The New York Herald Newspaper, April 23, 1874, Page 6

NEW YORK HERALD, FREIGHT TRANSPORTAPION. —_———-——— Report of the Congressional | Railroad Committee. A Proposed Freight Road from New - York to the Missouri River. BENEFITS TO THE COUNTRY. $10,000,000 Asked from Congress to Execute the Project. The United States as the Commercial Centre of the World. WasuINaTon, April 22, 1874, Representative Hurlbut, trom the Committee on Rallways ana Canais, to whom was referred House Dill No. 1,104, to charter a double track freight Tailway company ‘rom tide water on the Atlantic vo Council Bluffs on the Missouri River, and to ‘lumitt the rates of fare, made the following report Yeaterday :— The questions naturally from the consider- ation oi this bill and otuers of like character now pending before the committee are so large in their ee. so Vast im results, and so deeply al- ct the growth and profitable development of important portions of the country that they re- quire deliberate and candid consideration, not only by the representatives the people of the people but by themselves; and our com- mittee therefore propose to address. them- | selves to the discussion at somewhat unusual | length. The very decided and increasing move- | Ment of the centres of population and of agricul- | tural production westward carries with it @ corre. | sponaing necessity for cheap and rapid transit | and intercourse, This movement of population and agricultural production has been aided very largely by the tacilities o: intercourse and commer- cial exchange furnis! by modern improvements in transportation, and especially by the railroad system. In the opinion of your committee it nas Dearly reached the nighest point of development which can be given to it by the existing system of railways under their present form of manage- ment, it seems clear that in the manner in which our existing roads are now operated any considerable further extension would be money | | road and city or on the waters of her harbor show by tnetr returns that they distribute ten times as much Western grain at way stations as they deliver at their terminus, and thus prove the value aud profit of their way trade, while nearly all the sup) for the entire West pass over them asreturn freight. These considerations seem to int with inevitable certaimty to the selection of lew York Harbor as the Eastern terminus of an; ota treight road. While at the same time, as will shown hereaiter, communications trom the main line of the road proposed can readily and economically be made with New England, Poiladei- phia and Baltimore, THE INLAND WATER FACILITIES. Your committee do not pro} at this time to consider the great question of reliel sought to be had by improvements of our natural water courses, or by construction of canals further than to ex- press their conourrence in any reasonable and well-defined measure which shall open the naviga- tion of the sa and make it clear and open from the ulf to St Paul. These propeaiens, although of great importance, lo not seem to your committee to de- mand that they should ve considered in connec- tion with the present subjecta, Each must stand or fall upon its own substantial merits, and as it shows ational and economic value every rational development of a line of water communication, besides giving independent means of transporta- tlon, will, ifit be a cheap and practicable line, act in some degree as a check upon exorbitant charges upon railways, But after all is done that can in reason be expected to be done by the United States io eins and supplementing our wonderful system of inlund water communication, there re- Maing the undeniabie tact that a very large Ee of the most productive land destined be filled up with @ vast amount of opulation, is now and al 8 Will be dependent x its roates to the ocean — railways alons and that neither the route the issipp! River nor either of the proposed canals south of the Obio River possess any present return buai- Bess of any considerable amount or are likely to ao 80 for many years to come. The channels of trade make themselves, and even now a very large lon of the ex} of the South comes to New ‘ork on its way to Europe instead of being directly exported from Southern ports, and almost the whole amount of foreign. goods used in the South is received at the same port. No long line of rail- way or canal of any considerable length ever has | been or ever can be profitably carried on de- Spee solely or mainly on through freight. It is always the local trade that maintains them. So strongly is this the case in railroads that the Erie Railway shows only seventeen per cent of through ireights, the Pennsylvania Central only ten per cent and the New York Central still less, while the roads in liltnois terminating in Chicago show only from tour to seven per cent, New York the Cog creer by the New York Central Rail- je Canal are rapidly approaching equality, while the rates are being decreased on the railway and increased on the canal. Time and certainty enter largely into the calculation vy which the shrewd American mind appears to pre- fer the railroad, even at existing rates, For these reasons your committee believe we must in the future depend, as we undoubtedly do at the present, very largely upon tne railway as a chief measure of internal commerce, DEFECTS OF THE PRESENT SYSTEM, The existingeystem con.essedly is pot now an- Bwerlng this purpose. Leaving out of considera- throwb away, so jar as the interests of tne remote producer sought to be reached are concerned, inas- | P much as the cost of transportation taken out of | the articles produced will leave no sufficient re- | = lor the labor expended, That this ( can CONTROLLED AND REGULATED BY Law | in favor of more tair and equal rates your commit- | tee believe, and a majority of this House has so decided by enactment made at this present ses- sion. But this remedy 1s only pailiative; it will | and must reduce in some particulars the extreme | and oppressive charges now in force, and to that | extent will give some measure of relief. FREIGHT LINES A NECESSITY. But the vice, the inherent defect o the system | remains, beyond the reach Of any fair and equit- able law, in the fact, proven by experience and | conjessed by all engineers and ea perta in rail- | roads, that freight cannot possibly be carried at | such rates as shippers have @ right to demand | over any line of road which is not exclusively a freight road, designed, constructed and operated | as such. No mixed road running both passengers | and freight on the same tracks can by me. do ee to its freight business. ight, | to transported economically, must move steadily an uniformiy; it must not be | at the mercy of passenger or fast freight trains; it must not be compelled | to yield the track and lie by jor hours, and then | make up lost time by being forced upon an up- | profitable rate of speed, dangerous and destrac- tive te the rolling stock and track. The existing | tran« reads leading irom the Atiantic to the West | ‘were not constructed for economy in operation, | but as freight roads with reference to local inter- ests, and not at all, as their managers would now locate and build them, to secure and supply ade- quate means for freignt trafic, THE REMEDY, | it appears to your committee, for existing evils, | most easy and expeditivus in its results of any | proposed, and reaching with its direct benefits to | the whole region between the Ohio River and the lakes, as well as the entire West and Northwest, now subsidiary to St. Louis | and Chicago, 18 the baliding of a double track | freight rauiway, as proposed in the bill under con- | sideration, whose main line shall have its Eastern terminus on the waters of New York Harbor, its Western on the Missouri River, with two branches, one to Chicago and the other to St. Louis. it may poste be asked why this particuiar lime should | e selected of the several which have been pro- | jected. Such s question demands a candid | answer. Itis because it is the only iine a¢ present | contemplated which contains in {t8elf a reasonable | i | certainty of success in being sure of commanding a sufficient amount of freigut to pe able to contract Jor rates permanentiy sufficiently low to war- Yant its adoption; and it is the purpose of your committee to make this clear beyond doubt. it may safely enough be stated that the price of our | Productions is determined by the price which our | surplus bears in the market. For example, the PA of wheat in the United States (disregarding fot this purpose the variation in amonnt oi! crops in this country) is measured by the price in tue city of New York, aud the price in | New York is governed by the price in Engqind, less freight and expenses. sut the price in England only applies to such surpius as we are abieto send thither, and thus the commercial price of wheat | allover the United States is marked down or up | with the fluctuations of the European market. But | Engiand receives the largest portion of its supply in wheat trom Russia and Austria by the Baltic and Biack Sea routes and the internal water and | Tailway channels acrosa Germany; and tnos,in the end, the prices of our farmers in [liinois, Minnesota | and throughout the grain producing regions o1 the nation are to @ very great extent controlied by | the cost of preduction and transportation | in Russia, Poland and Hungary. The imports o1 grain and breadstufs in Hugiand are increasing ear by year, and at the present time that nation imports nearly half its total consumption. Yet the amount imported from tue United States is decreasing, although the production of our coun- try has largely increased. 4 THR QUESTION OF COMPETITION. In this view it is important to ascertain the average cost of a bushel of wheat raised in Ruasia | or Hungary and laid down in the London market. The average cust of @ bushel of grain in those | countries is $1 36, and tne average crop tweive bushels to the acre. This cost is made up as fol- tow: Rental of land per bushel per acre - $057 | Labor per bushel per acr a $1 36 | Pi 2 | Total... “* ns In the United’ States the’ average value ‘of wheat lars in well settled portions of the M Valiey per acre 1s. . Interest on which be Average product per acre im ‘This gives cost ot production— Rentai per acre per bushel. Labor per acre per bushel Total Average treicii i " . rauce. interest, storage, trausier, expense and comuission. tsa a 2 ese 2 8 tolte Thus it willappear that the great advantages shown to be possessed in the lower rental of and and cheapness 0: Javor, due to the ase of machines for preparing and harvesting tne crop, are over- come and made of no avail vy tue increased cost of transportation by laud and water and the heavy expense and Commissions due to the want of proper jacilities for handing grain in New York. To determine the question where England shall hereaiter draw her supplies of grain and the price the American farmer shall receive for nis | labor, it is only necessary to reduce the cost of transportation irom tne West to Engiand, By so Feducing the existing unnecessary and oppressive | charges jor transportation, the control of tue foreign market will pass into the hands of the United States, and we anall be no longer cepend- | nts upon Russta and Austria to regulate the price Of Our crops and the vaiue of our jand. THREE IMPORTANT POINTS, It is then clear that to reach and control the foreign market by a cheap ana reasonable route a: fair rates two things are necessary:—A ireight raliway to the ocean, which shall a! have local | support on its route, and fair rates from the ocean terminus across the Atiantic to Europe. Cheap Ocean ireights are as necessary as cneap land freights, and neither can be obtained or main. | tamed ualess there be a large amount botn way. Thus the lowest oce: only be obtained where there are large imports as w as exports. I, then, there be | any port in the United States whose im. ports exceed those oi all the other ports combined, that will naturally be the point | from which the return of freights will be the lowest; and if in addition to this all along the line | of the pro; Foute from the West to this port | there will @ great local demand botn for the produce of the West and the goods and merchan- dise of all kinds from the Bastern terminus, it Would seem that all the elements necessary to se- | cure the cheapest ireights botu by Jand and ocean are combined. No other port in the United states | abawers these requisites except that of New | York. Her imports and exports greatly exceed those of all the otver ports inthe couniry. Her existing truuk roads. terminating either in the of freight an ireigits can | | existin, tortion and bad brs Savor your committee roceed to consider the Known and acknowledged defects. There are four main trunk lines irom New York, leading out 600 to 600 miles West, then branching off into a secondary system, to | Which system again are connected all tributary roads, These four trunk roads are only the sume | im number that were constructed twenty years ago. No new ones have been built, They were not constructed for the daty they are now called on to periorm. They were built as local roads, and jocal roads are now built in circuitous routes, chosen to avoid expense of construction or to reacii business centres, climbing mountains at dif- ficult and unprofitable grades, seeking to save original cost in constraction at the expense of per- peraal cost of operation and Without any reference domg & great through business. Upon these roads ran six different ciasses of trains, each interfering with and increasing the expense of the other. The number o/ trains on these roads per day is limited to lorty-one on the Pennsylvania Central Railroad, forty-four on the New York Centrai and thirty-five on the Erie, in each direction limited from sion On the diferent raliway with uniform grades, with a single class of freight trains moving at @ unilorm rate of speed, und where the same engine can haul the same train weight over any part of the rpad, five times this number of trains can be saleiy run. The roads, from the faulty construction poin out, average only 130 cons to an engine; though on uniform and moderate grades the ame engine can haul three times that freight. For these reasons the average cost during last summer irom Chicago to New York by rail, as given by these companies, is nine milis per ton per mile, and the average price received eleven | Mills per ton per mile, and this profit, it 1s claimed, 8 not exorbitant. The remedy, then, is to builaa road upon a new system, to build it for freight only, to shorten the distances, to reduce and equalize the grades, to expend capital wisely and coarageously in judicious locations and bold con-. struction, 80 as to save in operating, and thus, by mcreasing the capacity of the motive power, to Teduce rates and depend for profits upon largely increased business. SHORTEN THE DISTANCE TO NEW YORK. The didiculty has always been in crossing the | Alleghaniea, which sweep around from the Cats- Kills, in New York, through Penusylvania and New Jersey. The lines hitherto constructed have met or turned thie the time of their construction, and as best suited the objects they then sought. Tne New York Central turned the mountains by a circuitous route to the north. The Pennsylvania Central crossed by a route intended to accommodate Harrisburg and Philadelphia, and without any reierence at that time to New York, and, therejore. by a détour to the south, while the Erie accomplished the cross- ing by a singularly circuitous track through the mountaing. Is there no practicable line snorter, better and capable of supplying the need of the hour? Your committee, from the information before them, believe that there is. A number of persons | sociated a8 # corporation under the name of the ‘asi Continental Railway Company, have, by their agent, | appeared vefure your comuiuttee. Tney have fur- shed evidence of existing corporate rights, un- der the laws of New Jersey, Pennsylvania, Ohio, Indiana, Llinois and Iowa, covering the line of road which they propose, under certain conditions, t build. They nave also produced maps and profiles of the mountain region un Pennsyivania aud New | Jersey and the reports of engineers whom your committee believe to be competent, and who have given careiul study to the question of location and Cost for eighteen months past. ‘The results of these surveys may be briefly stated as jollows:— A new line Can be constructed from a point op- posite New York city which will greatly shorten tne distance, and can be built with grades run- ning east not to exceed thirty feet to the mile. ‘The obtaining such @ grade and maiotaining it across the diiticult country of Pennsylvania Will jor thai distance unquestionably increase the coat per mile over the oririmal cost of any of the exist- lug trunk lines, but the saving in operating ex- penses by reason of the diminished length ot the line and tne increased capacity of the engines will re- duce the expenses per ton upon an expected large tonnage at least one-half. Very careful and elabo- rate estimates of the cost of operating the pro- posed ratiway demonstrate that, if the necessary | amount of bustness can be obtained, balk ireight can be moved at six mills per toh per mile in sum- Mer and seven mills in winter, or fiiteen cents a bushei from Chicago, eigateen cents irom st. Louis and twenty-four them, that at such rates all the freight required can be obtained. The proposed line of the Continental Railway crosses forty-five roads and shortens tae distance | On each of these irom the poiat of intersection to | New York not less than 100 miles. At present most of these roads form connections either with some one of the existing trunk railways named or with some transportation company ranning cars on said railways, and a provision by law may be necessary to compel roads which cross this line to deliver to it, if directed by the shipper, on Jair and contiate terms. At its crossing of the Mississippi itis proposed to receive and iorward whatever freigut may be sent by that channel of communication. At Chicago it will connect with | all railways running to that great centre, and at St. Louis with the system now existing, and which is being extended with the greatest energy, and at Council Bluffs with the Missouri River and tue Pacitic Railroads. THE REAL POINT TO BE GAINED. Your committee are satisfied that tnis road, if built upon the terms and conditions specified to | tation of freight 1m the order of delivery at reason- | be observed by them in the bili on which this re- port is founded, will ge very far towards solving the question of cheap transportation tor the vast area of country over which its influence be feit, and will, to a large de- Tegalate other roads now existing or which may be created within the same area. it will be observed that the company as- sert themselves to have control of @ very large frontage on deep water in the harvor of New York, of sumetent area to give room enough for tne warehouses, elevat cattle and other yards which would necessarily be required to handie so vast a business a8 18 proposed, and im fact needed to be done, to make -the und vinow ge | @ success, ‘The rigut 18 reserved by the United States, by i commissioners, to fix the rates of ali treight not Spectied tn the biil wi gree, q ® maximum limit | less sham half the extoring charges, tor the bulky articles rein specified, including the grain, cattle, ores, coal and lumber. The right to alter, amend or repeal any charter that may be granted—which your committee do not doubt re- sives, without aby reservation, in Congress—is ex- pressly reserved in this bill; and your commitiee are Of opinion that ali proper reservations of the | Tights of the States over which the line may pass are also made, THE NATION TO BUILD A ROAD, All the Limitations and supervisions and control on the part of the United states this corporation are understood to be ready and willing to accept, But on their side they ask something to be done by the United States. They ask that the United States of America adopt tis as a national under- taking to the extent of guaranteeing interest at five per cent on $20,000 a inile of single track, estl mated in the whole not to exceed 3,600 miles, To secure the repayment of this sum of interest, 80 far as the same may be paia by the United states, they give, ox offer to «ive, prior mortgage upon tion for tne present the well tounded charge of ex- | it obstacle as they best could at | ts {rom Council Biuts. The | company believe, and your committee agree with | THURS the entire reaity of tne company, including the Yaluab.e grounds which they ciaiut to have » con- tract lor as their eastern terminus; and, jurther, to set aside each year alter the road 1s opened lor service a sinking jund of $1,00),v00, and that to case of forfeitate or iailure of any ot these cundi- | tons the Unued states may enter upon and take the entire property. ‘The entire proposition and | the reasoning by which it is suppor'ed are fully set forth im the memorial attached hereto, as are appended, Your committee desire to state, in re- | gard to this proposition, that 11 1t be deemed sound Policy to give the aid of'the credit o1 the govern- ment to any corporation ior any purpose, that, in their judgment, the provisions to secure the United States against loss and to secure the pune. wal repayment oi such money as sali be paid out are suiticient for that purpose, and cau ouly be de- feated by the failure of the project itsell. If, a3 ts believed by those best inlormed on such matters, | this road shall be built in tour years and shall begin to pay In anything like the manner calculated by | Its promoters, the government ot the United States will only have paid out upon the interest account guarantee about $10,000,000, a sum which will be speedily repaid by the sinking fund provided in Jue but ‘As to the nationality and importance of the measure itseif it is evident Been. the inspection of any railroad map of the nited States, and its effect, if completed as pro- vided in the bill, will be to infinence nearly 50,000 of the 76,000 miles of ratlways inthe nation; to render certain cheap ocean treights to Kurope; to increage the value of agricultural labor over a vast area; to render possible the speedy subjugation, settlement and cultivation of uew territory, Dow beyond the reach of present means of transporta- tion; to bring cheap 100d to ali the deuse imanu- facturing, commercial, mining and mechanical Population; to gtve the mation a large increase of exports and facilitate, by cheapness and reguiare wy. the return to tural population iM ex- change of the products of mechanic arts aud labor. Your committee, however, do not by any means forget that the voice of the people of the United states has been very distinctly uttered against subsidies, eitner in money, lands or guarantee of interest, to raiir corporations, apd they do not propose to act at this time Inst such decision and utterances and recommend to the House tie passage of this bill at this time. Your committee beileve that there are and will always be exceptional cases, and that it 18 wise to submit such cases to the con- sideration of the people themselves, to give them time and opportunity to gather iniormation, to ex- amine evidence that may be offered, and to de- termine whether the good sougit to be accom- ished is worth the risk invoived and the means 'y which it 18 sought to be secured are the right means. Having made up their decision, they can find means to instruct their representatives, aud the money of the people can then properly be used under the direction of the legitimate owners. Un- Ul some such voice 1s heard irom those most deeply interested your committee wili not hold them- selves at liberty to grant any considerable aid at the public expense to any private undertaking. CERTAIN CONSIDERATIONS. In order, however, to place beiore the tutelll- gent criticism of the American people the real points involved in the proposed undertaking, and to aid in forming a just popular verdict, your com- mittee desire to state certain considerations 1, The line pro} with its autuorized branches and connections, will reach and affect large masses of population now separated by dis- tance und excessive charges, each of which masses Of population is the necessary supplement of the ower, By a line to be constructed, v1 eighty-seven miles, the matn trunk of the Continental road will be connected with the lines of road which seek their western passage through the Hocsac Tunnel, | as well as with the line proposed to cross | the Hudson River at Peekskill. ‘Thus the | population of the Eastern Stati dependant now for breadstaff upon the \ will be directly united witn the propose provement. | Short und easy connections aiready exist wits the | great cities, a8 Baltimore and Philudeipnia, which | are now competing With great activity for tie Western trade. No such masses of population and industry can be accommodated and brought into Cleese eta by any other projected unprove- men! 2. The road proposed is not an attempt to force a line of railway through a new and undeveloped | | country, Every mile of its whole course pusses through a territory closely settled, fairly improved, | capable ol great producuon, and supplying along | the eptire line that local business without whica | no railway can be a success. {t passes through the heart or the anthracitevoal region of Penn- sylvania, the use of whose fuel is being largely increased throughout the West, and which will | Brees help to fil up the existing difference tween tonnage from the East and that bound Weat. It Pew through the richest and most productive zone—Ohio, Indiana, fllinois and Jowa—at such @ distance irom tue Ohio River end the lakes a3 to cause the iocal productions of that zone to seek transportation vy the railway at its 1xed price rather than by lake or river. 3. Tne line accommodates itself to the existing currents of commerce—cucrents which owe their | existence to permanent causes—and which, in | the judgment of oa committee, are not likely to | be materially uffected by any provable event. | ‘That course 1s decidedly trom west to east, tend to centre in some one or more great coumerci: rts, but all within certain well defined mits. it is not in the power of any legislation to coutrol or materially aiter this set of the com- mercial current. The main body and volume of it seems to press decidedly firmly eastward, not southward, attracted aefinisely wy many causes, | pot the least of which is the great: preponderance of business caital im the great cities of the North- ern Atlantic and tite developments of popuiation mone the same parallel of latitade across the Con- nent, 4 It 1s reasonably certain that no private corpo- j Tation can be formed in this country which will underteke and perform the same work and ope- Tate the road at the low rates ixed by the bill, simply as @ private enterprise dnd upon their own risk witnout imdorsement irom the United States. The amount.of capital required heavy, more so than any ged heretoiere presented, and the difference tween bonds guaranteed as to interest by the United States and those of @ purely private company is very considerable, both as to the rate of interest and the rate below par at wifich they would be nego- tiated. it :s not, of course, to expected that capital already invested in existing roads would Javor the construction of a line whose right to public Javor rests upon a purpose to correct an | existing vicious system. The means to butid this road must come from the capital engaged in the | j Bet cities in businesses wiica feel the existing urdens, and from the agricultual and other pro- ducing interests, sor whose relief it is intended, | nd it 1s for them to say whether the experiment | shall be made or not. | 6, Not the least among the meritorious propo- sitions involved in this enterprise 18 the rewodell- | 1ng the present cumpbrous, clumsy, antiquated and | Useless expensive mannei o/ handling grain and other products in New York city—e manner 80 full 0! delay and cost as to have driven already a | great portion of the grain trade to Boston, Phila- | deiphia and Baltimore, where proper mechanical | facilities lor receiving, discharging and loading enable those cities successiully to compete with | the great commercial emporium in this line of | business, The whole existing system in New York a ha oe and a burden upon commerce that | cannot long continue without torcing that line of | business to other ports, and in strong contrast | with the pradent and wis: economy in machinery and outfit for handling ireight exhibited in Boston, | Philadelphia and Baltimore, H THE BILL | is necessarily long and contains many details not necessary to be considered, and for the purpose of popular review your committee submit a con- Gensation of its main features, Tne first section organizes the corporation, fixes its termini and imposes @ condition that no | grade eastward shall exceed forty 1eet to the mlie within one year from the passage of the act and its completion within three years chereaiter. | The second, third, fourth, fifth and sixth sections are on maiters of aetail. The sixth section provides for surveys and that the road shall ve constructed, a8 nearly as pos- sible, on an air line. Section 7Mxes the character of rails and con- straction. Section 8 requires a double track branch to | Chicago and St. Louis and gives authority to con- struct other branches, not exceeding two, on each | side of the mato line in each State, | . Section 9 permits tne purchase of other ratiways, but requires the consent of the States chartering said road before such purchase or censoudation | shall go into erfect. Sections 10, 11, 12 and 13 contain provisions for condemnation of the right of way. Section 14 contains detatis 1or organization of | the company. | _ Section 15 declares the road a public highway | and post road, and gives tne right to construct telegraph lines—rates to be fixed by Congress. Section 16 compels the reception and transpor- able rates, Section 17 compels the acceptance and transpor- tation of cars irom any company or individual, forbids undue preierence and requires service to be performed in the order of delivery, upon iair and reasonable rates, to be fixed by a commission. | Section 18 defines “pulk freight” to imciude all articles of ireight not in packages placed in the cars by the shipper, without handling by the raul- road company, and by the car load, and specifically | Chamerates coal, grain ot all kinds, provisions not | in packages, lumber, otes of me ad live kK | lor market, and fixes a maximum rate not exceed- | fag five mills per mile per ton for distances over 760 miles, with a siding scale gradually increasin: the rates with the shortness of the haul, am | adding one mill per ton per mile for the winter months, and that tue maximum rates for all other aap shall be fixed by a commission. (The proposition of the company is #1X Mills per ton in summer and seven milis in winter.) Section 19 provides for the appointment of a commission of five—three to be appointed by the | President and two by the company—-to Classify freight and x tne charges thereor not above enurmerated. th ali cas majority of the gove: ent commissioners is required, and the commissioners shall be paid a fixed price for their services by the company. The same section provides severe penaities for breach of duty by the commissioners, Section 21 requires that prior to any ald aor given by the United States the company shal satisiy 1 proper officers that they own or law- | Years, suMcient lands on the Hudson for the ter- minal facuities of the road and for proper dockage, piers, Warehouses and elevators. Sections 22 and 23 provide the mode of giving & guarantee o/ interest on the bonds of the company | aud declare @ first mortgage on the entire real | Latonce gave a prompt’ denial, whic! and requires the construction to be commenced | to articles | fully control by jease, ior not Jess than ninety-nine | | estate of the ~company in favor of the United Siates, Section 24 provides for reserving out of the earnings of the company and paying over to the | baad annually a sinking {fund of 000, Section 25 gives the right to borrow money and give mortgages or trust deeds therefor, subject, however, in all cases to the prior mortgage exist- | ing tn favor of the United sta’ Section 26 is formal and regards details in rela- tion to such borrowed money. Section 27 provides for inspection of all books, papers, &c., and lor quarterly and annual reports to Congress. Section 28 provides for exchange of freight or cars to and ‘rom connecting or intersecting rail- roads, rates, if disputed, to be fixed by arbitration, Section 29 preserves the power in Congress to ti ter, modify or repeal the charter. ‘The above are the substuntial visions of the bili reterred to, and are submitted with this report to the House of Representatives tor information, not for present action, and through the House 6o the couutry. THE ERIE RAILWAY ACCOUNTS. President Watson’s Statement—Letters of Second and Fourth Vice Presidents. It will be remembered that wnile President Wat- son, of the Erie Railway, was en route trom Eu- rope to New York Mr. S. H. Dunan, ex-Auditor of the Erie road, published a letter addressed to Mr. Watson, in which he charged that tne accounts of the company had been falsified so as to show the shareholders and the public that the dividend was dectared out of the actual earnings of the road. Immediately after Mr. Watson’s arrival in New York Mr. 8, L, M. Barlow addressed a letter to him, accompanied by letter which Mr. Dunan had written to Mr, Barlow, in which he (Mr. Dunan) said :—*There is nothing in our books which any man may not see, and I only keep one set of books.” At a meeting of the Erie Ratlway direct- ors, over which Mr. Watson presided, he stated that the charges of Mr. Dunan were wholly false and that he was then preparing a statement which would effectually refute all these accusations. This statement Mr, Watson promised to present to the directors on Tuesday last, but owing to the la- bor accompanying the examination of the accounts it was not finished until yesterday afternoon, PRESIDENT WATSON’S LETTER, At a meeting of the Executive Committee of the #rie Ratlway Company, held yesterday afternoon, Mr, Watson, President, submitted the following reply to the charges of ex-Auditor Dunan and others, which was approved and ordered to be Raitway Company :— GENTLEMEN. England the charges of the late Auditor of tue company reacued me, but not in de- tail. What then seemed the most important charge, and foguiring. unmediate auswer, was, that in publist- in London ry y made to the state Engineer for the year ending sepiem- gota a” itwed eh “approximately,” so that accouats which Mr. Dunan charged been made by him as esumated accounts had been published by me as absolutery correct. ‘Io this was pablished in the London papers, when I printed tins yearly state- ment in London, almost simultaneously with its being fied here. Isent to the prinier Mr. ; unan’s own manu- script, including his affidavit forwarded to me by him, and trom it his account and affidavit were published ‘without alteration or empndauion. ‘This original manuscript was partly Brinted, and was partly in his own handwriting, and I herewith sub- mmitto you. fhis statement of Mr. Dunan is thus dis- proved by his own hand. In his publication made here he also lays stress upon @ letter of the 15th December, alleged to have been seut to me in connection with the accounts before reterred to. It is enough to say that while Lhave Mr. Dunan’s let- rs, dated shortly before and almost immediately after 15th of December, 1 never received any leiter bear- ing that date, nor any letier containing the substance or the text of the alieged letter trum which he prints a pre- tended extr: hor any letter making the suggestions or statements as to the condition of the company which this letter 18 ailepes to have contained. On the contrary, on the 6th of December, 1873, Mr. Dunan wrote me a letter trom which I make an extract as follows:—“My hys cian tells me, however, that 1 must go away fora few weeks and rest so as to insure a permanent cure, and Treally tee] the need of it 1t was for this partially that I cabled you on Friday last, hoping that the trip across the water would beneiit me, and tuat I could give you a helping hand at the same time and not wholly lose my time to the company. I had snother ovject in view, ‘wich was to place in your hands, with tull explanation, the evidence to forestall the proposed publication of sham accounts which parties here and in “urope are, it is positively alley getting up to your injury.’” On the 18th of December he wrote to me. eaciosing arst Proo:s of a portion of the accounts, in which letter he says:—"l did not tell him (Mr. Robluson, Vice F resident of the company) that the reason wiy.l was averse to making the accounts public here betore you had had an opportunity to examine them was that there were per- sons waiting to get the accounts that they might distort thom, as the newspaper did, to your injury, in London.” And finally, on the 2ist of January, i374, Mr, Dunan again wrote meas follows: "I send vou a perfect copy of the report to the state Liusinecr. as filed January 10, 1874; also a few copies which 1 have had printed tor ready reterence and comparison. 1 would have sent you these belore, out, really, supposed | you would Sail betore you could get them in tondon. Thave a despatch from Barlow, giving one trom you, asking that ail differences should ve cavied on the report from that I sent you, This I cannot do, as tue copy sent you was made up hurriedly and the one retained was changed several times by subsequent reports and amendments, which do not alter the general results of the year, but do alter the report to a sufficient extent, as not to make them ident.cal.” This last pertected ac- count was identical with that published b\ me in Lon- don. It was wholly made by Dunan, without suggestion trom me, and. I believe, without au intimation irom any one, except that inquiries were made as to the details of certain general staements thus made by him, d it is upon this state of tacts that Dunan charges, Not oniy that the accounts in question are not complete, but that I was in some manner privy to his misstate- ments. it is a clear Inference, which I cannot avoid, that the alleged letter of the 15th ot December is a ficiion, never sent, and probably only written to suit his pur: poses in conspiracy. ith this brief allusion to Mr. ene peamems charges (is Fo e: floating debt having been already ex ‘been content to leave the whole matter; but nis public tions contain specific charges of improper entries in the books company, which I propose to analyze and apswer in tail, so that the stockholders and Late td of this company may not thereby fur- fher be detrauded through thls stocnjobbing conspiracy. The principle governing the policy of the Erie Kailway ince announced. Jt was repeated in the tes- timony on that subject elicited by the tive com- mittee of eaner ‘and also in my report to the directors and stockhoiders. It was simply that frequent dividends of net earnings should be made to the stockholders, and that the moneys necessary tor the execution of pro- Bosed improvements and to meet all construction expen- diwres should be added to the caplial account. To this principle I adhered. believe it to be uot only eee in morals and finance, but | have the best reasous for kno’ olicy we Can alone sectre that degree of credit with our proprietors which is necessary to enable us to carry great artery of commerce—of consequence not only to {ts owners but to our city and state aud to the whole coun- | try—shail become, as it ought to be, the cheapest and vest | means ot communication between’ the seaboard und the West. And now, tree irom his misstatements ot tacts and unwarranted assumptions, what are his charges? far as they are tmpoitant or tangible they are as rol- First—That I ordered $719,600 to be transferred on the ceriiticate of Mr. Clarke, Vice President, trom the cur- rent expense account to the capital account, Secor that 1 ordered the iurther suin of $404,304 23 to be similarly transterred as the certificate ot Mr. Tyson, Vice President. Third—Vhat tere ts a deficiency in cars and engine: as to their transters trem the expeuse to capital account. | These journal entries were made by authority in te | usual man! nthout conceaiment or pretence of con- | ceaimen were and are entirely proper aud usual and were specifically referred to in my published rep of september Upon an examination ot tae accounts for the six mot ending without usual dividend pe- | rlods,I found that unusually large sums, far beyon the average of previous years, had been charged as cur- rent working expenses anion this basis the true net earnings did not appear, Of my own knowledge | knew that a large part of this suin thus charged was not properly cpacgens im to the current expenses of these six months. I therefore called upon the second and third Vice Presidents is of these tems, and jor a report | Which in their judgment shouid | expense account and charg for an a as to. the be withdrawn from the d to capital question w: account of disbursements for the period in questioa, aud | todeduct from it any, and if so, what sum, and carry it to account of net Regi A t This question | answéread With a tull knowledge ot the facts, anu upon the reports | in question, by ordering proper entries to be made to correspond with the facts and the time, | recommended to the Board the d ion of this dividend. ‘These entries were, Lassume, thereupon made by Mr. Dunan, though the mere time of making these journal entries is unimportant, and this performance by him, of a strict duty, which he then approved, is all that is now com- plained of. I hand you herewith a turther report from both the second and third vice presidents, made at | my request since my return, which tully confirm the view which they held in September last, and show the | absolute correctness of the (ranster then made to account | ot income by my order, Furthermore, you will fin by my report I'staved that | had omitted to carry to th creait of income, but bad chargea wholly | the cost of relaying over 380 miles of iron ralis with steel or steei-headed rails, aud this item alone would have watranted a much larger transfer from expense | to capital account than was really made. | I refer only to this one item; but there are, fact, many others of the’ same character to be proved vy a more caretul examination of the de- tails of expenditure, which might properly have been, but were not carried to the credit of current income. It may be asked why, in pursuance of my avowed pol- fey, did I thus charge to expenses these large items | in | been carried to current earnings and paid out as a | further dividend, ‘The question is pertinent; but it then seemed to me wiser, asa matter of policy, that the aividends to be de- clared, so long as we Were borrowing money for con- struction account and for additions to the road, should be as small as possible, and 1 sought by every proper means to reduce, and not to Increase, the amount ot our present current dividend. If my object had been to in- crease dividends at this time I would have recommended tothe Board a division o1 the whole, or part at least of the moneys and value of the properties reciaime oom Mr. Goula, ie AMount thas restored to this company was then estimated at $7,001,000, wisely administered, I believe it will eventually yield @ larger sum. ‘This excraordinary and almost sult of a litigation achieved din the treasury part of the been abstracted from the earnings ot in the previous “few yours, and every doliar ot these sums might, as a matter of policy, and may Now, at any ume, upon & proper valuation of the roperty | thus Fegaine, + be divided among our stock. jolders. There is neither legal principle nor law to restrain or limit this course. But ava matter of policy, Tthen thought that it was wiser not to muke any such Givision, put to permit for # time, at least, this large sum to remain undisturbed. TJ atlude to tuis matter simply to show that our desire ‘this last item is tuily answered by the annexed papers | se the general | of the officers in charge oi the partwular catarpemenes | when the whole amount of these expenses might have | DAY, APRIL 23, 1874—QUADRUPLE SHEET. ‘yas to limtt and not to increase the tof denda, vi that the time w a whea might gx" ane nt rate of dividend to a hered to, and then this reclamation fond could be drawa yom any accidental cause, they, inighe temporarily be mn cause, diminiaued. “And, dnaily, 14 advising’ w dividend of ons ber cent in September iast, I acted upon the acco: prepared | by Mr, Duan | hineell, | submits correct, which I then believed and to be correct, an the amount nd Was recommended by me, without pres- ivi as trom any quarter, and until the ‘actual meciing of Board on the dividend day no one other than Mr, self know the umount ot the dividend which tw recommend tor 7m approval, hoped by this time to have been able to make up and submit tor your examination an account showing tal reveniies ot the road from July, 1874, from cur- i business and the addition to capital as well as to rsements of every nature anu the absolute net ings and reclamations dec! and on bi But the d. anized condition of the Audito! renders this impossible in 90 short a time. fHioue the examination and lay thi ‘This has, however, now becouic leas inportani, us the guess of this property. and the holders of its bonds in urope have already been requesied to unite in sslecting Public accountants, who will soon leave tor New Yors, aud whose ddty it will be to ag not only upon the I have reterred to, but make up the T had now to present. inues tour road is in than ever before; and { believe when the report in ques ‘shall be made by se whi task and complete imtegrity and Lnpastiaiy sured, the recent attempt to injure the cred| coneank will result only in placing this great property before the pubiic in a dewter pontion jan it has ever be- tore vecupted. . H, WATSON, President. Naw Yous, April 22, 1874, ME. JAMES C, CLABKR’S LETTER. Kaw Ratwway Company. Hom. P. H. Warsom, Pi Eas Rawwwar Com Pan :— ‘Sin—During ir absence in Europe Mr, 8. H. Dunan, IRE ants Salin of eBRU Rares ns Iw wi undertakes to show that the statement w! hie furnished ic! to you on the of pe ioe 1873, at his (Dunan's) re- ues showing the x traordina: ridin int wan, eduotod. om. the current & for 1e rmanent from October 1, 187 tw June 4 as insproper, My wi In @ turther communication by’ him, in the Tribune of April 11, he alleges that after an Interview between him and yourself you then sent for me, and that the re- sult of my inierview with you was to furnish you # statement, which Soci don 700 to deduct trom the operat- ing expenses of the road department the sum ot $719,600 to enable vou to apply that sum towards the payment of @ dividend. The oniy interview 1 ever had with you respecting iny statement of August 28 was at Mr, Dunan's suxgestion (and in his presence) at yoUF room at the Grosvenor House, At no time during ‘tht interview, or any other 1 ever with you, Was one word said about @ dividend, I now ‘submit tailed exhibit, marked “A,” showing which my s.atement of August 23, 1873, was made. expenditures tor the nine months ending June 30, 1873 ifthe books in the Auditor's office are correct- show there was expended on the five items named in my state- ment $79,486 86 more tor the nine months ending June ‘$v, 1873, than was spent upon the same items tor the cor- responding months ot 1872, In that interview with you to which dir. Dunan refers, and in his presence, I gave You the statement which was prepared at his request, showing that the sum 01 $719,600 ought to be charged to reparation for deterioration, caused by the non-main- taimance ot these Items In to*mer years. T herewith hand you a table marked B, which is a correct transcript from the books in the Auditor's office, ‘a3 well ag the line officers’ monthly revorts for the nine Months of each year from 1360 to and including June 30; 1373, trom which you will see that there was expende in the nine months ending June 3, 1873, a sum largely in excess of any corresponding nine months stuce 1368. To that date the expenditures for the nine months ending June 8, 1373, was $445,081 <Of 1830; $548,143 82 to you a de- 21 greater than the nine months greater than the nine months of 1870; $046,206 82 greater than the nine months of Iii, “and § 6) more than the mine Months of 1872 Hence you will perceive that deterioration was permitted to take place each year from 1869 to 1872; and if it was neceseary to go further back in the ‘history of this company) to the year 1868, It would show still greater. Table U isa comparative ex- hiblt ot the expense of the road department, taken from the books in the Auditor's office tor the years 1869, 1870, 1871, 18/2 and 1878. I stated to you on the 23th of August, 1873, that the sum ot $719.0) ought not to be charged to the current expenses of the nine months end- ing June 9, 3, but against former years, because if the had been fuily “mauitained to October the: there was no such increase of trafilc. thrown upon your line as would have made it necessary to make the extraordinary exornditure which was made in the mine months ending June 30, 187% The good judg- ment and wisdom o: making these large repairs in order to build up tne property to @ standard o/ efficiency 18 now and has been demonstrated by the tact that your roadbed, track and supersiructures are in better | was @ legitimate charge ‘Condition to day than they have been for several years past, and this is in a great degree owing to tae improved condition of the track, roadbed and superstructures; which improved condition was in a great degree accoin- rished by the large expencitures made upon them in ¢ nine months ending June 20, 1873. {am quite sure that gentlemen of practical railway experience will clearly see FROM THE YACTS SET FORTH that the extraordimary expenditares made pron the road during the nine inonths euding June 30, 1873, were pot called ior by any increased traffic throw upon the line from Vet ir I, 1872, to June 30, 1875. These large xpenditures ior permanent ‘cellements,” which re- placed the meget or tormer years, did not cease with 3th of June, 1873, but were continued until the + api ied of the winter mouths. The effects of 4s policy have enabled us to operate and maintaim the track and permanent way during the mont! ber, 1373; January and February, 1874, tor thah the ‘corresponding monthy of 1872-3; while March, April, May and Juno will, undoubtedly, show results that will prove the decreased expenses for maintaining this branch of the service for the nine months endinj June 30, 1874, to be as large asthe reduction complaine of tor the nine months ending June 3, Asa further roof of this tact, although large expen iitures were made in July, August, september, October and November for rails, crosses, masonry, bullaings, &c., still, trom October 1, 187% to February 24, 1874, the expenses tor maintenance ot the track roadbet and superstructure have been $203,513 93-100 less than for dhe corresponding months of 1872-1878 respectively, ‘and from Octoger I, 1873, to the Present time. ‘The property has not been permitted to depreciate. On the contrary, to-day your permanent way i a whole) than at any period of however, much work yet to be it whole duties public as channel of commerce, and at the same time to enable it to be worked at Jess cost than heretotore to its owners, I risk nothing in saying this laner object will be accomplished when it shall complete the re- newal of its bridges with iron instead of wood, as is now being done as tast as itis tound necessary, rebultd- ing its imperiect culverts, a system of proper drainin; and thoroush maintaining of roadbed, the substt&tion of | Bessemer steel rails in lieu of iron, a more durabie and better class of crossties in has used in the past, a strict and thorough account- ability required from its officers and employes and a rigid and prudent economy exacted and de- manded from all, in every branch of its service. My connection with this company began on the 23t day of February, 1873 From that e to this I have made no statement respecting the road (or its opura- tions) which I did not believe to be true and correct and capable of being substanifated; nor have I ever been ap yrosstied. by any director or officer of this com- any who desired me to make any false statement ‘our obedient servant, JAS, UC, CLARKE, Third Vice President. 4 ME, TYSON’3S LETTER. Exis Raitwar Courany, Orricr ov THE an iT o waguiasete nw Yori ri Hon. P. H. Watson, President:— oe wing thatby an adherence to this pupiicly avowed | out in complete detail our programme by wihch this | | Tequested the General Auditor to furnish me with a | | | George Fletcher, @ man rude and brutal in appear- sir—In rept, our jai of yesterday I eapecttully inform Ou that at the HU or “august last the neral Auditor called on me aud said that you desired from tatement me a st showing what amount, if any, of the sum charged to renewals and maintenance of machinery dor the past nine months, ending June 8), 1873, was in excoss of what should haye been considered justly chargeable tor this purpose if the condition of the machinery had been | properly maintained during preceding years. Asall accounts were recorded ia tue Audit Office I sutnmury of the facts necessar opinion on the question he asked and also to give me his views on the subject, s I had but receutly entered | the service of the company. | Onthe evening of tue same day he had a statement | and memorandum eg age and banded them to ine, both of wnich {enclose to you. The clerk in the Audit Otice who prepared the papers states that he did so unger the direction of the eral Auditor. You will observe that in this statement the comparison is made between the nine months ending June 3v, 1372, and tor the some period in 1873, assuming ten per cent chargeable to repair tor 1873 and leaving a halance of $i, 2. On a further examination of the accounts it was found that the average of similar expenses tor the correspond. | ing nine months of the three preceding years was sib 3374 ue foe the expenses of the nive months end ‘une 3), Under these Harter Personal observation of the condition of the machinery in July and s.ate- ments made to me of its pay depreciated condition by those in charge ot it during the previous year, I consid- ered the Auditor's figures as sufficiently accurate to em. body them in my report toyou. As @ further proof of the propriety of this course, we have the experience of the present term commencing October 1, 1873, in the first | gx months of which perlou these expenses have been 259,004 65 less than for the Fepratins year, although upon an increased eee tine the remaining three months will swell this sum to considerably over 000. Thad no interview ape this subject with selfor any member of the Board of Dire: anyone except the borsliceagrs The eoudit © motive power, ro! stock a ionar, machiner; been further improved since June ah, to enable me to form an aud it will now compare favorably with that ot any of the principal railways of the country. time six new engines built, Since that lace those ame a be ready DO weeks, which nine new engines constructed during the year, and all charged to repairs. The number of treight cars belonging to the company has been somewhat reduced since June ), 1873, but the improved condition of those now in ser- vice will more than compensate for this deficiency. 1 hand herewith a tabular statement of expenditures of this department tor the years 1870, '71, '72 and ‘73, and for the nine months ending June 3) of each of these years. Very respecttully yours, HE TY SUN, Fourth Vice President. THE STONE MOUNTAIN BUMBLINGS. RALEIGH, N. C., April 22, 1874. A letter from Chimney’s Rock, at the foot of Stone Mountain, dated 18th inst., says:—Stone Mountain and vicinity experienced one of the most terrific shocks yesterday that has yet been felt. The whole earth shook and trembled, and houses shook and things were disarranged in the’ houses, een shocks have occurred within the iast eek,’ A CHILD OUTRAGED, PHILADELPHIA, April 22, 1874. A very sad and pathetic case caine up at the regu lar police hearings this afternoon, which consisted of an outrage committed upon a handsome little gt only thirteen years old, whose name ia Lizzie cCue. The perpetrator of the foul act was ance, and @ married man. THE LOUISVILLE BIOTERS. Lovisvin.e, Ky., April 22, 1874. In the City Court yesterday N. R. Harper, a negro lawyer, volunteered to prosecute the groes engaged in the rlot on Monday. Seven of | the offenders were fined and piaced under heavy | bonds, The negroes of the better class denounce | Se conduct of the men ta the proces yD. HONORS TO THE BRAVE. An Ovation to Captain Sir Lamb- ton Lorraine. Visit to the Public Institutions—Stirring Address by the Noble English Captain—A Fow Unknown Fact: Abont the Santiago Butchery, In the reception given yesterday to Sir Lambton Lorraine, the spirited commander of Her Majesty's steamer Niobe, by the Mayor and Commonaity, was only a throp of the genuine American pulse on an occasion calling forth an expression of gratitude for a noble deed accomplished. Yes terday the government of the Empire City extended the honors due to this gentieman. At first the Common Council invited Captain Lorraine to @ public dinner. This he refused, no doubt irom a sense of modesty. He did, however, accept the invitation to inspect the public institu. tions, and yesterday the programme thus adopted was faithfully and sumptuousiy carried out, Mayor Havemeyer, the members of the Jommon Council, Commissioners of Charities and Correo tion Laimbeer and Stern; Police Justices B, T, More gan, Kilbreth, Wandell, Fliammer, Murray and Ot terbourg; Judgo Carter, ‘rom Wyoming Territory; Protessor Clark, of the Mount Washington Gor legiate Institute; Captain Budd, of the Dack Oom- mission; Messis. Perley, Hatch and Van Cutt, the Fire Commissioners; Mr. Inman, son of the propjetor of the Inman line, and a large number & others, to the number of about 200, embarked on the fine steamer. Minna- hannock, foot of Twenty-sixth street, and {teamed away, first to the schoolship Mercury, #ucuored opposite Hart’s Island. After making fast to the ship, Mayor Havemeyer aud Sir Lambton Lorraine and Alderman Vance, with Mrs. and Miss Have- meyer, Mrs. and Misses Vance and the balance of the party, ascended the ladders, and, passing througn a iine of the boys drawn on the spar deok, took up a position on the quarter deck. Captain Giraud gave the oraer to bis command to “ioose” sail In a twinkling 200 boys manned the riggings, climbing up the ladders like so many monkeys, and out upon the yards, where they cast off the “gas kets’ holding the canvas to the spars, The snrilt whistle of the voatswain caused them to “loose”? and the ponderous sails dropped from their laah- ings. Orders to furi were again given, the ‘canvas Telastened and the boys came down the rigging. Owing to the high wind prevailing the boys couid not make sail. Captain Giraud introduced Mayor Havemeyer in @ neat speech, stating that the occasion of the visit of the numerous company was to show the honored guest Of the city the ship where the boya. were taught the noble art of seamanship. Mayor Havemeyer spoke to them as follows:— My Dear Bors—It gives me great pose to introd to you Sir Lambton Lorraine,the late commander of Maiesty’s ship Niove, who is and of this occasion its honored guest. been spent on the sea, on which he has ac disiinction. and commended himself particularly to our people by his heroic magnanimity in saving from butch. ery by the »panish authorities ay ‘ge numver of Ameri- can citizens. In extending to hi hospitalities ot our city {ts authorities did not suppose their work would be! well done unless Sir Lambton Lorraine was introduced to you to enable you to read a lesson of his experience from his own life, knowing that his narrative would far- nish an Incentive to you it you would acquire any suo- cess in your cailing to walk in his foolsteps. (Uheers.) Sir Lambton replied:— Maz. Mayor, GeNTLEMEN anD Bors—I am much obliged for your cheers. 1 will not lecture you avout naval mat- ters, as was suggested by the Mayor. I expect yon get AULT wish pretty well lectured on ‘board here. that Ifyou rouse up promptly in alt kinds’ of re gbey your officers, shout “Yankee Doodle” and “star Spangied Banner,” in tume you will make good sailors. Three rousing cheers were given for Captain ine. An inspection of the ship follows the boys sung a song to accompaniment on the and the company partéa irom the Mercury, the again manning the rigging, giving more cheers, which were returned by the party on board the Min-{ nabanock. It being late a straight line was taken for Blackwell’s Island. Here the guests were re- ceived on landing by Mr. Jonn Flagler and escorted to the Penitentiary, where the institution was in- spected. The party then proceeded to the Gov- ernor’s Room at the Warden’s house, where Ware den Brennan, of Bellevue Hospital, had pre uous dinner. ‘(wo hundred persons sat 0 this repast, Mayor Havemeyer presiding at the centre table, and Sir Lambton reine, tne guest of the day, and Alderman Yan Schaick on his right, Alderman Ed. Gilon and «Assistant Alderman Jotun Theiss on his leit, President Vance at the toot Of this table. The good things on the table disappeai 1n an incredibly short time, the long sail .on river and the bracing air having sharpened every one’s appetite. At the dessert Mr. President Vance rose and bade the company to fill their glasses and drink to the health of the noble guest—a man whom not only every American citizen, put every humaat- tarian, delights to honor. He would, therefore, ropose the prosperity of Sir Lambton Lorraine. is toast was drank standing and received with three hearty cheers. Sir Lambton Lorratne begged that he would be excused, being hoarse, He said :— Mz. Mayor anv Gi 288 shits ENTLEMEW (and, I am haj ladies)—it iy said of great men that some are some become great and others have greatness’ upon them. 1fT have not this to say, I feel a has been thrust upon me at this cordial recep’ hands of the generous that portion who are New cltizens. As 1 sald last night 1 now repeat it, that vices done are only such as any one would under such circumstances. (Applause.) I to recall any ‘recollections of the t Rantiago de Cuba, but I do ‘ hte press has fallen into in regard my action. I was at santiago in the Niobe, by order the Commodore of the squadron I can only ask a: member of the community what course they would ha' ursued under similar circumstances. No one c ave acted differently. (Loud cheers.) Gentlemen, there ” is another false impression which I think was started the New York papers, that I took ts Upon me to bomb: atened to do so. Fy 3 ic RRS. that town, and even thre: This is @ mistake, for no such authority was given me, nor was any such order issued by me. But there may have kin- been such pretensions to dred motives, which I have to say were not looked upon by the Commoiore or the government as necessury. I have to say that the Spanish vovernment caine torward promptly and that Senor Castelar en deavored by every cifort posible to stop these excou- tions. All these things were done contrary to the orders of the general government, through the orders and owing to som na.e ollicer, expec: whom I will not here men not attend to the orders of his own goverument In conelusion, I return you my hearty thanks ior your cordial hospitality and the ex- cellent reception | have received at your hai anal have now to propose to you the heaith of your Chief Magistrate the Mayor. (Prolonged apptause.) Mayor Havemeyer responded to this speech as follows:— 1am very much pleased to be present on this interes ing occasion, an occasion in which the public authorities of this city have telt it to ve their duty to acknowledge the distinguished service which Sir 18 rendered a large number of our countrymen when in rocess of execution by the Spanish authorities. Jt is rue that the presence in Spanish waters of an American ship under the present disaffected cundition of the native Cubans to the mother country wusof questionable propriety, aud argued no good to & government with which tnéy had uo sympathies ; Yet, in the light of our Present civiuzation, ail enlighte: nations accord such interference the rights of our common humanity, and while Lacknowledge that some allowance should feclings which such an made for the exasperated interference would naturaily engender, } am in full ace cord with the. authorities, 0! in the tness of Proper expressions of admiration for the timely, herolo and generous intervention of our honored guest, tor the Preservation of the lives of our te Pe ciieene, PRAn of ‘whom were doubtless iguorant of the uses to w! in ol ey were to be put, and ot consequences they hi td it Sir Lambton Lor Fela xteeded his uy, and mude himself sineniable to raine exceeded his duty, the censure of his government, but when I remember the cry which came to us irom an American com+ Tmunder when the British fleet in i upon the Chinese ports in Chinese waters was-at a disadvantage, that “biood was thicker than water,” and by his timely Hi Pune. tee ot thet sigue irom santiago de Gu cho of that shor tie fives or ‘Amorican citizens were endangered. In response to the health'of the Commissioners of Charities and Correction, Commissioner Myer Stern responded in an appropriate speecn. It was late when the party re-embarked on the Minnahanoock and returned to the city. Sir Lambton expressed himself to the HERALD repre sentative 2s highly pleased with America in gen- eral and the reception he recetved here in particu- He jelt proud of the country, Captain Lor- raine is a8 modest as he is brave. He affects none ot the Dundreary airs, common to English nobiltty. He carries in his countenance the stamp of honest sailor pride, and is affable and courteous to ® jegree. . ‘tte police arrangements, which wore excellent, were ul he personal suporvision of Superin= tendent Matseli, assisted by Captaina Allaire, of the Twenty-first; Hedden, of the Thirteen! and ‘an, Of the Eighteenth precinct, and Dri Captain Copeland. Everybody was delignved aud returned to the city satisfied that proper acknowl edgement was made to @ great man for honorable and lasting services rendered this country. THE CHICAGO CUSTOM HOUSE BUILDING CiIcaao, IL., April 22, 1874. Arrangements are being perfected for a grana display and celebration on the occasion of the lays ing of the corner stone of the new Ouatom House, on the 24th of June. It has been decided that the invited guests of the city on the ceremonial occa sion should be the President of the United States and the members of his Cabinet, the Justices of the Supreme Coart, the President of the Seni het Speaker oi the House of Representatives, Gener: of the Army and Admiral of the Navy. Lientenans General Sheridan will be requested to act a8 Grand Marsnal, but the immediate ceremontes of laying the corner stone will be under the coutrol of the Masonic Order. The Odd Feuows and Knights of Vythias Will algo take part =} &