The New York Herald Newspaper, January 23, 1879, Page 3

<docearememnias ina inane iaalatet ieatrtaneaiinaliaaee WASHINGTON. The Strange Story of the Cipher Despatches, POLITICAL MORALITY ILLUSTRATED Republican Antipathy to Investi- gating the Theft, COLLECTOR ARTHUR'S DEFENCE. ° Net Result of the Blaine Investi- gation in Louisiana. Mr. Blaine in Favor of . Subsidies. and Opposition to Free Ships. FROM OUR SPECIAL CORRESPONDENT. Wasuixcton, Jan. 22, 1879, THE CIPHER DESPATCHES—REPUBLICAN ANXIETY TO AVOID THE MAIN POINT OF INVESTIGA- TION—-HOW THE TELEGRAMS HAVE MANIPULATED—-GENERAL BUTLER’S STORY. The ciphers at last came up in the Potter Commit- tee to-day and the republican tactics were at once developed in regard to them, It proves to be their desire to examine the ciphers over again and to occupy the time of the committee to the ex- clusion of any inquiry into the manner in which the despatches, which were private in their nature, were atolen from the committee room, carefully assorted and then pleced in General Butlor’s possession. This, which the real question for the sommittee to investigate, the republicans appear to be very nervous about. Mr. Hiscock to-day urged BEEN _ that the committee should ask General Butler to pro- duce the despatches, in order that they might be ex- amined and deciphered. But the atswer to’ this de- mand clearly is, that they have already been published and deciphered. Nobody has denied the correctness of their interpretation. The only question which is of public interest for the committee to investi- gato/is, How did these despatches become public? They were surrendered under compulsion by the telegraph company to the republican Senate committee; that committee received and held them in strict confidence; an agree- ment was made between prominent’ men of the * two political parties—made, it has already been under- stood, at the desire or instance of republicans, that uone of the despatches should be usel as cvidence or in any way made public. In accordance with that agreement the despatches were supposed to lave been returned to the telegraph com- pany, who destroyed all they received. But it now appears that this agreement was violated; that secretly the despatches were looked over by repub. licans, certain ones sotted out, and it is to be presumed that those damaging to tho ‘re- publicans were destroyed, while those damaging to the democrats were not merely stolen but: copies taken and furnished for publication. Who committed this theft, and at whose instigation? is the question which the committee have to inquiro into. But it seems to be just this which is dis- agreeable to the republicans. : General Batler has, it is reported, 641 despatches of varions kinds in his possession. How they came to * hin hé cannot say, but fhe supposition is that they were put in his reach by the persons who stole them or some of their confederates, and as there are in the parcel a greater number of despatches than have beén published, it is now supposed that the whole parcel harsbeen carefully prepared by republi- can hands and that it will be found to contain a cer- tain number of harmless despatches from republi- cans, with those already published damaging to tho Wemocrats; that, in fact, the whole thing was care- fully arranged beforehand. . The story of the despatches in General Butler's hands is very curious. He had them before him in the committee room during the summer, but had not himself any idea of their contents, nor did any mem- ber of the committee suspect their nature. Copies must have been mado before the originals were sent to him. When Congress adjourned he left the whole parcel in the committee room, where when that room was clearel up, they were huddled up carelessly with printed matter and by a clerk taken over to the General's house, where they wero flung on his office floor among other lumber and there remained until in December. After a good deal of search he discovered them and has not to this day examined them. THE BLAINE INVESTIGATION—RESULTS IN LOUIS- IANA—GROSSLY FALSE REPORTS CIRCULATED, The testimony taken by the Teller Committee in Louisiana has been sent here though most of the members of the committee have gone to Charles- ton. It appears that the evidence shows out- rages to have been committed in only four out of the fifty-seven parishes of Louisiaua, and in” two of these -four the violence ‘was not political, though it was brutal and inexcus- able. In Tensas and Natchitoches there was un- doubtedly political violence without excuse, though itdoes not appear to have seriously affected the result of the election, for in Tensas the canvas was between two factions of republicans, the democrats dividing their votes among these. The net result, so far as Louisiana is concernéd, seems to be that there was no disorder which Governor Nichols could not easily have put down had fle been & man capable of doing bis duty to the State as Governor; that be was, in fact, weak and incapable; that the perpe-- trators of outrages have been for the most part ap- prehended and indicted in the federal Court and are likely to be punished, and that the inaction of the Governor has had the bad effect of crippling the just and honest sentiment of the State, and allowing a few desperadoes to work their will in the four parishes, Meantime, it is also shown by the testimony that there has been an in- dustrious circulation of grossly false reports about the State, and that the clections passed off far more quictly than they ever did under carpet-bae rale— that isto say, this State, so long held by federal foree, shows an improvement as soon as it is restored. to local self-government, and had it had an energetic Governor would probably have given no occasion at all for complaint, GENERAL ARTHUR'S REPLY TO SECRETARY SHER- MAN ~REJSECTION OF THE NEW YORK NOMINA- TIONS PRESAGED. . General Arthur's reply to Secrotary Sherman's let- ter concerning him isin town to-night, and is said by those who have seen it to be conclusive, and to meet and refite Mr. Sherman's charges at every point. The two documents will be considered before the Commerce Committee at its meeting to-morrow, aud it is not impossible that Mr. Arthur's reply will ve read to the Senate, as Mr. Sherman's attack upon him was. Friends of the administration profess to beliove that a majority of the repubiican side of the Senate will vote to confirm Mesurs, Merritt and Graham, but the friends of General Arthur seem to be certain that the result will be tho reverse of this. Democratic Senators do not appear to give themselves much concern about the mattor, most of them being inclined to let the republicans fight it out among thomselves, #0 far as can be ascertained Mr. Sher- wan's letter has uot had any such effect upon Senators as it was hoged by ite author it would have, ond while there is @ good deal of curiosity among politicians as to the result, the general impression is that the nomina- tions will be rejected by a large majority. If it shall x ‘NEW YORK HERALD, unfounded charges against General Arthur-—and the | latter's defonce makes this clear—thero will be a re- action against the Secretary which will leave Lim without a vote in the Senate. . > FROM OUR REGULAR CORRESPONDENT. , Wasurnotox, Jan. 22, 1879. NEW YORK CUSTOM HOUSE NOMINATIONS—RE- PLIES OF MESSRS. ARTHUR AND CORNELL TO SECRETARY SHERMAN'S LETTER RECEIVED. There is good reason to believe that the Senate Committce on Commerce, of which Mr, Conkling is chairman, wilt act upon the New York Custom House nominations to-morrow. An unfavorable report is predicted, and the subject makes considerable excite- ment in political circles here to-night. The replies of Messrs. Arthur and Cornell to the letter of Secretary Sherman have been roceived by Senator Conkling and will be presented to the committee in the morning. Messrs, Arthur and Cornell are not in Washington and are not ex- pected here. Collector Merritt has arrived, but be- took himself to private quarters to escape the crowd of would-be callers. THE HUNTON-ALEXANDER DIFTICULTY-—DIF¥ER- ENT VIEWS REGARDING THE CHALLENGE AND THY AUTHORITY OF THE DISTRICT GRAND JURY TO INDICT, At the meeting of the Grand Jury ef the District | to-day @ member gave notice that so soon as the busi- ness now before that body wus disposed of he would call up the case of General Eppa Hunton, Member of Congress from the Eighth Virginia district, charged with sending Mr. Columbus Alexander, of this city, & challenge. It ix thought that the case will be reached about Friday next, when Mr. Alexander, with all the letters from General Hunton, will appear before the jury. Considerable difference of opinion exists among the jurymen relative to the case. One of them said to-day that the question was mixed and involved many nice legal points, but there were men on the Yury fally competent to mas- ter thom. “Those acquainted with the circumstances attending the sen@ing of the challenge,” he said, “express the opinion that there is no alternative for the Grand Jury but to find an indictinent.” Others claim thet the objectionable letter was not written as a challenge, but simply to have Mr. Alexander meet the General in Alexandria, where a demand for the reparation which Virginians accord each other in such cases could be made. It will be remembered that Mr. Alexander had made acharge against the General, and the latter, according to this explanftion, desired to meet Mr. Alexander and talk the matter over and if possible settle the difficulty or misunderstanding satisfac- torily to both parties. “Still,” continued the juror, “Mr, Alexander visited Alexandria afterwards, during the holding of the Congressional nominating convention at Alexandria, Va.,a short time after tne quarrel between those gentlemen, which convention renominated General Huntou for Congress. Mr. Alexander was in that city daily during the sessions of the convention and om several occasions met General Hunton on the streets, and they passed each other without the slightest recognition.” There are two sides to this story. The friends of General Hugton claim that, had he so desired, he could have dono Mr. Alexander at that time bodily harm; but instead of so doing he allowed Mr. Alex- ander to pass undisturbed and to continue his efforts to defeat his (the Generai’s) nomination, as it was well known thet the object of his frequent visits to that city at that time was to do all in his power to se- cure the nomination of Mr. Neale, General Hunton’s rival in the convoution. It is also cluimed that the timony is received by the committe as a basis for its ' paid over 31,100,060,000, Out of that the European enlightenment, THE SEWARD INVESTIGATION—-A CERTIFICATE OF GOOD CHARACTER FROM PROFESSOR WILLIAMS, OF YALE. ‘The Committee on Expenditures in the State De- partment to-day coutinned the examination into the charges preferred against Minister George F. Seward, Protessor 8. Wells Williams, of Yale College, was examined by Mr. Ashton, of counsel for the defence, | relative to certain treaties during his service as acting Minister. He testified that at the time of Mr. Seward’s arrival at Shanghai the sur- rounding country was in great confusion, owing to an expected attack from the insurgents, and in his judgment this fact increased the respon- sibilities of the consulate, After defining the duties of aconsul very generally, Mr. Williams said he had never heard any charges preferred against Mr. Seward until those now under investigation were made by General Myers, On thé contrary, he had heard very favorable comment upon his. character and ability, His associates in China bore the most reputable of characters, Counsel at this point inquired into the character and 4bility of Consular Clerk Bradford. Mr. Will- jams pronounced it, so far as he kney, to be excel lent, adding, with reference to his wbility, that be- fore receiving his appointment he passed the ex- amination of acceptance satisfactorily. Mr. Willimys then contrasted the present cor- modious cousulate apartments with the apartment of previous years, which consisted of one small room in a tavern, and was disgraceful to the nation, and rendered it utterly impossible for the Consul to deal properly with American crimmals. The com- mittee adjourned until Friday, FOREIGN COMMERCE OF JAPAN, A despatch received at the Department of State from the American. Secretary of Legation to Japan gives the value of the foreign commerce of that country for the month of October, 1878, as fol- lows:— Domestic exports, Foreign imports. Excess of exports. Imports of coin and Exports of coin gud bullion Excess of specie exports + $41,736 Of the domestic exports raw silk amounted to $1,475,000 and tea to $476,000, PROCEEDINGS OF CONGRESS. SENATE. WAsHINGTON, Jan, 22, 1879, THURSDAY, JANUARY 23, 1879.—TRIP j I4kH to 1873 the Congress of the United States had Mr. Epxnps, (rep.) of Vt., moved to take up the resolutions submitted by him on the 7th inst. ) declaring the thirteenth, fourteenth and fifteenth amendments to the constitution of the United States valid. Mr. Brarxg, (rep.) of Me., said the Naval Appro- priation bilywowld como up at half-past one P. M. asthe unfinjshed business, having been postponed from yesterday at his request. that he might submit some remarks in rogard to the amendments he then submitted. He hoped the Senator from Vermont (Mr, Edmunds) would withdraw his motion. Mr. Tuurman, (dem.) of Ohio, said if the Senator from Vermont desired to make a speech on his reso- lutions of course there would be a reply from the democratic side of the chamber. If, on the other hend, the Senator did not desire to speak those on the democratic side of the chamber would determine. for themselves whether they would silently vote, or whether they would give their reasons. 3 Mr. ConKLING, (rep.) of N, Y., said he had heard no reason assigned why the Senator from Maine (Mr. Blaine) should not proceed with his-remarks to-day, and, therefore, he would vote against the motion of letter to Mr. Alexander, which was construed to mean a challenge, was not vent as such, as a document of that character would have been conveyed by messen- .ger. But it was sent as a registered letter, which’ necessitated Mr. ‘Alexander's obtaining it from the Post Office in person. So far as the posting of Mr. Alexander is concerned, that was not done in the District of Columbia, but in Alexandris, Va., beyond the jurisdiction of the Grand Jury of the District of Columbia, Prominent lawyers say that as the so-celled challenge was ecnt from Alexandria to this city the Grand Jury here haye uo right to pres : frpm sending it, but it is w matter belonging entirely to the authorities of Alexandria. ‘THE CONTESTED SOUTH CAROLINA SENATORSHIP— MINORITY REPORT OF SENATOR HILL. Senator Hill, of the Committe on Privileges and Elections, has complcted the minority roport in the case of Corbin vs, Butler, which will be submitted at the next meeting of the committee, Senator Cam- eron, of Wisconsin, who has chargeof the majority report, is now absent with tho Teller Committee at Charleston, and it is understood that nothing will be done until his return. Senator Hill takes the ground that the case of Senator Butler is, by the action of the Senate, res adjudicata, and that Mr. Corbin has no legal or equitable ground upon which to claim the seat. COST OF FORTS KEOGH AND CUSTER—EXCESSIVE EXPENDITURE FOR TRANSPORTATION, The House Committee on Military Affairs has re- ceived an answer from the War Department to the request for information as to the cost of building Forts Keogh and Custer, on the Little Big Horn River. ‘The original appropriation was $200,000, and the cost of transporting the supplies purchased was $149,000 in excess of the appropriation. The Military Com- ‘mittee will call the attention of the Committee on Appropriations to this increase of the disbursement of funds from the general army appropriation, aud has in course of preparation a report criticising the exceasive expenditure, a GENERAL WASHINGTON DESPATCHES. | ‘Wasuixeton, Jan. 22, 1879. THE PENSION ARREARS BILL, , The Pension Arrears bill is undergoing the con- sideration of the Secretary of the Interior, to whom, in the regular course of business, it was referred by the President upon its receipt from the Capitol. It is probablo that a further discussion of this measure will be had at the Cabinet meeting on Friday. STRENGTH OF THE ARMY FROM: THE FOUNDA- TION OF THE GOVERNMENT TO THE PRESENT. The Sceretary of War has sent to the House Com- mittee on Military Affairs (by request) a statement showing the actual strength of the regular army at « ated period in each year from the beginning of the government to the present time, from which it ap- pears that the strength of the army, both officers and men, from 1789 to 1794, was about 3,500, From that time to 1812 it varied from 2,600 to 6,000, But in 1813 it increased to 19,000 in consequence of the war with Great Brita’ and in the next year to 38,146. In isd it was 33,434. For 1816 it fell to 10,000, and in the threo years following to 8,550. From 1820 to 1839 it averaged about 6,500. For 1859 it was increased to nearly 10,000, and in subsequent years to 1846, varied from 8,500 to 11,000, In 1847 it increased to 21,686, falling in the following yoars until 1854 to an average of about 10,500, For 1855, 15,752, and from that year to 1861 the average was 16,000. From 1862 to N64 the usual annual returne of the ermy were suspended. For 1865 the strength of the army wns 22,310; in 1496, 56,815; in 1863, 51,000; in 1889, 30,774; im 1870, 37,075, aud from this period to 1877 it has varied between 26,00) andl 29,000, For 1877 it was 24,000, ond in 1878, 25,8148, REORGANIZATION AND REDUCTION OF TRE ARMY. Tn view of tho uncertainty as to when the Burnside Committee bill can be brought before the House for consideration and the generally conceded fact that it cannot command a majcrity vote Representative Hewitt, of Now York, will no longer detain the Army Appropriation bill, bat expects to report it to-amorrow trom the Committee on Appropriations, with the provisions for reorganization and reduction which have already been informally agreed upon by that committee, and which, at the mecting to-mor, row morning, will receive definite action, THE MATCHEWS-ANDERSON INVESTIGATION, ‘The Scnate Committee appointed last session on motion of Senator Matthews to investigate allaga- tions concerning his participation in Louisiana affairs, havo not yet been furnished the copy of James E. Anderson's testimony before the Potter Committees which the House was requested to supply by & resolution of the Senate adopted before the holt. prove that Mr, Shorman bas brought itivoloas or day recess, No aussting will be valled until this teq: the Senator from Vermont. It was a custom of the Senate, when a Senator had given notico thut he de- sired to address the body to permit liim to do so at the time named by him. It would not be proper to displace the Senator from Maine, especially by a matter not requiring haste. ‘Mr, Epmunps said he stated to the Scnator from Maine yesterday, when he gave notice that he would spexk to-day, that he (Mr. Edmunds) would call up the resolutions indicated by him. ‘The motion of Mr. Edmunds to take up the resolu- tions was lost, and at half-past one P, M. the Senate resumed consideration “bf the ‘Naval Appropriation bill. Mr. Dawes, (rep.) of Mass., submitted an amend- ment providing that if the amount appropriated for any item of pay of the Quartermaster’s Department of the Marine Corps for the present fiscal year shall prove insufticient it may be made up from the excess an any other appre riation of the bin, upon the writ- ten consent of,t tary of the Navy, Discussed and then laid aside for the present. * j REORGANIZATION OF THE NAVY. r Mr, Brains then had read’ the amendments, of which he gave notice yesterday and then published. at length, providing for the ap- pointment of a board of three naval officers to inquire as to the number of officers re- quired for a navy of 7,500 men, and also whether any of the present navy yerds may be dispensed with; providing surther that from and after July 1, 1s, only such number of nates of the United States ‘Natal Academy shall entitled to appointment as midshipmen as.are requited to MJl vacancies of that grade existing on the ist of July in such year, those entitled to appointment to be determined by the Academic B on the basis of their standing in the graduating class, Mr. Epmunps reserved the right to object to the amendments, on the ground that they proposed new lation. He would not ask to have the point de- now, us he did not want to cut off the remarks of the Senator from Maine (Mr. Blaine). SPRXCH OF Mit. BLAINE, Mr. Brains said he desired to say in advance that in the remarks he might make ho not intend to criticise auy administration of the Navy Department, vither present or past, and still less, by the remotest implication, to reflect Fe the gallant corps of officers of the navy. ould he retleet upon any department of the government it wonld be upon thet of which he had had tne honor tu be a member for a considerable number of years. It was the duty of Congress’ to make reforms and correct errors, and not leave the matter to the Secretary of the Navy and bureau officers. At the same time he would speak mind freely about the present condition of the ‘Y, and ‘expecially the | number of officers, Congress had limited the number of men of the navy at 7,500, aud for those 7,500 men we had a total of one officer to a little over three men. ISON WITH OTHER NAVIES. We had 91 vessels and 38 in commission. The Drit- ish navy, which bas 320 steam vessels and a total of 49% vessels, had 4,990 officers, with something over 64,000 “nien, That. go" iment had in commission about 243 vessels, and available for service quite tive times ax many as we have. It had nine or ten times as many satlors and five times as many ships, but only two aud one-half times as many officers as we haye. The French navy had 1,529 line officers, and in int of number of vessels that navy was almost as aa the British navy. Ot courve, all knew it was not so effective. These tacts were worthy of attention. For the great navy of Creat Britain, the largest and most effective in the world, there were two great navy yards and two subordinate ones. France had three great yards and two subordinate oues, while we, on six degrecs of coast latitude, had seven navy yards, The one at Pensacola was necessary for Gulf ‘uses, and certainly the one on the Pacific coast was a necessity, It was not his intention to make auy pur- tixan aconsations, The pay of the officers navy on the active list amounted to over #4,%: annually; for those on the retired list, $645,000, while the pay of petty officers and scamen amow i to but $2,400,000 per annum, showing, of course, the topheavy condition of the service. From the Naval Academy we were bow turning out annually an r age of fifty officers, Now he asked that tre atter 1881 the graduates from the Naval Academy should not be entitled to commissions exeept apo! morit and to fll any vacancy whieh may at the tim exist. Pass the law now and every cadet apo en ing the academy would understand that his en ae depended upon his standing uation. No matter how many should enter the service who stand hig By dispensing with surplus oimeen wy yards we could largely rednee th penses of the uavy. We ate trying the gxperime from the top. ‘And the resuit will be ex) ot building a navy Mr. Eatos, (lem.) of Cot Mr. Buaixg, resuming, argued that it was impos- sible to make a navy by graduating cadets from the Naval Academy. You could not improvise a sailor any more than you could improvise # mountain, He has to grow. Unless there was a conu marino to build up trom we could have no There never was a navy which did not grow out commercial marine, and in that respect we were sadly deficient, WHAT WE PAY Fort ‘The commerce of the world tively shangod within the past twenty years, and we might as well arm our soldicrs with bows arrows rebuild 0 the mercantile marine with sailing vessels, We stood to-day furnishing almost ae miteh ocean freight as any two countries ot the world and gaining nothing from it, or so little that it only served to point the moral, We paid in one year $85,000,000, gold, for freight, and fe (Mr. Blaine) said to the Chairman of the Com- mittee on Finauce (Mr. Morrill) that it would not be & possible thing for this country to maintain specie resumption with that draught apon its resources. Me spoke of the resumption of specie Wayments in 1857, and suid we fesumed upon freight money which laid to the credit of Ametican commerce in Europe. In the last ten we had sent and brought between $11,000,000,400 and $14,000,000,000 worth of products, (gad the freight, with tho passengers thereto, LE SHEET. ations vot 3,000,000, yet we continued appropri. | ating for our navy to protect a coutmerce which did not exist. Heasked that Congress would give to tho | revival of commerce some part of the sam now belus wasted on & navy. He believed $4,000,000 or 35,000,000, could be taken trom the navy without impairing its efficiency, and the $4,000,000 or $5,000,000 would turn $50,000,000 into our coffers. ‘ ABOUT VREE &HIVS, °: What advantaye was given to a man by issuing to | hin on American register tor # foreign built ship? | Mr. Vauderbiit wes “now establishing # line of | stewmships to run to Europe in connection with his road. ‘They were foreign vels, manned by foreign neu, and We give American’ registers to foreign built would establish just such lines, whip of 4,500 tons | costs about $500,009, and there wos neta thing which Went into thit snip from her keel up which was not produced in this constey, When that ship was ready for sea she represented $5,000 worth of material and $495,000 worth of laber, Did his friend trom Con- necticut (Mr. Eaton) intimate that it would be best to spend tha U0 in Europe? Mr. Exron, of Connecticut, said when the Commit- tev on Commerce should report the bill in regard to tree ships he would discuss this question, but not now upon the Naval Appropriation bill. Mr. Brain, yesuming, said he was not out of order in ‘liseussing the Secretary ot the N ‘nual report. He then referred to the legisltion of Congress to aid in building railroads, and said from ves: | should ehips it | question on this bill because had alluded to it in his an- pursed nine y-one acts endowing railroads with land to the extent of $00,000,000, In his judgment “Congress ucted wisely, because’ it cneap- | ened treights. We bad a system of railroads ahead ot the whole world, but when we reached the ocean it seemed we no longer took any interest in trans- portation. From Chicago to Liverpool waa one lireet Lis ‘Take the New York Ceutral Railroad, put foreigners on it for brakemen, conductors and en- fimecte, uve ali its locomotives constructed in Eng- land, ad it would be uo more injurious to the welfare of this country than for that railroad to turn all our treyht over to toreign ships 4ssoon as it reached sait water.’ From Chicago to Liverpool is 4,000 miles, We 0; te 1,000 miles and turn the other 3,000 over to foreigners. He then re- ferred to events atter the war ot 1812, and’ said our commerce then ran ahead of Great Britain so much that absolute ularm seized that country. In 1817 we passed an act that the products of no country should coue into t ited States except in American ves- sels or the vessels of the country furnishing the produce. He would like to see such «a lew passed now. A CASE IN POLNT, Mr. Earos, of Connecticut, said according to the argument of tho Senator from Maine tue ship in which Paul Jones tougit wus not w: American ship, because it happened to be buiit eisewh ‘ Mr, BLAtsi: suid necessity kuew no Iw at that time was fighting, and had to fi he could get. Continuing his argument in regard to au registers to foreign built vessels, vould be # fraud to put ap Americun tlag on a foreign built ship and call it an American vessel. He was not surprised that such a proposition as this should come from the Southwest (allud- iny to Mr. Beck, of Kentucky, who intro- duced the bill), but he never ‘expected to see the day when a New Englander (referring to Mr. Eaton, of Connecticut) would make such Proposition. The government of the United States should give to any 1uan ex company of men aid from the Treasury of the United States if he or they would establish and iaintain a line of steamships to any foreign port, or he might limit it to auy European, South American or Asiatic port. He would invite competition from all over the country, ‘here was no reason why Savannah should not be a great seaport. Therc was no reason why a great torcign trade should not be concentrated at New Orleans. He would vote for a revival of the act of 1417, and said we could only come out of the humiliating position we occupied to-day by daring legislation, He knew of no question that could in any inanner engage the atten- tion of the American Senate that was more worthy of their deep consideration, It was more far reaching than any other question before Congress. He said our appropriations ran in a rut, and Congress needed | aastirriig up from the bottom in this regard, ‘The United States steamer Tennessee had just returned from a three years’ cruise, and the cost of that cruise would surprise every menber of the Senate. ‘The rarest thiny she-met in her travels was an American ship and the only Stars and Stripes she saw were those at her masthead, REPLY OF MR. BECK. Mr. Beck, (den..) of Ky., suid he felt some amaze- ment that the Senator from Maine should indulge in such a tirade of abuse against a bill for tree ships which he (Mr. Beek) introduced. The Senator (Mr. * take up th ff poner aed | the Union army. Blaine) was 4 momber of the Committee on Ap- propriations as well as himself (Mr. Beck), and that Senator failed to lay before the comnuttee a single grievauce of which he complained to-day, He had no right to seek ta introduce new legisla: tion upon an appropriation Dill. Tho senator (Mr. Blaine) was a member of the Navi Committee, and he could properly bring the subject to the attention of that comuuittee. He (Mr. Beck) would go as far as the Senator trom Maine in supporting every measure to improve the condition of the Navy. He made the point of order that the amendments of Mr, Blaine could not be considered, as they proposed new legislation. ‘There were 600 ships im our navy when the war closed, Most of them were suld for scrap iron, or disposed of ina way unknown to Congress, The Senator trom Majue. ‘Was ih the other House of Congress then, but did not raise hiv voice against the abuses. Mr. Brck defended the present Secretary of the Navy, and said we had now for the firs number of years a Secretary of the obcyed the law, whether he liked it or not. He was the tirst Secretary that he (Mr. Beck) knew of in the last ten or fifteen years who had paid back into the Treasury a bulance trom the appropriation for his department instead of coming to Congress for millions of deficiency, With the smallest appro- for the Navy Department during the cretary last year, a balauce ot half a million dollars. He reviewed the naval ap. propriation bills from 167 to 1874, which appropriated irom nineteen to thirty-one million dollars an- nually, and resuming his argument said if the other executive officers of this government would be as economical in their respective offices as the present Secretary of the Navy there would be general civil service reform, Mr. Beek then spoke of the bill which be intro- dueed to grant American registers to foreign built ships, and said it could not be whistled down the wind, Let our people buy their ships where. they could get them cheapest, and compete for the carry- ing trade of the world. Of all the yreat ships ieaving the port of New York for poris beyond the Atlantic not ove carried the American flag. We could not build ships, because everything entering into their construction, from the smallest nail to the bunting at the masthead, was protected by a high tariff. EXPENSES OF THE GOVERNMENT. ‘The Senator from Maino appealed to the house to go into the Treasury to subsidize lines of steamers aud thus tax the people. The bill to pay arrears of pensions, which pussed a few days ago, he (Mr. Beck) believed would take $100,000,000 from the Treasury. all thesé expense of all the porsons these arrears of pe Was an.income tax to bo levied to meet Five per cent upon the incomes this country would hardly pay sions. rould not inrpose ad- ditional taxes on our people and call upon them to give, give. He (Mr, Beck) sought to make the flag ‘supreme ou every #ea, but he would He would not , all protective tariff laws, interfere with the coastwise trade. Mr. BLaine-—Why not ? Beck—I am’ willing to give you that to kee) Continuing his argument, Mr. Bock said been paid tor the tt 8 for tho wland, but he would not object to that, Kentucky, his own State, paid $9,900,000 in- eruai revenue taxes last year, while Maine paid $79,000, but Kentucky asks nothing. Mr. Btatse said the Senator trom Kentucky had supported general legislation an nents on appro- priation bilis, and so had the Senator crom Vermont (Mr, E — i. ) wxps, in reply to Mr. Blaine, thonght tor the last ton years—he would not cer- tain as to the time, becaitee he did not study up his own record, as some people do who are more inent in national afeirs, h tattons— hi legisiatio’ me anh have been one or two « citement that he voted tor rule now existing prohibi' such amendments should be adhered to. During a colloquy between Messrs. Edraunds and Blaine Mr. BLANK said he did not know auything occurced which the Senetor from Vermont did not watch. Mr, Komuxns—The Senator is mistaken. Ido not even watch the Seuator from Maine, because I know it is pertectly safe to let hint run wild. Mr. BLAIsé inquired if the Senator did not support the pose comitatus clause inthe Army Appropriation Vill of Last session ? Mr. Eomesps replied that he was sick in his bed at hone when it passed, Mr. BLAINE spoke of it being demoralizing to the Senate that the House should put general legislation ou appropriation bills and the Senate could not. Mr. Eyatusps said he could not sy how much the Senate had been demoralized since it had the presence of the Senator from Maine (Mt. Blaine). (Laughter) Mr, Biase, uot having formerly submitted his | amendments, but having onty given notice the did not sfbmit them tn view or the objections mad ‘The amendinent formerly submitted by Mr, Dew os, in regard to deficienctes: in the Quartermaster. |) partment of the Marine Corps, was withdraw) some discussion. ‘The bill was thén read a third time and passed. Mr. BLatye then introduced a bill to regulate pro- motions in the navy. Referred to the Committee on Naval Affairs, ‘The provisions thereof aro the samo as the amend- ed to-day and heretotore published. MR. EDMUNDS" RESOLUTTON. vel to take up the resolutions y him in regard to the constitutional areondmente, Mr. ‘THURMAN thoved to adjourn, which motion was 2, nays 1—as follows :— ‘opriation bill. in t » Blaine, Brice, Burn thowe, K Patterson, Rollins, Swan Ki Wtehell, Morrill, nt Windom Pairs on all political questions were announced as follows:—Messrs, Bail Butler, bLustis, Garland, McDonald, Merrimon, Randoiph and Coke with Messrs, Camoron, of Wisconsin, Christianey, Chat tee, Kirkwood, Matthews, Ingalls, Paddock and Sar- gent. Mr. Boorn, (rp.) of Cal., said he voted to adjourn ) in the Tribune. because the motion of the Senator from Vermont to resolutions displaced the Patent bill, | whieh he regarded as Eros “en lezisiation, ‘The Senate then, at halt-past four P. M., adjourned ‘until to-morrow at twelve o'clock. HOUSE OF REPRESENTATIVES. Wasnixeros, Jan. 22, 1879 On motion of Mr. Sparks, (dem.) of Ill., the Senate amendments to the Indian Appropriation Dill were he SPEAKER proceeded to call committees for re- ‘The pending bill was the one referring to the Court of Claims the claim of Maggie Barron and others (minors during the war) for supplies turnished Mr, DEN, (dem.) of Tl., and Mr. Cox, (dem.) of N. Y., sujlported the bill, and Mr. Joxzs, (rep.) of Ohio, opposed it. SPEECH OF MR. BRAGG. Mr. Brace, (dem.) of Wis., opposed the bill as a precedent which would open the doors of the Treas- ury toan evil which would bring bankruptcy on the He had always been opposd fo the n Claims Commission. It was « court which | d fraud und perjury all over the land. It | was a remarkable result that in — nineteen out of every twenty cases the judgment hed been against the government. "It was impossible to prove whether a person had Deen loyal or not. Loyalty was a sentiment, and perhaps the gentlemen on his side of the hail’ who wd foucht in the Confederate army might claim that | they had been loyal because they had sought to maintain the government ou the principles of the | fathors of the Rpublic, while the Northerners, who had fought to tear down the stracture the tathera had left, had been disloyal. (Laughter on the republican side.) He had Deen astonished that this ela, which was supposed to be so loyal, should have Lecn sup- ported yesterday by the gentleman trom Mississippi (Mr, Hooker). He felt like saying what the mouse said when he saw a dead cat hanging up against the wall:—Ha! ha! My old friend, you are there. Well, you may stay there, I would not trast you though your skin was stuffed with straw.” (Latgh- ter.) Mr. CHanarns, (dem.) of Miss.—The_geritleman knows that the gentleman (Mr. Hooker, of Miesissippi) is ont, or else he would be keeping’ as qniet as the mousc. He (Mbr- Bragg) kept quiet when the gentle- ian was present yesterday and did not aysail him, ‘Mr. BRaAuc—It is not my purposce to assail any one, and when the gentlemen says that when I want to saila mun Tdo it behind his back and dare not meet him face to face he mistakes the inay he ealls to order, 35,000,000 which, had been an captured and abandoned prop- erty, and which th imed belonged to the Soutn, and ‘called od tho: nbers to picture the scenes of war, to look at the seas of blood und the thousands and tens of thousands writhing and weltering in their gore. Let them hear the ery of the wounded men on the battle tield; let them give an ear to the moans of the hospitals; let them yo to the hillsides and the valleys and see the hundreds aud the hundreds of thousands of mourners. Lastly, let them count the villions of money spent to put down the war, and then strike a balance with the thirty-five inillions on the credit side and all these countless miseries on the debit side, He was willing that the dead past should remain dead, but he was not willing to sit by and allow it to be brought up in one form or another, by He proc it was iMegally collected 1 | sulted in witness being knocked THE BLAINE INVESTIGATION. , HOW THE SOUTH CAROLINA ELECTION WAS CON- DUCTED-—BALLOY BOXES STUFFED WITH TISSUE TICKETS—A NEGRO MINISTER HUNTED BY KED SHIRTS —DEMOCKRATS SAW NO INTIMIDATION-—~- CONFLICTING TESTIMONY. + CHaRLeston, Jam, 22, 1879, The Teller Committee resumed its investigation this morning. E. M. Pinckney, a colored minister and republican, testified to the existence of three organizations of Red Shirts in Williamsbury county. He also gave an account of the alleged interference with a republican mweting at White Oak, at which Swails is said to have been captured and taken to King’s Tree by demo- crats, He gave # long account of the election at King’s Tree, stating that the democrats refused the United States supervisor admission to the polls and in the evening, captured the ballot box and stutfed it; he also related his personal experiences, saying that the Red Shirts were hunting him, and had dng a graye for him; he described bis arrest on the charge of perjury made by democrats as “kidnap- ping,” aud gave a detailed account of his being beatenand threatenca, The cross-examination, how- ever, elicited the fact that these latter were the cone sequences of personal ditticulties. A COLORED SUPERVISOR ASSAULTED. John M. Freeman (colored), republican supervisor at the Palmetto Engine House, testitled that the arrest of a democratic yoter, by his order, for repeating, ve- down and kicked, mocrats saved him he returued to the poll list was youe; Med, aud abont two he poll closed, the totei vote 500; Witness saw democratic tissue he box and saw large aumbers in the box when it was ed; withess saw a number of persons vote tiss kets; he knew of no ostra- eism of colored democrats by republicans, aud thought the ostracism was just the other way. At the close of the examination of this wituess the ballot boxes were opened by the committee and no lots wers found in the box used at the Palmetto Engine House and at two other polis. One box was examined, and the whole were then given to a com- mittee of republicans and democrats for examination and report as to the number and kind of ballots therein. but tho intervention of the a from more serious injury; w polling place 1 that up to that time 9 hours later, w proved to be ov ballots stuffed int WHOLESALE BALLOT SIUrTt A.W. Green (colored), republican deputy marshal at the Palmetto Engine house, testitied as to the fight in which Freeman was struck; the ballot box when opened was halt full of tissue ballots; stayed at the poll until the count was finished in’ the morning; witness saw full sized democratic ballots with tissua tickets folded up in them in the box; pretty nearly all the tissue tickets were put up iu that way, there were inore ballots in the box than names on the poll list, and one of the democratic clerks was at work throughout the night adding uames to the poll list to make the numbers agree. LARGY COLORED DEMOCRATIC VOTE. . S. Cathcart (white) democratte, stified that he was at the Palmetto Engine House nearly ail clection da; one member or another, and from one committee or another, for the purpose of getting money out or the ‘Treasury under the plea of loyalty. Loyai men in the South had been very few, and the evil done by letting them stand as they were bore no comparison to the great evil that would be done if Congress opened the door and allowed millions to be appropriated under the plea of loyalty. He had heard a tunnt thrown at the democracy which he thought it necessary to answer, He had heurd it said that unless the democrats of the North were more liberal, uniess they opened their hands and gave more lavishly, the lid South” on which they relied would go over to the other side. He, representing the democrats of the North, would suy that if there was a man who professed’ to belong to the democracy of the South simply for the reason that the doors of the ‘Treusury were to be opened to them, the sooner they went over the better for them and the better for the democratic party. When the people of the country felt that they could trust the Treasury and the interests of the govern- ment with the democratic party, with no danger of the democrats of the North selling out body and soul to the democrats of the South, that party could gather recruits jn the Northeru States that would fill up its ranks to the maximum, and it woald have no need of that class of gentlemen whom it could hold only by giving them all they wauted. THE LOYALTY OF SOUTHERNERS. Mr. Exuix, (dem.) of La. of loyal persons in the South, as the gentleman un- derstvod it, was very sinall. But the Southern man who had been born there, who had been reared there and who had been identified with that people, could that the percentage only have beet ioyal when he entered the Confeder- ate army aud did his full duty as a soldier. ‘They had been the only loyal people in the South, ‘Chey had been loyal to their country, to their God and to the noblest, highest and maniiest emotion ever breathed by the human sual. Mr. CoNGER, (tep.) of Mich., desired. to.ask a ques- tion, but Mr. ELtas refused to yield, and, continuing, said that here and there there ‘might have been a few persons who had espoused the Union cause, but he did not know more than three men in his Siate who had been loyal to the Union. He was willing here and now to vote for a constitutional amendment which should close the books and forever settle the accounts between them and the government. The lecture whieh the gentleman from Wisconsin (Mr. Bragg) had seen fit to read the democrats of the South came trom him with a rather bad grace. No democrat had proposed to desert the democratic party. No Southern democrat had intimated such « proposition. ¢ eral republican members desired to ask ques- but Mr. Ellis refused to yi nd Mr. Atkins, of Tennessee, declared that it family fight.” Mr. Ex.is, in conelusion, said that the Southern people were as true to the democratic party as the gentleman from Wisconsin (Mr. Bregg), and it was in obedience to democratic teachings, as the Southern people had understood them, that they had gone into the war. Lefore the excitement caused by the discussion had subsided, Mr. CHALatEns of Mississippi (rising to a privileged question), said that he understood that the remarks made by the gentleman from Wisconsin were aimed directly at him. « The ‘Sveaxkn informed him that that was nota question of privilege, but that in due course of time he would have the opportunity of replying. then,” said Mr. CHALMERS, “I will bide my time.”” ‘The House then proceeded to the consideration of resolutions in honor of the memory of the late Beverly B. Douglas, Representative from Virginia. Enlogies were pronounced by Messrs. Goode ot Vir- a, Pollard of Missouri, Hooker of Mississippi, Walker of Virginia, Springer of Ilinois, Dununell of Minuesota, Prulemore of Virginia, Clark ‘of lowa and Tucker of Virginia. ‘The resolutions were adopted, and the House, et four o'clock, adjourned, the Mississippi Levee bill (which was to be taken up this evening) being fixed for consideration next ‘Luesday night. THE CIPHER DESPATCHES, MEETING OF THE POTTER COMMITTEE—GENERAL BUTLER MAKES A STATEMENT—HOW THE FAMOUS TELEGRAMS GOT OUT LEFT TO THE IMAGINATION. Wasnincton, Jan. 22, 1879, The Petter Comunittee held a long private session this morning. The democratic members first brought up the question whetler St. Martin should be called as & witness by the republicans or discharged by the committee, Mr, Shellabarger, on behalf of Secre- tary Sherman, thereupon presented a letter, in which, after criticising the course of the committee in not recalling St. Martin on their own motion, he asked that St. Martin be recalled tor further cross: mination on the testi..ony given in New Orieans, and on the atiidavit which he recently fjed with the committee, The democratic members manifested a dixporition to acquiesce in this request, although it was still contended that the republicans ought to call St. Martin as their own witness, ‘The subject was, however, laid over until to-morrow without definite action. ‘The question then arose whether the committee should call any witnesses in regard to the cipher telograms in advance of the passage by the Senate of the House bill making an appropriation for the ex- penses of the investigation, their furds being wholly exhausted. ‘This question also went over for ciseus- sion to-morrow. GENERAL mber asked, © published in the tk Tribuney* k thereupon expressed a belict that rv het them, ana the General made a statement ty the effect that curtain despatches had come into hie possession at an early period last spring. He fonud the private table and hud no knowle despatches, i¢ Bu PLAINS. those despatches u furnished to « into his hands, missed for several were found agein, bere and stamped and put He was willing to place them at th ervice of the committee, and in doing so he contended that they sI kt ve printed d made public or placed within the power of any member of the committee to make public, At the same time, he protested against the whole system of investi- ny the despatches, and insis that it we be for both parties not to inquire into t on proper receiyts being given, the nid have the despatches that were in his when ina p of safety. sion t discussion followed the General's remarks her it would be advisable to print the de- epatches at once in pamphlet form, but no decision was arrived at, ‘The committee then adjourned until to-morrow morning, when they will resume taking testimony in regard to the Loutsiana certificates by examining Mr. Moses and several other clerks of the Senate. It is not unlikely, Mr. Potter says, that a sub-committee will be sent to New York to take testimony in respect of the cipher despatches, ut no determination has yet been reached upon that subject. The number of cipher telegrams in poesession of General Butler, which he will deliver tw the Potter Committee to-morrow is 641, when the fight occurred Freeman (the supervisor) W: protected democrats; Green (a previons witness and a deputy marshal) proclaimed himself a demo- crat, and was so drunk that witness put him ina chair to sleep, and found him there still asleep hours after; alarge number of colored people voted tho democratic ticket, and the tissue ticket was voted openly; many white democrats from other wards voted at the Palmetto Engine House; colored men tald witness that means must be furnished of voting secretly, and he gave them tissue tickets. INTIMIDATION OF COLORED DEMOCRATS. G. D. Bryan, president ot the democracy of the First ward, testified that only three tissue tickets were voted in his werd; the white residents of the ward went to Palmetto Engiue House, or Market Hail, in the Third ward, to vote, in consequence of the crowd at his poll; one colored man brought up eighty-tive colored men to vote the democratic ticket; other colored men told him their churches would not allow them to vote the demo- cratic ticket, and they desired to conceal the fac intimidation of colored democrats by negroes at previous elections was common; witness did not know of colored democrats being killed for voting such ticket, but knew of white men killed while pro- tecting colored m had heard of cannon being: taken to political imeetings in 1878, but only f saluting purposes, and knew that at previous elec- tions the State militia, composed of negroes, at- tended republican meetings with arms; Charleston now had a finer body of colored militia, ‘as reorgan- ized by the democrats, than can be found im any other city of the Union. Adjourned until to-morrow. BANK FAILURE. SUSPENSION OF ONE OF THE OLDEST AND MOST ‘RUSTED MONEY INSTITUTIONS IN NORTHERN NEW YORK. e [BY TELEGRAPH TO THE HERALD.) OGpENsbuRG, N, ¥., Jan. 22, 1879, Judson’s Bank, one of the oldest banking institu. . tions in thissection, closed its doors here to-day, This created great excitement, from the fact that John D. Judson, the proprietor, was supposed to be very wealthy. The bank was rated Al, and so good was the credit of the bank that many would not be- lieve it had suspended till they went and saw the doors closed and read the notice placed thereon, Five years ago David C. Judson, died, leaving to John .D., his brother, over 380,000. They were both in the bank together at that time. Since the death of David C. Judson, John D. Judson, the present proprietor, has had full contro! of the bank, which has always been regarded as sound and very prosperous. Besides the Judson Bank there is only one other bank in Ogdensburg, the Bank of Ogdens- burg, which is a State institution, which docs not and has not for a long time paid interest on, deposits, while the Judson ik has been paying five and seven per cent. The result was that the Judson Bank received a large amount of money on deposit and was a sort of savings bauk for tho city,t«nd nearly all citizens who had saved up their earnings had deposited them there. Besides this class there are inany widows, orphans and people out of business who had their money there. A large number of merchants and business men are also caught, some with maturing obligations. CAUSES OF THE CRASH. The causes for the failure are many. One reason is that the bank came into possession ot a large amount of real estate at various times, which bas largely depreciated and is not worth t ats on tho doliar that it cost them, Considerable god paper, too, has proven valueless. Another reat cause of deficit has been that the bank las beew paying too much interest on deposits. Something over $800,000 has been drawing interest at from five to seven percent for several years, and during these times it is of course impossiblé to meet it. It 1s believed that in time the depositors will receive their pay. But little * is positively kuown outside; it is believed that there has been no criminal mismanagement. but that the general depreciation, bad debts and some loose- ness of carrying on affairs has led to this result. The bottom facts cannot be arrived at to-night. it is impossible to get an interview with cither Mr. Judson or E. N. Merriam, his cashier. They aro busy making an assignment, which they propose to have completed to-night. ‘The assignees are to be E. N. Merriam and I. L. Seymour, Mr. Merriam li been cashier of the bank only two mouths. He was appointed to fill the vacancy caused by the death of Wiliam C, Armstrong, tormerly cashier ior A. T. Stewart & Co. at their wholesale store on Broadwa, Stewart willed him $5,000, Judson had great cou dence in Armstrong's financial abilities, and allowed him to run the business of the batkabout as le saw fit, After Merriam was appointed he, in po | the business done by Armstrong, found many securities. THK FAILURE ANTICIPATED. About the Ist of January this fact reached the ears of a fow persous interested in the bank, who said, little about it, but proceeded without delay to draw out what tunds they bad deposited there. Since that time over $100,000 have been drawn out. Tho drain on the bank wae steady, but more than it could stand, and late yesterday afternoon money on checks and certificates was refused, It is estimated that the number of sufferers will amount te upward of nt- teen hundred, and it is said, on the best authority that can be obtained, that the amount due depositors is from $350,000 to $400,000, The assets of the bank are placed at from 5,000 to $350,000. How muck. Of this ts good no one i# at present able to tell, TAX COLLECTIONS LOST. Among the heavy depositors are several town col- lectors who deposited in this bank all or the funds belonging to the State and county which they have thus far collected, ‘The amounts the collectors are not known to-night, but will likely be to-morrow. Owing to the bad condition of the roads the an- nouncement of the failure has uot yet reached many of the towns in the county, where the people depend upon the weekly papers for their information, It i# auticipated there will be a general rush of farmers and others to the ¢ity to-morrow to get the facts, HEAVY INDIVIDUAL LOSSES. Among the depositors in this bank is the cook at the Seymour House, who loses $1,600, the savings of enty-three years sho has thus been hon Frank, a resident of this city, is re’ wing $50,000 in the bank, Anothe Clarkson, is said to have lost $4 that the losses will average of the mer- chants who had business connection with the bank will soon follow, The news of this failure not only staggered the people of Ogdensburg, but those of Watertown, Oswego, Malone, ytsdam and other places in Northern New York, where the credit of the bank had long been regarded as first class, Mr, Judson says if his creditors will be moderate he thinks he will be able to pay them everything. Many doubt his ability to do so. The general impression, on the street is that the creditors cannot get over twenty-tive per cent, if they do that much. The other bank is comsideted goo. ‘here was no ran on it to-day in consequence of the talure. Lhere was considerable excitement in Watertown, but no trouble is ap) ‘