there; I was on one side of politics, and they were on the other and the last year I was alone; the appointments were put upon me just as they saw fit. I had no voice except to vote, "No," when they made the appointments.

Q. What I desire to know is if you know of any favoritisms that were shown to certain contractors, or anything of that kind, or anything that would be of service to the State? A. No, sir; I don't know that I do; I can only say that where everything was equal, and I could help my political friends, I did it, just as others would do.

Q. Are you in poor health? A. Yes, sir.

Q. You came here to-day in company with your physician? A.: Yes, sir.

Q. You did not feel able to come alone? A. That is the fact.

Q. If there are any facts that would give light either in reference to your own conduct or that of any other officials of the canals, I want you to state it? A. Well, I don't know that there is anything: that I could state now. It is two years last April since I have been away from home. The balance of the year from 1865 to 1866, while I was in office, I did not attend at all, I was not able, and I have not left home since until to-day.

Richard T. Butler, called as a witness, and being duly sworn, testified:

By Mr. MITCHELL.

Q. Where do you reside? A. Schenectady.

Q. What is your business? A. I am a blacksmith by trade; I am in the carriage making business at present.

Q. Did you make a carriage that Commissioner Skinner had? A. We made a carriage and sent it to Commissioner Skinner.

Q. Who ordered it? A. Well, sir, I do not know; I think, however, it was Mr. Robert C. Dorn; the order was given to my partner; it was not given to me.

Q. Who paid for it? A. Well, if I remember right, Mr. Dorn paid for it.

Q. How much? A. $750.

Q, When was that order left? A. I could not tell exactly; it was some where about the middle of May, 1866, I should think.

Q. When was it finished? A. If I remember right, it was shipped about the 25th of June, 1866.

Q. Did you make it as quick as that? Q. It was partially made before the order was given; it was not built entirely to order; it was in process of construction.

Q. Is that the first order you had for it? A. Yes, sir.

Q. Who were you building it for? A. We were not building it for anybody in particular; building it for sale?

Q. Are you right about 1866? A. I think I am; it is possible I may be mistaken just one year, but my impression is that it was 1866.

The Committee adjourned.

i

CONCLUSIONS

OF THE

SENATE COMMITTEE,

IN RELATION TO THE

CANAL FRAUDS.

To the Honorable the Constitutional Convention of the State of New York:

The undersigned, the Senate committee charged with the duty of inquiring into the management of the canals of this State and the departments, &c., connected therewith, respectfully furnish to the Convention, in compliance with your resolution, a copy of which is appended, the evidence taken before the Committee since the date. of our former report, together with the following conclusions:

1st. The Committee state that the evidence taken before them, clearly establishes that frauds of great and alarming magnitude have, in various ways, been committed against the State in the management of its canals.

2d. That the present system of keeping the canals in repair by contract, has been and still is one of the most prolific sources of fraud, and the Committee believe that said system ought to be speedily changed or abandoned.

3d. That under the said contract system desperate combinations and conspiracies have been formed and successfully carried through, whereby large and important contracts have been secured at the con

tractors' own prices. Of this character was the important letting f December 28, 1866, at Albany, and it is the opinion of this Commit tee that all contracts made and entered into by the State, based upon said letting, are fraudulent and void, and that both the interest and honor of the State demand the immediate and unqualified rescinding of said contracts.

4th. That under the aforesaid system very large sums of money have been fraudulently taken from the State, yet the canals have not been kept in proper repair but have been gradually passing into a state of dilapidation, and large expenditures will be soon required to put them in proper condition.

5th. The evidence heretofore and herewith submitted, discloses fully the many wicked and fraudulent devices and schemes by which the treasury of the State has been plundered, and shows clearly that the most guarded enactments should be resorted to to secure, in the future, an honest, efficient and economical administration of these important and invaluable public works.

6th. It is also the opinion of this Committee that all legal means should be resorted to by the State to redress the wrongs so boldly perpetrated against its vital interests.

All of which is respectfully submitted.

Dated August 31st, 1867.

CHARLES STANFORD,
JAMES GIBSON,

HENRY C. MURPHY.