The New York Herald Newspaper, January 28, 1879, Page 3

WASHINGTON. New York Appointments in Executive Session, ADVERSE REPORT OF THE COMMITTEE. Administration Senators Urg- ing Confirmation. FROM OUR SPECIAL CORRESPONDENT. Wasurxcton, Jan, 27, 1879, ‘THE CIPHER TELEGRAMS-—-IMPORTANT SESSION OF THE POTTER COMMITTEE--WHAT 18 IN- TENDED BY THE INVESTIGATION, This cipher despatch business at last seems likely to prove a boomerang to the republicans. The Potter committee has, by a curious chance, almost com- Pleted to-day the discovery which alone was worth making—of who stole the despatches and how they were stolen and given to the public. ‘The evidence to-day shows that the telegraph com- pany carefully collected the political despatches frou all parts cf the country and accumulated them in ‘New York. On the persistent demand of Congress they brought them to Washington, on the 17th of January, 1877, in a trunk. Mr. Whitney, telegraph superintendent here, took out of this trunk 300 despatches for the Morrison committee and a number for the Morton Senate committee, the latter relating to Oregon, The remainder, numbering 29,275, were then sorted and arranged according to locality, and it appears that out of the whole number 9,000 were from Indianapolis alone. On the 25th of January Mr. Whitney, on the demand of Senator Sargent, of the Morton Committee, surrendered all these despatches to Mr. Burbank, Senator Morton’s brother-in-law, and the clerk of his committee, and there ended the responsibility of the telegraph com- pany, which appears, with one exception, noted be- tow, to have acted with entire fairness. ‘The testimony goes on to show that the despatches remained inthe Senate committee until the 14th of March. Meantime the Field committee, of the House, and the Morton Senate committee, had come to an agreement that neither the despatches nor the bank accounts should be used or in- vestigated, and it occurs at once to every- body that the republicans would not have made such an agreement had they believed their own hands clean. On the Mdthof March the telegraph company got permission to recover their despatches. Burbank, Senator Morton’s brother-in-law, surren- dered to Mr. Whitney the trunk said to contain them all, and he forwarded them to New York, where they were destroyed last spring, having, it is said, been forgotten meantime and remained locked up in the trunk, At this step of the examination, Mr. Evans, a re- publican member of Congress from Indiana, was ex- amined. He admitted that he knew one George Bul- lock, formerly messenger to Senator Morton’s com- mittee, but now consul at Cologne. It is curious that Bullock was appointed to his consulship and went abroad about the time the Potter committee was formed. Mr. Evans admitted that the night before Bullock left here for Germany he handed Evans a bundle of papers which Bullock said he got in the Morton committee room and which ‘were important. Evans further admitted receiving 8 letter from Bullock, dated November 18, 1878, in which Bullock wrote that he saw by the papers that @ great stir was created by the publication of the cipher despatches, and that there was to be an investigation as to where they were got. He sus- pected that they were the papers he had handed to Evans, ‘and which you handed to William E. Chandler,” and he urged Evans to go to Chandler at once and prevent him from mentioning Bullock’s mame in connection with them, because of the trouble and disgrace it would bring on him. : Evans said, however, that he did not hand the papers to Chandler, but to Brady, Second Assistant Postmaster General (an Indiana man), and Brady will to-morrow have to say what he did with tnem. Brady was a protégé ot Senator Morton. ‘Thus the despatches are at last traced, and it is found that the messenger of the Morton committee had an important share in their ‘theft, and that he is now consul at Cologne, as so many other persons, disreputably connected with the republican manipu- lation of the Presidential election, have been re- warded with public office. But this is not all. The officers of the telegraph company, being asked, admitted that ceriain de- spatches were withdrawn by orders of Mr, Orton, president of the company, and that thoy were be- tween Mr. Tyner, Assistant Postmaster General; Mr. John W. Foster, of Indianapolis, and Secretary Chandler, They numbered six or eight on each side. Two persistent searches were made to ‘get them all, and they were collected and withdrawn by orders of Mr. Orton, sent in a letter which was burned by his direction. According to the memory of the witnesses these de- spatches related to what one of them éalled a dirty political transaction—the sale of two positions in the Interior Department for $5,000, to be transferred to Indiana, to be used in the October campaign. Aside from these sixteen other despatches were withdrawn from the Washington office by Mr. Orton's order, but of these no particulars aro as yet public. It is not necessary to ask after this why no repub- lican despatches have appeared, but to-day’e testi- mony leaves a number of prominent republicans in avery awkward position. EXPECTFD FEDERAL CHANGES IN NEW ORLEANS. As soon as the New York Custom House nomine- tions are settled thero is reason to believe that im- portant changes Will bo made in the Louisiana federal offices. There has been a good deal of dissatisfaction here with the present Collector and United States Marshal, who are said. to have been inefficient and to have misconducted themselves during the can- vass and election of ‘last fall. There is great dis- satisfaction with them among tho better class of Louisiana republicans, who urge that if competent and influential nen of character were appointed to the federal offices in their States this would exercise an important influence on public opinion there and very greatly strengthen the republican organ- ization, drawing into it the leaders of the conserva- tive party. The Marshal, “Jack” Wharton, is said to havo been totally incompetent, and the Custom House influonce in the politics of the State is asserted to have been scandalously misused. It is bo- Meved that tho President means to mako @ general clearance in the Custom House, which has beon, under Collector Smith and his coadjutors, Madison Wells and Anderson, simply a refuge for notorious political bummers. Wells’ term runs out in a few weeks, and -he will not be reappointed. Andorson would be tnrned out by any reputable Col- lector, and a thorough reorganization of the Custom House would follow as a matter of course. CABINET CHANGES IN MEXICO, Despatches from the city of Mexico, received here, relate that Sefior Miguel Ruclas has been appointed Secretary of State. Mr. Avila, who has been acting Secretary of State, becomes a Jus tice of the Supremo Court, and Mr. Nu- nez, who. was in chargo at Berlin, will be made Assistant Sccretary of State. Mr. Muelas, tho new Secretary of State, ia a lawyer from tho State of Zacatecas, and bas represented that State in the Mex- fean Congress, and was a member of tho Committeo on Foreign Affairs, No political importance is be- Heved to attach to these changes, FROM OUR REGULAR CORRESPONDENT. Wastttraton, Jan. 27, 1879, THE NEW YORK APPOINTMENTS—INTEREST FELT IN THE ACTION OF THE SENATE—cROWDED GALLERIES DISAPPOINTED. In the fece of a general disbelief that the Senate ‘would act upon the New York Custom House nom nations today public ansiety about tho matter kept NEW YORK HERALD, TUESDAY, JANUAKY 28, 1879.—TKIPLE SHEET. the Senate galleries thronged nearly the whole sfter- noon, especially as it was rumored that if the business were reached at all an effort would be made to have the nominations passed upon in open session, ‘The fact that the long pending issue be- tween Senator Conkling and the Stalwarts on the one hand and the President and the administra tion on the other war about to be settled in’ @ battle which could not be other than a hard fought straggle between .the opposing forces engaged, gave the affair an almost thri"ling interest. Accordingly, when the patience of the ex- pectant crowd was rewarded bya motion on the the part of Senator Hamlin to go into executive ses- sion there was a general flutter and an excited move- ment to catch every word. But the democrats were, for the time being, more interested in the fate of Warren Mitchell's claim for his lost cotton bales than in Mr. Arthur grievances, and the Senate, by a rising vote of 23 to 11, refused to go into executive session. This vote made considerable of a commotion, for it was, wrongly interpreted, to mean that Senator Conk- Ning was in a minority of six, The first knock down was abont to be scored for the Administration when, after some whispering and inquiries, the Vice President informed the Senate that the motion to go into exeeutive session would not take the Mitchell bill from its place on the calendar, Thereupon Mr. Conkling renewed the motion of Mr. Hamlin, and it was agreed to without a dissenting vote. The galleries were at once cleared, amid the grum- bling and to the great dissatisfaction of the crowd, and when the Senate was in utter seclusion, and after some brief preliminary business, Mr. Conkling made his report, a6 Chairman of the Commit- tee on Commerce, adversely upon the nominations of Messrs. Merritt and Burt and favorably upon that of Mr.Graham. He sent to the Secretary's desk and had read the charges of Secretary Sherman and the replies of Messrs, Arthur and Cornell on the subject of the administration of the business of the Custom House by the latter gentlemen. Quite curiously the documents failed to in- terest many of the Southern and Western Senators, who sauntered out into the lobbies and walked about or smoked or lunched, leaving Mr. Gorham to read a good part of the time to a beggarly array of empty benches. The several papers occupied about an hour anda half in their communication to the Senate, At the close of the long reading Mr. Conkling moved that the documents pro and con be printed and made public, so that the people could understand the whole of the case. Upon this general debate sprang up and the motion was finally carried. Mr. Conkling was dispassionate and reserved in his remarks, and in advocating the proposition to publish made no reference to the merits or demerits of the case which was the subject of controversy. Senator Hoar, of Massachusetts, said he understood the report of the Committee on Commerce, recom- mending that the Senate do not consent to the appointment of Messrs. Merritt and Burt, was before the Senate for consideration, and if so this was the proper time to call attention to the right which the President had to make removals for ,cause. Moreover, it was not always necessary that the opinion of the administra- tion should be presented in an argumentative form, and he would call the attention of the Senators on the other side of the Chamber—alluding to the democrats—to the fact that it had always been held by their party that the President had a right to exercise this prerogative. It was, in fact, an ancient and sacred right which the democrats had always insisted upon, and would it not be well for them to remember their ancient landmarks ? In this case the President had not only sought to replace the old officials with new men whose administration of the affairs of the New York Custom House seemed to justify the wisdom of his action, but he had sent in many reasons why the Senate should sus- tain the view he had taken. It is understood that Senator Garland, of Arkansas, replied to Senator Hoar and alluded to the rejection of Messrs. Roosevelt and Princeat an cxecutive ses- sion now nearly a year ago. At that time, con- tinued the Senator, this honorable body fully discussed the merits of the President's mght to make changes for cause and by a vote of the Senate, rejected the names sent in for the. office of Collector and Naval Officer. He had listened attentively to tho reading of Secretary Sherman's letter and also to the reply of Mr. Arthur read at the session to-day, and without intending to entor into argument as to the course of proceedings under democratic adminis" trations he would say that the Senate had already rejected one set of nominations for the offices of Col- lector and Naval Officer of the port of New York, and, so far as ho knew, all the charges which existed against Messrs. Arthur snd Cornell a year ago had been met by the flat refusal of the Senate to consent to the confirmation of the names sent in as their suc-_ cessors. Something, then, was due to the ancient and sacred character of the Senate, which could not at this time stultify its record of a year ago, or, rather, could not reconsider its decisive action then by con- senting that another set of nominations should be confirmed when, so far as he knew, there was not a solitary reason alleged, for the change over and above what existed at the time of the nomination of Messrs. Roosevelt and Prince. Unless there were stronger reasons now than were then alleged it would be a singular act for any members of the Senate to change their mind at this time when it was so apparent that the motives ani- mating the administration were of personal and not of a public nature. He did not intend to be understood as disputing the fact that under demo- cratic administrations there had always been harmony between the Executive and the consenting power of the Senate; but he insisted that this was not a new case, and the precendent already set in refus- ing to consent to the first names sent in ought to be conclusive so long as the Senate was composed of very nearly the same members that voted on the question in March, 1878. Mr. Hamlin, of Maine, addressed the Senate at con- siderable length in opposition to Mr. Conkling's proposition to publish. He was oppored, he said, to the publication of anything that took place in ex- ecutive session. Todo so now would make a pre- cedent for future departure from this custom of the Senate in transacting important business, and he thought that the secrecy of an executive session should be and ever continue to be inviolable. Mr, Thurman, of Ohio, advocated .the full and un- reserved publication of the whole matter as an act of jnstice to the several gontlémen whose character was under criticism. After disposing of this question a motion to rise ‘was welcomed, as the hour was late. Accordingly the main question of confirming of rejecting the nomi- nations went over to the next executive session. The vote on the adoption of Senator Conkling’s motion to print and make public the letters of Secre- tary Sbermen and Messrs. Arthur and Cornell was 46 to 9. ANOTHER DEMOCRATIC CaUcus. Tho democratic members of the Senate will hold another caucus to-morrow morning to further dis- enss tho policy they should pursue in meeting the resolutions of Senator Edmunds on the Thirteenth, Fourteenth and Fifteenth amendments. ‘The caucus will also consider tho resolution of the repeal of the test oath provisions as to jurors in United States courts and disctiss the propriety of ad- vising the House democrats to append the repeal to one of the appropriation bills t ensure its pas- sage this seasion. It is possible that the controversy a8 to the New York nominations havo vo broached as @ subject of caucus action, especially as tho democratic members of Senator Conkling’s committe, in not voting upon the appointments, have foreshadowed a democrrtic plan of treating the question of their confirmation. GENERAL WASHINGTON DESPATCHES. Wasutxatow, Jan, 27, 1879, CONSTITUTIONAL AMENDMENT PROHIBITING THE PAYMENT OF WAR CLAIME. ‘The following is the full text of the proposition reported by Mr. Edmunds to-day from the Senate Judiciary Committee, a8 a substitute for the consti- tutional amendment on the same subject proposed by tho Joint resolution which passed the House under @ snspension: of the rules on the last day of tho last session. RTTCLA 16.—No claim aval ovor hervatter be atearyes |S or any department officer or court of the mited States, or money paid by the United — or from _ their ‘Sete, oe ” es, compensation or otherwise, for 01 on account of any property, real, perso or mixed, taken, used, injured or destroyed by the United States troops, or by or through any officer, civil or military, or other © rapes’ acting or rofessing to act under or by authority of the United tates or of their enemies; or taken, used, in- jured or destroyed from any other cause whatever during’ the existence of the late insurrection or rebellion } pend the government of the United States, unless the owner thereof (and in case of any corporation its governing authority and management) was during all the time of such insur- rection or rebellion loyal in fact to the government of the United States, and gave neither nor encour- agement to the enemy. No pension, bount; ant, uuniary indemnity or pecuniary benefit shall ever given or provided for ‘by or under the authority ot Con, or any State for or on account of an: military or other service performed or injury suf- tered in hostility to the government of the United States. No pardon or amnesty, past or future, shall havo sny affect to take any person, case or claim out of the purview of this article. FOUR PER CENT BONDS TO BE ISSUED. ‘The Secretary of the Treasury, in answer to inqui- ries concerning the amount of four per cent bonds that can be issued for refunding purposes, states that under the refunding act there was authorized an aggregute of $1,500,000,000 bonds to be issued for that purpose; that there has already been issued of five per cents $500,000,000, of four and a halfs, $185,000,000, and of tour per cents $168,200,000, in all $853,200,000, leaving of four per cents still to be is- sued $646,800,000, Of the bonds at present redeem- able there is now outstanding:—Consols of 1365, $26,085,550; of 1867, —$310,614,000; of 1868, $37,405,300; of ten-forties, $194,566,300—in all $568,731,150—showing that there are more than enough four per cents authorized to take up all the bonds which will be redeemable before 1881, CONGRESSIONAL NOTES, General James Shields, recently elected Senator from Missouri, made his appearance in the Senate Chamber this morning, the oath of office was duly administered and he took his seat. ‘The Warren Mitchell claim bill was up before the Senate to-day and gave rise to an extended debate, Senator Hill, of Georgia, spoke strongly in opposi- tion to the bill, which went over without action. In the House the bill of Mr. Wright, of Pennsyl- vania, for the loan of $500 by the government to any person desiring to take advantage of the provisions of the Homestead act, was defeated by a vote of 22 ayes to 212 nays. RENO’S RUN. HOW HE IS DECLARED TO HAVE SCAMPERED FROM THE INDIANS—‘‘EVERYBODY RAN FOR HIS LIFE’—‘‘COMPANY A, HALT! FOR GOD'S SAKE DON'T RUN!” [BY TELEGRAPH TO THE HERALD.) Curcago, Jan, 27, 1879, The thirteenth day of the Reno trial opencd with some fresh testimony. George Herendeen, an experienced scout, was placed on the stand. This witness said he wasa scout and courier with General Custer on the 25th of June, 1876, accompanying Reno’s colamn; he had been in several engagements with the redskins; con- cerning Custer’s order to Reno the witness tes- tified that as he overheard it it was in effect that Reno should lead out and Custer should follow him; they were not opposed by In- dians as they went down the bottom; to estimate the distance of the Indians from them after the skirmish line was formed, the witness, Girard and another scout all took aim at one Indian, but the bullets fell short; he thought the Indians were from seven hun- dred to nine hundred yards away; just as the retreat was about to begin the witness rode up close’ to the Major; a volley was fired by the hostiles; Bloody Knife, the Indian scout, some ten feet ahead, fell dead from his horse. EVERYBODY RAN FOR HIS LIFE. Major Reno had ordered the men to dismount; then, immediately, he ordered them to mount again, and everybody ran for his life; the retreat was just as fast as spurs would make an American horse go; witness followed the command as rapidly as he could; everybody was running for his life; the horse of witness fell, throwing him, and perhaps twenty Indians stumbled over him; witness then started buck for the timber; as he did so the men ‘were still coming ont of the timber, and he heard an officer say, “Company A, halt; for God’s sake do not run;”’ the helt was not effected; witness got back tothe timber and found some men mounted and some dismounted; he advised these to turn back to the timber and try to lead the Indians off; they did so, and the party took up a position in the timber; they remained there two hours and were not molested by the In- ions; the men had plenty of ammunition; they were scared at first, but got over it and proposed to fight. RENO IN COMPARATIVELY SAFE QUARTERS. Down the river he heard the sound of firing in vol- leys, in the direction of the Custer battlefield; that firing lasted an hoar; over where Reno was, however, he heard during that time only scattering shots: probably Custer was halt a mile beyond Reno's hill when the Major began his retreat; the Custer battle- field was about two miles from the same point; late in the afternoon the witness left the timber, and eleven soidiers, three of whom were wounded, and joined Reno; they left two men behind; in getting out they encountered five Indians, upon whom they fired and the redskins ran; crossing the river (the water up to their necks) they saw the troops on the hill; Lieutenant Varnum came down to meet them ; the only conversation he had with Major Reno was that evening, when he interpreted for Half Yellow Face, of whom Reno asked what the Indians appeared to be doing; the witness could not say who appeared to be exercising command; the witness estimated the number of fighting Indian: that he did not driven Reno from the timber had he remained there; he did not think the Indians could have driven 100 men with 5,000 or 6,000 rounds of ammunition out of the timber where Reno’s command was, CUSTER’S PERSONAL ORDER, Mr. Gilbert then examiued the witness. The order which the witness saw delivered to Reno to cross the river and charge the Iudians was given by Gen- eral Custer in person; the witness did not sce Colonel Cook, the adjutant, deliver any such order. After the witness had rehearsed the narrative of his adventures up to the time when he rode out into the glade and saw Major Reno’s men mounted, he testi- fied that Major Reno, after he gave the order for retreat, rode very fast through the timber; he saw nothing of Reno in the timber except when he gave the two orders in the glade: When Mr. Gilbert had finished the cross-cxamina- tion Lieutenant Lee extracted a little more direct tes- timony, and Colonel Merritt aeked the witness if went over the battle Held the next day after the m: sacre, ‘he witness raid ho did not; he was quite positive thist no fighting occured at the place where Custer wag suppi to have al pted to cross the river, for he would have heard the CAPTAIN PAYNE'S EVIDENCE. Captain J. 8, Payne, of the Fitth cavalry, w He said that he was over the field Jast Augus: distance between the place whe: and Reno's hill was 4 miles 160 yards, he said, meas- uring it;. when there, the evidence of a battle field that he then eaw were boues of horses aud a few bones which he supposed to be those of human beings; near the battle ficid was @ hill higher than any in the vicinity; but even it a force of 1,500 Indians attacked a command number- ing no more than Custer’s the hill would afford little defence, and the result would be a question of only a short time; there was no place abont the tield that would afford a protection for Custer; according to the best estimates which the witness had heart, the number of Indians was about twenty-five hundred, and it probably took from twenty minutes to three quarters of an hour to destroy Custer and his men. LIEUTENANT BAIE'S DESCRIPTION, The last witness was Lieutenant L. R. Hare. His testimony, so far a6 taken, was not of the first im- portance. Ho stated that he saw a party of torty or ufty Indians from the point where the commands haited on the morning of the 25th, and had no doubt that the Indians had discovered the command, Witness accompanied Major Keno’s column, and described the crossing of the river and the advance to the point where the skirmish line was thrown out; at this juncture, though they had been scarce before, the Indians rode up tour hundred or five hundred strong; witness heard no orders given in the bottom; did not see the withdrawal; his horse holder came to him and said the command was leaving the timber; but for him the witness thought he might have been left behind; he regarded the retreat as having been made in good order, but admitted there was some confusion in crossing the stream; the Indians followed along tho vight flank, coming within fifty yards; witness did not considor it arun, buta “pretty fast retreat,” wit- nese did not consider the timber the strongest posi- tion; he thought the difference in Se would more than compensate, even for the thirty men killed in the retreat. ‘Tho Court then adjourned until eleven o'clock to- morrow. STRUCK BY A TORNADO. New Orneans, La., Jan. 27, 1879. A despatch from Luling, Texas, News, states that a tornado struck the town of Lock- = on Sundoy evening, demolishing forty houses, cinding churches, the Court House ana Masonic |. Achild was killed aud several persons badly to the Galveston | THE CIPHER TELEGRAMS, How They Were Selected by the Company. AN IMPARTIAL PARTY DIVISION. Failure to Examine and Verify the Returned Messages. THE SCENT GETTING WARM. —_——— Wasnincton, Jan, 27, 1879. The Potter Committee to-day commenced the inves- tigation of the ‘civher iclegrams,"” The first witness called was Mr. Clarence Carey, at- torney of the Western Union Telegraph Company, New York city. He was interrogated by the chair- man and testified that certain telegrams were placed in his charce when it was proposed to issue sub- penas for their production before an investigating comunittee in Washington, the purpose of placing the telegrams in his possession being to avoid if possible their delivery for public inspection. It was thought that a subpana would not be issued to him owing to his position. He was finally, ho w- ever, directed by the Executive Committee to deliver the messages to Captain Whitney, the Washington manager of the Western Union Telegraph Company, After doing this his custody of the despatches ended. The instructions with regard to picking out the despatches were to take all that were of a political character, the collection when first made being for the sole purpose of getting them out of the way of a subpeena, TESTIMONY OF FLOYD GRANT. Mr. Floyd Grant, who supervised the selection of the telegrams, was the next witness. He explaine! how he proceeded in the selection; he came to Washington, and in order to comply with cc>tain subpenaes issved upon Captain Whitney he opened the trunk which contained the despatches collected by him in New York and selected therefrom those called for by the subpcena of the Morrison Commit- tee; the balance were replaced in the trunk, _. 3y the Chairman—What was the number remain- ing? Did you keep any schedule of them? Witness—The number, exclusive of those required by the Morrison Committee, was 29,275. By Mr. McMahon—Mr. Floyd testified that the telegrams were about evenly divided as regards party. A number were sent by Z. Chandler from the Fifth avenue Hotel. There were some signed Have- meyer, some Hooper and others Noyes. He thought Mr. Chandler's messages went to Florida; others went to New Orleans and Oregon. He thought of the 29,000 telegrams some three hundred of them were in cipher. ‘TESTIMONY OF MANAGER WHITNEY. Captain Leonard Whitney, Manager of the Western Union Telegraph Company, ‘Washington, was then sworn. In compliance with a pe ner by Mr. Potter, witness produced a schedule showing over three hundred telegrams delivered to the Morrison Com- inittee. He thought Mr. Morrison returned the despatches, but did not recollect the time. Other schedules were produced showing that various tele- ‘rams which he was called upon to submit were Gelivered to the Sonate Committee on Privileges and Elections. These were delivered in two different ackages. The telegrams, when returned to Captain Vhitney, were in the trunk heretofore mentioned. He inquired of the party who brought them if they were all in the trunk, meaning the two dit- ferent supplies furnished previous to the time the trunk was sent, and he was informed that they were. The trunk was then ordered to New York, and that was the last he knew of it. It was sent to Mr. Hun- ter, the supply agent. General Butler interrogated the witness with a view to ascertaining whether all the telegrams were re- turned to him. Witness, however, never heard of any of them being missing. y Mr. Hunton—Witness said when the trunk was returned to him the schedules previously p were not verified by the contents of the trunk, it being immediately shipped to New York as per order of President Orton. A SPICE OF HUMOR. By Mr. Ee Whitney stated that Mr. Van Horne gave a verbal order in his (Whitney's) office to collect all political telegrams from the files and forward them to New York; no conversation as to the cause of this unusual procedure occurred be- tween witness and Mr. Van Horne, however. Mr. Hiscock (laughingly), after some interroga- tories concerning the telegrams delivered to the Mor- rison committee had been made, said:—‘‘No one on this side entertains the idea that the trunk was rifled by the Morrison committce, Mr. Chairman.” Mr. Morrison—It hus been stated that the trunk was not in the possession of the Morrison commit- tee. When it comes to the point you will find the laugh will lie nearer ho 3 go ahead; we Mr. Reed (sarcastically)}—All right await the result in fear aud trembling. Professor Edward 8. Holden, of the Naval Observa- tory, was then sworn to translate without divulging in ‘any way the “cipher telegrams" which were handed the committee by General Butler. DESTRUCTION OF THE TELEGRAMS, Mr. James O, Green said he was chief clerk of the Western Union Telegraph Com; on railway rela- tions and free service; also as a sort of confi- dential clerk to his father, the present President; in a letter just read his father referred to the fact of having handed over the key of a trunk, containing despatches, to nim, directing that the contents should be destroyed; this was in Muy last year; he took the despatches down in the basement of the Western Union premises and cast them into the fur- nace in bundles. ‘The Chairmav—Was there a strong fire? A. Yes, and I took a poker and saw that they were properly consumed, Q. There was no chance of any of them escaping by the chimney? A. No, sir; every one was burned; Icould not say if all the telegrams were returned in the trunk; twenty-five per, cent might have been taken out without its ing noticed; he could not tell if packages had been opened; they could not have been opened while the trunk was in New York; the key was in the possession of his father, and the trunk was in Chicago, w! it was care- tully watched by a competent im, and it was reasonably certain, theretore, that the trunk could not have beed tampered with. Q. You were not destroying them to keep them ont of the y of the committee ? A. Not at all; I think I suggested to my father that they should be de- troyed because several gentlemen inquired about th General Bristow was one who inquired where the messages were, and several others made similar inquiries with regard to them; I thought they were kicking about the committee room until I mentioned it to my father, and it was then I suggested their being destroyed: before destroying them we kept them, as required, six months. Mr. MceMahon—To what political party did Presi- dent Orton belong? A. L understood he belonged to the republi “oy | believe he took an active part in the election of Mr, Hayes. : ee . Have you any knowledge of what pass in ites telegrams? Zz Not at ali; I made sug Ons ; amy father, merely in the interest of the company, Q. There have been a good many rumors that a number of these telegrams are kept back and not sent to Washington. A. I do not know anything about that. Q. You know something of the telegraphic corre- spondence that has been referred to between Tyner and John ¥, Foster? A. ¥es; there were five or six despatches that I know of. Where was Foster at the time? A. In Indianap- olis, I believe. Q. These messages wore taken out and sent cither to Captain Whitney or Mr. Orton, who was in Wash- ington at the time, By whose ‘orders were they taken from the rest of the telegrams? A. By order of the President. Q. Who took them out of the files ?_ A. I could not say; I think I got them from Mr. Cleary; believe these despatches were dated 1876; do not think thoy refer to election, but to political matters, and to elec- La gi renee Q. From what point was that order given? A. The last was given by order from Washington; there were but two such orders, Q. Ik that letter in existence? A. No, sir; I de- stroyed it at the request of Mr. Orton; think I burned it within aday or two ot the time I sent the messages here. Q. Have you any recollection of the contents of those despatches? A. My impression is that they referred to the sale of political offices; I cannot say what political ofiices; 1 understood it was in connec- tion with the election that was going on. INFERENCES, Q. What was the price mentioned? A. Thero was no price mentioned; I may say that this is all in- ference of mine and nothing more; there was abso- lutely nothing In the telegrams to that effect; the air was full of the subject of politics at that time, and my impression was that it was he sale of offices in the government or some department in behalf of the republican Senate committeo, Q. By whom were they despatched? A. Some were signed James N, ‘Tyner, «), (By the Chairman) Who was making the propo- sition and who was considering it? A. 1 cannot tell from the deapateh; 1do not know where I got the impression that there was such sale at all, but Mr. Tyner being in office at the time L assumed that he the disposal of such appointments, Q. Did these despatches give an ides that the busi- nees had been completed? A. Yes; [remember that one said, “Put the sum represented in a bank,” at *G What point? A, Teannot Q in . Teannot say. Q. Indianapolis? A, It was; syhoee credit, T cannot ay to 3 Mr. Springer—Was it to the credit of the republi- can party? A. 1 do not know; I understood that. Q. Did any of the despatches indicate the amount of money? “A. No, sir; at the time these despatches were collected I think I spoke about it to my father, but I cannot say what the conversation was; I was acting under positive erders with regard to them, and nad no discretion in the matter. Q, Do you remember of the first despateh and last? A. Iremember that they wero sent in September and a few early days in October; I fixed that date in my mind because these despatches were not asked for by any of the committee subpunaes. Q. Do you remember any allusion being made to Congress meeting or to any committee being ap- pointed with regard to these despatches? A, No. Q. Was there any order to burn the letter askin, forthem? A. Yes, sir, there was in the letter itself. ‘The Chairman—How many of these despatches were there abstracted ? A, I should say about half a dozen on each side, Q. Was this action drawn to the attention of the directors of the company ? A. Not that I know of, sir. SELLING POLITICAL OFFICES, Mr. Sprincen—From your recollection of the con- tents of telegrams between Messrs. Tyner and Foster was there a sum of money to be placed to the credit of the Repubiican Committee? A. No, sir; it was only my impression that there were certain offices to be sold; the proceeds to go to the Republican Com- mittee; no sum of money was named, The CHam™. ferred to an i sir. Mr. Rexp—Youdid not understand that it was the presidential office? Mr. Srincen—That was sold a little later, Mr. Reep—It was attempted to be sold a littlo earlier, (To witness) Mr. Orton you say was a repub- lican, A. Yes sir. Q. And during his lifetime these despatches were not destroyed + A. No, sir. Q. The present president of the company, your father, isa democrat? A. Yes, sir. Q. And during the time he was acting president these despatches were destroyed? A. Yes. Mr. Hiscock here objected to the evidence, on the ground that it did not come within the scope of the resolutior Mr. Reed—I suppose it must come under the om- nium gatherum clause. Mr. Hiscock—There is no such clause. Mr. Cox—Do you want it to be struck out? Mr. Reed—Oh, no; only we want to show that you are gatherlng together everything that has nothing todo h the investigation. Mr. Grant was recalled and he thought he could identify any of the telegrams which were sent to Washington. Mr. Butler suggested that Mr. Grant be accompa- nied by some member of the committee when he went to examine the telegrams which were now in the hands of Mr. Holden. THE TYNER AND FOSTER TELEGRAM. Captain Whitney (recalled) was examined by Gen- eral Butler relative to the telegraphic correspondence that Mr. Green spoke of as being sent to Washington, which had passed between Messrs. Tyner and Foster. As uear as he remembered he had delivered one or two packages of telegrams which had been sent by Mr. ‘’yner through the Washington office. An order to do so would necessarily have to come from some superior official of his. He had no recollection who gave him the instructions und did not remember having received any messages from New York. GIVEN TO CHANDLER. Representative Evans, of Indiana, was examined relative to Mr. Bullock’s position as Assistant Clerk of the Senate of the Committee on Privileges and Elections, and asked by the chairman if he ever re- ceived a ‘package of telegrams from Bullock and handed the same to William E. Chander. Witness admitted having received a bundle of papers (he could not say what the contents were) from Bullock, and had handed it intact to General Brady, of the Post Office Department. ‘The chairman handed Mr. Evans a letter purporting to be a copy of a letter received by him from Mr. Bullock, which mentioned the package as the one Evans had given William E. Chandler at the request of Mr. Bullock. Witness denied giving Chandler the package, and said he did not know William E, Chandler personally. The letter in conclusion stated that Senator Wad- leigh would inform him (Evans) where Mr. Chandler could be found. (Laughter.) After some further inte: atories, in which it was developed that Mr. Evans had not spoken to General Brady on the subject since delivering the package, and had heard no more about it, a recess was taken until three P. M. AFTER RECESS, The following were the proceedings of the Potter Committee after recess Mr, Grant was recalled and stated that, at the order of Mr. Cary, he made another search for the des- patches between Tyner and Chandler, and burned tome of them. There were seven or eight altogether. One was a telegram from Tyner, about making two dppointments in the Interier Department at salaries of $2,500 each and asking Mr. Chandler to do this and have the money deposited in some national bank so that it might be drawn in Indianapolis by the Republican Committee. ‘The telegrams also contained the names of the per- sons to be appointed. He could not remember what those were, but he believes one was ‘in. Mr. Reed—It was not St. Martin, was it ? ‘The Chairman—No. He has not received his ap- pointment yet, as far as I know. Mr. Ree¢@—He had one from the sub-committee. — McMahon—Yes; they discharged him for pro- motion. General Butler—Oh! he does not psy money he re- ves. MOLASSES CANDY. At this point the clerk of the committee brought in aclumsily wrapped newspaper package and handed it to the chairman, upon whom all eyes were imme- diately turned. Blushingly he rose to ex “Gentlemen,” he said, “I ordered from Mrs. What's- her-name, in the lobby, twelve copies of the Tribune special about the cipher despatches, but it seems there has been some mistake, and she has sent twelvo packages of molasses candy.” (Laughter). Mr. Reed—Either is sweet enough for this com- mittee. Mr. Hiscock—It is very evident she appreciated what you wanted or needed. (Laughter.) GRANT RECALLED. The examination of Grant was then renewed, and further details were given by him of telegrams which passed between Messrs. Chandler Tyner. He ulso testified with regard to a telegram from Foster relating to the same matter. Mr. Green at this point explained that he had for- gotten one cireumstance in connection with the tele- grams, The number was incomplete, and at the Suggestion of Grant the manager at Indianapolis was notified to send on the rest. The Chairman—You stated that you had forgotten names until you heard the last witness mention them. You do not confound the name of Zack Chandler with William E. Chandler, do you ? (Laugh- “ike . Green—No, sir. General Butler (to Grant)—I want to understand something more about this. Tyner telegraphed to Chandler, Secretary ot the Interior, to appoint some- body in his department? A. Yes, sir; two sppoint- ments of $2,500 each. Q. For those appointments a certain sum of money would be paid and ‘Tyner wished to have such sum deposited in the bank so it could be drawn in In- diana? A. I said that exactly. Mr. Ree’—Deposited by whom in the bank? A. Chandler. He was to deposit the money and make the appointments too, ee, the same day or the after. Chandler telegraphed that he had deposi- ted money as requested. Q. When did you first mention this? A. Right here in this room. MR. CARY RECALLED. Mr. Cary, being recalled, said he would like to make a statement that he knew nothing of any con- sequence with regard to these telegrams, and to make an objection that what ho did know was privileged knowledge that cai to him as attorney for the Western Union Telegraph Company. Mr. Butler—Answer this question and then make an objection. Q. It hax been testified by Mr. Grant that he re- ed aschedule from you. From whom did you that schedule? A. I plead my privilege on that question. Mr. Butler argued that as he did not desire to ask the contents of this paper, but simply put the ques- tion for the purpose of tracing it, witness was bound to answer. NOT THE REMOTEST RECOLLECTION, The Chairman concurred in this opinion, and wit- ness then replied to the question that he had not the remotest recollection from whom he got the schedule, or that he ever had it, e Mr. Butler—Then why did you object? A, Because I knew something further about it, behind that, Mr. Butler—Teil us what it is. Witness claimed his objection, and a discussion fol- lowed on the point of privilege between him and Mr. Butler, and the latter read the law on that point. Hitchcock—It seems to me that C: jection is entirely proper in declining to answer this question, as it is not within the scope of our investi- gation. Mr. Butler—Oh, you have me there, that, MR. HISCOCK ATTACKED. Mr. Reed—Mr. Chairman, I contend that Mr. His- cock hus acted very badly in spoiling our whole day's work in thiy way. It «poils our whole day, Mr. Hiscock—Tho point I wish to make is, that the Tno not hold particular branch of inquiry which he is now pur- sting is outside of the resolution which we passed the other day. Mr. MeMahon—The committee having been ap- pointed for tho purpose of investigating these specific matters, and it having been shown that the parties having charge of these despatches when have been subpernaed, or rather that the president of the institution through which these despatches have been sent has selected acertain class ot cipher despatches—the class which will best assist his own litical party—bave a right to bring those other despatches before this committee. WHAT THE INQUIRY MFANS, Mr. Haxcock—My idea is that the purpose of the resolution waa to enable us to clear up despatches that we know about, not to prove the destruction of others. Mr. McManoy—It was to clear up the whole sub- ject of cypher despatches, no matter by whom sent, Mr. Burtrr—if it is to be done at all, it is to be done well; that is my idea, Mr. MeMahon—Just so; I have no wish to have it done piecemenl. Mr. Reed—But, then, we have only six weeks to do itip. Mr. Hiscock—The resolution that has been passed, has reference to certain despatches for the purpose of influencing elections, and we have now «pent the whole day with despatches referring to appointments of officers. I am quite willing to do that; Ldo not object to it, but still it is well to do what we have undertaken to do first. put to the witness is that we have had a witness upon the stand who states the contents of those de- spatches, and there is no reason to question the pres- ent witness unless you wish him to contradict that testimony. Mr. Hiscock—I shall be extremely grateful when we have established the fact that we are being gov- erned by rules of evidence in this investigation. Mr. Keed—Idon't think we ought to dispute the ality of the testimony before this committee after fie experience we haye had. Mr. Springer read the resolution passed in the House with regard to cipher despatches, particu- larly pointing out the clause ‘and investigate into other matters connected with such election.” Mr. Hiscock contended that this resolution referred to the despatches that had been published. Mr. McMahon—I do not agree with Mr. Springer that we have authority to investigate all details of alleged transaction whatever they may be. That was something that took place prior to the October elec- tion, and does not come in any portion of the scop> of this resolution. But these despatches are part of the machinery of the election of 1876. By Mr. Reed—What does he mean’by machinery cipher despatches? A SWEEPING MEANING. Mr. McMahon—I mean officers in the Interior De» partment, officers in Louisiana; I mean the army, [ mean an unscrupulous Pregident, an unscrupulous lot of officers and a good many men outside who are willing to act unsernpnlously. Mr. Reed—You do not seem to be deseribing any- thing that ever existed. Mr. McMahon—The innocent gentleman from Maine had nothing to do with these transactions, of course. Letmego on. In 1876 certain gentlemen got anxious about their despatches and they go to President Orton and ask that certain despatches passing between the Attorney General and the prospective Minister of Mexico shall be destroyed. ‘This was complied with, and now we wish to show that these despatches were of a political character, Do the gentlemen think that when we go into the investigation of these cipher despatches that we are to be satisfied with telegrams published im the New York Tribune? They must think we are children. We are not sitting here to investigate one side of the case but both sides. It is pretty well known that this resolution was offered by this committee at my suggestion be- cause I wanted the democratic party to show to the country, and I think will show, that it is capable of investigattng both sides thoroughly, even though such investigation may hurt its own men as well as the other side. I want to believe that the democratic party will have uo standing in this country unless it proves itself equal to do and I now say publicly that I should like both to be thoroughly investigated, and not confine proceedings to vindicating or smirching Mr. Tilden alone. We want to discover the whole truth, ‘We want to know whether President Orton was 3 man who might be used for political purposes, I would not for a moment deny Messrs, ‘Tyner, Foster, Chandler or anybody else named an Sapomnnier oe making a fuller explanation, Todeny this would be the most intense meanness, but we are entitled to know if these were political telegrams and a part of the general scheme. I want to know if Mr. Orton gave these telegrams up after receiving the subperna of the committee. : Loa sara Ns is very proper to ask it as Mr. Orton is dead. Mr. Hiscock—I have been somewhat critical this afternoon in reference to this investigation, because it seems to me that the dispatches that were to be investigated were the published dis- patches only. The resolution asked for the investigation of certain bos toner which were pub- lished and were notorious throughout the land. In- stead of this we seem to be striving to prove that somebody has destroyed some of the despatches with a view to making a very plausible and strong argu- ment that, if we only had the despatches burned, we should have something as black on you as you have now nous. That seems to be the drift of the investigation, and therefore it is that I am inclined to be critical. We were to investigate published de- spatches and purge or convict those who are charged with crimes and misdemeanors to which they refer. Mr. mcnshon-—The General is taking a very narrow view of it. Mr. Hiscock—No, sir, 1am not. Democrats offered the resolution in the House. They did it because their chieftain had been assaulted, and we supposed that it was for the purpose of vindicating him and also to establish the party in the eyes of the country. ‘They did not offer to investigate any despatches that had been burned. Mr. McMahon—That is, you want to investigate democratic despatches only; I want to investigate both republican and democratic. THE KAME FARE ALL ROUND. Mr. Hiscock—No. Since the democrats have in- vited us to this feast, I propose they shalleat the same fare. Mr. McMahon—You do not like the pork and beans we are giving you now. General Butler here returned to the question of privilege, and read authorities on the subject. It was then determined to take a vote upon the ques- tion of whether the witness should be called upon to answer or not, when all members present voted in the affirmative with the exception of the chairman. Mr. Hiscock—Now I wish you be put the other question, as to whether the questida which is asked the witness is pertinent to the inquiry. PUSHING FORWARD. A vote was taken, and it was decided that the ex- amination should proceed. Witness then replied:—I am unable to recollect what he told me; it is my impression and belief that he brought those tel 8, or copies of them and read them out to me, remarking that it was an extraordinary case. Iam unable to separate in my mind my remembranves of what is in them from what I have heard other witnesses say to-day, I never saw the telegrams. To the best of my belief they related to some dirty piece of work in regard to the sale of offices for some political ends. Mr. Butler—Nothing you have heard to-day has rofteshed your memory’ 80 that you can say an un- truthful account has been given of the telegrams— given by other witnesses? Mr. Hiscock—I object to this question and ask that it be ruled out. It is like putting six witnesses on the stand to testify they did not see the man steal the pork. A vote was taken, and Messrs. Hiscock, Reed and the chairman voted against the question. Witness answered that the testimony he had heard was supplementary to his recollection and went be- = it; he did not think the despatches were cipher espatches strictly defined. ‘Lhe Chairman stated that he had received a letter from Mr. Brady to the effect that he would appear before the committee next morning. Mr. Butler—Snppose Chandler testified that he got those despatches from Mr. Brady in newspaper bundle, you would not want Brady? ‘The Chairman—He might testify entirely different, and then I shall want him. The Committee then adjourned until eleven o’clocl, to-morrow morning. DISCOVERIES OF FRAUD, SOME STARTLING DISCLOSURES MADE BY AUDITs ING THE ACCOUNTS OF A STATEN ISLAND TOWN. The Richmond County Grand Jury, which meets to-day, will probably be called upon to act in relation to certain frauds which, through the work of the town auditors of Middletown, have just been brought to light. For some time past it has been known in the shape of common street talk that certain men were unusually prosperous, and that the bills which they presented against the town and county were for large sums, Tho truth of this assertion has just been proven, Messrs, Thomas J, Martin, James Scott and Henry Mendall, the Board of Auditors for the town of Middletown, have com- pleted their labors, and as in the course of their business some very queer transactions were dis- covered, they have laid the facts before the people it: the shape of a report. This report shows that dure ing the past six years the increase in the town-cx- penses has been nearly twelve-fold, the bills this year aggregating $10,126 80, as against $900 in 1872, There seems from the report to have been a deter- mined raid made on the town treasury by justices of the peace, constables and liverymen. Alarge num- ber of the constables’ charges were said to be fraudu- lent, as was shown on comparing their bills with the records on file in Sheriff Brown's office. One constable makes 157 charges for taking prisoners to jail, while the Sheriffs ks show there were no commitments. Another constabic inakes seventy-five such charges, while in one livery stable keeper's bill there were fifty-seven orders for the conveyance of prisoners, and no commitments to correspond, Another livery man has twenty-nine such cases, another twenty-eight, another sixteen and so on. As a fact tending to show the fraudulent nature of most of the charges and the frivolous character of most of the complaints, the report states that there have been during the past year 400 prisoners actually confined in the County Jail on commitments from justices in the town of Middletown, the great me jority of the prisoners being from the First ward of the village of Bdgowater. The Town Auditors made Teduetion® in the bills; as, for instance, Constable Robert Gog- gin, who claimed $1,236 40, was allowed $397 60; Constable James Davis, who claimed ¢ 35, was allowed $139 25, and Constable William Widmer was allowed $50 for aclaim of $202.16, The total reduc. tions amounted to $3,457 87, The report and many other developments which ate being made from time to time have roused the people of Staten Island, and there is now a very rte | effort bewes made to have a bill passed by the ‘Legislature providing for the appointment of * — magistrate the trustees of the several vill Re thus taking all criminal businces out of the hands of the justices of the peace, KILLED BY A TRAIN. When the 6:30 train on the Flushing Railroad loft College Point tor Long Island City yesterday morn+ ing, Robert ©. Glendenning, of Dutch Kills, was going over his milk route more hurriedly than usual, hav+ ing started late. He reached the Thompson avenus crossing of the Long Island Railroad, near the office of the Mayor of Long Island City, as the train came thundering down the grade, and put his horse to a trot to cross the track before the train had passed, ‘the cowcatcher struck the wagon midway and car ried part of it 600 feet down the track. Glendenni was thrown @ distance of 200 fect, aac when plewed Mr, McMahon—My ebdjection to the question now | up was dead,