared with the Seneca
sandstone swndic. This bubble fancy stock gam
bio got up by H. D. Cooke, John L. Kidwcll and H. II.
Dodge, by which s62, 900 Of frocdmcn's good money
was drawn out worthless securities Every ono Of
the survivors IN this gross fraud and conspiracy-vx
henry D. Cooke, Lewis Clcphanc, Halctt Klbournc
and J. 0. Evans-shouid be indicted, tried and pun
shcd 10 the extent Of the law, Wills those who
pccunar,ly responsible should DO sued for the
recovery Of the money good securities. consisting In
part OF $50 600 first mortgage bonds Of thc Maryland
Freestone Mining and Manufacturing Company, OF
which tho bank robbed by the conspirators.
The committee cxculpato Leroy Tutto from actual
criminality, although his appears In the secret
agreement which was the compact Of fraud with Kill
bourn and Evans because he appears have been only
weak and unsuspcious tool OF mis- associates on the
nnanco committee OF the bank.
George w. Stickney, tho assistant actuary and after
Eaton actuary of he bank, is shown have been
only privy 10 the crooked transaction but the prnc
pal ACTOR in Others OF which fraudulent Of
the funds to his owa private one, and for which
he merits and should receive punishment.
Add to the steal pcrpctratcd tho bank by tho
officers, and others through the connvance OF its
officers the act Of forgery in the the Boston
teller OF the Washington branch and the way the freed
mems money won't is not difficult of comprehension.
Tho report signed by Douglass, chairman Brad
ford, ST. Enger, Riddle Hooker and Raney, tho last
named colored Mr. Frost agreed all the main
points. but dfssented from some OF the argument
THE FEDERAL crTICEs IN LoUIsIANA-ADD1-
TIoNAL EVIDENCE CONCERNING FRAUDS IN
THE NEW ORLEANS CUSTOM HOUSE
Tho Committee Federal Offices in Louisiana met
again to-day Hon. NJ. Wilson appeared as counsel Tor
Collector Casey. G. W. Ferguson continued his tcs-
timony and said that the duty the cgnrs which were
admitted guava jelly would about So 50Os
whilc the guava jolly, being fruit would DO admitted
free. He stated that he mistaken In his testimony
yesterday In saying that the duty oAsssvs Jry Was
ten cents per pound II was ciassed as fruit which
! was admitted duty free.
/ About hour was consumed In questions and
upon the given by witness yesterday
In regard TO the importation Of 900 cigars which
entered 10000. No important point was
brought except that witness admitted that OF
his information that transaction derived IRON
other parties Witness detailed the different salaries
he had received and tho method OF payment ana was
asked II no know anything aboutany fraudulent pay
rolls, and declined to answer. might eliminate
| himself
Q Did you ever sign anv payroll for moro money
than you received?
| Witness declined to answer, the ground that IL
might crminaIc himself Amer explanation as
10 how far he might without such examination,
he advised that no might answer yes no TO tho
question Of seong fraudulent payrolls. He answered
! yoa
| @ When did you see thenf A. During the
election of1s74; fraudulent payros made out in
the Custom House and money drawn them.
without completing this branch OF the evidence tho
committee adjourned.
CABINET sEssIoN-EARL DERBY's NOTE con-
sIDERRD-THE AMERICAN POSITION TO BE
ADHERED To-AFFAIRs on THE RIO GRANDE.
The Cabinet was in session today for than two
hours and tho meeting OF than ordinary i'm.
porancs nasmuch tho just received from Earl
Derby upon the Window extradition tho sub
ject OF great attention. The document read to
tho memboss Of tho Cabinet by Secretary Fish.
and at the conclusion Of the reading . general
conversation ensued upon the subject matter
OF tho communication. Secretary Fish will
reply TO Earl Derby; and while II 10 not learned
what the exact nature Of the response from this gov
crnment will be, It nevertheless be said that tho
position already held will BE adhered to- The tenor OF
the to-day was OF character TO Indicate
very clearly that the duty Of this government lies in
the abrogation OF oxtradition treaty with Grctt
Britain, though this may in some measure depend
upon the British note In reply 10 the next despatch
from the Secretary OF State 10 Earl Derby.
Secretary Robeson read telegram 70 the Cabinet
from Captain johnson, commanding the United Suites
naval forces tho Rio Grando saying that NatamOros
had been handed by les authorities the custody
OF tho German and American consula
Secretary Bristow detained at homo to-day by
sickness and the Treasury Department represented
al the meeting by Assistant Secretary Conant
With this exception al the members wero present
SENATOR BOOTH AND THE dREENBAcx con-