The New York Herald Newspaper, March 30, 1873, Page 6

6 MIE ERIE INVESTIGATION. The Story Told by the Sick Man, Frederick A. Lane. MORE DETAILS OF BRIBERY AND CORRUPTION The Testimony of President Wat- son and the Auditor Dunan. THE OLD DIRECTION AND THE NEW. The Assembly investigating committee on the Erie Railroad resumed yesterday morning at ten o'clock at the Fifth Avenue Hotel. On Friday night the committee sat in Mr. F. A. Lane’s house, on Forty-second street. Mr. Lane was too ill to at- tend, and in consequence his evidence had to be taken in his own room, where he lay sick in bed. His illness was of so serious a nature that he could not bear up with the presence of reporters, and the attendance of some half dozen members of the press was dispensed with, the committee consent- ing. It is diMcult to understand how he could Rave endured the fatigue of the inquiry with his enfeebied body, and it is still more difficult to con- yecture how the presence of the reporters, who would have sat still and said nothing, could have been 80 objectionable, The committee should have insisted on admitting the members of the press, Mr. Lane having no right to dictate to the committee the manner in which the investigation was to be conducted or who were to be present. Mr. Beach, who represents Mr. O'Doherty, was ad- mitted to the hearing, and cross-examined Mr. Lane, Through the kindness of Mr. Wight, one of the members of the committee, a very good sy- nopsis of the evidence rendered by Lane was fur- nished to the press. Itis given below. The evi- dence yesterday was not so sensational as that of the preceding day, but some interesting facts were elicited from President Watson and the Auditor, Dunan. The inquiry was held yesterday in the Board room of the Erie Ratlroad office, the com- mittee having adjourned there after remaining some time in private session at the hotel. LANE’S TESTIMONY. Was a director of the Erie Company before March, 1872; @ month or more before that time I met Mr. Henry Thompson at the Erie offices, and had a conversation with him about a change; told him that if a certain amount was paid I thought the directors would resign ; $500,000 was suggested ; afterwards saw Mr, Scott about it; he wanted the whole Board to go out, and would do nothing unless Mr, Gould went out; Mr. Willard made a proposition to Gould to pay him a large sum to go ut; afterwards, in a conversation with Mr. Gar- diner, 1 concluded the best way would be to make an arrangement with Mr. McHenry through Mr. O'Woherty; I called on him, and he suggested he could get @ much larger sum; the first despatch was sent by Mr. O'Doherty to McHenry; I consulted O'Doherty, because I knew he was an intimate friend of Mr. McHenry, who depended on his word; then followed the varidus cable despatches ; I think Isaw all of them; I made a distinct point that un- der no circumstances would I undertake the re- movalof Mr. Gould; I would only undertake to vive them a majority of the Board and give Mr. Gould the benefit of their aid; I thought him the best ratiroad man in the country; he is the only man who appreciated the Erie road; negotia- tions went on for some time, until 1 was informed by Mr. Barlow, Mr. O'Doherty or Mr, Thompson that other directors were NEGOTIATING WITH MR. SICKLES; Mr. Thompson told me some of the party had sent for him and had an interview with him; on tne same day Mr. Barlow asked me to meet Mr. Sickles, and I met Mr. Barlow and Mr, Thompson that eventug at Mr. Barlow’s house; the subject of payment was talked over; they put it quite low; I told them thought they ought to leave a margin; the next day Bariow wrote a desp. leaving the amount to be filled tn in blauk;aiter some talk I inserted an amount of, I think, some’ pounds; my recollect: u is that it was about £75,000; | had been connected with Barlow in other matters; my arrangement with him was that 1 was to receive $100,000 counsel fee and that during the year be would make me at least $200,000 in other enterprises; he wrote a letter to McHenry stating that after payment of expenses there would be only a small suin coming to ine, aud that ve had made avother arrangement with | them: i have seen nothing o1 the arrangement ye last year | borrowed $25,000 of McHenry, and ga him my note and $40,000 in bonds as urity ; he tokt me he would; I received $67,500 at the time of the revolution; the check never went through my bank account, it went to pay tor iron for another road; 1 made no arrangements with the other directors and uo payiments to them; the circular now produced is a printed copy of tue pri- vate circular J had printed in wiand, and 1 brought two or three o: them to this country; dur. ing the negotiation and before I saw Mr. kles I made up With Mr. Barlow a list 01 directors that L thought would be satisfactory, and named, among others, Mr, Barlow, U'Deherty and Gardiner; alte wards a Sickles ebjected to O'Polerty and Gardiner; there was then Axed a compensation of 25,00 toekch Of them fer taking their names off the list; Barlow fixed the p: erwards vy giving a drait on Meiienry ; the take of a clerk at Duncan & Si ‘a a larger amount, and Barlow telegraph McHenry only to pay $25,000; | went to curope days before McHenry arrived; b me with rge number of promises to supervise the new election; 1 kuow nothing of payments made by him with regard to that election, aad know nothing about the Biscuomsieim contract except What I saw in print; O'Doherty did everything he could in Kurepe to keep down the bonds by long staiements that they were iraudulent and not worth the paper they were written on, and tele- graphed to McHenry to know why he dared te do such & thing as let lis agents make the negotta- tions; I advised with Mr. sharpe, an eminent bar- rister, who advised a criminal action against Mr. © Doherty for blackmailing these securities; Ido not know of a banker in London who would have taken these securities at that time; Ido not con- sider the percentage a larg: was told that Mr. Sickies received £20,000; McHenry told me that he demanded £100,000; ‘but I supposed that £20,000 were paid by Biscionsheun. To Mr. Beach—Mr. U'Do! Gardiner that he bi y sent word to me by the circular, N’S STORY, nt oi the Erie Railroad S made President in July, Company, sworn—I wa no connection with the company pre- viously; lam not acquainted with the measures i brought about the change in March; | have ‘ned more about the means used since this in- igation commenced tham lever kuew befer Jast div of this company Was declared ¢ tne Lith of February last; the rate was seven cent om the preferred stock and one and th quarters upon the common stock ; the last finan atement made upon the 3ist of Decem 1s72; the acceun(s previous to the time we assum control were kept with the greatest irregulart the statement made by us was sol up alter a great deal of labor and was based upon papers and accounts im the oiice; the dividend was declared trom the profits of the road; I would only have declared it upon the fullest conviction that the net earnings justified the declaration; the system of keeping accounts in the office has been entirely changed; every dollar paid out is now entered upon the books; When I was elected president the understanding was that, no matter iow small a dividend was available, it should be declared; items are sometimes charged to the con- struction account which do not properly belong to it; the extension of the traek, the substitu. tien of iron tor wooden bridges, iron culverts for wooden culverts, all properly belong to the coustruction account; it would be possible to charge sums to repairs whicn properly belong to the construction account; the business of the road during the past six months has been larger, relative to the expenditure, than in pre- vious years; the indebtedness of the id might be increased by our system ef declaring dividends so long a8 the construction of the road was going on; «otherwise the profits would go to the stockholders, and, if they choose to buy up more of the capital, these profits would, of course, be increased; if the surplus ome would be more than sufficient to ay the usual dividend the surplus of that might sistently be charged to the construction ac- nt; Inever knew of more than seven per cent paid as a dividend by the Erie Railroad; the ipal and interest invested tn the construction of the Erie Railroad exceed $54,000,000, which is more than the whole amount o! stock; I am ac- quainted im @ general way With the terms of the archer contract; I have not had any statement ubmitted to me by him of the profits and losses of ‘his trade; I look mn the contract 4s unsound, [have taken steps to get rid of it; 1 tuink the conipany could do the business much MORE SATISFACTORY AND CHEAP} ny things required change, gradually to amend them; ion charged by Bischofsneim & 0. ln consideration gp! tue s vices rendered by NEW YORK HERALD, SUNDAY, MARCH 30, 1873—QUADRUPLE SHEET—WITH SUPPLEMENT. them, is not too large; they took risks which no one else would have taken in advancing us a loan; they have enhanced the credit of the company got suppose the advances were made by ischotsheim & Co. in @ purely Spacnisrive spirit; there has been a great.deal of misapprehension in relation to the terms of that bond contract; { don't know what amount of money was paid to General Sickles; I have no knowledge of the matter. To Mr, Wight—The contract with Mr. Archer can be terminated at sixty aay notice; I was present at the stockholders’ meeting when the resolution was adopted directing that Bischofsheim & Co, and Mr, McHenry should be reimbursed for the services they rendered in effecting the change; the account has never been laid betore us, and that is the reason it has never been paid; I heard that three-quarters of the stock was represented at the meeting when the resolution was adopted; I do not know whether or not the persons who were most active in urging the payments to Bischoffs- heim were persone who were working in his inter- est: I think if the account was handed in it would be a legitimate action to pay it; I do not know that there is a tacit understandi in the bond that this account should be lel in an unsettled condition; there were about one hundrea persons present when the resoiution was adopted by the stockholders; 1 have never heard that the names of the Board of Directors elected in July were submitted to Bischoffsheim & Co.; Isuppose the names were satisfactory; the acts of the stockholders are entirely distinct from those of the directors; I have never heard of the amount ofstock that Bischoffshem & Co. held at ee time of the overthrow of the Gould administra- on, To Mr. Babcock—The company claimed that Mr. Gould should make restitution; the amount paid by him was $9,011,000; in actual cash the payment was worth between six and seven millions; there isa contract with the company and Mr. Rams- dell; the opinion of the company ts that the con- tract is advantageous, the compensation moderate, and the company thought it better to continue it; I would change it if I thought there was anything wrong in it; Lam not in favor of contracts of the kind, however, and | intend, if possible, to get rid of all such contracts, rf To Mr. Beach—It was on the 11th of July that the meeting of stockholders was heid; there were a reat many proxiesin the meeting; the ordinary form of proxies 1n the railroads I represent is to vote for the election of officers and all other mat- ters that may come before the road; the vote of the stockholders to pay Bischoffsheim & Oo. was an incident of the meeting; the process adopted in the payment of the dividend was the usual one; the money from a variety of sources made a com- mon fund, from which the current expenses of the company were paid and the dividend declared; I cannot tell what amount of the money was drawn from the sale of convertible bonds; the capital of the re fo was not increased by the payment of the dividend; there are ten millions of convertible bonds; wnen the money is raised on these bonds it increases the capital of the company; the prac- tical effect of issuing the ten million bonds is to in- crease the capital of the company to that amount; the manner in which I have stated the nature of the issue of the convertible bonds is not a theoret- teal one; capital borrows from net earnings, and net earnings would have aright to pay back; it is not a sound principle to say that the ‘declaration of the dividend would increase the capital or the debt; such an idea 1s an absurdity; we could have paid the dividend BY BORROWING MONEY and charging it to the construction account; at the time of the declaration of the dividend I dare say some of the interest feli due; if the assistance given by Bischotfsheim & Co. was of @ speculative nature I do not know whether the compauy would have a right to pay back so large & commission; if the vouchers presented before the committee yoneriay of oneye paid in 1869 bore upon their back the stamp of the auditor of the Erie Railway, dated April, 1872, I cannot tell how it came to be put upon them, but I heard it was put on by & man who was afterwards discharged for un- faithfulness ; he had charge of the voucher depart- ment; his name is Finessey; I know ofa claim made by Mr. Vanderbilt for $80,000 being laid be- fore me; I knew nosing about it, and I directed that it should not be paid; I took it for granted that if the claim was § good one some evidence of the indebtedness would have been presented; the names of the directors who voted against the divi- dend being declared were Olyphant, Prime, Bab- cock and Johnson; the discussion in the board turned upon some of the points suggested by me; the Erie Railroad Company wishing to get to a new oil pomt on the Allegheny River, it was deemed important that the point should be reached, and a proposition was made that if the Atlantic and Great Western Railroad would extend to that point they would be reim- bursed out of the earnings of the extensien; the contract was made, and the Atlantic and Great Western is now taking steps to have the road built; there is no other instance in which the At- lantic is guaranteed any other contract; the roads leading to the ol point are the Erie, the Atlantic and Great Western and the Bear Creek; the financial condition of the Atlantic and Great Wemern at the time the contract was made is something I know nothing about; the financial reputation of the road was in some respects and in other respects bad, but the terms of the contract neither increased nor diminished the risk; I have heard that Mr, McHenry was largely in- terested in the Atlantic and Great Western, but I have no knowledge of the matter; [have hever heard that Mr. Barlow was largely interested in the road. | Mr, Barlow—I can answer for myself and say I don’t own a cent in the road, Evidence continued—I did not know that the contract with Bischoffsheim had anything to do | with the change in the direction; I understood that the change in the direction gave additional value to the stock in the market, but I never bought or sold a share of stock of any kind in my | lite; 1 understood that the money was advanced by Biscliotsheim & Co. without security; I had noth- | ing to do with the transactions and can speak with | no knowledge about them; there is a pending | claim against the Erie Railway for $1,200,000 on the part of the Atlantic and Great Western; there | was some kind of arrangement made between the roads about the matter; trustees were appointed on both sides; the agreement bas not been re- pudiated on the part ol the new direction, ‘10 Mr. Barlow—I did not discharge Mr. Wnite, the | treasurer, on the suggestion of Bischoitsheim; Messrs. Otis, White and Hilton were dismissed by me when I found that they were among | THE PERSONS BRIBED; | I learned this by the publication of Mr. O’Doherty's | letter, which remained tor a week uncontradicted ; | [thought that the fact of those gentiemen remain- | ing in the employ of the company would be preju- | dicial to the sale of the bonds in the London mar- | ket; I refused to agree to any declaration of a divi- dend until | had made a careful examination of the | accounts; I continued my examination of the ac- | counts of the company up to the moment the divi- | dend was declared; I had heard that Mr. O'Do- | herty had endeavored to destroy the credit of the | Erie Railroad im London by endeavoring to depre- | ciate the value of its securities. | ‘To Mr. Babcock—The indebtedaess of the Erie | Railroad Company has not been increased by the | declaration of the dividend, but it would have had more money in the treasury to-day if it bad not | been paid; the dividend did not necessitate in- | creased loans; the net earnings of the road pelane, to the stockolders, and the officers have no righ to appropriate them to construction without their | consent; as long as I am president of this road L | shall apply the earnings as the stockholders direct. ‘to Mr, Carpenter—At the time the dividend was declared we had the money on kand to pay the | March interest—$800,000; the statement made by | Mr. White L know nothing about; we put the ten millions of convertible bonds on the market last July ; the dividend was payable partly in New York and partly in London; there has been te sent to Londen to the company; the commission paid to Bischoifsheim & Co. was two and a half per cent, the usual commis- sion; itis not true that Bischoffsheim & Co. have charged a large amount of money for advertising the convertible bonds; I dont know whether bd if | claimed a large amount for advertising the consol dated bonds; there was a bill for the expenses the Erie Committee in London, S. H. Dunan sworn—I am the general auditor of the road; I have general knowledge of all the accounts of the company; it would be tmpossibie for me to see everything; 1 have tle account of the earnings of the road; the sources of the earnin, on general freights and passenger earnings, mats and express and miscellaneous sources; the re- turns ol the earnings come in reported by station agents once a month; the money remitted to the treasurer is credited to the station agent; the agent sends in a report of the | amount of freight received or delivered by him; | the freight is either prepaid or unpaid; way bills in all cases are transmitted; the item of earnings from coal last year was over $3,812,000; this is for the transportation of coal over our own line alone; we receive a large sum of cash from other roads, but thisis the net amount of the receipts; the pas- senger earnings for the same date were $3,450,000; we deduct all we pay to other roads for through tickets before we make up our account; the item of mails and express is over $700,000, and receipts from other sources, rents and property along the line and incidental earnings make up the entire account; I shall be prepared by Monday noon to give you a complete statement of the expeness; the ross receipta were over $12,000,000, the net earn- ings over $6,000,000; there are no earnings in this thathave not come from the usual sources; the amount of money expended on construction dur- ing the year Was about $2,000,000; the new engines and cars put on were gaaltional I have some general knowledge of the Bischoffsheim atairs and contract; the balance of the account has been drawn against Bischoffsheim by the company; the treasurer was directed to correspond with Bischofsheim & Co. and have a bill presented in which the items of their bill would be stated; Mr, Sherman has personal knowledge whether the ac- count is paid or not, but no account can be paid unless it is audited, The examination of Mr. Dunan was continued atgreat length, and at its conclusion the com- ita l adjourned until Monday morning at ten o'clock. FIRE IN LOUISVILLE, LovisviL.e, March 20, 1873, Firich’s furniture factory, on Preston street, was burned down at five o'clock this mornin building was a four story brick, and contained far- niture just made for the City Hall and a quantity of other stock. The total loss ts estimated at $50,000; insured for $24,000—in the Royal and Etna, | for $5,000 each; in the Queen, for 000; in the | Home, for $2,000; in the German, of isville, for 1} i = i tue Germau Security, of Meuiaville, | for 83, THE YOUNG INVESTIGATION. Meeting of the Committee of Saper- visors Yosterday—W hat County Auditor Earle Had to Say About the Alleged Frauds of the Clerk—The Inquiry Ad- jJourned Until Monday. The Committee of the Board of Supervisors on Civil Courts, to whom was referred the charge of alleged frauds against Mr. J. B. Young, Clerk to the Board, met yesterday morning, in the chamber of the Board of Aldermen. Some time after the hour appointed for the meeting a quorum of the committee was obtained, and there were present also Mr. J. B. Young and hia counsel, Mr. Rufus Andrews. No persons appeared before the com- mittee on the part of the county except Mr. Earle, the County Auditor, and after a short private consultation of thecommittee the members took their respective chairs, and proceeded to what subsequently resulted in a settlement of proce- dure as to the investigation. Supervisor Billings, the chairman of the com- Mittee, said that this investigation was com- menced under the authority of a resolution intro- duced on the 17th of March to the Board, There was every wish on the part of tke committee that this Investigation should be made, and we de- sire tomeet with some one who can furnish us with the requisite information. Notices had been sent to the office of the 7ridune, in which paper these charges were published, but no one has ap- peared from that office. Notice was sent to Mr. Earle, and Mr, Earle had appeared, but there was mobody present, he understood, that had any charge to make against Mr. Young; he believed that Mr. Karle possessed some information, but he Oe 0) know that it was preferred in the shape of a charge. Mr. Earle said that he appeared there in answer to the summons of the committee and to get all the information that it was in his power to get. He understood that the gentlemen were there as an investigating committee. He had no specific charges to make; he was not there for that pur- pose. He came there simply in answer to the summons. The Chairman—Have you, Mr. Earie, read the statement in the Tribune ? Mr. Karle said he did not know that he had read it thoroughly ; he had glanced it over. Supervisor Monheimer said that he thought no- tice should be given to all parties who had any in- formation in reference to these charges in a public war se that they might appear before the commit- 8. Supervisor Cooper said that the eommittee was appointed as an investigating committee, and he thought it was their duty to go en with the investi- ation and get at all the facts and not wait for ev! Sence coming to them. There was a public state- ment made, and it was the duty of the committee to ascertain its truth. Mr. Earle thought that there was presumptive evidence that the Supervisors were in possession of certain information in reference to their clerk, It was on the records of their minutes that a reso- lution had been submitted removing Mr. Young. This ‘was explained by several members of the committee as a resolution submitted oy Super. visor Vance; and Mr. Rufus Andrews, on behalf of Mr. Young, said that the resolution was offered for political purposes, and not because of any sus- icion of fraud. Ashort disussion then followed, in which Supervisor Cooper urged that the investi- gation be made as to the truth of the charges with any material that could be claimed. Mr. Earle said that he had in his possession, in his bureau, at the office, papers and veuchers on whcih the statement in the Zribune was undeabtedly founded. The figures were obtained by Mr. Henry F, Taintor, Supervisor Flannigan inquired whether Mr. Karle knew ef any misconduct of Mr. Young as shown in these papers ¢ Mr. Earle said that he could only judge from the papers in his session. They were warrants, ‘nd popularly known as the $6,000,000 warrants, and on which charges were brought against Mr. Connolly and Mr. Tweed. Mr, Hall was also charged, but he claimed that he afilxed his signa- ture ministerially. All the warrants he had re- ferred to bore the name of ‘J. B. Young, Clerk.” From his position as Clerk of the rd it was presumed that he had full knowledge of what was going on. The signature of the Clerk was affixed, not as a ministerial act, but upon a knowledge ef the facts, and it was his signature, given in his official capacity, that ave the warrant authority. It was clearly, there- re, his duty to investigate as to the integrity of the claim against the county. There were war- rants in his bureau amounting to nearly twent millions of dollars that bore his signature, and it was from these documents that the statement in the Tribune was made. He believed that the gen- tleman who had written that statement was ready : ocome before the committee aud state what he ew. . Andrews, counsel fer Mr. Young, ebjected to Earle making any statement that was not under oath, That statement was made im the presence of the reporters, and as the newspapers had tri every one of the great cases during the last two years he objected to statements being made that would not be made under oath. They were prepared to show that Mr. Young never had a cent of the money that was referred to in these charges, Mr. Earle said that he did not wishto appear either as persecutor er prosecutor. He was there as any other citizen was; and ashe happened to be County Auditor he was in possession of these vouchers, and at the commanu of the committee was compelled to present them, After a short discussion it was agreed to com- mence the investigation en Monday morning at eleven .o’clock in the Chamber of the Board of Aldermen, when all persons who can give any in- formation are asked by the committee to attend, A BANK ‘SMASH? IN NEW HAVEN, Judging from the New Haven Journal and Courier of yesterday, the suspension of Scranton & Co., of that city, 18 likely te bankrupt many per- sons, including small tradesmen, officials and poor ministers :— The excitement in reference to the snspension of the above firm increased yesterday owing to the nen-appearance of the premised eficial statement, We saw Mr. Scranton at the bank yesterday noon, and he informed us every effort was being made to finish the statement at the earliest possible mo- ment, and that it would probably be given -to the public on Monday. A general dispo- sition to grow uneasy and dissatisfied was manifested ester dey, though many were still contident that the bank might turn itself upon securities, and pay its indebtedness. That it May come out of the ordeal unharmed is the sin- cere Wish of all. Meanwhile, with trepidation, and in many cases intense anxiety, tie result is awaited. Scores have their every dollar in the bank. Many individual accounts are large, in some cases amounting to thousands of dollars. The bank is Lies Agree for funds belonging to estates, to charitable institutions, to religious societies, to widows and orphans. Our citizens have. had the utmost confidence in the bank, and deposits have ured into it from every quarter of the city, ‘om every branch of business and trade. The popularity of the bank has been wonderful. De- posits have been made lavishly without a shadow of thought of possible evil, such has been the un- bounded confidence reposed in the firm and its pularity. The amount of funds deposited has n great, and now that the suspension bas oc- curred fear has entered a thousand households. ‘The all-absorbing topic en the street is the suspe! sion. Every one has news to report of neighbors or fellow merchants or other business men who have: money deposited. In every hotel, in every store, en every street, inevery home the suspen- sion is discussed, One young mi a city oficial, has $900, his little all, in the bank. Another city oficial, has $225; another, the chief ofi- cial, $200 odd, A town official has $1,000, his all, in the bank. A merchant who lost heavily by fire not long ago, has, it is Pda pall $3,000 or $4,000, A clergyman had just deposite his half year’s salary. School Official has $5,000, money to pay for a house being erected, ‘Another, @ resident on Court street, $8,000. An ex-Judge of the City Court has large sum in trust, A State street merchant has a large sum remaining from the defunct Home Insurance company: deposited by him as trustee. An ex-army oflicer has $1,200; & prominent grocer, several thousands; a druggist firm, $3,000, part of it money belonging to an es- tate, The Grays have their monumental fund there, about $450; the Nash street mission, its funds about } @ merchant tailor, 800 ; a@ clothing house, $5,000; a grocery firm, $1,000; a newsdealer, $1,000; but to enumerate all would be a long task indeed, Others are deemed lucky ones because they drew out funds just beiore the suspension. One livery stable dealer drew out $1,300; a State street firm, $600. Numberless are the ramors which fy about, many of which grow as they yy. The visit of Mr, Scranton on Thursday to New York was discussed, Reports widely varying as to the nature and result of the errand were cir- culated, Rumors of aoe complications were dis- seminated. Every officer of the bank was impor- tuned for news. Mr. Scranton himself, evidently tired with the strain, was obliged to give frequent interviews, When urged to make a statement he replied that he wished to refrain until he could make one which would be definite and correct. He received assurances of undiminished friendship irom heavy apy ore and heartfelt sympathy at his situation, its changed hands yesterday and the night before, fifty cents on a dollar being paid in some cases, in others sixty and seventy-five cents, it is stated, one e heavy depositor, it is reported, purchased $1, more, at fifty cents on the dollar. Mr. Bet attorney jor the bank, was interviewed by depositors, but he assured them of his utter inability to state the bank’s condition, Meanwhile the denoument 1s awaited, |, a8 We have before stated, all sincerely the bank may emerge unscathed. THE ONTARIO LEGISLATURE PROROGUED, TORONTO, March 29, 1873, The Ontario Legislature was prorogued to-day by Lieutenant Governor Howland, who delivered the castomary speech and gave the royal assent © bills passed duriug the seagion. Ss + ART MATTERS. The Leavitt Art Gallery Yesterday and e ‘To-Morrow. No one will complain that enough pictures— good, vad and indifferent—have not been on ex- hibition and for sale during the past few months. Uptown and down town, from the Academy of Design down to Liberty street, and between Union square and Astor place, auctioneers, artists and exhibitors have been at work, and the voice of the bidder has been heard. Occasionally the season has been varied by a display ef fine art books the value of which has been enhanced by their anti- quarian associations, Something like a new departure is to be detected in the intermingling of pictures and articles of vertu visible yesterday afernoon and evening, and salable to-morrow aiternoon and evening, at the Leavitt Art Gal- lery. It 18 a sort of fe accomplished be- tween the boudoir and the picture ery, the drawing roem and the cabinet. Oil paintings and water colors vie with clocks and silver ware, and we wake from & dreamy admiration of Teniers, or Rolte, or Callow, to stumble against a Stemwi rand or become lost in the shadows of Imhotf uckle’s orchestrion, It would be a wast of time and English to give extravagant admiration to the pictures, hey comprise oil paintings, water colors, peaiele. chromos and engravings. A few of the ell paint- ings are choice, and among the picture depart- ment of the collection lurk many oppor- tunities or rare bargains, There are two coptes after Teniers; ‘‘salmon,” by H. Rolfe (the elder), of London; “Dogs,” by George Arm- eid; ‘Group of Children,” attributed tosir Joshua Reynolds; ‘Madon: ih bie from the origi- nai ofJ. Mazzolini; “Moonlight,” by Bell an excellent example of that artist’s style rm Yard in Ripley, Surrey,” and “Red Lion Inn, Sheere,’”’ two of the most interesting numbers of the collection, by G, Lara; “Shipping in Harbor,” by Callow, and about one hundred and ferty other pictures of wideiy different degrees of merit, The only water-color calling for mention is ‘The Place of St. Mark, Venice.”’ Twenty-five engravings, three chromos, and four pastels by G. G. Fish, con- stitute the remainder of the gathering. The miscellaneous department gives one much more to admire. A large orchestrion 18 placed against the south wall of the smaller room. {t was built by Imheit & Muckle, of Londen, and bought by its present possessor for not less than eight thousand dollars in gold, The masculine reader, if he ever indulged in lager beer, may poe sibly remember the immense orchestrion which once attracted visitors to a popular German saloon on Broadway. The Leavitt instrument ts to that one what champagne is to cider. It may be de- scribed as the sublimated essence of orchestra, in which band music is boiled down and given tn miniature, A new grand piano stands in majestic loneliness upon a handsome rug at the west end of the large apartment. Japanese vases grace marble pedestals and white mirror-tabies centrast with colored porcelain jars, Bohemian glassware is cheek by jowl with bronze and French Sevres compares With bisque. A par- lor centre table of satinwood, inlaid, brings with it associations from the Tuileries, and cost $1,500. A magic singing bird sports in a gaudy prison, and the aspirations we impute to it are mocked by the artificial fowers holding out false promises near. Then, there are Persian rugs, musical rabbits, Parian figures, Colt’s pistols, cut-glass cologne bot- tles, marble centre-pieces, French and antique clocks, walnut and roseweod cases, bronze ink- stands and candlesticks, smoking tables, mirror globes, porcelain bowls, music boxes, marble urns and Japanese card receivers. The silverware is of English sterling silver and embraces abeut forty lots, including all the shining paraphernalia of break- fast and dinner. Some dainty ice cream spoons match with some fruit ditto, and a heavily chased water jug is among the more attractive and unique pieces. All the time you are picking your way through this labyrinth of dilettanteism the orchestrion, with its eight barrels, keeps remind- ing you of “Zampa” and “Der Freischiltz,” with intercalations of ‘“Semiramide,” and various popular polkas and operas, until you almost make up your mind that it will be your fate to bid to music and to buy beating time. The miscellane- ous department will be sold to-morrow afternoen, at half-past three; the pictures, to-morrow night at eight. The ery was open to the public yester- day, and damsels and dowagers, connoisseurs and bargain-hunters, ranged there from ten A. M. to ten P, M, to their hearts’ content. The Kensett Pictures—End of the Sale. The sixth and last of the series of sales consti- tuting the Kensett auction came off last evening at Association Hall. All through the week the audiences had been large, nearly filling the lower floor of the hall, and including among their num- bers @ good many ladies, The pictures whicn bronght the iarges prices were “Beverly Coast, Massechusetts,” and “Among the Rocks.” The first-mentioned painting was sold on Monday even- ing for $1,600, the second on Wednesday evening for $1,700, Both were painted by Kensett, and the $1,600 one, having been left incomplete, had been finished by Mr. J. W. Casilear, The sales were at- tended with deep interest and warm feeling, and conducted by Mr. Somerville in good faith and in- tegrity. The back of the stage last night was adorned with a portrait of Mr. Kensett, surrounded with an exquisite wreath of natural fowers and surmounted by the Seventh regiment flag. Ap- pended’ are the suma obtained of $200 and up- wards:—Coast of Darien, Conn.—Rooten Point, $245; Chicorua, N. H., at Sunset, $200; Indian Council Ground, $360; Lake George, $290; Autumn on the Lake, $250; Lake George, $280; The Chief and the Squaw, Colorado, $240; Falls on the Winooski, Vt., $300; Theme from the Hudson, $300; Chicorua, from Friburg, $200; Study of an Old Chestnut, $200; Lake Champlain, $350; Autumn, $310; Kauterskill Clove, N. Y., $370; Near Geergetown, Colorado, $280; The Brook and Birches, $300; On the Missouri River, $290; The Flume, New Hampshire, $210; Black Mountain, 310; White Birches tn October, $290; Study of ocks at Conway, N. H., $300; Niagara Falls, $325; Old Birches and Rocks, $200; The Coast at Beverly, Mass, $275; The Cascade, $320; Mount Mansfield, from Lake Champlain, $305; On the Hudson River, $200; Afternoon in the Adirondacks, $305; In the Mountains, near Denver, volorado, $210; Snow: Range and Foot Hills frem the Valley of Valmeunt, Colorado, $200; Manchester Shore, $290; Mount Mansfield, from Mallet’s Bay, Lake Cham} $205; Oaks at Genesee, $210; Study in the A dack Mountains, $355. in, ren- THE WASHINGTON STREET TRAGEDY. Revelation of Shocking Bratality—Ker- win Still in Custody. An autopsy was performed yesterday by Deputy Coroner Beach on the body of Catherine Kerwin, aged forty-six years, who died at the Centre Street Hospital on Friday night from the effects ef the most brutal ill-treatment, alleged to have been re- ceived from her husband, Patrick Kerwin, @ laborer, aged forty-seven years, in thelr apart- Ments in the tenement house No. 61 Washington street, under circumstances which were fully detatled in the HERaLp of yesterday, which showed that tne body was well nourished and developed and comparatively tree from organic disease, but horri- bly nce disfigured. Several abrasions were found on the face, neck, limbs, showders and chesi, and there were severe contusions on the hips. The lower part of the abdomen had been terribly con- tused and lacerated, and death had clearly resulted from hemorrhage of one of the abdominal arteries, which is believed to have been ruptured by a kick. coroner Keen: who has the case in charge, is- sued an order for the commitment of Kerwin to wait the result of an inquest, which will be held at the Coroners’ office at eleven o'clock to-morrow morning. NEW YORK CITY. The police arrested 1,577 persons last week for various offences, There were 446 births, 120 marriages, 519 deaths and 43 still births in the city last week. Four thonsand six hundred and seventy vagrants were accommodated at the several station houses with lodging during the past week. ° Fire Marshal McSpedon reports twenty-three fires for the past week. The loss is estimated at $5,995, and the insurance $66,700. Eleven of these fires were the result of carelessness, Twelve buildings have been reported as unsafe during the week ending March 28, and plans for thirty-three new buildings have been submitted to the Department during the same time, The last of the free warm Winter dinners pro- vided for acwsboys and other needy children by the New York Juvenile Guardian Society, at 25 Park place, during the hey season, Will be given to-mor- row, at one o’ciock P. M. Prominent speakers will make addresses on the occasion, and the friends of the newsboys are invited to be present, Commissioner Van Nort, of the Department of Public Works, makes the following statement of public moneys received by his Department during the week ending yesterday (Saturday) :— BY THE COLLECTOR OF ASSESSMENTS, For Broaaway widening For Riverside Park open For other improvements. For water rent and penalti Orr Feber ras ot Vehdiags oa brcadvay: oid rd , ; ing. ba 8 ot roadway wi nn 17,990 Total receipts. $75,965 The uncollected balances on assessment lists in the office of the Collector of Assessments Amount VO $5,756.646 79, THE MAILS MUDDLE. Railroad Corporations in Combination Against the Government. Meeting of Monopoly Presi- dents in New York. General Creswell Defines His Position to a Herald Correspondent. He Applies to the Attorney Gen- eral for Instructions. The Presidents of the several railroad companies, whose names are signed to the appended letter, held a convention of two or three hours’ duration yesterday in the Directors’ department of the Grand Central depot, to take measures on the growing difficulties seemingly beginning to crop up between them and the railway mail transporta- tion companies, which Superintendent Bangs rep- resents, At the Convention held in Philadelphia no decisive measures were agreed on, nor does it seem that yesterday’s meeting has resulted in any definite conclusion, Everything was kept strictly private, however, with the exception of the letter underueath, which was mailed last evening to Washington to Mr. J. A. Oresswell, Postmaster General. The total difficulty consists in the expressed dis- Satisfaction of the railroad companies in being obliged, at least tacitly so, to transfer the postal cars attached to express trains at one third of the rates charged on the transfer of ordinary freight cars. This the companies naturally object to, and seem determined to exact due compensation from the railway mail transportation companies. Hence it is that Mr. Bangs has been negotiating with them for some time past to bringthe matter to a de- cisive arrangement, Pe There 18, on the other hand, an undercurrent of intelligence or report quite in eppostsion to the ac- tion of the railroad come tenlen which charges them with the design of altering the ae cee system to the disadvantage and inconvenience of the publi and the Postmaster General is said to look upon it as ap unwarranted attempt to overturn a system of postal transier which he is imtended to oppose. In case the railroad cempanies refuse to give up the strong position they have taken in the matter the Postmaster General of course will have to suc- cumb or represent to the Senate @ more judicious means of substituting government postal Jacilities equal, if not superior, to the present mode of mail transportation. The following is a true copy of the letter matied, after adoption by the convention, to the Postmas- ter General yesterday :— New Yonx, March 29, 1873, Hon. J, A. Creswait, Postmaster General, Washing. Your telegram of pentarsay, enncuncing to the President ot the see ia, Wilmington and Baltimore Railroad Company that the Senate, before adjourning, in- structed @ special committee to sit during the recess to consider and report to the t Congress upon the postal relations of the railroad com sand the government has beew submitted to us to-day. Believing as we do that Congress intended to allow the Postmaster General to make reasonable compensation to the railroad companies for the mail service, and being assured that they will do so, but painfully sensible that this intention is not carried out in the new act, it is with great satisfaction that we are advised of this recent favorable action of the Senate, which we confidentl: expect will lead to a most thorough investigation of fact and an impartial determination of what constitutesa reasonable compensation. We shall immediately petition the Senate Committee to grant to the railroad companies un early hearing, and we respectfully ask that the Postmaster General, or an authorized agent of his department, will be present thereat if granted. But, actuated by the same desire to serve the public which has induced us to furnish and run postal cars tor many years past, notwithstanding we have been denied on pay, whatsoever for the service, we shall, until a suilicient time shall have elapsed to ascertain the views of this special Senate Committee, continue to run them, and therefore be tend request that you will con- ich We, mer the bgp we igh wed ave eben the date of Janu- , last, suspended for résen' tae be ih ’ x VANDERBILT, per W. H. V..N. ¥. C. and H.R, RR. Co. ident Conneetic: RB. Co. Presi monnecticut Biver Co. Progen President Penn. RR. Co., per . K. President WYN Hy and i Bik. Co resident N. Y., N. H. and H. . ISAAU HINCKLEY, President P. W. and B.'RR. Co, The committee adjourned about half-past two P.M. The answer of the Postmaster General to the above document will give the railroad presi- dents an opportunity to state what further action they Intend to take on the matter—not until then do they propose to disclose their intentions, THE POSTMASTER GENERAL'S VIEWS. pace OR Eb ae Mr. Creswell Thinks the Government Can and Will Break Up the Combina- tion—His Letter to the Attorney General. WASHINGTON, March 29, 1878. The Postmaster General made the following re- marks to your correspondent this evening with reierence to the postal car difculty :— “They can’t preserve the solidity of their com- bination. We can always break it at some point or other, Take, for instance, the Western mails out of New York. We could secure one line, say the Erte Railway, and to that road we could throw all the mails and make it an object for it to give us two or three cars every day. Then we could pay that one railway for the entire weight of the mails, If it carries 50,000 pounds, under the last bill, it would be compensated for every pound. That would make @ very handsome thing for one rail- road. in such case that particular railroad would, of course, give out that it was the great mail line, and thus we could get the great Western mail through in good time, and only the people along the line of the roads that refuse to carry postal cars would be the sufferers, which would reduce it to a local fight between those roads and the people living along their line. Coming fur- ther South, the Baltimore and Ohio Railroad has offered to do anything we want them to do, and by the Ist of Jane, certainly by the ist of July, we shall despatch two lines of postal cars by that road, one starting from Baltimore and one from Washington by the Point of Rocks Railroad, which will be finished by that time. Thus all the mails between the East and West would be for- warded in due time. The railroads cannot keep up their combination against the government for another reason, The interests of all dif- fer; no two of them stand on pre- cisely the same footing. ‘The four great roads, the New York Central, the Erie, the Penn- sylvania Central and the Baltimore and Ohio rail- roads, are jealous and distrustful of one another. All the government has to do is to use one of them against the other. Therefore I don’t think that the railroads can maintain their combination against the government.” The Postmaster General farther informed your correspondent that Mr. Bangs, the Superintendent of Transportation, had telegraphed him yesterday that he expected a definite answer from the refrac- tory roads to-day; but no despatch having been re- ceived from Mr. Bangs since then, the Postmaster General believes that he left New York this even- ing and will be here to-morrow morning. Mr. Creswell has sent a letter to the Attorney General to-day, asking his opinion on all the ques- tions arising out of the complications with the railroad companies, and requesting him to define the powers of the Post Office Department. As the agent of the government the Postmaster General also propounded to him the following questions ;— Wirat additional legislation can @ongress pass upon the subject, and what is the duty of the Post Office Department under the existing legislation in case the railroads should refuse to run postal cars ? GENERAL ORESWELL’S LETTER 70 THE ATTORNEY GENERAL, In opposition to the statement made tn commu- nications published in the Philadelphia papers in behalf of the railroad companies participating in the present War upon the postal service, to the effect that none of the compantes who have pro- vided and run railway Post Office cars have heretofore received @ dollar more of com- pensation on that account, the Postmas- ter General shows in a letter this day ad- dressed to the Attorney General that in cases in which the utmost limit of compensation fixed by law had not been reached, the Department has paid additional rates, ranging from ten to twenty- description runnmg once a dayin each area tion, and that these additional rates have generally been readily, and sometimes eageriyy accepted by the railroad companies; that some ine deed have voluntarily offered to provide and rum such cars in advance of any application or sugges« tion on the part of the Department, and with full knowledge of the rates paid for similar servicg when performed at the Department’s request.. The Post Office Appropriation act, passed at tha late session of Congress, allows compensation at rates ranging from $25 to $50 per mule per annum for postal ears running once a day each way, ang does away with the restriction whereby, undeg previous laws, roads receiving the highest rate of pay were prevented from receiving any addy tional compensation on account of running postal cars, The Post Master General, im his letter, propounds several very importan€ interrogatories, Referring to the companies wh threaten to withdraw the postal cars on the 1st of April, he says:— ° The roads they control, centering at Ne York, the great Teommerelal emporium of ‘ne country—the point from and to which th largest proportion of the mail communication of the country radiates and converges—the exe cution of their threat would entail consequenced so serious that I feel constrained ‘to inquira whether the government, in its management of thd immense postal interests of the eitizens in whose behalf it acts, can be thus at the mercy of corpora tions or parties like these by whom this menacq is offered, or whether under the laws dev claring all railroads post and makin; it the duty of ti Postmaster Gene! to provide for the carriage of the on all post roads, er under any other law or laws, the Government possesses suilicient pewer, or cam have recourse to suitable measures to protect ie important interests entrusted to its custody an thus imperilied, Will you, therefore, be pleased, at tne earliest moment practicable, to communicatd to me your decision upon the points hereinaites menirat_—It Tairoad compantes refuse to carry ove! ntes their roads the matis of the United States and agents in charge thereof for ghe compensation prescribed be law, has the gerepnnneah ag repre sented by the Post Office Department, the right, and is it its duty, to convey mails and agents uf cars of its own over said road ? Second—If railroad companies offer to carry mails as freight or b: » and refuse tq provide suitable postal cars, and to transport suck arene or clerks as may be necessary to tak@ charge of and distribute such mails, thereby en dangering the safety and retarding the distribution and delivery thereol, is it the right and duty of t! government to provide and ran upon suc! ronda suitable cars for the due distribution and delivery of said mais ? 1 Third—Iis it not within the exclusive power of the department to interpret and enforce the la 80 far as to determine what ts right and preper the way of accommodations and safeguards for thé Re ripen es arse tion. and distril atlas of the @ compliance there the part of tallroad companies? vs ae Fou the department make other om greater compensation to railroad companies than ee d in the act of Congress of Mareh Fyth—In case the railroad compantes or any of them shall refuse to provide and run postal cars om their roads as heretofore for the com ation prescribed by law, advise this department as to extent and nature ofits powers under exist legislation to provide against the delays, losses: inconveniences resulting therefrom. Has Congress power under the constituy tion to confer upon this department greater au- thority and control over the railroads of tha country in connection with the postal service than that now Varepaspee and if so, state the extent anal ope of the legislative powers in that dire DEATH OF JOSEPH JACKSON A Murderous Assault of Three Year@ Ago Results in Death. An inquest was held yesterday by Coroner Kees nan {n relation to the death of Joseph Jackson, aged sixty years, at his residence, No. 50 We Ninth street, en last Friday, from cerebral apo plexy, following violence at the hands of thre@ thieves, on March 18, 1870, as then fully reported im the HmpaLp. It may be remembered that Mri Jackson, who was formerly a well-knowm pawr- broker in Grand stfeet, near Greene, waq @ preminent member of the Tammany Hall democracy, and also of the Americus Club. the time of-receiving his injuries it appeared that three unknown men had been seen watching hid store. Soon afterward they entered and prey sented him with a note purporting to have beem written by Moses Mekrbach, a brother of ex-Alder< man Mehrbach, who, according to the note, dee sired Mr. Jackson te call upon him at once on imd portant business, Mr. Jackson, suspecting thd genuineness of the missive, sent his shop bey ta ask Mr. Menrbach what was wanted. As soon ag the lad left the three strangers expressea a dex sire to examine some diamond Jewelry, andy while Mr. Jackson was in the act of show< oe them the jewelry, one of the fellea him to the floor by blo a upon the head with a long, old-fashioned iron clock weight. The miscreants then stole @ large quantity of jewelry and took Mr. Jackson’a watch from his pocket, aiter which they decamped, leaving him insensible on the floor. A few mo« ments later the boy—who had been told by Mr. Mebrbach, who suspected some sinister design om the part of those who had written the note, whicly was, of course, counterfeit, to run back quickly—~ returned and found his enrployer lying on the floor bleeding and debs lying. The polica were immediately notified and search was made for the robbers, but without avail. Meanwhile Mr. Jack< son partially recovered, and large rewards we shortly afterwards offered for the aj prehension and conviction of the guilty parties, Several person: were arrested, but as none of them could be identi, fled they were discharged. A few months subsequently, however, while Dew tectives Lyon and Ban of the Tenth pets were passing through Division street they sam Daniel Whrittner, alias “Honey” Whrittner, Fran< cis Diegan and ene Eagan standing on the corne of Division and Eldridge streets. ie detecti arrested the trio as suspicious persons, and when the prisoners were searched a watch, which proved to be the one which had been stolen from Mr. Jack< son, was found in Whrittner’s pocket. In Septem- ber of the same year the prisoners wera tried in the Court of General Sessions for felox nious assault upon and robbery of Mr. Jack« son, and upon conviction Whrittner and Diegam were sentenced to nineteen years and six montng each, and Eagan to eighteen years and six montha at bard labor in the State Prison at Sing Sing, where they still remain. As the prisoners cannot be again placed in jeo= pardy for the offence of which they were com+ mitted, the Cae yesterday was simply in cem- pliance with the prescribed legal formalities, and : verdict was rendered in accordance with the * facts. THE MASONIC FAIR. New Featares of Attraction—The Auto= matic Chanticleer—“The Dutchma: Dream”—The Educated Hog and Oth Wonders. The crowds which flock nightly to Apollo Hal’ and throng the mazes of the great fair do not grow -any less in magnitude, and the interest in the splendid display still continues as great as at first. Recently there have beey some improvements made in its arrangement, giving more room for the perambulation of’visitors and consequentiy causing a greater influx of money into the coffers of the treasury. The supper room has been emptied of its tables and chairs and filled with stands an@ decorations, so that it mow presents as brilliang and picturesque @ scene a8 any other portion of the fair, The restaurant is now removed to the other side of the corridor into an ante-room, where ices, creams, cakes and other delicacies are served in very good quality. By this change the “crowing rooster” has been obliged to make a mi- ration to new quarters, where, however, Hia forasnip holds forth as lustily as ever, and Is ten- derly cared for by a pretty little blonde lady, who smiles as oiten as he,sounds his clarion notes. An immense marble clock ferms the pedestal of this remarkable bird, and its ponderous hand marks ‘tne lapse of five minutes every time that he crows. Another remarkable automatic wonder is that called “The Dutchman’s Dream,” a small butldtt in and about which there are forty-two Sgares; busily employed in various ways and all io ally in motion, ‘his marvel of mechanism ts visited by thou- sands, and the admission fee of ten cents produces & large revenue. The various chances whteh are offered In pianos, jewelry, go! d watches, &c., gain many subserip~ tions, and several prizes have already been awarded to lucky winners, Several charitable devices are also very successful. A miniature widow, attired in weeds of deepest mourning aad holding in hand a wicker basket, is carried about by smalk boys and pretty girls, with the touchin, 4 appeal, “Please help the widow—only one penny | The stand of the Puritan ize, at the foot of the stairs leading to the gallery, is very prettily arranged, and sses one treasure that should attract a good ofattention. This 1s @ smalb ainting, by Mr. BE. L. Henry, representing ‘the Korth River between New York and Jersey yau night,” and is very finely executed, The finish t# excelient and tie effects weli studied, and it t# doubtful if there 1s anything in the fair more really worthy of notice. It was presented to the Puritan Lodge by the artist, ‘One of the new and additional wonders of the tait ig “the educated hog, Ben,” whose eccentriciticg of genius excite much attention from small cule «five dollars per mile per annum for cars of tis | dred