The New York Herald Newspaper, February 1, 1879, Page 3

THE COLLECTORSHIP. New York Nominations in Executive Session. A MESSAGE FROM THE PRESIDENT Too Much Politics in the Custom House. SECRETARY SHERMAN'S REJOINDER. Original Charges Reiterated and Expanded. PRELIMINARY ADMINISTRATION VICTORY The Question of Confirmation Postponed Until Monday. ——— . Wasntxatas, Jan. 31, 1879, The proceedings in the executive session of the Senate to-day were commenced by the reading from the Clerk’s desk of the Message of President Hayes and the accompanying long letter of Secretary Sher- man, which had been received by the Vice President afew minutes previously. The following are the documents!-- THE PRESIDENT’S MESSAGE, To THE SENATE:— I transmit herewith a letter of the Secretary of the ‘Treasury in regard to the suspension of the late Col- lector and Naval Officer of the port of New York, with accompanying documents. In addition thereto I re- spectfully submit the following observations :— The Custom House in New York collects more than two-thirds of all the customs revenues of the govern- ment, Its administration is s matter not of local in- terest merely, but is of great importance to the people of the wholecountry. For along period of time it has been used to manage and control political affairs. The officers suspended by me are and for several years have been engaged in the active personal man- agement of the party politics of thie city and State of New York. The duties of the offices held by them have been regarded as of subor- dinate importance to their partisan work. Their offices have been conducted as part of the political machinery undey their control. They have rfde the Custom House a centre of partisan political management. Tho Custom House should be a busi- ness office. It should be controlled on business prin- ciples. General James, the Postmaster of New York city, writing on this subject, says:— The Post Office is a business institution and should be run as such. It is my deliberate judgment that I ‘nd my subordinates can do more tor the party of our choice by giving the people of this city « good ind efficient postal service than by controlling pri- maries and dictating nominations, ‘The New York Custom House should be placed on the same footing with the New York Post Office. But under the suspended officers the Custom House would beone of the principal political agencies in the State of New York. To change this, they profess to believe, would be, in the language of Mr. Cornell in his response, “to surrender their personal and political rights.” Convinced that the people of New York, and of the country generally, wish the New York Custom House to be administered solely with a view to the public in- terest, it is my purpose to do all in my power to in- troduce into this great office the reforms which the country desires. With my information of the facts in the case, and with a deep sense of the responsible obligation jmposed upen me by the constitution to “take care that the laws be faithfally executed,” I regard it as my plain duty to suspend the officers in quertion and to make the nominations now before the Senate, in order that this important office may be honestly and efficiently administered. R. B. HAYES, ExecvrivE Mansion, Jan. 31, 1879. LETTER OF SECRETARY SHERMAN. TrEAsURY DEPARTMENT, Jan. 31, 1879. ‘The PrestpEntT:— The letter of Mr. C. A. Arthur, late Collector of Customs at New York, of the date of the 2Ist inst., to the Hon. Roscoe Conkling, chairman of the Com- mittee on Commerce of the Senate, was first seen by me in the New York Tribune of the 28th inst. On the 23d inst. and before Mr. Arthur's letter was acted upon by the committee I caused to be deliv- ered to the chairman a request for a copy of it, to enable the departinent to verify any statement in its letter of the 15th inst. which might be disputed by. Mr, Arthur, and to present such answer to his allegations as would place the whole case before the committee. To this request no an- swer was made, and Iam not advised whether it was communicated to the committee. It is to be pre- sumed that this was not done, for it appears by the public journals that the committce acted upon the nominations before‘an opportunity had been given to the department to establish the reasons stated by it for the suspension of Mr. Arthur. * CHARGES REITERATED. I now repeat that all the allegations stated in the department letter of the 18th inst. are susceptible of the clearest proof, and the department is prepared to verify them if it is the pleasure of the Senate to give the opportunity. Mr. Arthur thinks that if the de- partment letter of the 15th contains ali that can be said against his administration of the office of coilec- lector, his suspension is directly contrary to all the professions of our administration, and a violation of every principle of justice. This is a matter of opin- ion as to what constitute cause of removal. to secure the removal of an officer, it is necessary to establish the actual commission of a crime by proofs in acourt of justice, then it 1s clear that against Mr. Arthur is not made out, e- cially if his answer is held to be conclusive withow reference to the proofs on the public records and tendered to the Committee of the Senate. But if it is to be held that, to procure the re- moval of Mr. Arthur, it is suflicient to reason- ably establish that abuses of administration havo continued and increased during his incumbency ; that many persons have been regularly paid on his rolls who rendered little or no service; t expenses of his office have increased while collec- tions have been diminishing; that bribes or gratui- ties in the nature of bribes have been received by his subordinates in several branches of the Custom House; that efforts to correct these abuses have not met hi pport, and that he has not given to the duties of the office the requisite diligence ul atten- tion, then it is submitted that the case 18 This form of proof the department is pre submit. His carefully prepared answer may put in issue some of the allegations of the ment, but if so the importance of the case, a8 well as the de- mands of the public service, require that the actual truth of these allegations be ascertained by a full in- vestigation of the tacts, MODE OF CONDUCTING BUSINESS, That the mode of conducting public business in the Custom House in New York during the entire administration of Mr. Arthur as Collector was sub- it to yrave criticism is hardly matter of ute, je developments made by the committee of the te in 1872, of which the Hon. Mr. Buckingham ‘was chairman, excited the attention of the country. ‘The abusos which sprung out of the moiety system were fully disclosed by the examination dis- cussion that preceded the passage of the Anti-Moiety act in 1 Numerous reports of special agents called the atiention of the department to existing ir- Fegularities. The increase of expenses which tol- lowed repeal of large and ductive taxes, and the diminution of the revenue from other cau vs, Sone controverted to some extent, are matters of ar ic history, and are shown by tho ye records in the possession of the Senate, Mr, rthur himself claims credit for attempts to brii about reforms, and admits that at the beginning o| this administration there was a necessity for a ve large reduction of expenses. Kindred ses Whi it was believed had crept into the public service in all parts of the country led to « general examina tion of the methods of conducting the customs busi- ness of the cities of the United States, The Jay Com- mission was organized to conduct such examination at the port of New York, THE JAY COMMISSION. Mr, Arthur complains of the personnel of this com- mission and the manner of pursuing its inquiries. It oy aye from the correspondence with Mr, Arthur that he was both personally and by letter consulted as to the persons composing this commission, Hecame to Washington on the isth of April, 1877, and was fully advised of the object of the investigation. Ho ‘was authorized to ana did confer with each member of this commission, and selected Mr. ‘Turnure as one of them. It was the desire of the Treasury De- ment that the Hon. John A. Dix, formerly Naval r, should be the chairman of the commission, ond through Mr. Arthur he waa invited to that position, but the us ill ness of his son prevented him from ac- ate Mr. Arthur then tendored the ition to Mr, Phelps, of New York, but he, 00, do- lined. Then, with the concurtence of Mr, Arthur, -2fr, Jay was named by the depsrtment as chairman, reluctance, that position. Mr. Robinson, the third member of the commission, 14 an oflicer of the Department of Justice, hi the position of Assistant Solicitor of the Treasury. No special agent or officer of this de- partment served on couunission and I never heard any ol to apy member of it made by Mr. arthur until after its ports. The two citizens selected on the commission were ot ite politics and men of eminent position a1 character, He complains of their mode of pi , but it appears that he testified before them; that every person he requested to be called was called and examined, and every oppor- tunity was given to him to present his view of the He says that I carefully and prudently kept the evidence taken by that commission from publication, The evidence was not published by the department because of its bulk, and because its substance had been published w the New York daily papers. The examination was accessible to Mr, Arthur, and a re- go by him would have secured its publication, t was referred to as a part of the reports made by the commission, and could at any time have been published upon the call of the Sefiate or House or any member of either, It is herewith transmitted to the Senate, and I respecttully ask, in view of the statements made by Mr. Arthur, that it be published, His complaint of unfair’ treatment by the depart- ment is entirely unfounded, THE OFFERED FOREIGN APPOINTMENT. He states that the first notice of his intended re- moval was accompanied with an offer of an im- portant foreign appointment under another depart- iment of the government. This statement is entirely inconsistent with the pretence that he was treated harshly, In September, 1877, after the first two or three reports of the commission Mr. Ar- thur freely talked of resigning, said ho had private business that demanded his attention; that the pas- sage of the Anti-Moiety act had greatly redneed the compensation of the office, and that he had no great desire to retain it. In this connection I stated to him that I believed he would be necessarily embarrassed in carrying into execution the refor proposed; that his intimate acquaintance with the persons em- loyed in the Custom House would make it difficult or him to enforce the new methods, and I did, with your consent, say to him that in caso he resigned a position of dignity aud importance in the’ consi service would be tendered to him. ‘his intimation was received by him with favor, but he subsequently declined, because he alleged thut his moult be @ confession of fault in the matter dis- closed, TENURE OF OFFICE ACT. In seeking his resignation I earnestly desired to avoid a controversy in the Senate at the beginning of your administration. Changes had been made during the count of the electoral vote in the tenure of office in New York that I believed indicated that any change made by the present administration, however im- ortantio the public service, would be contested, ‘he tenure of ottice act, of which your predecessor complained, left it within the mae of the Senate to compel you to employ, in the discharge of the most delicate executive duties imposed upon you by the constitution and the laws, persons whom you be- lieved unfit to be trusted with such duties, aud the well known practice in the Senate to deter largely to the Senator representing the party in the State where the office is located made it at all times difficult and sometimes impossible to make the most necessary changes. When Mr. Arthur de- clined to resign I still hoped that the reforms sug- gested by the commission might be executed hy him, and the voluminous correspondence of the depart- ment will show the difficulties encountered and the kindly action of the department to Mr, Arthur. It I committed any fault in connection with this matter it was in not concurring heartily and eas in the logic of the reports which demand a chan; in the leading officers of the Custom House, You had examined these reports and were convinced that changes should be made and that the Senate, in view of the facts, would advise and consent to them. No order of suspension, however, ‘was made, as might readily have been done, but the meeting of the Senate was awaited with a view to submit nominations. The Senate, having rejected the nominations, Mr, Arthur continued in the offic The correspondence will show that after that ti every proper effort was made to secure his co-ope! tion in the necessary reforms, but without success, except in an unwilling way that obstructed while consenting. SPECIFIC CHARGES—PRIBES, I come now to the specific charges to which he re- plies, and first, as to the gratuities in the nature of bribes given to clerks and other employés. It is ter of surprise that Mr. Arthur should assert that the Jay commission obtained no evidence in re- lation to the amount of gratuities and irregular fees to clerks, weighers, inspectors and other officers of the Custom House. The evidence taken shows that most of the witnesses who were interrogated on this point testified¢that gratuities were constantly ceived, It was in testimony with regard to inspectors that they were anxionsts be sent to discharge steam- ers rather than sailing vessels, because they were id by the owners of the steamships a gratuity of ‘om $10 to $15, technically called “house money.” ‘The agent ot one of the lines stated that $30 was paid to each inspector discharging their steamers as “house money.” The agent of another testified that perquisites were constantly paid to inspectors for ischarging vessels; that the shorter the time the vessel was to be in port the larger the amount paid; that the inspectors received a gratuity for adipose the vessel to discharge before the Custom House per- mit reached the ship; that if these fees were not paid the Ininpastoehats {8 lile-powor to delay the veusel dn: wast, cred wawtmerely & question be- twoan the cenbe eat tie inspector as to how much it was worth to the former to obtain these facilities—that is, whether it was cheaper to pay the inepector a gratuity for obtaining these facilities than to have the inspector stand upon the strict letter of the law and throw ob- structions in his way. It was alao in testimony that other irregular fees were constantly received by in- spectors, customarily called atchets” "and “bones” —“‘hatcheta” being fees received from mer- chants for the preventing of holding their goods on the dock instead of going into the general order store at once, and “bones” being fees paid by passen- gers for favors extended to them in the examination of their baggage. With regard to weighers, it wasTestified that there was a complete list of irregular fees adopted by all of them to be exacted of merchants for sapplying copies of weights, These fees ranged from two cents to thirty cents a ton for iron and other metals, and a schedule upon which the foreman of the weighers ‘was accustomed to make the demand shows in detail the amount to be collected upon each barrel, package and bag; upon rice, sugar and many other articles it was also distinctly testified that the Collector's entry clerks received fifteen cents for each entry and the Naval Officer's entry clerks ten cents for each entry from drokers and merchants for facilities in passing the entries. The receipt of these irregular fees by entry withdrawal, export entry and refund clerks was afterward fully shown from the books of Custom House brokers. In addi- | tion to all this it is clear from letters addressed to the Jay Commission by the Collector, Naval Otiicer and Surveyor, in regard to this very question, that the practice of taking ili fees was well known. Mr.,Arthur mentions his entry and withdrawal clerks as the ones most exposed to a violation of law in this regard, snd gives asa reason that “they are charged with functions thé prompt and rapid per- formance of which §s of great moment to importers in giving them the speedy possession " of their goods,” The Naval Officer says that those clerks whose administrative action may accelerate or retard business or otherwise affect the interests of importers were particularly exposed to such improprieties: that they are but human, and whenever there is a coincidence ot temptation, frailty and opportunity there can naturally be but one result; and Surveyor Sharpe answered in the same strain, specifying in detail the kind of foes received of importers. GUILTY OFFICIALS RETAINED. Mr. Arthur ‘sof my action in relation to the retain: in certain entry clerk and an in- spector shown to have received money from brokers. But the evidence before me was clear and conclusive that this practice was common to all such clerks. It would have evidently been unjust to make an example of thix clerk, permitting, at the at it same time, others equally guilty to remain; All guilty in the same office had been discharged the service would have been crippled. The statement of Mr. Arthur in regard to the restoration to office of a storekeeper dismissed by him upon a charge of taking gratuities is strangely incorect. A full investigation of the case was made by Assistant Secretary Hawley, and it was then shown that the storekeeper referred to was a man of unimpeachadle character; that he had been told by the Superintendent of Ware- houses, his superior officer, that the fee paid was part of his compensation for writing over hours; there was nothing to show that he was corrupt in his receipt of this fee, and I therefore revoked his dis- missal. On this state of facts alone he wus restored, i is nent was knowledge. politicians and to insinuate that t to protect a guilty man is beyond my PRACTICE OF FREF PERMITS, The reply of Mr. Arthur to the charge made by the department, “thi vicious practiew had for a lon; time prevailed of allowing free permits for im goods without anthorit, evasion of the charge. It is true that the law allows in goods to be admitted free of duty after a law-, fut examination by proper officers, and it is the daily practice “in accordance with law to issue permits for that purpose. But these are not the permits of which the department complains, but permits issued by the Collector aud Deputy Collector, without authority of law, for the free entry of goods subject to duty without ex- amination and without appraisement, and as a matter of favor to individual persons. Such a prac - tice, whether of long or short duration, opens the door to fraud, invites the commission of 1 rauds by all subordinates, and exempts friends aud fa yorites trom the equal burden of the revenue laws. No such dispensing power is conferred upon the Collector or his deput and it was the exercise of this power of which complaint has beon made. As these permits were in most cases nted without lawful examination of the goods ite in possible to tell how great or how little was the value of the goods thus illegally admitted, or whether they con- formed to the invoices. ‘The single case referred to by Mr. Arthur, which he has erroneously stated, was investigated and re- ported as ® proper transaction, where tie value was alleged to be $53,000, was cited simply as an instance that these illegal ontries are not articles of trifling value; and in that case it is admitted that no exam- ination or entry of the goods was made in conformity to the law. Nor is it proper or lawful for a custom house officer to allow his belief in the honesty of the cod to take the place of the examination by law. In the case to which rofererce bean mado, Mr. Lydecker issued sn order to the in- Spector at the importing veqeel to send the package | to the semester's of business, and the merchan- dise was thus vered without question. i ‘The record shows that for years under Mr, Arthur's administration these im) practices were of al- most daily’ occurrence, the articles thus per- mitted to pass without entry or of duty em- braced merchandise, in many instances, of very con- siderable value, such as horses, carriages, jewelry, cases of wines, brandies and other liquors, cases of cigars and packages the contents of which are not known and inay have been of great value. ‘These un- lawful practices, fraught with great danger to the revenue and to the reputation of honest men, Mr. Arthur treats as trivial in character and worthy of mention, The particu. lar cases are a Poy here, as in- justice might De persons = in this way, but if desired a full statement of all far shown upon the records will be given of these case from which it will aj tl they are not the “harmiess free permits granted in the ordinary course of business to tree goods,” but are in viola- tion of law, of davgerous example, and if permitted can be made the cover of to any extent, with little danger of detection. CHARGES AND COMMISSION CASES. I stated that clerks engaged in making statements of refunds in the well known ‘charges and commis- sion’ cases received gratuities for the work doue by them from the attorneys themselves who were press- ing these cases before the courts and department, In what manner does Mr, Arthur answer this grave charge? He begins by explaining that several years since 1t was the custom for the at- torneys to compel the referee by subpaena to produce before himself the papers lodged in the Custom House, and while in his hands to permit the calculation to ‘De made by persons employed by the attorneys; that the practice was afterward changed at the sugges- tion of the Solicitor of the Treasury, for the reason that it would be better to employ clerks in the Custom House, as then the original entries and in- voices would not be removed trom the custody of the government. In accordance with this sugges- tion clerks were employed on this work, and of course, Mr. Arthur states, they were paid by the importers or their attorneys, the work being outside of government hours and not done for the govern- ment. It will thus be perceived in the statement of Mr. Arthur himself that under his. Collectorship, as a matter of course, clerks were allowed to receive illegal fees from importers or their attorneys from the claims for refund, many of which were without foundation. I have nothing further to add to this admission by him of a practice so improper, and one tending to work so directly against the interests of the government, Further on he say! this objectionable f importer was. somewhat inconsistently, that ire of receiving pay from the od by the law oflicer of the gov- ernment. If b; means the Solicitor of the ‘Treasury, the only law officer who has had the matter in charge, he does not state what is the fact. From a careful examination of the correspondence between the Solicitor and the United States Attorney at New York with regard to this matter in January and Feb- ruary, 1871, when the practice in these cases was changed, there is not found a word which will coun- tenance such a practice or which suggests it. The Solicitor states to the United States Atterney in his letter of February, 1871, that there would be no difficulty in securing the proper clerical assistance in makin ts 3 the adjustments in these cases from Clerks fn the Custom House, who have hitherto been detailed to this duty; but he says nothing about, and does not anywhere intimate, that they were to be paid other than by their salary allowed by law. It appears from the documénts submitted to the House and oral statements made to the Committee on ‘Appropriations, in the presence of the attorneys for these claims, that forged protests were introduced in many cases to give jurisdiction in such cases, and that there was a failure to plead the statute of limitations: that the amount already paid on these antiquated claims are $1,980,000, and that there are still claims pending, all of which are over fourteen years old, which, if allowed, would require the turther sum of at least $750,000. It is now con- tended by the Department of Justice, before the courts in New York, that the great body of these claims ave fraudulent, and resistance to their pay- ment is thus far effectively made. EXPENSES AND RECEIPTS, While Mr. Arthur admits that expenses increased and receipts from the revenue steadily diminished during his administration, he claims that there were improperly, if not illegally, charged to the expense of collection lar; amounts over which he had no control, and whic strictly had nothing to do with current expenses, But leaving out of consideration the extraordinary expenses to which he refers, as well as those incurred by the Naval Office and the Surveyors’ and Apprais- ers’ department, it is shown by the accompanying tabular statements, made up from the Treasury registers, giving the number and compensition of the employés fa tho several, divisions of the Col: lector’s Office and of the weighers, guugers and im- spectors—all appointed upon the nomination of the Collector--that the force and expenses of his own de- partment increased steadily from the date of his assumption of the dutics of Collector to the 30th of June is74, in number 251 persons and in amount $364,574 more than in 1871, and this in face of the fact that the receipts had fallen off in the time mentioned many millions of dollars. The first de- crease in force and expenses was mado in 1875 by order of Secretary Bristow on the recommendation of a special agent and amounted to $187,685. In 1876 another reduction, amounting to ten per it of the salaries paid employés, was made by order of Secre- tary Bristow, but fully restored in 1877, and the ine ome to the incumboncy of the pres- ent Secretary. In 1878 the recommendations of the Jay Commission went into effect, resulting in a re- duction of force and expenses in the Collector's de- partment alone of 126 persons’and $287,874 over the previous year. From this it will be seen that my former statement as to the reductions caused by the recommendations of the Jay Commission fell short rather than ex- ceeded, as Mr. Arthur charges, the actual reduction accomplished in his department in 1878. In the Col- lector’s immediate office it is seen that the force and expenses were increased from eight persons and $13,200 in 1872, to eighteen persons and $36,700 in 1877. This force has now been decreased to seven persons and $11,940, Mr. Arthur compares the cost of weighing for thé year ending June 30, 1872, with$the cost for the ycar ending June 30, 1873, showing a decrease in favor of the latter year of $7,767 91. When it is considered that tea and cottee were made free July 1, 1872, and that there were, therefore, many millions of packages weighed in 1872 for which there was no correspond- ing expense in 1873, the ingenious characcer 0: this defence will be appreciated, especially as tree tea ana coffee were not forgotten when a decrease of revenue receipts was to be accounted for. Mr. Arthur assumes that in my letter of the 15th he is held responsible by the department for the fall- ing off in the revenue, which, in fact, was caused by the reduction of taxes. No such accusation was made against him, but it is inaisted that while by law taxes were reduced and the labor of his office dimin- ished the expenses increased. p He claims that no new appointments were made witnout the consent of the ent. That is true, but the primary responsibility for this increased expense must fall upon the Collector, whose recom- mendations in matters of detail are usually approved by the department. , DETAILS OF INCREASED EXPENSES. The following table shows the detuils of the in- creases and the several branches of the Custom House in which it occurred :— — 1871.———. No. Em Ex id, pense. —— 1872. No. km Ex- , ployed, _ pense. 9 8 $i Collector's office... wb 58 21 38 18 6 Eighth division 55 Ninth division 49 Tenth division _ Supt.’s bureaa. 31 Weighers, gaug inspectors and miscellaneous 435, Totals ..seeseeeeee | publ SUMMARY. Amount Increase in 6: , 1872 over Li Increase in force and salaries in Total increase of penses in three years. Decreuso 1875 Decrease 1876 over 1875. Total devrease penses in two years. Inerease in force an 1877 over 1876, Decrease in fore 1878 over 187 sees 126 287,874 cn AGAINST THE WEIGHERS, | Mr, Arthur again refers to the charges made against the weighers by the Jay Commission, and says that in common fairness I should not have omitted to state that “the truth of these charges is vigorously denied by the weighers in a letter to me” (him). He further says that after the receipt of the report of the Jay commission, I delayed action for many months, during which I caused various special examinations to be made. It 18 true that the | charges: out in the third report of the Jay com- mission against the weighers at the port of New York were denied by twelve ot the thirteen weighers in a letter addressed to Collector Arthur. It is alxo true that I, subsequently to the report of that commission, caused ‘examination to be made into the ‘charges against these officers. From these examinations I have been convinced that the charges have been substantially sustained. Moro than thirty-five of the weighers who signed the let- ter refered to have, in statements under their own hands, now on file in the department, admitted the taking of irregular fees and perquisites from mer- chants for favors in the returns of weights, and others made evasive statements. Two of the weighers indirvetly state that the receipt of these fees was a custom long established, known and approved by the Collector and Surveyor of the Port. THE SAVINGS ON ‘TARE. In regard to the reforms mentioned by me as hav- ing been instituted by Mr. Merritt, while Surveyor, Mr. Arthur says:— ‘To me and not to the acting Collector should therefore bo aseribed a portion, at least, of the eredit for the saving the Seeretary claims by taking actual ture. On the 18th of June, 1878, Mr. Merritt, the Sur- yeyor, addressed a letter on the subject'of tare to Mr, Arthur, then Collector, from which I extract the following :— The tare so ascertained and certified by the weigher, whether it is more or less than schedule tare, and whether it was or was not asked ‘for by tho inspector, should be a basis of liquidation. June 22, 1878, Mr. Arthnr addressed the Secretary to the same effect. ‘On this letter Mr. Arthur claims for himself the credit of suggesting the reform which I have properly attributed to General Merritt. CHARGES AGAINST THE DEPUTY COLLECTOR. Mr, Arthur attempts to defend his deputy against the charges contained in the report of the Merodith commission. by characterizing them as “stale,” refer- ring to the fact that the transactions occurred ten years ago, and that they were‘at that time, and at sub- sequent times, investigated and found to be wholly untounded. "The evidence in relation to the principal charge, and what is regarded as most con- conclusive and unanswerable, was first brought to the attention of the department by said report. This evidence consists of orders issued by Mr. Lydecker that appeared upon the fraudulent entries and in- voices in his own hand and over his own signature, and is of such a character, when viewed in the light of subsequent developments, as to leaye little room for doubt as to his complicity in the transactions. It iy submitted that the statute of limitations, which may operate as a bar to criminal prosecution and s0 cnable a guilty officer, to escape the punish- ment of the law, can properly be urged for the pur- pose of securi retention in office. As to Mr. Arthur's criticism upon the retention of Liquidating Clerk Evans in office, it is only necessary to say that the only direct evidence implicating hin in the transaction in question is contained in the af- fidavit of an acknowledged accomplice. It has also deen ascertained that his action in the premises was in obedience to the positive command of his official superior. Among the reports to this department to which attention was called by Messrs. Meredith, Bingham ‘and Hinds, in their report of July 17, 1878, as reflect- ing upon tho official conduct of Special Deputy Col- lector Lydecker, is a report of a special agent dated March 13, 1876, in which are described the folowing cases :— First—A firm of theatrical managers in New Yo January, 1875, made two entries ef stage scenery, ting 3,000. These were passed free by Mr. Ly- of trade,” in violation of law. Serond—An actress, Janna 1875, imported silk and velvot dresses, which were seut as samples to the Apprais- er’s office and returned by the Appraiser as of the value of XD and subject to duty at sixt By order of Ne, lecker, in direct violution of dresses were ted toentry tree of dut A triplicate invoice on tile the Custom House shows that they were purchased. and the value given in the invoice is the equivalent uty upon which would amount to $3 May, 1874, two bills of eek | we four f re prosented May by an importer, calling respuctively for four aud thirteen large cases of merchandise, Mr. Lydecker ordered these casos to he sent to the office of the importer, In Junnary, When calied upon to account for these cases, entries made upon what was claimed to be a description and Valuation, of the gouds, and in the absence of an ap- praiser’s return Mr. Lydecker ordered the account closed as entered, Fourth—A dressmakor reported three cases of merchandise in 1873 which were sent by order of said Lydecker directly to her store (falsely deseribing 1¢ as a public store) with- out entry, Six mouths luter said Lydecker requested the appraiser, on an invoice, to ™ i morally In the same report were recited three other cases where importations by this dressmaker were treated with a similar or equally flagrant violation of law. It has since come to the knywledge of the ¢ ment that these cases were selected by the sp agent as samples of a large number of transactions extending over more than two years, where the same facilities for fraud had been extended to the same person by the said Lydecker. PERSONAL ATTENTION TO BUSINESS. Mr. Arthur admits that he did not sometimes reach the office at the hour when by law it is open to business, but intimates that the time after otlice hours that he speut at the Custom House was an offset. His presence after office hours could be of little use to the public. Lam advised by persons en- tirely familiar with the subject that the time of Mr. Arthur when at the Custom House was so often oceu- pied with other than government matters that it was sometimes difficult for a merchant who was dissatistied with the ruling of a subordinate to ob- tain a hearing. It is susceptible of proof | that he habituatly did not arrive there until atter noon, and was, therefore, absent during a period when his attendance was necessary to the transaction of public business, and this was especially so atter the action of the Senate upon the nomination of his successor. ‘Lhe watehful care of a collector at port of such im- portance as New k over the action of his sub- ordinates in their methods of doing business is at ull times imperatively necessary for the protection of the revenue. In @ case which has come to light since the retirement of Mr. Arthur it has been shown that goods upon which the duties amounted to $120,000 were delivered to the parties without payment of any duties to the government, and, in a suit to recover | these duties, it is claimed by the importers that the | unlawfal delivery was due to the negligence, or —— Is Collector's office. bP a Assistant do 8 First division. 107 113 Second division. pt b 6 m1 21 2 4B 460,800 as aa 30,000 6 6 10,800 0 65 TOT BM 56 81,400 Supt.’s bureau.. 30 37 35,520 | Weighers, gaugers, inspectors and miscellaneous.... 444 627,840 00 840,195 Totals..... s..e0. 801 $1,204,000 1,081 $1,563,749 Third division. Fourth division. Fifth division Sixth division. N ‘Tenth division. Supt.’s bureau . Weighers, gaugers, inspectors and miscellaneous... 484 669,085 4226 41,452" Totals....ceccee+ OGL $1,976,008 907 $1,196.088 —— 1877.—--— Collector's office. 18 Aasistaut do. 9 First divisio 10L Second division 15 ‘Lhird division... 37 Fourth division..... 22 Fifth division...... 48 Sixth division 2 Seventh division 5 Kighth division... 75 m6, Ninth division 49 a 81835 ‘Tenth division, Pi -_ - Supt's bureau. at 339,980 Weighers, gaugers, inspectors and miscellancous..., 450 624,200 S71 = 490,700 Totals...peccesree 915 $4,949,074" 780 $1,055,200 AL five something worse, on the part of the customs oflicers under the charge of Mr, Arthur. THE ALLEGED CONVERSATIONS. To the closing portion of the letter of Mr. Arthur, in whch he states alleged conversations with me as to his suspension, I have no desire to make any full reply, | Any statement by either of us as to conversations on public bnsmess is of doubt- ful propriety. In some respects his recollection | s not entirely accura No doubt I was kind nd courteous in communicating to him your p Y to snspend him, and said that no specific charges were made against him, but that his suspen- sion was made because he was not in sympathy with the administration in the conduct of the business of the Custom House. But in all my conversations with Mr. Arthur I have been entirely frank with him in stating that I believed the public service would be promoted by a change; that in the nature of things he could not, with neartiness, bring about Tetorms that would affect so many intimately connected with him, and that the public service would ve pro- | moted by @ firm new Collector who could make the necessary changes In methods and employés free personal friendships or committals, Such was or ot the first conversation I had with him asking his resignation, and it is entirely consistent with the sincere and earnest desire I liad to: bring about a change without an unseemly struggle. It soon became apparent, after January, , from the daily business of the department with the New York Custom House, that anything like harmony or artiness in the administration of the duties of Col- ‘tol mid not be brought about while Mr. Arthar remained in office, anu, therefore, after full trial, Lreeommended his suspension. SUECIAL AGENTS. As to the remarks mi by Mr. Arthur in regard to the use of special agents it must be remembered that there were but twenty of this class of officers in the public service. Formerly the number was fitty- three, During the whole time of my service two or three have been at New York, all of whom were under or- ders to co-operate with the Collector and his subor- dinates in the detection of frauds and irregularities, ‘They transacted their ordinary business. instead of being a matter of reproof should be com- mended, Those employed at New York were among the oldest and ablest in the public ser: | vice, and General Appraiser Meredith, who is | arraigned by Mr. Arthur as having been sent to find fault, is an old and experienced offi highest standing, having been seventeen yee public servic It is tor the Senate to ¢ whether the opinion of Mr, Arthur, carefully stated, | with full advantage of aevess to all the public records, all prevail, or the opinion of the Jay Commis- pported by the reports of the special agents, ‘cers of the department and by the Meredith Commission, together with my well considered opinion, based A the business as it was brought before me officially, and your own personal examina- It is | tion of the different reports submitted to you. Charged as you are with the execution of the laws, it would seen that the most important officers of the customs service ought to be selected 2, the execu- branch of the ov ) Upon Ww! the re NEW YORK HERALD, SATURDAY, FEBRUARY 1, 1879.—-TRIPLE SHEET. si nn OUT III En TE EE aa sibility rests. It will be expected by the public you see thatthese officers act in harmony with your policy in correcting all abuses that are devel- oped, and securing all possible reforms, and if they, in your opinion, fail, that you shall exercise the power given to Foy by the constitution to secure Officers who will do so. Tregret that the pressure of public duties which now demand my constant attention, will not permit me with more fulness and detail to answer the points made by Mr. Arthur, but I can readily fur- nish the Senate with copies of my crrespoudence and documents referred to by either Mr. Arthur or myself which will tend to throw light upon the sub- ject, without an examination of which a clear and impartial opinion cannot be formed. Very respect fully, JOHN SHERMAN, Secretary. ‘The reading of these documents, and of a supple- mental communication enclosing a statement from a person named Farmer, who alleges that he was dis- charged by Collector Arthur because he had testified before the Jay Commission to the existence of cer- tain irregularities in the New York Custom House, consumed an hour or more. SPERCH OF MR, CONKLING, Senator Conkling then took the floor. He said that, although perhaps no other Senator felt so great an interest as himself in the vindication of the gentle- men assailed, he nevertheless did not consider it necessary to usk that any opportunity be given to Messrs. Arthur and Cornell to answer the extraordinary communications which had just been read to the Senate. ‘They contained, | with two exceptions, nothing new. One of the new matters consisted of a series of charges against Deputy Collector Lydecker, and he would proceed to answer them by Mr. Sherman's own statements. He thereupon read to the Senate a letter written by Sen- ator (now Secretary) Sherman in the summer of 1867, expressing entire confidence in Mr. Lydecker. This letter, Mr. Conkling said, was written after these same charges had been brought to Senator Sherman's attention, and after they had been fully investigated and refuted, In regard to the Farmer letter, he’ said General Arthur could readily prove that Farmer's dismissal was not tho result of pique or resentment, but merely an incident of the reduction of the clerical force; but he did not think there was any need of de- laying action on the pending nominations in order to afford an opportunity for the answer to be made, WEAK INVENTION OF THE ENEMY. Mr. Conkling next read to the Senate twenty or twenty-five telegrams received by him from republi- can members of the New York Legislature, in regard to the memorial signed by them asking the United States Senate to confirm the nominations of Messrs, Merritt, Burt and Graham for Collector, Naval Officer and Surveyor of the Port of New York, The senders of the telegrams individually inform Mr. Conkling that they signed the memorial upon the strength of private representations that it was his (Conkling’s) desire to have such a memorial signed and forwarded, as s means of enabling him to withdraw from the contest without discredit, so as some of them phrased it, ‘To let him down easy.” One telegram read to the Senate was from ex-Col- lector Thomas Murph; ating that such a me- morial was in circulation, and that it Mr. Conkling desired he (Murphy) could get more signatures for it. Mr. Conkling said he answered this expressing sur- prise and indignation, and informing Murphy that he had never thought of such a thing. This answer seemed to have called forth the telegrams from members of the Legislature above referred to, Senator Conkling, continuing his remarks, denounced this attempt to mislead his friends in em- phatic language. He said the whole thing was a a trick—not the work of an amateur, nor the result of accident-—but -a well devised, though a nefarious scheme, which he believed: had its origin in this city. He intimated, also, that he possessed positive information that two men started from Washington with instructions to undermine him in this way, and that they had confidentially divulged their secret purpose in New York city. LETTER FROM MR. ARTHUR, Mr. Conkling also read the following letter, ad- @ressed to him by Mr. Arthur: New Yorx, Jan. 27, 1878. Sin—Referring to my letter of the 21st inst., and that part of it which refers to the falling off of the revenue, I desire to add after the words “colluct revenue” as fol- lows In regard to the falling off in the revenue I have omitted to state that one great cause of it arose from the Treasury Department having overruled my decision that the act of June 2, 1872, section 2, making a deduction of ten per cent on all manufactures of cortain specified raw materials did not, under the rule of tariff interpretation, laid down by ‘the Supreme’ Court in Reicho H. Smythe and other; eases, apply to cases whore existing statutes imposed a specific duty on # specific article, though some of the raw materials named composed or entered into its manufacture. persisted in it, though i tisions, to procure & mod Supreme Court, decided nt a Wrong. This act was repealed in Murch, 1875, iy ernment lost many millions of dollars duties by this error. It is stated to me that the official records show that the losses in one year alone—1N74—amounted to 000, and it is believed that this iy below the average for last year: 4 ’ Mr. Conkling closed with an expression of opinion that the Senate should proceed to consider and act upon the pending nominations without further post- ponement, Senator Matthews then offered a resolution pro- viding—First, that the message and accompanying documents should be presented and laid’ on the table and that further consideration of the nominations should be — postponed until next Monday, The ftrst branch of this resolu- tion was agreed to without a division by the Senate, but the proposition fox postponement gave rise to extended discussion. Messrs. Matthews, Thurman and Bayard advocated it, on the ground, that if the communications were worth anything at all they should be examined and read in printed form, as it vas impossible to understand them or compare the charges with the replies or the replies with the re- joinders in any other way. Messrs. Eaton, Davis (of Illinois) and Voornrrs favored immediate action. They argued that the Senate had read the charges aud the replics, and that these, in e@unection with the papers which had boen read in their hearing to-day, iurnisted all the infor- mation requisite. Mr. Earox also expressed the opinion that the charges against Messrs. Arthur ond Cornel! had been conclusively answered, and that the papers read to- day contained absolutely nothing worth reading, Yer Beare briefly opposed postponement, on’ the round that the appropriation bills and other public ess were in pressing need of attention, and that the Senate should economize the short remainder of the session. THE VOTE ON POSTPONEMENT. Avote by yeas and nays was then taken on Mr, Matthews’ resolution and ‘resulted in its adoption— Yeas 35, nays 26 The affirmative votes were cast mostly by demo- crats and the negative votes by republicaus. Messrs. Matthews, Hoar, Dawes, Buraside, Windom, Wadleigh, Mite: and Ferry, however, voted in favor of postponement, and Messrs. Eaton, Baruum, Voorhees, Duyis of ['inois, and McPherson were recorded in the negative. WHA’ TUE VOTE INDICATES This vote does not absolutely foreshadow favorabie action on the nominations, for several Senators who voted for the postponement are definitely known to be opposed to them, but ¢ ‘ivocates of confirma- tion have been greatly encouraged by it, and to-vight confidently expect success in the final vote on them on Monday. A NOTICE FROM THE BRITISH GOVERNMENT— MEASURES FOR PREVENTION. WasurncTox, Jan, 31, 1879, In accordance with telegraphic instructions from the Marquis of Salisbury, Sir Edward Thornton, the British Minister in Washington, has informed the Department of State that plenro-paeumonia having | been detected in a cargo of cattle on the steam- ship Ontario, from Portland, Her Majesty's govern- ment are considering whether they can retain the United States under the exemption of part 4 of the fifth schedule of the a it. MEASU} The Senate © tion which will en tare to give mot attention to the subject of diseases and make scientific investigation, with a view to devis ing measures for their prevention or repression, The comiittee will give the subject | further consideration at their next meeting. THE “AMERICAN” CATTLE DISEASE, (From the Mouteal Gazette, Jan. 30.) The order prohibiting the importation of American cattle into England has created consternation among the cattie exporting firms of this city. They have ixsued telegrapiic instructions to all their agents to at once stop buying, and have given orders to dispose of the stock now on hand. The cattle which were seized were part of a cargo of 285 head shipped from Portland by the Dominion steamer Onta- rio, by Messrs. Crawford & Co., of this city, and com- prised both American and Canadian beasts. During the voyage ninety head were lost overboard and pleuro-pneumonia broke out among the remainder, but whether they were American or Canadian cattle which were affected is not known. It is also doubt- ful whether the prohibition order affects the Canadian trade, this will be known in a few days, when a cargo of 170 head, shipped by @ ‘Toronto export firm from Boston, by the steamer State of Alabama, will arrive at’ Liverpool. Veterinary thorities state positivély that pleuro-pneumonia and rinderpest are not the same disease, ‘The latter is indigenous to Russia, and has never appeared on this continent, and no case of pneumonia is known at present among Canadian cattle. As far as ascer- tained, the disease which has caused the English overnment to place this cmbargo ‘on American cat- le is confined to a circle round Washington, and the exporters here have petitioned the Dominion gov- ernment to take immediate steps in the matter and SS their proper light to the home 8 WASHINGTON. FROM OUR REGULAR CORRESPONDENT, Wasninatos, Jan. 31, 1879. THE HUNTON-ALEXANDER DIFFICULTY BEFORE THE GRAND JURY OF THE DISTRICT—TESTI+ MONY OF MR. ALEXANDER REGARDING THE ALLEGED CHALLENGE. Mr. Columbus Alexander appeared to-day, by invi- tation, before the Grand Jury of the District and gave testimony relative to the charge that General Eppa Hunton, member of Congress from the Eighth Vir- ginia district, sent him a challenge on the 16th of July last to engage in mortal combat. The announcement that Mr. Alexander would be Present to-day caused a full attendance of the jurors, and throughout the taking of Mr. Alexander’r testimony the strictest attention was given. Mr. Alexander began by giving the history of the unpleasantness between himself and the General, which grew out of a statement alleged to have been made by General Hunton that Mr. Alexander was fa- vorable to the passage by Congress of the act “to provide for the revision and correction of as sessments for special improvements in the District of Columbia,” He next read and submitted all the correspondence between him- self and the General and narrated the part Captain Sheppard, General Hunton’s friond, took im bearing some of the letters from the General to Mr Alexander. He dwelt particularly upon the alleged letter of challenge, as follows :— ALEXANDRIA, Va., July 16, 1878, COLUMBUS ALEXANDER, Esq. :— Sir—I addressed you a letter giving you an ope portunity, of which’ you should have availed youre self, to correct an error into which I supposed you had fallen. Instead of doit this Jou have replied ‘offensively through the press and been guilty of such allusions to my friend, Captain Sheppard, as justify the apprehension that you would avail yourself of the police of the District to subject any triend of mine to arrest under certain circumstances. I am thus constrained to resort to the mail as tho only safe method of communicating with you. Relying on your declaration in your sece ond card that you aro a Vitginian, I ask that you will indicate some place beyond the reach of the District police, where a demand for the reparation whieh Vir- ginians accord in such eases can be made upon you, ‘To be sure that you receive this I send it as a regis- tered letter. Ani answer addressed to me at this place will reach me. Your obedient servant, EPPA HUNTON. He also placed in evidence a card from Captain Shepperd, expressing the Captain's regrets that he had not received an answer to the above letter, and informing Mr. Alexander tiiat he (Sheppard) could be found at the St. Mark Hotel, in this city, and the poster issued by General Hunton and circulated in this city and Alexandria, in which the General ad- mitted that he had sent Mr. Alexander a challenge, and stated that he sent the challenge as a registered letter to prevent his friend Sheppard from being placed in a position liable to send him to the Peni- tentiary, and that he (Hunton) took all responsibilie ties on himself. On the conclusion of the reading of the corres spondence, &c., Mr. Wilson, the foreman of the jury, asked Mr. Alexander if the law of the Revised Statutes relative to sending or accepting a challenge applied to this District and to this case. Mr. Alexander re- plied that he was satisfied that it did. A discussion followed, and Mr. Alexander submitted an article from the Hrratp of December 31, last, containing the law on the subject. This rather surprised the jurymen, and some of them remarked that they had never read, tho law before. The foreman took charge of the case and the papers belonging to it, and at his request Mr. Alex- ander submitted the following names of witnesses for whom subpoenas will be issued this evening:— Captain J. M. Stewart, postmaster House of Repre- sentatives, who indorsed the registered letter con taining the challenge; F. E. Sheppard, the General's friend; F.'E. Alexander, who obtained the registered letter from the Post Office, and J. F. Dyer, who saw Hunton’s posters circulated in the hotels here. WORK ON PUBLIC BUILDINGS—MR. MULLER'S RESOLUTION TO PROVIDE FOR A BETTER SYS- TEM. The joint resolution introduced by Mr. Maller, of New York, and referred to the Committee on Educa. tion and Labor, asking the President to appoint a board to examine into and report on # better systom of doing work on our public buildings, wily be favorably reported by that committee when it is called. ‘The resolution proposes that the President convene a board come posed of the Commissioner of Public Buildings and Grounds, the Architect of the Capitol, the Super. vising Architect of the Treasury and the Engineer Commissioner of the District of Columbia, to make thorough examination of the subject of doing work on government public buildings and report whether a more equitable system could not be established by doing the labor and mechanical work by what is known as “day’s work.” Numerous complaints having, been made against the present system of doing work on public buildings and fortifications by contract, the committee believe that the government would be benefited if the works were carried on di- rectly under the supervision of government officials, GENERAL WASHINGTON DESPATCHES, Wasnixcton, Jan, 31, 1879, THE MEXICAN INDEMNITY—ANOTHER INSTAIe MENT PAID. The third instalment of the Mexican indemnity— $300,000—was paid to the State Department to-day, Measures will at once be taken to distribute it pro rata (as with the former two payments) among the claimants, THE NAVAL INVESTIGATION. The report prepared by Chairman Whitthorne, of the House Naval Committee, in the case of Ex-Secte- tary Robeson will be laid before the full committee at its meeting on Tuesday next. PROFESSOR LOCKYER'S THEORY. Wasuincton, Jan. 31, 1879, Professor Simon Newcomb, of the Naval Observa tory, is among the many scientific men of this coun- try whose attention has been suddenly challenged by the recent revelations of the spectroscope, from which Professor J. Norman Lockyer, the distin- guished English astronomer, claims to have obtained evidence that the bright lines of the solar chromo- ephere are chiefly due to the not yet isolated bases of fourteen so-called elements, and that the solar phenomena in their totality are, in all proba Pity, due to dissociation. at the phostospheria i‘and association at higher levels. Professor Newcomb is slow to accept speculation, but he could see nothing intrinsically improbable in Professor Lockyer's view. It could not be accepted as yet witho more « on which it rests spectroscopists. Without this further evidence it must be classed with that great collection of theoria} which may be true, but which no one has succeedet | in proving. A final judgment must be the work @| chemists rather than of astronomers. NAVAL INTELLIGENCE. [BY TELEGKAPH TO THE HERALD. ] Porrsmovrn, Va., Jan, 31, 1879. Tho United States practice ship Constellation, Commander Merrill commanding, arrived at the Navy Yard to-night from Annapolis, in tow of the tug Mayflower. The officers and crew were at once transferred to the Mayflower and returned to An- napolis, The Constellation is to be red and ree fitted for the summer cruise of the midshipmen. THE POWHATAN, The United States steamer Powhatan, flagship of Rear Admiral Robert H. Wyman, commanding the North Atlantic squadron, received sailing orders to- day, and leaves at high water to-morrow for the following cruise :—San Juan, Porto Rico, St. Thomas, Santa Cruz, Santiago de Cuba, Havana, Key Wes' Port Royal, 8. C., returning to Norfoik about Apri 1, Admiral Wyman expects the Plymonth, Vandalia and Marion to meet him at Key West, Fla, the latter part of March. Wasnixetox, Jan, 31, 1879, It is wnderstood the findings of the naval court of inquiry, which convened at New Orleans to try Lieutenant Commander Kolls, have been forwarded to Washington and are now being reviewed by the Secretary of the Navy preparatory to being’ pre sented to the President for his action. The verdiet of the court, it is said, recommends Kells’ dismissal from the service A Board ot Naval Constructors, of which Naval Constfuctor P. Hichboru, United States is senior member, has been ordered by the Navy De- partment to, at Chester, Pa.,on February 1, to make mand report on the work of the United States fron-clad Miantonomah nearly come plotod at the works of Messrs. Roach & Son, \