The New York Herald Newspaper, February 3, 1869, Page 3

WASHINGTON Report on the Frauds in the Interior Department. Diseussion on the Slave Trade Treaty in the Senate. Passage of the East River Bridge Bill in the House. Consideration of the Internal Reve- nue Bill. WASHINGTON, Feb. 2, 1869. Grant’s Cabinet. No one here, not even the angels, know who are to be in Grant’s Cabinet except the Secretary of the ‘Treasury, who is only known to Jay Cooke & Co. Grant does not know himself who are to be his head clerks, as Colonel Benton styled them very properly; for the constitutional advisers of the President are the United States Senate, and not the Cabinet, ~ he Public Debt Statement. The public debt statement, showing the condi- tion of the debt on the Ist imst., will be issued about Friday. Atpresent there is no indication of the exact increase which will be made. Tne heavy disbursements during the month, augmented by the payments of the interest on the debt, will probably make the increase very heavy. The Postal Telegraph Bill Defeated. The House Committee on Post Oilices and Post Roads decided to-day to report adversely upon Waghburne’s bill to construct a postal telegraph line between this city, New York and Boston. Previous to taking this action the committee heard state- ments from Mr. Orton, President of the Western Union Telegraph Company; Postmaster Burt, of Boston, and Mr. Stearns, President of the Franklin Telegraph Company. Orton, of course, opposed the bill, and submitted some further statements to show its impracticability. Postmaster Burt gave It as is opinion that the telegraph postal system would work well, and that at Boston, at least, it could be carried outhwithout any inconvenience to the department and with great benefit to the people, Mr. Stearns was of the same opinion, The members of the committee present when'it was decided to report against Washburne’s bill were Messrs. Farnsworth, chairman; Ferry, Lincoln, Lawrence of Pennsylvania, Hil) and Jobn- son. The absent members were Messrs. Reader, W. Clarke, Lyach and Fox. The chairman afterwards, it is said, secured the approbation of the absent members to what had been done in committee, so that the report against the bill might be made to the Mouse unanimously. The Franco-American Telegraph Cable. Mr. Charles C. Leigh, one of the original incorpo- rators in the bill enacted by the State of New York allowing the Franco-American company to lay a cable directly between that State and France, ap- peared before the Senate Foreign Relations Commit- tee this morning and made a long argument against Senator Morton’s proposition that all cable com- panies be required to obtain authority from Con- gress, He described his connection with the Franco- American enterprise, saying that he was prompted to undertake it for the reason that he thought it unwise that the Atlantic Cable Com- pany should monopolize the business of pending telegraphic despatches between Europe and America, especially during war, when all the ad- vantage would necessarily be on the side of Eng- jand. He though the tariff of the Anglo-American Company too high, also, and went to Europe to talk with capitalista there with a view to ascertaining their views in relation to getting up a new cable company that would have one of ite termini on the shore of the United States and transmit messages at lower rates. He was very successful in his mission, ‘and on returning got a charter from the New York Legislature for twenty years, and also a charter from the French government for an equal period. After accomplishing this much he had parted with hia interest in the project, and therefore now came before the committee without any more interest in the matter than an ordinary citizen. He came be- cause he deemed it would be unjust to the Franco- American company, after having made all its arrangements—2,000 miles of¢able having been man- ufactured, and the Great Eastern waiting to take it on board—to exact any conditions from the capital- ists who undertook the work in good faith and for ‘the pudtic good. Mr. Leigh concluded his argument by stating that for Congress at this juncture to pass ‘a bill forbidding the landing of any cable without au- thority from that body would, tn effect, be saying that when the Great Eastern has taken on board her freight she should not be allowed to land one end of it on the shore of New York. Wouid anybody deny that New York is the owner of the land under water all along her coast below low water mark out three leagues into the sea? Has she nota right to allow her own citizens to bring up from the depths of ocean a cable and lay it on her own property? Could she put such property to better use, and in doing so does she do any injustice to her own citizens, to sis- ter States, to the general government or to any in- terest except that of tne monopolists who eontrol the Anglo-American company? On the contrary New York encourages, in this way, capitalists to embark in an enterprise that must cheapen and facilitate the in- tercourse of our citizens and goverament with the governments and subjects of the Old World. Even supposing Congress to have the right to pass such a bill, 16 would be extremely unwise to do so; it would be simply compeiiing our citizens to pay ten times as much for conveying their thoughts to Rurope as would be the cost with a rival company estab- Ushed. It would be attempting to chain thought and ideas to a single channel, while a new avenue is ready to be opened over the broad Atian- tic that would be accessible to ail and be accommo- dating particularly to daily and weekly papers, which are now put to such an enormous expense in supplying the public with hourly news over the cable. Mr. Leigh's address was unexpected, as it was generally supposed that he was enlisted on the other sie of the question, He protests, however, that he couid not be so disionorable, after selling ‘his interest in good faith, as to turn around and strive to injure the purchasers in the worst manner, Tho Fenians Confined tn British Prisons. The President replied to-day to the resolution of Representative Robinson, of New York, calting for the correspondence between the governments of Great Britain and the United States relative to Cos- tello and Warren, naturalized citizens of the United States now imprisoned in Great Britain, having been convicted of treason and felony. Minister Johnson = encloses @ letier from Costello, dated § Chatham Prison, in relation to his condition, Mr. Johnson replied to it on the 4th of November, and stated he snould not fail to send it to Washington as requested. Mr. Johnson does not offer ony remarks on this and similar cases. As official copies of the trials of Warren, Halpin, Cos- telloand McCafferty had recently reached him he trusted he would soon be able to send to Secretary Seward a brief but faithful summary of them, with some observations on each case, The correspond- ence with Lord Stanley and others enclosed has heretofore been published, and no additional docu ments are transmitted giving new official facts on the subject. ~ A despatch from Mr. Seward der 14, 1:68, says: bee rn ceipt of your de te ument—namely, €o) whien n a Cerning the treaty on the subject of natural a likewise concerning the imprisonment of Messrs. ‘arren and Costello. The explanations given by Lord Stanley may have satiai Parliament con- cerning the judicial severity maintained by the British government in'the case of Warren ‘and Con. tello, ‘They are, however, by no means satisfactory to the people of the United States, It is not to see What advantage the government poopie of Great Britain derive from M tem- ‘I have to acknowledge the re- of Al 29, with its accom- ’ =r irritation on of nation.” ‘4 despatch alr Seward to Mr ‘Sep- that Warren and tel soon be as but that the natural to t the Reasons i have heretofore ven iy it is desirable that the administration of vernment which is to come in here on the 4th of March, and the reconstructed administration of Great Britain, which is muppnees to be near at band, shall tind themselves ed of all the inter- trinslealydimeute have neverthsleas 36 100g 800 80 i cult, have nevei so painfully embarrassed both nations.’? MK, COSTELLO TO MINISTER JOHNSON. OcToBEr 10, 1868, ‘To Bon, Revanny JouNsON, United Stases Minister, Stx—i presume I be allowed to make a few juiries which I deem important for me to know, and would first respectfully inquire if you, sir, have received any instructions tn my case, and if so what those instructions are. Secondly—I would ask if (What a strange if!) I would ask if 1 am an American citizen? If so, it is a sublime privilege. Thirdly—if the United States government has taken any action’ in my case and what the likelihoods are of an eventual release and when? I will not tie you to @ month or two, I only wish to know the “there- abouts.” lama long tine wating, and am only ap- prehensive that the the end has not come. In the worst phases of life the inevitable ts more endurable than suspense, Jud from the present as well asthe past, my future not very cheerful, but of course events of importance may be transpiring in the outside world which, if known to me, might make me ik differently. I presume 700 sro aware, sir, that I am allowed to know abso- ately nothing on this or any other subject, but I am permitted to write a letter to my friends once in six months. I thought it would not be a bad idea to write to you Instead and hear, if possible, what the Prospects are of being rescued from this life, I Uhought to have written a@ special letter, 80 as not to interfere with my domestic letters, but the director, for some reasons well known to himself, denied me that privilege, It may be. in the whirl of more grave and important events, that the United States government has failed to meet the issue raised in wy case, or, as I have been conjectur- ing the republic may not wish to disturb the amica- ble relations existi with the mother country; or again, with Know Nothingism may be, as Hedge in the ascendancy, and hence the startling anomaly of one-third of theAmerican population proved to be, according to the letter and the spirit of English law, BrrCsh subjects. Truly, we may exclaim with Joab, “Was ever time in wonders richer?’ If I am to be condemned to penal servitude for enjoying liberty’s first born, freedom of 4 h; if words or even acts of mine while in the United States can make me amenable to British law, then I boldly assert that liberty is not to be found beneath the Stars and Stripes, and 1 brand that act of the legislature that conferred on me all the responsi- bilities but none of the advantages of an American citizen a8 an insult and a mockery. But let it ye known to whom it may concern that, de- ‘ading and miserable as my present position 1s, [ envy not the happiness of my fellow citizens who are placed buta step higher on the political ladder than the negro under the old regime, 1am not very pleasantly situated for letter writing, neither am I sure that this letter will reach you. I should like to give you some idea of prison discli- pline, but that is an interdicted subject, and no wonder. I would request thata copy, or, what is plea the original of this letter, be seut to ihe Presi- deut, tioping to receive a prompt and explicit reply I am, sif, your most obedient servant, AUG. ELLICOTT COSTELLO, Progress of the Tax Bill. ‘The House, in Committee of the Whole, made con- siderable progress with the Tax bill to-night. Com- mencing at the 121st section, where they left off last session, they reached the 139th section, where the bill commences to deal with the tax on distilled spirits and tobacco, At this point General Schenck moved to strike out all relating to these subjects in the bill, and offered as a substitute therefor the bill to impose a tax on distilled spirits and tobacco passed at the last session, which is the law now In force. This brought the committee Aown to the 253d section of the bill, leaving only thirty-six sectiqns to be considered, These relate to the tncome tax, the tax on legacies and distributive shares of personal property and the tax on succession to real estate. After General Schenck offered his amendment the committee adjourned, in order to allow it to be printed before considering it. It is not expected that any material changes will be made in the bill as respects whiskey and tobacco from the present law covering those articles. The present tax on whiskey has worked so well that the Ways and Means Commit- tee are opposed to any changes either for a decrease or an adva.ce, and it is not thought that any conside- rable number of members of the House will support such. Change should one be proposed. There are, however, some detects in the machinery of the pres- ent law, which have been developed by experience since it went into operation. An effort will be made to remedy these by amendment, and this may give rise to some discussion and consequent delay. It is the opinion of members of the Ways and Means Committee that two or three more evenings’ work will complete the bill tn Committee of the Whole. Should the House concur in the committee’s amend- ments, which is most probable, there is no reason why the bill may not be passed and sent to the Senate next week, It is questionable, however, how long that body will delay action on it. The Irrepressible African Again Before the ‘ Senate. When Senator Sumner ceases to talk of slavery and the slave trade it will only be wnen the King of Congo issues an emancipation proclamation and ex- tends universal suffrage to his dusky subjects. The proposition before the Senate yesterday and to-day was to strike out the appropriation giving $12,000 a year to three commissioners who were appointed some seven years ago to adjudicate in cases of cap- ture arising out of the African slave trade, The mo- tion to strike out was made by Senator Pat- terson, of New Hampshire, whom no one ever thought of charging with pro-lavery instincts. But Senator Sumner assumed to be hor- ror stricken at the idea of abating the pledge of ex- pense to which the government ts put one cent in the holy warfare against imaginary kidnappers of the ipnocent African on the coast of Guinea and Senegambia, and fell foul of Senator Patterson, comparing him to Slidelt for venturing to suggest me discontinuance of this $12,000 a year, paid for services never performed. It seems this country has already paid $87,000 to three commissioners, one of whom 1s supposed to reside in Cape Town, another in Sierra Leone and the third in New York, and none of whom was ever known to have a solitary case brought within a hundred miles of his jurisdic- tion. The Senator from Massachusetts wanted the appropriation continued indefinitely, and this snug little sum paid to three gentlemen who were no doubt sensible enough to take the money and spend it pleasantly in London or Paris. it was finally agreed to continue the appropriation and pay the money on condition that the trio of hitherto biessea commissioners remained at their posts and did the business for which they are pala. The inauguration Ball—Perplexities of the Committee, ‘The original Inauguration Ball Committee are stili diligently at work endeavoring to perfect a plan on which the te can be successfully carried through. The privilege of using the Treasury building for the purpose has been given by the pro quthori- ties, and now the more serioys rtion of their labors lies before, witn—the task of arranging the details Ad Specifying the classes and colors of citizens that shall be permitted to purchase tickets and engage in the festivities, In themeantime the political and social leaders of the colored citizens are on the alert to prevent their rights from being ig- nored, Itis claimed by some that the reply Gen. eral Grant gave the committee when requested to Say whether he would attend the ball was not re- garded in the light of a decided refusal, and hopes are entertained that if the matter can be successfully he will yet be prevailed upon to honor the entertainment with his presence. The Delegate from Wyoming. ‘The Committee on Elections to-day had up the case of J. H. Casement, claiming to be elected a dele- gate to Congress from the new Territory of Wyom- ing. It will be remembered that Casement is the man whose credentials were presented some time azo in the House, and whom Mr. B. B, Washburne stigmatized as an agent of the Pacific Ratiroad. It is said the committee will report in his favor; but it is doubtful if @ majority of the House will vote to admit him to a seat, The Alta Vela Case Revived. A memorial was presented to the Senate to-day by Messrs, Abraham B. Patterson and P. De Murgut- ondo, citizens of the United States, praying Congress to maintain American jurisdiction and protect the rights of the memorialists in the island of Alta Vela. ‘They claim the original discovery and occupation of the island, and go on to narrate, in very hard lan- Ruage, the conduct of Secretary Seward in interfer. ing with their rights and using his oMcial omee to promote the designs of certain New York speculators on this insulated mine of guano, They accuse him of complicity in these de- signs and of giving active advice and assistance towards their realization, They say he deliberately fabricated ® false decision purported to have been made by President Johnson in Cabinet council, and which the President disclaimed all knowledge of. By his arts they declare justice has been delayed and detrauded, and at the end of five years’ anxtous hoping after justice @ new company, with his aid, succeeded in getting fraudulent lease of Alta Vela from 8t. Domingo. Meeting of Senate Committees. ‘The Senate Committee on Post Ofices and Post Roads had a meeting to-day, but a quorum not being Present no business was done. Senator Pomeroy believes @ majority of the committee are in favor of the bill directing the Postmaster General to make @ contract for the mails with the Commercial Steam- ship Navigation Company. If this should pass the Senate there ts little hope left for the other schemes to establish ocean communication with Europe, unless money ad libitum is at their disposal, The Senate Committees on Pensions, Patents and Mines and Mining held meetings this morning aod trans acted some business of @ minor character. The Department of Home Affairs. Senator Henderson’s bill, introduced in the Senate, seems to strike out the plan for a much needed re- form. He proposes to establish a department in the government to be called “the Department of Home Affairs,” with a secretary at the head, holding a place in the Cabinet, Into this department are to be merged the bureaus respectively of education, Indians affairs, agriculture, mines and mining, patents and pensions, and thus do away with tho complicated machinery we possess at present. John P. Hale's Letter. John P. Hale's letter in Saturday's HERALD created some consternation and flery indignation in diplo- matic circles, Hale did right not to resign. When John Adams invited old Timothy Pickering to resign he replied that he was too old to commit political suicide, and if he (Adams) would have patience they would both have leave, without let or hindrance, to retire on the 4th of March next en- suing. The Acquisition of Mexico. ‘The leading star in Grant’s administration will be the acquisition of Mexico—even at the point of the bayonet. Consul to Copenhagen. The President nominated to the Senate to-day Thomas 8. Wilson, of California, to be consul at Co- penhagen. The Supreme Court. The following causes were argued in the Supreme Court to-day:— No. 61.—Solomon 1, Nicoli et al. vs. The United States. Appeal from the Court of Claims. Claim for duties paid under protest upon certain quanti- ties of liquor which had leaked out of the casks on the voyage in an importation by the claimants. Cause argued. ‘Nos. 65 and 66.—Steamer Siren, cargo and certain claimants vs. The United States; and steamer Siren, cargo and certain other claimants vs. same. Ap- peais from the District Courts for Massachusetts. Case of the prize Siren captured in February, 1865, in Ashley river, off Charleston, and condemnéd for violating the blockade. Argument commenced. Redemption of Mutilated Carrency. ‘The amount of mutilated fractional currency and United States notes being received at the redemption bureau of the Treasury Department for exchange is now greater than ever before and requires the force employed in that division to be at work until a much later hour in the day than usual. Since the 12th of last month the daily amounts received for redemp- tion from all quarters have been very heavy and seem to be increasing daily. Seven hundred thou- sand dollars were received to-day and a larger amount yesterday. The large sums returned for re- ,demption indicate that the original issue of United States currency is worn to an extent that interferes with its circulation. Custom House Decisions. The Secretary of the Treasury has decided that wheat, the product of the United States, is not liable to duty on account of its igen and from the ik of that vessel. The for one month, under article thirty- five of the warehouse regulations, does not apply where ie withdrawn for ex ton atone. ain in. must cee iene cent Gr tee 3 an stoke If dutiable articles are found therem, entry must be made thereof and duty og Under the first ee the act or June 27, i. all m4 rye had ey maspected by seigaie Gapcae or other officer of the customs at the first port of entry at which it shall arrive, and such officer is em) be ad to re- Ce the trunk, sack or other envelope containing e baggage to be opened or its key delivered to him; and a refusal to comply with such requirement torfeits the trunk or other envelope and if contents. it is doubtful whether the concealment of dutiable articles would carry with it more than the forfeiture of such article, By the fourth section of the act of July 18, 1866, dutiable articles concealed in for the purpose of evading the duties are forfeited, but not articles of If a ba; entry is mi and if upon examination dutiable articles are found not included in the entry, ali such articles are forfeited, and the ear, in whose bag- gage they are found is liable to forfeit and pay treble he value of such articles. No allowance can be made for leakage, evaporation or deterioration, &c., of goods in bonded warehouse. Such merchandise mf remain in warehouse if duty is paid thereon, and if exported within three years ts entitled to a return of duty. Drawback, however, is only allowed on the quantity and proof of the ‘article actually exported. New Mexican Politics. A telegram received to-day from Santa Fé says that J. F. Chaves is the unanimous nominee of the republican convention as delegate to Congress. Mr. Chaves is now here contesting the seat occupied by Mr. Clever. INTERIOR DEPARTMENT FRAUDS. Report of the Printing Committee of the House of Representatives—Gross Frauds in Stationery Contracts. WASHINGTON, Feb. 2, 1869, ‘The House Committee on Printing to whom was referred the resolution “directing them to investi- gate the stationery contracts of the Intertor Depart- ment, and what articles have been purchased as sta- tionery, and the manner in which stationery sup- plies have been furnished, and whether any articles have been procured in violation of law, and if so, to what amount and by whose order, and whether any have been paid for and not furnished,” submit the following report :— Your committee have devoted what time they couid spare to the investigation committed to them, and have taken a great deal of testimony and ex- amined much other evidence bearing on the subject. ‘The stationery contract for the Interior Depart- ment for 1868 was awarded to the highest bidder in- stead of the lowest by the ae ‘of how to bid, which made the column of units lowest, while we aggregate was highest. Whether itis an honest or au honorable method of awarding contracts we leave to be devermined after seeing how it is done, by an example taken from two of the dics. DEMPSEY & O'TOOLIS BID. Cents. 100,000 sheets bond paper, per sieet............ 124 Teams cap paper, best quality, per ream, 20 12 gross barrel pens, per gnss j lo sore fine pencils, asso’ Oy a wo = : COYLE & TOWER)’ BID. 100,000 sheets bond paper, per sheet... 124 reams best cap, per reau.. Total... 66.7 12 gross barrel pens, per goss. . 43 10 dozen pencils, assortal colors, per GOMER sce ed iocciaedbecvousesvecess Below is given what the agg’egate would amount to at the prices of the single inms:— 3 DEMPSEY & OTOULR. 100,000 sheets bond r, até cents. 124 reams paper, at 20 cens. w pens, at 3 cents. 10 dozen pencils, at 3 cen! ny © & Towers, while in below the te total they re ei 18 above them. It was system of bidding tiat the stationery con- tracts were given to Dempsey 4 O'Toole, whose bids instead of Blanchard & Mo- Another ing at for if any, goods ‘and for Yate orders where the profite are : to be sure and have & large Stpoe of ail such ordered at the clowe of yi contract, and change your bidding next time, going below cost where you have over- ri great reitance for profits, however, Is M1 the purchases outside the contract a schedul Which, for the Interior Department, excluding the Patent OMice, has been about fifteen per cent, and in the Patent seventy-five per cent. All articles not in schedule are charged a: fabulous es oe. the contract provides they shall be ed af the lowest market rates, A recent order from the Patent Ofice for thirty dozen gold pens with silver hanales was not compued with, and 6 @ subject of correspondence between the Secretary of the interior and the Commissioner of Patents on account of its extravagance, when it appeared that thirty dozen goid pens with silver handles by the contract cost but $2 10, and less than fifteen dozen wooden pen handles, The greatest abuses have been in the Patent Office, Where, heretofore, Congress exer- cised no control over the expenditures. We find that, in violation of the express provis- ions of the law, blank books have been pro- cured, trom July 1, 1867, to August 31, 1868, amount- Ing to $18,201 02, and at ‘oul wusiy exorbl- tant, We also find that they have procured printing against law, and in deflance of it, to the amount of $52,329, at prices which yg regen ge by their extravagance. This was the prac! Mr. Theaker and continued by Mr. Stout. When Commissioner Foote entered upon the duties of the office his attention was called to stationery bills for approval. Finding such quantities of goods , aud at such prices as to excite his atten- tion, he took time to make inquiries in regard to them, and became convinced the prices were beyond reason and the quantities uncalled for by the requirements of the office, Furtuer examina- ton convinced him that great frauds and abuses had been practised in the supplies. He made complaint to that effect to the Secretary of the Interior, who ordered @ commission to imvestigaie his com- pene. consisung of B. Ff, James, Norris eters and E. W. W. Griffin—one appointed by the contractors, one by the Commissioner and one by the Secretary. He discharged the messenger, ». J. Frasier, who certified to the delivery of the goods, aud placed Mr. Charles R. Thorees in charge of sup- plies and purchases on the 24th of September. He required all orders to be eniered upon au order book and all ‘heads of rooms to keep a pass book, upon which their requirementa were entered, an Me result is that the bills have averaged lees than $265 per month, with abundant supplies and @ larger stock on hand in January than when the gystem was commenced in September, ‘nis does not include blank books and printing, which are now procured where required by law. ‘The average bills for the three months preceding this cl Was $7,991 14, of which $4,135 65 was for blank books and printing, or nearly fifteen times a8 much as the same articles now cost. The inability of the Patent Office to account for the articles paid for is a still more disagreeaple matter to consider. Forty-six caveat books have been charged and paid for since February, 1863, at $40 and 4 each, while pot one of them can in the ollice. This is a book of printed forms, which could be of no use outside the office, as testified oy aii parties, 618,000 printed blanks, consisting of letters, decisions, &c., were charged and paid for, when less than 200,000 could be accounted for by the requirements of the office. Of tile-wrappers 80,000 were charged and paid for at @ cost of $57 per 1,000, and after making liberal esti- mates for those used and on hand18,000 cannot be accounted for. Of manila and large brown en- velopes, nine by twelve, 145,000 were charged and paid for, while the quantity on hand and used could not exceed 40,000, leaving unaccount- ed for 105,000, Of cards for models, 160,000 were charged and paid for at per thousand, while but 40,000 can be accounted for as used and on hand, leaving 110,000 unaccounted for, ‘The above articles could be of no use anywhere but in the legitimate business of the Patent Ofice, as sworn to by all parties. Vast quantities of other articles cannot be ac- counted for in the office; but as they might have been made useful elsewhere, may have been pur- joined, We give a few cases of the many in evi- dence:—Of eyelets, 1,820 boxes were paid for, but ‘only 890 boxes would be required for the business of the office; four and a half dozen press copy books bought and paid for, but none to be found; 890 sheets French tracing paper bought, seldom if ever used, and but twelve sheets on hand; 121 reams yellow envolope per bougiit, but not’ over 1035 reams can be ac- unted for; 1,006,000 envelopes paid ior, while the uses of the office would ammount to about 150,000, Of taffeta ribbon 10,100 pieces were paid for, and 1,999 gross of rubber bands, and there was a like ex- travagance in the other articlea, r ‘The malo: charged were as extravagant as the aqanul ies. We give a few cases:—Books worth $9 charged at $45; cash books, worth 35, charged a@t $25; cards, worth about $3 per thousand, are charged at $40; printu enveiopes, worth about $2 60 thousand, is charged tat $20 and $40; ruling, worth about $2 50 per thousand sheets, is charged at $50; printing 500,000 blanks, wort perhaps $2 per thousand, charged at $16 50 and $17. To give them all would become tedious. ‘The messenger who had custody of the goods and certified to their delivery certified to the correctness of the July bill, which ran from June 24 to July 24, 1868, amounting to £ 183 26, From July 3 to July 24 he was absent, and it was during this time that $5,833 26 out of the $7,183 26 are charged as delivered. ‘His assistant Kept a memorandum of ail the orders. given and the goods received in the absence of the eg ara the gross amount in value 1s less a2 How the commission who were appointed to inves- tigate the complaints made by Commisstouer Foote to the of the laterior, with all these facta in ‘before could find no evidence of thoyac id on the part of Lo linreetape' i bo report tary of the Inie- riot “that the loss to the office since July, 1867, has been $81,546 45,” 18 beyond our comprehension. evidence before them, and state Tepors that these contractors had charged im their bill tor one month and were paid for printing 17,000 nt heads more than they have ever delivered, at $140 per thousand, which are now procared at & cost of $25 per thousand, and that hey still hold 40,000 sheets of bond paper belonging to the government. It is difficult to conclude what would be an abuse if charging and Setting pay at this rate for work to the amount of $2,380 in one month more than was performed was not one. In another of the findings of this committee we were surprised, considering its attempted results. ‘They were limiced in their range of powers to the complaints made by the Patent Office, and when they decided to enter upon the consideration of the question whether Dempsey & O'Toole had a contract for undelivered bond paper, which was not a ma-ter of complaint and not legitimately before them, the Patent Office protested inst it. Yet with the law specifically requiring all contracts to be made in writing, after adv ing for proposals where the exige of the service do not lorbid the delay, they fot acontract verbally mnade for 600,000 sheets of bond paper at eight cents sheet, about half of which was undelivered and unpaid for, to exist, without any shown exigency, which would even warrant a purchase In open market, without a writ- ten agreement, without even a written order, but upon the testimony of one of the parties in inter- est—the statement of an employe of the Patent Oilice that the acting Commissioner said they would have to take the paper, coupied with the drawing of a warrant on the Treasury for $24,000 designed to be used for its payment. Having entered upon the consideration of that matter it is unaccountable, if they desired to have all the facts, why they should not have called General Stout, the acting comtis- sioner, a8 a witness, who is alleged to have made the contract and who was in close proximity to their place of sitting. The committee find the following facts trom the evidence in regard to this bond paper:—Philp & Solomons, former contractors for siationery with the Interior Departinent, held a contract for print- ing specifications with the Patent (mice, for which the otice furnished bond paper, buying it of Philp & Solomons at eight cents per sheei and using not far from 300,000 sheets per annum. When Dempsey & O'Toole obtained the Interior stationery contracts they claimed the right to turuish this paper as it was required, The matter became the subject of consider- ration between the contractors, the acting Commis- sioner and the Secretary of the Interior, and resulited in the purchase, at different times, of 51,000 sheets for patent heada, iste EE ple mes having 65,000 sheets on hand for printing specifications. General Stout, then acting commissioner, staies that he seat a communication to the Secretary of the Laterior advising the purchase of a large lot of bond paper, and stating that he would do so if ordered or granted permission, ‘his was given for 300,000 sheets, and & Warrant drawn for $24,000 to make papas aod advanced to the contractors, and a ond taken from them as security for the delivery of the paper, This stave committee who made the Interior Department, who say that it was known 0: one of their number that 300,000 sheets of bond paper had been pnrendsea bejore the pids were opened and hence they disregarded the bidding for that ar: ticle, knowing the government woud not want any. GEHEFAL Stout further testifies that he was given to fihderstand by the staff of his superior, the Secretary { oF Us Interior, that t would. ip GrtA™2 Lo have ot a ie quan |, and that he hada warren ara’ [dye 244,000, In anticipation of an ofder ent" i¢ purchase, for its payment; but as there immediate want for paper which would) warrant him in making the pur- chase, and as the directions to make the pur- chase did not come down, he addressed a cow- munication upon the matter to the Secretary of the Interior, to which he received no answer, and for that reagon declined to make any order for the paper. It is perhaps due to General Stout to say that he testified to in office temporarily as acting Commissioner, and followed the routine he found established and made no changes but such as he was authorized or directed to make by hus superior. It is also due toDempsey & O'Toole to state that we think they were warranted in believing the purchase would be effected, and had the paper in controversy manufactured in anticipation. ‘The law in regard to making contracts for sup- plies is very cleat and explicit; yet this commission, without any advertisement, without any urgent ne- cessity, Car aren written contract or written order, and upon mi Commissioner of Patents was ordered by the Secretary of the Interior to make payment for 300,000 si of bond paper at the price of $24,000. This will appear the more when we state that the whole amount of purchases for the Interior Berane anaes Pate ce reaus, eX ich @ contract Wwe ‘will amount to but little if any conti more in the last teen months than this single item, which the Commissioner of Patents 1s ordered ta pay, and which we believe Congress ought to for- bid for hese reasons, r tl It it was where the w would not allow and a written and it was ordered from @ contractor. he is bownd to furnish it at the lowest market prices. These contractors have furnished 361,000 sheets of bond paper and been NEW YORK HERALD, WEDNESDAY, FEBRUARY 3, 1869.—TRIPLE SHEET. paid $28,080. Its testified cost was $7,020; add Bitegn per cent for prolit, $1,063, and you have 0F3.. uct this from the amount paid and it ines ihews over Son.cid above @ fair profit on a bill of Or, transaction m a dif- 3 is proposed to expend without any benefit to the country or the world, The Senator from Massa- chusetis undertakes to prevent thls saving by saying that Mr. Joba made the same proposi- tion years ago. Mr. SumNuR—I did not say that;I sald he made a similar proj jon. _ ir. HenpRicks—Well, sir, what did that mean? Tender neve, thought we wos putting tical el ous! ie was pul lash over te shoulders of some Senator, I do not know how men feel when the lash 4 bi over their shoulders in that way. I do not think one Than has a right, tn a political discussion, to attempt judgment to ent the exercise of bher’s ualng the lash, as the Senator from ten cont: wo all articles not on the eche- | does, a8 though somebody sh ‘afraid duie at the lowest market price. We therefore | port a proposition because Sees Mr. Suda recommend the passage of tye following jomt neso- | made a similar proposition.” The from. Resolved by the House of f an treaty to make this tue Caled stalen of America In "fist | appropriation, and again be ee the lash. He the Secretary of the Interior Is herevyy directed not to receive | feels, profound regret that a Senator from New Eng- fF make payment med to | land Should make 30 il-coustdered a proposition a3 have been ordered of the for the Inte- | this amendment tn favor of the slave ‘Mr. rior t at a cost of and also that he with- | president, this lias notl e ". hold payment on any bills claimed to be due to sald contrac- with the siave tora; the sum of 82,830, charged and received for printing | trade. 1 called upon the tor yesterday to tell 17,000 patent heads, which work was not performed by them; | the te and the country what single act these also the of sheets of bond paper at elght had ever done to suppress the slave trade. ae ae ee Oe of (mea) bempry peeps fe could not tion any, but he inti thas unpaid bills the amount. ¢ of inelated in were ready if anything, should come in their t paid charged fe not inc! their contract) above te prices at which ike’ goods in open market, All ot which is respectfully submitted. A. H. LAFLIN, JACOB H, ELA. H. L, CAKE, THE FORTIETH CONGRESS. ‘Third Session. SENATE, WASHINGTON, Feb, 2, 1869. MEMORIALS AND PETITIONS. ‘The PRESIDENT presented several petitions and memorials, which were appropriately referred. Also @ communication from the Secretary o: the Interior in regard to an appropriation to carry out treaty stipulations with the Creek and Chickasaw Indians. Mr. PoMEROY,,(rep.) of Kan., presented a petition for woman suffrage 1n the District of Columbia and in the Territories. Referred to the Committee on the District of Columbia. On motion of Mr. TruMBULL, (rep.) of Ill, the Committee on the Judiciary was discharged from the furtner consideration of the peutions for woman suffrage. ‘the Carr laid before the Senate petitions asking that the constitution be so amended as to acknow- ledge the Almighty God as the source of ail authority and Jesus Christ as the ruler among the soap po uty on Sundry memortiais the iron and steel and petitions for an increase duty on haircloth were presented. ALIENATION OF GOVERNMENT GRANTS. On motion of Mr. SuMNER, (rep.) of Mass., the Committee on Foreign Relations were discharged from further consideration of the bill to prevent the alienation to foreiguers of grants or privileges from the United States; Mr. Doolittle’s joint resolation 11 relation to laying telegraph cables, and Mr. Morton’s resolution to prevent the landing of foreign sub- marine cables without the authority of Congress. REMISSION OF DUTIES UPON MACHINERY, Mr. WILLIAMS, (rep.) of Oregon, from the Commit- tee on Finance, reported the House bill in regard to the manufacturers’ tax, with amendments, so as to provide merely that all taxes upon navai machinery Jor the goverument which had not accrued before last April shali be remitted, THE AUTA VELA CLAIM. Mr. Vickers, (dem.) of Md., presented the memo- rial of Messrs. Patterson and ‘Murguiondo asking the government to intervene for the protection of their Tights to the Island of Alta Vela, Keierred to the Comunittee on Foreign Relations. TELEGRAPHIC COMMUNICATION WITH FOREIGN COUN- TRIES, * Mr. SumweR, from the Committee on Foreign Reia- tions, reported a bili relating to telegrapiuc commu- nication between the United States and a foreign country. Jt provides that whenever telegraplic communication shall hereafter be estabii: be- tween the United States and any foreign country by means of lines or cables of which any portions are within the jurisdiction of the United states the same shall be subject to the following stipufations and re- servations:— First—The United States government shall be entitled to the same or similar privileges with regard to coutrol and use of any such lines or cables and the lines or cables chereneah that, may, be lat, or otherwise be ex- ercised and enjo: ‘any foreign government ver. Serond-—The + nited States it shall at all thnes be us motaages Ly ast operator of, is own balece - wand {ts an o} o selection. Third—W hen noe otherwine fixed by for government messages aball be fixed by the Postmaster Fourth—The lines shall be kept open to the public forthe transmission for daily bicatlon et market azt commercial reports and Inteligehee, and alr mesangea shal be forwarded in the of their recelpt, except as hereinafter provided. ¥ ‘shail be, at all times, within the power of to determine the rates to be of m ‘and communications over such Iines or cables, and to lish such rules and regtations in relation thereto as may judge 4 Tinhocnefore extending any such ine or cable in or over Any water, shores or lands of the United States the corpora- tion in queation aball file with the Secretary of State a written acceptance of the terms and conditions of this bill, ‘second provides that, subject to the foregoing con- aitionr, the consent of Ce fs hereby given to the laying and maintaining of telegraphic lines and cables between the United States and foreign country, in and over our water and lands, subject, however, to any aud all Tights of property and’ State jurisdiction in and over the same; and provided also that the foregoing privileges shall not be enjoyed by any company whose line terminates in a forelgn country by which similar privileges are uot extended to companies incorporated in this country. TRANSFER OF LAND GRANTS. Mr. Drake, (rep.) of Mo., introduced a bili to authorize the trimsfer of lands granted to the Union Pacific Railroad, Eastern Division, between Denver and ned ot of its connection with thesUnion Pacific Railroad and the Denver Pacific Railroad, and to ex pedite the completion of the railroad to Denver,- Colorado, Referred to the Committee on the Pacific Railroads, It provides that all the rights aud privil ‘anted to the Easterp Division of the Union P road shall be extended to the Denver line a8 though it were a continuation of the same. The said companies are authorized to mortgage their respec- tive portions for an amount not exceeding $32,000 per mile; provided neither company shuil be en- titled to a subsidy m United States bonds by virtue of the foregoing pro REDUCTION OF THE ABMY. Mr. Wu.son introduced @ bili to authorize the con- solidation of infantry regiments and for other pur- poses, which was referred to the Committee on Miliary Atfuirs. It directs the Secretary of War, whenever any infantry regiment falls below the strength deemed necessary to its efficiency, to con- solidate with another and assign its oflicers to duty as fast as Vacancies occur; bat the number of tnfan- try regiments shall not be reduce® be!ow thirty. The bill authorizes the Secretary of War to offer for sale certam reai property of the United States at Harper's Ferry, Vergennes, Vt., and Rome, N. Y., and makes some regulations in to bounties under the act of July 45) 1866, the most important of Which t# that claims therefor must be presented before next Sep- tember. THE DREW THEOLOGICAL SEMINARY. Mr. SueeMan,(rep.) of Ohio, from the Committee on Finance, reported the bills for the relief of the Drew Theological Seminary of New Jersey and the University or Virginia, and asked that they suould be indefinitely postponed, i" Mr. PRELINGHUYSEN, (Tep.) of N. J., moved to lay the report on tne bill for the relief of the Drew Theo- logicai seminary on the table, as he Wished, at some future day, to say something about it. Tavied, THE BRIG OCBAN BELLE. Mr. MonGas, (rep.) of N. Y., from the Committee on Commerce, reported a bill for the relief of tue owners of hs e brig Vcean Belle and moved its immediate consideral Mr. HOWARD, (rep.) Of Mich., desired some ex- Dianation of the il, Which was given by Messrs. Morgan and Fessenden. The matter was furtuer dis- cussed by these Senators and by Mess ‘imes and Conness, until the expiration of the morning sour, , which brought up the unfinished business of yester- oat) (the Conswar and Diplomatic Appropriation THE DIPLOMATIC APPROPRIATION BIT. The pending amendment was that of Mr. SON, OL N. H., to reduce the annaai pay of the judges and arbitrators appointed under the treaty of 162 with Great Britain for the suppression of (ue slave trade to $100 and fifty doilars respectively. Mi, MORRILL, (rep). Of Me., said the treaty pro- vided for the establishment x hone fsa ¢ three such courts at three distiac ts, course the courts could yb’ ae aa Ht af the sam ¢ judges were to be cut off. hi Mowe “4 rep.) of Ind., remarked that the obligation under the treaty was just as Leyes | to keep the judges at the two polts on the coast of ica as at New York; yet he was informed that the ges assigned to those points did not reside there. Even by paying the sularies the treaty would led out. mee ‘Monet, of Me., insisted that the government ‘was bound to mai appropriation to carry out the provisions of ; treaty waether (he judges were oats or Not. mt ur, PArrRRSOS, (rep.) of N. H., said if he could he would strike the treaty out of existence, and the obj of bis amendment was to nuiitfy it, The Ju if they were at their posts, would have noth- ing to do; bui_ he, happened to know that the Cape Town judge had ‘not been in Africa for along time and regarded the courts as entirely tna: ary but if the courts must be conti a8 the ofice of Judge was but nominal, so should theit be. ir. MORTON moved to amend, by that the salaries of {ng judges shoud be p only for the time they reside at thelr respective ‘would like to know who the judges were. He had been in- formed that those assigned to Africa had uot been for the & ‘TER: there for years. Mr. SUMNER, (rep.) of Mass., in rept: the names ofthe fies Menae, Fromen Smith, at New York; Benjamin Prindle, Cape own George W. Paimer at Sterra Leone. If these ges were too long absent from their poste, the Department was to blame; but that was no gt he are! should violate @ treaty ihe Senavor from New » Patterson) disliked the so fn Jet_him proceed in tae regular way treaty to have tt, he did mt Fe ghey hayes ay rmina’ ecause thi ise were fiscless. Mr. HexpiticKs, dem.) of ind —!his is simply @ proposition ve save $12,000 to ihe Treasury, which it tinder als treaty over $10,000 of the Doopigk wae under over ol e's mol ior dolng nothing whatever; and the distinguished Senator irem ‘husetis would have this expen- dituve continue. What legislative construction ought to be given to this treaty? A reasonable one, a con- stcucuon which will carry out the paspous of the contracting partics. Iciaim, then, the proper legisiative construction of this treaty 1s that the occasion for the courts having ceased the force of the treaty itself, in that regard, has passed. If there are other provisions of the treaty that still have force and meaning in view of the purpose of the contracting parties, of course such provisions still stand. Lshali vote for this amendment because it proposes to save some money. It is monstrous to say that mea who reside in the city of New York should be paid jor duties which must be performed, if at on the coast of Africa, Mr. MoxToN—in my opinion this treaty shouid be soon terminated; but the argument that these courts should nob be continued because there have been Lo cases before them 1s not a good one. The treaty was altogether of @ preventive character, and its efficiency is to be estimaved by the extent of its success im preventing the slave trade. The treaty provides that nation stall Keep a feet on the coast of Africa for the capture of slavers and shall establish courts for their adjudica- tion, if this has been successtut as preventive ma- chinery, then the treaty is a success, and you might as well say that because the fleets make no captures of slavers they should therefore be calied home as to say that tue courts shouid be discontinued because they have no cases to adjudicate, whule 1b is owing to the presence of the fleets and the existence of te courts that there are no cases. But in order to carry out the treaty stipulation in regard to these courts the Judges must reside at the places where the courts are established, and therefore | have moved anamendment providing that they shall be paid only for the time they are it their posts, Mr. SuMNen—I think the amendiment of the Sen- ator from Inaiana meets the precise exigency. Mr. Parrerson—I think it entirely deiea‘s the ob- jectof my ainen?ment and leaves the matter just Wuere itis, My objection Is not that the judges do Dot stay at thelr posts, bat that there is no work for the judges to do, and that, therefore, we do not need the couris, Mr. MORRILL, (rep.) of Vt.—I suggest to the Senator that the judges might be allowed a per diem tor tne time they actually work. Mr. Parrenson—] would like that very well, be- ~cause it would give them nothing. Messrs. SUMNER and MoRTON said that that also would be a nullification of the treaty. Alter au animated discussion of points of order, which lasted over an hour, and developed # remark- able diversity of opinion on the part of Senators in regard to the rule, Mr. Patterson's amendment was voted down and Mr. Morton’s adopted as an amend- ment to the provision in the bill as reported by the committee. ‘the provision so amended was then agreed Wo, icaving the salaries of the judges and arbi- trators unchanged, but requiring their residence at their respective posits a8 a consideration of pay- ment. AMENDMENTS TO THE CONSTITUTION. Mr. WILSON, (rep.) Of Mass., introduced a joint resolution to submit to the tures of the seve- ral States for ratification the following articles of amendment to the constitutton:— ARTICLE 15, SECTION 1. AU the male citizens of the inited States, the several U 5Si of ‘States. now or bere- after comprebes ‘the Union, of of tw Qne and u of sound ti abi entitled to au equal vote in ali elections in the State re- of treason BEC. 2. to enforce, by ap- pine, United States to hold : ized by tie United ‘States or e color oF previous con dition 4 Sro.2 The: to euforce, by ap- article. THE HOME AFYAtES. Mr. HENDERSON introduced a bull to establish & De] ment of Home Afiairs. The department is to Rave ch of the General Land Ofice, mining inte- rests, Indian affairs, the Bareau of Freedinen and Avsadoned Lands and tue Bureau of Education, At hall-past four the Senate adjourned. HOUSE OF REPRESENTATIVES. WASHINGTON, Feb, 2, 1869, PENSIONS AWARDED. Mr. Pexitan, (rep.) of Me., from the Committee on Invalid Pensions, reported a bill giving to the widows of Brigadier General D. B. Bidwell and Brigadier Generai P. A. Hackelman pensions of $50 @ month, the former from the 19th of Octover, 1864, and the latter from the 3d of October, 1862. Passed. WITHHOLDING RAILROAD BONDS. Mr. SHANKS, (rep.) of Ind,, offered a resolution di- recting the Secretary of the Treasury in all cases where the government has aided in constracting railroads to withhoid bonds sufficient to secure the construction of a first class railroad. Kelerred ww the Committee on Appropriations, THE PARAGUAYAN DIFFICULTIES. Mr. ROBINSON, (dem.) of N. Y., offered directing the Secretary of the Navy to the correspondence of Rear Admiral € Davis, of the South Atlantic squadron, ¢ the dificulties with Paraguay. Adopved. COST OF DECORATING THE CAPIroL. Mr. HusBakp, (dem.) of Conn., offered a r. calling on the Secretary of the Interior for tion as to various ainounts paid jor works decorate the Capitol, statues, oll paintings, frescoes, &c., since the 1st of January, 1856, with the cames of the artists, wheter native or foreign, &c. Adopted, SENTENCE OF MILITARY TRIBUNALS, Mr. PAINE, (rep.) of Wis., from the Comutittee on nstruction, oifered # resolution cailing on the Secretary of War for information as to wheter any district Commander has tarned over for trial or pun- isiunent to the civ auchoriites of any reconstructed State auy persons wio had been wied, couvicied and sentenced by inilitary Wwivacais, » Adopied. PRINTING THR INTRENAL TAX BILL. Mr. SCHENCK, (rep.) of Ohio, offered a resoiution ‘to print 400 copies of the Internal Tax bili, with Wie amendments agreed to in Comunitiee of tue Whoic. THE PENSION LAWS. On motion of Mr. MILLER, (rep.) of Pa., it was or. dered that Thursday evening of uext week ve set apart for the cousideration of reports from (he Com- mittee on Invalid Pensions. The bill reiating to the operations of the Pension laws, Whicit was beipre the House severa! days last ‘week, came up as the regular business of the morn- ing hour. ir: Nincack, (dom.) of Ind., who had moved to recommit the bili with instructions to repors tt back with the second section struck oat (the section in relation to We misconduct of widows), withdrew that motion. Mr. Peruam said he would now allow any amend- ments to be offered to the vill, and Would then ask the House to vote upon the bili and amendments. Mr. Raum, (rep.) Of Il, moved to strike out the second section aad to substitute for it a section pro- viding that no female sioner shall forfeit her peusion by marriage. He said that he had always regarded the present rule as contrary to pubic policy, inasmuch as it discouraged marri Messrs, INGERSOLL, (rep.) of IIL, and Covopr, (rep.) of Pa., offered amendments to the same eifect substantially. Mr. MyBks,(rep.) of Pa., offered an amendment providing that the death of every enlisted mun in the service shal! be held to have been caused by the service, exceps where there is evidence that it has ‘been caused by the fault of the soldier, Lic made remarks illustrating the selfishness of the present acem, Various other amendments were offered and then the bill was ordered to be printed and recommuitted. THR EAST RIVER BRIDOR, Mr. Cook, (rep.) of Iil., trom the Committee on Roads and Canals, reporved “a bill toesiablisn a bridge across the river, between the cities of Brovkiyn and New York, @ post road.” that the bridge, to be constructed con pleted tn acconsancs with the law of ac the State ‘of New York, @ lawful structure and post road for the conveyance of the mails of the United jained the of the bill and stated that taare were only ten or ‘en vessels in the en- tire merchynt marine and navy that could not pass the teder eoted beige. : Ader the NisoN inade_avstacement to the like jot once ina any vessel Re ee go past Fulton ferry, where it is to be |. WOODWARD, dem.) ‘of to the bill as z) an ai lo wance a judicial Caan, (tem,) of tnd. that the ob- ‘snd i aca iets cock enjol of the authority of the ot New York to authoride fue erection Of any Obstacle over a branch ti water, Nr. Woobw aun anid that if he understood the bill it violated & and pri ie gore ment ih ant a wes qace tion \ ¥ a @ right bridge ‘Fiver by an i company pttondl CONTINUED ON TENTH PAGS