The New York Herald Newspaper, May 2, 1874, Page 3

ge JAPAN AND FORMOSA. A Japanese Naval Expedition Moving Against the Islanders. The War To Be Prosecuted’ by American Officers. United States Diplomacy at Yeddo. JAPANESE ANNEXAT oN oe Masser of the Captain and Crew of the ; American Bark Rover. San FRANCISCO, May 1, 1874. ‘The Japan Gazette of the 11th of April publishes the following intelligence relative to the impe- rialist war movement against Formosa :—‘“Saigo, commandant of the fleet to Formosa, sailed trom Yokohama on the 9th of April, There are about 1,000 troops in the expedition. The feet will rendezvous either at Foochow or Amoy, A new department has been established by the govern- ment, to look particularly after Formosan affairs.”? History of the Causes which Have Con- duced to the Conflict—Piracy and Other Outrages by the Formosans. The intelligence which 1s published in the MERALD to-day respecting the satling of an im- Perialist Japanese expedition fitted out for the purpose of extending the sway of the Mikado over the non-Ohinese portions of the island of Formosa is of special interest to the United States, Ita naval, military, political and general details are all in American hands, and even in its inception our late Minister at Yeddo, Mr. De Long was consulted, though it must be stated that the part he took in the matter did not meet the approval of the State Department at Washing- ton, Formosa was also the scene of the massacre of Captain Hunt and the crew of the American bark Rover, of Long Island, in 1867, and also of the repulse in the same year of the force under Admiral Bell that landed to punish the murderous natives, in which affair @ brave oMcer—Lieutenant Commander Mackenzie, United States Navy—was killed, Notwithstanding Japan is on the eve of a rupture with the Corea in consequence of repeated Insults, and that the mass of the Mikado’s subjects are loudly calling for war against that tributary of China, and that a@ rebellion has just raged in the southern part of the Empire which placed Amer- ican and European residents in imminent peril, the government pursues a policy of annexation of neighboring territory by both diplomacy and War. The existence of hostilities with the savage tribes of Formosa will effect seriously the com- merce of civilized nations m Chinese and Japanese waters, and will effect, too, toa very great extent the food supply of a large number of Uhinese. The Formosans, it is well known, are given to piracy, Ana a condition of war will certainly stimulate them to pkey upon vessels coming near their coast, which isa part of the highway to great Eastern Ports, ORIGIN OF THE DIFFICULTY WITH FORMOSA. The origin of the dimculty with the savage tribes of Formosa, who inhabit the eastern part of the island, is as follows:—About two years ago the Kingdom of Loo Choo or Lew Chew, consisting of a group of thirty-six islands, possessing a deligntful climate gnd a soil of great richness, and lying mid- way between China and Japan, was incorporated into the latter Empire and the King reduced to the condition of an ex-Daimio and assigned a residence fat Yeddo, which he accepted. Loo Choo had always been considered tributary to China, but the Japanese Foreign Ofice now claim that the islands were dependencies of that government for hundreds of years. It istrue the natives are of the same race as the Japanese, and have not merely adopted their costume, but speak the language of that people. The United States had a treaty with Loo Choo, negotiated by Commodore Perry in 1854, which gave to this country an interest in its cop- tinued existence as an independent Power, MASSAORE OF A JUNK’S CREW. However, it so happened that in the summer of 1872 a junk’s crew of Loo. Choo people, who had been wrecked on Formosa, like Captain Hunt and bis sailors in 1867, were slain by the natives of the Island. The Japanese determined at once to pun- ish those people, and were only delayed by want Ofmaps and charts of the coast and mainland, Mr. De Long, having received a satisfactory reply in reference to our treaty with Loo Choo, which rovides for the proper treatment of the crews \d the care of the cargoes of American vessels wrecked on the coast, as well as for a burial ground and for furnishing pilots, the foreign min- ister asked Mr. De Long for information respecting Admiral Beil’s visit to Formosa in 1867, At ths junctare General Legendre, then United States Consul at Amoy, who had accompanied the expe- dition to punisn the murderers of the people of the Rover, arrived at Yeddo. This gentleman, the de- spatches published yesterday state, is to exercise supervision over the political and general aetatis of the present Japanese expedition to Formosa, and Lieutenant Cassell, of the United States Navy, Jate commanding the man-of-war Ashuelot, which formed one of Admiral Bell’s squadron, has charge of the naval part of the enterprise. An oficer of the United States Army controls the military THE COURSE OF MINISTER DE LONG. Mr. Legendre possessed all the required informa- tion, with maps, charts, &c., and was. of opinion that it was feasible to undertake to obtain by peaceable means suitable guarantees for the Japan- ese. But the latter, ic would seem, had deter- mined upon conquest, and it likewise appeared that diplomatic negotiations of some kind were pending between our government and China rela- tive to the island. Mr. De Long wrote to Secretary Fish that he thought he “observed an opportunity, ‘with the assistance the General (Legendre) could and seemed willing to lend me, to furnish this government with a map of information useful to it, thereby saving it from making any tll advised efforts, and at the same time to put our legation at Pekin and yourself in such rapport with the views and intentions of this government as to be of sub- stantial benefit to us, and at the same time ad- vance my standing and intimacy with this govern- ment. Actuated by these views, I requested Gen- eral Legendre to remain over here for one steamer and assist me with this government by imparting to tt such information relative to his observations of Formosa and its inhabitants as in his opinion and my own might, without impro- Priety, be given.” JAPANESE POLICY AS OPEN AS THE DAY. General remained and was introduced to the Minister of Foreign Affairs, who was ‘“sur- prised and delighted at thus being brought in con- fact with one so well informed on a subject 80 very interesting to them, and yet about which they could hear so littie,” He was provided with accommo - dation at Yeddo by the government, and Mr. De Lo! Minister, ‘+invited my participation in tions with Mr. Smith, the General and He id has twice visited me and conferred ‘upon the subject, being with me last evening until near midnight. The plan of action has not yet been resolved upon; but the Minister assures me that his action will be as open as the day to me, and that he will frame {it to coincide with the wishes of our legation at Pekin and of yourself (Secretary Fish).” Mr. ve Long expressed great obligations to the Consul, and was opinion that in serving the Japanese government in such a sub- stren, , Toving t our rep! pot iad at Porine iad: Aapsiananas MR, FIS APPROVES OF THE MINISTER'S COURSE. Mr. De Long wrote again onthe subject and stated that he had urged peaceable means to ob- tain what was required before resorting to war- like measures. But Mr. Fish, writing December 80, 1872, remarked that there were some pointe in e course of Mr. De Long's course of proceedings, e expediency and propriety of which were doubt. ful. He said, “The part you have taken in the negotiations for the employment of General Le- gendre by the Japanese. with a distinct reference % NEW YORK HERALD, SATURDAY, MAY 2, 1874—TRIPLE SHEET. . to the use of his eae wi recommended. Bess that you are not of the provision contained in the statutei oi Unit States, wi ct terms prohibits the diplomatic officers of the United States, both from recom- mending avy person at home or abroad for any employment of trust or post under the govern- ment of the country in which they reside, and also trom asking for any person any emolument, pecu- niary favor, office or title of any kind from any such government. The approval of the Department cannot be accorded to proceedings in evasion if not in direct contravention to these terms of the statute. SHARP WORDS OP REPROOP, Mr. Fish continues:—‘‘With regard to your re- Mark that you had heard General Legendre si that having once been Sppolnied by the Presh of the United States inister, to Buenos he youd not cas ag! with, lower ran another governmen: je tention to the fact (gt GSninet tegenire wen not gppointed to toe 1 It is true that he was " omifiaved by the President to the Senate, ‘vat tHat body, declining to advise thereto, the apppintenent was not made, it ts more than doubt(ul whether a lomatic repre- sentative can, consistently with the terms of the statute, discuss such matters as these in his con- versations with the Minister of the government to which he is accredited; but it is Clear that any- thing he might feel authorized to state onsuch subjects should be in precise accordance with the facts.” Some time after this correspondence Mr. Bingham was appointed Mr. De Long’s succeasor as ler to Japan. Forman natal St te eranary ot 08a, jong been known as the granary o the Chinese maritime provinces, All the ates plain in the south resembles @ vast cultivated rden. The island les about eighty miles from he Chinese coast, Ita length is 250 miles and its breadth in the centre 80 miles; the population ts between 2,000,000 and 3,000,000. If war intervenes, as is now certain, or violent storms prevent the shipment.of rice to the coast, a season of misery ensues and extensive distress, with another re- sult—that of the Chinese resorting to multiplied piracies. The Chinese colonies are composed of emigrants who were compelled by poverty to emi- grate. They have intermarried witn the For- Mmogans, who bear no resemblance to the Celes- ‘tals, the former showing physically @ close alliance with the Malay and Polynesian tribes. The colonists are said to be an industrious race but very troublesome in respect to the home authorities, having irequently risen in open re- bellion agaimsat the mother country. mixed race affects continual hostility towards the na- tives, who are entirely uncivil! but maintains @ close eonnection with them, and these relatives are known to assist the Formosans in their crimes and share in their plunder. The Chinese territory in Formosa having been for a long period gradualiy extending, the really inde- pendent tribes have receded towards the eastern coast, where they are now to he attacked and sub- dued, if Japanese prowess, alded by American ex- perience and skill, can effect such aresuit. It is One of these tribes over whom the Chinese dis- avow autuority and responsibility that murdered the junk’s orew of Lew Chew people, |APANESE OOLONY IN THE ISLAND. The Japanese planted a colony in Formosa over 200 years ago, but the Chinese have been estab- lished there since 1430, atone time a great part of the island belonged to tag but the Dutch, who bad settled there, expelled the Japanese and the Portuguese and becaine its sole rulers in 1632, The Chinese finally expeiled the Dutch, but have only claimed dominion over @ part of the island. The natives, organized as tribes and entirely different, as stated, Irom the Mongolians, have remained in @ condition of barbarism and independent, and are best known for their piratical and sanguinary character. The Chinese maintain @ garrison of 10,000 men in Formosa, but the usual armed force be estimated at double that number, all infantry. If, as the despatch trom San Franciaco states, it is the intention Of the Japanese government to assume control of the eastern portion of the island it will certain); “occupy a long time.’ The natives are well armed, as the late Admiral Bell found out in 1867, and they are also determined fighters. The melan- choly story of the cruel slaughter of the captain ancy Of the bark Rover in 1867 can be briefly 01 THE ROVER MASSACRE, The vessel commanded by Captain Hunt was wrecked on the coast of Formosa on the 12th of March, 1867, and ali hands made p! natives. One of the crew, a Coinaman, statement to the United States and made a full Consul at Swatoo, tated iter he reached @ Chinese e ind a jan _belong- set to go among the savages to Persuade them kill the officers and crew of ¢ Rover, but aliow them to be ransomed. On the return of the man on the following day he learned that five of the crew were murdered on the after- noon of the attack, and that the other boat had arrived jn the night and tWo of the crew were murdered on the next day. As soon as the Néws reached Mr. Legendre, the United States Consul at Amoy, whose name has been frequently men- tioned, preceeded ft) the Tat-wan-i0o, the principal port of the island, in the United States steamer Ashuelot, reaching that place on ‘the 28th of April. He wrote to the guthorities of the island, stating the circumstances ene sacre me asking an immediate in’ Legendre also asked that the persons im} 4D the outrage should be punisbed according to the Chinese laws and offered the assistance ol the Ashuelot to that end and the recovery of the American prisoners, should there be any IN THE HANDS OF THE NATIVES, To this the Taotai, General and Prefect, the highest authority in the island, replied on the iol- lowing day, relating the action taken in the mar- der of the crew of an English vessel, but wnich was afterwards explained to have reterence to the crew of the Rover, the misunderstandiog aris- ing from an error of the linguist at the British Consulate. The Taotai said that he knew all of the crew of the Rover had been murdered. He de- clined anv assistance from the American snip-of- war; but at the same time promised to do every- thing in his power. As the Chinese authorities made no inquiries about the case Admiral Bell, commanding the United squadron in the Chinese waters, sent an expedition consisting of the Hart- ford and the Wyoming agaist the savages. The crews of these two vessels had a@ fight with the Formosans on the 13th June, 1867. After four hours advancing against a deadly, and at times invisible, foe, the party were compelled, by exhaustion and loss from sunstrokes, TO RETURN TO THEIR SHIPS, Lieutenant Commander Mackenzie was killed but no other casualties were reported beyond those caused by the heat. The savages, it would seem, were well armed, although’ no other evi- dence of intercourse with civilized natious were discovered. They pursued an admirable plan of retiring slowly before the crews, frequently am- bushing them in the deepjungie. 1n bis despatches to the Navy Department Admiral Bell: sugge: that the only effectual remedy against the bi barous outrages on shipwrecked mariners by these savages was to occupy the island by a military force. In July General Legendre induced the Ohinese authorities to send a torce of full 2,000 men to South Bay, in tue district inhabited by the savages, which expedition the Consul accompanied. ‘The ex, dition arrived at the limit 01 Chinese jurisdistion July 23. A deputation of Chinese interceded for the savages and offered security for their tuture good behavior. General Legendre had an inter- view with Toketok, head chief of the eouthern savages of Formosa, and the-chiefs of the eighteen tribes, whom he called to account severely. The chief pleaded as an excuse former massacres by whites, but promised tuture good behavior if gen- erously dealt with. A fort was erected for the refuge of shipwrecked mariners and the Chinese became security for the fecha Sat faith and signed an agreement to assist fotelgners in deal- ing with the Formosans. ‘The Consul returned, bringing the body of Mrs, Hunter and some relics of the Rover. According to Mr, Legendre the Fer- mosans have kept thelr promises and in two subsequent cases cared for and protected the crews of two Knglish ships which were wrecked there. He now goes ‘kK to aid in reducing the country of the murderers of the Rover's crew to the Japan- ge rule, SUICIDES. By Shooting. A man entered the Eastern Hotei, corner of Whitehall and South streets, Thursday evening and engaged a room, registered his name as John Smike, New York, and retired. Not making his appearance up to noon of yesterday the proprie- tor was notified, god, causing the door to be opened, the stri nge was discovered lying on his back upon the floor, dead, and bis right hand was clenched @ large-sized revolver. Upon examination of the @ wound was discovered through the roof of the mouth, trom which the blood had flowed copiously, It is not known at the hotel at What time deceased had shot himself, but irom the appearance of the body he must have been dead several hours when discovered. The Firat precinct police were immediately informed and Coronor Croker notified. It was supposed that the name of Smike was assumed, there being noth. img found among the effects of deceased to lead to 2 identification, Tné body was removed to the jorgue, New Haven, Conn., May 1, 1874, Captain Samuel Magone, of Westbrook, com- a yee ealeae toon by blowing his brains ou he cause of the was insaniy, resulting from heavy pecuniary losses. s By Hanging. Caspar Teust, a German, fifty years of age, ative aMuence to poverty, hi Dimeelf on Thurs- ening at his residence, No. 68 Sheriff atreet, Coroner Woltman was notified to hold an inquest Over the remains, By Taking Poison. Information was received at the Coroners’ street under circumstances ‘which induced the belief that he had committed suicide by swallow- in quantity of magnetic liniment, used ior x roaches, while under the influence of liquor, Deceased, who was @ cabinetmaker, out of em- Pats, Yoroner Kessler will hold an inquest. warm asian | WASHINGTON. The Inflationists Mustering for a Last Struggle. DISTRIOT OF OOLUMBIA ABUSES, Ex-Secretary Boutwell on the Sanborn Contracts. WASHINGTON, The Forlorn Hope of the In: A New Inflation Bill To Be Presented to the Senate—Difiiculties of 2 Compro- mise. The Senate Finance Committee held another Meeting this morning on the subject of acting on the House bill or of providing some kindred Measure which will meet the opinions of the President and at the same time comport witn the dissimilar views of the Senators who favor an tn- crease of the currency circulation and those who re averse to the addition of any more paper promises to the present volume. This will cer- tatnly prove a very dimicult, if not a” hopeless, task, judging by the doubtful tones of Senator Sherman when referring to the financial Probabilities, He says they have discussed the whole question of framing a bill, but have not yet reached any definite decision; that nothing looking to free bankipg, without a strong provision for redemption, will be acceptable to those whom he represents, The low rate bond will not do, neither the four anda half per cent, nor the three sixty-flve convertible. The latter pro- Position, he thinks, is now entirely abandoned. He still favors his five per cent gold bond as the most equitable measure of redemption for free banking. The inflationists, however, nave been hard at work to perfect a bili covering their wishes on the currency, which will be presented in the Senate in a few days. Every ‘ong of the friends of the measure will be present, and Senator Brownlow, who Is now sick in Tennessee, 1s to be sent for, so that he may be present to vote with the majority, solid as heretofore; and no por- tion of their strength is to be left unemployed, Comptroller Knox’s Statement of the Amount of Unissued Legal Tenders. The Comptroller of the Currency, in response to @ resolution, to-day transmitted to the Committee on Banking and Carrency a statement exhibiting the amount of circulation unissued of the $54,000,000 authorized by the act of July 12, 1870, Of the amount unissued $1,197,820 has been as- signed to banks already organized, ana $3,073,500 to banks in process of organization, Total, $4,271,320. This amount has been assigned to eighty-six different applicants, in twenty different States, the amounts averaging about $50,000 to each applicant, The amount issued, the number of applicants and the States to which such agsign- ments have been made are as follows:— States. Michigan . co po rps bd aT RD TCO COMO s+000084,271,8 olumbia Abuses—Mor- rill’s Bill of 1867 Providing a Form of Government Te Be Resuscitated—Some- thing To Be Done. The recent developments made in the District of Columbia affairs by the Investigating Committee have caused some of the members and Senators to cast about for some method of relief from the ir- regularities and inefficiency of the present gov- ernment. They have concladed that this is to be found in @ new charter, and the bill which Senator Morrill, of Mame, matured in 1867 for the government of the Dis- trict, 18 being looked over and favorably discussed. It provides for the appointment of three commis- sioners, in whose hands the management of affairs shall be placed. They are to be appointed by the President and confirmed by the Senate. Senator Morrill worked over the bill for upwards of three months, and it is thought that it will be adopted, or something nearly like it, Another bill has been prepared, appointing five commissioners, who are tobe nominated by the Speaker and Vice Presi- dent jointly dnd also to be confirmed by the Senate. Senator Ferry, of Michigan, and Representative Wilson, of the Investigating Committee, are look- ing into the former bill, and, 1t is thought, will re- vise it somewhat, when it will be introduced into both houses, relatively, by them. The latter bill has a great many friends in the District, and it is thought that active measures will soon be taken to pass one or the other, thus doing away with the Board of Public Works and the Legislature. The latter institution will die hard, because the smali fry politicians can, through that channel, ventilate their noisy and ungrammatical buncombe and do the jobbing for the conniving contractors in using their influence and making it felt as cor- rupt legislators. Important ‘Amendment to the Geneva Award Bill. The House Judiciary Committee to-day agreed to an important amendment to the Geneva Award bill, to the effect that payment will be made to the mutual insurance companies for all losses sus- tained by the vessels for whose depredations we made claim against Great Britain, provided no member of a mutual insurance company shall re- cover for any war premiums paid to such com- pany for risks. In other words, they will be paid for all losses and cut off from war premiums, The amendment further provides that they shall dis- tribute the money so paid them among their members who contributed to pay the losses, Close of General Howard's Defence. The testimony for the defei in the Howard case closed to-day, and the Judge Advocate offered rebutting testimony, which the Conrt declined to receive. General Howard submitted a written statement. The Court then adjourned until Tues- day, at eleven o’clock, when the counsel for the defence will maxe a final argument. On the fol- lowing Thursdey' the Judge Advocate will close the case in behalf of the government, after which the Court will make up its decision and the whole Matter will be referred to the President. The Nomination of an Eminent Ex-Con- federate Confirmed by the Senate. The Senate to-day confirmed the nomination of Philip Clayton, of Georgia, to be Consul at Val- Paraiso. Mr. Clayton was Assistant Secretary of the Treasury to Howell Cobb, under Buchanan’s administration, and both resigned office at about the same time to take part in the reveliion. Mr. Clayton occupied the position of Assistant Secre- tary of the Treasury under the Confederate gov- ernment for avout a year, when he resigned. He voted for Grant in 1868, and has ever since acted with the republican party. é ‘The Senate was occupied nearly two hours on the farther discussion of the nomination of General Who | modook to be " had become reduced by misfortunes from compar. | necovcleeinns ee ered at reached THE DISTRICT INVESTIGATION. Light at Last—Kirtland Under Exami- mation—He Confesses Recetving Notes Office, last evening, that Julius Schmitz, a German, from Chittenden and Discounting thirty-one years of age, had died at No. 160 Essex Them, Wasuinaron, May 1, 1874, ‘The District of Columbia Investigating Commit- tee to-day examined the Property Clerk of lector of the District, named tn the charges of the memorialists as one of the conspirators to. obtain and control contracts, denied all knowledge of a conspiracy, and denounced the charge as malicious slander. He read a letter to show that Governer Shepherd severed his connection with the Port- yng. Vement Company and Metropolitan Pavement 1) ointed @ member of the Soe) mish epusroomies © mente KIBTLAND IN THE CLUTCHES. Pending the examination of the witness the committee held an executive session to examine A. B. Kirtland, who was secured the night before last in the Gilsey Honse, in New York, and brought to se, this city in the ‘custody of the Sergeant-at- Ar: 0 tne Senate last night, Paes ee r. Kirtland was examined in private session, trom half-past eleven o'clock A. M. until three P. M. His story 18 substantially as follows :—|} - mits that he received ion ir. Chittenden $8, at no time any arrange- in notes, but that i} had ments or any negotiations with any member of 1 ard of Public ores: that after he tes he went to Colonel Mi b igen are ti loore, a business part- Bar min, Govern eller, and red him one-! ol a . Moore said he 7 17 the notes, but if he (Kirtland) would & He Pi a discounted HE MIGHT ACCEPT SOME OF THE MONEY. Witness further testified that he got the notes discounted, and that he applied the full proceeas to his own ber and did not again offer Moore any share, nor did he receive any. He was oross- examined very closely, but the above is substan- tially all that could be elicited from him. The witness will be examined in public session to-morrow, to afford counsel on both sides an op- portunity to cross-examine him, BOUTWELL ON SANBORN. The Ex-Secretary’s Examination Before the Committee on Ways and Means— The Celebrated Contracts ond the Re- spOnsibility Therefor. WASHINGTON, May 1, 1874, Senator Boutwell appeared before the Commit- tee on Ways and Meang this morning and made a statement that when the law of May 8, 1872, was passed, his mind, as Secretary of the Treasury, was directed to two things—first, that the department should have the power to annul contracts at any time specifically, and, second, that it should not only be understood, but specifically provided in the contracts, that all moneys collected snould be patd into the Treasury through the proper officers, He advised the insertion of these two provisions, which accomplished THE DESIRED RESULT, He did not expect much money to come into the Treasury, as he did not have much confidence in what some persons engaged in the detective ser- vice said they could recover. Persons would come to nim with statements about the withholding of money and of frauds of various kinds against the government. The statements were always consid- ered when it was supposed there was @ good foundation for them, but not otherwise. He re- ferred to his order preliminary to a contract with Kelsey for the discovery and collection of money due, but withheld by persons and corporations, providing that no money be paid to him unless the money should be secured, and said the con- tract itself was according to the form determined on at the time, and in conformity to the object he had in bis mind, He recollected that Kelsey called upon him, although he did not recollect that he saw the list of the corporations and parties against whom the claims were made; ut he learned that one of these claims was Bt =6& ~=6horse —_railw: in Phila- deipnia. ithough @ moiety of fifty per cent was allowed by law, yet if the sums to be collected were very large he should have provided that the allowance should have, proportionately, been much leas. Judge Pendrey, he recollected, roposed to collect certain moneys against a Weavern railroad, and in his conversation with im something was said about a reduction of com- pensation. The case was a large one, and his im- ression was that Pendrey did not obtain a con- ract, SANBORN'S CONTRACTS. He conld not recall any interview he ever had with Sanborn as to his obtaming a contract. Be- fore Sanborn became a special agent of the Treas- ury Department he was not aware that he had any wiedge t im different from what he had of an a) 80 employed. While in the ser- vice of the department he ovtained some knowl- edge of Sanborn by going over the list of special agents and making inquiries of Mr. Madge concern- ing them. The object in over the list was to find out the least eficién' ents, fo as to ap- int better ones in their places. The impression he derived from pent See (ta Pag oo. born was was ‘Treasury. f The fact that Sanborn nad a contract was not bron; Hrd i 4 om mr ripen om- clally or personally, nor had he officially or person- ally Knowle oY contracts made with anybody else under the law. Mr. Boutwell was interro- gated at length, saying, among other things, the preparation of the oe with reference to Kel- sey'’s contract was intrusted to the Solicitor of the Treas who was the law officer of the depart- ment. erefore he felt at liberty to rely on him that the papers prepared in his oitice were legal in form, and he believed he would not be led to sign anything that was not in accordance with the law. Having his attention calied to the provision o/ law relerring to the COMPROMISE AND SETTLEMENT OF CASES growing out of customs revenue, Mr, Boutwell said the construction put upon that provision when be went into the Treasury Department was that it algo applied to internal revenue cases. He regarded it asa Feneral power to be exercised 4 the Secretary of the Treasury as applying to ail branches of the department. The Secretary was, of course, subject to the restrictions of law, au- thorized to go om and make collections in his honest discretion. It was not thought neces- sary to consult the Commissioner Internal Revenue, but ne considered it to be his duty to advise with the Solicitor of the Treasury betore commencing sult as to the proper course to be ursued, altnough the Secretary was not bound yy the advice of the Solicitor. It waa simply im- possible for the Secretary to sit in nis office and ‘advise clients what to do, He must rely on the good faith and ability of his assistants or subordi- nates in office. He was sure the Sanborn busi- ness was Dever & matter of conversation between him and Secretary Richardson. Having been in- formed that Sanborn erase the impression to the committee that he and Mr. Boutwell were on terms of intimacy, Mr. Boutwell said he, never had any personal relations with Sanborn at all. He haa heard of Sanborn through Mr. Madge, who 1s chief of the special agents of the Bureau. SANBORN HAD NO RIGHT TO CLAIM HIS PERSONAL FRIENDSHIP and intimacy. The law under which such nts were appointed was very peculiar, and placed the Secretary in @ very disagreeable position, If he refused to employ them they would complain that they offered to collect hundreds of thousands of doliars iftegally withheid frum the government, but that the Secretary wonld not let them do so. On the other hand, if they were employed they would exact their own terms, because it could not be expected that a man should show his hand and the government then turn round and say, aiter obtaining the information, ‘We can doit cheaper.” ‘This would be dishonest; therefore the law was different from. other law. The responsibility was not in the Treasury Department. Reverting to Sanborn, Mr. Boatwell said he treated hun iy ag 1n business, but otherwise he had nothing 3 lo with him. During his term of office only five such cases were settled. They were small ones, amounting to $10,000; but he had no knowledge that payment had been made, In response to an inte! tion, Mr. Boutwell said no Secretary of the Treasury can ever Pr rly be made responsible for all the business o! de- artment, except there evidence in matters rought bg ager Ce et The Secretary 7 never less than an hour a ay signing papers, an sometimes three hours are thus employed. He ns the rs a8 presen according to the aetna iRiials dine the contracts bore Bottcttor Banflela’s initials. THR ORDER COMMANDING ASSISTANCE FOR SANBORN. Mr. Boutwell’s attention waa called to an order signed by him and addressed to collectors and as- sessors, directing them to assist Sanborn in such way as he may ask in the examination of oficial recoris, Mr. Boutwell said he stood by this legal and proper. It merely allowed nim to the records in the assessors’ and collectors’ offices with reference to persous who have with- held taxes due to the government so as to avoid going after those who have already paid their taxes. Mr. Boutwell said this may have been @ technical departure irom the . law, considering it in she light recently brought beiore the committee, As the appointment of Sanborn, ‘he as das it Was made on some rec- ommendation. in writing, he supposed it would be found in the Appointment Bureau or in Mr. Madge’s office, His first knowledge of a con- tract with Sanborn was derived from Solicitor Banfield, and he had no doubt if he made any re- mark concerniny matter it was not unfavora- bie to Sanborn; and he knew of no reason why he should not be appointed. ‘The examination here ended, having continued two hours. HAMILTON OOLLEGE, The Clark Prize Exhibition. » CLINTON, N. Y., May 1, 1874, The announcements for the twentieth Clark Prize Exhibition at Hamilton College give the fol- lowing asthe competitors for the Clark prize in oratory :—Abel B. Blackman, of Newark, subject— “The Supernatural in Literature ;” Edgar A. Enos, of New Hartford, subdject—“The Super Literature ;!” Charles ol Hemenway of subject—‘John Stuart Mill, the Josopher ;” George “The First and Nineteenth tian Religton.” John P, Silvernal, of Bin; the Board of Public Works with reference was intoxicated on Thursday night, | t0 the method of issuing and receiving ma- teriala for 1morovements Mr. Lewis Clephane, Col- ton, sabject—“The Slege of Londonderry ;” Perr N Smith, Jr, of Gi TL, supject—'‘President Lincoln and His First Cabinet." The prige exhibition wii occur June 3. | Obtaining of a line to New York for the Atlantic ERIE. | James McHenry Speaks on the Status of Erie. The Romance of the Atlantic and Great Western. A Queen of pain Figuring as a Rail- road Speculator, The Problem of Cheap Transpor- tation Solved. On Thursday morning Mr. James McHenry, the great Anglo-American railroad magnate, arrived here by the Scotia from England, and among rail- road men his arrival has been waited for witha great deal of interest, as bis counsels are expected to change the policy of several of our railroads very materially, probably that of the present management of the Erie Rail- way Company. Many rumors have been set aficat by the persons both im favorof and against the present management of the company as to the ob- ject of Mr, McHenry’s mission, but the real purpose | will be seen in a few days when the at present di-*| vided counsels are made to assume a homogeneous shape. One of the HERALD reporters called upon Mr. McHenry yesterday afternoon to see him as to the object of his visit here and what he believes the upshot of the present complications will be. Mr. McHenry looks as hale and hearty as when he came out here in 1865 with Sir Morton Peto, whose visit at the time created such a momentous stir, He says of himself that he feels as full of the combatative quality as he ever did, and, while he may be attacked and beaten for the time, he will fight his adversaries as long as a spark of life re- mains within him, HOW MR, M’HENRY GOT INTO RAILROADS. ‘In this railroad business,” said Mr. McHenry, “it is one constant interminable squabble. The attempt 18 ceaseless, at least in this country, which I call my own, for I was born in Philadel- phia, to puta man in a bad way it he allows him- Self to be so dealt with, One can only fight these people with their own weapons, and this is the plan that I have adopted, Iclaim the credit of having always had one object in view during my lifetime, which was to sustain the credit of America, and I hold that what does the American credit in Europe more injury than all else is the dickering and tinkering with rail- road securities as carried on here. It disgraces us in the eyes of powerful nations. I claim the credit also of having been the first man in this country tosee the immense future there was in Europe lar the produce trade of this country. When Eng- land had laws against the importation of natural produce I first began and developed the beginning of the cheese and bacon trade, which has since become so important an item to our commercial prosperity. The first cargo of cheese that wasever exported from this country was shipped by | me on board the Great Britain on the | first voyage she éver made across the Atlantic | from New York. I exported butter to England when it was half the p ice here that it was there and when I had very heavy duties to pay upon it, This was the first opening our luce had | to go to Europe. It was while I was thus engaged | 19 my business and a large operator at { the time that—one night in tte year, I think it | was 1858 or 1850—I was at the American Minister's in Paris, when I was introduced toa General Ward, of Pennsylvania. He ens himself to be the President of a railroad known as the Atlantic and Great Western. FIRST START OF THE ATLANTIC AND GREAT WESTERN. ‘The only misfortane with this railroad was that it existed simply on paper, and not a rail had been laid nor @ car constructed. General Ward intro- duced Sed (the contractor of the roaa) and I was finally induced, after care- fully going over the maps, to invest £10,000 in the enterprise which I was to commence construc- tion with, The General and his brother-in-law started for New York, and one, on landing in New York, attached the money in the hands of the other, aud from that day to this it was the last I ever heard of it. I never saw that 000 ince, nor never will, I sup) the two vided it among themselves. Having for so far into the railroad busimess | thought it would bé no ide to leave it there, and | that at 1east I ought to get my money out of it; so I went seriously to work at the Atlantic and Gi ‘Weatern project. Coming over here d found that were all right, and fn- the grants and title deeds stead of finding difficulty in the whole mat. | ter everybody, ‘om = high to low, was in favor of it. 1 have still got letters from President Buchanan, irom the Chiet Justice at that time, irom Governor Chase of Ohio, and from the Governors, Senators and judges of all the States through which the road was to pass en- thusiastically in favor of the project. I saw a golden future for it, and put myself to work earnestly at the matter. It was represented to me that all that would be require for the | work and the iron rails would’ be | $1,000,000, I went to the mecgole of Sglamanca, at | one time Prime Minister of Spain, and got him to invest 000 in the enterprise, secured to him, and whieb he had paid back to him with interest the proceeds of the first mortgage bonds, This was soon expended, and then 1 raised £200,000 more myself, which car- ried the road on _ further. Then came the war, which put a stop for a time to our work. But I was determined to proceed, as { always had confidence in the road. 1 succeeded in getting QUEEN CHRISTINE OF SPAIN to invest £300,000 sterling in the road. She had | full confidence in it, and, though she has never had | her money back, yet believes the road must ulti- mately succeed. This was in 1861, and, nothing deterred by the war, the een put her $1,500,000 in my hands and told me | to putitin tne road. This money took us as far as Jamestown. Then [again got short of funds and came over here. By this time I found out that all those people who had been go lavish of promises of support had failed me whenI wanted them, From President Buchanan down not one of them | helped me trom the day I began the work. Mind You I should never have begun tne road | jut for the promises of Erie to give me all | the support in its power, which was to be done in this manner. Erie promised us a re-lease to pay the interest on our bonds, but when the moment came for this Erie fatied us, as did all the others, though this was @ distinct contract. Nothing daunted I went on with the work, and by dint or | hard pushing for money in England succeeded in at length fin hing the work. I then called for the assistance which Erie had promised us outside of | the release, but they evaded the question and I | got no satisfaction, The road was simply obliged | vo depend on its own bottom, and has done so all along. There wasa good deal of howling on the other side, but I managed to pacity, them, apd | we! things went along miad. until Fisk and | Gould got into power in le. I came over here, ; saw them and thought them rather aashing young | fellows, who had an intention of doing the right thing. They were anxious to get @ lease of the Atlantic and Great Western, which by this time HaD COST ME THIRTY MILLION DOLLARS, instead of the $1,000,000 originally ken of, I | consented to grant them a lease on the terms of | its earnings, 1 had a paying business of $1,800,000 @ year, and that was the price of the lease agreed upon between us, ‘I did not want any more nor any less than the road had been able to pay itself, beoause I already had had trouble enough with it; and, indeed, the road would never have been built but for the promise of a re-lease which these ruMans had made me. So FISK AND GOULD became the leaseés of the road in the name of Erie. One night, when they met, Judge Barnard leaning up against a lamp-post, he gave an order ap- inting a receiver jor the Atlantic and Great estern. Everything had been going along weil &t the time, and the road was in @ perfectly solv- able condition. I was brought over here once more and brought these two men. Fisk & Gould held that the appointment of a receiver broke the lease, and tne end of it was that of the 7,200,000 which the Erie owed the Atlantic and reat Western we received precisely $100,000, leaving the Erie in our debt $7,100,000, which was a perfectly sae claim, But the issue was not raised at the time, and we went on figh the matter in the courts. Then, fading that these men were determined to use all uniair means to ie, 1 arranging the plot which put the a management out of power so suddenly, I assure you now that in doing this I had three objects tn View—the raising of the value of American securities abroad and the rehabilitation of the American name, tne and Great Western, which was on of Great Western, which had become eat by the manner in'wnich fe hod bi een . Jhad no particular enmity against ou eet don’t care @ rap who man‘ Erie as long as the suiantic: gk gee Properly treated. 1 advant demand that when a distinct contract le tace it i be Kept. So the trap was 4] rung upon the | an advantage to A FE. } and afraid of what people say, over THE POWER IN MY HANDS to meke the President of Erte. I went to Van- derbilt and offered him the Presidency of the road. He declined it, after consulting with Horace (} and several othera. I asked him then who would be @ good man. “The best in America for the posi. tion, and honest’ as the day is long,” he said, « Peter B. Watson.” I never saw tson nor heard, of him in my ee but he became President of the Erie Raliway ompany. “On what co! jons ?’’ asked the reporter, seid Mr. McHenry. “It “No conditions at all,” i isked for @ lease of the Western at that time to Mr. Watson. But | thought such & man would act rightly by us, and, while want nothing more than ti ‘was worth, 1d no repetition of the tinkering that had been going on; for, yo wipe it away as you P , the Atlantic and Great Western is THE NATURAL CONTINUATION OF BRIE and one is almost necessary to the otber, but more Particularly the Atlantic and Great Western to the Erie. “And have you been completely satisfied with Mr. Watson's course towards your road since he has been President of Erie #”” “I have not. He is honest, and means well, I have not the slightest doubt; but he has grown so alraid of this howl which Gould sete up every now and then that the Erie is being traded over to the Atlantic and Great Weatern that Watson actually OPERATES WITH OUR ENEMIES. In other words, Watson 18 so upright that he turns backward. There can be no doubt that we Atlantic amd Great Western is necessary to the Erie, and yet nothing is done. I ask no more than a lease on the earnings of the road, but Watson and the present Board lack nesually, the courage to carry it owt, though they know that it would bo rie, In other words, they are afraid of what Gould may say, and this weak- hearted policy is adhered to in spite of the evident interest of both roads, Whether this will las I don’t know,’ “Are not the present Erie Board under some obligations to you besides?” “When the Erte coup d'état had been accom- plished the new management jelegraphed to me thas the jtreasury was empty. Wi! forty-eight hours I telegraphed them over 000 to get over the temporary difficulty, and after that I PLACED 4 CONVERTIBLE LOAN on the London market of $10,000,000 on four months and ata price which American securities never commanded before, which netted them ninety-five and a fraction. In spite of all this here are the two Toads not working harmoniously together at all,, when sey, ought to be in perfect accord, oe urchased the Cleveland, Columbus, Cincinnati ani indianapolis Railroad, making with the Atlantic and Great Western and the Erie a continuous line to the extreme West. Well now, if the Erie within @ short time does not make up its mind to co-operate witn us I shall simply take my 2,000 miles of road and make a bargain’ witn somebody else, in which case the Erie would be- come MERELY A LOCAL ROAD, This course, I believe, would be the ruin of the Erie, but I shall certainly adopt it if something is not done soon. The Atiantic and Great Western is the natural extension of the Erie, but still I am now in negotiation with another party who will be glad to co-operate with me.” “Who is that party?” asked the reporter. “Is it not Tom Scott?” ‘That I cannot say, but Tom Scott is a smart, wide-awake fellow and understands his business thoroughly. You see I am particular about the matter of an extension of roads at present be- cause I believe it to be the greatest mistake in the world that the present railroads do not adopt. CHEAP TRANSPORTATION, and yet under the present system it is Bh pes ane The railroads here seem to be the nat enemy of their customers and do all they can to ruin them. A man cannot make contracts for for any length of time ahead, for directly the road managers hear of it up go the freignts and the contract is broken. Now this is not the way to do. I would take contracts ahead for ten years at @ cent @ ton per mile if 1 had the control of atrunk line here, It is a perfect! safe operation, for is 4g all nonsense of the rail- Toad men talking al wear and tear a! w sors of stu A railroad rots out ag qin when it is not used as it wears out when It is, The endurance of a steel rail is incalculable, so that in- stead of ranning forty trains a day, as tes 4 do on the Erie, I would run, if necessary, 160. It would cost so much more than not running them as the coal costs. Now a bushel of coal carries 300 tons one mile, so that you see at ONS CENT A TON PER MILB what a profit can be made. It is ridiculous to allow such an opportunity to pass as presents iteelf now. The problem of cheap transportation can be solved by the present trunk lines, especially the Erie and its connections, Why 16 is not done I cannot imagine, It of incal- culable injury to ie country that con- tracts for carrying cannot be made any pie ahead. Bow, 0 the pain. con ie nae & BU] over are willing Yoontract ven years Anenoe il it _i® offered them, and the rates remain the same, the Seer obit the merchant and vice 80h, ing hand in glove. 1s are diminishing every year, and a cent per ton a mile will be considered @ high rate before long. When I was here with Sir Morton Pet Mr. Kinnard said to that = Fy me at Ag barrels of flour ghould be sent to New Yor ee a that e M4 learin, barrel, This would have been thougit inaaley by the railroad managers at that time, and yet it - Hes pome. to pass hout any revolution. This is 6 solution @§the proviem of cheap trans- portation.” “On what terms are you at present with Mr. Watson?” tes of course; but we do not see things alike, ARFUBLY OBSTINATE MAN it whi ie apne 1 Sei a@ three bit what people say so long as I know Tam venE wat he really, as I said betore, 18 80 feartul of the consequences of doing what he knows to be right that he plays into the hands of his enemies, ‘There is Gould intriguing to get back into Erie, and I have not much doubt that HE WILL YET SUCCEED, to the eternal disgrace ot this company, for if he ever gets another chance at that it will not probably survive the eifect.’” “What is the object of your visit this time ?’? asked the reporter. “1am here to give the Atlantic and Great West- ern either to another party or to give it to Erie, The Cleveland, Columbus and Indianapolis will go with it; but I am determined that tne Atiantio and Great Western shall force its way to New York. I have had to fight for its possession iong enough, and I am determined to kee] it now. With my project accomplisnea would imaugurate a system of cheap passenger lines carrying @ person for $5 irom here to Chicago. Such a course would cause an emigration West reater than the whole immigration irom Europe. ‘he poor people who want to go West now cannot do it because they cannot even afford $25 each; but cheap rates would cause such an emi- ration, and would do the cities of the Base good, too. by ridding them of an over abun- dant and not desirable hpi These are things which are practicable, and have been proved so in Engiang, where the railroads have 1ound that the cheaper they carry people the more they make by it. It is, by the way, a singular tact, and one I could never understand, that THE WHOLE TRAFFIC OF THE FOUR TRUNK LINES is not equal to the arrival of emigrants from Eu. rope. nere ail these people go to I can’t under- stand, What do you think, Mr. McHenry, of the accusa- tions of Danan concerning the accounts of the Erie road? “I have been assured that they are correct in every way, and I do not believe that these books have been falsified. As for the statement by Dunan that he only swore to the approximate earning of Erie it is @ simple lie, No such word was ever in these statements, @ railroad Loire hits would have been crazy who would have asker ENGLISH SUPPORT on such &statement. However, the English ac- countants who are coming over will settle all that. Everything is to be open to them, and the mere refusal of the smallest Paper then would ruin Erie in the eyes of Englana. ese people belong to the two Greatest firms of railway accountants— of Torquand & Co. and Quilter, Ball & Co. There. have been a good many carrions feeding on and I don’t say they are all gone yet, And, by 1 way, I might mention here that we re to. help Wat long, gave Eri¢ a total or the debt of $7, 100,0uu due to the Atlantic and Western cs bo calla Ff that e TASse at is the cause of the trouble wit n ofsheim always acted nol tl road, giving mone} as yeely to 4 the pas management out. But the byes Jay Gould set a trap for him in that matter of baying the 60,000 shares. Since that time Bischoffsheim has been & trastworthiness; aud walle don't an they are wrong, we — CAN'T ALLOW A SPECULATOR to have anything to do with Erie, So Watson went Toy a England he took the ee ce to 10 board of the London Stock Exchange and en ored to convince them that the new Of $30,000,000 should not be quoted. He, ignominiously fatied, and the Stock governors decided that the $80,000,000 ‘Wasan ample guarantee for the $10,000,000 vVertibie loan. But he has endeavored to embar. Emr Thatch RE OY ST tpn ae should not nee with Gould, as I have a $uspicion Dunan “¢ THE WIND. Boston, May 1, 167% At Malden yesterday & two and @ half story house, being built by Mr. Linnenan, valued at $4,000, was moved by the wind twenty-five feeg A HOUSE MOVED Erie people. Thad seen people, I knew Sickles as ® sharp man, and 1 vi im 000 to Operate with, and he ‘on here. io and dashed against another house. The od Rs.) pletely destrovea and the ones,