New York Tribune

LOCAL MISCELLANY
GRAND JURY INQUIRIES.
THE CHARGES AGAINST THE COMMISSIONERS OF CHARITIES AND CORRECTION - WITNESSES FOR THE ACCUSED - RUMORS THAT AN EFFORT WILL BE MADE TO HAVE JOHN KELLY INDICTED.

The Grand Jury continue to investigate the charges against two of the Commissioners of Charities and Correction, and yesterday heard witnesses for the accused, although Grand Jury proceedings are generally supposed to be ex parte. Two witnesses called in behalf of the Commissioners were William F. Havemeyer, jr., son of the Mayor, and Hector C. Armstrong, the Mayor's son-in-law. Both have had dealings with the Board, and it is supposed that their testimony touched upon these transactions.

It is not known that the examination of Commissioner Howe has been concluded. Among other things which Mr. Howe swore to was the correctness of his report condemning the Commissioners for their way of doing business, and claiming that it was in violation of law. Mr. Howe also stated that one of the Commissioners, Mr. Laimbeer, told him that he had personally purchased the 3,000 barrels of flour spoken of in Mr. Howe's charges, and that he had done so without advertisement, in clear violation of the ninety-first section of the charter. He stated also that Mr. Laimbeer had said to him that when he became Commissioner of Charities and Correction he found a "ring" in the purchasing bureau of the Department in which Tweed and Jarvis Lord were interested, and he was determined to break it up, and he therefore purchased the flour. Mr. Howe also stated that the purchase of dry goods for the Commission by Louis Sternbach was irregular and illegal. Mr. Sternbach bought the goods of merchants at current market rates, and turned them over to the Commissioners at 33 1/3 per cent profit. He represented that he was buying for shipment to California. Delivery to him was in each case made on specific days on the sidewalk at No. 36 Church-st., and thence the goods were transferred to the storerooms of the Commissioners.

A report was current yesterday, but generally discredited, to the effect that Hugh Gardner and the Mayor were endeavoring to have John Kelly indicted for the alleged offenses committed when Sheriff. The statute of limitations covers the "offenses," but it was said that for partisan as well as personal purposes Mr. Kelly would be indicted, and forced to plead the statute. This would be looked upon as a confession of judgment, and injure the Democratic City and State tickets, with the construction of which Mr. Kelly has so much to do.

While this story was generally disbelieved, it was positively ascertained that Mr. Kelly is already preparing to sue Mayor Havemeyer. His former Under Sheriff, John T. Cuming, is preparing for the use of Mr. Kelly's attorneys full disproof of the Mayor's allegations, showing Mr. Kelly's accounts to be correct, and, as he claims, that instead of overcharges, many fees of the Sheriff were not collected.

District-Attorney Phelps was not at his office yesterday, but his subordinates professed to know nothing about any attempt to indict Mr. Kelly. When asked if he had been summoned before the Grand Jury to testify concerning the payment of Mr. Kelly's accounts as Sheriff, Controller Green said that he had not, but that if such a summons were served upon him he would obey it.

John Kelly returned to this City late last evening, having passed the time since the adjournment of the Syracuse Convention with his sister, who lives in Oswego County. Mr. Kelly was called upon at his residence, No. 315 Lexington-ave., by a Tribune reporter. He refused to converse upon the subject of Mayor Havemeyer's attack, as he had held no consultation with his lawyers. Mr. Kelly said that he was preparing a reply to Mr. Waterbury's charges, and it would be given to the public as soon as possible.

Col. George Wingate, who is one of Mr. Kelly's attorneys, when questioned as to the course Mr. Kelly proposed to pursue in relation to Mayor Havemeyer's charge, said that he had had no communication with Mr. Kelly during his absence from the city, and did not feel at liberty to say anything on the subject. A rumor having been circulated yesterday that ex-Police Commissioner Hugh Gardner was endeavoring to procure an indictment against Mr. Kelly, inquiries were made to ascertain if there was any truth in the report. Col. Wingate knew nothing in relation to the matter, and thought that such an endeavor on Mr. Gardner's part would be very unwise. Under-Sheriff Cuming, who is Mr. Kelly's confidential secretary, received the rumor with a look of incredulous surprise, and said that although Mr. Gardner might desire to assist Mayor Havemeyer, and although he might think it would be very proper for Mr. Gardner to desire to do so, yet it would be very impolitic for him to go to the length of having Mr. Kelly indicted. County Clerk Walsh had heard nothing of the rumor. His opinion was that Nelson J. Waterbury was the sole instigator of the Mayor's charges against Mr. Kelly, and that Mayor Havemeyer readily acted upon the suggestion. Mr. Walsh was a member of the Democratic Union party at the time when Mr. Waterbury was leader of that party, and he declared that that gentleman's ambition was "rule or ruin." The origin of Mr. Waterbury's opposition to Mr. Kelly, Mr. Walsh stated, was the former's unsuccessful attempt to obtain possession of the Tammany Society at the last election. Mr. Walsh stated that even if the charges were based upon facts, Mr. Waterbury had stultified himself, for at the time when he alleges these frauds were committed he was District-Attorney and should have taken cognizance of them.