The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-27

CONTINUATION OF THE INVESTIGATION BIZ THE
CONGRESSIONAL coMMITTEE-How JOHN l.
DAVENPORT GOT THE FUNDS TO RUN THE DE-
TAns-THE SECRET SERVICE AND THE KU
KLUx FUNDS
on the Department OF Justice continued its investiga
ton yesterday at the Astor House.
The first witness examined was John H. Hows
resident OF Harlem, who was member Of the Grand
Jury before which the OF Mr. Gibson editor
OF the Harlem Local, when he seeking for an in
dictment against the Post once Department few
years since. Mr.. Gibson alleged that the Official in
charge OF station had maciously destroyed 1870 copies
Of his paper, and he therefore sought redress The
local quarrel in which Mr.. Gibson engaged was
serious and resulted in his having virio thrown his
face, assault which nearly destroyed his eycsighl
The witness gave startling account Of the manner in
which Gibson treated before tho Grand Jury all of
whose members highly respectable citizens When
Gibson was making his statement deputy marshal
entered tho Grand Jury and forclbly removed
him, giving as his authority order from District At
torney Bliss Assistant District Attorney Purdy then
appeared before the Grand Jury and explained that the
had been investigated and that there nothing
In 1t. Subsequently District Attorney Bliss appeared
and mado address to the purport warning the
Grand Jury that It was wrong to allow everybody 10
mako charges who desired to appear before that body
Those having complaints to make he SAID should pre-
sen. them through MIN. az then converted the Grand
Testimony was given on both sides. Some members or
the Grand Jury spoke TO Mr. Bliss and then said that
thoy were unwilling TO oppose him, though they be-
lcvcd Gibson not treated fairly. Finally vote
was taken As to Diminishing the case, and majority
II IL intended by tho committee to examine some other
members OF the Grand Jury that sat this case, to
see TO what extent the Grand Jury's deberaton was
bv nd Stnto
stated IN the testimony that letter the subject
written BY Postmaster James and that the same was
read by Mr. Bliss, and this letter, II IL can be pro-
cured will form part Of the record.
The next witness examined was H. W. Chapman,
testified bills for carriage hire time
In 1874 On the company's books the bill looted up
seventeen hundred aud some odd dollars. while the
bill sent IN TO tho government 81, 90l 10, and
was presented as voucher by Marshal Sharpe whose
name did not appear at all on the transfer company's
books. The responsible person to the transfer
pany was John l. Davenport, and Il was to him the
bill was sent and by him. after being altered in form,
u was paid Witness stated that there was reduction
Of ten per cent made in
DAvExroRrs PRIVATE CARRIAGE ACCOUNT
but the general bill made out in the regular way.
Transfer Company, corroborated tho testimony Vt Mr.
Chipman and to give an idea OF tho work done under
Davenports directions stated that election night In
1872 there wero sixty eight carriages Ia use.
Albert Cunz the Gsbursing clerk OF the Secret Service
Department IA this CITY, was subjected to lengthy sx-
animation. He gave an Interesting history OF how the
Secret Service Department has been made the head
quarters for the disbursement Of money for political
purposes There are two funds, he SAID called techni
cally tho sSccret Service fund" and tho "Ku Klux
fund.- money from the Custom Ho~e coming
~ nu NIX was
but It's purpose was partially adapted 10 the good Of tho
administration party II was from this fund that John
cal manipuatons, and several others this city also
rcceivsdpay from It. Among those mentioned by wit
he n%
an officer Of tho Secret Service. Another was Signor
TenneIl, an Italian, now deceased, who accom-
plishcd gentleman and was paid for his influence IN
controlling or the Italian residents who was
paid by Colonel whitley. The. Allen drew his money
where Messrs Nowcombc and NettIeshIp held
places for his benefit W. s. Copeland was also
S and s 70 c
troed to great extent tho italian vote, ana IN this
connection Colonel Whitley put up'' the money. Mr..
he wanted or got the money, but Colonel Whitley was
always opposed to his getting H. The lowest sum, as
$500, and the highest $4,000 Donnely drew his
money from tho regular Secret Service und In 1872,
when the appropriation was nearly run OUT the sum Of
5000 was sent on IRON tho Treasury at Washington
TO replenish tho supplies This money part Of the
appropriation In advance. made by the then Solicitor
General, Bristow. Witness gavc a history as 70
now COLONEL WHITLEY SUPPLIED MONEY
for the "showing round OF his friends under witness
guidance and how local clubs manipulated with
speeches and lager beer Mt the Coones expense In
tho early part OF mis- testimony this witness explained
how he had boon treated by the deputy marshals when
pcatcd In the safe burglary conspiracy, for which he
was indicted. Tho indictment was subsequently,
quashed appearing that he had nothing to do with
the affair During the ten days or 80 he was in
ody he went round with the two marshals Harrison
and Barnard, enjoying good time He would not
swear that he had given the marshns moro
than 500, though ne put In bill for about
$l35 Tor the expenses, which he thought was
fair, II cost himself good deal more than that
amount. not including social expenses
The next witness examined was Mr. Donnely. on
recall He produced receipts and other memoranda
explanatory OF his testimony OF the previous day. He
desired TO correct published that the usual
number OF mon employed was from forty TO hfty.
About forty the CHEST number and sometimes
there were only three men employed
George II. Wingatc was examined as to the prosecu-
ton OF Police Commission Charllck aud Gardner
1874 for removal OF inspectors Of election. He stated
the difficulties he met with In getting the attended
TO in District Attorney Phelps Office and how no
finally succeeded In securing conviction. Davenport,
hr SAID rather laughed in tho beginning at his Efforts
In regard TO the United States Circuit and District
witness said that though he did practise
much lawyer these courts, still he believed Is
tho general opinion Of practising lawyers that the
fees charged cxorbitant especially the fees In
bankruptcy cases neither was there any uniformity
in the charges In tho different courts, each court
seeming have rules and schedule OF rrices OF jts
own.
The committee will continue its Investigation 10 day