35TH CONGRESS, I HOUSE OF REPRESENTATIVES. { REPORT. 2d Session. f o. 184 NAVAL CONTRACTS AND EXPENDITURES. [To accompany Bill H. R. No. 884.] FEBRUARY 24, 1859.-.The further consideration postponed until Monday next, and ordered to be printed. MARCH 2, 1859.-Resolved, That five thousand extra copies of the majority and minority reports of the Select Committee on Naval Contracts and Naval Expenditures, together with the evidence, be printed for the use of the members of the House of Representatives. Mr. BococG, from the Select Committee on Naval Contracts and Expenditures, made the following REPORT. Tze Select Committee on the subject of contracts and expenditures in Navy Department, ask leave to submit the following report The resolution under which your committee was appointed was moved by a member from the State of Ohio, (AMr. Sherman,) and unanimously adopted by the House of Representatives, on the 18th of January last, and, together with the preamble, is as follows: G Whereas D. B. Alien, a citizen of the State of New York, specifically charges that certain officers in the Navy Department, in awarding contracts fbr the construction of vessels of war of the United States, have been guilty of partiality, and of violation of law and their public duty: and whereas grave charges have been made that money appropriated for navy yards and for the repair of vessels of the United States has been expended for partisan purposes, and not for the purposes prescribed by law: Therefore,' Resolved, That a committee of five members be appointed to examine, 1. Into the specifications and bids for, and the terms of, the contract for the work and labor done, or materials furnished for the vessels of the United States, constructed, or in the process of construction or repair by the United States, since the 4th day of Mlarch, 1857, and the mode and manner of awarding said contracts, and the inducements and recommendations influencing said awards. 2. Into the mode and manner, and the purpose, in which the money appropriated for the navy and dock-yards, and for the repair and increase of vessels, has been expended. That said committee have power to send for persons and papers, and have leave to report by bill or otherwise." It will be seen that one definite subject of inquiry was presented to the committee, viz: the specifications, bids, and contracts for vessels of the United States, constructed, or in the process of construction or repair, by the United States, since the 4th day of March, 1857; the mode and manner of awarding said contracts, and the inducements 2 NAVAL CONTRACTS AND EXPENDITURES. and recommendations influencing said awards. The purpose of such inquiry was to ascertain whether certain officers of the navy had been guilty of partiality and a violation of law and their public duty," as charged against them. The construction and repair of the vessels themselves, of the navy, since March, 1857, has been done by the government in its own navy yards, and not by contract; with the solitary exception of the Brooklyn, which has been constructed by Jacob A. Westervelt, under a contract with the government made in 1857. That contract appearing to be entirely fair and nothing to the contrary being alleged, so far as the vessel itself is concerned, on any side, the committee directed its attention particularly to the contracts for engines and steam machinery for vessels of the navy, made since the 4th of March, 1857. The second branch of the resolution instructs the committee to inquire " into the mode and manner and the purpose in and for which the money appropriated for the navy and dock-yards, and for the repair and increase of vessels has been expended." And the object designated in the preamble is to ascertain whether said money "has been expended for partisan purposes, and not for the purposes prescribed by law." Inasmuch as this branch of the inquiry embraces in its scope all appropriations for navy yards and for increase and repair of vessels without regard to time, it was clearly impracticable for the committee during the remainder of the session literally to carry it out. It was in effect limited by the committee to such items of appropriation in that connexion as were made the subject of complaint. Wherever either zeal for the public good, or disappointed selfinterest, or party intolerance, or love of fault finding or any other motive indicated that wrong could be found within the scope prescribed for the investigation, to that point the attention of the committee was directed. The subjects which were particularly investigated under this branch of the resolution, were: 1. The management of the Brooklyn and Philadelphia navy yards. 2. The purchase of anthracite coal for the navy, and, 3. The contracts for live-oak for the navy, made in 1857 and 1858. The leading facts elicited on all these points so far as they are embraced within the prescribed scope of our inquiry will be briefly stated under the heads respectively to which they belong, and for convenience of arrangement will precede the statement of facts in relation to the contracts for steam machinery. I. THE BROOKLYN OR NEW YORK NAVY YARD. The large amount of money annually appropriated for the navy, though that branch of the service continues so limited in extent and power has justly excited interest and inquiry on the part of the people. The following statement will show the extent of the increase in our expenditures for naval purposes in the last quarter of a century: NAVAL CONTRACTS AND EXPENDITURES. 3 No. of Vessels. No. of Guns. Annual Cost. 1834.........5.................. 53 1,982 $3,956,370 1846...................................... 77 2,345 7,449,703 1858.........................................79 2,244 13,262,561 Much of this increase of expenditure springs from the higher price of material, provisions, clothing, &c., now than in 1835 or even in 1846. Much also arises from the substitution of steamers for sail vessels in the navy of the United States. In Great Britain the cost of the navy in 1853-'54, when its force of men was 39,407, amounted to ~6,285,493 sterling; while in 1857-'58, when its force of men was only 39,000, it cost ~8,109,168 sterling, under all the exertions that were made after the Russian war to reduce expenditures to the lowest practicable point. This increase of expense is attributed in that country to the substitution of steam for sail vessels. But while the increase of expenditure in our naval service is thus accounted for in part, it has become a matter of general belief that there is much of waste in our navy yards. For the number of vessels annually constructed and repaired in our service our appropriations for yards and docks, and for construction, equipment, and repair, seem, to be disproportionately large. To show how our appropriations for these purposes have increased in the last twelve years, the following statement will suffice: 1846. 1858. Yards and docks........................... $585,549 $3,157,522 Construction, equipment, and repair...... 1,838,479 3,129,427 Total.................................... 2,424,028 6,286,949 The investigation made in this case explains some of the causes of waste in the navy yards. Your committee believe that persons in their dealings with the government generally display more of voracity and less of scrupulous integrity than is usual in transactions with individuals. Supplies for government, whether obtained by contract or in open market, are made the occasion for fraud; the property of the government is not preserved with due care; its responsible superintendents prove unfaithful, and their subordinates lack the zeal which private interest dictates, and the fidelity which private scrutiny exacts. These principles, applicable more or less to all departments of government work, are shown by the testimony to be especially applicable to the Brooklyn navy yard. It is a feature of the times, and to some extent an incident to our system of government, that offices and appointments have come to be employed very generally, and more or less by all parties, as rewards for partisan service. Not only does the dominant party give the high and responsible places of State into the hands of party friends, but the subordinate and merely ministerial places, such as those of clerk', postmaster, mail agent, messenger, doorkeeper, and day laborer, are made to subserve the purposes of party advantage. It is natural and 4 NAVAL CONTRACTS AND EXPENDITURES. not improper that those who have themselves obtained office by party favor should prefer to bestow the patronage of that office upon persons who have been their friends and supporters, rather than upon those who opposed them; and in regard to qualifications, all leading parties have competent men in their ranks. When the appointing power, in looking around for competent men, is left merely to exercise its natural preference for friends over opponents, all is well. But when party relations and party services are made to constitute a controlling claim upon office, then the strongest partisan has the strongest claim. And as in party times the success of the party often assumes greater importance than good government, so party claims, in bestowing office, come to receive more consideration and influence than character or qualification. Offices, indeed, cease to be viewed practically as positions of trust, created and maintained because their duties are essential to the public good. They come to be regarded as places of emolument whose salaries are essential to party welfare, and to be distributed with that view. If, as has been said, such is the tendency of the present time and with all parties, no one party is altogether blameable therefor. Whenever, in a densely settled community, party strength is nearly equally divided and party ascendancy often changes, there, of course, this spirit becomes imbued with a peculiarly mercenary tinge. Want presses, victory leads to place. The emolument being the object which was sought, engrosses attention; and while officials have but little thought except as to the means of holding their places, so those who want office have no care except to gain it. Thus principle and duty are forgotten in the angry conflict of the ins and outs. If we have correctly described the tendency of things at the present day, it will not be regarded with surprise that this spirit prevails strongly in the commercial emporium of the nation, and has found its intensest development in the Brooklyn navy yard. The fact that appointments in the navy yard have for many years past been bestowed upon party grounds is distinctly proven. The IHon. John IKelly, recently a popular member of the House of Bepresentatives, and now holding an important office in the city of New York, upon examination before the committee made the following statement: Ic Question. Have you known what has been the management of the yard under all parties? " Answer. Yes, sir; when the whigs formerly had the yard they would, of course, turn out the democrats, every man of them; they would not permit them to work there; and as soon as the democrats got into power again they would turn out the whigs, and so it has been:in all the offices in New York, post office, custom-house, &c., and so it is to-day in the appointment of the police; the republicans appoint all republicans; it is very seldom that a democrat can get a, place; if he does it is through some extraordinary influence." And the Hon. William B. Maclay, at present a member of the House of Representatives, from New York city, a gentleman of the highest integrity, and a politician of experience and influence, has deposed before the Committee to the same effect. NAVAL CONTRACTS AND EXPENDITURES. 5 The following extract is taken from his testimony: "Question. How long have you been acquainted with the managem.ent of the yard? Answer. Since 1842. " Question. What change, if any, has taken place in the meantime in the mode of making appointments, &c.? Answer. I do not think there has been any change. Question. H-ow long have appointments been made there upon political recommendations? a Answer. I cannot speak of it previous to the date I mentioned; at that time, 1842, or 1843, Mr. Henshaw was Secretary of the Navy, I was representative in Congress; upon one occasion there were a great many applications for the place of masters; the Secretary finally concluded that he would make the appointments upon the recommendation of the then members of Congress from Brooklyn, who were Henry C. Murphy, and myself; he said if we would look carefully over the matter, and write a joint letter making recommendations, he would make the appointments. Mr. Murphy and I, thereupon very carefully selected some ten or twelve masters, who remained in office during the remainder of the administration of Mr. Tyler, and the whole of MIr. Polk's. They were removed after the incoming of the succeeding administration, that of Mr. Fillmore. " Question. Do you know whether appointments were made upon political grounds during the administration of Mr. Fillmore? "Answer. Yes, sir; they were made on that ground." Where appointments are made upon party grounds it is a necessary consequence, especially at points remote from the appointing power, that the wishes and. recommendations of leading politicians should be considered. Everywhere the recommendations of members of Congress are solicited by those seeking executive appointments. So it has been in the past; so, probably, it will be in the future. When the present administration came into power, in consequence of the fact that, under the last administration, many of the congressional districts had been represented by political opponents, the patronage in the Brooklyn navy yard had been concentrated mainly in a few districts. Now, all the districts of the city, and of the country immediately adjacent thereto, were, for the first time in years, under representation friendly to the administration. Each member considered himself entitled to favor, and much of contention arose between themselves, and between them and the officers of the yard. Under these circumstances it was represented to the Secretary of the Navy that it would be agreeable to them, and would save trouble to him, if he would adopt the principle of an equal partition of the patronage among the districts, as far as practicable. And in order to do this, it was suggested that it would be well, if practicable, to allow a master workman to each district.-(See letter of Hon0 H. F. Clark to Secretary Toucey, dated April, 1857.)-To this arrangement the Secretary assented. It does not appear that an exactly equal partition was ever attained or attempted. The master painter only came 6 NAVAL CONTRACTS AND EXPENDITURES. from Mr. Searing's district, and, for a long time, the master caulker alone from 3Mr. Cochrane's, while some of the other districts had three. And, in regard to the employes under the masters, the distribution has remained until this day very unequal. It is stated in the testimony that the number from the district in which the yard is located, now represented by the Hon. George Taylor, has remained about twice as large as from other districts. The arrangement appears to have contemplated such an approach to equalization as might conveniently be made in regulating the dismissals and the new appointments. If appointments in the yard are to be made on political grounds, it would be difficult to resist the conclusion that the districts are all entitled to a fair share of the patronage. The evils and abuses in the yard appeared however to grow greater. How far this has grown out of this principle of partition, and how far out of other causes, it might be difficult to determine. It should be borne in mind that during the year 1857, a crisis of commercial and pecuniary distress fell upon the country, which, in the city of New York, threw a great many persons out of employment, and thus increased the clamor for government work. It is also true that in 1857 and 1858, the government had need of a larger number of men in the navy yards than perhaps ever before, and of a larger number of master workmen also. From whatever causes it has sprung your committee are satisfied from the testimony that great abuses have been, and are, practiced in the yard. Where so many men are gathered together in government employ, abuses are to some extent unavoidable. But the system of appointing and retaining men in the yard upon political influence works great evil. Men have been appointed without due regard to their qualifications and retained sometimes after they had shown themselves unworthy. They learned to rely in part upon a strong friend to retain them, instead of striving to entrench themselves behind meritorious services. This state of things has shown its natural results in producing insubordination, idleness, and a disregard of obligation and duty in general. The testimony upon which your committee have come to this conclusion, is mainly the testimony of Captain Rootes, who was for months the executive officer, and frequently during that time the acting commandant in the yard; the confessions of the master workmen themselves, and the letters and testimony of the members of Congress. The complaints of displaced and disappointed men who discredit themselves by saying that they knew of these abuses while employed in the yard, but never gave information about them till they were dismissed, should, we think, be received with allowance. Wherever their stories have been thoroughly investigated they have generally been shown to be either wholly or in great part untrue. A man named Berry, who was displaced from the position of master painter, alleges that the Hon. John Kelly became irritated with NAVAL CONTRACTS AND EXPENDITURES. 7 film and had him displaced because he would not keep in office men who he informed Mr. Kelly were drunkards and entirely incapable of a proper discharge of duty. Mr. Kelly, on the contrary, denies the statement, alleging that he never asked to have any man retained after being informed of his incompetency; and says, that the cause of difference with Berry, was that the latter used towards him coarse and insulting language. It turns out, however, that Berry was not dismissed till some three months or more after his difference with Mr. Kelly. Another man tells of a place being bought by one Mr. Teller of the master painter (Turner) with a present of five gallons of whiskey. When examined, Teller and Turner concur in a representation of the matter so utterly unlike that given by the informant as to make it, in all its essentials, an act of slander. Yet another states that he was assessed twenty dollars for political purposes upon his clerkship in the custom-house at New York, and refused to pay it; and when asked, "What was the result?" answers, I was removed; from what cause I cannot tell." He attempts to convey the impression distinctly that he was removed for this refusal, and upon examination it is found that his assessment certificate is dated 1856, and his removal took place on the 7th of August, 1858. Such charges are entitled to very little weight. Commander Rootes says: " There were a large number of men who were very insubordinate." " In my opinion theft was common in the yard." I think that a short time before I left the New York navy yard, the foreman under lr. Cohen made a charge against Mr. Cohen and some one else in the yard, that they were in the habit of letting men go out of the yard and still receive their wages. I have no doubt in my own mind that it was done." "A short time before I left the yard the men got to knocking off work twenty or thirty minutes before the bell-ring in the evening," &c. When asked to what these abuses were owing, Commander Rootes answered: " From the fact that they think members of Congress pat them there and can keep them there, in defiance of the officers of the yard." Lieutenant Barnett says, when asked what abuses passed under his observation in the New York navy yard: " I think there is one that exists in relation to taking in laborers. It should be particularly the province of the officers to select these men. They are, many of them, physically incapable. In one instance, in dismasting the St. Louis, I could scarcely get the masts out of her. I could not get the men to work; in fact, they were not strong enough. If they had been sailors I could have done well enough, but these were men who had been, apparently, broken down by whiskey, and besides that they were oldvery old-so that they were unable to perform the labor required of them. If I would set them to whitewashing, I had to watch them to see that they did not stop. I reported this thing to Captain Rootes, but he said he had no authority to discharge them and take in better men, although I believe he took it upon himself to do it pretty violently upon one or two occasions, when he got angry and turned them out of the yard by neck and heels." 8 NAVAL CONTRACTS AND EXPENDITURES. Merrifield and Turner, who are still master workmen in the yard, and who testify under no bias, state that they often kept incompetent men under them from fear of giving offence to members of Congress; and the letters of these gentlemen published with the evidence will show how fiercely some of them wielded the rod of terror. But it is due to these gentlemen to say, that each of them who was questioned denied that he ever desired the retention of an incompetent man, and all agreed that the duties imposed upon them by the necessity of superintending this division of patronage was very irksome and annoying. They did it because the system imposed it upon them, but would have been glad to be relieved. They recommended men, from the nature of the case, without knowing much about their qualifications, and when these men were removed they were apt to attribute it to some other cause than incompetency. It is very probable that the system of appointing men upon the recommendation of members of Congress tends to the retention of too many men in the yard, especially about the period of elections; and this may have been done to some small extent last fall; but the proof is not decisive on that point. The officers testify that during the last fall there were both at Brooklyn and Philadelphia more men than were absolutely necessary, but they say that those men were usefully employed. Mr. Crabbe, the clerk of the Philadelphia yard, testifies that at that place the number of men was greater after the election than before. The official statement of the number of men at the different yards does not sustain the allegation that the yards were stuffed with a view to the election. In New York the greatest number of men in the yard coincided with the time of the State and congressional election. In Philadelphia the election occurred during the first half of October, while the greatest number of men were employed there in the latter part of that month. It so happens that the greatest number of men in other yards, viz, in Portsmouth, Boston, Washington, Norfolk, and Pensacola, were employed also in the months of September, October, and November, 1858, about the same time as in New York and Philadelphia. But in none of these States was there any election in the fall of 1858, except perhaps in Florida. It will not be contended that the yards were stuffed in New Hampshire, Massachusetts, and Virginia, to affect the elections in Pennsylvania and New York. The table to which I have alluded was furnished to the House of Representatives in answer to a call from that body, and is hereto annexed.-(See page 54.) It appears from the testimony that there was, at all the eastern yards, in the fall of 1858, an unprecedented amount of work in progress, and that as that was completed, the number of men was diminished. Commander Rootes speaks of the large number of men necessary for fitting oiut the Niagara and the Paraguay expedition, and sailing master Brady follows up with this statement: " Question. How does the amount of work going on now compare with the amount that was being done in November last? NAVAL CONTRACTS AND EXPENDITURES. 9' Answer. I think we are doing a similar amount of work at the present time, only we are not quite so hurried as we were then. At that time we were hurrying off this Paraguay expedition. As soon as we could possibly dispense with the services of such a large number of laborers without inconvenience to the public service, they were discharged. "Question. When was the first dismissal of the men made? " Answer. I cannot say exactly. I think it was made sometime after I got there; I think about the first of the ensuing month, the first of December, and more dismissed on the 15th of December. But the testimony of Mr. Lenthall makes a more full and satisfactory explanation in relation to the work: " Question, State what work has been done in your department in the navy yards, according to the present means of stating, during the past year, in the summer and fall more especially? "Answer. At Portsmouth they have been working upon the c Con stitution,' which required very considerable repairs, and the sloopof-war Portsmouth, and have been building one of the new sloops. At Boston they have been repairing the sloop-of-war Constellation, the sloop-of-war' Levant,' and the brig Dolphin, and building one of the new sloops. At New York they have been fitting out the Sabine, Niagara, the' St. Louis,' and the two store-ships Supply and Release, building one of the new sloops, and fitting the steamers Atalanta, Westernport, Caledonia, and Mlemphis. At Philadelphia they have been repairing the frigate' Congress,' finishing the sloop Lancaster, building two of the new sloops, fitting out the steamer Chapin for the Paraguay expedition, repairing the merchant vessel Richmond, which had been very seriously injured by being run into by a government vessel. At Norfolk they have been building the sloop-of-war Richmond and one of these small sloops, repairing the' John Adams,' and fitting out the steamers Southern Star, the Preble, Fulton, and Water Witch for the Paraguay expedition. At Pensacola they have been building two sloops, one called the Pensacola and one of the new sloops last authorized by Congress. That is all that I remember of the work during the last summer and fall. " Question. How did this amount of work compare with the amount of work at any time before going on in the navy yards? " Answer. I think that it is rather more than we have ever had at any one time before. " Question. What occasioned the necessity of this great amount of work being done last autumn? "Answer. Part of it was due to the fitting out of the Paraguay expedition. Occasionally ships came in wanting more repairs than we could foresee. In repairing a ship we may sometimes find it necessary to rebuild it. " Question. How many new sloops did you have at this time?' nswer. One at each of the yards; at Philadelphia there were two.' Question. How many new vessels have you had in progress during the last yeam? "Answer. Five authorizedby the last Congress, and seven authorized since. 10 NAVAL CONTRACTS AND EXPENDITURES. "y Question. WVas there ever a time before when there have been twelve vessels in the course of construction at the navy yards? " Answer. I think not." Here, then, appears a reason for a larger number of men than usual, during the fall of last year, at all the yards. If; however, the system did not lead to this result of packing for elections during the last fall, it certainly tends in that direction. The practice of levying contributions upon the men, and receiving costly presents from them, was amply proven and fully admitted. It is a practice which your committee cannot too strongly reprobate. The bestowal of a present by a subordinate upon a superintendent is simply the purchase of an indulgence. It must be a man of strong principle who will require full compliance with duty from one whose costly gifts he bears upon his person. If such practices should be tolerated, employments in the yard will be bolght and sold, and the question of a man's retention will be determined, not by his faithfulness in duty, but by his liberality in presents. And, so, the office of master-workman will be a mere brokerage in appointments. The men themselves, having obtained their places by pay, will feel no sense of obligation to discharge their duties properly, and the superintendents being bribed, there will be none to exact fidelity. If a fair share of the responsibility, whatever it may be, for the policy of equalizing the patronage among the different congressional districts must attach to the present Secretary of the Navy, it will not be denied that he is fairly entitled to credit for the measures of reform adopted during his term and by his direction. Commander Bootes, whose service there commenced soon afer the incoming of the present administration, says: There were a great many reforms made in the yard while I was there." And one important reform he mentions as made by him, in carrying out the orders of the Bureau of Yards and Docks. Constructor Delano mentions a regulation adopted about a year and a half ago, for the examination of all master-workmen before they can be appointed, thus securing that none but competent men shall hereafter be appointed to these places. This he thinks will have a decidedly beneficial effect. It appears also that an order was issued on the 14th of December from the Secretary of the Navy, the purport of which is to give to the commandants of the yards the power to dismiss disorderly and incompetent men. It is as follows: c CIRCULAR.' NAVY DEPARTMENT, December 14, 1858. "cThe commandant of a navy yard, at any time when in his judgment the public interests require it, is authorized to direct the discharge of any of the men employed in the yard under his command. "He will report to the department when the services of any of the master workmen can be advantageously dispensed with; also any just NAVAL CONTRACTS AND EXPENDITURESS. 11 ground of complaint which may come to his knowledge against any of them.'ISAAC TOUCEY, " Secretary of the N2avy. " To the COMMANDANTS of Navy Yards. If it be borne in mind that the evil complained of in these yards is that the master workmen are appointed at the Navy Department, and that they select their own men, so that there is no sufficient power in the hands of the commandant of the yard to enforce discipline and rid the service of idle and worthless employes, the importance of this order will be seen. Here, then, are several valuable reforms introduced under Governor Toucey into this branch of the service. And as to the abuses which have been mentioned, flagrant as they are, it would be difficult, upon any principle of justice, to hold him particularly responsible, because it does not appear that they were made known to him. The witnesses were questioned closely on this point, and almost unanimously said that no complaints had been lodged before the department at Washington. That the department was always ready to have all necessary investigations made Commodore Roote distinctly proves" Question. I want to know whether, so far as came within your knowledge, when complaints were made to the department at Washington about misconduct in the yard, was. there any remissness in the department in having these things investigated into-these complaints alleged against men or practices in the yard? " Answer. They seemed to be very anxious to have investigations made." If Governor Toucey be allowed due credit for the many important reforms introduced by him into this branch of the service, and also for his readiness to inquire into all alleged wrongs that might be brought to his knowledge, he is entitled, as your committee think, to a favorable judgment at the hands of his countrymen. It seems to be conceded, however, that, in order to secure thorough reform in this regard, some act of legislation is necessary. The great object would be to remove the appointment and dismissal of men from the reach'of political influence. It is a serious question with your committee whether it is practicable to do so. Can appointments be made at such a location without the intervention of party bias? Its accomplishment, if practicable, is necessary not only for the good of the yard, but for the comfort, convenience, and independence of New York city members of Congress. The Hon. John Cochrane, the Hon. H. F. Clark, and others have spoken out explicitly on that subject. In speaking of the management of the Brooklyn navy yard, your committee have thus far passed over the investigations made by them into the manner in which the offices of storekeeper and navy agent at that place have been discharged. These are both important offices and have each been the subject of much nnfavorable rumor. As supplies cannot be purchased exactly when wanted, and as it is 12 NAVAL CONTRACTS AND EXPENDITURES, found useful in practice to keep a quantity on hand ready for immendiate use, the office of storekeeper is indispensable. It is his duty to preserve them, to keep an account of the quantity received, and the quantity paid out; and thus be able to show at any time the quantity on hand. Whenever a new storekeeper is appointed, it is indispensable that an inventory should be taken, in order to ascertain whether the supplies on hand correspond with the quantity which the books call for; otherwise one man might be made to suffer for the fraud or carelessness of another. Indeed, it appears advisable to your committee that inventories should be required at stated periods, even during the service of the same storekeeper, should that service be long. It does not appear that this regulation has heretofore for years been strictly and thoroughly complied with. The present storekeeper (Mir. I-errick) speaks of another abuse as heretofore existing in his office. It has been the custom of some of his predecessors, he says, when supplies of a permanent character were furnished to out-going ships, to credit them upon the books as paid out; yet if the vessels, upon coming in from their cruise, should return a portion of thles`supplies, as frequently happens, they have not again been charged against the storekeeper on the books. Thus the storekeeper would have on hand stores for which it would be difficult to fix his responsibiliey. It is difficult to see how such a case could arise without gross neglect somewhere. The purser or commanding officer of the vessel s, or should be, required to account for all stores, permanent or perishable; and if paid over again to a naval storekeeper the receipt of that officer should be required as a voucher. This abuse, however, Mr. Herrick states, has been reformed during his service. The amount of stores which should be on hand in the offices of the different storekeepers on the 1st of July, 1858, according to the records of the department, is $6,333,664 21. At New York, alone, the amount on hand at that time should have been $1,414,152 68, and at some other yards even more. There passes through the hands of the storekeeper at New Yorkn, in the course of the year, stores amounting to something like a half million of dollars. The penalty of his official bond, as he states, is $40,000 only. This appears to your committee to be scarcely adequate.. Though the importance of this office is thus shown, it appears for years past, and under administrations of different parties, to have been regarded as a respectable and comfortable place for some man who wished government aid while he carried on other business. It has often been filled by editors of newspapers. Such was Colonel Fuller, under Mr. Fillmore's or General Taylor's administration; such is Mr. Herrick now. He says in his testimoy: " I am editor of a newspaper. I do not imagine that a storekeeper with a salary of $1,700 is paid mainly for the manual or mental labor he performs, but for the responsibility he assumes." When asked whether he devoted as much as one-seventh of his individual time to the duties of his office, he answers: " I do not know that I do; but I do all that is required." Again, he says; I think I am as much in the storekeeper's office proper as any NAVAL GONTRACTS &AND EXPENDITURES. 13 storekeeper I have known and I have known several for at least fifteen or twenty years. There was Captain Paul R. George, Colonel Craven, Mr. Pentz, Colonel Fuller, and Colonel Delavan, who all conducted the business jLst as I do; at least, I suppose they did. Colonel Fuller told me that he used to go there once or twice a week. It is not necessary to go every day. I consider the storekeeper's place as one of responsibility; the storekeeper is not expected to do manual labor, or the work of a clerk. " Question. Has not this office been given for many years, under all administrations, to editors of papers, or some political person? "Answer. A11 offices that I know of are given to some political person they are all politicians, either on one side or the other. Colonel Fuller was editor of the Mirror; Colonel Delavan was not, I believe, in any business when he was appointed. He was a politician, however." While Commander Rootes thinks that the force in the storekeeper's office is unnecessarily large, he thinks it too small, and states that his books are now behind on that account. If the government should approve the policy of paying one man for responsibility, and another for labor, it will find occasion to increase its employes in all branches of its business. This policy your committee are not prepared to recommend. The office of navy agent is one still more important. He disburses all the money expended at that point, both under the Bureau of Yards and. Docks, and under that of Construction, Equipment, and Repairs, amounting in the year to $3,000,000 and more. Against this office, for years past, rumor has alleged grave abuses; and therefore your committee resolved to make an extensive examination into its management. Many ch-hrges more or less grave were made against the present navy agent,, Mr.B anders, by different witnesses in this investigation. Mr. B. S. Swackhamer, who had been employed as a clerk under Mr. Sanders, and been discharged, stated that his accounts had. been falsely made out, so as to show less of money chargeable against him than was correct; and also that lJe had in some cases, for a compensation to himself, paid money to some parties before it was payable, withholding it from others to whom it was due. Mr. Swackhamer said: "' Answer. The statement made to the Secretary of the Navy during the last months I was there did not represent the finances of the office. There were generally several bills, amounting to several thousand dollars, entered as having been paid the last of one-month, when they were really paidc early in the following month.' Question. By whom was this done? " Answer. By the chief clerk generally. " Question. What effect would that have upon the statement of this account; would it enable Mr. Sanders to draw more money?' Answer. Yes, sir; I took that to be the design. It would present an incorrect view of the matter to the Secretary of the Navy. He would not suppose there was so much money in hand as there really was. 14 NAVAL CONTRACTS AND EXPENDITURES. Question. How long did you continue with Sanders? " Answer. Until his office was confirmed; a little over a year after his appointment. " Question. What amount of bills were returned as paid which were really unpaid?' Answer. I think about $20,000 or $30,000. " Question. What was the aggregate amount? "Answer. It passed on from one month to another, probably increasing. I remember one bill of $8,000 and odd, which was reported as paid in April, which was not paid until some time in May." Mr. Swackhamer further said that the accounts of the former navy agent (his brother) had been incorrectly stated also. Others charged Mr. Sanders with sending his requisitions almost exclusively to Secor & Co., of which house his surety is a member, without making the requisite call upon contractors, and without knowing anything about the price which Secor & Co. would charge, and many witnesses charge him with neglect of duty, &c. Upon all these points Mr. Sanders was examined at length. He denied the charges made by Mr. Swackhamer, and on that subject submitted the following explanations: " Question. When you send a bill to the department to draw the money on it is this receipt attached to it? " Answer. A blank form of receipt is attached to it; it is not signed, however, until the money is ready to be paid. " Question. You send the bills to the department, they send you the money, you pay the parties, and then they sign the receipts?'Answer. That is so. They sign the receipts when the money is paid to them; and these receipts, thus signed, are my vouchers. " Question. Then the bill when it is first sent on is the same as the one you send on as a voucher, only the receipt is not signed? " Answer. Yes, they send it back to me, and when I get the receipt signed, it goes to the accounting officer of the Treasury as my voucher. " Question. Is a record of these bills kept at the department?'Answer. I presume so, at least; I do not know enough of the way they manage their business, however, to say positively. "Question. Then at the end of the quarter you send to the Treasury Department all your receipts? "Answer. Yes, and they then close up my accounts for the quarter; I have never had a mistake found in my accounts yet; some items may be sent back for explanation, but in every instance it was satisfactorily explained." In relation to the charge of leaving unpaid accounts which were due Mr. Sanders, stated as follows: " Question. Has it ever been the case that you have used money, which you have received for a particular bill which you have sent to Washington, to pay another bill which yuu have not sent on to Washington, leaving the other bill unpaid?' Answer. No; I have never let a bill lie over at all, except when I was directed to use this discretion, to work off the treasury paper to the least injury of all parties, giving a part of the cash, which reaches tne in advance, to one and a part to another. I have never heard a NAVAL CONTRACTS AND EXPENDITURES. 15 word of complaint from a contractor on this ground, and no man who received money through my office ever had cause to complain that I had kept him waiting for his money a minute after he applied for it, if I had received it. Now, to show that if I am deficient in anything it is not in keeping sufficient funds on hand, because it takes a week for me to make a requisition upon Washington and get the money, I will mention an instance. At the time the Niagara was ordered off, the purser of the Niagara received an order from the Secretary of the Navy upon me for $10,000, and I received a despatch to that effect also. Recent drafts from the Secretary and Fourth Auditor had exhausted all the pay and contingent fund on hand; but I promptly borrowed the money and paid it over to the purser. There has been no instance, after the receipt of funds, in which I have kept creditors waiting for their money from the smallness of the contingent fund. The department has overdrawn on me twice, yet I have always paid. I recollect that there was an article in the Herald, about the time of my confirmation, saying that the Secretary had better examine my accounts; yet on that very day I was $2,000 in advance of the government, and transmitted a telegraphic despatch to the Secretary of the Navy to that effect. Question. When did you last settle up your accounts?' Answer. On the 30th of September last. Question. Did you exhibit your receipts and vouchers at that time? " Answer. Yes; everything.' Question. How did your accounts then stand? "Answer. They were all square. Commodore Smith, chief of the Bureau of Docks and Yards, says that these things could scarcely be true to any important extent with — out discovery, and that no complaint even had ever been made to the department on that subject. " Question. Under that system, would it not be practicable to bring into the settlement of a former quarter what had happened during the current quarter, by making a false return? " Answer. I do not see how it could be done, unless he committed a fraud, altering figures and dates. Question. If that were done would it be likely that complaints would be made? "Answer. The person who is to receive the money upon the bill which has been approved would certainly make a complaint if he did not receive his money, unless he had made a bargain with the navy agent to allow him to retain the money upon paying for the use of it. If he did that the navy agent might charge upon a previous quarter the payment of a bill which he had not paid, excepting by a promise." Mr. G. A. Blood, who has been chief clerk in the navy agent's office for five years, fully sustains Mr. Sander's denials and confirms his explanations. In relation to the charge of procuring all his supplies of Secor & Co., allowing them to charge too high a price, Mr. Sanders stated that his purchases in open market from Secor & Co. had been, since the 1st of April last, only about $13,000. 16 NAVAL CONTRACTS AND EXPENDITURES, In relation to his failure to consult contractors, he explained by referring to the following letter addressed by him to Commodore Smith on that subject: N AVY AGENT'S OFFICE, " New York, August 17, 1858.' SIR: Your letter of the 14th instant, calling my attention to the circular of the department of December 29, 1855, has been received.'I think it proper at this time to present to the bureau a few obstacles in connexion with this matter, and which if the bureau will remove, I will be very happy to carry out the circular to the letter. So far as it has been in my power I have endeavored to act according to the spirit of the instructions of the department, always keeping in view the fact that the department required nothing but of the very best quality; and it is admitted at the yard that the articles are the very best in market, and give the highest satisfaction; for which a fair market price should be paid, and nothing more; and when I have thought parties wished to charge exorbitantly, I have refused them any of the trade of the office. And in a case recently, where purchases were made on account of Mr. Lesley, contractor, the articles were procured at a much lower rate than the contract, although they were afterwards turned over to the contractor, and the bills made in his name. " Requisitions are often made for so small quantities-for instance, three spools of cotton-and so indefinite, (if for tools, or iron, &c., no size is given,) that no merchant could form an estimate of the price until the parties at the yard are consulted. This occupies time, and two or three applications of this kind, if they should fail to receive an order, the bureau will readily perceive, would not only discourage, but disguAs them with the whole working of the department. " It is often the case that articles are not required until the moment they are wanted for use, and then they are either purchased by the yard, or, if time is taken to go through the form of the circular, hundreds of men are kept idle, waiting, and the government really loses more than twice the cost of the article; and this cannot be avoided, if the circular is carried out to the letter. If there is a requisition from the yard of any large amount, it is invariably the case that it is stated on the face of it where it is to be bought. I have too amiably yielded to these suggestions, thereby establishing a bad precedent, as the inspector should not influence the purchase. "I do not understand the circular to give contractors the monopoly of supply. Some of the contractors are evidently of this opinion, and recklessly make bids below the cash value of the best articles of the class, hoping to make up such losses by excessive charges on articles ordered by open purchase. If the inspectors do their duty there will be little profit on the open purchases, even were they all given to a single house, and it is certainly to the interest of the government that the best house in the city should do all the miscellaneous business, as I have shown it is not of sufficient consequence to be much divided. "Very respectfully, "GEO. N. SANDERS, Navy Agent." NAVAL CONTRACTS AND EXPENDITURES, 17 The chief clerk, Mr. Blood, corroborated Mr. Sanders on this point also. Mr. Sanders distinctly denied having ever received any part of the profits upon articles purchased by him. Having investigated these charges as thoroughly as they could, your committee have no hesitation in saying that, upon the weight of testimony before them, Mr. Sanders has not been convicted of any fraud or malfeasance in office. The charge that Mr. Sanders is frequently absent from New York, and gives comparatively little personal attention to the duties of his office, appears to have been better sustained. He alleges, however, that when absent from the office he leaves a very competent assistant to discharge his duties for him. It does not appear to your committee that the business of his office has suffered by the absence of Mr. Sanders, nor does it appear that any complaint of personal inattention to duty has ever been made to the department in Washington against him. It appears to your committee that the duties of navy agent are not defined with sufficient distinctness. The only legal provision on the subject is that which fixes the salary at $3,000; the rest is left to the regulations of the department. The contest which appears several times to have arisen between the navy agent and the commandant of the yard in relation to their relative rights and responsibilities in making purchases ought to be settled. The responsibility should be clearly fixed. The large amount of open purchases, and especially the large amount made without the intervention of the navy agent, has struck your committee with surprise. Purchases by the master workmen do not seem to be sufficiently guarded against fraud and collusion. The navy agent purchases upon a requisition drawn by the civil officer of the department that needs the article, which requisition is approved by the commandant and countersigned by the storekeeper. The article when bought is inspected by the inspection officer, and is entered upon the books of the storekeeper. There appears to be every necessary precaution in this case, except as to the question of price. When the master workman purchases, the civil officers above him and the commandant of the yard are required merely to approve the bill. Other safeguards are removed. And yet it appears that more than twothirds of the articles recently purchased at New York have been purchased in that way. H. Rep. Corn. 184 —2 18 NAVAL CONTRACTS AND EXPENDITURES. Amount of open purchases made at the New York station, arranged according to the quarters, from April 1, 1857, to December 31, 1858, inclusive. Quater. Purchases by Purchases by agent. yard. Second quarter, ending June 30, 1857 ----- $32, 287 97 $52,739 56 Third quarter, September 30, 1857 --------- 14,832 72 61,028 40 Fourth quarter, December 31, 1857 - -------- 4830 30 39,912 24 First quarter, March 31, 1857 ------------- 5,787 57 57,086 13 Second quarter, June 30, 1858 —--—......... ------ 13, 192 88 27, 172 12 Third quarter, September 30, 1858................ — 6,425 15 29,860 07 Fourth quarter, December 31, 1858. —-----------—.- 11,036 23 34, 189 80 88,392 82 312,888 32 The Philadelphia yard was the only other to which the investigation of your committee was seriously invited. The testimony in relation to that discloses nothing which calls, in the opinion of your committee, for special comment. The question in relation to the employment of eighty oakum-spinners in the summer of 1858, so far as the government is concerned, appears to have been simply a question whether it was better to have the oakum spun up rapidly by a large number of men, and then dismiss them all, or whether it should have been done by a smaller number in a longer time. The competency of these persons for this work and their faithfulness in labor is proven. AGENCY FOR THE PURCHASE OF ANTHRACITE COAL. Since the substitution of steamers for sail vessels to so great an extent in our navy, fuel has become a very important and costly part of our naval supplies. For a long time the government was greatly imposed on in making purchases of the article. The circumstances under which the mode of purchasing was changed is thus described by a very intelligent witness, Mr. B. H. Springer, of Philadelphia: " Answer. So far back as 1845 or 1846, I am not positive which, the coal trade in Philadelphia, seeing the manner in which the government was supplied, felt desirous of introducing a better article, for their own interest of course, as well as for the interest of the government. They urged me to visit Washington and try to get it introduced into the navy. I think this was during Secretary Mason's first term, under President Polk. I complied with their request, and visited Washington each session without accomplishing anything until the long session-I do not remember which Congress-which terminated in 1850. I was informed by Mr. Graham that if we could succeed in getting the law altered which gave it to the lowest bidder he would appoint an agent. We did succeed, and I was appointed in January, 1851." Mr. Springer was a man of intelligence, who had been much em NAVAL CONTRACTS AND EXPENDITURES. 19 ployed in the coal trade, and who understood the business thorGughly. He made, doubtless, a very excellent agent. After him a Mr. Tyson was appointed for four years, and at the expiration of his term the present agent, Dr. Charles B. Hunter, of Reading, Pennsylvania, received the appointment. The last appointment was made in May, 1858, since the coming in of the present administration. It is very clear from his testimony, as well as from that of other witnesses examined before the committee, that Dr. Hunter has proved himself an utterly worthless agent. It appears, too, that he has an equal partner in the profits of this agency, a Mr. J. F. Smith, of Philadelphia, who has been very little, if at all, more useful than Dr. Hunter. Such execution of government trusts your committee cannot too strongly condemn. The inquiry naturally arises, how far are the authorities at Washington responsible for this worthlessness and incompetency of their agent? Dr. Hunter is an educated man, of high respectability as a gentleman, a resident in the vicinity of the coal region, and for some time connected with the iron business. It could scarcely be expected that Governor Toucey should make appointments in the different States upon his own personal knowledge; and though the President resided in the same State with Dr. Hunter, yet he had been so much employed in public affairs, and recently so much out of the State and away from the country, that he, too, might well be allowed to rely even for Pennsylvania appointments upon the information and recommendation of friends. Proof has been exhibited before your committee that Dr. Hunter's testimonials and recommendations were of the strongest, most extensive, and most influential kind. The following is a specimen of them:' The undersigned, members of the senate and house of Berks county, in the State legislature, beg leave to recommend Dr. Charles H. Hunter, of said county, for the agency to supply the government with anthracite coal, now held by Benjamin Tyson. " Doctor Hunter is a sound, active, and influential democrat, of undoubted integrity, and in every respect fully competent to discharge the duties of the office. " We earnestly request this appointment as one due to the applicant, and as one which will prove highly gratifying to the democracy of this county. " JOHN 0. EVANS. "J. LAWRENCE GETZ. "W. WM. HEINS. "B. NUNEINACHER. "MICHAEL HOFFMAN. "Hon. ISAAC TOUCEY, Secretary of the Navy." Similar recommendations for Dr. Hunter were signed by Mr. Scwartz, Mr. Heister, and a large number of other gentlemen. If gentlemen in public pos.tion, having the interests of the entire 20 NAVAL CONTRACTS AND EXPENDITURES. Union to supervise, with important trusts constantly claiming their attention, and important appointments constantly to dispose of, with numerous applicants crowding upon them night and day, and with their army of backers and friends, literally laying the Executive Mansion and the public departments under seige,-if under such circumstances they may not fall back, and rely safely upon such recommendations as these, what iesort will be left to them? They cannot make one appointment in a thousand upon their own knowledge; if, then, they may not rely upon gentlemen of known position and standing to advise them as to suitable persons for public positions, your committee are at a loss to know how such duties are to be performed. Your committee do not know what testimonials rival applicants may have produced; but unless they were absolutely overwhelming, the question would appear to be, what right had the President and the Secretary of the Navy, as men anxious to do well for the country, to disregard such recommendations in making this appointment? And after the appointment was made, what was there, as shown by the testimony, to have caused them to remove Dr. Hunter? No complaint was ever made to them up to the time when this investigation began of his inefficiency or inattention to duty. Coal of better quality than that received in former years was being furnished; Lenthall, the chief of the Bureau of Construction, under whose supervision much of it passed, was satisfied; Commodore Smith, the chief of the Bureau of Docks and Yards, who supervised a large proportion of it, was satisfied; this branch of the public business seemed to move forward as smoothly and as successfully as if Dr. Hunter had been all his life a coal-digger, and was devoting himself to his business with an energy and intensity unsurpassed in the history of public officers. What was there, then, to have awakened the attention of men constantly pressed with public engagements, particularly to the coal agency in Pennsylvania? It is true, there were men all this while apparently lying in wait for their victim, and setting their toils in the dark. There was Niven, himself a disappointed applicant for the coal agency, and who had proposed dishonorable arrangements in order to obtain the place; he was making proposals which he knew could not be fulfilled, and deliberately preparing himself, as it would seeem, to be a swift witness in the future. There, too, was Repplier, displeased because he was no longer allowed to sell his coal to the government at a more extravagant price; there were others envious perhaps of the better fortune of more successful competitors for this desirable trade. But no one of them all gave one word of information to the authorities at Washington in relation to a proceeding which they knew at the time (as they now swear) to be a great fraud upon the government. In relation to the quality of the coal received during the present agency, Mr. Pierce, naval storekeeper at Boston, says:' It was very good; it is said by engineers to be superior to that received in former years." Chief Engineer Wood, says: "It was everything, so far as regards NAVAL CONTRACTS AND EXPENDITURES. 21 quality and preparation, that could be desired; I never saw superior coal to that furnished." Scinickson, of Philadelphia, and others, confirm generally this statement. The importance of procuring the best article of coal for steam purposes, in view of the limited coal room in steam vessels, and to avoid useless freights in supplying foreign stations, will be apparent to all. What is called the foreign freight is greatly larger than the home price of the coal, and is as much on worthless dust as on the purest ore. The requirement for the best article of coal seems to have been fully met in the recent supplies. Your committee have said that it was furnished at a price, both relatively and absolutely, lower than for years before. In proof of this they refer to a table of prices of coal purchased in former years, as furnished by Mr. Lenthall in his examination. abstract statement showing coal purchased and shipped to foreign stations, semi-annually,from January 1, 1852, to September 30, 1858. Dates. No. of tons. Average cost per Total cost. ton, including freight. First half year of 1852-. -— 2 2.240~- $13 04 $29,233 78 Second half year of 1852 ------ 5, 9161 18 70 110,620 80 First half year of 1853 —-, - - 4, 9364 16 93 83,548 18 Second half year of 1853 ----- 8,279k 19 89 164,745 05 First half year of 1854 —---- - 12,07615 21 05 254, 312 15 Second half year of 1854 ---- - 416 14 73 6,131 15 1855, none. 1856, none. First half year of 1857 —---, 2, 759s 14 22~ 39,249 10 Second half year of 1857 —----- - 13, 676 14 32 195,881 13 First half year of 1858, none. Second half year of 1858, to September 30 4,474 12 70 57,834 80 It appears that the agent, some time after his appointment, made an arrangement with the firm of Tyler, Stone & Co., coal dealers of Philadelphia, under which they furnished the greater part of the coal through the year at $3 85 per ton., What was a fair price for such coal at that time it is difficult precisely to say. The difficulty in the case grows out of some apparent conflict in the testimony, and also out of the difficulty of fixing a standard by which to determine what is a fair price, and out of the different value of coal of different qualities, and under different preparation. It is in proof that coal of a similar character to that furnished the government was sold at the same time by other persons, in some instances, at the same rate. Mr. Luther says that he sold it, in one instance, at a price equivalent to $3 85 in Philadelphia. As he is intelligent, the following is extracted from his testimony: " Question. What would have been a fair market value during the spring and summer of 1858 for such coal as the government uses, pro 22 NAVAL CONTRACTS AND EXPENDITURES. vided a man had obligated himself to be in readiness to furnish any amount the government might call for upon short notice-any reasonable quantity of coal the government might call for; such quantities as the government did in fact use? "Answer. I would not have undertaken to have supplied it, with such despatch, at less than from $3 75 to $3 85 a ton. When I said that a man might have bought it for $3 40 or $3 50 a ton, he could not buy the quantities the government orders of one single individual or firm alone. None of them ever have that amount on hand. He might get it, perhaps, by going around to several different houses, taking half a cargo of this one, a cargo of that one, and, perhaps, two cargoes of another. What I mean by a cargo is 200 to 300 tons, which is the usual size of a boat load. "I Question. Do dealers in Philadelphia often have a quantity of coal on hand, such as the government would need for its uses? " Answer, No, sir; I have never seen any of them have more than five hundred tons of it on hand at a time in my life; never. Mr. Scinicksen, another coal dealer, also testifies as follows: "Question. As you saw it delivered, what would have been the fair market price in Philadelphia in the spring, summer, and fall of 1858? " Answer. $3 75 to $3 90 would not be anything more than a regular paying business of ten per cent., I should judge; we sold coal at the same time at $3 85. "Question. To whom? "Answer. To coal dealers in Virginia; we sent a good deal to the south; I do not remember the firms." Mr. Tyler, of the firm of Tyler, Stone & Co., swears that at $3 83 per ton the profits of his firm were about ten per cent. Mr. J. Vaughan Merrick, of the firm of Merrick & Sons, testifies that his firm in Philadelphia actually paid a price at least equivalent to this for all the coal they used. On the other hand, there is testimony that it could have been sold at a considerably lower price. G. P. Nevin swears that he proposed to sell it to the agent at $3 20 per ton. He was an applicant himself for the coal agency, and before the matter was determined he made a proposition to Mr. Beach, of the firm of Tyler, Stone & Co., which is described by Mr. Beach as follows: "He said he was anxious to get this appointment, and if I would assist him I might dictate my own terms in return." This incident rests upon the testimony of Mr. Tyler as well as of Mr. Beach. But if this is insufficient to discredit Mr. Nevin, the whole current of the testimony will show that he could not have sold to the government a good article of coal and well prepared for steam purposes at the price named by him. At that price he must necessarily have lost money, or else have practiced a fraud upon the government. Then Mr. Repplier testifies that he would have been glad to have sold to the government as good coal as that purchased of Tyler, Stone & Co. at $3 30. He says, at the same time, however, that he never examined the coal furnished by Tyler, Stone & Co. He may not have NAVAL CONTRACTS AND EXPENDITURES. 23 known precisely the quality and condition of their coal. The coal he proposed to furnish at $3 30 he called by the same name as that furnished by Tyler, Stone & Co., viz: black heath. But Mr. Springer says: " We do not go by names, sir. * * * I have frequently known the names of the best veins applied to very inferior coal." Your committee are of opinion, from the testimony, that he would not have furnished coal of the vein purchased by Tyler, Stone & Co., dressed as Scimicksen saw them dress it, and placed in the state of preparation described by Pierce, at $3 30 per ton. A few facts scattered here and there in the testimony will throw some light on his sincerity in the declaration. He furnished a good deal of the government coal in 1857. The price he got was $4 25 per ton. It is proven that in 1858 coal was about thirty cents per ton lower than in 1857, so that the price at which he sold it in the year 1857 is about equivalent to $3 95 in 1858. Tyler and Luther both testify that they bought coal of Repplier & Co. in 1858, at the mines, at a price far more than equivalent to $3 30 in Philadelphia. And Smith, the partner of Dr. Hunter, testifies that some of this very coal for which the government paid $3 85 was purchased of Repplier & Co. Scimicksen also says that he knew the price of Repplier's coal in 1858, and it was from $3 75 to $3 65. Your committee attach little importance to his testimony under such circumstances. There is a sworn affidavit sent on by sundry firms of Philadelphia coal dealers, saying that they would have furnished coal to the government, suitable for its uses, at $3 35 per ton. As they were not before the committee, to be questioned about the qualities of the coal to which they refer, their affidavit is not conclusive. The testimony of Mr. Borda, united with that of Scimicksen, will perhaps afford the surest bases of calculation. Mr. Borda was the manager of Hecksier & Co., of whom Tyler, Stone & Co. bought. He says he sold to Tyler, Stone & Co., at the mines, at $1 80, except for six weeks, during which he sold to them at $1 75. Taking $1 80 as the basis of calculation, the freight from the mines to Philadelphia is $1 35. The cost of special preparation, such as they gave, and placing on ship-board, is, according to the testimony of Scimicksen and others, twenty cents. Then add five cents per ton for waste in rehandling. Thus it will be: Price of coal per ton at mines........................... $1 80 Freight to Philadelphia................................ 1 35 Preparation and putting on board vessel.................. 20 3 35 Loss from rehandling................................. 5.e 40 That Tyler, Stone & Co. did usually rehandle it, the excellent 24 NAVAL CONTRACTS AND EXPENDITURES. condition of their coal when delivered, and the express testimony of Mr. Scinnicksen, will sufficiently prove. Mr. Scimicksen says: "Question. Did you observe personally that they put extra labor and care upon it in preparing it for government use? "Answer. I did with regard to some of it; I did not see it all shipped. "Question. How often did you observe it? "Answer. I saw them load vessels frequently; I could not say how many times. I remarked at the time, to them and to others, that they were taking great pains with the coal, and must get a big price for it." If the sum of $3 40 is a fair price at which to estimate the cost of the coal to Tyler, Stone & Co., then 10 per cent. on that would be 34 cents, making $3 74. Twelve per cent. would be.3 80. But a question of drawbacks is raised here. That matter will be given as stated by the witness, Mr. Borda: "Question. You say that the freight would be $1 35; how much of that is allowed as drawback? "Answer. If it is to go to New York there is a drawback of 20 cents; but if it is loaded at Philadelphia, to go south or east, there is no drawback. "Question. What is the five per cent. allowance? "Answer. It is the allowance made by the railroad for waste; we include that in the shipping expenses.' Question. How do you ascertain the weight? "Answer. Upon the railroad scale at the mine. We have lateral railroads, and the coal is weighed upon scales at the termination of those lateral roads, where they meet the Reading railroad. That is called the gross weight. Five per cent. being taken off, that leaves the net weight. We get paid only for the net weight." How far this statement should modify the above calculation your committee need not stop to inquire. It must be remembered that in order to supply large calls from the government, sent without notice, it was necessary for Tyler, Stone & Co. to keep a large amount of coal, suitable for government purposes, constantly on hand. On this, of course, they lost interest. From all that has been said, your committee conclude that $3 85 for such coal as Tyler, Stone & Co. furnished the government allowed them profits somewhat too large but not very excessive. A good agent might, with unusual diligence and devotion to the public interest, have to some extent reduced the price. In every other respect Tyler, Stone & Co., who took upon themselves the duties of the agency, acquitted themselves thereof in a manner that left nothing to be desired. Indeed, while your committee will not withhold its censure from negligent and unskilful agents, yet, in view of the great difficulty of obtaining for the government a good article at a fair price, they think that this transaction, in its practical results, is not peculiarly unfavorable. NAVAL CONTRACTS AND EXPENDITURES. 25 Certainly nothing appears in the action of the Secretary of the Navy to condemn. Mr. Beach, of the firm of Tyler, Stone & Co., was, it is true, his wife's nephew-a connexion rather too remote to overcome by its influence any but a very weak morality; and in the absence of all proofs to show that he had. any agency, direct or indirect, in securing for that firm the chief supply of coal, or, in fact, that he ever knew of that arrangement, he is entitled to the full benefit of his own denial, sustained, as it is, by Dr. Hunter's sworn declaration that Mr. Toucey never made any intimation, direct or indirect, to him as to the persons of whom he should purchase, and that nothing ever occurred between them on the subject. The rate of compensation allowed was precisely the same which had been allowed by Mr. Fillmore's administration for the first agent, viz: five per cent. on the coal purchased and on inland freights. The testimony of Mr. Springer, who was the first agent, will best sustain this declaration: "Question. How was your compensation fixed? "Answer. At five per cent. "Question. Upon what? "i Answer. Upon the price of coal and freight. I took up all vessels and superintended them." The amount of coal purchased then was much smaller than it has since become, and as it grows larger it might have been well, in the opinion of the committee, to have reduced the per centage allowed. But the amount of coal purchased in the summer and fall of 1858, swelled as it was by the Paraguay expedition and other unusual demands, furnished no just basis on which to fix the proper per centage; and it must be borne in mind that both the former agents had made claims for some additional compensation. It would appear hard to hold an administration responsible for not foreseeing contingencies, and adapting its regulations always strictly to them. In the case of the Japan expedition, under Mr. Fillmore's administration, Howland & Aspinwall, of New York, were allowed ten per cent. on every cargo of coal sent out, including original cost, inland and foreign freights, insurance, &c. This gave them a clear compensation for the coal furnished to that expedition, in the two years of its existence, greater than the total commissions of all the coal agents together since the agency was established. This will appear from the annexed table: Commissions paid to the several coal agents by the Bureau of Construction, &fc., during each fiscal year, since their first appointment in 1851. Names. To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To Dec. 31, Total. 1851. 1852. 1853. 1854. 1855. 1856. 1857. 1858. 1858,6 months. B. H. Springer................. $115 09 $292 31 $274 23 $2,100 37 $214 00......................................... $2,996 00 ohn Jamison.................... 234 45 1,041 36 924 24 690 17 346 67....................................................... 3,236 89 Benjamin Tyson................................................................... 15022 13 $1,244 30 $1,404 29 $5,633 78.............. 9304 50 C. H. Hunter.................................................................................................................... 319 21 $5807 74 6,126 95 James Polk............................................................................. 22702 90 47 201 6............. 79 06 597 81 349 54 1,333 67 1,198 47 2,790 54 1,809 82 1,334 77 1,605 55 5,952 99 5,886 80 22,262 15.______.___ ______ ______.___.___ _____ ______ _______ _______ H Howland & Aspinwall*........................ 1785 17 22,030 73 27,159 96.....................'.................. i........... 50 975 86 *This amount was paid to Messrs. Howland & Aspinwall, who acted for that time as the special agents of the department for the procurement of coal and freighting it for the Japan m expedition, they purchasing the coal and paying the freight bills out of their own funds, and, upon settlement with the bureau, receivirg a per centage upon the gross amount. ~ Statenent of the amount of commiissions paid to the several coal agents, for purchases under the cognizance of the Bureau of Yards and Docks, during each fiscal year since theirfirst appointment in 1851. M To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To Dec. 31, Total. lb5. 1852. 1853. 1854. 1855. 1856. 1857. 1858. 1858,6 months. _ _ _ _ _ _ _ __1. 1 8 _ 8. _ _ _ _ _ _ _ dH John Jamison................... $213 30 $872 35 $936 05 $66 79.................................................. $2,088 49 f B. H. Springer................... 58 21 550 08 840 20 1,020 52........................................................2,469 01 12 James Polk........................................................................... $1,949 75 $1994 22 1,761 46 $2,434 70 $1,866 21 10,006 34 Benjamin Tyson.......................................................................... 1,363 34 687 95 1,373 72 1,709 67............ 5,134 68 271 51 1,422 43 1,776 25 1,087 31 1 3,313 09 2,682 17 135 18 4144 37131 3,511 39 21,343 70 FEBRUARY 8, 1859. JOS. SMITH, Chief of Bureau. NAVAL CONTRACTS AND EXPENDITURES. 27 In this connexion it is just to say, that in providing for the use of American coal on most foreign stations on terms cheaper than foreign coals have heretofore been purchased, Mr. Toucey deserves well of his country, and especially of the coal interest itself. Your committe'e thus far have omitted to allude to the testimony of Mr. Smith, connecting the President of the United States in a peculiar manner with the appointment of Dr. Hunter. It is proved that there was a great contest among the numerous applicants for the appointment. At length it was arranged by a number of friends that Dr. Hunter should be designated as the man agreed on, and the emoluments of the office should be divided between him, Mr. Smith, and Mr. Getz. No one traces any knowledge of this arrangement, either direct or indirect, to the Secretary of the Navy; and no one but Mr. Smith speaks of any allusion to it in the presence of the President. In order that his testimony may be properly understood, what he says on this point is given as follows: " Question. Did you communicate this arrangement to the President? Did he understand that an arrangement had been made between the competitors for this office? "Answer. Yes, sir; he understood that the emoluments of the office were to go to the three, as I have stated. "Question. Did he say anything about it? "Answer. No, sir." Again he says: " Question. Do you say that the President understood that you three gentlemen had made an amicable arrangement about this office, or that he understood the profits of the office were to be divided up between you? "Answer. He understood that we had come to some amicable arrangement. "Question. Did he understand that the profits were to be divided? "Answer. I do not know what he understood, whether it was that one-half was to go to one man and one-fourth to each of the others, or what it was. " Question. Was anything said by him about dividing the income of the office between you three? "Answer. No, sir. "Question. Was anything said to him about it? "Answer. No, sir; not by me. I donot know what conversation the others may have had about it." Again he says: "Question. Did the President understand that this arrangement was for the mutual benefit of you three gentlemen? "Answer. From what little conversation I had with him, I suppose he understood that we three, who were all pressed for appointment, had made an arrangement. But I suppose he knew nothing in regard 23 NAVAL CONTRACTS AND EXPENDITURES. to how the emoluments were to be divided, whether equally, share and share alike, or not. "Question. Did he understand that the office was for the benefit of you three persons? "Answer. Yes, sir; that we three were to be satisfied, but he knew nothing about the arrangement, whether one-half was to go to one party and the other half to the other two or not.' It will be seen that Mr. Smith states that the President understood that the emoluments of the office were to go to the three. Again, he says that the President understood that the three were satisfied. He says further, that nothing was said by him to the President, or by the President to him, on the subject of dividing the income of the office between the three. How then did he know that the President understood the matter? Clearly, it was a mere inference on his part. The matter was strongly in his mind, and he took it for granted that the President knew it too. This is the whole testimony to that effect. When he said the matter was settled, the President said he was glad the thing was done or "finished." He was glad that the contest was ended, but made no allusion to a division of the compensation between the three. As this announcement was made by Smith, who appeared to be satisfied, and as Dr. Hunter was to be the appointee, the inference perhaps is just, that the President understood that they two were to have the agency. But that he knew that Mr. Getz would have a part of the compensation, is rendered highly improbable by the testimony of Mr. Getz himself: "Answer. The appointment was spoken of, I think, by the President in my presence. "Question. The appointment of Dr. Hunter? "Answer. Yes, sir. "Question. What did the President say to it? "Answer. It was in reply to something that was supposed to refer to me; it was in reply to an application for my appointment to that office, as it was supposed; he said he had made up his mind to appoint Dr. Hunter; these were his words, I think-"Mr. Jones urged me to appoint you; but you were no applicant, and I have made up my mind to appoint Dr. Hunter." " Question. Was anything further said? "Answer. Not in regard to this subject, I think, sir." Now, would this have been the language of the President to Mr. Getz, if he had known that he was to get a part of the compensation? If it be conceded, then, that the President understood that Hunter and Smith were to have the profits of the agency, does it afford any ground of complaint? Mr. Springer testifies: " Answer. It would require a number of persons to attend to it. One person could not attend to it to give it the attention it requires. For instance, sometimes there will be two or three vessels loading at NAVAL CONTRACTS AND EXPENDITURES. 29 once at different ports. When I first had it, it could have been done much better, when the different vessels would be loaded near each other. One coal inspector could not attend to the whole; but if the coal were to be procured on contract, it might be still worse." Mr. Tyson, who preceded Dr. Hunt, actually had a partner in the duties and profits of the agency. Dr. Hunter, too, would certainly need aid in the discharge of the duties involved. It was a mere agency which might be given to two men, and not an office to be filled by one only. If Smith was to remain at Philadelphia to attend to the duties of the agency there, while Hunter was to be employed in the region of the mines, your committee can see no impropriety whatever in the arrangement. What the committee does condemn is the gross ne. glect of duty on the part of both. It appears to your committee that a coal agency, under proper regulations, is very desirable. No other system has served so well. Mr. Springer says on this point: " Prior to that, the government was supplied in a very bad way, and I think injuriously to its interest. I think they got a much better article and at a lower rate, during the agency than before. I consider it an all important thing; I consider a coal agency properly conducted is one of the most important stations belonging to the Navy Department. The properties of coal are so various that a person who is not thoroughly acquainted with it may purchase a bad article and endanger the ship and all on board. The received opinion of persons not acquainted with the subject is that all coals are alike; but there is as much difference between different coals as thereis between the best hickory and the worst pine wood. The government has bought coal, to my knowledge-not under agencies, but prior to them-which was condemned. I was removed in 1853. Mr. Dobbin was then Secretary of the Navy, and for a time he tried the navy agents; but they sent such coal as could not be used. Mr. Dobbin told me himself that on some of it they had a survey, and it was condemned and sold for either a dollar and a quarter or a dollar and a half per ton. I was familiar with the fact myself. I must say that I consider a coal agency indispensable for the Navy Department.' Question. What is the proper business of the coal agent? "Answer. When I was in the agency I can inform you what I considered the business. I was required, when I was first appointed, to abandon all other business and devote my whole time to the agency. The duty of the agent is to select the coal, purchase it, and superintend the shipping of it; to do which it would require the closest attention of two or three persons, Indeed, while I was agent that was the course I pursued." Your committee would recommend that the agency be retained, but that safe-guards against abuse be thrown around it. In this connexion it is proper to say that the other coal agency, that for the purchase of bituminous coal, stands unimpeached in this investigation. 30 NNAVAL CONTRACTS AND EXPENDITURES. PART II. CONTRACTS FOR LIVE-OAK TIMBER. On the 14th of June, 1858, immediately after the passage of a law directing the construction of eight sloops-of-war, and authorizing the expedition to Paraguay, the Secretary of the Navy advertised for 150,000 cubic feet of live-oak timber, of specific dimensions, to be delivered at six of the navy yards, to wit: Kittery, Charlestown, Brooklyn, Philadelphia, Gosport, and Warrington, 25,000 feet at each yard; one-half to be delivered on September 1, 1858, and the other half on February 1, 1859. Proposals or bids were to be received till three o'clock p. m., on July 14, 1858. The proposals contained this unusual clause: "The department will award the contract in each case to the lowest bidder, reserving the right to decline making any contract for a purchase and delivery at any navy yard if it shall then deem it unnecessary or disadvantageous to the public service.' W. C. N. Swift, of New Bedford, Massachusetts, and James Bigler, of New York, had each previously been contractors for the delivery of live-oak timber at several of the navy yards: Swift at Brooklyn, Gosport, and Philadelphia; and Bigler at Boston, Gosport, and Kittery; and they each had a surplus of timber at the yards at which they had been delivering amounting in the aggregate to over 100,000 feet. Swift's surplus was more than twice as large as Bigler's. In May, 1858, each applied to the Secretary of the Navy to purchase his surplus timber, and urged it upon the ground that the nature of the service unavoidably left a surplus on hand after the fulfillment of such contracts, which it was the usage of the government to purchase at a fair price. The Secretary declined, on the ground that he had no power to purchase without having first advertised for proposals, in order that the wants of the government might be supplied by the lowest bonafide bidder in fair competition. The Secretary had power to procure timber by open purchase if needed for immediate use. Such is the plain language of the law. (See Brightly's Digest, 191, section 7.) And so the law is understood by the Navy Department, as proved by John Lenthall, chief of the Bureau of Construction, Equipment, and Repairs. About 3,000 feet of Bigler's timber in the Kittery yard and probably as much at the Gosport yard, had been used and paid for by open purchase, being needed for immediate use; and this circumstance was urged by Bigler as a reason for the purchase of his entire stock. But the Secretary did not consider the exigency of the public service required the immediate purchase and delivery of a large quantity of live-oak timber. This is obvious for the reasons: 1st. That he refused to purchase, although the stock of Bigler was offered at the moderate price of $1 10 per foot; and Swift said that NAVAL CONTRACTS AND EXPENDITURES. 31 would establish the price, and he would have to take the same for his.-See Bigler's testimony. 2d. The unusual clause in the published proposals to bidders, "reserving the right to decline making any contract for a purchase and delivery at any navy yard, if he should then deem it unnecessary or disadvantageous to the public service." 3d. The Secretary instructed Mr. Lenthall, as he understood, to specify, in the advertisement for the timber, the earliest time at which it could be cut and delitered; and he specified the 1st of February, 1859, as the earliest day practicable. Of course the Secretary knew it would take several months to cut and deliver it. 4th. But little of it has been used since the delivery of it on contract, as hereafter stated. Mr. Lenthall, chief of the Bureau of Construction, Equipment, and Repairs, testifies as follows: "I think that timber of that description was needed; not the whole of it; probably we could have done with much less than was called for. But I think it was for the interest of the service to have got that description of timber, and I think we wanted it then. "' Question. At that time? "Answer. Yes, sir; a portion of it." They got a portion of it as already noticed. They must have gotten all or nearly all then needed, for it is proved but little of the timber referred to has been used since it was delivered under the contract. According to the testimony of B. F. Delano, naval constructor at Brooklyn, about one-fourth of the quantity delivered then, say 6,000 feet, has been used. Samuel T. Hartt, naval constructor at Gosport, proves that about 300 feet have been used at that yard. Francis Grier, naval constructor in the Philadelphia yard, proves there was a little of it used on sloop No. 1, in the Philadelphia yard, and that some was used on the Griffith ship, but leaves the quantity indefinite. He also says if the matter had been referred to him he would not, as a matter of official duty, have recommended the purchase of Swift's timber, and it was not necessary to purchase it to carry on the business of the yard. Proposals for timber were prepared by Mr. Lenthall, under the directions of the Secretary. When submitted to him, he did not approve of the time fixed for the delivery, which was the 1st of February, 1859, and changed it, making half deliverable on the 1st of September, 1858, (about twenty days after the contracts were completed,) and the remaining half on the 1st of February, 1859. Swift and Bigler seemed to have entertained no doubt they had the contracts within their grasp, as they had the timber already in all the yards except Warrington, and to prevent competition between them in bidding, Swift agreed, if he got the contracts, to purchase all of Bigler's timber at the same rate for which he contracted with the government. Swift bid to furnish the timber at $1 30; Bigler nominally bid at a much higher rate, in order that the contract might be awarded to Swift. It turned out there were several other bidders, though they knew it would be impossible for them to deliver any timber on the 1st of September. They believed the Secretary would grant them an extension of time, and doubtless, under that belief, 32 NAVAL CONTRACTS AND EXPENDITURES. bid in good faith. Swift was underbid for every yard, and the contracts were awarded to the lowest bidders: Buxton and Lawrence at Kittery, Charlestown, and Brooklyn; Samuel B. Grice at Philadelphia and Gosport; and Coates, Degraw & Beach at Warrington. Buxton and Lawrence failed to execute their contract within ten days allowed them. The other successful bidders executed their contracts as required. Samuel B. Grice delivered only 1,400 feet of timber at Philadelpiha within the time stipulated for the first delivery. Coates, Degraw & Beach did not deliver any at Warrington. They, each, applied to the Secretary for an extension of time, which he declined to grant; and on or before the 16th of September the contracts were all annulled, and a contract made with W. C. N. Swift to supply all the timber at the several yards, at the same rates at which the contracts were first awarded, ranging from $1 09 to $1 17 per cubic foot, and being an average of $1 12. The usual time allowed contractors for live oak is one and two years, because, unlike other timber, it is rarely kept on hand by lumbermen, and generally has to be cut near the coasts of the Gulf of Mexico after the contracts are made; and being esteemed more valuable when cut between the 1st of November and 1st of March, one winter season at least is allowed for that purpose. Having shown the Secretary did not deem this timber necessary for immediate use, it may be here remarked that he could not, and did not, under the first contracts, or under that with Swift, expect half of the timber to be delivered on the 1st of September, or near that time. Every one knew it was physically impossible to deliver any portion of it at Warrington (Pensacola) by that time, or for months afterwards. None of the contractors for that yard had any timber there, or near there. Each of them had to cut it from the forest before he could deliver it. The yellow fever was prevailing along the Gulf coasts with great fatality, and no one would have exposed himself to the danger by cutting timber during its prevalence. Without this obstacle, it was impossible to have cut and delivered the timber by the time specified, or even to have placed a force in the forests, where it might be cut between the execution of the first contract and the 1st of September. It appears that Coates, Degraw & Beach, the first contractors for the Warrington yard, were making reasonable exertions to furnish the timber. There is no sufficient reason for believing they would not have furnished it as soon as Swift. In fact, it appears he has not even yet complied with his contract at that yard, and has delivered but a small portion of the timber. Beach, of the firm of Coates, Degraw & Beach, testifies that they had made arrangements by which they would have been able to deliver it all by the first of February. And whether that be so or not, there is nothing shown to justify the belief that they would not have furnished it as soon as Swift. The inquiry at once arises, why was their contract annulled and a new one made with Swift? If it was the desire of the Secretary from the first to give the contract to Swift and Bigler, or either of them an answer is furnished. It is, however, proper to state, in this connexion, that the Secretary in the month of December last annulled Swift's contract for the War NAVAL CONTRACTS ANbD EXPENDITURES, 33 rington yard on account of his failure to deliver the timber; but orders have since been given by the chief of the Bureau of Yards and Docks to the commandant of this yard to receive timber offered under the contract since it was annulled. Some facts appear touching this matter to which it is deemed proper to refer. Swift and Bigler had previously been reasonably good,contractors for live-oak timber, and seem to have had more favors than other contractors in allowing their surplus timber to remain in the yards; a favor which perhaps they deserved. Swift was an ardent friend of the present administration, and had expended his money freely, more than $10,000, to aid the election of Mr. Buchanan. It was known to the Secretary that he had been liberal, as proved by George Plitt, and it was natural he should have a kind regard for him. There is a striking agreement between the timber for which the proposals were advertised and Swift and Bigler's timber in the yards. This may have been accidental; and Lenthall testifies that the description of the timber in the proposals was not made by the Secretary, but by himself. He also says he had in his possession, at the same time, Swift's letter, and knew what kind of timber he had, but did not pay any attention to his timber in drawing up the advertisement. The first contracts were annulled, and the contract with Swift entered into with remarkable promptness, the two acts seeming to have been performed at one and the same moment. The strong confidence of Swift, at all times, as well after the letting as before, that he would finally get the contract; his prompt declaration that the contracts of his under bidders would be annulled and he would take their place; his quietly remaining in Washington till after the 1st of September, and in the meantime writing to Bigler to assure him that their agreement about the timber of the latter would be carried out, are circumstances, the significance of which cannot be overlooked in this connexion. For what reason was the 1st of September fixed for the delivery of half the timber? The Secretary knew Swift & Bigler had it then in all the yards except Warrington, and no other person in the country had it. Bigler testifies as follows: After I got my contracts filled, I went to the Secretary of the Navy to get him to buy my timber upon open purchase. He gave as a reason for not buying it upon open purchase that it was against the law to buy timber upon open purchase, except for immediate use. Mr. Swift went to him on the same score; that he had timber over, which he wished to sell to the government. This induced the Secretary, I suppose, to make this advertisement to cover about the amount of timber that we had. There was nobody else in the business who could supply the amount and kinds of timber called for, and. we did not suppose there would be any opposition to us; and when the advertisement came out I was very much surprised that it was in that shape; for it was in a very bad shape for me, as I had only about enough timber to fill out the call for two of the yards. This was bad for me in this way: for instance, if I put in bids for all the yards, I migh H. Rep. Corn. 184-3 34 NAVAL CONTRACTS AND EXPENDITURES. get Pensacola or Philadelphia, where I had no timber; and then I would be obliged to move it from another yard at great expense and trouble. This induced me to make the arrangement with Mr. Swift to avoid the expense of removing my timber from one yard to another. " Question. Did the Secretary intimate that he had any purpose in preparing this advertisement to cover the timber of yourself and Mr, Swift? " Answer. I understood him that it was his calculation that it would just about cover the amount. " Question. When was that? "Answer. During the last summer. " Question. Before the advertisement came out? "Answer. Yes, sir. " Question. Who made that statement to you? " Answer. The Secretary of the Navy himself. He said he did not think he had authority to buy my timber; he did not wish to do any — thing about it but what would be entirely straight, and he did not feel authorized to make a purchase of this timber without advertising; and then if we put in for it-he knowing that we were the only persons that had the timber-at a higher price than they thought was a fair price, that he would not take it at any rate; mind you, I had already offered my timber to the government." The same witness further testifies as follows: " Question. Was it not understood between you and Mr. Swift, and live-oak dealers generally, that this advertisement was framed for the purpose of preventing competition, and to enable the Secretary to contract directly with Mr. Swift? "Answer. I always understood it so; that is, notfor Mr. Swift alone, for up to the time when I came here, after the advertisement was out, I thought it was for both of us." The same witness further testifies as follows:' Question. There is one statement of yours that I feel it my duty to question you further about. In answer to a question, you have said that you have always understood that it was the purpose of the department, in framing these specifications in the advertisement, to, exclude competition and to take your and Mr. Swift's timber. Do you say that it was the object of the department to prevent other people from coming in and underbidding you, if they could furnish it at the time at a lower price? " Answer. If you understood me to say that, I do not think I understood the question. My explanation now would be, that the Secretary of the Navy knew, and the chief of the bureau knew, that there was nobody else in all America that had the timber and could put it in at such a time but Mr. Swift and myself. There was not any such timber in the United States that was already got out except ours. There was nobody else in the business but Mr. Swift and myself who could furnish it. The Secretary knew there was no such timber any where else in the market. But he told us distinctly that if we did not put it in at a reasonably fair price they would not take it at all." The explanation of the Secretary does not conflict with the testimony this witness, nor does it touch the point which the testimony quoted NAVAL CONTRACTS AND EXPENDITURES. 35 tends to establish. If there was a conflict between them, the high official station of the one, as a functionary of the government, should be a guaranty against any attempt to mislead; and it would be an ungracious task, to say the least, to balance between his statement and the testimony of the witness, although the latter stands in a favorable condition to obtain credence. He is free from the suspicion of prejudices engendered by disappointed expectations; has no grounds of complaint for supposed personal or pecuniary wrongs imposed by the Secretary, and is not a heated political partisan. Whatever may be the true state of the facts in regard to the Secretary's intention concerning these contracts, and however much the committee would condemn any personal favoritism to the public detriment, they are gratified to perceive that the Secretary seems never to have lost sight of the public interest. They find the wideness of this in his repeated assurances to Messrs. Swift & Bigler, if they bid cC at a higher price than he thought was a fair price he would not take it at any rate." They find it in the unusual clause already referred to, inserted in the advertised proposals, "reserving the right to decline making any contract, if it (the department) shall then deem it unnecessary or disadvantageous to the public service." The provision was doubtless inserted to protect the government against the imposition of exorbitant bids, when it was expected there might not be more than one or two bidders. They fin(d still further evidence of this in the reasonable price at which the contracts were actually and finally taken, it being proved that the average rate is lower than similar contracts had previously been made, and as low as any one could have furnished the timber and realized a reasonable profit for his labor. Your committee are of opinion that the timber contracted for in this case was a kind proper to be kept for the repair and construction of small vessels, and they are now prepared to say it could have been purchased materially lower under any circumstances.-(See the testimony of Samuel B. Grice, Lenthall and Bigler.) And if the policy of keeping the yards supplied with suitable timber is to continue, your committee cannot see that the transaction is in any way a disadvantageous one to the government, cer — tainly it is not in contravention of law. Before concluding their report on this branch of their inquiry, yourcommittee deem it proper to notice a contract between Mr. GeorgePlitt, as proved by Plitt himself, and W. C. N. Swift in regard tot obtaining contracts with the government. It appears that in 1854Plitt and Swift entered into a written contract, by which the former undertook to use his influence with the officers of the government, with several of whom, in high positions, he was supposed to be om terms of intimacy, both personally and politically, to procure live-oak contracts for the latter, and for which the latter was to pay him ten per cent. upon the amount of all-live-oak contracts he obtained from the government. Plitt alleges that he has performed his part of the agreement, having taken pains to introduce Swift to various officers of the government, and to recommend him as a man of honor and probity. He introduced him to Mr. Buchanan and Mr. Toucey, and recommended him in terms of high commendation, informing the 36 NAVAL CONTRACTS AND EXPENDITURES. latter that he had contributed very liberally towards the election of 1856, &c. Swift had, after 1854, and prior to the contract of September, 1858, obtained some live-oak contracts from the government; and after obtaining the last mentioned one wrote to Plitt, repudiating his contract with him, never having paid him anything under it. Shortly after receiving this letter, and between the 15th of October and 15th of November, 1858, Plitt, for the first time, mentioned the contract between himself and Swift to the President, and showed him the written agreement, and asked his advice about it. Plitt says: "The President very properly told me that it was no affair of his; it was an agreement made long before he came into power, and if my attorney thought I could recover in a court of justice, I ought to do so." He also said " he had, of course, no advice to give, and said I might do as I pleased about it.' This, it must be remembered, was subsequent to Swift's last contract for timber. Your committee believe they could not condemn such contracts in too strong terms, as against public policy and most demoralizing in their tendency. They are not only a bid but offer of a premium, indirectly, to say the least, for corruption. They are a temptation to the parties to the practice of deception and falsehood. They are nothing less than making merchandise of the social relations and personal confidence which may very properly exist between those occupying high official stations and the private citizen, and, if tolerated, must result in making the government the daily victim of duplicity and fraud, or in placing an impassable barrier to all social intercourse between high officials and the mere citizen, which would be contrary to the genius of our government. However much your committee may condemn such improper contracts, they feel called upon to say they do not perceive any ground to attach blame in this instance either to the President or the Secretary. It does not appear that the Secretary was ever informed of its existence, and of course never countenanced or knowingly encouraged it. It does not appear that the President was ever informed of it until a period between October 15 and November 15 last, and then summarily disposed of it by saying "he had no advice to give;" "that it was no affair of his." Here his connexion with the subject began and ended; and here your committee dismiss it. CONTRACTS FOR MACHINERY FOR VESSELS. These contracts have been the subject of much outside rumor and complaint. The committee have, therefore, sought for all the information they could obtain in regard to them, and it is herewith presented. It is full and satisfactory. The contracts about which there has been complaint are the following: that relating to steam machinery for the "Lancaster," built under the act of Congress approved March 3, 1857, and those relating to steam machinery for the vessels now building under the act of Congress of June, A. D. 1858. The bids for the machinery of the Lancaster were as follows: NAVAL CONTRACTS AND EXPENDITURES. 37 Scate of offerssfor steam machinery for screw propeller ship-of-war building in the Philadelphia navy yard, under advertisement of November 19, 1857. Merrick & Sons................ $145,000 Murray & Hazelhurst.............................. 138,000 Reaney & Neafie................................ 137, 500 Woodruff & Beach........................... 126,000 The difficulty in this case was to decide between the plans of Merrick & Sons and Reaney & Neafie. They were both good, and preferred to the others. After much consideration the contract was awarded to Reaney & Neafie. Their bid was $7,500 lower than that of Merrick & Sons. The lowest bid was that of Woodruff & Beach, but no one of the engineers approved their plan in comparison with those of the others. It is claimed there is a family relationship between Beach, of this firm, and the Secretary of the Navy. We may allude to this hereafter. We proceed now to a brief examination into the awards of contracts for the machinery of the vessels now building under the act of June, A. D. 1858. This act of Congress directed the Secretary of the Navy to cause to be constructed " as speedily as may be consistent with the public interests," eight war steamers, of light draught, "combining the heaviest armament and greatest speed compatible with their character and tonnage." One of these vessels is being built, we believe, by the government. On the 26th of July last the Secretary of the Navy invited sealed proposals for the steam machinery of the remaining seven. The circular of the Secretary calling for these proposals is in strict accordance with the directions of the law of Congress under which he acted. It states, among other things, that it is "the object of the department to procure machinery which can develop great power when required, so as to insure high speed," &c., &c., and with this view requires the bidders to guaranty certain results. It gave them until the 8th of September to prepare their plans. The terms of the circular seem to have been satisfactory. The leading engine establishments of the United States, situated in New York, Philadelphia, Boston, Baltimore, and Hartford, made proposals. There were fourteen bidders and, in all, forty-four bids. They were as follows: Small sloop, Boston, 750 horse-power. Morgan Iron Works, New York. $110,000 Locomotive Works, Boston"- $104, 000 James Murphy & Co., New York- 107, 000 Atlantic Works, Boston -- - 100, 000 Allaire Works, New Yorkt —... 97, 000 Woodruff & Beach, Hartford.... 118, 000 Large sloop,.New York, 1,000-horse pozer. Morgan Iron Works, New York. $137,500 Allaire Works, New York - $1e05, 000 James Murphy & Co., New York:' 130, 000 Novelty Iron Works, New, York — 97, 000 West Point Foundry, New York- 130, 000 Woodruff & Beach, Hartford ---- 125, 000' Accepted bid. t Lowest bid. 3 8 NAVAL CONTRACTS AND EXPENDITURES Small sloop, Pensacoa, (direc-action engines,) 750-horsepower..Reaney, Neafie & Co., Philadelphia $153, 000 Woodruff & Beach, Hartford —-- $118, 000 Jiames Murphy & Co., New York. 127, 000 Locomotive Works, Boston —,, 115, 000 Morgan Iron Works, New York::- 120, 000 Murray & Hazelhurst, Baltimoret 100, 000 West Point Foundry, New York. 118, 000 Large sloop, Norfolk, 1,000-horse power. Beaney, Neafie & Co., Philadelphia $152, 000 Woodruff & Beach, Hartford —--- $125, 000 Morgan Iron Works, New York.. 142, 000 Murray & Hazelhurst, Baltimore 115, 000 Novelty Iron Works, New York- 100, 000 C. Reeder, Baltimoret-.. —----- 94, 000 Large sloop at Portsmouth, Nrew Hanmpshire, 1,000-horsepoower. Morgan Iron Works, New York - $143, 000 Allaire Works —---------- $110,000 West Point Foundry ---- 136, 000 Novelty Iron Works —-------- 98,500 James Murphy & Co ----- - 135, 000 Woodruff & Beach, Hartford -:- 125, 000 Small sloop, Philadelphia, 1,100-horse power. MIorgan Iron Works, New York-. $110, 000 Wi. Norris, Philadelphia ----- $126, 000 Allaire Works, New York ----- 97, 000 Murray & Hazelhurst, Baltimoret 90, 000 Reaney, Neafie & Co., Philadelphia 135, 000 Woodruff & Beach, Hartford..,. 118, 000 Large sloop, Philadelphia, 1,000-horse power. Reaney, Neafie & Co., Philadelphia $145, 500 Novelty Iron Works, New Yorkt $98, 000 Merrick & Sons, Philadelpnia' -.- 102, 000 Murray & Hazelhurst, Baltimore. 110, 000 Morgan Iron Works, New York- 141, 000 Woodruff & Beach, Hartford ---- 125, 000 Allaire Iron Works, New York - 110, 000 On the 20th of September the Secretary appointed a Board of Engineers to open and examine these bids and report to him which of them should be accepted. Each engineer, in order to secure his individual examination and opinion, was required to make a separate report in writing. This board consisted of Samuel Archbold, engineer-in-chief of the United States navy, W. W. Wood, Henry Hunt, and Daniel W. Martin, chief engineers. This course of the Secretary your committee find to be such as has been pursued heretofore, and they regard it as very proper. It differs from the former practice only in the increased caution of the Secretary in requiring each member of the board to make a report of his opinion. The persons chosen are engineers of long experience and high standing. No witness has expressed a doubt of their qualifications to sit on such a board, nor of their integrity or impartiality. Reference has been made to Mr. Martin as being liable to be influenced in his decision by reason of his interest in the "Martin boiler." We will notice this hereafter. Let us now examine briefly their action: 1. The contract for the machinery of the small sloop at Boston was awarded to the' Locomotive Works," situated at that place. There were six bids for this contract, two lower and three higher than that of the party to whom it was given. No one of the board recommended the plan of either of the lower bidders; all concurred in objections to them. One engineer recommended the plan of the Morgan Iron Works, New York, at $110,000; another that of Murphy & Co., New York, at $107,000. Two recommended that of the "Locomotive - Accepted bid. t Lowest bid. NAVAL CONTRACTS AND EXPENDITURES. 39 Works," Boston, at $104,000, and the contract was awarded to them. This seems to be right. It is not pretended that any improper influence was used in getting the contract, nor is the standing or responsibility of the establishment questioned. 2. The contract for the machinery of the large sloop at New York was awarded to James Murphy & Co., New York. Of the six bids in this case, three were lower than the one accepted. One of the board reported in favor of the Novelty Works; the remaining three in favor of Murphy & Co. The bid of the " Novelty Works " is $33,000 lower than that of Murphy & Co. This is a wide difference, and we do not feel qualified to decide whether there is this difference in the merits of the plans. Both the bidders included in their plans what is known ~as the Martin boiler. It is proper to add, in this connexion, that the contract should not necessarily be given to the lowest bidder, having reference to price only. Every plan of engine is different-different in arrangement, different in its fitness, and different in its cost to the builder, and its intrinsic worth. A primary object is to obtain the one which will best answer the purpose of the government. The Morgan Works, New York, proposed a plan of engine for this vessel at a price $40,000 higher than that of the Novelty Works, and Mr. Quintard, one of the proprietors of the establishment, testifies that a plan of engine that could have been built for $97,000 would not, in his opinion, have been suitable for the ship. We will only add, that no improper influenceg in getting this contract are shown, and that no witness has called in question the reputation and responsibility of the house of Murphy & Co. They are shown to be satisfactory and reliable. 3. The contract for the machinery of the small sloop Pensacola was given to the Morgan Works, New York, at $120,000. The bids ranged, in this case, from $100,000 to $153,000. There were in all seven plans submitted for this vessel. But two of them received the approval of the board. These were the plans of the Morgan Works and the Boston Locomotive Works; and upon these the board was equally divided. Mr. Archbold, who favored the plan of the Locomotive Works for this ship, had recommended the Morgan Works for the Boston ship, at $110,000. This latter ship was awarded to the Locomotive Works at $104,000. It is supposed by the committee that it was not considered expedient to award two contracts to one establishment; that it was considered desirable to distribute them, if it could be done with propriety, in order to increase the rivalry among contractors. For these reasons your committee think it was right to give this contract to Murphy & Co., who were preferred by one-half the board, and were also preferred by another member of the board for the Boston ship, which was awarded to the competitor for this. The testimony does not show that any political or improper influence was applied by any one to obtain this contract. The establishment to which it was given is responsible and reliable. 4. No contract was given on the first bids for the Norfolk sloop. Two of the board reported in favor of Reeder, one (Martin) against his boiler, and the fourth in favor of Reaney, Neafie & Co. We give the following testimony on this point: 40 NAVAL CONTRACTS AND EXPENDITURES. Iartin's deposition: " Question. in your opinion you use this language: " Mr. Reeder's, plan of engines is good and his price satisfactory, but his plan of boiler I cannot recommend; if they were made satisfactory I would recommend him for the Norfolk ship." " Answer. That was not on account of its not being my boiler, but in the way it was arranged; it was the same plan that had been tried in the Princeton and had proved to be a failure. Knowing it to be a. failure, I could not recommend it again in that form, but proposed some modifications, which I do not now remember." Archbold's deposition: "Question. Did he get the contract? " Answer. No, sir. There were two members of the board who reported in favor of his plans: one reported in favor of the engines and against his boilers, and the other objected to his plans in toto. "Question. What was the result? "Answer. I believe he gave up his right to the contract, or something to that effect.' Question. Do you not know that he was deterred from presenting his bid? "Answer. I did not deter him; I do not know who did. C Question. What was the final result of that matter? "Answer. There was a new board ordered and new bids were given. Question. Who got the contract? "Answer. Murray & Hazelhurst, of Baltimore. C Question. For how much? was it not $120,000? "Answer. I think it was over that —131,000 for 14 miles per hour. They had a speed bid." Reeder withdrew his bid, we suppose, because he found it too low. New proposals were called for, and it would seem that the terms were varied, and called for a quantity of speed. The following are the. second bidders:' Atlantic Works —geared, $130,000, six months; direct, $125,000O six months. " Murray & Hazelhurst-geared, $131,000, eight months; direct, $120,000, eight months. Fulton Foundry-geared, $138,000, seven months; direct, $129,000, seven months. " Reaney, Neafie & Co. -gared, $145,000, seven months; direct, $135,000, seven months. "Boston Locomotive Works-direct, $120,000, seven months. "Novelty Works —geared, 1.30,000, six months; direct, $125,000, six months." Two kinds of engines were called for, the geared and the directacting. For the direct-acting engine, Murray & Hazelhurst and the Boston Locomotive Works were the lowest and equal bidders; and for the geared engine, Murray & Hazelhurst were the next lowest, and $1,000 higher than the lowest. The majority of the board which sat upon these proposals, consisting of Chief Engineers Williamson, NAVAL CONTRACTS AND EXPENDITURES. 41 Everett, Stimers, Isherwood, and Whipple, reported in favor of Murray & Hazelhurst, and they received the contract. There is no testimony criticizing in any way this award, or the price to be paid, or the plan of machinery, or the qualifications and responsibility of the contractors. We come now to the contracts about which there has been cornplaint and a more extended inquiry. 5. The contract for the machinery of the large sloop at Portsmouth was given to Woodruff & Beach, Hartford. There were six bidders, two lower and three higher than the parties who received it. Neither of the low bids was approved for this contract, but every member of the board approved and reported in favor of the plan of Woodruff & Beach. There is not a particle of evidence pointing to unfairness or partiality in this award. All that has been attempted has been to show that there was some relationship between the Secretary and Mr. Beach, of this firm. And what has been the result of this attempt? We give it in the language of the witness: "Question. I wish to obtain from you the precise relationship of Mr. Beach, of the firm of Woodruff & Beach, to the Secretary? "Answer. Mr. Toucey, George Beach, sr., and George Beach, jr., married sisters by the name of Nichols. C. Nichols Beach, of Philadelphia, of the firm of Tyler, Stone & Co., is a son of George Beach, sr., by the sister of Mrs. Toucey; Henry B. Beach of Hartford, of the firm of Woodruff & Beach, is a son of George Beach, sr., by a former wife." That is, Mr. Beach, of this firm, is a step-son of the sister of the lady married by the Secretary. Our vision may be obtuse, but we see no relationship here, and, regardless of it, we report that nothing has been brought before us tending to excite the slightest suspicion of favor or partiality in awarding this contract. The testimony of Mr. Beach is reported, and worthy of attention. It shows there never has been any intimacy between the Secretary and himself. 6. Next in order is the contract for the machinery of the "Griffith' sloop. The struggle for this contract has been earnest and protracted, resulting in much disappointment and unusual complaint by one of the unsuccessful bidders. The case is briefly this: Upon opening the bids in September it was found there were six bidders for this machinery, four of which were lower and one higher than that of Mr. Norris. But it was further found and reported by the engineers that an untrue and incorrect model of the ship had been sent to those proposing to bid. This arose from a peculiarity of this model, unknown to the department at the time of the advertisement of July 26, 1858. Mr. Norris alone had been furnished with the necessary information. Very properly, therefore, new proposals were invited. Two of the September board, Messrs. Archbold and Martin, condemned the plan of Mr. Norris; the other two, Messrs. Wood and Hunt, said nothing for or against it, but merely reported that other bidders had not been given the proper information to prepare their plans. 42 NAVAL CONTRACTS AND EXPENDITURES. Under these circumstances, the department, on the 2d of October, addressed a letter to all who had previously bid for this machinery, but no others, inviting them to bid again, and furnishing them a drawing showing the midship section and correct plan of the vessel. They were given until the 2d of November to prepare new plans. But three bidders appeared. They are here given. In the meantime, Mr. Norris, knowing that Archbold and Martin, of the first board, had condemned his plan, requested the Secretary not to put them on the new board. The Secretary acceded to this request, and on the 4th of November made a new board, consisting of Chief Engineers Wood, Hunt, Everett, and Whipple. On tEe 8th of November each member of this board made his report in writing. Before this, however, and as early as the 2d of that month, Mr. Norris brought to bear what he seems to have considered an additional recommendation of his plan of machinery. It appears, in his letter to the Secretary, dated Washington, November 2, 1858. We give an extract from it: " On the score of politics, which I have never mentioned before, I have greater claims upon the government than my competitors. Our shop at Bush Hill, Philadelphia, was the first institution in this country that raised the banner of Buchanan and Breckinridge. The day after the nomination we raised the standard with full length portraits of the President and Vice President, and at the election our shop furnished 764 votes for them. Notwithstanding the present monetary depression, we gave 312 votes for the administration at the last election. We have supported the party with material aid by thousands of dollars, and worked hard, as any of the party in Philadelphia will testify. "Now, my dear sir, our competitors in Philadelphia were most violent working opponents against the present administration, as is well known in Philadelphia." Here politics makes its appearance very boldly. In regard to the five contracts we have previously considered, we have no evidence that it was brought to bear, but it appears here with great directness-not modestly, or indirectly through a friend. It is the bidder himself who presents it inpropria persona. It is strongly presented. The bidder comes bearing a banner on which are blazoned "full length portraits of the President and Vice President." But this is not all. Alas! for his competitors! They must be unmasked, if perchance they have disguised themselves, and therefore it is brought to light that they " were most violent working opponents against the administration, as is well known in Philadelphia." It is proper to notice that this extravagant political self-recommendation was interposed on the 2d of November, two days before the board was appointed and six days before it reported. Mr. Norris was inquired of on this subject, and he has testified, undertaking to explain why it was he resorted to political influence. He says it was because Messrs. Landy and Witte interfered for his competitors. He saw them at the office of the Secretary. We give extracts from his deposition: " Question. Please name the gentlemen who went in at that time? NAVAL CONTRACTS AND EXPENDITURES. 4 " Answer. Mr. Landy, now a member of the House of Representatives, was there. 4' Question. Who else? " Answer. Upon my word, I forget the others. Question. How many were there of them? " Answer. There were two members of Congress with Mr. Witte. The other gentleman I really do not recollect. I have forgotten his name. Seeing these gentlemen there was what first alarmed me, and started me off to get political aid. " Question. Up to that time had you obtained any certificates as to your political character? Answer. No, sir. * * * * * * * * " Question. When was this that you saw Mr. Landy and Mr. Witte at the Navy Department? " Answer. Some time in November. " Question. What part of November?' Answer. In the early or middle part; perhaps in the middle part; I have no recollection of it, only that it was just about the time I went off to Philadelphia, for seeing them there induced me to go. *3 * k^ * *',~ I " Question. How long previous? " Answer. It is impossible to say; that first induced me to return to Philadelphia. C Question. I wish you would put it within some limits; say that it could not have been earlier or later than such a time. Was it before the 15th of November? " Answer. I cannot say. If I could see the letter of John G. Brenner I could tell exactly. It was before November 15. "Question. How long before? "Answer. A day or two.' Question. Do you think it was as much as a week before? " Answer. I do not know; I cannot say. "Question. Could it have been more than a week before? "Answer. Let me calculate. [A pause.] It was on the Friday previous to the 16th of November; it was about the 12th or 13th of November. " Question. Your letter reporting yourself a democrat, and asking favor of the government on political grounds, was dated November 2? "Answer. Then it was in October that I saw Mr. Landy and the other gentlemen here." We now give some extracts from the testimony of Landy and Witte. Mr. Landy says: I I find, by reference to the books in which my name is recorded at the hotel, that I arrived here upon the 7th of November, which was after the election, that having taken place upon the second Tuesday of October. Upon reflection, I find a correction I would like to make. I replied that I thought I came here in company with Mr. Witte. I distinctly recollect now that at that time I came here alone. 5* * * * * * * 44 NAVAL CONTRACTS AND EXPENDITURES. "C Question. What representations did you make to him in regard to the matter?' Answer. That they were a very experienced firm, highly honorable and creditable men; that in all their undertakings, so far as marine engines were concerned, their labors had been crowned with the highest success; and I recommended them to the department, in view of the success of the establishment, and their ability to perform the work in a manner advantageous to the government. "Question. Did you suggest to the Secretary any political considerations?' Answer. None at all; none. "Question. Did you state anything about the political standing of this firm?'I Answer. No, sir; nothing at all." Mr. Witte, an ex-member of Congress, says: "Question. What inducements did you hold out to the department, or to any officer of the department, to give to Reaney, Neafie & Co. the last contract, or either of the contracts? "Answer. None other than that our house having a long experience in the construction of marine engines, especially propeller engines, and having, as I am informed by their books, built more propeller engines than have been built in the country; besides, it would be for the interest of' the government to give them the contract. I held out no other inducement except what their supposed superiority, skill, and ability to construct engines of that particular character afforded." We do not propose to dwell upon this feature of the case; but we think it is evident that Mr. Norris began this political movement. It seems to us the letter itself, without reference to other testimony, shows it; for we cannot but believe that if it had been predicated upon a similar movement, begun first by his competitors, the letter would have referred to it. The new board reported, on the 8th of November, the'" Allaire Works" was the highest bidder, and no one of the board approved their plan. Wood reported in favor of Reaney, Neafie & Co., saying, among other things, their plans, contrasted with those of Mr. Norris, comprise fewer parts, are less complicated, more accessible, and, in my opinion, best adapted to secure the object of the department." lie also referred, in his opinion, to the movement of the propellers. Each plan had two propellers. In Norris' plan they moved in the same direction; in Reaney, Neafie & Co.'s they moved in directions opposite to each other. Wood says of this: "I will add, the practice of engineers heretofore has been, where two propellers were used, to drive them in directions opposite to each other; and I know of no sufficient reason to change the practice, and would not do so, were the responsibility of the arrangement to devolve upon me." Hunt leaned to the side of Norris. He says: " There is so little difference in the engines offered by Mr. Norris and Reaney, Neafie & Co. as it regards what I consider will be their efficiency, that it is difficult to decide which to recommend, * and both their plans have not only good, but objectionable points about them. The engines of Reaney, Neafie & Co. are simplest in form NAVAL CONTRACTS AND EXPENDITURES, 45 but they necessarily occupy 130 square feet, or about 30 per cent. the most space in the vessel, and will not, in my opinion, be any more efficient than those of Mr. Norris. It is my opinion the condensers of Mr. Norris are best. Taking simply the plans and rspecifications as presented to the board, with the time and price for building, I would recommend accepting the bid of Mr. Norris." Everett reported in favor of Reaney, Neafie & Co.; Whipple in favor of Norris; and three of them were of opinion that the peculiar movement of Norris' propellers made no material difference. How stands the case now among the engineers? Two boards have examined Norris' plans. Of the first board two condemned them, and were, at Norris' request, left off the second board. The other two of that board neither approved nor condemned, but simply recommended new proposals. The second board was equally divided-two for Norris and two for Reaney, Neafie & Co. We thus have, in these boards, four engineers condemning Norris' plans. The reports were sent to the Secretary, and the case was now with him. His decision was suspended. Norris has seen Witte and Landy just about this time, and, no longer trusting to his great letter of the 2d November, begins afresh. He plies the Secretary with political letters and documents of all sorts. By the 16th of the month we find on file, among other papers, the following political letters: One from J. H. Baker, one from J. Hamilton, jr., and two from Hon. H. M. Phillips, and Colonel Florence appeared personally for him, If we could rely upon the recommendations on file by the 16th, we might well say, in the language of one of Mr. Norris' friends, that he stood before the Secretary on that day "personally, mechanically, and politically meritorious." But how was it with Reaney, Neafie & Co. at that time? They had presented no political letter, nor is it in proof they used such influence. We can only infer it, because Messrs. Landy and Witte represented them, and they deny they presented such considerations. There are papers on file in behalf of Reaney, Neafie & Co., but they are all pertinent, referring only to the engines. Among others is a letter of J. Ericsson, the inventor of the propeller, which closes with this statement: "The advantages of giving a contrary motion to the propellers in vessels of light, variable draught, or in a sea way, are too obvious to need any demonstration." In this state of suspense the Secretary again consults the engineerin-chief@, Mr. Archbold, and he, upon the 18th of November, again reported, for various reasons which he gives, that the plans of engines of Reaney, Neafie & Co. were "decidedly preferable" to those of LMr. Norris. On the same day the Secretary called for a board of outside engineers. This board consisted of Smith, Jones, and Corryell. They reported on the 2d of December-Smith and Jones for Norris, and. Corryell for Reaney, Neafie & Co. This ship, the "'Griffith," is of peculiar model, and may be regarded as an experiment to obtain speed. This is the chief result sought after in building it. On the 9th of December Reaney, Neafie & Co. addressed the department the following letter: 46 NAVAL CONTRACTS AND EXPENDITURES. WASHINGTON, D. C., December 9, 1858. DEAR SIR: We are informed that our proposition to give you fifteen miles per hour, as the speed of "Norfolk ship," in case the contract is awarded to us, has not been deemed worthy of notice by the Board of Engineers. That it should h]ave escaped their observation is impossible, and that it should be regarded as unworthy of comment is, to say the least, most extraordinary. We have always supposed, and we learn from your report just issued, that the aim of your department was and is "to combine speed and power with strength in the highest practicable degree." We beg leave, therefore, most respectfully to call your attention to that feature in our proposal which affords you a guaranty of a rate of speed never before attained by any vessel built for warlike purposes by this or any other government. We have the honor to be your obedient servants, REANEY, NEAFIE & CO. Hon. ISAAc TOUCEY, Secretary (f the Navy. P. S. We beg leave also to say that we will stipulate for even a higher rate of speed for the ship now building at the Philadelphia station, known as the " Griffith ship." R., N. & CO. On the 21st of December, twelve days after, Mr. Norris added to his specifications the following speed bid: WASHINGTON, December 31, 1858. SIR: I beg leave to add to my specifications now before the department for machinery for the ship under construction at the Philadelphia navy yard, by Griffith, naval constructor pro tempore, (reserving the right to modify certain parts of said machinery,) the following: 1. I guaranty the speed of the ship twenty miles per hour. 2. The cost of the machinery shall be one hundred and eighty thousand dollars, ($180,000.) If, upon the trial trips, the ship does not make the speed of twenty miles per hour there shall be a reduction of $10,000 from the cost price for each and every mile lacking the speed of twenty miles per hour as guarantied, reducing the cost as follows, viz: For a speed of 19 miles, $170,000; for a speed of 18 miles, $160,000; for a speed of 17 miles, $150,000; for a speed of 16 miles, $140,000; for a speed of 15 miles, $130,000, &c., &c., &c. Your obedient servant, very respectfully, WILLIAM. NORRIS. Hon. ISAAC TOUCEY, Secretary of the Navy. On the same day Reaney, Neafie & Co. particularize what they had. agreed to intheir communication of the 9th, and stipulate for a speed,, NAVAL CONTRACTS AND EXPENDITURES. 47 under favorable circumstances, of sixteen miles per hour on the trial trip, under a forfeiture of $15,000 if fifteen miles only is attained, or $7,500 for each half hour between fifteen and sixteen miles which they fail to accomplish. With their propositions so modified, the parties stood as follows: Norris guarantees 16 miles per hour for $140,000; Reaney, Neafie & Co., the same, for $139,000; Norris guarantees 15 miles per hour for $130,000; Reaney, Neafie & Co., the same, for 124,000. From this it appears that Reaney, Neafie & Co's proposition was $1,000 less than Norris' for a speed of sixteen miles per hour, and $6,000 less for a. speed of fifteen miles per hour. The Secretary submitted the specifications, as amended, to the engineer-in chief, and he, on the 21st of December, reported in favor of Reaney, Neafie & Co. The contract was given to them, and in it they have guarantied speed at the prices fixed. Mir. Norris, disappointed by this termination of a long contest, has complained to the department and has complained to the public. He has charged that his plans were furnished to Reaney, Neafie & Co. In this he is mistaken. Your committee are of opinion that no partiality or favor has been shown to Reaney, Neafie & Co. in this transaction. On the other hand, it seems to them that Mr. Norris was most highly favored in preparing his plans, and had advantages enjoyed by no other bidders. It is abundantly proven that he and Griffith, the naval architect, worked together from the beginning that the engine was planned as the model was planned, and that they progressed together, architect and engineer being in constant mutual consultation. It is proper to state that the Martin boiler was in neither of these plans of machinery. We think it fortunate for the Secretary it so happened that his anxiety to obtain a good result and his sense of duty conducted him to the decision he at last made. Had this contract been awarded to Mr. Norris, considering his own political standing and the influence of this kind he brought to bear, in comparison with the more obscure political standing of Reaney, Neafie & Co., and the apparent absence of all such influence on their part, it might have been that the Secretary would have been charged with political partiality. For ourselves, we are of opinion that politics had no effect whatever in determining this result. It would seem that the plans offered by both parties were good, and worthy of the patient and repeated examination they received. The one party, Norris, is famous here and abroad in connexion with land engines or locomotives; the other, by long experience, has acquired an excellent reputation as builders of marine engines; and both seem to be reliable and responsible. We approve this award. This brings us to the last of the seven contracts. 7. The contract for the machinery of the large sloop at Philadelphia was awarded to Merrick & Sons, of that city. There were seven bids in this case; one lower, $4,000 lower, and five higher than that of the successfhl party. The bids range from $145,000 to $98,000. That of Merrick & Sons is $102,000. No one of the board recommended the plan of the lower bidder; every member of it recommended that of Merrick & Sons. A comparison of the bids, and an examina 48 NAVAL CONTRACTS AND EXPENDITURES. tion of the reports of the engineers, coupled with the high standing of the contractors, render obvious the propriety of granting to them this contract. This and the award of the Portsmouth ship are the only ones in which the board was unanimous in their opinion, and we would not notice it further were it not that, in the evidence, attention has been called to a letter of W. C. Patterson to the President, dated September 13, 1858. We here give it: PHILADELPHIA, September, 13, 1858. DEAR SIR: I venture to suggest to you the importance of awarding the contracts for the machinery of the sloop now building at the navy yard at this time, and, if it can be done without prejudice to the public service, to Merrick & Sons. Theirs is the only establishment in the first district which employs a large number of mechanics; at this time, 390; when in full work, 450. The managing partners (Mr. iM., senior, being absent in bad health) are fill of energy, straining every nerve to keep their force during this depression, and, in so far as I know, the only old whigs of any influence in that district who are in favor of the re-election of Colonel Florence. I know, from former experience, the value of that influence, and feel persuaded that it is the interest of the democratic party to increase it. The first district will, I hope, be carried in any event, but with that.shop at work lull-handed two weeks prior to the election the result would, I think, be placed beyond all doubt. With much respect, W. C. PATTERSON. The PRESIDENT. [Endorsement.] "SEPTEMBER, 15, 1858.' The enclosed letter from Colonel Patterson, of Philadelphia, is submitted to the attention of the Secretary of the Navy. " J. B.' We think it is very evident that the President expressed no wish and interfered in no way in the award of this contract. It was not a case that called for interference or allowed it. The lowness of the bid, the unanimous recommendation of the board, and the high character of the contractors, very properly and promptly fixed the result. There was no actual competition and no contest. The following testimony gives the history of this letter and the practice of the President in such cases: "FEP.BRUARY 9, 1859. 6' HENRY M. McGILL called and examined. " By Mr. Bocock: "Question. What is your official position? "Answer. I am assistant to Mr. Henry, who is private secretary of the President. NAVAL CONTRACTS AND EXPENDITURES. 49 "Question. What is your business in that position? "Answer. Sometimes opening the President' s mail, endorsing letters for him, and recording commissions. I am kept in the office for that purpose. " Question. Do you know anything of that letter? [showing witness the letter of W. C. Patterson to the President, bearing date Philadelphia, September 13, 195, and which will be found in the Appendix.] "Answer. Yes, sir. "Question. Whose endorsement is that on the back of the letter?'Answer. It is mine. "Question. By whose direction was it made? "Answer. By the general direction of the President. I endorse nearly all his letters. "Question. Was there any special direction in regard to that letter? "Answer. No, sir. "Question. I want to know what the custom of the Presidentis when he receives letters referring to business before the executive departments? Do you endorse them as a general thing? "Answer. Yes, sir; I endorse, in fact, nearly all the letters that come to him. I take them in, in the morning about nine or ten o'clock. He reads them over generally, or reads the endorsement on them merely, and directs us to refer them to the departments, navy, war, &c., as the case may be. Sometimes he takes them and marks on the back of the letter a reference to the Secretary. That is the general practice with all the letters. " Question. Is it common for him to make endorsements on the back of letters, referring them to the department to which they relate? " Answer. Yes, sir, very common. "Question. Do you mean to say that it is his custom, whether he approves the recommendation or not? "Answer. Certainly; whether he approves or not, it is a custom of his. My understanding was, when he made that endorsement, that it was merely to draw the attention of the Secretary to the fact that there was such a letter existing. "Question? Do you know anything of that endorsement? [showing witness the endorsement on the envelope, signed "J. B." ]'Answer. Yes, sir. "Question. Whose handwriting is that? "Answer. The President's, sir. "Question. Is that the general form of endorsement for letters relating to the heads of the departments? "Answer. Sometimes he uses one form and sometimes another; sometimes it is, "referred to the Secretary of the Interior," &c.; sometimes it is, "submitted to the consideration," and sometimes, "submitted to the attention" of the Secretary. He does not confine himself to any one form. " Question. From your knowledge of his habit in this respect would you be able to say whether that was a favorable or unfavorable endorsement? H. Rep. Con. 184 4 50 NAVAL CONTRACTS AND EXPENDITURES. " Answer. No, sir. I take it he did not mean to be understood one way or the other, from his general habit; it is the same formal reference that he makes with the other letters. "' Question. I would like to ask you whether the President, no matter what may be the character of the letters, destroys them, or is it his practice to send them to the different departments?' Answer. Yes, sir; he sends every letter to the departments, unless it is a silly letter, or a, crazy letter. I know further that the President has never interfered with the giving of contracts. I have heard him express himself to that purpose. Upon one occasion, when a gentleman wrote to get a contract for wood, he directed his private secretary, in my presence, to write to the applicant and tell him his application should be made to the Secretary; that he never interfered with contracts." Tho following statement from the Secretary's communication confirms the foregoing: " The contract given to Messrs. Merrick & Sons, of Philadelphia, in regard to which a letter from Colonel Patterson to the President was by him, in the usual course, without an intimation of any wish on his part, referred to this department, was awarded to them upon the merits of their plan and proposals, in accordance with the unanimous opinion of the board of engineers; their bid being lower than those of the other bidders whose plans were approved. The President did not in any manner interfere in this case, nor has he in any other case of contract since I have been in the department." The party relations of the firm of Merrick & Sons are given by Mr. Merrick in his testimony: " Question. What are your party relations? "Answer. They are not of a very decided character, one way or the other. We have never taken a very prominent part in politics, and we have studiously kept from influencing our men in any way. I believe that no member of our firm has ever belonged prominently to the democratic party, but that, generally speaking, the sympathies of one or two of our firm have been upon the other side. I mean in reference to former times. I believe my father was what was called an old line whig; but neither my brother or myself, who constitute the remaining members of the firm, have ever taken any prominent part in politics. I do not think my father has ever taken any at any time. We have never endeavored to influence our men in any way, one way or the other." The letter was received by mail from Philadelphia. No special direction was given in regard to it, but it was endorsed in the usual form, it being a custom of the President not to destroy but to send all letters to the department to which they related, whether he approves them or not. The very fact of sending the letter to the department to be there preserved, and produced and made public upon any call for information, as it has been now, is to us satisfactory evidence that the President did not mean to be considered as at all interfering in the matter. Your committee are aware of the very general practice which has long prevailed of addressing, by letter and verbally, to the officers of he government, recommendations based in whole or in part upon NAVAL CONTRACTS AND EXPENDITURES. 51 political considerations. The practice cannot be too strongly condemned, especially so where it is resorted to with a view to affect the award of contracts. It was resorted to in two of the seven cases of contract we are now examining, but as your committee believe with no advantage or success. We have now gone over the seven contracts for the machinery of the war sloops. With a brief reference to one other matter, we will dismiss the further consideration of this subject. Daniel B. Martin, a chief engineer of the United States navy, was a member of the board which awarded five of the contracts. He is the patentee of what is known as the Martin boiler, and expects and receives a patent fee from those who use it. We believe his boiler to be a good one for marine engines, and could it be used as other boilers without charge it may be it would go into very general use. It has been extensively introduced into the vessels of the government, and was included in nearly all the plans offered in these cases. Martin was not on the board during the contest between Norris and Reaney, Neafie & Co., nor was his boiler proposed by either of the parties. He was not on the second board, the one which awarded the contract for the Norfolk ship; he was on the first and objected to Reeder's boiler, because it was the same which " had been tried in the Princeton and had proved a failure," but he did not object to it because it differed from his. Mr. Reeder afterwards withdrew his bid, but not for this cause. In the opinion of the committee he could have had the contract if he had wanted it. Martin, as we have said, was on the board which decided upon the other contracts. There were twelve different bidders upon these contracts, and, in all, thirty-two bids. Archbold testifies that all of these bidders but the Atlantic Works, of Boston, and the Allaire Works, of New York, included the Martin boiler in their plans. No one of the engineers, in any single instance, approved the plans of either the Atlantic or the Allaire works. The objections are stated in the reports as follows: " THE ENGINES OF THE ALLAIRE WORKS. " Boilers: insufficiency of steam room. Engines: disk valves in air pumps, or foot and delivery valves, standing vertically, the greater quantity of coals being stowed over boilers; declining to conform to the specifications of requirements of the department without extra compensation. "Objections concurred in by all the members of the board. " ATLANTIC WORKS, EAST BOSTON. Method of condensing arrangement decidedly objectionable. The plan proposed for sea steamers never having been successfully applied, the board being opposed to trying experiments promising so little success on such a large scale. "Engines.-Cylinders of too small capacity to develop the power required, without excessive and objectionable pressures of steam. 52 NAVAL CONTRACTS AND EXPENDITURES. "c Boilers.-Grate surface being entirely inadequate and insufficient for the purpose, with the impracticable length of eight feet bars. " Objections concurred in by all the members of the board." All of those among whom there was real competition had the Martin boiler. Engineer Everett says: "Question. You have said that it was a common practice to refer to boilers in alternative in the bids; I will ask you to state whether in the boards in which you have sat the character of the boiler has been a chief subject of examination? "Answer. Not a chief subject. In determining a contract I do not now recollect an instance where the kind of boiler controlled the determination. " Question. You do not know an instance where it decided the opinion of the board in making the award? " Answer. No, sir, not one." Others testify to the high standing and good judgment of Mr. Martin. As already stated, all the actual competitors before the board, of which Mr. Martin was a member, presented plans including his boiler, and therefore there could have been no preference on that score. While this is so, and though the committee have no reason to intimate even that the result would have been different if Mr. Martin had not been on the board, they think it would have been more proper and satisfactory if another person had been selected. In conclusion we would say, it is our opinion that the Secretary has done well in this matter. With all the knowledge we now have, at the end of this laborious and protracted investigation, we would not venture or desire to change one of these contracts. We believe they have been carefully, impartially, and stringently made, and with a view only to carry out, in letter and spirit, and at the lowest practicable cost, the provisions of law which directed the construction of these vessels. In this connexion your committee will not omit to allude to some evidence in this case tending to involve the Hon. J. Glancy Jones. This is mainly the testimony of the Hon. William H. Keim, of Pennsylvania, in which he says that, as secretary and treasurer of the Reading Forge Company, in the year 1854 he made an agreement with Mr. Jones, then a member of the House of Representatives, that the latter should obtain contracts for work for said company on a commission of five per cent. This alleged contract was never reduced to writing; no trace of it appears on the books of the company; the precise terms in which it was made, so necessary for its proper construction, are not claimed to be given. Mr. Jones appears never to have claimed its benefit, nor received anything in its fulfillment. Under the circumstances an explanation from Mr. Jones was in every way desirable. Every other person who appeared to he implicated had that privilege. It is a feature interwoven in alI our system of liberty, that no man shall suffer without the privilege of being heard. As Mr. Jones was out of the country and could not be notified in time to make response, your committee are of opinion, NAVAL CONTRACTS AND EXPENDITURES. 53 under the circumstances, that it would be improper to express any opinion upon this portion of the testimony. After this long and searching examination into the branch of the service under his supervision, the committee deem it due to themselves to state the fact that nothing has been proven impeaching the personal or official integrity of the Secretary of the Navy. They propose the following resolutions, asking leave to report a bill hereafter: RESOLUTIONS. I Resolved, That the testimony taken in this investigation proves the existence of glaring abuses in the Brooklyn navy yard, and such as require the interposition of legislative reform; but it is due to justice to declare that these abuses have been slowly and gradually growing up during a long course of years, and that no particular administration should bear the entire blame therefor. 2. Resolved, That it is disclosed by the testimony in this case that the agency for the purchase of anthracite coal for the use of the navy has been for some time past in the hands of a person wholly inefficient and grossly incompetent, and that reform is needed in the regulations which exist on that subject; but there is no proof which traces any knowledge of such inefficiency and incompetency to the responsible authorities in Washington, nor any which shows that the need of reform grows especially out of any act of theirs; but, on the contrary, it is expressly proven that the supply of coal for the naval service has been purchased during this administration upon terms relatively as favorable as ever heretofore. 3. Resolved, That while we could never sanction or approve any arrangement on the part of an officer of the government which, under pretence of making contracts for supplies, was designed to confer especial and exclusive favor on individuals, yet, in the contract entered into in September, 1858, between the Navy Department and W. C. N. Swift, for the supply of live-oak to said department, it is clearly proven by the testimony that if the Secretary of the Navy did contemplate any favor to said Swift, he did not design to bestow it to the detriment of the government, but that in all he did in this matter he kept always in view the good of the public and the interests of the service. 4. Resolved, That in the letting of the contracts for the construction of the steam machinery for the vessels of the navy during the present administration, nothing has been shown which calls for the interposition of the Congress of the United States; but it is manifest that the present head of the Navy Department has displayed a very laudable zeal to secure the greatest amount of speed and efficiency attainable for said vessels. 5. Resolved, That nothing has been proven in this investigation which impeaches, in any way, the personal or official integrity of the Secretary of the Navy. 54 NAVAL CONTRACTS AND EXPENDITURES. Statement of the number of workmen employed at the several navy yards in each half month of the year preceding the 1st day of December, 1858. IDecemb0er 1 to 15....564 1, 2G6 1,479 646 863 17558 450 December 16 to 31. 544 1, 370 1,390 480 857 1,625 445 1858. 1 0 1,74 1857. December 1 to 15...- 564 1,256 1,479 646 863 1,558 450 297 December 16 to 31-28 544 1,370 1,390 480 857 1,625 445 1858. January I to 15 —--- 538 1,251 1,426 574 785 1,540 410 {358 January 16 to 31 -—. 533 1,243 1,429 653 750 1,714 464 February 1 to 15 —. — 516 1,237 1,302 695 722 1,749 448 304 February 16 to 28..- 438 1,288 1,288 709 683 1,756 424 March 1 to 15....... 438 1,268 1,365 766 687 1,718 423 3 March 16 to 31..... 435 1,074 1,409 785 672 1,580 433 April 1 to 15..-..- 526 1,079 1,403 800 670 1,553 422 279 April 16 to 30 -....- 556 991 1,416 914 672 1,503 384 May 1 to 15 ---- 544 966 1,379 1,064 717 1,413 333 May 16 to 31 -— 567 1,010 1,711 1,063 725 1,288 340 June 1to 15 -- 498 1,119 1,850 1,120 725 1,291 341 29 June 16 to 30 —..-. 525 1,204 1,912 1,156 715 1 223 365 July i to 15 -- - 503 1,250 2,024 1,091 786 1,441 430 341 July 16 to 31 —----- 563 1,432 2,092 1,030 790 1,593 463 August I to 15 -—.- 595 1,538 2,137 1,216 861 1 699 515 330 August 16 to 31 —-. 778 1,599 2 132 1,267 889 1, 660 545 September 1 to 15.. 836 1,626 2,166 1,250 882 1,783 568 312 September 16 to 30. 855 1,656 2,286 1,534 899 1,887 587 October 1 to 15 ---- 900 1,633 2,365 1,685 860 1,931 598 346 October 16 to 31.... 814 1.543 2,414 1,722 872 1,936 619 November I to 15.. 777 1,576 2,488 1,541 878 1,824 634 320 November 16 to 30. 642 1,546 2,319 1,537 872 1,713 620 NOTE.-The rolls for the navy yard at Mare Island are rendered for the entire month. 35TH CONGRESS, I HOUSE OF REPRESENTATIVES. J Ex. Doc. 2d Session. No. 184. NAVAL CONTRACTS AND EXPENDITURES. FEBRUARY 24, 1859.-The further consideration postponed until Monday next, and ordered to be printed. Mr. JOHN SHERMAN, from the Select Committee on Naval Contracts and Expenditures, submitted the following VIEWS OF THE MINORITY. The undersigned members of the Special Committee on Naval Contracts and Exponditures beg leave to report: That the present organization of the bureaus in the Navy Department is founded upon the act of August 31, 1842. Prior to that time work in the navy yards, whether for the construction and improvement of navy yards and docks, or for the construction and repairs of vessels, was done under the sanction of a board of navy commissioners. The amount then expended was comparatively small. In 1820 the work in navy yards amounted to $65,000; in 1830 it was $180,500; in 1840 it was $110,250. Prior to 1840 the total expenditures in the purchase, construction, and improvement of navy yards was $7,023,942 12. An annual appropriation was also made for the repairs of vessels, and another for gradual increase and improvement. Under the act of 1842 expenditures in the navy yards have mainly been disbursed under the direction of two bureaus: 1. That of Navy Yards and Docks, charged with the construction of and improvements in navy yards. 2. That of Construction, Equipment, and Repairs, charged with the construction and repairs of vessels, and with the purchase of fuel, hemp, and materials for the navy. The following statement will exhibit the expenditures under the direction of these bureaus since their organization, excepting the special expenditures for the construction of new vessels: 56 NAVAL CONTRACTS AND EXPENDITURES. BUREAU OF YARDS AND DOCKS. From October 1, 1842, to June 30, 1843 -.... —-, —. —. —-, $366,881 03 For the year ending June 30, 1844 ---- ---- --- -- 396, 653 35 Do —------— do ------— 1845 546,359 15 Do ------— do -..-.. —1846 - --- -- ----...- 585,549 57 Do ------— do —---— 1847 -..-.. —-------- - 806,748 63 Do —---- do -, —— 1848. —--— _- -- 1,053,018 76 Do —------— do —--..-1849 -— 1,797,129 18 Do. —-—.- do -----— 1850 -------- ---- ---- 2,320,793 20 Do ------—.do —- 1851 18511,991 08 Do. —----— do —----— 1852 - ---------------- 1,636,635 21 Do ---—. —-do -----— 1853 ------- -------- 1,762,339 63 Do -------— do —----— 1854 ------ ----— 1,231,159 99 Do —------— do ----— 1855 ------- ------- - - 2,010,920 17 Do ----—. —do -----— 1856 ------- ---- - 2,567,511 37 Do ----— do —----— 1857 —----- -------—. 2,392,768 65 Do -------— do —----- 1858 ------ ---------- 3,157,522 57 24,483,981 54 BUREAU OF CONSTRUCTION, EQUIPMENT, AND REPAIR. Amount expended for increase, repair, and equipment, armament, fuel for steamers, and purchase of hemp. 1841-'42 —-------------- $2,803,820 70 1842-'43 —-------------- 935,818 98 1843-'44 ------- --------- 1,398,435 58 1844-'45 ----------- ---- 1,222,378 54 1845-'46 -- ---- --------- 1,838,479 21 1846-'47 -------------------------------------— 1,567,371 85 1847-'48.. —------------—. —--—. 3,067,779 01 1848-'49 —----- --------- 3,663,805 35 1849-'50 —-- ----------- ---- 1,867,205 52 1850-'51 —--------------- 2,080,377 44 1851'52 —-— 2 —--------------------—, —-— _ —-- 2,354,052 93 1852-'53 ------------------------------ 2,724,036 97 1853-'54 --------------— 2,371,990 84 1854-'55 —-------------- 2,767,544 40 1855-'56 —------ -------- 3,156,593 48 1856-'57 ------------------------. 3,115,351 28 1857-'58 --------------— 3,129,427 68 To January, 1859 -- --------------— 1,739,688 38 41,804,159 15 In pursuing the inquiry ordered by the House, the attention of your committee has been chiefly directed to four distinct items of expenditure. 1. The purchase of fuel for the navy. 2. The purchase of live oak timber. 3. The management of the navy yards, and especially that of Brooklyn. 4. Contracts for steam machinery. The undersigned beg leave to submit the result of their inquiry upon tach of these subjects separately. NAVAL CONTRACTS AND EXPENDITURES, 57 COAL AGENCY. Previous to and including the year 1850 fuel for the use of the navy was required by law to be purchased by contract with the lowest bidder, in the same manner as other materials for the navy. By the act of September 28, 1850, it was provided that "In the article of fuel for the navy, or naval stations and yards, the Secretary of the Navy shall have power to discriminate and purchase, in such manner as he may deem proper, that kind of fuel which is best adapted to the purpose for which it is to be used." In the exercise of this discretionary power, Mr. Graham, Secretary of the Navy, appointed Mr. B. N. Springer, a retired coal merchant of Philadelphia, the agent of the government to purchase anthracite coal. Upon receiving a requisition for coal he went around among the coal dealers, received their offers, and took the lowest bid; and upon its delivery either he or his son was upon the wharf to see that it was weighed correctly and shipped in good order. The compensation of the agent was fixed at five per cent. commission. In May last Benjamin Tyson was the coal agent, and several applications were made to the Secretary of the Navy for the place. The mode of purchasing the coal, the selection of the agent, if needed, and his compensation, were, by the law, entirely at the discretion of the Secretary. The coal business had largely increased, so that the amount annually purchased was, in 1858, about 55,000 tons, being a larger amount than in previous years, and the per centage yielded a larger salary. In May, 1858, some of the applicants met at Washington, and at a conference with each other and their friends, (among whom was Hon. J. Glancy Jones,) it was agreed that Dr. Charles H. Hunter, of Reading, Pennsylvania, should be appointed coal agent; and that the emoluments of the office should be divided equally between him, John F. Smith, and J. Lawrence Getz, warm personal and political friends of the President, who had contributed largely-to his election. Hunter and Smith were both applicants for the office of coal agent; Getz was a member of the Pennsylvania legislature, and then and now the editor of the Reading Gazette; each of the parties above named was examined by your committee; and also C. Nichols Beach, whose connexion with the transaction will hereafter appear. Mr. Smith testified that he was in Washington in May last, and was present when the arrangement for the appointment of Hunter was made. That some of the applicants and their friends had a conversation to arrange things amicably if they could. Finally it was agreed that if the Secretary would appoint either of them, he should appoint Dr. Hunter, Mr. Getz, and Mr. Smith. That the arrangement was communicated to the Hon. J. Glancy Jones, then a member of this House, and that the President also understood that the emoluments of the office were to go to the three. As this was deemed important by the committee the witness was examined and re-examined by different members of the committee as to the knowledge of the President; he repeated that the President knew that the three were to divide the emoluments of the office, and that the parties were satisfied with the decision; but he knew nothing about the arrangement whether onehalf was to go to one party and the other half to the other two or not. 58 NAVAL CONTRACTS AND EXPENDITURES. Mr. Getz testifies that he was at Washington at the time, and was informed of the arrangement for the appointment of Dr. Hunter, and that he, (Getz,) was to have one-third of the profits. He agreed to it with a "mental reservation." He conversed with the President about the appointment of Dr. Hunter, and the President said to him "Mr. Jones urged me to appoint you; but you are no applicant; I have made up my mind to appoint Dr. Hunter." Mr. Beach (C. Nichols) testified that he is a nephew, by marriage, of the Secretary of the Navy; that he was on intimate relations with him; that he was in Washington when the arrangement of the appointment of Dr. Hunter was made; that he was himself an applicant for the office; that he conversed with Mr. Jones about it; that he knew that the emoluments of the office were to be divided up among these parties; and that it was a matter of general rumor in Washington before and at the time of the appointment; that he talked with the Secretary about the appointment of.Dr. Hunter, and that the Secretary informed him that, as the application was a Pennsylvania one, he would defer to the wish of the President. It is to be remarked that, by law, the President has nothing to do with the purchase of coal. The only power in the matter is conferred by law upon the Secretary; yet it appears, from the testimony and the Secretary's admission to Beach, that the power was yielded to the President. In pursuance of the arrangement, Dr. Hunter was appointed coal agent; Smith received the commission from the Navy Department, took it to Dr. Hunter at Reading, and narrated to him the arrangement to which Hunter agreed. Getz subsequently declined to share in the profits, because, as he says, the arrangement was distasteful to him. Dr. Hunter had been for years, was then, and still is, a practicing physician in Reading. He had never purchased coal for sale; he did not know its market value, took no pains to ascertain it; did not purchase any coal for the government, or do any act, in the performance of his duty except to sign formal papers sent to him by Tyler, Stone & Co., certifying that a specific quantity of coal of the best quality had been duly inspected and weighed by him and shipped on board a named vessel. These papers were sent to the proper bureau, and all parties knew, or ought to have known that the certificates were false, so far as relates to his personal knowledge of the facts certified. By an understanding between Hunter & Smith the latter was to make inquiries as to selecting coal at Philadelphia, but it is manifest that he did but little in the execution of this trust. He was in the omnibus business, and had no connexion witi the purchase of coal. The coal was required at Philadelphia, and was there delivered on shipboard to the government. Neither Hunter nor Smith saw the coal inspected, weighed, or delivered, and the whole business was turned over to Tyler, Stone & Co. Mr. Smith testifies that he took no personal supervision of the matter, except to see that the best coals could be had, and depended upon Tyler, Stone & Co. to inspect the coal. When the government needed coal a requisition was sent to Dr. Hunter, which by him was sent to Tyler, Stone & NAVAL CONTRACTS AND EXPENDITURES. 59 Co., who became at once the purchasers for and the sellers to the government. Tyler, Stone & Co. and Dr. Hunter fixed the price at $3 85 per ton. The testimony of many witnesses establishes beyond a reasonable doubt that the market value of such coal as was delivered to the government would not exceed $3 50 per ton, and several respectable dealers would have furnished the government at that or a less price, and then made a profit. The purchases of coal thus made for the government by Tyler, Stone & Co. for the six months from the 1st July, 1858, to 31st December, 1858, was about 40,000 tons, at a cost of $3 85 per ton. The amount of emoluments received by Dr. Hunter, and divided by him with Mr. Smith, was, for the same six months, $7,452 92, or, at the rate of $14,905 84 per annum. In addition to this direct loss, the mode of purchase adopted furnished no guarantee against fraud in the quality or amount of coal which, when delivered on shipboard, was not inspected by any officer of the government. Your committee have furnished to the parties implicated in these transactions every opportunity to explain them. All the parties, except the President, Secretary of the Navy, and Hon. J. Glancy Jones, have been examined. The President and the Secretary have been furnished with a copy of the testimony, and notified that any statements either of them desire to make would be heard by the committee, or that any witnesses desired by them would be examined. The Secretary, in his letter of February 14, 1858, herewith submitted, states that the same system existed in the coal agency during the administration of his predecessor. He also states that he was not aware until the present investigation of any want of attention on the part of the coal agent. LIVE-OAK CONTRACTS. Live-oak timber, like other material for the navy, is required by law to be purchased by contract with the lowest bidder; but, unlike other material, it is not kept on hand in large quantities by dealers in timber: Therefore, it has been the uniform custom of the government to allow contractors from one to two years to furnish the supply needed, unless the exigencies of the service demand an immediate supply, when the amount needed may be bought in open purchase. When delivered, it is stored away in the navy yards and used as the service demands. W. C. N. Swift, a whaler, of New Bedford, Massachusetts, had, prior to 1844, been contractor for the supply of live-oak and other timber for the government. In 1854 he entered into a written agreement with George Plitt, of Philadelphia, an active and intimate friend of President Buchanan, by which Plitt agreed to aid Swift all he could in obtaining live-oak contracts with the Navy Department; for which Swift was to pay to Plitt ten per cent. on the gross amount of the contracts made. The aid contemplated was that Plitt should place Swift upon familiar relations with the departments. He introduced Mr. Swift to Mr. Dobbin during President Pierce's administration, and to other gentlemen and used all his influence in behalf of Swift. Pending the presidential election of 1856, Plitt 60 NAVAL CONTRACTS AND EXPENDITURES. introduced Swift to Mr. Buchanan, and sought to place him in the very best position he possibly could with the President. Plitt, at the time, was treasurer of the democratic State central committee of Pennsylvania, and as such received from Swift, the sum of $16,000, of which Swift contributed $10,000 and received the balance from his immediate friends, to be used in the pending election. Mr. Buchanan was informed before the election, that Mr. Swift was an old line whig who had come over to his party, and was taking an active part in the election; and he was subsequently informed of the amount contributed by Swift. Plitt testifies that" In introducing Mr. Swift, I told Mr. Toucey that he was a gentleman whom I should be very glad to have him aid in any way that he could, legitimately, of course; that he was my very warm friend, who had contributed very liberally towards the election of 1856, and that he had a number of old-line whig friends in Massachusetts, who were equally liberal, some of them, at least, and I thought that such gentlemen ought to be patronized of course." Plitt further testifies that he regarded the contract with Swift, of April, 1854, as a continuing contract, and " supposing that agreemnent was still in force under the present admininistration as it was under the former one, I had taken pains to make him acquainted with every one of my political friends." In the frequent interviews of Plitt with the President and Secretary, whenever Swift's name was mentioned, Plitt took pains to recommend him as a very good fellow, "and I was very sorry he should be disappointed; he was anxious to get some appointments in Massachusetts, in all of which he was disappointed, and. I felt some sympathy for him. I frequently spoke of him in that way." He testifies this was the extent of his aid to Swift. The undersigned need not dwell upon the corrupting tendencies of such agreements as that between Plitt and Swift, whereby the influence arising from social relations and personal interviews with the highest officers of the government are sold for money. When they become the general rule, and upon discovery are passed over without objection or reproof by the highest functionaries, they become offences which should be punished by severe penalties. But they are still more dangerous when they look not merely to political influence, but to controlling and tampering with the judicial duty of awarding contracts. Contracts for live-oak, in 1857, were awarded to Swift for 150,000 feet, to be delivered at three of the navy yards. An outstanding contract with a Mr. Blanchard was cancelled and awarded to Swift in November, 1857. The amount of these contracts is $232,940. Prior to June, 1858, Swift brought to some of the navy yards large quantities of live oak, which was rejected; some of it because the size was below that prescribed by the contract, and some for its inferior quality. By the rule of the department at most of the yards timber not coming within the contract was required to be removed before that which had been accepted would be paid for. This rule seems to have been strictly enforced, except as to the timber delivered by Swift & Bigler, whose connexion with these transactions will be shown hereafter. The officers on duty at the navy yards, except at NAVAL CONTRACTS AND EXPENDITURES. 61 Norfolk, would have enforced this rule, but they were required by an order of the Secretary to allow this timber to remain in the yards, where, in some instances, it became a grievous inconvenience. By the 15th of June, 1858, when it became necessary to prepare the annual advertisement, the timber thus accumulated amounted to about 80,000 feet. On the - day of May, 1858, Swift, sent the department a statement of the amount of his timber then on hand. Before the advertisement of June, 1858, was issued, Swift & Bigler each had interviews with the secretary, Bigler urged the Secretary to purchase his timber on open contract. Bigler testifies as follows: " After I got my contracts filled, I went to the Secretary of the Navy to get him to buy my timber upon 9pen purchase. He gave as a reason for not buying upon open purchase, that it was against the law to buy timber upon open purchase, except for immediate use. Mr. Swift went to him on the same score, that he had timber over, which he wished to sell to the government. This induced the Secretary, I suppose, to make this advertisement to cover about the amount of timber that we had." Mr. Lenthall, the chief of the Bureau of Construction, Equipment and Repairs, testifies that the Secretary inquired of him the shortest time within which the timber could be cut and transported to the various navy yards. He named the 1st of February, 1859, and the testimony shows that by extraordinary exertions and unusual expense and risk it could have been delivered at the navy yards at that time. Mr. Lenthall inserted this date in the advertisement, and sent it to the office of the Secretary. It was there altered so as to require one half of it to be delivered by the 1st of September, 1858, thus excluding all competition. Bigler testifies that such was the design. He says: " The Secretary of the Navy knew, and the chief of the bureau knew that there was nobody else in all America that had the timber and could put it in at such a time but Mr. Swift and myself. There was not any such timber in the United States that was already got out except ours. There was nobody else in the business but Mr. Swift and myself who could furnish it. The Secretary knew there was no other timber anywhere else in the market." If any doubt existed as to the design of the Secretary in the particular terms of the advertisement, the subsequent conduct of the parties concerned clearly proves that those terms were carefully arranged so as to prevent all competition, and secure the contract to Swift. Dealers in live-oak timber perceived at once the effect and purpose of the advertisement. Samuel P. Brown, of Maine, an intelligent lumberman, now a member of the legislature of Maine, thus testified to a conversation with Swift upon the subject: "I think about the middle of June, 1858, I had one conversation with him, (Mr. Swift,) that was after the advertisement was issued by the department, I told him that I was disappointed to see this advertisement come out; I knew that it was got out for his benefit and that of Mr. Bigler, and that the way they were managing the thing would not give satisfaction. I advised him for his own reputation to go to the Secretary and induce him to withdraw that advertisement and let him purchase his timber, if he wanted it for immediate use. He told me that he had been trying to induce the Secretary to do that same thing, but the Secretary told him that he had no authority to purchase this timber. He had made up his mind that he could not do it without advertising; but the advertising arrangement was such that nobody could offer for it but himself, because he had timber in the yards, and he knew that no other man could fill the offer, and it would only be trifling to make any offer. I stated to Mr. Swift that I should make an offer to take the contract in good aith, and then should ask the Secretary for an extension of time, says he,' he will not grant it.'' Well, then,' said I,' let him do that, and I will report the thing to Congress next winter.' " By the advertisement as issued, 150,000 feet was required, being 62 NAVAL CONTRACTS AND EXPENDITURES. 25,000 feet at each of six yards, and a larger quantity than had been purchased in any year previous, except in 1857; but it was of a smaller size and of straighter form, and therefore much less valuable for ship building. It was of the peculiar character and description then owned by Swift in the different navy yards. It was impossible for any dealer but Swift to comply in point of time. The whole amount of live-oak timber in the market within the reach of the Navy Department, other than Swift's and Bigler's timber, was less than 4,000 feet. The yellow fever was prevailing in the live-oak region; none could be cut and transported by the 1st of September, 1858, even to Pensacola, in the midst of the live-oak district. Work was then suspended in the navy yard there, and neither human endurance nor enterprise could meet the dangers of pestilence in that region. The advertisement being thus arranged it is manifest that but two men could compete, and these two were Bigler and Swift. They were in this city about the time the bids were to be opened, and then entered into an agreement by which Swift was to put in his bid and Bigler was to bid above him, so that there would be no possibility of Bigler coming in competition with Swift. The contract was then to be taken by Swift for the whole amount of timber-150,000 feet, at $195,000, or $1 30 per cubic foot-and Swift was to take of Bigler the timber he had on hand at the various yards at contract prices. Bigler testifies that he told the Secretary: " I did not care how he arranged the matter, if he would give the contract to Mr. Swift, for it would make no difference to me, as he had agreed to take my timber." This attempt of Swift and Bigler to procure the contract would have been entirely successful but for the intervention of several other bidders, who, being engaged in the business of lumbering, were anxious to obtain a contract with the government. They noticed the shortness of the time for delivery. Some of them had been for years contractors for delivering live-oak to the government, and in no previous case was the time of delivery less than from one to two years. Not supposing that the Secretary would enforce an impossibility, but would allow a delivery of the timber at any time within the six months prescribed for the delivery of the whole, and supposing that, by extraordinary exertions, they could accomplish that, they made proposals. The lowest bids were those of Buxton & Lawrence who offered to deliver 25,000 feet at each of the yards, at Portsmouth, New Hampshire, Charlestown and Brooklyn, for $81,750 for the whole; Samuel B. Grice offered to deliver 25,000 feet at each of the yards, at Philadelphia and Norfolk for $57,400 for the two yards; Coates, Degraw & Beach offered to deliver 25,000 feet at Pensacola for $27,750; in all being 150,000 feet for $166,700, being $28,300 less than the prearranged bids of Swift. If the usual time of one and two years had been allowed by the advertisement, the testimony shows us that the bids would have been reduced at least 15 per cent. or about $25,000. But the bids made were upon the basis of an entire delivery before the 1st of February, 1859, involving unusual expense and risk. The successful bidders promptly took steps to complete their contracts. General - Berry of Maine was applied to by Messrs. NAVAL CONTRACTS AND EXPENDITURES. 63 Buxton & Lawrence to become their security. Before doing so he wrote to his friend, Mr. John Appleton, Assistant Secretary of State, to obtain an extension of the time for delivery. Mr. Appleton applied to the Secretary of the Navy and was informed that if the contracts were not complied with he would buy the timber in open market and charge it against them under the law. Mr. Appleton urged that unless the timber was needed for immediate use, it would certainly be better to extend the time for its delivery and then get it at a low rate, rather than purchase it at once at high rates. The Secretary said he would consider that point before he decided. Mr. Appleton called the second time, and was then informed by the Secretary of the Navy that Mr. Swift had offered to take the contract at the rates proposed by the lowest bidders, and he had accepted his offer. Mr. Samuel B. Grice duly executed his contract, and promptly delivered at the navy yard at Philadelphia over 1,400 feet. He arranged to get the residue as rapidly as possible, and he had on shipboard at the navy yard at Philadelphia, on September 16, 1858, some 800 feet, when his contract was abruptly cancelled, and a new one made on similar terms with Swift. Coates, Degraw & Beach executed their contract, and immediately took steps to fulfil it. This contract related only to the Pensacola navy yard, where Swift had no live-oa7, and was in no better condition than other bidders. Mr. Degraw immediately went on to Florida to make arrangements to comply with the wants of the government there. He was informed by the naval constructor that but a small portion of the timber would be needed immediately, and sixty days would be in time for the delivery of the most of it. He made arrangements to supply the few sticks wanted in the construction of a vessel then on the stocks; as for the balance, he arranged to deliver it when required, and all before the 1st of February, 1859. Before Mr. Degraw went on to Florida, Mr. Coates came on here on the first of September, the very day upon which one-half of this timber was to have been delivered, and asked for an extension of time. The Secretary said he was not in the habit of doing that, to which Mr. Coates replied, that if their contract was to be annulled for non-fulfilment he wanted to know it at once, and he would expend no more time or money upon it. He told the Secretary that they were ready to do what other contractors had done to meet the wants of the government, and asked if one of their firm had better not go on to Florida and ascertain what the wants of the government were there. To which Mr. Toucey replied that he had better do so, and report to the department. In consequence of this, Mr. Degraw went on to Florida. Before he returned, however, the contract had been annulled and awarded to Swift. This was a case of peculiar hardship. A practical lumberman obtained the contract, evinced unusual energy in its prompt execution, risking the dangers of the yellow fever in its worst season, supplying by purchase the immediate wants of the government and providing for them in future; yet he is suddenly deprived of his contract, at the loss of his time and labor, because he has not complied with an impossible condition, not designed 64 NIAVAL CONTRACTS AND EXPENDITURES. to be performed, and the contract is awarded to a favored contractor who could not comply and who has not yet complied. During all this time Swift remained in Washington, in confidence that he would finally get the contracts. He assured Bigler " that he was satisfied that the parties would have to give them up. The government were under obligations to him, and he thought he could bring such influence to bear that they would give him these contracts. He said it was due to him for services rendered." By the law: "All purchases, &c., made by or under the direction, &c., of the Secretary of the Navy, shall be made either by open purchase or by previously advertising for proposals respecting the same," &c.-(Brightly, p. 191.) " In case the lowest bidder shall fail to enter into such contract and give such security within a reasonable time, to be fixed in such advertisement, then the contract shall be given to the next lowest bidder who shall enter into such contract and give such security. — (Brightly, page 677.) "Purchases in open market cannot be resorted to, except in case of such articles as are wanted for use so immediate as not to admit of contracts by advertisement."-(Brightly, note b, page 677.) The Secretary is authorized to purchase in two ways: 1st, by contract after advertisement, and acceptance of proposals of bidders. If the lowest bidder fails to enter into the contract and give the security in the tirme specified, then the contract is to be given to the next lowest bidder. 2. By open purchase. In this case the Secretary had no more power to enter into a contract with Swift than if the advertisement of June 14, 1858, had never been issued. By the terms of that advertisement, one-half of the timber was to be delivered on the 1st of September, 1858, and the rest on or before the 1st day of February, 1859. It was not possible to award the contracts originally advertised for to any one. On the 23d day of September, when the contract was entered into with Swift, it was manifestly absurd and impossible to award a contract to any one to deliver timber on the 1st day of the same September. In every possible respect, so far as Swift was concerned, the Secretary was precisely in the same position, under the law, on the 23d day of September, that he would have been if no advertisement for proposals had ever been issued. The Secretary alleges, in his defence, that there were fears of a rupture with Great Britain when the advertisement was issued, but all those fears were completely dissipated before the end of June; and in September, when the contract was made, our relations with Great Britain were certainly as harmonious as they have ever been at any time in the history of the two governments. The allegation of want of timber in the yards is equally as idle as the pretence of fears of Great Britain. The testimony shows clearly that little of this timber was required, perhaps none of it was absolutely necessary for immediate use, and the quantity actually used has been so small compared with the amount purchased as to be worthy NAVAL CONTRACTS AND EXPENDITURES. 65 of no consideration. In fact, the testimony of the naval constructors at Norfolk and some of the other yards renders it probable that the timber purchased from Swift is of small value to the government, as, in case it should be used, an equal quantity of timber already in the yards will be suffered to decay. Yet the Secretary, without notice to the next bidder, and without advertisement, and without such a necessity as would justify an open purchase for such an amount as Swift had on hand, entered into a contract with Swift for 150,000 feet. This contract is dated September 23. 1858, but was made as early as September 16. On that day Mr. Lenthall wrote to Grice, the lowest bidder, as follows:' NAVY DEPARTMENT, " Bureau of Construction, &fc, September 16, 1858. "SIR: I am instructed by the department to inform you that, as you have not complied with the terms of your contract for live-oak, a new one has been made with other parties. Respectfully, your obedient servant, "JOHN LENTHALL, "' Chief of Bureau. "SAMUEL B. GRIcE, Esq., Philadelphia." The arrangement between Swift and Bigler was carried out. All their timber on hand at the different navy yards that would pass inspection, has been taken. It was the same that was on hand when the advertisement was issued, and no other has yet been delivered. The rejected timber of Swift is still allowed to remain at the navy yards. The price paid is higher than Bigler offered his timber to the government on open purchase. The only failure in Swift's plan is, that by the intervening bids, the government was saved $28,300. On the 15th day of October, he, for the first time, repudiated his written agreement with Plitt; Plitt thereupon consulted the President. The result of this conference is thus stated by him: " I did not want to involve the present administration in any difficulty, and, therefore, I asked the President whether there would be any objection to my prosecuting Mr. Swift in court for this claim. The President looked at the agreement made in 1854, and said he could not see any objection to it. He had, of course, no advice to give, and told me I might do as I pleased about it." At a recent interview of Plitt with the Secretary, the latter remarked to him: " Your friend, Swift, I am afraid, has failed in delivering one of his last contracts at the Pensacola yard, and if so, I intend to annul it." Swift also claims that, as his arrangement with Bigler did not entirely succeed, Bigler should pay him $1,000 for nameless expenditures in obtaining the contract, and he testifies to an agreement to this effect, which Bigler denies. The undersigned have fully considered the statement of the Secretary, of the date of February 14, 1859, that the contracts were made, to supply the pressing and immediate wants of the government, andi have directed their attention to that subject. The yards at which the Secretary says the live-oak was most needed. were Norfolk, Kittery, and Pensacola. The naval constructor at Norfolk testifies that they have-used to this time less than 1,000 feet of Swift's timber, and that they have on hand over 500,000 feet. At Kittery the wants, H' Rep. Corn. 184-. 5 66 NAVAL CONTRACTS AND EXPENDITURES. of the government were supplied by open purchase from Bigler of about 3,000 feet. At Pensacola Degraw had arranged with the naval constructor for the few sticks needed for immediate use, and for the balance as needed. The Secretary expressly refused to make the purchase an open purchase, for the reason that the law would not justify it. He so stated to Swift, Bigler, and Appleton. In June, 1857, a greater necessity for timber existed than when the contracts were awarded to Swift, and yet the usual advertisement was then issued. It is worthy of observation moreover, that at Pensacola, where the Secretary informs us the wants of the service were most pressing, Swift had no timber and did not deliver it as soon as the lowest bidders could have done. BROOKLYN NAVY YARD. Shortly after the organization of the present administration, the patronage of the New York yard having been previously confined chiefly to a few of the congressional districts of New York, an understanding was entered into between the democratic members from New York, with the acquiescence of the Secretary of the Navy, that it should, as nearly as practicable, be equally divided among them. In some cases the Secretary created new places of master workmen. The correspondence of these members with the department is herewith reported, and exhibits on its face the evil effects of the system. The division of patronage among members was well known in the yard. Each master workman understood to whom he and each of his lellows owed their places. Thus the constructive engineer, the master plumber, and the master block-maker, represented Mr. Sickles; the master painter represented Mr. Searing; the master spar-maker, master blacksmith, and timber inspector, represented Mr. Maclay; the master laborer, under the constructing engineer, the master boatbuilder, and the master ship-carpenter, represented Mr. Taylor; the master caulker represented Mr. Cochrane; and the master stonecutter represented Mr. Ward. Until May, 1858, the master laborer, under the constructing engineer, represented Mr. Clark, and the master carpenter represented Mr. Haskin, and so with all the heads of the departments of labor in the yard at Brooklyn. Lawrence Cohane was appointed master carpenter, upon the nomination of Mr. Hlaskin, in the general division of patronage. He was removed on the 9th of June, 1858, on account of Mr. Haskin's course upon the Lecompton constitution, as he says. Alexander Ward was appointed in October, 1857, for Mr. Clark; and in May, 1858, after Mr. Clark had taken position upon the Kansas question, he resigned. He states that he wanted to use his influence for the re-nomination of Mr. Clark; and he knew that if he did so, and still remained in the yard, he would subject himself lo being removed. Rather than that, he preferred to leave himself. These places were then given to Mr. Taylor. Each master workman selected all the workmen under him, and upon his requisition the number was increased or diminished, he naming those to be selected or discharged. NAVAL CONTRACTS AND EXPENDITURES. 67 This system, added to the abuses previously existing, has reduced the navy yard to a mere political machine, where idleness, theft, insubordination, fraud, and gross neglect of duty prevailed to an alarming degree. Members of Congress, officers of the yard both naval and civil, master workmen, contractors and laborers, have all testified to many abuses. Hon. John Cochrane testifies that the tendency of "the distribution of patronage by members was very deleterious upon the purity of elections; injurious to the workmen, in that it teaches laborers and mechanics to look to political influence for sustenance and support; injurious to the member of Congress; that he himself had been besieged-beset by hundreds of claimants at his house and in his office, until now, having been driven from his office, he was in doubt whether he should return to New York. And Hon. H. F. Clark, in reference to the same subject, makes the following statement: "My attention was first attracted to the subject by receiving a very great number of applications from mechanics and laborers in my district for my interference to procure for them places in the navy yard. To such an extent was this demand that it became onerous, indeed offensive. My house was run down. I was addressed in the street upon the subject. When in the lower part of the city on business I would be pursued. And I really could find no rest by reason of the great number of such applications." *o:'~ O " " Another class of applications was from men who desired to have procured for them the situation of quartermen in the navy yard, at $2 50 per day. Another class was from men who desired to have procured for them the situation of masters in the navy yard. And, between them all, I found that more was required of a member of Congress than I had imagined. It appeared to me that I was expected to find places for the unemployed, and there were too many of that class in New York to render it possible that I should voluntarily undertake that business.' "This whole system tends, in the first place, to the demoralization of the laboring classes, to their serious detriment, and, in my judgment, to the degradation, personal and political, of members of Congress." The incidents and details of these abuses are shown by the testimony, and the very voluminous correspondence of the department with Commander Rootes and Mr. Graham, the constructing engineer. Most of the members of Congress went to the yard during the hours of work to look after their interests. Each was anxious to have his friends in the yard, and most of them in person frequently pressed these applications. They had controversies with each other, with the officers of the yard, and with the master workmen, about the division of patronage. Several cases of this kind are testified to by the master workmen, and are shown by the correspondence Pressed by laborers begging for work as a reward for partisan services, members sent them to their master workmen, in some cases to others, with letters of recommendation, in many cases without proper inquiry as to their fitness or ability to do work. The master workmen, themselves appointed for partisan services, often yielded. In some cases, when they refused, threats of their own removal were sent to them; and when compelled to choose in some cases they preferred packing the yard with idle and unskillful workmen or laborers to risking their own places. In one case, Hon. John Cochrane, believing that Lawrence Cohane, the master carpenter, did not fairly divide the patronage in his department, wrote Cohane thus: X;8 BNAVAL CONTRACTS AND EXPENDITURES. " NEW YORK, Tune 13, 1857. " Mr. COHANE: Mr. Cullen tells me that you are to take men on on Tuesday; now I ask you to take him on and the others I have asked you to take on. I will have my proportion of men under you; if you do not give them I will lodge charges against you. You have turned away all the men but one from my district already. Of this I have complained to the Secretary, and now, unless you rectify this injustice, I will make application that you be turned out. The bearer will bring me an answer. "Yours, &c., JOHN COCHRANE." Mr. Cochrane's letters of a similar character to the master blacksmith are herewith reported. In another case Lewis W. Berry, the master painter, discharged a man for habitual drunkenness, who had been appointed upon the recommendation of Hon. John Kelly. Mr. Kelly requested that the man be taken on again. Berry thus describes what took place at that interview:' I told Mr. Kelly I could not employ any such man as he was; that he had disgraced himself, and was a disgrace to my department. Mr. Kelly said he could not help that, but that the man must go to work again. I told him I could not employ him again. Said he,' You may set it down as a fact that I will have you removed if I can, if you don't put that man on again.' " Within two or three months Berry was removed. When asked if he had been removed for this cause, he said:'I cannot say of my own knowledge; I only know what was said. I suppose he was as good as his word, as he said he would get me turned out. When I came on to Washington afterwards I thanked him for being as good as his word." Mr. Kelly testifies that he did not know that this man was a drunkard, and always had regarded him as a sober man. He said he applied for Mr. Berry's removal, but he did not think he was turned out upon that application, as it was nearly three months before he was removed. William Turner, the successor of Mr. Berry, was appointed for Mr. Searing. An immediate controversy arose between him and Hon. George Taylor about the division of his patronage. The following letters were produced by Mr. Berry from Mr. Taylor to illustrate the control of members of Congress over master workmen. "WASHINGTON CITY, March 23, 1858. "' CAPTAIN TURNER: You will much oblige me by retaining Mr. Fitzgerald as foreman. This is the understanding between Mr. Searing and myself, and I may add, the Secretary of the Navy. You will also oblige me by appointing Mr. Tenney, of the 12th ward, when in your power to do so. As a general thing, Hugh McLaughlin, master laborer, knows who my friends are, and he will confer with you at all times. "Yours, respectfully, " GEO. TAYLOR." "HOUSE or REPRESENTATIVES, April 7, 1858.' DEAR SIR: I understood that, as a part of the arrangement before your appointment, you were to retain Mr. Fitzgerald as your foreman. You promised to do so; and that is Mr. Searing's understanding. I am now informed that you intend to dismiss him and appoint some-one in —his place from New York. This is not right, and you ought not to think of it, if you do. I trust that the original understanding will be carried out. I have just conversed with Mr. Searing, and this is his view of the matter, and it was the Secretary's view when you were appointed. In your turn you will, of course, do the best to equalize matters among the various members. " Yours, respectfully, "GEO. TAYLOR.' I haVe just shown this letter to Mr. Searing. "WILLIAM TURNER, Esq., Master painter." NAVAL CONTRACTS AND EXPENDITURES. 69 "WASHINGTON CITY, April 13, 1858. "SI: Your favor has been received. I will be much obliged for a list of the men under you, when I will write to indicate those I am especially interested in. I want only a fair proportion of the men. "In reference to Mr. Fitzgerald it was expressly understood between Mr. Searing and myself that Fitzgerald should remain, and promised this yourself. I do not know what Mr. Kelly has to do with this matter, but I shall be pleased to see him gratified so far as it is proper; but I cannot and will not submit to Mr. Fitzgerald's dismissal; and now I give you notice that if you do remove him I will do what I can to correct it, and if you suffer you must not blame me. I desire to sustain you and to make your position pleasant; this I desire on your account as well as in respect to Mr. Searing, but, sir, I will not stand by and see my friends struck down by you or any other master. "Yours, respectfully,'GEO. TAYLOR." "WILLIAM T'URNER, Esq." The testimony clearly shows that, through the master workmen, nearly all the workmen in the yard were selected by members of Congress and mostly on account of political services. One of the master workmen testifies that when unfit men were pressed upon him by members of Congress he reported it to the naval constructor, Mr. Delano, and the reply was, "He was sorry for me, but he could not help it." He informed Captain Rootes, who said "he saw it but could not help it." It was reported in the yard, and the report was acted upon, that it was the order of the Secretary that the patronage of the different departments was to be divided and distributed among the members of Congress. That this report was well founded, the following correspondence will show: " NEW YORK, July 27, 1858. " MY DEAR SIR: I have applied to Mr. Fraganza, master joiner of the navy yard, to give employment to a few men, good workmen and worthy persons, in my district. Although he has 130 men or thereabouts in his shop, he has not done so. " I have only sent one letter of recommendation to him, but no attention has been paid to it, beyond the answer that when he put an additional number of men to work he would then see what he could do. " I appeal to you to vindicate my district from this unjust and partial discrimination.' Mr. Fraganza admits he has not one man in his shop from my district. "If I have not misunderstood your views, it is your wish that the masters should select from the different districts adjacent to the yard, in equal proportions upon the recommendation of members, the workmen employed in the shops, &c. " Truly ours, "D. E. SICKLES. "Hon. ISAAC TOUCEY, Secretary of the Navy, Washington." "NAVY DEPARTMENT, August 2, 1858. " SI: The department has addressed the commandant of the navy yard at New York on the subject of your letter of the 27th ultimo. "Very respectfully, your obedient servant, "ISAAC TOUCEY. "Hon. DANIEL E. SICKLES, New York." "NAVY DEPARTMENT, July 30, 1858. "SIR: The Hon. Mr. Sickles has complained to the department that an unequal and unjust course is pursued towards his district by Mr. Fraganza, the master joiner, who, though he has about 130 men under him, has not employed a single person from his district, although Mr. Sickles has made only one recommendation.' The department desires that a fair and liberal course be pursued towards Mr. Sickles' district, and wishes you to inquire into and report upon this matter. "I am, respectfully, your obedient servant, "ISAAC TOUCEY. "Commodore L. KEARNY, Commandant Navy Yard, New Yrrk." 70 NAVAL CONTRACTS AND EXPENDITURES. "NAVY YARD, NEW YORK, August 5, 1858. "SIR: On receipt of the department's letter of the 30th ultimo, Mr. Fraganza, the master joiner of this yard, was called on for an explanation in regard to the complaint made by the Hon. Mr. Sickles. Mr. Fraganza's letter, in answer to the subject, is herewith respectfully submitted. " The department letter of the same date, with reference to the selection of their foreman by the master workmen, was also received, and on the recommendation of Mr. Kennedy, the master stone cutter, I sanctioned the rating of a foreman, named by him, and the discharge of the person who had previously held that position. " Believing that I have carried out the intentions of the department's order, I would like to be informed if the course pursued in this instance meets its approval. I have the honor to be, sir, very respectfully your obedient servant, "L. KEARNY, Commandant. "Hon. ISAAC TOUCEY, Secretary of the Navy." This is certainly very extraordinary business on which to detail an officer of the highest rank known in the navy of the United States. The natural result followed: many of them employed were of an inferior class of men. With rare exceptions good workmen would not humble themselves to seek from a politician a job of work when they can get it elsewhere. A master workman testified that the poorest workmen were pressed upon him with the most pertinacity. Romeo Fraganza one of the master workmen, writes the department under date of August 5, 1858, " In eight congressional districts who claim the patronage of the yard, in nine cases out of ten the men who are most strenuously recommended are very indifferent hands, many of whom cannot obtain employment from private employers." Men from the laborers' gang, who knew nothing about painting, were ranked as first-class painters, (Fitzgerald,) others as blacksmiths, &c.; and so on in the different departments. Laborers were employed to act as clerks and to work as carpenters. Worthless persons, old men, physically unable to work, primaries," &c., were sent by members of Congress to master workmen, often merely to get rid of their importunities, and they were taken into the several departments, until their unfitness was palpable, and even then in some cases partisan services outweighed public interest. The only department in which the commandant of the yard had a right to appoint the men was the riggers' and the sailmakers' department, usually sailors working under warrant officers of the navy. Commander Rootes was applied to by members of Congress to put certain men even in their places, and in some instances he complied. A system of appointment, so vicious, could not but produce disastrous results. Master workmen neglected their duty. The master of laborers testified that some time after his appointment he continued his business as a tin smith, two miles from the yard, and attended in the yard about two hours a day. Many of these master workmen transferred to clerks and quartermen duties they should have performed themselves. A general concurrence of many witnesses conclusively proves that the work done by a laborer in the yard did not exceed two-thirds of that done for private individuals. How far, or whether employments were sold in the yard, your committee have not been able to ascertain. Master workmen testify that offers of money were frequently made to them for employment, but they refused, and direct bribery of that kind could hardly be practiced with NAVAL CONTRACTS AND EXPENDITURES. 71 out exposure. The same offence, however, was repeatedly committed in another way. The master workmen received presents, or "testimonials" as they were called, from the workmen. This practice was common. Watches, diamond breastpins, and the like, are the usual gratuities. They were paid for by contributions levied upon the men under them, nominally as voluntary gifts, but really under the fear of removal. The master painter, when appointed, was asked by Captain Rootes if he knew his duty. "He said it was to set a good example to the men and keep them at their duty.' Further,' said he,' Captain Rootes there are not three men in the yard who do the duty of one,' alluding, as I supposed, to the painters. I said to him:' That is the opinion of more than yourself, and I am glad to hear you say what you do; I hope when you come in here you will set them a good example.' Yet, within two or three weeks after that, my attention was drawn by some person saying that this same master workman was receiving a gold watch from the men in his employ." This watch cost the laborers $175, all of which was paid by the working men in the painter's department. The foreman of the shop testifies as follows: "A young man by the name of Leighton, in the office, first suggested it. He told me that Mr. Turner would be glad to have it carried through, and I then assisted in the carrying through of it. "Question. You went round and collected the contributions? "Answer. Yes, sir. " Question. Did all the men contribute? "Answer. I do not believe there was any who did not. "Question. Was there any objection made by the men to making this contribution? " Answer. Not at this time, when this contribution was collected; but afterwards, the following pay day, they had this other tax to pay for him to go to Washington, and they complained of being taxed again. " Question. How was this regarded by the men; as a tax or as a compliment to Mr. Turner? "Answer. I think if the men were left voluntarily to themselves they would not have done it. They did it merely through fear that, as some few had started it, if the others did not encourage it they would be discharged." A short time afterwards a contribution of ninety-four dollars was collected from the men to pay Mr. Turner's expenses to Washington, under the pretext that he could get the pay of the men raised. Still another collection, of fifty-eight or sixty dollars, was taken to defray election expenses. All these contributions were collected between April 1, 1858, and the November election, and from common workmen, whose wages were alleged to be inadequate. Master workmen testified before your committee with their "testimonials" on their persons. The only case of a refusal of such a donation, brought to the notice of your committee, was that of Alexander Ward, master of laborers. Shortly after he went into the yard about one hundred dollars were collected, to be used in the usual way, before he heard of it. He had the money returned to the men, who were then receiving but $1 122 a day. In another case about one hundred dollars were raised. by men under Mr. Graham to aid in the election of Mr. Sickles, which Mr. Graham, when he learned of it, caused to be returned to the men. These abuses increased in the yard as the election for members of Congress approached. Members, master workmen, all were interested in packing the yard. If the master workman was reluctant to increase his force, he was urged to do so by the members of Congress, and 2 72 NAVAL CONTRACTS AND EXPENDITURES. was compelled to yield to the demand. In this way the master blacksmith increased his force twenty-five men. He testified that the same general increase, for the same reason, occurred throughout the yard in all the different departments; and that of the force of about 2,400 men thus employed, one-fourth were useless; that it was understood that particular master workmen were to administer this patronage for the benefit of particular members. In most cases this pressure was yielded to with alacrity, and a temporary pressure of work in September, 1858, to fit out the Niagara for Africa, and which lasted for four days only, was made the pretext for retaining men after they were no longer needed. Insubordination increased; in one case the master laborer and a number of men answered roll-call and went to the primary election in Mr. Sickles' district, and yet drew full pay. A short time before the election the men got to leaving off twenty to thirty minutes before bell-ring in the evening, and would collect near the gate ready to go out of the yard. Commander Rootes attempted to stop this; as soon as he got near them between the ship houses some of them, in large gangs, sang out his name, and hooted and hissed him. The only reason given by Commander Rootes was, that the men thought that the members of Congress put them there and could keep them there in defiance of the officers of the yard. The same pressure to increase the force was brought to bear upon the naval officers of the yard; when Commander Rootes sought to remove some of the men after theNiagara hadsailed, the master workmen always managed to find somethingtodo. He had no power to removethemaster workmen, but could complain of them, and suspend them until an order was received from the department. If this power was exercised, the result was that the delinquent was soon restored to duty. A short time before the election Mr. Searing applied to Commander Rootes to employ some two or three men. He replied that he could not do it, the orders were against it; the masters had that privilege. Mr. Turner, the master painter, was present, and he said that it was all important to have these men in the yard; that they could carry a great number of votes and had a good deal of influence, and it was necessary for the nomination of Mr. Searing. A few days before the election Mr. Taylor urged Commodore Kearny to take in a number of men. At this period, on the 27th of October, 1858, when the public welfare demanded the vigilance of the officers of the yard, Commodore Kearny was relieved from duty, and Commander Rootes was summarily detached and ordered to Washington by the Secretary of the Navy. Commodore Kearny was left in the yard until his successor arrived. Their successors could not and did not assume their active duties until after the election This order was unusual, without motive, and no reason has yet been assigned. NAVAL CONTRACTS AND EXPENDITURES. 73 The following statement of the number of workmen employed at the several navy yards in each half month of the year preceding the 1st day of December, 1858, is furnished us by the department: ~s o. o obID4 D ^ ^: t5 g I 1857.. December I to 15.... 564 1,256 1,479 646 863 1,558 450 297 December 16 to 31-.. 544 1,370 1,390 480 857 1,625 445 1858. January I to 15...- 538 1,251 1,426 574 785 1,540 410 358 January 16 to 31.... 533 1,243 1,429 653 750 1,714 464 5 February 1 to 15 -- 516 1,237 1,302 695 722 1,749 448 304 February 16 to 28 —- 438 1,288 1,288 709 683 1,756 424 March 1 to 15 ---—. 438 1,268 1,365 766 687 1,718 423 301 March 16 to 31 ----- 435 1, 074 1, 409 785 672 1,580 433 Aprill to 15 --—.- 526 1,079 1,403 800 670 1,553 422 279 April 16 to 30 —. -- 556 991 1,416 914 672 1,503 384 May 1 to 15 _ —-.-._ 544 966 1,379 1,064 717 1, 413 333 281 May 16 to 31, —-- 567 1,010 1,711 1,063 725 1,288 340 June 1 to 15. -—. — 498 1,119 1,850 1,120 725 1,291 341 296 June 16 to 30...... 525 1, 204 1,912 1,156 715 1,223 365 July to 15 --- 503 1,250 2, 024 1,091 786 1,444 430 341 July 16 to 31 -—. —. 563 1,432 2,092 1,030 790 1,593 463 August 1 to 15 —--- 595 1,538 2,137 1,216 861 1,699 515 33 August 16 to 31 —-- 778 1,599 2,132 1,267 889 1,660 545 September 1 to 15-.. 836 1,626 2, 166 1,250 882 1,783 568 312 September 16 to 30 - 855 1, 656 2, 286 1,534 899 1,887 587 October i to 15 —---- 900 1, 633 2, 365 1,685 860 1,931 598 346 October 6 to 31 -- 814 1,543 2,414 1,722 872 1,936 619 November 1 to 15. - 777 1,576 2,488 1,541 878 1,824 634 320 November 16 to 30... 642 1,546 2,319 1,537 872 1,713 620 3 NOTE.-The rolls for the navy yard at Mare Island are rendered for the entire month. It thus appears that the number of employes in the navy yards December 1, 1857, was 7,113; May 1, 1858, 6,697; November 1, 1858, 10,038. The chief increase was at Brooklyn and Philadelphia. In Brooklyn the number, December 1, 1857, was 1,479; May 1, 1858, 1,379; November 1, 1858, 2,488, or an increase of 1,109 men in five months. In Philadelphia the number, December 1, 1857, was 646; May 1, 1858, 1,064; November 1, 1858, 1,541. During the month of October it ranged from 1,685 to 1,722-an increase of over six hundred in four months. It will be perceived thus the highest number at New York was about the 1st of November, and at Philadelphia about the middle of October. The undersigned find that abuses in the Brooklyn navy yard are not confined to master workmen and their men, but extend to all the civil departments of the yard. 74 NAVAL CONTRACTS AND EXPENDITURES. THE NAVY AGENT. George N. Sanders, the navy agent at New York, disburses about $4,000,000 annually. By law he is appointed for four years, but removable from office at pleasure. His salary is not to exceed $3,000 per annum. His duties are not prescribed by law, but are fixed by regulations of the department. He is therefore, as to term of office and duty, entirely subject to the discretion of the Executive. By the act of March 3, 1843, all materials, of whatever name or nature, for the use of the navy, when time will permit, shall be furnished by contract by the lowest bidder. Fuel and a few other specified articles are exempted by subsequent laws. Contracts are annually made by the different bureaus for the articles supposed to be wanted; but articles are often needed not embraced in the contract. Under the implication arising from the words "' when time will permit," if articles not covered by the contracts and not in the navy stores are needed, they are bought by "open purchase;" under the direction of the Navy Department. The navy agent, among his other duties prescribed by the department, pays for all articles purchased at New York by contract, and makes all open purchases. All the articles were purchased upon the assumption that time would not admit of,heir being purchased by contract. The evidence clearly shows that articles thus purchased were bought at a much higher rate than the contract price. Thus, iron of prescribed sizes in 1853 was 31 cents per pound by contract. Yet a quantity of iron for hooping the spars of the frigate Congress was needed. There was a slight variation in the size of the iron from that furnished by contract of the 2,000 pounds required. 1,835 pounds were bought on open purchase at 54 cents per pound. When articles are needed not embraced in a contract a requisition is made out by the master workman, certified to by the constructing engineer or naval constructor, as the case may be, and commandant of the yard, and sent to the navy agent. It then becomes his duty to enter the market and purchase the article needed at its fair market value. Instead of this being done in the city ot New York, the requisitions are generally handed over to Charles A. Secor & Co., ship chandlers, of New York, and they furnish the article. One of the firm is the security for Mr. Sanders on his official bond, and is his intimate and confidential friend. The articles called for are furnished by them, whether within the line of their business or not, and sent directly to the yard. The navy agent has followed this course during his term, and never sees the articles, fixes their prices, or knows when, of whom, or at what prices Secor gets them, and yet claims that he is appointed to make the purchase and is accountable for the prices.(Commodore Smith.) When the articles reach the yard a junior officer of the yard inspects them, to see if they are good and to satisfy himself if they are charged at fair market prices. To do that he sometimes has sent to the city of New York to make inquiries, but usually he took the price presumed to have been agreed upon by the navy agent as the fair market price. Commander Rootes testifies that they had a great deal of NAVAL CONTRACTS AND EXPENDITURES. 75 trouble with Mr. Secor, and that everything furnished to the navy yard by Secor & Co. while he was there had been far above market prices, and so he wrote to the department. Lieutenant Barnet, for some time the inspecting officer, makes the same statement. Several instances are shown in the testimony and in Commander Rootes' correspondence with the department where the price was exorbitant. In such cases the article was rejected; but as the officer did not purchase the article and was not informed in regard to prices, it usually passed into the storehouse, and thereupon Secor got his pay of the navy agent. When the attention of Commodore Smith, of the Bureau of Yards and Docks, was called to the matter, he issued a circular to each navy agent, requiring him to inquire of the contractor for articles in that line, his prices, and also that he ask the prices of two other parties dealing in the same line, and then take the lowest bid. These instructions were disregarded by Sanders, and many of the open purchases were, and are still, made in the same manner of Secor & Co. Mr. Sanders denied, under oath, that he had received, or expected to receive, any benefit from this arrangement. But it is dangerous to allow a practice under which collusion between the agent and the "provider" is so difficult of detection. A still more dangerous custom has been allowed by Mr. Sanders within the past year. Latterly, when requisitions were made by the master workmen, Mr. Sanders has allowed them to indicate from whom they wish the purchases made: and in many cases he has allowed master workmen to make the purchases themselves. In some cases where requisitions have come to his office, and he has had them filled by Secor & Co. in his usual way, it was found that men in the yard had made the purchases already, and expected the navy agent to sign the requisite certificate and pay the money. He testifies, himself, that he has too readily yielded to that manner of making purchases, and that most of the open purchases latterly have been made in this way. Why should the master workman seek to indicate the vendor? why desire to make the purchase himself? The danger of collusion between the seller and the master workman is increased as the number of master workmen increases. Each becomes interested in increasing the amount of open purchases in his department, either to favor a friend or to share the profit. He judges of the necessity of the article; makes the requisition; purchases the article; agrees upon the price; inspects it, receives it, and uses it; and yet the formal certificates are signed by others, and the navy agent pays the money. THE NAVAL STOREKEEPER. This office is not created by law, and the duties of the office are prescribed entirely by the regulations of the Navy Department. The salary does not seem to be fixed by law, but the amount paid is $1,700 per annum. The duty of this officer is to receive and take charge of the naval stores in the yard and deliver them upon proper requisitions for the use of the service. The following statement 76 NAVAL CONTRACTS AND EXPENDITURES. shows the amount of stores on hand at the different navy yards, July 1, 1858: Navy yards. On hand July Received. Expended. On hand July 1, 1857. 1, 1858. Portsmouth. —.. $751,685 50 $161,962 43 $182,681 32 $730,966 61 Boston —----. 1,530,800 39 862,247 22 764,882 62 1,628,164 99 New York —_ —- 1,315,019 03 556,712 03 457,578 38 1,414,152 68 Philadelphia -.-..... 526,426 93 295,800 90 293,002 44 529,225 39 Washington. —. 528,115 43 475,634 58 545,267 91 458,482 10 (Gosport --- - 1,565,958 28 446,883 38 473,015 06 1,539,826 60 Warrington ----—... 341,316 80 61,819 26 70,320 22 332,845 84 Total. —------ 6,559,352 36 2,861,059 80 2,786,747 95 6,633,664 21 It appears that by the books of the department there should have been in the yard at Brooklyn stores of the value of $1,414, 152 68 on the first of July last, but whether that amount is on hand or not has not been ascertained. No inventory has been taken for years. Anson Herrick, the present storekeeper, was appointed in March, 1857, and during that year an attempt to make an inventory was commenced, but after some months' trial was abandoned. From the manner in which the books were previously kept, as shown by Herrick, it is utterly impossible to ascertain the condition of the public stores, from the accounts of the department, until a detailed inventory is completed. Mr. Herrick testifies that previous to his time, when a vessel was fitted out for service, all her stores of every kind furnished were charged as expended. If the ship returned with part of the stores on board, they were passed over to the storekeeper, and not charged to him. Thus the books of the storekeeper showed that but two comparing watches, furnished the forward officers on going to sea, were charged to the storekeeper as on hand; yet there had been 15 or 16 in the drawer. Of these, about seven were stolen, and the storekeeper could deliver over to the government the two watches called for by the books, and have several left. They also find that the present storekeeper neglects his official duties. He is an active editor in the city of New York; has no experience as a storekeeper except that, as a boy, he used to attend a grocery store. He is seldom in his office, and considered his duties well done when he signed his name to receipts and returns prepared by his clerks, and carried to his office in New York for signature. He testifies that his clerical force was too small, and that the returns are behind, and cannot be written up for several months; that he has two clerks-two writers-one foreman, who signs Mr. Herrick's name to receipts to contractors, and seventeen laboring men; and yet he testified that he did not know that he spent one-seventh of his time in the duties of storekeeper. To use his own language: "I do not spend but very little time in the navy yard, for this reason: these papers and documents are brought to me by my chief clerk, who is my son, whom I see every day, or by the messenger-one of the laborers being employed as a messenger. I appointed my NAVAL CONTRACTS AND EXPENDITURES. 77 own son first clerk because I could have confidence in him. All the papers that are necessary for me to sign, when I am not at the yard, are brought to me, and an account of all the business that is done in the yard is brought to my house and reported to me." Commander Rootes testifies that the force in the storekeeper's department has always been too large, and that this fact and Mr. Herrick's neglect of duty have been reported to the department. With out further detail, and referring to the testimony, the undersigned report that the civil officers of the yard have not and do not, as a general rule, attend properly to their official duties; that their appointment has been controlled by political reasons, and not by their fitness or qualifications for their respective offices. PHILADELPHIA NAVY YARD. The attention of the committee was directed to one transaction at this yard. In August last a requisition was made upon the naval constructor for eighty oakum spinners. There were then employed ten to fifteen spinners, who were generally "old salts" disabled for active duty and yet competent to spin oakum; the work is nothing but rubbing oakum upon the knee. The naval constructor did not deem a greater force necessary, and refused to sign the requisition. The master calker brought it to Captain Carr, the commander in the yard, who also refused to sign the requisition. Thereupon, Hon. Thomas B. Florence, a member of this House, came to Washington, and asked the Secretary to direct the eighty oakum spinners to be employed. It was referred to the Bureau of Yards and Docks. Commodore Smith declined at first, but he received a slip of paper signed by Mr. Welsh, the chief clerk, on which was written in pencil as follows: "The master workmen having made a requisition for eighty additional pickers, you will see that it is complied with." This was enclosed in the written application of Mr. Florence. The order was then issued to the commander of the yard, and the "oakum spinners" were set to work. Commodore Carr testifies that when the men came in he went down and took a look at them; "they were the lame, the halt, and the blind; but they did the work. I made a place for them until they worked the oakum up." They were then discharged. All the oakum spinning for a year was crowded into a few weeks. The undersigned refer to the testimony of Mr. Florence for the motive of this transaction. REMEDY FOR ABUSES. Your committee have directed their attention, as far as time would permit, to the best mode of correcting existing abuses in the management of navy yards. They have considered whether, 1st, all or some of the navy yards could not be dispensed with with advantage to the public service, and the construction and repair of vessels be done by private enterprise. 2d. Whether work in all or some of the navy yards could not pro 78 NAVAL CONTRACTS AND EXPENDITURES. perly be suspended, and they be placed in ordinary until existing abuses are corrected or the state of the treasury will allow further improvements. Your committee have not fully considered these propositions and do not report upon them. All work in the navy yards or upon vessels of the United States depends upon the annual appropriations of Congress, so that Congress by granting or withholding appropriations may determine these questions without changing existing laws. In concluding their report upon this branch of the investigation, the undersigned call the attention of Congress to the necessity of a general law prescribing the manner of making government contracts. The existing laws consist of detached sections of various laws, in most cases attached to appropriation bills, and often unconnected with each other. It is difficult to ascertain from the law the powers and duties of officers authorized to make contracts. Abuses, therefore, naturally occur. The undersigned at this late period of the session have not time to mature a bill, but deem it their duty to call the attention of Congress to the subject. CONTRACTS FOR MACHINERY. The inquiry of your committee into the contracts for machinery for the vessels of the United States has been mainly confined to the contracts made for the machinery of the vessels now building under the act of June, A. D. 1858. On the 26th of July sealed proposals were invited by the Secretary of the Navy for the steam machinery, &c., for the seven sloops-of-war authorized by that act. The specifications did not prescribe the form, plan, or details of the machinery, but promised a drawing of the section of the vessel to any one making application therefor. It required the bidder to guaranty certain results, such as power, speed, economy of fuel, and the like, but left the design and the arrangement of the machinery with the party whose proposition should be accepted. Under these specifications proposals were made by most of the leading marine engine builders in the United States, accompanied in each case by pHans and drawings. The following is a statement of these bids: Large sloop at Portsmouth, New Hampshire, 1.,000-horsepower. Morgan Iron Works, New YTork. $143,000 AllaireWorks $110,000 West Point Foundry-.... 136, 000 Novelty Iron Workst ------ 98,500 James Murphy & Co. — - 13.S,-000 Woodruff & Beach, Hartford'.. 125,000 Small sloop, Boston, 75&0-horse power. Morgan Iron Works, New York.. $110, 000 Locomotive Works, Boston0. —.. $104 000 James Murphy & Co, New York. 07, 000 Atlantic Works, Boston --- 100, 000 Allaire Works, New Yorkt..... 97,000 Woodruff & Beach, Hartford ---- 118, 000 Large sloop, New York, 1,000-horse power. Morgan Iron Works, New York.. $137, 500 Allaire Works, New York...... $105, 000 James Murphy & Co., New YorkC 130, 000 Novelty Iron Works, New Yorkt 97, 000 West Point Foundry, New York. 130,000 Woodruff & Beach, Hartford ---- 125,000 * Accepted bid. f Lowest bid. NAVAL CONTRACTS AND EXPENDITURES, 79 Large sloop, Philadelphia, 1,000-horsepower. Reaney, Neafie & Co., Philadelphia $145, 500 Novelty Iron Works, New Yorkt $98,000 Merrick & Sons, Philadelphia.. 102, 000 Murray & Hazelhurst, Baltimore- 110, 000 Morgan Iron Works, New York.. 141,000 Woodruff & Beach, Hartford ---- 125, 000 Allaire Iron Works, New York- 110, 000 Large sloop, Norfolk, 1,000-horsepower. Reaney, Neafie & Co., Philadelphia $152, 000 Woodruff & Beach, Hartford -—. $125, 000 Morgan Iron Works, New York - 142, 000 Murray & Hazelhurst, Baltimore_ 115, 000 Novelty Iron Works, New York- 100, 000 C. Reeder, Baltimoret -------—. 94, 000 Small sloop, Pensacola, (direct-action engines,) 750-horse power. Reaney, Neafie &Co., Philadelphia $153, 000 Woodruff & Beach, Hartford..... $118, 000 James Murphy & Co., New York- 127, 000 Locomotive Works, Boston --- 11 115, 000 Morgan Iron Works, New York'-. 120, 000 Murray & Hazelhurst, Baltimoret 100, 000 West Point Foundry, New York. 118, 000 At this stage of the proceedings, before the Secretary had passed upon any of the bids, the following letter was sent by Colonel W. C. Patterson, of Philadelphia, to the President: PHILADELPHIA, September 13, 1858. DEAR SIR: I venture to suggest to you the importance of awarding the contracts for the machinery of the sloop, now building at the navy yard at this time, and if it can be done without prejudice to the public service, to Merrick & Sons. Theirs is the only establishment in the first district which employs a large number of mechanics; at this time, 390; when in full work, 450. The managing partners (Mr. M., sr., being absent, in bad health,) are full of energy, straining every nerve to keep their force during this depression, and, in so far as I know, the only old whigs of any influence in that district who are in favor of the re-election of Colonel Florence. I know, from former experience, the value of that influence, and feel persuaded that it is the interest of the democratic party to increase it. The first district will, I hope, be carried in any event, but with that shop at work, full handed, two weeks prior to the election, the result would, I think, be placed beyond all doubt. With much respect, W. C. PATTERSON. The PRESIDENT. This letter was sent to the Secretary of the Navy by the President with this endorsement: SEPTEMBER 15, 1858. "The enclosed letter from Colonel Patterson, of Philadelphia, is submitted to the attention of the Secretary of the Navy. J. B." The undersigned regard this as a serious offence. It is the duty of the Secretary to determine which of the bidders was the "lowest responsible bidder," and to award to him the contract. It is a judicial act. The rights of parties under the law, and the rights of the government, were involved in the award. Any suggestions of fact or motive, except those which would enable the Secretary to adjudge which of the competing bidders was the lowest responsible one, was improper. The Secretary was the subordinate of the President, holdAccepted bid. t Lowest bid. 80 NAVAL CONTRACTS AND EXPENDITURES. ing office at his pleasure, naturally controlled by his will; and by law he is frequently required to award and adjudge without regard to the President.-(Decatur vs. Paulding,. 14 Pet., 515; 6 How., 101-2.) Under these circumstances the President suggested to the Secretary, and in writing called his attention to the importance of awarding one of the contracts for machinery to Merrick & Sons, in order to secure the potent political influence of that firm in favor of the reelection of Colonel Florence, and thus place the result of the election in his district beyond doubt, and generally to increase the influence of that firm, that it might be exercised in favor of the democratic party. If the President had suggested to a judge of the United States courts that he render a judgment in favor of one of the parties litigant in a cause pending before him, because that judgment would aid in the election of a party favorite, or would contribute to the success of the democratic party, the general voice of the people would demand his impeachment. Is it a less serious offence when this suggestion is made by the President to the Secretary of the Navy? The judge is beyond the power of the President; the Secretary is within his power. Each is required to perform judicial functions. The suggestion by the President of corrupt motives to either is equally dangerous, and is more likely to succeed with an officer whose tenure of office is the will of the President. The terms of the note of the President could not be misunderstood by a subordinate. No one can read the letter and note without a conviction that the inducement in the letter was regarded by the President as a proper one to be submitted and to require the attention of the Secretary. Thus endorsed, the corrupt motive suggested would decide the award without regard to cost, unless the Secretary evinced a higher sense of public duty than his superior. Should it be said that the letter did not influence the award, the reply is, that the offence is in submitting a corrupt motive to the consideration of the Secretary. But the award was made to Merrick & Sons. How far it influenced the award can only be inferred from the proceedings in the case. On the 20th of September, 1858, the Secretary appointed an advisory Board of Engineers to examine the proposals, and each member of the board was required to report which proposal in his opinion should be accepted. The board was composed of Samuel Archbold, engineer-in-chief of the United States navy; W. W. W. Wood, Henry Hunt, and Daniel B. Martin, chief engineers. Martin was the patentee of Martin's vertical tubular boiler, and previous to the proposals had made arrangement with some of the bidders that he was to receive a specific sum, varying in amount from $750 to $1,000 for the privilege of using his boiler. There was nothing in the specifications advising bidders that the adoption of Martin's boilers was a requisite to success. It was not generally adopted, except in government vessels. The horizontal tubular boiler was generally used in marine engines. The drawings exhibited the details of the machinery, and the Board of Engineers NAVAL CONTRACTS AND EXPENDITURES. 81 would necessarily know whether Martin's boiler was included in the bid. Merrick & Sons specified Martin's patent in their proposals, although they did not use it in other marine vessels. One of the firm testified that one motive for including that boiler was they had supposed that they would, perhaps, be more likely to succeed in their proposals if they adopted that form of boiler. They therefore previously agreed upon a stipulated price with Martin for the use of his boiler and embodied it in their plans. The specifications required that: "The offers must be for a specific sum for putting the whole in successful operation; must include all patent fees; and the department will require a release from the proprietors of any patented article or arrangements used in or about the machinery," &c. This would necessarily involve a previous agreement of Martin with those parties who included his boilers in their plans, and would make him directly interested to the extent of his patent right, in accepting the bids of those who would pay him for its use, and rejecting those who preferred another boiler. It is clear this was known to the Secretary. It had been the subject of complaint previously. Martin had placed on the record a release to the government for the right to use his boiler on government vessels while he remained engineer-in-chief of the United States, but he was removed in 1857 because of his interest in patents. Martin testifies that he told the Secretary of his interest, and on that ground asked to be relieved from service on advisory boards. The interest of Martin was also discussed between the Secretary and Dickerson. In deciding upon the proposals, no award was made except to those whose drawings showed the Martin boiler. The lowest bid for the Norfolk sloop was by C. Reeder, of Baltimore, and was for $94, 000. Two of the board, Messrs. Archbold and Hunt, were in favor of accepting this bid. All agreed that the engines were good; but Messrs. Martin and Wood did not like the boilers. In his answer, Martin thus states his objection: "Mr. Reeder's plan of engines is good and his price satisfactory, but his plan of boiler I cannot recommend; if they were made satisfactory I would recommend him for the Norfolk ship." If the boiler had been "satisfactory" to Mr. Martin, it would have secured a majority of the board in favor of this bid. As, however, the board was divided, a new advertisement was issued, new bids were received, and the contract for the Norfolk ship was finally awarded to Messrs. Murray & Hazelhurst, of Baltimore, for $131, 000, or $37,000 more than Reeder's first bid. It appears from the testimony of Martin that he prepares plans for bidders; that he receives pay for such plans-in one case as high as $500; and that his fees now as consulting engineer for private parties amount to more than his salary as chief engineer in the navy. In addition, his patent fees for the boilers and valves used in the machinery of the five sloops, awarded partly upon his opinion, is over $4,000. He has now a H. Rep. Cor. 184 6 82 NAVAL CONTRACTS AND EXPENDITURES. claim pending before Congress for $13,000 for the use of his patent boiler in the vessels of the United States. It is impossible for your committee or the House to ascertain whether the action of the other members of the board was proper or not. The rejected plans and drawings have been returned to the bidders. The specifications were so drawn as to leave the whole matter to the Secretary of the Navy. If in the specifications the details had been prescribed, the only questions to determine would have been the price and security. It is said that the mode adopted secured the best engineering skill in the country; that engineers having the speed, &c., desired, might seek to secure a contract by improvements on existing plans. What weight ought to be given to these considerations we are not prepared to say. Upon the plan adopted there is no check upon executive officers in awarding contracts. Some real or fancied defect in the machinery, or any part of it, such a suggestion as that of the President, political influence, favoritism for certain bidders, or, as in Martin's case, a known or concealed interest, might induce an award to a party whose bid is many thousands higher than another responsible bidder. The easy answer to all complaints is, that the plans of the successful bidder are better. Bidders of high character and ability, whose engines have been successful in commercial vessels, finding their bids repeatedly rejected, and the higher bids of inexperienced parties, without facilities or experience in constructing marine engines, accepted, naturally attribute it to political or other improper influences, and refuse again to incur the expense of preparing plans and drawings, and the loss of reputation incurred by their rejection. Thus the government work becomes monopolized by a few whose political relations are right, and the government gets the poorest work at the highest price; a competition for work for the government becomes a mere scramble of partisans, decided, not by the highest skill and lowest prices, but by political influence. The Board of Engineers unanimously reported in favor of Merrick & Sons for the Philadelphia ship, at $102,000. This was the house described in the letter of Colonel Patterson. The lowest bid was by the Novelty Works, New York, perhaps the most extensive work of the kind in the United States, at $98,500. For the Pensacola sloop the board was divided; Archbold and Hunt were in favor of the Boston Locomotive Works, at $115,000; Martin and Wood were for the Morgan Iron Works, at $120,000. Martin had previously engaged with the proprietors of the Morgan Works for the use of his patent, at $1,000. The Secretary, without further proposals or reference, awarded the contract to the Morgan Works. The lowest bidder for the Pensacola sloop was Murray & Hazelhurst, at $100,000. They are marine engine builders of high character and ample facilities. For the Boston sloop Martin and Wood were in favor of the Boston Locomotive Works, at $104,000; Archbold and Hunt were for other bidders. The Secretary awarded the contract, without further pro NAVAL CONTRACTS AND EXPENDITURES. 83 posals or reference, to the Boston Locomotive Works. The lowest bidder was the Allaire Works, New York, at $97, 000. For the Portsmouth or Kittery sloop the board was unanimously in favor of Woodruff & Beach, of Hartford, at $125, 000. The lowest bid was that of the Novelty Iron Works, at $98,500. It is proper to say that Mr. Beach is remotely connected by marriage with the Secretary. But the committee see nothing in the evidence to show that he was favored on that account. For the New York sloop, Archbold, Martin, and Wood reported in favor of James Murphy & Co., at $130,000. The lowest bid was that of the Allaire Works, of New York, one of the most extensive works in the United States, at $105,000. D. B. Allen, one of the proprietors of these works, made one of the written complaints which led to this investigation. Their bid was low because of the general depression of the commercial marine, and their machinery such as has been sanctioned by private enterprise. They have constructed more marine engines than any other establishment in the country. From the statement of the reports of the members of the board, it appears that the vote of Martin prevailed in every instance. Upon an equal division of the board his opinions were adopted by the Secretary in the case of the Pensacola and Boston sloops; and that upon his objection to the boiler proposed for the Norfolk sloop a contract was refused to Reeder, and was finally awarded to meet Martin's views. The aggregate difference between the lowest bids and the accepted bids for the machinery in the sloops is $82,000. THE GRIFFITH SHIP. The struggle for the contract for the machinery of the smaller sloop-of-war building in Philadelphia, known as the "Griffith ship," presents some features requiring notice. Before the law of June 12, 1858, was passed, Mr. Norris, an engineer, who for some years had retired from active business, desired, in connexion with John W. Griffith, to build a vessel of light draught and great speed for the navy of the United States. Upon the recommendation of Mr. Norris, in June last, and in pursuance of a previous promise by the President to Mr. Norris, Mr. Griffith was appointed temporary naval constructor at Philadelphia. Mr. Griffith at once prepared his plans for the ship, and sent them to the department. They were somewhat peculiar, and designed to secure light draught and great speed, but to have a heavy armament. Mr. Norris prepared his plans for the machinery, and made a bid in September, 1858, to construct that machinery for the government at $126,000. The two plans were designed, and the machinery and the vessel were intended for each other. When the bids were opened it was found that the machinery of Mr. Norris was the only kind proposed that was adapted to the peculiar model of the ship, and that he alone of the bidders had been furnished with the midship sections, plans, and views of the vessel, and knew that it was to have two propellers. Under these circum 8 L NAVAL CONTRACTS AND EXPENDITURES. stances, new proposals were very properly invited. Norris adhered to his bid, and proposals were submitted by Reaney, Neafie & Co., of Philadelphia, and the Allaire Works, of New Yoik. The contest, however, was soon narrowed down to Norris and Reaney, Neafie & Co. The bid of the latter was $139,000. A board of four engineers of the navy was called to consider these bids, with the plans and specifications of each. The board was equally divided in its report. Each party, without complaint from the department, sought to succeed by political influence. The singular spectacle was presented of an ex-member, without knowledge of an engine, managing for one party, while the other pressed his party services. On the 2d of November, 1858, Norris urged the acceptance of his proposals, in a letter to the Secretary, thus: " On the score of politics, which I have never mentioned before, I have greater claims upon the government than my competitors. Our shop, at Bush Hill, Philadelphia, was the first institution in this country that raised the banner of Buchanan and Breckinridge. The day after the nomination we raised the standard, with full length portraits of the President and Vice President, and at the election our shop furnished 764 votes for them. Notwithstanding the present monetary depression we gave 312 votes for the administration at the last election. We have supported the party with material aid by thousands of dollars, and worked hard, as any of the party in Philadelphia will testify." On the 9th of November last Hon. James Landy, a member of this House from Philadelphia, appeared before the Secretary of the Navy to urge that the award be made to Reaney, Neafie & Co. The same firm employed William H. Witte, an ex-member of Congress, as their agent, who at once established intimate social relations with some of the officers in the Navy Department. This agent was to receive for his services one-fourth of the profits of the contract, in case it was awarded to Reaney, Neafie & Co. It is to be remarked that he was employed by that firm only to secure government contracts, and had been successful, in 1857, in securing the contract for the Lancaster, for which he has received, as part of his share of the profits, $5, 000. He knew nothing of machinery, and was only employed, as he testifies, on account of his "character and standing. " On the 16th of November last Norris sent to the Secretary a letter from J. B. Baker, collector of Philadelphia, of which the following is an extract: " I have been intimately acquainted with the Messrs. Norris Brothers for many years, and have had laige business transactions with them, and it may not be amiss to state that they have always heartily advocated and sustained the democratic party. In the campaign of 1856 their establishment not only contributed many hundred votes to elect our present Chief Magistrate, but, to my knowledge, contributed largely in other ways to bring about that result." Also, a letter from Hon. Henry M. Phillips, of this House, of which the following is an extract:' Messrs Norris are good democrats, willing and faithful members of the party, who,'through weal and through woe,' have labored zealously for its success. " Their fame as mechanics is world-wide, and they are men of high character, and it will be to the fourth district a matter of essential service for them to succeed in their present application. "Personally, mechanically, and politically meritorious, if their proposal is not extras agant, I earnestly hope that it will be accepted." NAVAL CONTRACTS AND EXPENDITURES. 85 Also, a letter from John Hamilton, jr., of which the following is an extract: " I know no men better entitled to receive the attention of a democratic administration than those composing this firm; with a world-wide celebrity as machinists of the first class, they have also been known as democrats who have never faltered in their active and earnest devotion to the cause; men who, amidst the very howling of the tempest raised by the opposition, are more energetic and determined in their support. I trust that the claims of these gentlemen, who are so well qualified to perform whatever they may undertake, and who are so deserving as democrats, will not be overlooked." To counteract these letters, Reaney, Neafie & Co. relied upon the active interested agency of Mr. Witte, who pressed their claims as a democratic firm. He also procured from Mr. Baker, the collector, a letter, of which the following is an extract:'' A few weeks since I was requested by Mr. William Norris to state in a letter to you my knowledge of the political character of the locomotive establishment of Messrs. R Norris & Son, of Philadelphia, which I did; but I did not intend to convey the impression (as I learn has been the case) that the marine engine works of Messrs. Reaney, Neafie & Co., were not of the same political creed, whom I know by reputation, and it is proper to say, is of the highest character." Somewhat similar letters were also written to the President and referred to the Secretary. Thus, in a letter under date of November 15, 1858, Mr. Phillips writes of Norris Brothers: " They have been and are my very good friends, active, zealous and disinterested democrats Their establishment is within my district, where they employ many hundreds of operatives, who, under their exerted influence, were valuable members of our party during our last disastrous campaign." Colonel Florence, a member of the House, in an interview with the Secretary, recommended Mr. Norris. These efforts to enlist political influence in awarding contracts were received without objection or reproof, and were placed on the files of the department, and, with the awards and other papers, were sent to your committee. A highly intelligent contractor testifies that within two or three years it has been a common thing for bidders to satisfy the department as to their political opinions. If jobs and contracts become the recognized rewards for partisan services, and are disbursed and distributed without regard to the written law, as a mode of refunding money contributed and spent in elections, and these abuses are tolerated by the people, then may the money of the people be taken directly from the public treasury to corrupt or overthrow the elective franchise. Yet these motives are strongly and confidently urged by high officers of the government to the high officers charged with a judicial duty, and also to the Chief Magistrate, whose duty it is to execute the law. On the 29th of November, 1858, the Secretary desired a board of civil engineers, not of the navy, to examine the propositions of Mr. Norris, and of Reaney, Neafie & Co., and to express in writing which of the two was preferable. A majority of the board reported in favor of Mr. Norris' plan. Thus the matter stood until December 21, 1858, Mr. Norris supposing that the question was settled in his favor. At that date the Secretary submitted to MIr. Norris a written proposition of guaranty of speed, which, at the request of the Secretary, Mr. Norris copied 86 NAVAL CONTRACTS AND EXPENDITURES. and signed. Norris was not informed that it would be considered as a new offer, or as varying his former bid, but he signed it for the satisfaction of the Secretary, and in the words written by him. The next day, if the date is correct, December 22, 1858, Witte, as the agent of Reaney, Neafie & Co., submitted a written "explanation" of their proposal, in which they stipulated for a somewhat higher speed. Their guaranties were treated as new proposals, and were, on the same day, referred to Archbold, the engineer-in-chief, who had steadily opposed Norris' plans. Archbold on the same day reported in favor of Reaney Neafie & Co., and the contract was awarded to them. The undersigned do not deem it necessary to pursue this controversy further. Charges of fraud, favoritism, and improper disclosure of the plans of competing bidders were made. The facts and the claims of each party are fully shown in the testimony and documents herewith submitted. THE READING FORGE AND HON. J. GLANCY JONES. As an incident to this branch of their inquiry, it became necessary for your committee to examine a charge that Hon. J. Glancy Jones, now a civil officer of the government, had, while he was a member of this House, received money from the Reading Forge for his services in obtaining for it contracts with the government. Our attention was first called to this charge by the testimony of Dr. Cockroft, giving a statement of James Murphy, a contractor for the construction of the steam machinery for the United States steamship Brooklyn. The purport of the statement was, that he was obliged to let the forging for the vessel to the Reading Forge Company, understood to belong to Mr. Jones. An intimation was also made to Mr. Quintard, of the Morgan Works, New York, the successful bidder for the Pensacola sloop, that if he got the forging work done by the Reading Forge, it would be acceptable or satisfactory to certain parties. Hon. W. H. Keim, a member of this House, testified that he, as secretary and treasurer of the company, made an agreement with Mr. Jones to the effect that, if he would get work for the forge to do, the company would allow him five per cent. on the amount he obtained; that the kind of work contemplated was forging shafts, &c., for vessels of the United States navy. The inducement to the company to make the contract with Mr. Jones was the fact that he was a member of Congress, and it was supposed that he would have facilities for getting work that others would not. Prior to this agreement, Mr. Jones wrote the following letter to General Keim: HOUSE OF REPRESENTATIVES, May 18, 1854. DEAn GENERAL: I received your letter this morning, and have just had an interview with the Secretary of the Navy. He informs me that all the machinery will be given out on contract, except, perhaps, what is made in Washington. The Secretary will advertise for bids, but will not give it to the lowest bidder; he will contract with the offer which he thinks is best for the government. Now, I think I can serve my town and constituents by securing a fair por NAVAL CONTRACTS AND EXPENDITURES. 87 tion from those who want these contracts; with this the Secretary has nothing to do; but we can do a great deal ourselves by being ready to meet these contractors. I will write you again soon, and send you the notice when the Secretary advertises. Truly yours, J. GLANCY JONES. General W. H. KEItM. Under this agreement Mr. Jones did get work for the forge in 1854, for the steamer Wabash, amounting to $10,000 or $11,000, upon which he was entitled to five per cent. The contract for the work was made with Merrick & Sons. General Keim ceased to be secretary and treasurer of the company in the spring of 1855, and was succeeded by M. A. Bertolet. Mr. Bertolet testifies that the contract with Mr. Jones was frequently spoken of in the meetings of the board, when the justness of paying him what was agreed upon was spoken of. On two or three occasions the witness met Mr. Jones and told him that he was very sorry that the concern was in such a condition pecuniarily; that he did not see how he could pay him any money then. He testifies he always understood that Mr. Jones was the agent of the company, and that the company had either agreed with him or proposed within themselves to give him a certain per centage for such work as should be procured through his agency. He testifies that Mr. Jones did get work for them from the government in 1855, in the repair of the Minnesota, the amount of which was $3,109 48, and that this sum was paid to the forge company by the government. It also appears from the books of the company that the forge company did work for the government in 1856, in the items amounting to $6,481 16, and for contracts under the government for a large amount. Mr. Bertolet continued in office but one year, and was succeeded by Charles McClenigan, who is now in Rio Janeiro. Peter McLaughlin became secretary on the 20th of September, 1858. The company failed about three months afterwards. During all this time the forge did a large amount of work for the government and its contractors. Mr. McClenigan writes to the creditors of the company, under the date of November 25, 1857, 6' our prospects for the future are very flattering, as we have at this time positively secured the forging for three of the United States sloops, and a very fair chance for the forging for the remaining two; also the government work, which we at present are looking after." The agency of Mr. Jones was known generally. At New York it was supposed to be an ownership of the forge. Mr. Bartol, a partner or agent of the firm of Merrick & Sons, Philadelphia, writes under date of July 24, 1858, to the superintendent of the forge, " Colonel Florence, who is just from Washington, says it is a settled fact that two of the new sloops are to be built here." After suggesting that the Forge bid for the machinery of one of them, he inquires, " will Mr. Jones support your proposition so as to get the job?" The reply of the treasurer in due time declines the offer and says, " Mr. Jones is also of opinion that it might seriously affect the interest of the forge company." No account was opened with Mr. Jones in the ledger of the Reading forge. The check book of the company was not before your 88 NAVAL CONTRACTS AND EXPENDITURES. committee. How much he received for his services, how much is due to him still on his contract, it is impossible to tell. In the expense account items of money paid to Mr. Jones at various periods were found as follows: "October 2, 1854. Office expenses debtor to the Farmers' Bank for check No. 523, drawn to pay J. Glancy Jones' expenses to Waslington city, $30. " November 26, 1856. Office expenses debtor to Farmers' Bank for this amount, check No. 858, sent to J. Glancy Jones for expenses in procuring work for the Reading steam forge, $250. "September 28, 1857. Office expenses for this amount borrowed money of A. J. Nichols, to pay J. Glancy Jones, esq., expenses to Washington on business for the company, and returned the same in check No. 1038, $100." The undersigned therefore report that Hon. J. Glancy Jones did, while a member of this House, enter into a contract with the Reading forge company by which he agreed to procure work for it from the government, in consideration of which he was to receive five per cent. commission; that he did procure contracts to be made between the government and said Reading forge, in which he was interested to the amount of said commission; and that he did receive money from said company for said service. The evil tendencies of such transactions are manifest. If members of Congress and other officers of the government may be employed with money to solicit at the executive departments and bureaus for contracts and jobs, it cannot be expected that their influence will be resisted. The law will soon be disregarded, and offices, employments, and contracts will be bartered and sold without regard to the public service. By the first section of the act of April 26, 1808, it is provided thus: " No member of Congress shall, directly or indirectly, himself or by any other person whatsoever, in trust for him, or for his use or benefit, or on his account, undertake, execute, hold, or enjoy, in the whole or in part, any contract or agreement hereafter to be made or entered into with any officer of the United States, or with any person authorized to make contracts on the part of the United States; and if any member of Congress shall, directly or indirectly, himself or by any person whatsoever, in trust for him, or for his use or benefit, or on his account, enter into, accept of, agree for, undertake, or execute any such contract or agreement, in the whole or in part, every person so offending shall for every such offence, upon conviction, &c., be adjudged guilty of a high misdemeanor, and shall be fined three thousand dollars, and every such contract or agreement as aforesaid shall be absolutely null and void." By the third section of the same act it is provided"In every such contract or agreement to be made, or entered into, or accepted, as aforesaid, there shall be inserted an express condition that no member of Congress shall be admitted to any part of such contract or agreement, or to any benefit to arise therefrom." NAVAL CONTRACTS AND EXPENDITURES. 89 The interest of Mr. Jones in the contracts between the government and the Reading Forge Company was certain, direct, and purely of a pecuniary nature. By the third section of the act of February 26, 1853, it is provided that if any member of Congress shall, for compensation paid or to be paid, either certain or contingent, act as agent or attorney for prosecuting any claim against the United States, or shall receive any share or gratuity or interest in any claim, &c., he shall be liable to indictment as for a misdemeanor; the penalty is a fine of $5,000 or imprisonment, or both,, The clear design of these laws was to prevent a member of Congress from having any pecuniary interest in a contract with any officer of the government, or in any other claim against the government. Whether a contract of agency to procure contracts from the government where the compensation is a per centage on the amount of the contract is embraced in the language of the law might be a matter of doubt; but it is clearly within the spirit of the law, and is most pernicious and corrupting in its effects. In the one case an interest in the contract would be disclosed by the contract itself; while in the other case it may be more readily concealed or covered under the pretext'of local interest for constituents. The undersigned recommend, in order to remove all doubt as to the meaning of the act of April 20, 1808, the passage of a provision of law to punish as a misdemeanor any member of Congress who, for money, acts as an agent in pecuniary contracts with the government. In conclusion, the undersigned recommend the adoption of the following resolutions: Resolved, That the Secretary of the Navy has, with the sanction of the President, abused his discretionary power in the selection of a coal agent and in the purchase of fuel for the government. Resolved, That the contract made by the Secretary of the Navy, under date of September 23, 1858, with W. C. N. Swift, for the delivery of live-oak timber, was made in violation of law, and in a manner unusual, improper, and injurious to the public service. Resolved, That the distribution by the Secretary of the Navy of the patronage in the navy yard among members of Congress was destructive of discipline, corrupting in its influence, and highly injurious to the public service. Resolved, That the President and Secretary of the Navy, by receiving and considering the party relations of bidders for contracts with the United States, and the effect of awarding contracts upon pending elections, have set an example dangerous to the public safety and deserving the reproof of this House. Resolved, That the appointment by the Secretary of the Navy of Daniel B. Martin, chief engineer, as a member of a board of engineers to report upon proposals for constructing machinery for the United States, the said Martin at the time being pecuniarily interested in some of said proposals, is hereby censured by this House. All of which is respectfully submitted. JOHN SHERMAN. DAVID RITCHIE. 90 NAVAL CONTRACTS AND EXPENDITURES. Communication from Hon. Isaac Toucey to the Committee. NAVY DEPARTMENT, February 14, 1859. SIR: I have received your letters of the 8th and 9th instant, with copies of certain testimony, and an expression of the desire of the committee over which you preside to receive from me any statement or information in regard to it which I may wish to present. I now comply with the request, and first with reference to the contracts for live-oak timber, made under the advertisement of June 14, 1858. No live-oak timber had been purchased by advertised contract for the last sixteen years, excepting in these instances: 1st. A contract made September 12, 1848, for 11,000 cubic feet. 2d. A contract made in September, 1855, for the frames of six large sloops-of-war, cut to moulds to replace that which had been taken for the six large steam frigates built in 1855, of which two have since been used for the sloops-of-war "Lancaster " and " Pensacola," authorized in 1857, and the other four can only be used for ships of that class. 3d. The want of additional quantities of live oak having been repeatedly urged by the Bureau of Construction, the department, on the 1st of July, 1857, authorized a contract to be made for such timber as would replace in part what had been taken from the complete frames of ships-of-the line and frigates, which the wants of the service had made it necessary to break in upon, and also to provide cooked timber suitable for the repairs of vessels of the larger classes, of which the supply was wholly insufficient. For several years past the repairs on the sloops-of-war and smaller vessels have been very great, and have gradually absorbed the best and the most of the small size timber, and the want of that timber was every day becoming more apparent. Thus, this kind of timber being absolutely wanted, it became advantageous and economical to purchase that which had been refused on the existing contracts for being below the contract size, rather than to cut the larger and more valuable pieces that remained of the old stock, or that was then coming in on the new contracts. So great was the want of this smaller timber, that it had been used to a considerable extent in the Norfolk and Kittery yards, in the latter to the amount of $3,972 47, before authority was obtained in proper form to make the purchase, the officers in those yards believing that the public interests warranted that course. And so great was the deficiency of live-oak timber in the navy yard at Pensacola, that there is not now a stick of that kind in the yard which has not been purchased since. While this deficiency of timber in the navy yard was known to exist, reliable information was received in the month of May last, that the British government had revived the pretended right of search, and NAVAL CONTRACTS AND EXPENDITURES. 91 that the British cruisers were exercising it upon the merchant vessels of the United States in the neighborhood of Cuba. This information created great excitement throughout the country. It is only necessary to refer to the warlike debates in both Houses of Congress to appreciate its extent. To resist the exercise of this right, a fleet of twelve war vessels was fitted out and despatched to the neighborhood of Cuba, with instructions given them from time to time, between the 14th of May and the 15th of June, to protect all vessels of the United States against the exercise of the right of search on the high seas, in time of peace, by the armed vessels of any other power. These instructions would probably have produced a collision, had not the right been abandoned by the British government. While this was going on, Congress, on the 12th of June, passed an act requiring the Secretary of the Navy to cause to be constructed "as speedily as may be consistent with the public interests," eight war steamers of light draught, "combining the heaviest armament and greatest speed compatible with their character and tonnage." On the 3d of July orders were given to all the navy yards that they should be launched by the next meeting of Congress, and that nothing should be permitted to prevent it. By the same act Congress made an appropriation to defray the expenses and compensation of a special commissioner in execution of the joint resolution passed on the 3d of June, authorizing the use of force if necessary, "for the adjustment of difficulties with the republic of Paraguay." Independent of this resolution, the President determined to act promptly, and measures were taken to increase the squadron on the east coast of South America, so that it should consist of twenty armed vessels, including two store ships, most of them to be fitted for the purposes of the expedition. In this threatening posture of affairs, with the public mind excited by the revival of the pretended right of search, with no certainty that the attempt to suppress it would not bring us into collision with Great Britain, with a squadron of twelve ships in the vicinity of Cuba to resist it, with a larger squadron of twenty ships to be prepared and concentrated in the direction of Paraguay, and with eight war steamers of the smaller classes to be constructed, according to the injunction of Congress, as speedily as might be consistent with the public interests, I deemed it my duty, upon consultation with the chief of the Bureau of Construction and Repair, to meet the exigencies of the service by promptly directing, on the day of the adjournment of Congress, June 14, that an advertisement be issued calling for a supply, in as short a time as practicable, of live-oak timber, most of it of smaller dimensions than had been usually required, such as was adapted to the construction of the smaller vessels just authorized by Congress, and to the extensive repairs both of large and small vessels which the exigencies of the service would be likely to require. I would have resigned my place before I would have failed to act with the promptitude which the occasion seemed to demand. The list was made out by the chief of the Bureau of Construction according to his own judgment of what the interests and necessities of the service required, without interference by me in its details, and the advertise 92 NAVAL CONTRACTS AND EXPENDITURES. ment was issued on the 14th of June, calling for one-half on the 1st of September and the other half on the 1st of February following, giving to bidders two and a half months' notice to make contingent arrangements for the first delivery, and seven and a half months' notice for the other. The time allowed in the advertisement for this timber was sufficient for persons who were actual dealers in such timber, and who in making offers intended to comply with them, or were in any degree prepared, but was much too short for any speculator who had it in view to dispose of his contract to other parties. These were the reasons which influenced the department in the exercise of its discretion in this particular case, and when the contracts were executed, I was assured by the experienced officer in charge of the Bureau of Construction and Repair that the measure had proved highly economical and beneficial to the government, saving to it probably about twenty-five thousand dollars beyond what could have been accomplished by an open purchase. After the contracts had been awarded to the lowest bidders, a question arose to which I applied the principle of a decision I had previously made, viz: that when the department advertised for a contract upon certain terms, and one of the bidders applied to a subordinate officer and obtained assurances of more favorable terms at variance with those advertised, and regulated his bid accordingly, the department would enforce the advertisement and not the assurances of the subordinate, and the assurances thus obtained would constitute no ground of relief, because unfair to other bidders. When, therefore, it appeared that those to whom the contracts were awarded had neither performed them nor intended to perform them when they bid, but had acted upon information or assurances obtained at the navy yards from subordinate officers at, variance with the terms of the advertisement, the department set aside the forfeited contracts and instead of purchasing or contracting in open market or of the next highest bidder and charging the difference to the defaulting parties, accepted a contract with Mr. Swift for the whole amount at the lowest bid, which was much lower than the bids which he had made, thereby saving the defaulting contractors from loss, securing the best terms for the government, and requiring him to accept as low a price for the timber to be delivered immediately as if time had been given to go into the live-oak forests of Florida or Louisiana, to cut it. The department did not advise any one of the contractors as to the course he should pursue, but apprised them, unequivocally, at all times, that the time of delivery, as advertised would not be postponed, for the reasons I have stated. When I came into the department I found a system established which commenced during the administration of Mr. Fillmore, of purchasing coal for the use of the navy by the instrumentality of two coal agents, one for anthracite, the other for bituminous coal, with a compensation of five per cent commission on the cost of purchase and transportation contracted for by the agent. There was also during Mr. Fillmore's administration a special agency for supplying with coal the East India and Pacific squadrons during the Japan Expedition. Messrs. Howland & Aspinwall, of New York, were the special NAVAL CONTRACTS AND EXPENDITURES. 93 agents employed by Mr. Graham, Secretary of the Navy, under an agreement of the date of April 3, 1852, by which they were allowed ten per cent. commissions on the purchase money, cost of transportation, insurance, and other unavoidable expenses, deducting therefrom the commissions allowed the agents for supplying coal within the United States. This agreement was modified by Mr. Dobbin on the 11th of August, 1853, by which, after the 1st of September following, the agents were to ship not exceeding one thousand bushels per month, the department agreeing to pay the cost of the coal, lighterage, cartage, freight, primage and demurrage, and a commission of six per cent. on the cost of the coal, including freight or transportation. Their commissions under this agency in the years 1852, 1853, and 1854, amounted to $50,975 86, while the commissions of all other coal agents for supplying our steam vessels of war with coal during the whole period from 1850 to the present time, amounted only to the sum of $19,851 59, and for supplying the navy yards to the further sum of $18,358 47. This special agency was abolished by Mr. Dobbin in 1854. There has been no other change in the system except only that, in pursuance of the policy expressed in the act of Congress of September 28, 1850, of giving preference to American productions. I have caused anthracite coal to be sent from Pennsylvania mines, by American vessels chartered by the department, and without any special agency, to the East Indias, Pacific, and all other foreign stations where it could be delivered at no greater cost than that of foreign coal delivered at the same place. This has caused an increase of purchases of coal in this country, but it has proved most decidedly an economical and beneficial improvement, as will appear by detailed returns which are now probably before the committee, securing, without any increase of cost to the government, what is deemed the best coal in the world for war steamers-the anthracite coal of Pennsylvania. No change has been made in the bituminous coal agency, nor in that for anthracite, except that the former agent, Mr. Tyson, at the end of four years from his appointment, was succeeded by Mr. Hunter, the present agent, whom I appointed in May last upon the most reliable recommendations, leaving him to the discharge of his duty upon his own responsibility. I was not aware until the present investigation, that he had employed another person to aid him, allowing him to share in his commissions as his predecessor had done, nor of any want of attention on his part. It was well known to the department that the navy was supplied with coal of the best kind and quality for naval purposes at less cost than formerly, at what was deemed in the bureaus reasonable prices, and that the bills passed under the inspection and required the approval of the most faithful and vigilant officers of the government, who were in the constant practice of instituting inquiries into the reasonableness of prices, and of refusing payment when they were excessive. It is not now the opinion of the bureaus, alter full inquiry, that the price paid, $3 85 per ton of the best anthracite coal for steam puposes, screened, selected, and delivered at the vessel in Philadelphia, has been excessive or unreasonable. 94 NAVAL CONTRACTS AND EXPENDITURES. The department has at all times left both these agents for the purchase of coal perfectly free in the discharge of their duty upon their own responsibility, with such assistance as they might choose to employ at their own expense, subject only to the checks which exist on shipboard and at the naval stations, where it is the duty of the proper officer to report any deficiency in quantity, or quality and also to the constant supervision of the chiefs of the bureaus, under whose orders the purchases are made, and by whom the bills must be examined and approved before they can be passed. Both these high officers enjoy my entire confidence; confidence not only in their capacity, but. in their vigilance and uprightness. I should be very willing to give full details of the action of the department in reference to the navy yards and to the contracts for steam machinery for vessels-of-war, but as no evidence has been transmitted to me on those subjects, I shall content myself with a brief general statement. The system by which the navy yards are managed is the same which I found established when I came into office, with some improvements. The commandant of the yard is responsible for its general condition. It is his duty to correct or report any abuse which may come to his knowledge. He receives all orders from the department, and is authorized to use the proper means to execute them. If an order is given that a vessel be built or repaired, or other work done, he directs the employment of the men, and fixes the number to be employed, without interference by the department. He is authorized and required to dismiss any workman, and to report any master for neglect or misconduct. When a master is thus reported to the department, an investigation is ordered, he is notified, witnesses are examined, and the testimony returned to the department for its action. The master has the selection of the men, subject to the approval of superior officers, and is held responsible for them and the work done by them, under his charge, and has therefore, authority to dismiss them. This system of responsibility is found to work well in the navy yards generally, although there is greater difficulty and embarrassment in the Brooklyn yard from the superabundant population of the great adjacent cities pressing for employment, and resorting to all legitimate means to obtain it. This difficulty will not be obviated by any system that can be adopted. Men must be employed; they must come from the neighboring congressional districts; they must be selected by some one; they should be selected by the master workman, who is responsible for them, subject, indeed, to proper restrictions and supervision; and this master workman must always feel and have to contend with the presence of vast numbers seeking employment and especially during periods of commercial distress. He is also exposed to the accusations of dismissed and disappointed workmen, and to the scrutiny of vigilant competitors seeking his place, and if there be any well founded charge against him, it is quite sure to be made known to the officer whose duty it is to inquire. There has been no report against any master workman of any of the Atlantic navy yards since 1 have been in the department, except in five cases; one for alleged misconduct several years ago, which was NAVAL CONTRACTS AND EXPENDITURES. 95 fully investigated by my predecessor, one for intoxication which has been investigated and followed by a new appointment; one for temporary insanity where the master was afterwards restored upon his recovery and producing a certificate from his physician that it would not be likely to recur, and the other two cases recently for neglect of duty, which have been investigated and the returns having just come in will soon be disposed of. These are the only instances of charges presented to the department, and if there be any presented to the committee which have not been preferred to the commandant of the navy yard, and opportunity given to the parties implicated to defend themselves, it is at least very doubtful whether such charges can be or ought to be sustained; at all events, neither the department nor the officers of the yard have had any knowledge of them. There has been an increase of the number of men employed, but it has taken place simultaneously in all the yards and for the reasons already stated-the increased activity of the service, the expedition to the neighborhood of Cuba, the expedition to Paraguay, the construction of eight new steamers cas speedily as might be consistent with the public interests," in obedience to the injunctions of Congress. There is one instance where the bureau has been induced to depart from the general rule of non-interference with the number of men to be employed, and that was in the navy yard at Philadelphia, to an inconsiderable extent in useful work, upon the urgent plea of necessity, humanity, and utility, pressed by a gentleman of high and honorable character, incapable of falsehood. The course of the department in reference to contracts for steam machinery for vessels of war, has been to prescribe certain conditions, advertise for plans and proposals subject to such conditions, and award the contracts according to the merits of such plans and proposals, having due regard to price. They cannot, from the nature of the case, be awarded to the lowest bidder, having reference to the price only, because no two persons bid for the same thing, each plan being different from the others, and it being the object of the government to obtain the result of the highest skill. The bids are given under seal; are not opened until the time for receiving them has expired; and, of course, no one can know what they contain, except the party himself and those to whom he may communicate it. A board of engineers is appointed, and each is required to give his individual opinion and his reasons for it. Often they are unanimous; sometimes there is a single dissenting opinion; and sometimes they are equally divided. I have in no case, that I am aware of, awarded a contract in opposition to the opinion of a majority, although I should feel at liberty to do so. The contract given to Messrs. Merrick & Sons, of Philadelphia, in regard to which a letter from Colonel Patterson to the President was by him in the usual course, without an intimation of any wish on his part, referred to this department, was awarded to them upon the merits of their plan and proposalsin accordance with the unanimous opinion of the board of engineerstheir bid being lower than those of the other bidders whose plans were approved. The President did not in any manner interfere in 96 NAVAL CONTRACTS AND EXPENDITURES. this case, nor has he in any other case of contract since I have been in the department. In all the contracts made under the act of the last session, the department obtained an absolute guarantee of the number of revolutions of the propeller in a minute; instead of the usual number of about forty, the contractors guaranty eighty, and, in one instance, a hundred. In one contract that for the vessel under construction at Norfolk-awarded to Messrs. Murray & Hazlehurst, of Baltimore, there is a guarantee of the speed of fifteen statute miles an hour, under a forfeiture of twelve thousand five hundred dollars, to be deducted from the price if the speed fall to fourteen miles per hour, and half that sum if it fall to fourteen and a half miles. In the contract for the vessel at Philadelphia, awarded to Messrs. Reaney, Neafie & Co., there is a guarantee, not only for one hundred revolutions of the propeller per minute, but also for the speed of sixteen statute miles per hour, under the forfeiture of fifteen thousand dollars, to be deducted from the price if the speed fall to fifteen miles per hour, and half that sum if it fall to fifteen and a half miles. A more stringent and advantageous contract for the government has not been made. The awarding of this contract having been the subject of comment, I will take the occasion to say, that the charge made against a very competent and faithful officer, the engineer-in-chief, by an excited and interested party was fully:.investigated by me and found to be without the slightest foundation, except in a misapprehension of that party, fully explained, and that the contract was awarded to the lowest price, to the best guarantee, to the highest experience in the construction of marine engines, against no experience at all, and in accordance with the opinion of a majority of the engineers whom I consulted on the subject. I have the honor to be, sir, very respectfully, your obedient servant, ISAAC. TOU CEY, Secretary of the Navy. Hon. JOHN SHERMAN, Chairman Committee Investigation, &c.. House of Representatives. JO U RNAL THIRTY-FIFTH CONGRESS, SECOND SESSION. CONGRESS OF THE UNITED STATES. IN THE tHOUSE OF REPRESENTATIVES, January 18, 1859. Whereas D. B. Allen, a citizen of the State of New York, specifically charges that certain officers in the Navy Department, in awarding contracts for the construction of vesseis-of-war of the United States, have been guilty of partiality, and of violation of law and their public duty; and whereas grave charges have been made that money appropriated for navy yards and for the repair of vessels of the United States has been expended for partisan purposes, and not for the purpose prescribed by law: ThereforeResolved, That a committee of five members be appointed to examine1st. Into the specifications and bids for, and the terms of, the contracts for the work and labor done or materials furnished for the vessels of the United States constructed, or in the process of construction or repair, by the United States since the fourth day of March, 1857, and the mode and manner of awarding said contracts, and the inducements and recommendations influencing said awards. 2d. Into the mode and manner in, and the purposes for, which the money appropriated for the navy and dock yards, and for the repair and increase of vessels, has been expended. That said committee have power to send for persons and papers, and have leave to report by bill or otherwise. Attest: J; C. ALLEN, Clerk. JANUARY 20, 1859. In pursuance of foregoing resolution, the following members were designated this day by the Speaker to constitute the select committee: Mr. Sherman, Ohio; Mr. Bocock, Virginia; Mr. Ritchie, Pennsylvania; Mr. Groesbeck, Ohio; Mr. Ready, Tennessee. Attest: J. C. ALLEN, Clerk. THURSDAY, January 20, 1859. The committee met upon call of its Chairman. Present: Chairman, Messrs. Bocock and Groesbeck. The following order was adopted: Ordered, That the House be requested to give leave to this committee to employ a stenographer, at a compensation not exceeding the rate paid the reporters of the Congressional Globe; and that the comH. Rep. Corn. 184 — gS~98 aJOURNAL. mittee have leave to sit during the sessions of the House, and to report at any time. The following papers were laid before the committee, and ordered to be spread upon its minutes: NEW YORK, January 12, 1859. MY DEAR SIR: This is to call your attention to sundry transactions of the Navy Department relative to the giving out of the contracts for the machinery of the steamers constructed under the late act of Congress. I am connected with the "Allaire Works" of this city, an establishment engaged in the business of constructing steam-engines; and I have regarded it as due to the country that the misuse of the government funds, of which we have become cognizant, should be brought to the notice of some member of Congress who may deem it his duty to look to the protection of the public interests. The Secretary of the Navy advertised for proposals, under certain forms of specifications, to furnish engines, boilers, &c., for a steamer at Porstmlouth, a steamer at New York, a steamer at Philadelphia, a steamer at Gosport; and likewise (of a different class) a steamer at Boston, a steamer at Philadelphia, and a steamer at Pensacola. For the first named class the Allaire Works sent in proposals, plans, and drawings, in accordance with the specifications, accompanied by a bid of $105,000 for the New York ship. The contract was given to Mr. Murphy, as we are informed and believe, for $132,000. For the second named class the Allaire Works sent in proposals, plans, and drawings, in accordance with the specifications, accompanied by a bid of $97,000 each, for the Boston and Philadelphia ships. After these bids had been sent in, in conformity with the advertised call, the Allaire Works were informed that the requirements for the Philadelphia engines had been altered and enlarged; and, conformably to these alterations, the Allaire Works sent in a second bid. It now appears that the Washington Board of Engineers could not agree on the award of the Philadelphia contract, and an outside board of engineers was called in to decide. One of this outside board informs us (accidentally, of course, for all these matters are expected to be kept close, and no information is openly accessible to the outsider,) that the only propositions submitted to them for the Philadelphia ship were those of Neafie, of Philadelphia, and Merrick, of Philadelphia. It had been a foregone conclusion that Philadelphia should have the contract; but with those who formed that conclusion some meant Neafie when they said Philadelphia, and some meant Merrick. Hence the difficulty; Neafie and Merrick both being backed up by strong influences, unknown to the uniniatiated. The Pensacola contract was obtained by the "Morgan Works" of this city. The engines and specifications for this vessel were precisely the same as those for Philadelphia and Boston, above alluded to, for which the Allaire Works bid $97,000; and for this Pensacola job the Morgan Works got $120,000 as the price at New York, and $10,000 extra for putting up at Pensacola; in all $130,000. As to the manner in which this contract was obtained * * * we JOURNAL. 99 can get direct information through a gentleman of character and high standing of this city, who does not wish to state what he knows upon the subject unless it is sure to be properly investigated and exposed in the right quarter and in the right way. He says he knows all about the means by which this contract was secured; and further, that he saw a letter written by President Buchanan to the Morgan Works, requesting them to give the forging to the "Reading Forge," (a concern in which J Glancy Jones was at the time largely interested.) In reference to the Washington Board of Engineers, who passed upon the proposals, sent in under the advertisement of the Secretary of the Navy, it may be well to note that Mr. Martin is one; that this Martin, as we are informed, is the patentee of a boiler, the use of which secures to him about one thousand dollars for each vessel; that the best judges upon the matter would not have this boiler in a ship, under any circumstances, even as a gift; but the government vessels, in all cases, have these " Martin" boilers. There is some mystery in this. In fact, the government specifications are so " got up" that it is easily rendered impossible for any establishment that is outside of the' clique' to get a contract on any terms. The Boston contract (of the second above named class) was given to the " Boston Locomotive Works" for $104,000, and with a more favorable allowance of room to them than was made in the advertised specifications. This information we get from the man who made the drawings of the engines for the Boston Works, and who is a New Yorker, especially called in to perform this service. The Allaire Works' bid for this same job was $97,000! This subject should be investigated, if possible, before a committee of the House, clothed with power to obtain the proper evidence. There is no other way that it can properly be done. You must recollect that all the information we get under the present system has " leaked out." Sufficient has thus leaked out to satisfy us that there is corruption within; and the only way to lay this bare is to have an investigating committee, and then the evidence will be drawn out from parties who would not like to be known as volunteers. Before such a committee, having power to compel the attendance of witnesses, &c., further facts will be developed. In the hope that what I have stated herein may serve to commend the subject to your notice, I am, very respectfully, your obedient servant, D. B. ALLEN. Hon. JOHN SHERMAN, Washington, D. C. The following extract is from the " North American and United States Gazette," of date January 13, 1859:'In September last Mr. Norris, of Philadelphia, engineer, offered proposals for furnishing the steam machinery for a sloop-of-war now building at the Philadelphia navy yard, in compliance with an advertisement of the Hon. Isaac Toucey. He was infoimed, subse 100 JOURNAL. quently, that copies of his drawings had been sent to a competing bidder, when he went to Washington, and asked an explanation from the Secretary of the Navy. Mr. Toucey assured Mr. Norris that so disgraceful an act could not be perpetrated by any person in his department, and denied it emphatically.'~ Two boards of naval engineers were successively appointed to examine and report upon the plans submitted by Mr. Norris and his competitors. Certain members of those boards were influenced by the engineer-in-chief to vote against Mr. Norris, and the result was a tie in both boards. " Mr. Toucey then appointed a board of engineers, not in the navy, who gave a clear and full majority in favor of' Mr. Norris. " Mr. Toucey, however, for reasons best known to himself, delayed the decision from day to day, and finally, finding that Mr, Norris could not be deprived of the contract by fair means, resorted to covert means of a most questionable character, by raising a new issue. He told Mr. Norris that he desired him to add to his proposals a. schedule of prices for relative speeds, and gave him the starting point in figures, thus proposing a formula to suit himself. As soon as the Secretary obtained this estimate from Mr. Norris, the agent of his competitors was informed of the rate, and their bids were regulated, accordingly, a shade lower. Upon this new point, thus made, and apparently for the express purpose of inveigling Mr, Norris into a snare, the Secretary rendered a decision against him. " Mr. Norris then entered a protest, by an affidavit setting forth the existence of fraud and corruption in the Engineer Bureau. The President and Attorney General interposed in behalf of Mr. Norris, and arrested further action on the part of the Navy Department. Mr. Toucey assured Mr. Norris if he could substantiate the fact that copies of his drawings had been furnished to his competitors from the bureau, he would dismiss the engineer-in-chief, and see him righted. "Upon this suggestion Mr. Norris addressed Mr. Toucey a letter, requesting that certain officers attached to the corps of naval engineers should be permitted to testify. No reply was given to that application. "Mr. Norris then submitted various affidavits and letters substantiating the charge he had preferred. After retaining this testimony for three days, Mr. Toucey announced the following conclusion to Mr. Morris, viz: That the turnishing copies of his (MJr. Norris') plans and drawings was of no momwent, inasmuch as he himsef had authorized the engineer-in-chief to furnish them; or, in other words, to do the very thing for which, if proved, he had previously threatened to dismiss him! "' Mr. Toucey also ignored the rest of the testimony, and gave his final decision against Mr. Norris, But before the award was issued to ir. Norris' competitors, the Attorney General and the President interfered a second time to prevent the consummation of so flagrant a wrong. "The matter is now in the hands of the President, and, it is said, he will order an inquiry, when some startling disclosures may be expected. If he should not do so Congress may assume that responsibility." JOURNAL. 101 HOUSE OF REPRESENTATIVES, January 12, 1859. SIR: I shall give my vote in support of your motion that the naval bill, reported by the Committee of Ways and Means, be referred to the Committee on Naval Affairs. And one reason why I am disposed in this case to sanction the departure from the ordinary usage of the House is, that I feel confident that the bill as reported contains appropriations some of which are altogether unnecessary, and several of which will lead to profligate squander of the public money. Within a year past my attention has been attracted to the mode in which the moneys appropriated for the Brooklyn navy yard have been expended, and I have become satisfied that abuses of the grossest description exist in respect to the expenditures made at that place. It is almost notorious that the privilege of laboring there is accorded without special reference to the capabilities of the persons seeking employment, and that the privilege has more or less the subject of traffic. There are quite a number of persons employed in the yard known by the name of master workmen who receive their appointments, not from the commandant of the yard, but from the Secretary of the Navy. That political considerations and personal influences have controlled these appointments is a fact that will not be controverted. This might hardly be a fair subject of complaint were it not that the result has come about that the public service suffers from the acts of the parties who have obtained those places as those of political reward. I am assured that the Brooklyn navy yard was unreasonably and unnecessarily stocked with laborers about the period of the last November election; and that such undue employment must work an injury to the public service, and tend to the demoralization of the humbler classes of men residing in New York and its vicinity is a matter too clear for doubt. Some of these master workmen make sale of the privilege of working in the yard. Some exact from the laborers a share of their wages. These practices-for, from the frequent instances which have been brought to my notice, I think they may be so regarded-necessarily induce the employment of persons unfit for labor, and to frauds upon the treasury. In view of these facts I would suggest to you that any appropriations made for the Brooklyn navy yard should be so regarded that transfers shall not be permitted from one object to another, and that stringent inquiry as to the actual necessity should precede the making of any general appropriations for repairs to be expended. at that yard. While I am satisfied that the Committee of Ways and Means would with entire unanimity condemn the practices to which I have referred, I do not believe that they have the time to give the subject matter of the navy yard appropriations that thorough scrutiny which I know the public interests demand. I take the liberty to suggest for your consideration the propriety of the passage of a law which should confer upon the commandant of the yard the appointment of the masters. This would insure more appropriate appointments and aid in the decentralization of the navy yard 102 JOURNAL. patronage, which, in my judgment, is mischievously and wantonly employed. Your knowledge of the necessities of the naval service will enable you to suggest such measures of legislation as will relieve. New York and its vicinity from the evils which have already resulted from the political profligacy which the patronage of the navy yard undergoes. Our colleague, Hon. J. H. Wortendyke, has bestowed considerable attention to the manner in which the money appropriated by Congress for that yard has been expended, and may be able to give you such information as will aid you in the preparation of a necessary bill. For one I shall never vote for these navy yard appropriations until some reasonable security shall have been by law provided for their proper expenditure. Yours, very respectfully, H. F. CLARK. lion. JOHN SHERMAN. The undersigned charge Thomas O'Connor, foreman of sawyers in the navy yard, Brooklyn, with the following offences and misdemeanors: First. That on or about the 2d day of June, 1854, the said Thomas O' Connor, then being foreman of sawyers, as aforesaid, fraudulently contracted with Mlaurice Fitzgerald that he, the said foreman, Thomas O'Connor, should give employment in the navy yard aforesaid to ones Edward Fitzgerald, brother of the said Maurice, if he, the said Edward, would give fifty cents a day to him, the said Thomas O'Connor, in consideration of such employment. Second. That, in pursuance of such contract, the said Edward Fitzgerald was employed and went to work in the navy yard aforesaid; the standing wages of the government, $2 a day; and that, from the period between the 2d day of June, 1854, until the 22d day of December, 1854, the said Thomas O'Connor exacted and took from the said Edward Fitzgerald, through the hands of the said Maurice, the sum of' fifty cents per day for every cay that Edward worked, although the said Edward was permitted, in order to cover the fraud, to draw the full amount, then refund, through his brother, the portion of his day's earnings. Third. That when the said Edward, who was in necessitous circumstances at the time of the first agreement, began to object to the continued allowance and deduction from his earnings, perceived a great disfavor on the part of the said Thomas O'Connor; and at length, when the said Edward would no longer submit to the imposition and exaction aforesaid, he, the said O'Connor, discharged the said Edward from the employment of the government of the United States without any other cause than that of refusing an allowance of fifty cents per day. Fourth. That the said Thomas O'Connor, about three weeks afterwards, called upon Maurice Fitzgerald while at work in the navy yard aforesaid, and then and there proposed to re-employ the said Edward if he, the said Edward, would give him, the said Thomas O'Connor, the sum of twenty-five cents per day for such employment; that he then and there employed him on these terms. JOURNAL. 103 Fifth. That the said Thomas O'Connor was paid and received in all the sum of $125 28 out of the earnings of the said Edward Fitzgerald. Sixth. That the said Thomas O' Connor permitted and sanctioned the drawing of moneys from the department which were not justly due to the parties drawing. Seventh. That the said Thomas O'Connor proposed to Maurice Fitzgerald to return him for full time, although the said Maurice was absent, on condition that he, the said Maurice, should pay to him one-half of the amount so received for lost time. Eiygth. That the said Thomas 0' Connor actually was paid and did receive one-half of such lost time. Wherefore, the undersigned pray that the said Thomas O' Connor may be examined and dealt with according to law and the rules and regulations of the navy of the United States. Sworn to before me, this 4th day of January, 1859, a commissioner of deeds of the city and county of New York. MAURICE FITZGERALD. JAMES SCARMELL. Subscribed and sworn to before me this 4th day of January, 1859. E. S. McPHERSON, Commissioner of Deeds. STATE OF NEW YORK, City of New York, to wit: Patrick Owens, beiig duly sworn according to law, saith: That he has worked in the Brooklyn navy yard for several years as a sawyer, and was discharged; that during the building of the Niagara he did apply for work to the said Thomas 0' Connor, as sawyer in said yard, and that after he paid the said O'Connor the sum of $20 he, the said Owens, was again set to work. PATRICK OWENS. Duly sworn before me, this 4th day of January, 1859, a commissioner of deeds, of the city and county of New York. E. S. McPHIRSON, Commissioner of Deeds. CITY OF NEW YORK, January 4, 1859. This is to certify that I, Michael Gillian, was employed as a laborer in the Brooklyn navy yard on or about the month of August, 1855, and continued on until about the month of June, 1856, when I was employed as a sawyer in said Brooklyn navy yard by Thomas 0' Connor, then master sawyer, and that I have never worked a day before at sawing; and, also, that the said Thomas O' Connor did exact and receive the sum of fifty cents per day of my wages as a consideration for such employment; and, further, that he returned me as an operator in said yard for time that I did not work, as I was out of the yard doing his, the said Thomas 0' Connor' s, business. MICHAEL GILLIAN. In the presence ofF. D. MULFORD. 104 JOURNAL STATE OF NEW YORK, City of New York, to wit: Thomas Kerrigan, being duly sworn according to law, saith: That, during the administration of President Pierce, Thomas O' Connor was master sawyer of the Brooklyn navy yard, and that he did allow Rodger McCormick, who was then working as a sawyer in the said yard, to go out of said yard after answering to his name on the 8th, 9th, and 10th, and one-half of the 14th, days of May, 1856, on business other than that of the government. And that the said Rodger McCormick did receive full pay for the above mentioned time, by and with the sanction of the said Thomas O' Connor. Duly sworn this 4th day of January, 1859, before me, a commissioner of deeds of the city and county of New York. THOMAS KERRIGAN. Subscribed and sworn to before me this 4th day of January, 1859. E. S. McPHERSON, Commissioner of Deeds. Adjourned to meet to-morrow at 111 o'clock a. m. JOHN SHERMAN, Chlairmano FRIDAY, January 21. 1859, The committee met pursuant to adjournment. Present: The Chairman, Messrs. Bocock, Ritchie, and Ready. The following was adopted: Ordered, That the Secretary of the Navy be furnished with a copy of the resolutions constituting this committee. That he be requested to furnish it, as soon as practicable, the originals, copies, or duplicates of the following papers: 1. The specifications and advertisements for bids for the engines and other work let by contract for the sloops-of-war authorized by acts of March 3, 185[, and June 12, 1858. 2. The several bids made for said engines and other work and materials. 3. The action of the department, together with the proceedings and names of any agent or board thereon. 4. The contracts made thereon. 5. The correspondence of the department, or any agent thereof, with any bidder or contractor for said work. 6. All papers and evidence on file in the department charging employes in the Brooklyn navy yard with selling offices or employmnents in said yard, or with illegal or corrupt practices in employing officers or workmen, or in contracting for work or materials, or in disbursing money for said yard. 7. The correspondence of Commodore Lawrence Kearney with the department in regard to his removal from the Brooklyn navy yard, and that between him and the Hon. George Taylor, if communicated to the department, 8. The number of men employed in the Brooklyn navy yard on the 1st and 15th days of each of the months of October, November, De JOURNAL. 105 cember, 1858, and January, 1859, and the causes of the increase or diminution. 9. The number and pay of each class of officers, foremen, master workmen, and laborers connected with the navy yard at Brooklyn, by whom appointed, and their powers and duties. 10. The mode of appointment and the number and pay of master workmen prior to and since the 4th of March, 1857, and the reasons for the change... 11. All correspondence with members of Congress since the 4th of March, 1857, relating to the change or the appointment of master workmen. 12. What new offices or employments have been made in the Brooklyn navy yard since the 4th of March, 1857, and the pay of each. 13. And such other information on the files of the department as in the opinion of the Secretary would aid the committee in complying with the resolution of the House. Ordered, further, That the Secretary of the Navy be also requested to inform the committee: 1. Upon what vessels of the United States repairs have been made at each of the navy yards, and the amount and character of expenditure upon ea'ch since the 4th of March, 1857. 2. What portion, if any, of the work now done at the navy yard could be'done by contract with advantage to the service. 3. The cost for each year of the government expenditures in the navy yards, and the increase and repairs of vessels, and for employes connected therewith, arranged in tabular form, and showing, as far as practicable, each class of said expenditures in separate columns. The following letter from the chairman of the select committee was transmitted with the foregoing: WASHINGTON, January 21, 1859. SIR: In compliance with the order of the special committee of the House of Representatives on naval contracts and expenditures, I have the honor to transmit to you a copy of the resolutions under which they are acting, and a series of resolutions calling for information from the Navy Department, as it is the desire of the committee to progress with their duties as rapidly as possible. I am instructed to request that you furnish each branch of the information as soon as practicable, without waiting for the completion of the whole. The committee propose to commence the examination of witnesses, at their room in the Capitol, on Monday next at 10 o'clock a. m., and I am instructed to express the desire of the committee that you co-operate with it in executing the resolutions of the House. For that purpose its members respectfully invite your attendance at any or all of its sessions. If practicable, we desire to have the information stated in the first five clauses by Monday next. Very respectfully, JOHN SHERMAN, Chairman. Hon. ISAAC ToucEY, Secretary of the Navy. 106 JOURNAL. On motion, it was Ordered, That the sergeant-at-arms be directed to subpoena, forthwith, the following witnesses: D. B. Allen, William Cockroft, Lawrence Kearney, Alexander Ward, B. Donelly, of New York; Frederick Saunders, William N. Brady, William Norris, of Philadelphia. Ordered, That William Blair Lord be appointed stenographer, in case the House allows one; and that he be directed to procure from the postmaster suitable stationery for the committee, and a room in which to hold its sossions. Adjourned to meet on Monday next at 10 o'clock a. m. JOHN SHERMAN, Chairman. MONDAY, January 24, 1859. The committee met pursuant to adjournment. All the members present. The following witness was examined: No. 1. Frederick Saunders, New York: The Chairman laid before the committee sundry letters and communications received by him in relation to the investigation by this committee. Ordered, That the following persons be summoned to appear and testify before this committee: Patrick Fitzgerald, 1 Lewis M. Berry, { Thomas Berry, ) Brooklyn navy yard. Michael Riley, William Merrifield, J Myers Carrell, engineer Morgan Works, New York. Lawrence Cohane, New York. Commodore S. S. Lee, navy yard, Philadelphia. Commodore Thomas R. Roozes, Norfolk, Virginia. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. TUESDAY, January 25, 1859. The committee met pursuant to adjournment. All the members present. The Chairman laid before the committee a communication from the Navy Department, transmitting certain papers in relation to building the sloop-of-war Brooklyn. By order of the committee, the Chairman addressed the following letter to the Secretary of the Navy: JOURNAL. 107 WASHINGTON CITY, D. C., Tuesday, January 25, 1859. SIR: The special committee on naval contracts and expenditures desire, for the present, to limit the information called for in the first five points of their inquiry of the 21st instant to the engines for the sloop-of-war built under the act of June 12, 1858. I am also directed to request that the information called for in classes No. 7, No. 9, and No. 10 of said inquiry be furnished as soon as practicable. Very respectfully, yours, JOHN SHERMAN, Chairman. Hon. ISAAC TOUCEY, Secretary of the Navy. Adjourned to meet to-morrow morning at 10- o'clock. JOHN SHERMAN, Chairman. WEDNESDAY, January 26, 1859. The committee met pursuant to adjournment. Present: the Chairman, Messrs. Bocock, Ritchie, and Groesbeck. The following witnesses were called and examined: No. 2. William Cockcroft, New York. No. 3. Thomas R. Rootes, United States navy, Norfolk. By order of the committee the Chairman addressed the following letter to the Secretary of the Navy: WASHINGTON, January 26, 1859. SIR: I have been directed by the special committee upon naval contracts and expenditures to request that copies be furnished them of the correspondence between Commodore T. R. Rootes, (acting commandant;) Commodore Joseph Smith, of the Navy Department, and Mr. C. K. Graham, (naval constructor,) of Brooklyn navy yard, in the year 1858; which correspondence is now on file in the Navy Department and the Brooklyn navy yard. Very respectfully, yours, JOHN SHERMAN, Chairman. Hon. ISAAC TOUCEY, Secretary of the Navy. Adjourned to meet to-morrow morning at 101 o'clock. JOHN SHERMAN, Chairman. THURSDAY, January 27, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were called and examined: No. 3. Thomas R. Rootes, (recalled.) No. 4. William N. Brady, New York. No. 5. Jacob R. Wortendyke, M. C., from New Jersey. No. 6. W. W. Keim, M. C., from Pennsylvania. 108 JOURNAL. No. 7. Bernard Donelly, Staten Island, New York. The Chairman laid before the committee sundry documents received from the Navy Department, in response to call of the committee of the 21st instant. The following persons were ordered to be summoned to ap"pear before the committee: J. Vaughn Merrick, Philadelphia; Frederick E. Sickles, New York; George W Quintard, New York. Committee adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. FRIDAY, January 28, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 7. Bernard Donelly, (recalled.) No. 8. Patrick Fitzgerald, New York. No. 9. Alexander Wood, New York. No. 10. Lewis W. Berry, Brooklyn. No. 11. Michael Reilly, Brooklyn. Ordered, That the following persons be summoned to appear before the committee: Joseph Smith, Navy Department; John Lenthall, Navy Department; W. E. Everett, New York city; J. R. Whipple, Philadelphia. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. SATURDAY, January 29, 1859. Committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 12. Joseph Smith, Navy Department. No. 13. Myers Coryell, New York. No. 14. John Lenthall, Navy Department. Adjourned to meet on Monday morning at 10 o'clock. JOHN SHERMAN, Chairman. MONDAY, January 31, 1859. Committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 11. Michael Reilly, (recalled ) No. 10. Lewis W. Berry, (recalled.) No. 15. Lawrence Cohane, New York. No. 16. Frederick E. Sickles, New York. No. 17. Wm. Merrifield, New York. No. 18. Maybury A. Bartelett, Reading, Pennsylvania. No. 19. Geo. A. Quintard, New York. No. 20. John A. Searing, House of Representatives. No. 21. John J. McElhone, Washington. The following were summoned to appear before the committee: General Charles H. Hunter, J. Lawrence Getz, McLaughlin, Reading, Pennsylvania; John F. Smith, Geo. P. Nevins, John P. JOURNAL. 109 Repplier, Henry S. Crabb, Overton Carr, Philadelphia, Penn.; Joseph Simmons, John White, Daniel B. Martin, Brooklyn, N. Y.; Richard Tiller, Anson Herrick, C. A. Secor, Geo. N. Saunders, New York; Samuel Archbold, Navy Department; John J. McElhone, Washington. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. TUESDAY, February 1, 1859. Committee met pursuant to adjournment. All the members present. The following persons were examined: No. 19. Geo. A. Quintard, (recalled.) No. 22. W. E. Everett, New York. No. 23. William Norris, Philadelphia. No. 24. J. Vaughn Merrick, Philadelphia. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. WEDNESDAY, February 2, 1859. Committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 15. Lawrence Cohane. No. 17. William Merrifield. No. 23. William Norris. No. 24. J. Vaughn Merrick. No. 25. J. P. Whipple, Philadelphia. No. 26. Charles H. Hunter, Reading, Pennsylvania. No. 27. J. Lawrence Getz, Reading, Pennsylvania. No. 28. J. F. Smith, Philadelphia. No. 29. C. Nichols Beach, Philadelphia. Adjourned until to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. THURSDAY, February 3, 1859. Committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 29. C. Nichols Beach, (recalled.) No. 22. W. E. Everett, (recalled.) No. 30. Samuel Archbold, Navy Department. No. 31. Henry S. Crabbe, Philadelphia navy yard. No. 32. Overton Carr, Philadelphia navy yard. No. 33. John G. Repplier, Philadelphia. No. 34. George P. Nevin, Philadelphia. The Chairman was instructed to report the following resolution to the House, and ask its adoption: "Resolved, That the committee on naval contracts and expend"tures have leave to print the testimony taken before it as it progresses." Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. 110 JOURNAL. FRIDAY, February 4, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 35. George Plitt, Philadelphia. No. 36. Joseph Grice, New York. No. 37. Henry G. Beach, Baldwinsville, New York. No. 38. James Landy, House of Representatives. No. 39. John Cochrane, House of Representatives. No. 40. John L. White, Brooklyn navy yard. No. 41. John B. Haskin, House of Representatives. No. 42. Samuel P. Brown, Orland, Maine. It was ordered that a copy of the depositions of Charles H. Hunter, J. Lawrence Getz, John F. Smith, C. Nichols Beach, George R. Nevin, S. P. Brown, George Plitt, Joseph Grice, and H. G. Beach, be furnished to the President of the United States and to the Secretary of the Navy, and that they be notified that the committee will, at any time next week, hear them or any witnesses they may desire to have examined. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman, SATURDAY, February 5, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 3. Thomas R. Rootes, (recalled.) No. 14. John Lenthall, (recalled.) No. 36. Joseph Grice, (recalled.) No. 43. Peter McLaughlin, Reading, Pennsylvania. Adjourned to meet on Monday morning at 10 o'clock. JOHN SHERMAN, Chairman. MONDAY, February 7, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 43. Peter McLaughlin, (recalled.) No. 44. Richard H. Teller, New York. No. 45. Anson Herrick, New York. No. 46. Lawrence Kearny, United States navy. No. 47. S. S. Lee, United States navy. No. 48. C. W. Welsh, Navy Department. No. 49. H. F. Clark, House of Representatives. Adjourned to meet to-morrow at 11 o'clock. JOHN SHERMKAN, CAairman. JOURNAL. 11 TUESDAY, February 8, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 45. Anson Herrick, (recalled.) No. 50. Samuel B. Grice, Philadelphia. No. 51. Daniel B. Martin, New York. No. 52. James Bigler, New York. No. 53. John W. Griffiths, Philadelphia. The following letter was addressed by the Chairman, in pursuance of the order of the committee of February 4, to the President and to the Secretary of the Navy: WASHINGTON, D. C., February 8, 1859. SIR: I am directed by the special committee of the House of Representatives on naval contracts and expenditures, to furnish you copies of certain testimony, and to express their desire to receive at any time during this week any statement or information you wish to make in regard to the testimony, and to invite you to name any witnesses you wish examined. In compliance with this order, I now have the honor to furnish you the depositions of Charles H. Hunter, J. Lawrence Getz, C. Nichols Beach, John F. Smith, John G. Repplier, and G. P. Irvin. The remaining testimony relates to live-oak contracts, and copies will be furnished you as soon as practicable. I am, very respectfully, yours, JOHN SHERMAN, Chairman. The PRESIDENT, Hon. ISAAC TOUCEY, Secretary of the Navy. The following persons were ordered to be summoned as witnesses: B. A. Springer, Geo. F. Tyler, W. W. W. Wood, Charles P. Hayes, J. G. Tell, Diller Luther, Charles Sinnickson, Philadelphia; Eugene Borda, Woodside, Pa.; W. W. Pierce, Boston navy yard; Benj. F. Delano, Charles K. Graham, Artemas Jones, John L. Crawford, John Vandervoort, Brooklyn navy yard; John Appleton, Washington, State Department. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. WEDNESDAY, February 9, 1859. The commIittee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 52. James Bigler, (recalled.) No. 53. John W. Griffith, (recalled.) No. 54. Henry M. McGill, Washington. No. 55. Edward A. Barnett, Philadelphia, United States-navy. 112 JOURNAL. No. 56. John Appleton, Washington, State Department. No. 57. D. B. Allen, New York No. 58. Samuel Spinney, Portsmouth, New Hampshire. No. 59. Samuel A. Trefethem, Rye, New Hampshire. No. 60. Jedediah Rand, Rye, New Hampshire. No. 61. Nathaniel M. Rand, Portsmouth, New Hampshire. No. 62. George Taylor, House of Representatives. Adjourned to meet to-morrow morning at 10 o'clock. JOHN SHERMAN, Chairman. TiURSDAY, February 10, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 29. C. Nichols Beach, (recalled.) No. 52. James Bigler, (recalled.) No. 57. D. B. Allen, (recalled.) No. 63. Charles Hastings, New York. INo. 64. W. W. W. Wood, Philadelphia, United States navy. No. 65. George F. Tyler, Philadelphia. No. 66. Diller Luther, Philadelphia. No. 67. Charles P. Hayes, Philadelphia. No. 68. Charles Sinnickson, Philadelphia. No. 69. R. S. Swackhamer, White House, New Jersey. Adjourned to meet to-morrow mnorning at 10 o'clock. JOHN SHERMAN, Chairman. FRIDAY, February 11, 1859. The committee met pursuant to adjournment. All the members present. The following witnesses were examined: No. 65. George F. Tyler, (recalled.) No. 66. Diller Luther, (recalled.) No. 68. C. Sinnickson, (recalled.) No. 69. R. S. Swackhamer, (recalled.) No. 70. W. C. N. Swift, New Bedford, Massachusetts. N'o. 71. Geo. N. Sanders, New York. No. 72. m. D. Kennedy, New York. Adjourned to meet to-morrow morning at 10 o'clock. JO}HN SHERMAN, Chairman. SATURDAY, February 12, 1859. The committee met pursuant to adjournment. All the members present. It was ordered, unanimously, That the investigation in relation to the navy yard at Porstmouth, New Hampshire, be pursued no iurther by this committee, and, in ccnsequence of this determination, that the JOURNAL. 113 testimony already taken in respect to that matter, that of 58, Samuel Spinney, 59, Samuel A. Trefethen, 60, Jedediah Rand, and 61, Nathaniel M. Rand, be not published. The following witnesses were examined: No. 73. Eugene Borda, Woodside, Pennsylvania.. No. 74. William Turner, Brooklyn, New York.' No. 75. Benjamin H. Springer, Philadelphia. No. 76. Edward N. Dickerson, New York. No. 77. John Kelly, New York. Adjourned to meet on Monday morning, at 10 o'clock. JOHN SHERMAN, Chairman. MONDAY, February 14, 1859. The committee met pursuant to adjournment; all the members present. The following witnesses were examined: No. 75. B. H-. Springer, (recalled.) No. 14. John Lenthall, (recalled.) No. 74. William Turner, (recalled.) No. 78. W. H. Witte, Philadelphia. No. 79. Chas. K. Graham, New York. No. 80. Wm. W. Pierce, Boston. No. 81. Benj. F. Delano, Brooklyn navy yard. No. 82. Thomas B. Florence, House of Representatives. No. 83. Artemus Jones, Brooklyn navy yard. No. 84. John S. Crawford, Brooklyn navy yard. Adjourned to meet to-morrow morning, at 10 o'clock. JOHN SHERMAN, Chairman. TUESDAY, February 15, 1859. The committee met pursuant to adjournment; all the members present. The following witnesses were examined: No. 79. Charles K. Graham, (recalled.) No. 85. John Van Dervoort, Brooklyn navy yard. No. 86. Henry Hunt, Washington navy yard. Adjourned to meet to-morrow morning, at 10 o'clock. JOHN SHERMAN, Chairman. WEDNESDAY, February 16, 1859. The committee met pursuant to adjournment; all the members present. The following witnesses were examined: No. 87. Francis Grice, Philadelphia. No. 88. James Murphy, New York. No. 89. Henry B. Beach, Hartford, Connecticut. No. 90. James B. Maclay, House of Representatives.. Adjourned to meet to-morrow morning, at 10 o'clock. JOHN SHERMAN, Chairman. H. Rep. Corn. 184 —-8 114 JOURNAL. THURSDAY, February 17, 1859. The committee met pursuant to adjournment; all the members present. The following witnesses were examined: No. 91. Samuel T. Hartt, Norfolk, Virginia. No. 92. Robert Leigh, Brooklyn navy yard. The committee proceeded to consider a statement of facts in regard to the coal agency. After discussion, a vote was taken as follows: Yeas-The Chairman, Messrs. Ritchie and Ready. Navs —Messrs. Bocock and Groesbeck. Resolutions upon the same subject, submitted by Mr. Sherman, were approved by Messrs. Sherman and Ritchie, and not approved by Messrs. Ready, Bocock, and Groesbeck. Adjourned to meet to-morrow morning, at 10 o'clock. JOHN SHERMAN, Chairman. FRIDAY, February 18, 1859. The conmmittee met pursuant to adjournment; all the members present. The following witnesses were examined: No. 93. Simeon Chapman, Brooklyn navy yard. No. 94. George A. Blood, New York. The committee proceeded to consider a statement in relation to live-oak contracts and management of the navy yards of the United States; without concluding, the further consideration of the subjeet.s were postponed until to-morrow. Adjourned to meet to-morrow morning, at I1 o'clock. JOHN SHERMAN, CUwhirman. SATURDAY, February 19, 1859. The committee met persuant to adjournment; all the members present. The Chairman submitted a statement of the general results of the investigation, concluding with the following resolutions: Resolved, That the Secretary of the Navy has, with the sanction of the President, abused his discretionary power in the selection of a coal agent, and in the purchase of fuel for the government. Resolved, That the contract made by the Secretary of the Navy, under date of September 23, 1858, with W. C. N. Swift, for the delivery of live-oak timber, was made in violation of law, and in a manner unusual, improper, and injurious to the public service. Resolved, That the distribution by the Secretary of the Navy of the patronage in the navy yards among members of Congress was destructive of discipline, corrupting in its influence., and highly injurious to the public service. Rssovred, That the President and the Secretary of the Navy, by JOURNAL. 115 receiving and considering the party relations of bidders for contracts with the United States, and the effect of awarding contracts upon pending elections, have set an example dangerous to the public safety, and deserving the reproof of this House. Resolved, That the appointment by the Secretary of the Navy of Daniel B. Martin, chief engineer, as a member of a board of engineers to report upon proposals for constructing machinery for the United States, the said Martin at the time being pecuniarily interested in some of said proposals, is hereby censured by this House. Mr. Bocock, without submitting any general statement of the facts, proposed the following as a substitute for the foregoing resolutions: Resolved, That the testimony taken in this investigation discloses the existence of glaring abuses in the Brooklyn navy yard, such as require the interposition of legislative reform; but justice requires us to say that these abuses have been slowly and gradually growing up during a long course of years, and that no particular administration should bear the entire blame therefor. Resolved, That it is disclosed by the testimony in this case that the agency for the purchase of anthracite coal for the use of the Navy Department has been for some time past in the hands of a person wholly inefficient and grossly incompetent, and that reform is needed in the regulations which exist on that subject; but there is no proof which traces any knowledge of such incompetency and inefficiency to the responsible authorities in Washington, nor any which shows that the need of reform grows especially out of any act of theirs; on the contrary, it is expressly proven that the supply of coal for the navy service has been purchased during this administration upon terms relatively as favorable as ever before. Resolved, That while we could never sanction or approve any arrangement on the part of an officer of the government which, under pretence of making contracts for supplies, was designed to confer especial and exclusive favors, yet, in the contract entered into in September, 1858, between the Secretary of the Navy and W. C. N. Swift, for the supply of live-oak to the Navy Department, it is already proven by the testimony that if the Secretary did contemplate any favor to said Swift he did not intend to do so to the detriment of the government; but that in all he did in this matter he kept always in view the good of the public and the interests of the service. Resolved, That in the letting of the contracts for the construction of the steam machinery for the vessels of the navy during the present administration nothing has been shown which calls for the interposition of the Congress of the United States, but it is manifest that the present head of the Navy Department has displayed a very laudable zeal to secure the greatest amount of speed and efficiency attainable in said vessels. The question being taken, the substitute was agreed to as follows Yeas-Messrs. Bocock, Groesbeck, and Ready. Nays-The Chairman and Mr. Ritchie. Mr. Bocock moved that the committee adjourn until Monday morning at 10 o'clock, in order to give the majority an opportunity to 116 JOURNAL. draw up such a statement as they might desire to accompany the resolutions. The motion was agreed to, and accordinglyThe committee adjourned until Monday morning, at 10 o'clock. JOHN SHERMAN, Chairman. MONDAY, February 21, 1859. The committee met pursuant to adjournment. Present: the Chairman, Messrs. Ritchie and Ready. Adjourned to meet on Wednesday morning, at 10 o'clock. JOHN SHERMAN, Chairman. WEDNESDAY, February 23, 1859. The committee met pursuant to adjournment. Present: the Chairman, Messrs. Ritchie & Ready. At 11 a. m. there was a general understanding upon the part of the members present that, at their next meeting, some final action should be had in relation to reporting to the House the result of the examination. Adjourned to meet to-morrow morning, at 102 o'clock. JOHN SHERMAN, Chairman. THURSDAY, February 24, 1859. The committee met pursuant to adjournment; all the members present. Mr. Bocock submitted a report, which he moved be adopted without being read; which was agreed to, as follows: Yeas-Messrs. Bocock, Groesbeck, and Ready. Nays-The Chairman and Mr. Ritchie. Mr. Bocock offered the following resolution, in addition to those submitted by him the other day: Resolved, That nothing has been proven in this investigation which impeaches in any way the personal or official integrity of the Secretary of the Navy. The resolution was agreed to, as follows: Yeas-Messrs. Bocock, Groesbeck, and Ready. Nays-The Chairman and Mr. Ritchie. The Chairman submitted a draft of a bill, entitled " An act reguating navy yards and for other purposes." The bill is as follows: AN ACT regulating navy yards and for other purposes. SECTION 1. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the commanding officer at each of the navy yards shall appoint the master workmen of the yard; each master workman, before his appointment, shall be examined by one civil or two naval officers of the yard, to be detailed for that purpose by the commanding officer, and found suitably qualified to discharge the duties of master workman. The master JOURNAL. 117 workmen shall hold their places three years, unless removed by the commanding officer for good cause, to be reported to the Bureau of Yards and Docks, and shall be subject to roll-call in the same manner as other workmen. Each master workman shall select the workmen under him, subject to the approval of the commanding officer. The number of master workmen and of employes under them shall be fixed by the naval constructor and constructing engineer, each for his department, and shall be increased or diminished upon their written requisitions, approved by the commanding officer. SECTION 2. And be it further enacted, That no master workman or employe in the yard shall be appointed who is recommended by any member of Congress or officer of the government, whose duty is not within the yard; and employes shall be discharged only for misconduct, inefficiency, or want of work. SECTION 3. And be it further enacted, That materials for the navy, except as is provided by law, shall not be purchased by open purchase, unless the article needed is not embraced in an existing contract, and time will not permit of delay; and in such case it shall be purchased upon the requisition of the naval constructor or constructing engineer, approved by the commanding officer, and a master workman detailed for each purchase by the commanding officer, and in accordance with the regulations of the department. SEC. 4. And be it further enacted, That a naval storekeeper shall be appointed for each yard, in the same manner, and for the same time, as the navy agent, at a salary of $1,700 a year, who shall give bond, and perform such duties as may be prescribed by the Navy Department. He shall, in connexion with an officer or inspector detailed for this duty by the commanding officer, inspect all articles purchased for the government, both as to quality and price. He shall make to the proper bureau a monthly statement of all articles purchased on open purchase, with the price paid and the fair market price. SEC. 5. And be it further enacted, That no officer or employe in the yard shall, during his term of office, be engaged in any other employment than his duty in the yard. SEC. 6. And be it further enacted, That the commanding officer shall, at the end of each fiscal year, cause a detailed inventory to be taken of all materials and stores on hand, and of the amount received and expended during the year, and report the same to the proper bureau. SEC. 7. And be it further enacted, That the Secretary of the Navy is authorized and required to prepare and enforce a code of regulations for the government of the navy yards, consistent with existing laws. SEC. 8. And be it further enacted, That all coal for the use of the navy shall hereafter be furnished by contract, by the lowest bidder; the contract to be made in the mode prescribed by law for the supply of other materials for the navy. The Secretary of the Navy shall annually appoint a person skilled as a coal dealer an inspector of coal, who shall reside in Philadelphia, and, during his term of office, shall not purchase coal on his own account, or for others, and shall receive a compensation not exceeding $2,000 per annum. He shall cause to 118 JOURNAL. be weighed and measured, at the expense of the contractor, all coal for the government, and shall carefully inspect and reject all that is not of the quality prescribed by the contract. He shall, under the direction of the Secretary of the Navy, contract for the transportation of coal to the ports in places where needed for the public service, and shall make monthly reports of his proceedings to the Bureau of Construction, Equipment, and Repairs. SECTION 9. And be itfurther enacted, That if any member of Congress shall directly or indirectly procure, or aid in procuring for any person or persons, or company, any contract with, or work for the United States, made, or to be made with any person authorized to make contracts on the part of the United States, and shall receive or contract to receive, directly or indirectly, any money or property for any interest or share in said contracts, or the proceeds or profits thereof, every member so offending shall, upon conviction thereof, be adjudged guilty of a high misdemeanor, and shall be fined, and be imprisoned not to exceed, or both, at the discretion of the court. Without expressing an opinion upon the merits of the bill, the committee authorized the Chairman to report it to the House, without asking that body to take any action upon it. On motion, it was Ordered, That the House be asked to print 5,000 additional copies of the report and testimony in this case. It was also Ordered, That a report be made to the House this morning of the testimony, &c., in this investigation. Adjourned sine die. JOHN SHERMAN, Chairma~n. CIRRESPONDENCE OF THE NAVY DEPARTMENT WITH THE COMMITTEE. NAVY DEPARTMENT, Jactcuary 27, 1859. SIR: Your letter of the 25th instant has been received. Referring to my letter to you of the 24th instant, I now have the honor to transmit herewith the remainder of the information called for in the first five clauses of the resolution of the committee. The contracts for the machinery for the 13-feet draught sloop building at Norfolk and the 10-feet draught sloop building at Philadelphia have not yet been signed. The forms in which the contracts have been sent to the parties for signature are herewith transmitted. I also enclose the information called for in the 7th and 9th clauses of the resolution. The answers to the other clauses will be furnished as soon as possible. I am, very respectfully, your obedient servant, ISAAC TOUCEY. HoIn. JOHN SHERMAN, Cqha'irmtan;Special (Coin.ittee, (.tc., d(c., I-oai.se of Re.prsesentatives. NAvY DEPARTMENT, January 28, 1859. SIR: Will you be kind enough to inform me from what date the committee desires the information called for in the following clause of its order upon this department, viz: The cost for each year of the government expenditures in the navy yards, and the increase and repairs of vessels, and the employes connected therewith, arranged in tabular form, and showing, as far as practicable, each class of said expenditures in separate columns?" If this inquiry should extend back many years, it would be impossible to comply with the request of the committee before the adjournrment of Congress. I have the honor to be, very respectfully, your obedient servant, ISAAC TOUCEY. Hen.. JOHN SHBRMAN, Cqaitrman Special CoImmittee, &., Hcuse of Repre.enfatc~e&. 120 CORRESPONDENCE, NAVY DEPARTMENT, February 1, 1859. SIR: I have the honor to transmit herewith copy of a contract between the department and Messrs. Dickerson & Sickles, whiclh should have accompanied the papers sent to you a few days since. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, CiafirDaw Special Committee, Houise of Representattives. NAVY DEPARTMENT, February 2, 1859. SIR: I have the honor to enclose herewith copy of a report of the 1st instant, from the chief of the Bureau of Yards and Docks, in answer to the 8th clause of the order of the special committee, dated the 21st ultimo. The causes of the "increase and diminution" in the number of men employed in the Brooklyn yard, as stated in the letter from the chief of the Bureau of Yards and Docks of the 27th ultimo, to which he refers in the accompanying report, were presumed to have been from the "necessities of the service in the preparation and despatch of the Paraguay expedition, the hastening the completion of the new sloops, and equipping the Niagara, St. Louis, San Jacinto, and storeships." I am, very respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman Special Committee, &cd., House of Represezntatives. NAVY DEPARTMENT, February 1, 1859. SIR: I have the honor to transmit herewith a report from the chief of the Bureau of Yards and Docks, in answer to the 10th, 11th, and 12th clauses of the order of the committee of 21st January on this department. It is stated in the report, as you will perceive, that no correspondence has taken place between the bureau and members of Congress since 4th March, 1857, in relation to the change or appointment of master workmen. Such as may be on file in this office on that subject will be furnished as soon as copies can be made, in compliance with the request of the committee. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman Special Committee, House of Representatives. CORRESPONDENCE 121 NAVY DEPARTMENT, February 4, 1859. SIR: In reply to the second interrogatory of the second series propounded by the investigating committee of which you are the chairman, I have the honor to transmit herewith a copy of a communication from the chief of the Bureau of Yards and Docks, in whose views I concur. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman of the Special Committee, cec., House of Rep' s. NAVY DEPARTMENT, Jtanuary 24, 1859. SIR: I have the honor to acknowledge the receipt of your letter of the 21st instant, transmitting a copy of the resolution under which the special committee of which you are the chairman is acting, and a series of resolutions adopted by the committee, calling for information from this department. In compliance with your request, I will furnish each branch of the information as soon as practicable, without waiting for the completion of the whole, and especially that embraced in the first five clauses of the resolution of the committee. I have now the honor to transmit herewith the information therein called for in relation to the first of the series of contracts made under the acts of March 3, 1857, and June 12, 1858, for the construction of the steam sloop-of-war Brooklyn, and to state that the whole available force of the office has been called into requisition since the receipt of your letter at noon of Saturday, but it has not been able to make copies of all the papers relating to the other bids, contracts, &c., under the above named acts. The committee may rely upon the ready co-operation of the department in the accomplishment of its business, and the information it desires will be afforded as promptly as practicable. I am, very respectfully, &c., ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman of the Special Committee, cc., c:c., H. B. H. Rep. Con. 184~9 122 CORRESPONDENCE. NAVY DEPARTMENT, February 12, 1859. SIR: I have the honor to transmit herewith, in compliance with the eleventh clause of the order of the special committee, of the 21st ultimo, a part of the correspondence (copies) on file in the department'' with members of Congress since March 4, 1857, relating to the change or to the appointment of master workmen." The residue will be transmitted as soon as it can be copied. I am, very respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERiMAN, Chairman Special Committee, &c., House of Representatives. NAVY DEPARTMENT, February 9, 1859. SIR: In compliance with your letter of the 26th ultimo, I have the honor to transmit herewith copies of letters from the Bureau of Yards and Docks to the commandant of the Brooklyn navy yard, during the year 1858, marked A; copies of letters to the Bureau of Yards and Docks from Commander Rootes and Civil Engineer Graham, during the year 1858, marked B; and copies of the correspondence between Commander Rootes and Civil Engineer Graham, obtained from the files of the Brooklyn navy yard, for the year 1858, marked C; also a copy of an explanatory letter from the chief of the Bureau of Yards and Docks to this department, dated the 8th instant. I am, sir, very respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman Special Committee, &c., &ic., House of Rep's. NAVY DEPARTMENT, February 16, 1859. SIR: I have the honor to transmit herewith a report from the chief of the Bureau of Yards and Docks, and accompanying papers, in answer to the sixth clause of the order of the special committee, &c., dated the 21st ultimo, upon this department. I am, very respectfully, your obedient servant, ISAAC TOUCEY. Hon. JOHN SHERMAN, Chairman Special Committee c&c., House of Rep's. INDEX. Page. Report of the Majority -. ------ --— _ — -- 1 Ieport of the Minority... —----—. —---- ---—. — --—. —-.-. —-—.-. —---- 55 Communication from the Secretary of the Navy to the Committee -------- 90 Journal of the Committee ------------- -—. —.- 97 Correspondence with the Navy Department ---- -- --------- -------------—, 119 PART I. TESTIMONY IN RELATION TO THE APPOINTMENT OF A COAL AGENT, AND THE PURCHASE OF COAL FOR THIE NAVAL SERVICE OF THE UNITED STATES. lA COAL AGENCY. No. 14.-TESTIMONY OF JOHN LENTHALL, NAVY DEPARTMENT. JANUARY 29, 1859. JOHN LENTHALL called and examined. By the Chairman: Question. What is your official position? Answer. I am chief of the Bureau of Construction, Equipment, and Repairs, in the Navy Department. Question. What is your department of business? Of what have you charge? Answer. The building and construction of vessels. Question. What is included in the word "equipment?" Answer. "Equipment" technically includes the rigging and fitting of a ship, sails, cables, anchors, water-tanks, &c. Question. Does it include the coal? Answer. That is apart of the stores of a vessel. Question. What is the total amount estimated for your department for the fiscal year ending June 30, 1860, according to the printed estimates? Answer. Under the head of general appropriation there is $3,100,000; and then there is a sum of $674,000, to finish the seven sloops-of-war and the one side-wheel steamer now in process of construction, and ordered by Congress at its last session; making in all $3,764,000. Question. Is there any public document showing the detail of the estimates for construction and repairs? Answer. No, sir: with that estimate there is a report made to the Secretary, but that does not show all the details. Question. How do you get at the estimates in your bureau? Answer. We base them upon the actual amount expended from year to year in aigreat measure. They are of such a nature that you cannot define all the points. 4 COAL AGENCY. Question. What portion of this sum is for coal? Answer. I cannot remember that; I think we estimated for 56,000 tons, and I think that we estimated that the average cost all around, including foreign and domestic freight and everything, would be fifteen dollars a ton. Question. Where is your coal purchased? Answer. From coal agents specially appointed by the department. Question. Where are these coal agents stationed? Answer. One of them, I think, is in Reading, Pennsylvania; the other one, I think, is in Baltimore. One is for the purchase of anthracite coal, and the other for the purchase of bituminous coal. Question. Are there any other agents but these two? Answer. No, sir. Question. How do these agents purchase the coal? Answer. On open purchase; I merely give orders to have so much coal purchased and delivered at a certain point-Philadelphia, for instance-for shipping. Question. Who is the agent at Reading? Answer. Mr. Hunter. Question. Who was the previous agent? Answer. A gentleman who lived there-a Mr. Tyson. Question. What connexion has Mr. Beach with furnishing this coal? Answer. I do not know that he has any connexion with it, more than the coal agent appears to purchase of him as other coal agents purchase of dealers. Questioni. Does he not sell to this coal agent all the coal that he purchases? Answer. I think that many of the bills are in his name. Question. Are not all? Answer. I do not know that. I think that other parties sell to him. Question. Have you not had formal complaints made to you by coal agents in Philadelphia that all the coal is supplied by Mr. Beach? Answer. No, sir; not that I know of. No such complaints have been made to the bureau. Question. Do you know any of the firms whose names are attached to this paper? PHILADELPHIA, January 21, 1859. SIR: The undersigned, regularly engaged in the mining and selling coal, beg leave to represent to your committee that immediately after the accession of Mr. Toucey to the Navy Department he directed that all the anthracite coal for the navy should be procured in this city, and that, although the regulation has been carried out, yet it has all been purchased from one firm. That, by so doing, all competition in supplies of coal has been cut off, to the injury of the department, who have now no means of knowing the market value. We invite inquiry into this matter, and beg that your committee will COAL AGENCY. 5 recommend to Congress that they enact a law that coal, like other supplies, shall be advertised for in due form. Very respectfully, your obedient servants, ROMMELL, POTTS & CO. DAVIS, PE RSON & CO. NOBLE, HAMMACK & CALDWELL. NEVIN, SAWYER & CO. C. A. PACKER & CO. LEWIS RUTRAMEL. VAN DUSEN, NORTON & CO. CAIN, HACKER & COOK. HARRY CONRAD, President of Buck Mountain Coal Co. BLAKISTON & COX. ANDENNIA & CO. CHARLES MILLER & CO. HAYES & GODSHALL. BAUM, OGLE & CO. REPPLIER & BRO. W. STURTEVANT & CO. JAMES COX, President of Lehigh Coal and Navigation Co. JONES & COLE. Hon. JOHN SHERMAN, Chairman of Committee of Congress for Investigating Naval Contracts, &dc. Answer. No, sir; I do not know any of them. Question. Then none of these gentlemen, so far as you know, have furnished coal to the department? Answer. No, sir; I do not recognize their names? Question. What is the name of Mr. Beach? Answer. It is not Mr. Beach; the company is Tyler, Stone & Co. I think Mr. Beach is one of the firm. Question. Are you sure that he is one of the firm? Answer. No, sir; except that I have seen his name on letters. Question. What is the amount of coal furnished by him at Philadelphia? Answer. Nearly all that is used by the bureau in which I am; which is nearly all anthracite. Question. Do you not also use bituminous coal? Answer. We use a small quantity of bituminous coal. Question. What relation does Mr. Beach bear to the Secretary of the Navy? Answer. I do not know. Question. Have you seen Mr. Beach? Answer. Yes, sir; off and on. Question. Is he not said to be a relation of the Secretary of the Navy? Answer. He is said to be? 6 COAL AGENCY. Question. Is he recognized by the Secretary as a nephew? Answer. I have understood that he is a relation, but I do not know that he is. Question. Do you know what he gets for purchasing this coal? Answer. He gets five per cent. Question. Who gets it? Answer. The coal agent. Question. Do you know anything about the arrangements between the coal agent and Mr. Beach? Answer., I do not. Question. Do you know any reason why Mr. Beach was not appointed coal agent directly. Answer. No, sir. Question. How old a man is this Mr. Beach? Answer. I should think he was about 30; quite a young man. Question. Is he a married man? Answer. I think he is. Question. How long has he resided in Philadelphia? Answer. I do not know. Question. Did you know him before March, 1857? Answer. No, sir; I never saw him until his connexion with this coal business. Question. How long previous to March, 1857, have you been in your bureau? Answer. I have been there since 1854. Question. Who furnished coal before that time? Answer. Various parties, coal dealers in Philadelphia. Question. Name some of them? Answer. Repplier furnished some, I think; I have seen bills in his name. Question. Up to March, 1857, was not the coal purchased by contract from different parties? Answer. No, sir, I think not. I have never known any other way, except by orders from the coal agent. Question. Do you know whether he advertised for bids prior to the last year or two? Answer. I do not know. Question. What restraint is there upon the coal agent as to price? Answer. None, but that one of the bureau shall be satisfied that it is a fair market price? Question. Are they instructed by the bureau to furnish the best quality for a fair market price? Answer. Yes, sir. Question. Were there any other instructions to tie agent but those you have named? Answer. I do not know. Question. Has he any bond to the bureau? Answer. I think he has with the Navy Department. I do not know. COAL AGENCY. 7 Question. What is his compensation? Answer. A commission of five per cent. upon the cost of the coal, and five per cent. upon the freight to Pensacola, Boston, or any where within the United States. Question. Has any complaint been made to you that this per centage is divided, or arranged or compounded, directly or indirectly, between the agent and the contractor? Answer. No, sir. Question. Have no such complaints been made? Answer. No, sir. Question. What is the aggregate amount of coal purchased by this agent in Reading. Answer. I cannot tell. Question. As near as you can get to it? Answer. I do not think I could say from recollection. It would be very easy for me to ascertain the amount and to furnish it. Question. You will please furnish this committee with the precise amount of coal purchased by the agent in Reading? Answer. [See Appendix "A" to this deposition.] Question. What is the amount of per centage to this agent? What does he get in the course of a year? Answer. I think that last year it was as much as $7,000 or $8,000. Question. Not more than that? Answer. I think not; that is the amount of the bills I have approved. Question. How can it be that his compensation does not exceed $7,000 or $8,000, when he gets five per cent. upon the cost of the coal, and your bureau have estimated that your bureau will need $800,000 and over for coal during the next fiscal year? Answer. The greater amount of this estimate is for freight on this coal. For example, in sending coal to China we pay $10, $11, and $12 per ton freight. Upon that the coal agent gets no commission. Question. Then in this cost of $15 a ton which you stated you estimated for the coal you estimate all the freight? Answer. Yes, sir. Question. Who fixes the rate of compensation of this coal agent? Answer. The department. Question. Is there any law authorizing the Secretary of the Navy to appoint these coal agents? Answer. I think there is a law authorizing him to purchase coal in open market, and I suppose that would carry with it the means of executing that law. I am pretty sure there is a law authorizing the purchase of coal by the Secretary of the Navy, the mode and manner of which is left to him. Question. Do you know any law or provision of law specially authorizing the appointment of coal agents? Answer. I do not. Question. Is there any mode pointed out by law by which the coal shall be purchased? Does the law limit it to open purchase? Answer. I do not know that it is. 8 COAL AGENCY, Question. How long has this mode been continued? Answer. It was practiced in the department before I went there. Question. Who fixes this rate of compensation? Answer. It has been so since I have been there. Question. Does the amount of coal used under the Navy Department increase continually? Answer. Yes, sir; every year as the steam navy increases, the amount of coal required also increases. Question. Do you know what this coal costs the government at the coal yard in Philadelphia? Answer. I think the coal is charged to us at $3 85 per ton. Question. Is this coal delivered by Mr. Beach directly to the government? Answer. It is delivered, in the name of the coal agent, to the government, and the coal agent forwards to us the bill. Question. Does the coal agent live in Philadelphia? Answer. I presume he lives in Reading. Question. How is this coal inspected? Answer. By the coal agent. Question. Is there any inspection except by the coal agent? Answer. No, sir. Question. Has he an office in Philadelphia? Answer. I do not know; we address him at Reading. Question. How far is Reading from Philadelphia? Answer. I do not know; it may be 100 miles; it is a day's journey. Question. Does Mr. Beach quarry this coal himself, or does he buy it? Answer. I do not know. Question. Do you know where he gets it? Answer. I do not know, except that he is a coal dealer. Question. Do you know any of this firm, Tyler, Stone & Co., of which Mr. Beach is a member? Answer. No, sir. Upon one occasion, while passing through Philadelphia, I stopped at Mr. Tyler's office to see Mr. Tyler. We were shipping some coal from Baltimore for the Paraguay expedition, and I stopped there to see if it had gone on. Question. Were your business transactions all with Mr. Beach? Answer. No, sir; with the coal agent. Question. Was not Mr. Beach at the department frequently? Answer. Yes, sir; he came in there, but I had no official communication with him. Question. When was this coal agent appointed? Answer. I do not know; nine months ago, probably. Question. Upon whose recommendation? Answer. I do not know. Question. When was Mr. Beach employed by the coal agent? Answer. I do not know. Question. Do you know what contract there is between Mr. Beach and the coal agent? COAL AGENCY. 9 Answer. I do not. By Mr. Bocock: Question. How does the price of coal under Mr. Toucey's administration compare with the price of it under the former administration? Answer. I do not remember what our previous bills were, but I can easily ascertain it. Our present bills are $3 85 the long ton. Question. Then you do not remember what it was previously? Answer. No, sir; so many bills pass through my bureau that I cannot keep them all in my mind. Question. Whenever the law authorizes articles to be purchased in open market, what is the plan of the department? I mean, what is the instrumentality they use for the purchase of articles that are purchased in open market? Answer. The commandant of the yard makes a requisition upon the navy agent. Question. That is in regard to articles needed in the navy yard. Is an agent necessary whenever an article is to be purchased in open market? You speak of a law authorizing the Secretary of the Navy to purchase coal in open market. Is it necessary to have an agent to do that? Answer. I should think an agent could do it better than it could be done without one. Question. Do you purchase American water-rotted hemp in open market? Answer. Yes, sir. Question. Have you a hemp agent? Answer. Yes, sir. Question. For what other articles do you have agents? Answer. There is nothing in my bureau that I have to purchase but hemp and coal for which there is an agent. By Mr. Groesbeck: Question. When you have to lay in a large amount of articles, such as coal and hemp, is it usual to have an agent appointed? Answer. Yes, sir, for hemp and coal it is. Question. How long has this been the practice in the department? Answer. It was so in 1854, when I went there. By Mr. Bocock: Question. How many coal agents are there? Answer. There are two of them. Question. You have mentioned Mr. Hunter, of Reading; where is the other one? Answer. In Baltimore. Question. What is his name? Answer. Mr. Polk. Question. Does not a compensation of five per cent. on the price of the coal make it to the interest of the coal agent to put the price as high as he can? Answer. Not if he is an honest and upright man. 10 COAL AGENCY. Question. What check is there upon it? Answer. Nothing, except that we can ascertain what the market price is? Question. Do you inspect the bills when they come? Answer. They all come to me. Question. Suppose that you find a bill that you consider too high? Answer. I would stop it, and refer it to the Secretary of the Navy. By the Chairman: Question. Did you ever stop any bills of this kind? Answer. No, sir; I never stopped any coal bills. So far as I could judge, $3 85 a ton seemed to me to be a pretty fair price. Question. You will please furnish a statement of the amount of coal purchased by your bureau since the 4th of March, 1857; the name of the agent purchasing it; when, where, and from whom purchased by the agent; the per centage and compensation allowed the agent; the cost of the coal at the place where delivered to the government, and the aggregate cost for each year when consumed by the government. Answer. [See Appendix "A" to this deposition.] Question. How is this coal transported to the place of consumption? Answer. For the domestic ports the coal agent charters vessels to take it. Question. You mean by that the coal used within our own limits? Answer. Yes, sir; it is housed in the navy yard ready to be used on board ships. We generally have a thousand tons at each yard when it would be likely to be called for. Question. Then for the purpose of carrying this coal to these yards the coal agent charters the vessel? Answer. Yes, sir. Question. Have you any restraints upon his charter contracts for carrying this coal? Answer. No, sir; we have to take his certificate. Question. What is the proportion of coal used within the jurisdiction of the United States and that used beyond it? Answer. The table will show. Question. Who charters the vessel when the coal is to be carried abroad to be consumed? Answer. I do that. Question. How? Answer. I ascertain from merchants the rates of freight. I write on to Philadelphia, Baltimore, New York, or wherever we can get the vessels, and get the best terms we can get them upon. Upon those charters the coal agent has no commission. By Mr. Groesbeck: Question. I would ask whether, in the purchase of coal, in any case, more than the market price has been paid? Answer. I think all the coal has been at $3 85 per ton that I have seen bills for, and that did not strike me as being over the market price. Question. You consider the price reasonable? COAL AGENCY. 1 Answer. I thought so; it seemed to be so to the best of my judg ment. By Mr. Bocock: Question. Did you take any steps to ascertain the market price of coal? Answer. Only from noticing it in the newspapers. I know, for example, what coal costs here which I get for my own use. By Mr. Groesbeck: Question. Do you consider it necessary to have any further check in the purchase of coal than you have already in your department? Do you think there are enough checks upon abuses? Answer. I think there are enough at present. Question. Would you correct the arrangement in any way by which you would procure coal? I ask you as an expert in the matter. Answer. I think, as to the price, we have the power to correct it now. Question. Then you would'make no alterations? Answer. No, sir; not in that. By Mr. Bocock: Question. What power have you over abuses that might be committed by this coal agent as regarding these charter matters? Answer. If it was something that was prominent and striking, I would stop his bill immediately; it would not be paid, like any other bill that would come to us. By the Chairman: Question. I would call your attention to the following provision of the act of Congress of March 3, 1843: "'All provisions and clothing, hemp, and other materials, of every name and nature, for the use of the navy, and the transportation thereof, when time will permit, shall hereafter be furnished by contract by the lowest bidder, as follows," &c. Why is not that provision observed in regard to coal? Answer. I think there is a special law in relation to that, as well as to hemp. Question. Under date of September 28, 1850, there is a provision of law, as follows: "The Secretary of the Navy is hereby directed, in making contracts and purchases of articles for naval purposes, to give the preference, all other things (including price and quality) being equal, to those articles of the growth, production, and manufacture of the United States; and in the article of fuel for the navy, or naval stations and yards, the Secretary of the Navy shall have power to discriminate and purchase, in such manner as he may deem proper, that kind of fuel which is best adapted to the purpose for which it is to be used." Is that the law to which you refer? Answer. Yes, sir, I think it is. Question. Where do you get your live-oak? Answer. That is obtained on contract. 12 COAL AGENCY. Question. Who is the contractor for the delivery of live-oak? Answer. The present contractor is Mr. Swift. Question. Of what place? Answer. I think of New Bedford; we address him there. Question. Was that arrangement made with him by open contract or by public advertisement? Answer. By public advertisement. Question. You are sure of that? Answer. Yes, sir. Question. When was it that the contract was given to Mr. Swift? Answer. There was one contract under the advertisement in 1857 and another under the advertisement of 1858. I do not remember the exact dates. The contractor who made the lowest bid failed to comply with his bid, and then the live-oak was contracted to Mr. Swift. Question. Was there a new advertisement then? Answer. No, sir. Question. How was it let to Mr. Swift? Answer. At the rate proposed by the lowest bidder, who failed to comply with the contract. Question. Are the papers in relation to the live-oak contracts published in any document? Answer. They are reported in the report from the Navy Department up to June, 1858. Question. What has been the amount of the disbursements during the last fiscal year for live-oak? Answer. I cannot give you the amount, for the contract is not yet completed. Question. Please prepare a statement of the amount of live-oak furnished since the 4th of March, 1857. Answer. [See Appendix "B" to this deposition.] Question. Under what head of appropriations is live-oak included? Answer. Increase and repairs. Question. What was the amount of the appropriation of last year in one item for increase and repairs? Answer. I cannot remember; I suppose it may be found in the printed papers. By Mr. Groesbeck: Question. What do you mean by "increase" in that connexion? Answer. It is a term that Congress has adopted and directed to be used. Question. It does not authorize you to increase the number of vessels? Answer. No, sir; it is merely a term used. It includes armaments also, with which I have nothing to do. Question. Is there any document in your bureau showing the details of these expenditures? Answer. No, sir; but this committee have called for a list of the ships repaired and the amount of work done, and we are preparing that now. COAL AGENCY. 13 Question. Is there any document showing the details of the expenditures? Answer. No, sir. By the Chairman: Question. What other heads of expenditure are contained under this item of increase and repairs? Answer. None; this appropriation is for maintaining and keeping up the vessels afloat. Question. Are you an officer of the navy? Answer. No, sir; I am a ship builder by profession, and employed as such. Question. Can you tell whether the vessels of the United States built ten years ago are suitable for modern service of the navy? Answer. Yes, sir; we have many vessels built ten years ago that are now in service. Question. How many of them? Answer. Nearly all our sailing frigates and a number of our sailing sloops-of-war. Some of our ships are much older than that. Question. Does any document show when each vessel was built? Answer. The Navy Register gives the date of the construction of the vessels. Question. How many master workmen are there in the Brooklyn navy yard under the charge of the Bureau of Repairs, Increase, &c.? Answer. I have nothing to do with that. Question. In the repair of the vessels there do you not have the control of the workmen engaged upon them? Answer. No, sir. Question. Where are the vessels of the government repaired? Answer. In the navy yards. Question. Have you any supervision over the men engaged there? Answer. No, sir; my directions go to the commodore, who commands them, and the naval constructor, who carries them out. My instructions are all technical and mechanical. Question. Does the naval constructor expend the money for that purpose? Answer. It is expended under the orders of the commodore. We estimate for the money in our appropriation with which to pay it. Question. Who disburses this money? Answer. The purser, on the regular pay-roll. Question. Has the navy agent anything to do with it? Answer. Nothing. Question. Who disburses the money for the coal and the live-oak? Answer. All those bills are paid by the navy agent. Question. Can you state the aggregate of the money paid by the navy agents in the United States? Answer. Yes, sir, so far as they have drawn upon this bureau. Question. Does the navy agent disburse for different bureaus? Answer. Yes, sir. Question. Does not the whole of these two heads of appropriation 14 COAL AGENCY. for the navy yard, for construction and for repairs, pass through the hands of the navy agent? Answer. All bills are paid by him, except bills for labor. Question. Who pays the bills for labor? Answer. The purser, who draws the money from the department. Question. Does the purser in each yard pay the men at work in the yard? Answer. Yes, sir; at least it was so when I was in a navy yard, and I was there for many years. Question. The navy agents, then, pay for everything, except for daily labor? Answer. Yes, sir; the pay-rolls for labor are filed in the Treasury Department, and they constitute the vouchers for the purser. Question. Why cannot the navy agent purchase coal as well as other materials? Answer. I suppose he could. Question. Is there anything, except the direction of the Secretary of the Navy, to prevent him from doing it? Answer. There was one period when the navy agent did purchase the coal, but that practice was abandoned. I do not know why. Question. Do you know any law changing the mode of purchasing, or requiring the special agent to pay for coal, or hemp, except the construction you place upon that law of 1850? Answer. No, sir; that is all. Question. What is the amount of hemp supplied for the navy of the United States? Answer. I think we use about 800 tons. Question. What is the cost of hemp? Answer. American hemp costs us $280, $290, and $300 a ton. Question. Who purchases the hemp? Answer. It is purchased in open market in Boston, except the American hemp, which is purchased by a special agent. Question. Who is this special agent? Answer. Mr. Sanders. Question. Where does he reside? Answer. In Lexington, Kentucky. Question. By whom is he appointed? Answer. By the Secretary of the Navy. Question. What is his compensation? Answer. A thousand dollars a year. Question. Do you know the reason why a different mode of compensation was adopted for the coal agent? Answer. I do not. Question. Who is the agent at Boston who purchases the foreign hemp? Answer. It is purchased there by the commandant of the yard, under the direction of the bureau. Question. Who pays the bills? Answer. The navy agent. COAL AGENCY. 15 Question. Is it purchased in the same manner as other materials for the navy yard are purchased? Answer. Yes, sir, by open purchase. Question. Do you make any discrimination in favor of domestic hemp? Answer. We are paying a higher price, although by law, I think, it is required to be the same. However, it really costs us more. Question. Who fixes the price? Answer. It is graduated by the price for Russian hemp, and that varies. Question. Is there any limitation upon the price to be paid by the agent at Lexington? Answer. Yes, sir; he is limited in the price he is to pay for the hemp he purchases. Question. What proportion of this appropriation under this head is paid out for labor, and what proportion for repairs, &c.? Answer. I cannot say; about one-half of it, I should think. Generally, in the repairs of ships, the labor approximates the cost of the materials. Question. Is there any other article than live-oak purchased under your bureau by contract? Answer. All articles that we can enumerate we purchase by contract. Question. What proportion is that? Answer. I cannot say. We try to contract for all we can. There are some things that we cannot embody in a schedule. Question. How are they purchased? Answer. In open market. Question. By whom? Answer. The navy agent. Question. Have any complaints been filed in your department against the navy agents for giving too high prices, or for not allowing a fair competition? Answer. I do not think I have any such complaints on our records. Question. Have any complaints been made against the navy agent of New York? Answer. No, sir, not by individuals. Question. By anybody? Answer. I think not. I do not recollect of any such complaints. I sometimes stop bills myself for examination. Question. What is usually done in such cases? Answer. If they are rated too high we make them alter the bills. Question. Have they ever altered a bill? Answer. I think they have. Question. What ones? Answer. I cannot call to mind any particular ones; but I have that impression. Question. Did you send these bills back to the navy agent? Answer. I sent them back to the navy agent, or to the commandant of the yard, to know why such a price was paid. Sometimes they can give a fair explanation of it. 16 COAL AGENCY. Question. Were there cases where the market price was lower than that paid? Answer. I think so..Question. And where the bill was altered to that lower price? Answer. Yes, sir. Question. Who made the negotiation upon the part of the government to get the price lowered? Answer. I suppose that transaction would be between the navy agent and the party from whom he purchased the articles. Question. How frequently would such cases occur? Answer. I think they were not of frequent occurrence. Question. In what navy yards have these cases occurred? Answer. In New York and, I think, in Philadelphia. FEBRUARY 5, 1859. JOHN LENTHALL recalled. By the Chairman: Question. I wish to have you furnish information in response to the following interrogatories: Who was the first agent appointed by the Navy Department for the purchase of coal; when and by whom was he appointed; and what was the rate and amount of his compensation? [See Appendix to this deposition.] What is the name or what are the names of agents since that time, and their yearly compensation for each fiscal year? [See Appendix to this deposition.] When was the rate and mode of compensation fixed, and what regulations prescribe the duties of the agent? [See the Appendix to this deposition.] By Mr. Groesbeck: Question. You will also please state whether there has been any change since the system of coal agents was established under the law of 1850. [See Appendix to this deposition.] By Mr. Bocock: Question. You will also furnish information as to whether there have been any changes made in the manner of supplying coal to vessels upon foreign stations; the character of the coal required there, and all other information that relates to that subject. [See Appendix to this deposition.] The witness subsequently presented the following questions and answers, embraced in the interrogatories of to-day, (February 5:) Question. Who was the first coal agent? Answer. The records of the Bureau of Construction show that Mr. Springer and Mr. Jameson were the first coal agents. Question. When and by whom appointed? Answer. Mr. Graham, the Secretary of the Navy, appointed Mr. Springer, January 15, 1851, and Mr. Jameson was appointed January 30, 1851. On the 3d of April, 1852, Mr. Graham, the Secretary of COAL AGENCY 17 the Navy, appointed Messrs. Howland & Aspinwall agents for the furnishing of coal for the use of the United States squadron in the East India and China seas and Pacific ocean. Question. What kind of compensation? Answer. Mr. Springer and Mr, Jameson were to receive a commission of five per centum on the amount of all purchases made by them, to cover all expenses of selecting, purchasing, and shipping the coal. Messrs. Howland & Aspinwall were to receive a commission of ten per centum upon the given amount of the purchase money, cost of transportation incurred, and unavoidable expenses, deducting therefrom the commission allowed the agents of the department for supplying coal within the United States. On the 11th August, 1853, the Navy Department entered into a new agreement with Messrs. Howland & Aspinwall, by which they were to receive a commission of six per centum on the cost of the coal and the freight; by this agreement they were to give a bond to the amount of one hundred thousand dollars. Question. Name or names of agents since? Answer. By a letter from the department of July 29, 1853, and of October 3, 1853, the services of Mr. Springer and Mr. Jameson were dispensed with, and the navy agents at Philadelphia, Baltimore, and Washington, were directed to purchase the coal. By letters of May 22 and July 3, 1854, Mr. Tyson and Mr. Polk were appointed coal agents; and by a letter of May 22, 1858, Mr. Hunter, the present agent for the purchase of anthracite coal, was appointed to succeed Mr. Tyson. Question. The yearly compensation for each fiscal year? Answer. The statement herewith handed in shows the amount of commissions to coal agent for each fiscal year. Question. When was the ratio of compensation fixed? Answer. It was fixed in the letters of appointmentherewith handed in. Question. Has it been altered, and what regulation of the Navy Department, if any, prescribes his duty? Answer. Except with regard to the agreement with Messrs. Howland & Aspinwall, the rates have not been altered. Their duties are prescribed in the letters of appointment. Question. Has any change been made since the system of coal agents was established in 1850? Answer. The agents for the shipment of coal to foreign ports have been discontinued, also the purchase of coal by the navy agents, and the first system of agents has been returned to. Question. Has any change been made in the manner of shipping coal to foreign stations and the character of the coal required there? Answer. The coal to foreign stations was shipped by Howland & Aspinwall, who received a commission on the freight, by the vessels for the transportion of coal to foreign stations, are now taken by the department, and no commission is paid on the freight, but only on the hundred weight of coal purchased by the coal agents. The coal agent for the purchase of anthracite coal has claimed commission on these 2A 18 COAL AGENCY. foreign freights, but it was not allowed by the department. The coal for steamers' use, both at home and abroad, should be of the very best quality, and free from dirt and impurities-the storage in the steamer being a matter of great importance, besides the better results obtained. The freight coal is generally of an inferior quality. FEBRUARY 14, 1859. JOHN LENTHALL recalled. By Mr. Bocock: Question. How far does your position as chief of the Bureau of Construction connect you with the purchase of coal? Answer. I give orders for its purchase and provide for the payment of the bills when rendered by the coal agent. Question. For what particular department of the navy do you superintend the purchases? Answer. For the ships afloat only. Question. State the price of coal during the time you have been connected with the department? Answer. [See table in the Appendix to this deposition.] Question. What is the cause of the great fluctuation in the price? Answer. In some years we made our purchases in New York, where the rates were higher than at Philadelphia, and sometimes abroad. There has also been a variation in the market price. Question. Can you state how the coal turned out with regard to price and quality while the coal agency was suspended, and the purchases were made by the navy agents. Answer. My best recollection is that complaints were made of it. Some was delivered at the Philadelphia yard which was much complained of. Question. Has any change been made in your system of supplying coal upon foreign stations within the last two or three years? Answer. None, excepting that the supplies are obtained by the department, and that no commission is paid. Question. How long did Howland & Aspinwall send out coal? Answer. About three years. Question. Do you not send out more coal than you formerly did? Do you not more frequently buy your coal at the foreign stations? Answer. We do, sir. Question. What has been the result of this change in the plan of purchase of the coal at foreign stations? Answer. The government saves all the expense of commissions. Question. State the price of coal at foreign stations under the forner system and under the present system? Answer. [See tabular statement in the Appendix to this deposition.] By Mr. Groesbeck: Question. What is the propriety of procuring the coal here for foreign stations; can it be done as economically, or can we get a better material than we could obtain at foreign points? Answer. At foreign stations we have to buy coal from merchants COAL AGENCY. 19 and other persons who have shipped it there for sale, and we must buy such as the market affords. We can have no assurance that we can obtain the best coal. Our anthracite is a better article than we can buy elsewhere; and if we can continue to obtain that in good quality, I think it will be best to send it to our foreign stations as we have done. Question. What are the advantages of the anthracite over the bituminous coal? AnsWer. It occupies less space, is less liable to spontaneous combustion, wastes less in the handling, and is more cleanly and will better bear exposure to the weather. Question. What is the advantage of having a good article of coal over an inferior article, with reference to economy of space? Answer. It is a great point in a ship to economize room; and one of the greatest difficulties we have in making a steamship efficient is the want of room. Any improvement in machinery, boilers, or fuel, which will give us more room is very desirable. By Mr. Bocock: Question. Are you a judge of steam machinery? Answer. No, sir; I do not think I am. It is not in the line of my profession, strictly. Question. Were you appointed by the Secretary of the Navy and Mr. Archbold to give an opinion as to the award to be made to the competing bidders of the Lancaster? Answer. I was appointed by the Secretary of the Navy with Mr. Archbold to examine certain reports made by the engineers. Question. In order to make a recommendation? Answer. Yes, sir; to make a recommendation of the award which would be most advantageous to the government to make. Question. How were you able, as chief of the Bureau of Construction, to understand these reports of the engineers upon machinery, and to make recommendations in relation to them? Answer. I could judge in respect to the weights, for example; for I should judge that the smallest weight would be best for the ship. Then as to the price, I should judge that the lowest price was preferable. These gentlemen wrote out their opinions, and I could take them as any other non-professional man could take them, with merely a general knowledge of the matter. Question. Do you remember your opinion in that case? Answer. I think it was in favor of the plan of Reaney, Neafie & Co. Question. Please to furnish the order that the new sloops should be launched by the meeting of the present Congress? Answer. [See appendix to this deposition.] Question. Please to furnish a list of the work done at the navy yards at New York and Philadelphia in the summer and fall of 1858? Answer. [See appendix to this deposition.] Question. Is not the number of men employed in the different navy yards a matter somewhat under your control? Answer. No, sir; I have no control over the number of men, their wages, or anything in relation to that. 20 COAL AGENCY. Question. While engaged in building vessels, does not that subject belong to the Bureau of Construction? Answer. I draw the money from which the men are paid, but I have no direct connexion with the men. That lays with the Bureau of Docks and Yards. Question. Are you able to say that it would not be more to the interest of the government to have a smaller number of men employed? Answer. No, sir; for I have no specific knowledge as to the actual number employed. It is a matter of judgment to a great degree, depending upon the opinion of the person having charge of the work. Question. What is your knowledge of the different systems of shipbuilding under different governments? Are you acquainted with the French and English systems? Answer. I have been a good deal in their dock yards, but I was then a young man seeking mechanical and scientific information, and professional knowledge connected with the line of my business rather than information with regard to their manner of conducting the yards. Question. Are you able to state wherein their systems differ from ours? Please to state any important particulars of difference. Answer. I think we approximate more nearly to the English system ia our employment of civil officers. In France the organization is more military; men educated in the Polytechnic School go into the docky.ards to be instructed as ship builders, and they correspond with the m'avna construction in our navy yards. Question. How many yards have they in England? Answer. Seven; at Pembroke, Plymouth, Portsmouth, Chatham, Woolwich, and Deptford. Question. Have they a smaller number of building yards in proportion to their navy than we have? Answer. Yes, sir; much smaller. Question. Are their yards larger or smaller than ours? Answer. I think they are generally larger. Question. What iis the comparative expense of building a steam vessel in that country and in this? Answer. I think it is:much greater here. Question. To what would you attribute that greater cost? Answer. To the higher price of labor and of some of our material. Question. Do not the men employed in their yards work more faithfuRy and do more work than they do here? Aimswer. I do not think they do. I see complaints in the English pap.er that they did not work:so well there as individuals working out (of the yard. Quaestion. How does the system of discipline and drill compare with oser. do not ey hae any for mechanics in England. A&n~swer. I do not think they have any for mechanics in England. The mechanics in France are under the military system, liable to a aind,of conscription. Queston. Do you mean to say that a mechanic in the English yard eaan go AoB upon his own business? COAL AGENCY. 21 Answer. He is not compelled to work for the government as in France. Question. If he does not work is he not turned out? Answer. I presume so, sir. Question. What is their system of management with a view to have good work in the yards? Answer. When a man has served a certain length of time he is allowed to retire on a pension, or superanuation. This is a great inducement to the men and master workmen to endeavor to give satisfaction. Their employment is constant, depending on their conduct. Question. Does your experience enable you to suggest any plan of reform by which we could have our building and repairs of vessels executed at much less cost than at present? Answer. The economy of this work depends in a great measure upon the honesty, the uprightness, and the ability of the men employed to superintend and to direct it. I do not see how we can in any other way secure that. A greater degree of individual responsibility in the different branches would tend to this result. Question. Do you know whether the contract system is employed in England? Answer. They never build the ships for their navy by contract in England, except in time of war, when very much pressed; and they make great complaints of the ships which have been built for them by contract, as I learn from their journals upon ship building. In the French navy, where they have tried the contract system, they have made the same complaints. Question. Can you state how the contract system works in this country? Answer. Several ships have been built that have not turned out very well. There was a vessel built by contract in Baltimore, a few years since. It was a very inferior vessel, and soon condemned. There is a ship now just finished by contract. I do not know how that will turn out. Question. Who built that? Answer. Mr. Westervelt, of New York. Question. In what respect is the contract system liable to put bad work upon the government? Answer. It is the direct interest of the contractor to make as much money as he can upon the ship; so that he or his men would be tempted not to use the best workmanship or materials. That is the complaint made in England and France. Question. Can the contractor use bad materials upon the vessel without it being discovered? Answer. Yes, sir. There are so many places where it can be covered up that it would be almost impossible to prevent it if the builder were not an honest, upright man. uestion. Of what material were the frames of these seven new sloops last year? Answer. A portion of white-oak and a portion of live-oak; I cannot say how much of each. 22 COAL AGENCY, Question. A portion of each vessel; or were some entirely of whiteoak and others entirely of live-oak? Answer. A portion of each vessel; the bottom timbers were of white-oak and the upper portion of the vessel was built of live-oak, which lasts longer. By Mr. Groesbeck: Question. Why were not the bottoms of the vessels built of liveoak, if it lasts longer? Answer. The white-oak is lighter, as well as cheaper. The lightness would affect the draught a little. By Mr. Bocock: Question. Was it not important to have the most durable timber for the bottom of the vessel? Answer. In this case lightness was one of our objects. We had a number of crooked knees in the yard which it was thought could be worked up, and I presume they were used as far as they could be. Question. How long does the frame work of a ship probably last? Answer. In about fifteen or sixteen years the expenses of repairing one of our ships-of-war equals the original cost. Question. Are most of the timbers of the vessel renewed in that time? Answer. The upper timbers, but not so much the bottom. Question. When did the item in the appropriation bills for " increase and repairs" commence in the appropriation bills; under what circumstances, and how has that money been applied? Answer. It was directed to have that name in the naval appropriation bill for 1840, but there had been appropriations with that name many years before; when the appropriation was first made it was intended to accumulate live-oak timber and other materials not considered perishable-copper, for instance. We have used that live-oak in building the last steam frigates, and it has been from that accumulation of live-oak that we have derived the timber we now have on hand, excepting what we have received under the contracts of the last two or three years. Question. Has the department the right under that appropriation to build a new vessel? Answer. No, sir, I think not; and I do not consider it would be done. Question. Did they not originally intend by that to appropriate so much money every year in order to allow the department to increase the number of ships in the navy? Answer. I cannot say. I do not consider it as authority to build new vessels. Special acts have been passed for the building of all the new vessels that have been built. Question. I understand it then to apply simply to the repairs necessary to be made to vessels in existence, and to the accumulation of material for any new vessels which may be ordered? Answer. No, sir; it is for repairs of the vessels to maintain them in a sea-worthy condition. It is not for accumulating materials for COAL AGENCY. 23 new ships, because we must get authority and have a new appropriation for that. Question. Was not this live-oak in the yards used in building some of the vessels lately ordered? Answer. It was used; but it should be replaced from the appropriation for the six frigates; it was borrowed; Congress appropriated money enough to pay for those vessels. By the Chairman: Question. Please furnish a table showing the annual expenditures of your bureau for construction and repairs, prior to its organization? Answer. [See appendix to this deposition.] By Mr. Groesbeck: Question. Have not the English, besides their navy yards, a great many repairing stations? Answer. No, sir; I think not. Question. Have they not repairing stations all around the globe? Answer. They have depots at Malta, Bermuda, &c. Their ships are all built in England, but they can make slight repairs at any of these points. They could not, as far as I know, rebuild a ship there. Question. Is the Navy Department, so far as you know, conducted and managed now upon the same system as heretofore? Answer. Yes, sir; I think it is. The course I have pursued has continued the same ever since I have been employed there. Question. Have any changes been made in the management during the present administration? Answer. I presume not. I have pursued the same course as heretofore. A great deal is left to my judgment and discretion in professional matters, which the Secretary never interferes with, although all those things are made known to him. Question. When are the great bulk of the purchases made for the navy yards? Are they made by the navy agent or by the department? Answer. The great bulk of the purchases not under contract are made by the navy agent. There are very few made by the bureaus. I limit them as much as possible. Question. Are the purchases made by your direction made through the navy agent, or through master workmen or other persons employed in the navy yards? Answer. The purchases made under my direction are made directly from the dealer, without the intervention of any other party. Sometimes I direct the navy agent to go to such a person and obtain such an article, informing him what it is for. The commandants are sometimes directed to make purchases, and those bills are marked, the price having been fixed; but the navy agent pays all the bills. The bureau has no communication with the master workmen or persons employed in the yard, except the commandant, on the subject of bills. Question. You pursue both courses? Answer. Yes, sir. I think I most generally order the articles from the manufacturers. These cases are very rare. Question. State the average cost of labor in the French, English, and American yards? 24 COAL AGENCY. Answer. I have noticed in the most recent reports on the French navy that they state the average pay of labor was 2.41 francs per day, and the pay in the British dock yards at the same time was 5.33 francs, or more than double. The wages of a first class ship carpenter is give in the British dock yards as 48. 6d. per day. In the United States navy yards the carpenters' wages are $2 50 and sometimes more. The average pay of labor for the past year has been $1 81 in the navy yards. JOHN LENTHALL. Extract from a letter addressed to the several navy yards, dated July 3, 1858, from the Bureau of Construction to the commandants of the yards. "It must be kept in view that the department insists on the draft of water named. The drawings, &c., will be forwarded by you to the bureau as early as practicable, that the work may be commenced, as it is the instruction from the department that the vessel be launched by the time Congress next meets, and nothing must interfere to prevent this." [Memoranda.] NEW YORK. Work in progress in the fall of 1858 was frigates Sabine, Niagara, new steam sloop-of-war, Harriet Lane, store-ship Supply, store-ship Release, steamers Atalanta, Caledonia, WVesternport, Memphis, San Jacinto, sloop St. Louis; besides work on the receiving-ship, and preparing stores for foreign stations. PIILADELPHIIA. Work in progress during the fall of 1858 was the Lancaster, two steam screw sloops-of-war, frigate Congress, steamer M. W. Chapin, for Paraguay, and the merchant steamer "City of Richmond," on all of which a great number of men could be employed, and the season of the year has advantages for work. NAVY DEPARTMENT, January 15, 1851. SIR: You are hereby appointed the agent of the Navy Department for the purchase of anthracite coal for the use of the navy. COAL AGENCY. 25 You will receive a commission of five per cent. on the amount of all purchases made by you in this capacity, which commission is to cover all expenses of selecting, purchasing, and shipping the coal. Your duty will be to select anthracite coal, under the direction of this department and its bureaus, of the best quality adapted to the purpose for which it is to be used, and to ship it to such points as may be indicated. I am, respectfully, your obedient servant, WILL. A. GRAHAM. B. H. SPRINGER, Esq., Philadelpha, Pennsylvania. NAVY DEPARTMENT, January 30, 1851. SIR: You are hereby appointed the agent of the Navy Department for the purchase of bituminous coal for the use of the navy. You will receive a commission of five per cent. on the amount of all purchases made by you in this capacity, which commission is to cover all expenses of selecting, purchasing, and shipping the coal. Your duty will be to select bituminous coal, under the direction of this department and its bureaus, of the best quality adapted to the purpose for which it is to be used, and to ship it to such points as may be indicated. I am, respectfully, your obedient servant, WILL.. A GRAHAM. Mr. JOHN JAMISON, Washington, D. C. NAVY DEPARTMENT, April 23, 1852. SIR: You will receive, enclosed herewith, copies of the appointment of Howland & Aspinwall, New York, the agents of this department for furnishing coal for the use of the United States squadron in the East India and China seas and Pacific ocean, and of their acceptance of the same. I am, respectfully, your obedient servant, WILL. A. GRAHAM. Commodore WILLIAM B. SHUBRICK, Chief of the Bureau of Construction, cc. NAVY DEPARTMENT, April 3, 1852. GENTLEMEN: You are hereby appointed the agents of this department for furnishing coal for the use of the United States squadron in the East India and China seas and Pacific ocean. The coal is to be delivered at such times and places and in such kinds and quantities as shall be required by the department, or the commanders of the squadrons before mentioned. The coal of each kind is to be of the best description and quality for the use of war 26 COAL AGENCY. steamers, and to be in all respects satisfactory to the officers who may order or require the supply. For the coal furnished and delivered you will be paid the purchase money, cost of transportation, insurance, and unavoidable expenses attending the same, and for your services as agents under this appointment you will be allowed and paid a commission of ten per cent. upon the gross amount of supplies, including the above mentioned expenses, provided that for all American coal shipped from the United States on this account there shall be deducted from tLe above commission of ten per cent. the commission allowed the agents of the department for supplying coal within the United States. Satisfactory evidence will be required that the accounts for the coal supplied are fairly stated and that no over charge appears, and payment will be made by the navy agent in New York on the presentation of said accounts, (including the commission of ten per cent. upon the gross amount, less the home agents commission,) duly certified as to quality and cost by the commander of the squadron for which the coal shall have been furnished, and approved by the chief of the Bureau of Construction, Equipment and Repair. It is to be distinctly understood that the commission of ten per cent., herein referred to as compensation for services, is declared and agreed to be in full for all demands on the part of the agents holding and accepting this appointment against the Navy Department for the transaction in any business in relation to purchasing or supplying coal for the squadron in the East India and China seas and Pacific ocean. This arrangement will extend to the delivery of three thousand tons of coal, and may be further continued for an additional quantity or for a definite time at the option of the parties, respectively. Be pleased to signify your acceptance or refusal of this appointment and the terms herein stated. I am, respectfully, your obedient servant, WILL. A. GRAHAM. Messrs. HOWLAND & ASPINWALL, Nezew York. NAVY DEPARTMENT, September 8, 1853, SIR: Transmitted herewith is a copy of a contract entered into with Messrs. Howland & Aspinwall, under date of August 11, 1853, by the terms of which you will be governed in the settlement of their accounts originating after the I st instant. I am, respectfully, your obedient servant, J. C. DOBBIN. J. HART, Esq., Chief of Bureau Construction, Equipment, andRepair. COAL AGENCY. 27 NAVY DEPARTMENT, August 11, 1853. GENTLEMEN: The act of Congress making appropriations for the naval service, approved September 28, 1850, provides that " in the article of fuel for the navy or naval stations and yards, the Secretary of the Navy shall have power to discriminate and purchase, in such manner as he may deem proper, that kind of fuel which is best adapted to the purpose for which it is to be used." Under this provision of law, you were, on the 3d of April, 1852, appointed the agents for furnishing for the use of the United States squadrons in the East India and China seas and Pacific ocean;" and for the coal furnished and delivered by you, it was stipulated that you should " be paid the purchase money, cost oftransportation, insurance, and unavoidable expenses attending the same; and for your services as agents under this appointment you will be allowed a commission of tei. per centum upon the gross amount of supplies, including the above mentioned expenses, provided that for all American coal shipped from the United States on this account there shall be deducted from the above commission of ten per centum the commission allowed to the agents of the department for supplying coal within the United States." The department, in consequence of the discontinuance of the agencies for supplying coal within the United States, and for other gcod and sufficient reasons, deems it proper to annul and revoke, and hereby does annul and revoke, the appointment held by you under the letter of appointment dated April 3, 1852, from and after the 31st day of August, 1853, and instead thereof proposes the following: You are hereby appointed the agents of the Navy Department for procuring and supplying coals for the use of the squadrons of the United States in the East India and China seas and Pacific ocean, from and after the 1st day of' September, 1853, under the following stipulations, viz: A supply of bituminous and anthracite coals, to be regulated by the Navy Department, (for the present not exceeding one thousand tons per month) is to be procured by you, shipped and delivered at your risk at Macao or Shanghai, in China, or such other port or ports in the East India or China seas or Pacific ocean as may be designated by the Secretary of the Navy. Such deliveries to be made within reach of the ships' tackles. The coal thus procured, shipped, and delivered, must be of the best quality for war steamers, and to be in all respects satisfactory to the Secretary of the Navy at the time of shipment, or the commanding naval officer present at the port of delivery, or in the absence of such naval officer, to be approved and certified by the naval storekeeper at such port of delivery; and for the coals so procured, shipped, and delivered, the Secretary of the Navy agrees to reimburse you for the following expenditures, viz: 1st. For the cost of the coal, which is to be of the best quality, bought for cash on the most reasonable terms, also for the cost of lighterage or cartage; 2d. For the cost of freight and primage or transportation of the coal; and 28 COAL AGENCY 3d. For the detention of vessels, or demurrage, when such detention or demurrage is caused by any act of the Navy Department or its authorized officers or agents. And it is further agreed on the part of the said Secretary of the Navy that for your services as agents of the Navy Department under the appointment now proposed, (if accepted by you,) after the delivery of any portion of the said coals, agreeably to the instructions which may be given by the Secretary of the Navy, and upon the production of bills duly certified and approved by the commanding naval officer present, or the naval storekeeper, at the port of delivery, a commission of 6 (six) per cent. upon the cost of the coals delivered, including the freight or transportation. It is expressly declared and understood that the Secretary of the Navy is in nowise responsible for any loss, and assumes no risk or liability for losses arising from the dangers of the seas or from any other cause whatever attending the shipment and transportation of said coals, and that payment in full will be made only upon actual and bona fide deliveries made, and upon bills duly certified and approved; but upon satisfactory evidence being furnished to the Secretary of the Navy of any shipment of coal under this arrangement he will authorize an advance to be made to the said agents not exceeding the first cost of the coals embraced in said shipment. And it is further stipulated and declared that the commission of 6 (six) per cent., as herein provided for as compensation for your services, shall be in full of all risks and demands for services rendered on the part of the agents holding and accepting this appointment in relation to purchasing, shipping, or delivering coals for the use of the squadrons of the United States in the East India and China seas and the Pacific ocean. A bond accompanies this letter of appointment and agreement, to be executed by the agent herein named with two or more sureties, in the penalty of one hundred thousand dollars, conditioned for the faithful performance of all the conditions and stipulations of this agreement, and well and truly to pay over and refund such sums of money as may have been advanced to them by the said Secretary of the Navy aforesaid, in the event that they shall fail to procure, ship, and deliver said coals as herein provided; the sufficiency of said sureties to be approved by the judge or attorney of the United States of the district in which said agents now reside This arrangement to continue until revoked or annulled by the Secretary of the Navy, after a notice of sixty days. Be pleased to signify your acceptance or refusal of this appointment and the terms herein stated. I am, respectfully, your obedient servant, J. C. DOBBIN. Messrs. HOWLAND & ASPINWALL, New York. NEW YORK, August 15, 1853. We hereby agree to and accept of the propositions contained in the foregoing letter for the supply of coals to the squadron of the United States in the China seas or elsewhere, as we may be ordered by the COAL AGENCY. 29 department, our services under this agreement to commence on the 1st day of September proximo, and to terminate as mentioned in the preceeding letter. We understand that our compensation of six per centum commission is to be computed on the items 1st and 2d, as specified in the said letter, and in the event of demurrage being incurred we will pay the same, and only recover from the Navy Department the net amount paid, without charge of commission on the same. HOWLAND & ASPINWALL. NEW YORK, August 18, 1853. It is also hereby further understood and agreed that the demurrage alluded to in our within acceptance of the foregoing propositions is to arise only in the manner stipulated. in the foregoing letter, and be payable only when such detention of vessels or demurrage is caused by any act of the Navy Department or its authorized officers or agents.. OWLAND & ASPINWALL. NAVY DEPARTMENT, July 29, 1853. SIR: The coal agents of this department, Messrs. Jamison and Springer, have been notified that no further orders for the supply of coal for naval purposes will be given to them after this date. They are directed to complete the orders now on hand, and to render their accounts to the proper bureau for final settlement. I am, respectfully, your obedient servant, J. C. DOBBIN. SAMUEL HART, Esq., Chief of the Bureau of Construction, Equipment, and Repair. Hereafter when purchases of coal under the direction of the bureau become necessary, the department will instruct you as to the manner in which they are to be made. NAVY DEPARTMENT, October 3, 1853. SIR: Be pleased to instruct the navy agent at Philadelphia to purchase on the best terms possible, and to ship at the earliest day practicable, 500 tons anthracite coal, to be delivered at the navy yard, Portsmouth, New Hampshire; 300 tons anthracite coal, to be delivered at the navy yard, Boston, Massachusetts; 300 tons anthracite coal to be delivered at the navy yard, Philadelphia. You will instruct the navy agent at Baltimore to purchase in the same manner 500 tons anthracite coal, to be delivered at the navy yard, Norfolk; 300 tons anthracite coal, to be delivered at the navy yard, Pensacola. You will also instruct the navy agent at Washington to purchase in the same manner 300 tons anthracite coal, to be delivered at the navy yard at that place. Each of the above deliveries to be subject to the test and inspection of the proper officers at the points of delivery. I am, respectfully, your obedient servant, J. C. DOBBIN. CIIEF OF BUREAU OF CONSTRUCTION, EQUIPMENT, &C. 30 COAL AGENCY. NAVY DEPARTMENT, May 22, 1854. SIR: You are hereby appointed the agent of the Navy Department for the purchase of the anthracite coal for the use of the navy, from time to time, as specially ordered by the department and its bureaus. Your duty will be to select anthracite coal under the direction of the department and its bureaus, of the best quality, adapted to the purpose for which it is to be used, and to ship it to such points as may be indicated. You will receive a commission of five per cent. on the aggregate amount of the cost of the coal, its transportation and freight, which commission is to cover all your expenses of selecting, purchasing, and shipping the coal. Very respectfully, your obedient servant, J. C. DOBBIN. BENJ. TYSON, Esq., Washington, D. C. NAVY DEPARTMENT, May 22, 1858. SIR: You are hereby appointed the agent of the Navy Department for the purchase of anthracite coal for the use of the navy from time to time, as specially ordered by the Navy Department or its bureaus. Your duty will be to select anthracite coal, under the direction of the department and its bureaus, of the best quality, adapted to the purpose for which it is to be used, and to ship it to such points as may be indicated. You will receive a commission of five per cent. on the aggregate amount of the cost of the coal, its transportation, and freight engaged by you, which commission is to cover all your expenses of selecting, purchasing, and shipping the coal. I am, respectfully, your obedient servant, ISAAC TOUCEY. CHAS. H. HUNTER, Esq., Reading, Berks County, Pennsylvania. NAVY DEPARTMENT, July 3, 1854. SIR: Mr. James Polk, of Baltimore, Maryland, has been appointed agent of the department for the purchase of bituminous coal for the use of the navy, as may be specially directed by the bureau. He to receive a commission of five per centum on the aggregate amount of the cost of the coal, its transportation and freight, which commission is to cover all expenses of selecting, purchasing, and shipping the coal. I am, respectfully, your obedient servant, J. C. DOBBIN. JOHN LENTHALL, Esq., Chief of the Bureau of Construction, d&c., &c. Commissions paid to the several coal agents by the Bureau of Construction, S'c., during each fiscal year, since their first appointment in 181. Names. To June 3, To e, To Jne 30, To Je 30, To June 30, To Ju ne 30, T o Ju ne 30, T o June 30, To ec. 3, Total 1851. 1852. 1853. 1854. 1855. 1856. 1857. 1858. 1858,6 months. B. H. Springer................ 115 09 292 31 74 23 $2,100 37 $214 00.............................................. 2,996 00 ohn Jamison.................... 234 45 1,041 36 94 24 690 17 346 67................................................. 3236 89 Benjamin Tyson.... 1........................ 1,02 13 $1,244 30 e1,404 29 $5,633 78.............. 9,304 50 C. H. Hunter............................................................................................................. 319 21 $5,80774 6 126 95 James Polk............................................................................ 227 02 90 47 201 26............. 79 06 597 81 349 54 1,333 67 1,198 47 2,790 54 1,809 82 1,334 77 1,605 55 5,952 99 5,886 80 22,262 15 Howland & Aspinwall*...........1.......... 1 78517 22,030 73 27,159 96............................................................. 50,975 86 * This amount was paid to Messrs. Itowland & Aspinwall, who acted for that time as the special agents of the department for the procurement of coal and freighting it for the Japan expedition, they purchasing the coal and paying the freight bills out of their own funds, and, upon settlement with the bureau, receivi g a per centage upon the gross amount. - Statement of the amount of commissions paid to the several coal agents, for purchases under the cognizance of the Bureau of Yards and Docks, during each fiscal year since t their first appointment in 1851. To June 33, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To June 30, To Dec. 31, Total. lb51. 1852. 1853. 1854. 1855. 1856. 1857. 1858. 1858 6 months. - —.. _ _.... John Jamison................... $213 30 $872 35 936 05 $66 79...................................................................... $2,088 49 B. H. Springer................... 58 21 550 08 840 90 1,020 52........................................................ 2469 01 James Polk........................................................................ $1,949 75 $1,994 22 $1,761 46 $2,434 70 $1,866 21 10,006 34 Benjamin Tyson..................................................................... 1 363 34 687 95 1,373 72 1709 67............. 5,134 68 C. Hl. Hunter.................................................................................................................................. 1645 18 1645 18 271 51 1,422 43 1,776 25 1,087 31 3,313 09 2,682 17 3,135 18 4,144 37 3,511 39 21,343 70 FEBRUARY 8, 1859. JOS. SMITH, Chief of Bureau. 32 COAL AGENCY. Abstract statement showitng coal purchased abroad semi-annually from January 1, 1850, to December 31, 1857. Dates. No. of tons. Average Total cost. cost per ton. 1850. First half of 1850- i —.... 1, 331 $8 75 $11,634 05 Second half of 1850 ----- -- - 493 8 28 4,084 01 1851. First half of 1851-.-,- ---- - 1 1,364 7 33 9,998 00 Second half of 1851 ----- --- - 1,938 7 06 13,693 12 1852. Firsthalf of 1852 --—...........- 1,414 7 68 10,864 25 Second half of 1852 ---- -- - 1,875 8 65 16,223 40 1853. First halfof 1853 —.-. —-..,. —- 5,354 13 61 72,878 12 Second half of 1853 —------ - 974 7 67 7,466 69 1854. First half of 1854 — - ------ 1,803 11 22 20,236 45 Second half of 1854 —-- ----- 1,731 12 73 22,031 39 1855. First half of 1855 --- --- -- 1,882 11 24 21,150 76 Second half of 1855 ----------- 892 11 13 9,928 23 1856. First half of 1856 --- ------ 1,210 11 98 14,495 28 Second half of 1856 —------ 648 8 21 5,320 18 1857. First half of 1857 --- - ----- 592 5 09 3,012 81 Second half of 1857 —..- -. 1,337 5 51 7,362 11 All the coal purchased abroad is believed to be foreign or English coal, except the purchases December 13, 1854, January 5, 1856, and December 31, 1857. uoae purclased onjoreign stations. Dates. Where purchased. No. of tons. Cost per ton. Total cost. For what vessel. 1850. March 2 Mediterranean 150 $7 40 $1,110 00 Mississippi. April 15 Do -- 308 7 20 2,217 00 Do. May 26 Gulf of Mexico --. -115 8 00 920 00 Saranac. 30 Do.-.. ------- - 133 8 00 1,064 00 Do. June 11 Mediterranean ---- ---- -- -390 8 00 3,120 00 Mississippi. 17 Pacific —-- - ----- —.- - 235 13 63 3,203 05 Massachusetts. Aug. 20 Mediterranean. - ------ ----- 160 8 64 1,382 40 Mississippi. Sept. 5 Do -— 233 8 17 1,903 61 Do. 6 Do. —.... —-- -,, —.. 100 7 98 798 00 Do. 1851. March 3 Gulf of Mexico -151 8 00 1,208 00 Saranac. 15 Do —- - 101 9 50 960 20 Do. 31 Do ---... - ------- - 58~ 8 00 468 00 Do. April 30 Mediterranean.- --—. — ----- 175 7 00 1,225 00 Mississippi. May 10 Do --— 358 7 00 2,506 00 Do. 22 Do...- -....-........... —. 267 6 80 1,845 62 Do. June 6 Gulf of Mexico - - - -50 9 25 469 44 Vixen. 21 Mediterranean -.- -203 6 48 1,315 74 Mississippi. July 16 Do- - -. 162 6 50 1,053 00 Do. Aug. 7 Do. — -- ------- 511 7 00 3,577 00 Do. Sept. 1 Do -... — -. 304 6 50 1,976 00 Do. 22 Gulf of Mexico -.- -... — 3 30 9 25 277 50 Vixen. 30 Mediterranean.........-.... -.. 300 6 45o 1,935 50 Msisissippi. 30 Gulf of Mexico................. 256 8 00 2,048 00 Saranac. Oct. 11 Mediterranean............. 226 7 00 1,652 00 Mississippi. 20 Do.............. 149 7 88 1,174 12 Do. 1852. Feb. 10 Gulf of Mexico........................... 12 16 00 192 00 Saranac. 10 Do..._ - - - 19 15 00 283 50 Do. 23 Do...... 25 5 00 125 00 Do. March 4 ~X................................... 399 850 3,39150 Do. 15arch 4 )o-,.......,,,,,. 399 8 50 3,391 50 Do. 15 Oa....-............ v........o.s. 56 7 50 420 00 Fulton. STATE MENT-Continued'. Date. When purchased. No. of tons. Cost per ton. Total cost. For what vessel. 1852. April 3 Gulf of Mexico. —-- -. -------- 66 $7 50 $495 00 Saranac. 7 Mediterranean........- - -...... —-.... 160 4 25 680 00 San Jacinto. May 18 Gulf of Mexico...................... 941 7 00 663 25 Saranac. 27 Do —-......... —- -. 44i 15 00 667 50 Do. 29 Mediterranean..-..-..-.... --- -- 200 7 52 1,504 00 San Jacinto. June 4 Gulf of Mexico............ —- 175.9. 7 00 1,231 25 Saranac. 26 Mediterranean....................... 161~ 7 50 1,211 25 San Jacinto. July 10 Do.....-.............. —.-.-.-. — 273- 8 00 2,185 00 Do. Aug. 10 Do..-..... 30 6 00 180 00 Mississippi. 12 Do.. -—.... — —. 135 6 461 872 77 San Jacinto. o 18 Do..,... 117 5 00 585 00 Mississippi. 28 Do 75 6 664 499 88 San Jacinto. 28 Do........ 75 5 94 448 50 Do. Sept. 15 Do..... 169- 7 10~ 1,206 23 Do. Oct. 22 Gulf of Mexico..............-. —.. 20 6 50 130 00 Fulton. Nov. 8 Brazil..-................. 128 12 23 1,566 58 Saranac. 8 Mediterranean...-............... 1791 7 33 1,316 77 San Jacinto. 19 Brazil... 107~ 20 06 2,146 42 Saranac. Dec. 14 Port Mahon.................... —.. 95 7 50' 712 50 San Jacinto. 15 Madeira............................... 440 10 & 9 30 4, 073 75 Mississippi. 1 Mediterranean.... ~~......... ~........ 30 10 00 300 00 Fulton. 1853. Jan. 5 Rio de Janeiro....................... 366~ 9 45 3,458 70 Saranac. 11 St. Helena. —.- -. —---.......... —....... 124 25 20 3,124 80 Mississippi. 12 Genoa... -...... 664- 6 58 436 16 San Jacinto. 27 Barbadoes — ------ ------ 431- 12 66 544 67 Saranac. Feb. 2 Cape Town. -- -- —, —------- 145 17 50 2,537 50 Mississippi. 2 Do. —--------- ---------- - 450 20 00 9,000 00 Do. 2 Do —-- -------------------- 100 19 00 1,900 00 Do. 4 Marseilles- 186 6 58 1, 223 80 San Jacinto. 17 Do --------— 148 6 20 918 19 Do. 22 St. Thomas. —--------- -.- 76 9 00 684 00 Water Witch. 24 Mauritius- ----- ------------- 208 24 00 4, 992 00 Mississppi. March 7 East indies —--------------------------- 13 10 00 Do —-. —---- --------------- --- - 563& 9 12 5,951 75 Powhatan. II Denmarra — -84 —--- 12 00 1,009 00 Water 14 Point de Galle, Ceylon ---- --— 250 7 50 00 iW e Wc. Do —---------------------— 6-.15.13 6 15 875 00 Mississippi. 31 Brazil —------—.... -... —--------—. 109 11 19 1,220 43 Saranac. April 6 Do. —--—. -- ~ ---------— ~- 66- 20 00 1,330 00 WaterWitch.Ea.s.Indies-..-.-. — -.. 200 36 45 7,290 00 Powhata 12 Naples- - - 133- 7 33 978 38 San Jacinto. 16 Pernambuco --- --—... -- 90 9 06 816 08 Water Witch 28 Rio de Janeiro --- -. —---- --- -- 80 18 98 1,514 40 Do. East Indies-~ ~ ----------—.... 100 20 CO 2,000 00 Powhatan. May 2 Alexandria --—.. — --.-..-. —------ 188, 6 58 1,240 38 San Jacinto. 6 Montevideo. --------- -—..-.. -..... 92 35 16 3, 234 72 Water Witch 16 East Indies —-........ —----—.. — 7 27 09 189 67 Mississippi. 18 Malta-. —-..-.... — -—. — 187 5 67 1,060 29 San Jacinto, 26 East Indies~ ---.- ----- - ---- - _ — 15 25 50 382 50 Powhatan. 27 Genoa —. —.~. —--------------—...... 125 9 02 1, 128 00 San Jacinto June 4 Gibraltar --- ------—. — - 187 7 60 1,421 20 Do. 9 H-avan- - -80 9 00 720 00 Vixen. 13 Fayal.i- ~-~~~ —-~-.-.~ —-— ~ — 250 12 00 3,000 00 San Jacinto, 19 East Indies —------ --- -----—. 287 11 50 3,300 50 Powhatan.20 Do.- - --- ------—. —---- 250 17 50 4,396 00 Do. Do. —---------—. ------ 2 10 50 August 10 Halifax ~- ----------—......- 46 5 20 239 20 Princeton, Sept.. 2 West Indies —---- --------- 85 2 40 204 00 Fulton. 6 Do~.............. —- -~-..~.-. —..-. 79 3 001 237 60 Do. 9 Sydney~- ------ -.. 100 3 12 312 00 Princeton. Nov. 8 Brazil — ~ -~ ------- ----...j- 1431 6 70 958 14 Saranac. Dec. 9 Fayal ----. —-- -~~~ — - -. 193 12 00 2,316 00 Do. 17 Gibraltar —---- -- —. -- - - -- 160 8 50 1,360 00 Do. 31 St. Thomas. — ---- -- - 167-1 11 00 1,839 75 Fulton. 1854. Jan..14 Naples.. —-- - -........... 221^ 8 30 1,837 16 Saranac. Feb. 23 Messina -- -----.~~~. —-- - 1981 9 12 1,812 60 Do. Montevideo. —~ ~~ - - -. —. — - 4 16 00 64 00'Water Witch., March 11 Genoa —------ — ~ —-------- -—. — 218k 10 05 2,195 93 Saranac. April H. av a —- --. —------ -------- ---- 115 10 00 1,150 00 Princeton. STATEMENT-Continued. Dates. Where purchased. No. of tons. Cost per ton. Total cost. For what vessel. 1854. April 7 Gulf of Mexico.. —- 50 $8 00 $400 00 Fulton. Do........ —--—.. —- - 129 11 00 1,419 00 Do. May 2 Naples --- ------—.. -------- 151 12 59 1,912 04 Saranac. Havana — ------ - 61 15 00 922 50 Princeton. 22 Smyrna ---- -- ------- - 48~ 15 04 729 44 Saranac. 25 Do —-- ----------- -------- - 175 15 04 2,632 00 Do. Gulf of Mexico - --- ---------- 153 11 00 2,013 00 Fulton. June 23 East Indies —---------------------- 9 27 90 255 77 Misssissippi. 29 Genoa --------------------------— 239 12 10 2,893 01 Saranac. July 29 Do ----------------------------—. 223 12 03o20i 2,683 13 Do. Sept. 27 East Indies -------- ----------------- 230 7 99- 1,839 25 San Jacinto. Oct. 27 Genoa. -- ---------------- - 346 9 82 3,297 72 Saranac. Nov. 6 East Indies -------------- ---- - 100 7 30j 730 50 San Jacinto. 9 Havana ----- 100 10 00 1,000 00 Princeton. 16 Montevideo —-- - 18 11 00 198 00 Water Witch. Dec. 2 Havana.. ——.. —...... —----- 115 10 00 1,150 00 Princeton. 13 Acapulco --------------- ---- --- 158 40 00 6,320 00 Susquehanna. 14 Havana ---— 121 14 00 1,694 00 Princeton. 16 Brazil ---- - 25 10 00 250 00 Water Witch. Do —-- 4 14 00 56 00 Do. 18 Genoa --- ---- ----- --- 136i 10 151 1,387 79 Saranac. East Indies. —- -—..... —------ 150 9 50 1,425 00 San Jacinto. 1855. Jan. 27 Gulf of Mexico --- -------- 177~ 10 00 1,950 66 Fulton. March 16 Montevideo -—.. —-... — -------- - 90 15 00 1,350 00 Water Witch. 17 Gulf of Mexico ---- - 1961 12 00 2,360 00 Fulton. April 27 Naples ----.... ——. —---------—.. 223j 14 56 3,247 00 Saranac. 29 Havana ------ 88 10 00 880 00 Princeton. May 1 Mediterranean ---- ---- -210 10 00 2,100 00 San Jacinto. 20 East Indies ---— 118k 9 00 1,063 30 John Hancock. 23 Gibraltar......... --- - 110 9 50 1,045 00 Saranae. Do. —... — --- 104 9 00 936 00 Do. June 2 Havania ----—.. —. —.-.. 189 10 00 1,890 00 Princeton. 9 Brazil —-- 40 15 00 600 00 Water Witch 11 Gibraltar. 120 10 00 1,200 00 Saranac. July 7 Marseilles —- - 63 11 66 741 42 Do. Do. ------- 69- 9 97 694 56 Do. 28 Naples- ---------- ------ -- 82 13 32k 1,092 82 Do. Sept. 8 Pacific -— 6 20 00 120 00 John Hancock. Do —----—. — ----- -- 4gi- 18 00 75 60 Do. Oct. 5 Genoa --— 276 8 84 2,439 84 Saranac. 8 Brazil --- -42 16 00 672 00 Water Witch. Do --- -- -- 47 14 50 681 00 Do. 18 Naples -- - -— 80 9 21~ 739 96 Saranac. Nov. 6 Pireons ------------ - 146 12 92k 1,887 05 Do. 26 Constantinople,.. —-—. —---—..... —-.- 84 13 16 1,105 44 Do. Dec. 15 Alexandria..-.- ------ ---- - 98 11 75 1,151 50 Do. 31 Naples. ------------------ --- 109 9 68~ 1,055 34 Do. 1856. Jan.: 5 San Juan del Norte -—... - - 80 14 00 1,120 00 Fulton 19 Brazil —-- 116 13 00 1,514 50 Water Witch. MSarch 5 Do. —--- 80 13 04 1,043 20 Do. 7 Genoa ---- - -------- 165k 10 524 1,739 05 Saranac. 20 Brazil.......... —- - 63- 17 22 1,095 19 Water Witch. April 8 Do-. - - 75 8 00 600 00 Do. 18 Do —.- ----—. ----,- 70 9 50 665 00 Do. 30 Do —----—..-. - -.- - 68 10 00 680 00 Do. May 21 Genoa- -—..... —--- -. —---—. —--- 92 12 22 1,124 24 Saranac. 31 Gibraltar...-.....-. - 180 9 70 1,746 00 Do. June 10 Fayal - - --------- -- 220 14 40 3,168 00 Do. Oct. 19 Southampton -.-. ---- ----- 268 6 26 1,677 68 Merrimack. Dec. 2 Lisbon ---........ —-—. —--—.. 230 8 50 1,955 00 Do. 28 Cadiz - -- - --— 150 11 25 1,687 50 Do. 1857. Jan. 3 Havana,-... ---—.. — --- 320j 5 29i 1,698 75 Wabash. May 29 England. - - ------ ---- -- 271 4 8 1,314 06 Niagara. July 22 Do. —,.. — -- ---------- 652 4 41 2,875 32 Do. August 1 Do - ---------------- 55 4 84 266 20 Do. Oct. 31 Do...- -- - 293 4 16 1,218 88 Do. Nov. 4 Do. —-... —--- --- 187 4 84 751 71 Do. Dec. 31 Aspinwall -. —- -—. —--—. —------- 150 15 00 2,250 00 Wabash. 38 COAL AGENCY. Abstract statement showing coal urchased and shipped to foreign stations, semianually, from January 1, 1852, to September 30, 1858. Dates. No. of tons. Averagecost per Total cost. ton, including freight. First half year of 1852 —- ----- - 2,407 $13 04 $29,233 78 Second half year of 1852 _- - 5, 91613 18 70 110,620 80 First halfyear of 1853 -....-...... 4, 936 4 16 93 83,548 18 Second half year of 1853 - 8,279}-l 19 89 164, 745 05 First half year of 1854 -— _.- - 12,07619 21 05 254,312 15 Second half year of 1854 -- - - 416 14 73 6,131 15 1855, none. 1856, none. First half year of 1857 ------ 2, 7596 14 223 39,249 10 Second half year of 1857 —, - 13, 676- 14 32 195,881 13 First half year of 1858, none. Second halfyear of 1858,to September 30 4,474 12 70 57,834 80 Account of coalpurch7ased and shipped toforeign stations from January 1, 1852, to September 30, 1858. Dates. Where purchased. No. of tons. Cost per Freight per Shipped to- Name of vessel. ton. ton. 1852. By Hlowland & Aspinwall1May 12 In United States —---- - 200 $3 50 $10 00 Shanghai C iterd DoMay 12 —-— In —— D- 346- 3 60 10 00-assiterides. 25 Do. ------- - 704 3 65 10 00 Macao. —._- - -_ Lebanon June 11 In Cardiff, England —-...-... 550 2 07 9 53 Shanghai -- -- Whampoa. 25 Do.-.. — --.-4 —-- - 440 2 07 9 27 Macao. Henrietta Elizabeth Susanna. Jlly 9 Do. —-2.-5.-...-. —--- 1 9 2 07 9 29 --— do - President Van Son. 22 In United States -,... 116 13 55 1500 22 Do. —---------- 570 3 70 15 00 Honolulu- Philomela. 22 Do. — ---- - 604-.- 360 15 00 -— do ----- - Tangier. 31 Do. —----- - 343- 3 70 14 00 —..-do --- - -- Jacqueline and Elise, 31 Do. 1, 005-0 3 70 10 00 Macao.. Gertrude, Aug. 9 Do -—.. —----- -. 3420 3 70 900 Shh Do. —--.- —. 212-1 3 95 9 00 Shanghi - Rai. Oct. 21 Do. —---— 116. - 3 70 10 00 Mao Do.- — 2~- 3- 50 10 20001| 3 80 | j Macao ----- ---- - Talbot. 25 Do. —---------- 1152 — 3 70 10 00. 25 Do. --—. —------—. 11592 3 80 14 50 r auritius --- Singapore. Do. —--------------- -19- 3 80 14:50 25 In Cardiff, England - 550 4 92 12 91 Shanghai - -- Security. Nov. 20 Do. 282 3 76 12 30 -— do —---- - Ulidea. 1853. Jan. 3 Do.-,- -, — 262 2 66 14 15 Macao -~ -- -- - Vlashandel. 11 Do. - --- - 729 2 64 14 08 -. —do Aristides. 22 Do. - ---—. 986 14 16 F't included. -.-do ------ ----- Pieter C. Hooft 28 Do... —-.- - 637 14 17 --— do --- -do - --- - Philip Lang. Feb. 19 Do. —-, —--- 191 5 56 15 92 Shanghai —-- - Cambula. 25 Do.-' —-—. 313 14 17 F't included..do -~ -- Clara Anna Maria. Mar. 12 Do. —----- 100 5 59 16 00 -..do — ~ -- --- Prues Secher Adler. 19 Do.-.~ -. 287 5 73 16 00 Hong Kong.- -.- New Margaret. 31 In United States —-------- --- 537-4 4 35 15 00 Shanghai -..-.~. —-. — Bay State. May 13 In Cardiff, England-,....- 894 19 78 F't included. — do --- -William de Erst. ACCOUNT OF COAL-Continued. Date. Where purchased. No. of tons. Cost per Freight per Shipped to- Name of vessel. ton. ton. 1853. By Howland & AspinwallJuly S In United States —----------- 558 $4 00 14 00 ShanghaiBeverly. Do. —------ ------- 383 325 14 00 Aug. 6 Do. —-- - --- 827~ 3 80 16 00 Mauritius —---- --- Annie Bucknam. 8 Do. -.. —------- 3511 3 80 14 00 Hong Kong - ------- Sea Witch. Sep. 24 Do -—....... — -- 654j 4 00 14 00 Macao —--- Roebuck Do. --- - t 12414- 3 60 14 00 oe 28 jDo. —- -662- - 3 2415 14 00 Shanghai — - Rose Standish. Do. -------------- 662j 3 25 14 00 O Nov. 7 Do. — -------- 300 7 00 16 00 Singapore --- Fenelon. {> 25 In Cardiff, England ----- 484 18 41 F't included. Hong Kong ---— l. —-. Johanna. 28 In United States --------—. 7161o 4 50 18 00 -—.do —-- Medford. Dec. 2 In Cardiff, England. —--- 377 21 06 F't included. Shanghai --- -- - Flora. 7 In United States ----- 1, 385- 4 50 17 00 --— do --- -- Ellen Foster. 21 Do. —--- -—.- 663 8 4 50 15 00 Hong Kong ------—. Josiah Quincey. O 1854. Jan. 1 In Cardiff, England --- - 360k 19 38 F't included -- do ------- Loopuyt. 6 Do ---------------- 550 19 32 --- d o do --—. ——.- Vander Palm. 16 In United States —-- 1,212 5 05 15 00 --- do -- ------ - Cape Cod. Feb. 16 Do —---- ----- 484 5 05 11 00 Rio de Janeiro ------ Amelia. 17 Do —----- ---- 750 5 05 15 00 HIong Kong — - -- Cygnet. 17 Do —----- 200 5 05 15 00 Valparaiso —------- Emilie. 22 Pacific Mail Steamship Company- 600 26 00 Delivered at Panamaed of Pacfic ail Steamship 22 Do —-------- - 400 30 00 --- do —---- Benicia. -Compy —- P 22 Do ------- --- 300 26 00 -—. do —-. Acapulco - 3 In Cardiff, England —--------- 697 19 26 F't included Hong Kong --- -- Johanna Marinus. s18 n United States —---—. —--- 360 4 80 11 00 Rio de Janeiro —-- - Jorgan Beck. Mirch. In Cardiff, England. —. 503 15 37 F't included -— do —------ Carin Cecelia. liar. 9 Do -- ------ 337 3 25 12 33 - do —---------- Progress. 15 Do -. —.-. 1,000 5 05 18 00 Valparaiso —---— _ George Raynes. Apr. 13 Do. -— 600 4 50 15 00 Hong Kongo,-. Shooting Star. M ^y 10 Do.- 600 4 50 22 50 Valparaiso. * - - James Edlwards. June 9 Do- 1,150 3 31 17 07 -do ---- Ben Looman. 9 Do -"... —----- 539 20 86 F't included Hong Kong —- ---- Naragana. 20 Do — -- 692 29 12 --- do —-—. Honolulu —--- Mercedes. 20 Do 741i 19 51 ---..do —---- Hong Kong —---- Soolo. Sept. 12 Do --- ----- 416 14 7 3 -.do ----— do --- ------— Nile. 1857. June 17 New York 6921 14 78 --— do-.., St. Helena. Palestine. 20 Do- 998 13 72 -- -do.....- Straits of Sunda, —--- Harry of the West. 24 Do-.. 1, 068S- 14 19 - do- --- Cape of Good Hope.... Game Cock. July 21 Philadelphia- 779- 4 40 6 00 Rio de Janeiro -. — Fanny Holmes. Aug. 22 Do.. —- 1,100 4 25 11 00 Panama Morning Light. 25 Do 612 4 25 10 00 Valparaiso --- ------ William. Sept. 22 Do 2,052 4 95 5 90 Hong Kong- _ - Norway. Oct. 14 Do. 573 4 95 9 10 Shanghai - -- Tartar. 21 Do -1,219 4 25 8 00 Callao William Cummings. 29 Do -- ------------- 825 4 25 10 00 Cape of Good Hope — ~ Fleetwood. Nov. 6 Do - 1, 523 4 25 12 00 Hong Kong ---— Orpheus. 10 Do — 814 4 25 12 00 Mauritius -Nestorian. Dec. 8 Do --------— 1,786 4 25 12 50 Singapore and Hong Kong Flying Mist. 11 Do 1,071 4 25 12 50 Hong Kong... - Hippogriffe. 19 Do - ---------- 1,322 425 10 00 Panama.-_-__ —- John Trucks. Aug. 24 Do 471 85 12 00 Rosario Pathfinder. 25 Do -750 3 85 8 00 St. Catharine's- Messenger. 25 Do 451 3 85 12 00 Rosario -------------— Bion Bradbury. 27 Do -- 397 3 85 9 00 Pernambuco ------- - Chase. 27 Do. 353 3 85 9 00 -.do. — --. Marion. Sept. 8 o ------------------ 675 3 85 7 00 Rio de Janeiro —- - Howard. 22 Do -----— 346 3 85 12 00 Rosario —------ ---- Frederick Lenning. 23 Do —--- 300 3 85 6 00 Barbadoes — -- Ocean Wave. 24 Do-400 3 85 6 00 - — do —------------ Ocean Bride. 25 "Do ---- ---- 331 3 85 6 00 -— do —---------------- New Era. P. S.-Inland freigdh to be added to shipments of 1858, varying from 70 cents to $1 40 per ton. Statement of coalpurchased by Bureau of Construction, -'c., since the 4th of March, 1857. Dat. lBy whom purchased. From whom purchased. Number of Cost of coal. Home Foreign Aggregate Commis. to Where sent. tons. cost. coal agent.... 1857. April 5~3 Benjamin Tyson......... Repplier & Brother........... 80 $320 00 [ 100 80.441 84..1 04 Gosport, Va. 24 Do...............................do...................... 157 65~8 00 141 30..... 807 76 38 46 Philadelphia, Pa. 27 Do............................. do.............. 114 456 00 114 00..... 508 50 5~8 50 Gosport. 25 Do...............................do...................... 1514. 606 00 121 20..... 783 56 38 36 Philadelphia. 29 Do...............................do...................... 1814 726 00 145 20..... 914 76 43 56 Do. May 4 Do....... do................... 78 31-2 00 93 60......4..5 88 t0 5~8 Gosport. 4 Do........................do...................... 160 640 00 1528 00.............. 806 40 38 40 Philadelphia. 5 Do................ do...................... 110 440 00 132 00......... 600 60 58 60 Norfolk. 6 Do..............................do..... 130 55~0 00 156 00.............. 70780 3380 Do. 29 Purser of Niagara.............. In England..........5~......... 271 1,314 06.5,314 06.....................a131 June 6 Benjamin Tyson........... Tyler, Stone & Co.. 172 731 00 5~75 50........... 1,056 57 50 31 Boston. July 36 Do..............................do................... 85 340 00 93 50......... 455 17 51 67 Norfolk. 22 Purser of Niagara............England.. 655 5,875 32.....................,875 3... Niagara. 24 Benjamin Tyson..... Del. & Hudson Canal Co., N. Y. 799 4-20 3,516 48..,795 8,487 50 175 82 Rio de Janeiro. 4,~~~ 795 20 9~5 Do................... Tyler, Stone & Co........ 105 45~0 00 115 50..... 562 27 26 77 Norfolk. 5~5 Do............................do..................... 100 400 00 110 00.............. 55 50 5 50 Do. 25 Do..........epplier & Brother.. 419 1,676 00 712 30... 5, 507 7I 119 42 Boston. q 30 Do............. Tyler, Stone & Co......... 95 380 00 104 5O......... 508 73 05~4 5~3 Norfolk. tAug. 1 Purser of Niagara..........England............. 55 5~6 5~0......5~........ 66 5~0... "11Niagara."I 17 Benjamin Tyson............... Repplier & Brother.. 236 944 00 413 00... 1,454 85 67 85 Boston. 32 Do.................... Tyler, Stone & Co............. 140 560 00 154 00 749 70 35 70 Norfolk. 5~5~ Do................... do.... 1C 4,675 00....... 12,1 17,008 75 33 75 Panama. Ps5 Do........... do,.. 615~ 2,601 00.... 6,150 00 8,851 05 130 05 Valparaiso. 5~6 Do.............................. do..................... 386 1,678 10.......................... 1,679 10 83 95 Saranac. Sept. 1~ Do............... Repplier & Brother.......3...... 30 1,353 00 495 00.............. 1,940 40 92 40 Boston. 29 Do...................... Tyler, Stone & Co.. 205 10157 40........... 1,593 80 ~2,559 07 507 87 Hong Kong. 5~9 Do............. Itepplier & Brother....... 310 1,571 00 387 50..... 1,741 43 82~ 92~ Boston. Oct. 2 Do...................... Tyler, Stone & Co.............. 40 196-5~40 174 34 183.05.8............. 183 00 1 71 Saranac. 2 5 Do......................... do.....................573 2,816 35........,6154 008,593 56 141 81 Shanahai. 1 D~o............................... do...................... 3 8619 5,180 75............ 3,563 50 15191 79 5~1 Do~~~~~~~~~~~~~~~~~~~~~~~~do 1 ~~~~~~~~~~~~~~~19, 752~ 00 5~903C-l 5~9 Do............................. do...................... 85~5 3,506 25~5..........., *,320 12 11,931 56 175I31 Cape of Good Hope. 8,~ 350 00S 31 Purser of Niagara..........England............. ~93 1,5~18 88............ 1,5~18 88..........."16Niagara."~ Nov. 4 Do............ England............. 187 751 71..............751 71......,.Do. 5 Benjamin o...............Tyn. Repplier & Brother............. 530 943 00 402 50.............. 1,415~ 77 67 7 o ton. 6 Do............. Tyler, Stone & Co..... 4 3 6,475~ 75....... 18,5~76 00 5~5,075~ 38 323 63 Hong Kong. 10 Do.............................. do...................... 814 3,459 50............ *2,716 25 13,400 477 B716tos uto. 10,582 00 1 16 Do...do...115 488 75 138 00........ 658 09 31 33 Gosport. 18 Do.............................. do.. 160 689 00 1935~0.............. 915 60 43 60 Do. i8 Do............................ do..................... 0 50 [04 CIO.784.......... 5 7285'45 33 Do. 18 Do.......................... do...................... 105 446 25 126 00.............. 68600 2861 Do. 00 Do............do.......................69 2935 8 80.............. 39485 1880 Do. Dec. 8 Do..............................do...................... 1,786 7,59050.. *1,438.. 30,29502 379 52 Singapore & Hong Kong. 11 Do............................ do...................... 1,071 4,551 75............ 13,387 50 18,166 34 227 58 Hong Kong. 19 Do................................ do.1,32 5,61850....................., 59 00 28092 Panama. 2 213,020 00 19, 42 23 Do........................... do...do.. 624 2,402 40 75881............ 3,319 6 158 06 Booklyn. 24 Do.............................do...................... 37 1,007 25 331 80.............. 1,339 05 66 95 Norfolk. 31 Purserof Wabash............. Home Squadron............... 150,250 00.......................... 2,250 00........... Wabash." 4,397 63 Deduct for coal short... 40 94 4,356 69 1858.. _____ _____ Jan. 23 Benjamin Tyson............... Tyler, Stone & Co............. 335 1,289 35 418 75............. 1,793 92 85 42 Brooklyn. 28 Do.............................do...................... 264 1,016 40 330 00.............. 1413 72 67 3-3 Do. 30 Do..............................do..... 258 1,09650 32050.............. 1.49875 7095 Gosport. Feb. I Do...........................do...................... 170 722 50 212 50..981 75 46 75 Do. 2 Do.......... do...................... 136 578 CO 170 00..78540 3740 Do. 4 Do... do................... 226 960 50 28250.............. 130515 6215 Do. 6 Do... do................... 193 743 05 234125..............1,03350 4921 Brooklyn. 0 10 Do... do............ 315 1,338 75 1,10250............ 256331 12 06 Key West. 13 Do...........................-..do...................... 316 1,343 00 1,106 00.............. 2,571 45 122 45 Do. Mar. 20 Do..................do..... T r do..................... 151 64175 45300.............. 1,14948 5473 Do. 23 Do........................... do.............d........ 367 1,55975 1,10100.............. 2,79378 13303 Pensacola. 24 Do... do...............8.... 1,194 25 84300.............. 213911 10186 KeyWest. 26 Do.......... do...................... 272 1,047'20 258 40.........1,370 88 65 28 Brooklyn. 27 Do.........'................... do.............d......... 300 1,155 00 285 00.......... 1,51200 7200 Do. 27 Do............................do..................... 375 1,593 75 1,12500.............. 2,854 69 135 94 Pensacola. Do ~~~~............do.................... do 2t2.............. 0 29 Do............ do...................... 1,304 75 921 00.............. 2,33704 111 27 KeyWest. 30 Do..............................do..................... 226 870 10 214 70.............. 1,139 04 54 24 Brooklyn. May 4 Do..............................do...................... 380 1,463 00 1,045 00.............. 2,633 40 125 40 Pensacola. June 7 Do............................. do.............d......... 300 1,155 00 825 00...... 2,07900 9900 Do. May 29 C. H. Hunter......................... do...................... 73 281 05 219 00.............. 525 05 25 00 Key West. 31 Do....................... do...................... 61 234 85 18300.............. 43874 2089 Do. June 3 Do........'................. do..................... 370 1,424 50 1,110 00..............,661 23 12673 Do. 23 Do...........................do...................... 428 1,647 80 1,284 00...... 3,078 39 146 59 Do. July 15 Do............................do...................... 455 1,751 75 1,365 00............ 3,272 59 155 84 Do. 21 Do..............do.................... 400 1,540 00,20............,877 00 137 00 Pensacola. 26 Do..........................do...................... 300 1,155 00'210 00............ 1,433 25 68 25 Brooklyn. 27 Do..........do...................... 396 1,524 60 1,188 00............. 2,848 23 135 63 Key West. 27 Do..........................do........... 129 496 65 387 00.............. 927 83 44 18 Warrington, Fla. 31 Do............ do........... 367 1,412 95 1,192 75............. 2,735 99 130 29 Key West. 31 Do..'........'............do...................... 155 596 75 147 25.............. 781 20 37 20 Gosport. Aug. 4 Do........................do...................... 207 796 95 16560.............. 1,010 68 48 13 Washington. 6 Do..........................do...................... 170 654 50 11900.............. 812 18 38 68 Brooklyn. 24 Do........................do..................... 471 1,813 35 329 70 5,65200 7,795 05 107 15 Rosario, S. A. 04 Do..... do.................... 300 1,155 00 420 00.............. 1,653 76 78 76 Portsmouth, N. H. 25 Do....... 1. ".. 1........do...................... 451 1,736 35 315 70 5,412 00 7,464 05 102 6C Rosario. * Expenses of landing. STATEMENT-Continued. Date. By whom purchased. From whom purchased. Number of Cost of coal. Home Foreign Aggregate Commis. to Where sent. tons. freight. freight. cost. coal agents. 1858. Aug. 25 C.H. Hunter.......Tyler, Stone & Co............. 750 $2,887 50 $525 00 6,000 00 $9,412 50 $170 63 St. Catharines, Brazil. 26 Do...................... 00........do..................... 195 750 75 16088.............. 95721 4558 Washington. 27 Do..............................do............... 397 1,528 45 297 75 4 3,^ 1-0}6,518 63 91 31 Pernambuco. 27 Do.............................. do...................... 353 1 31,359 05 264 75 3,177 00 5,983 84 81 19 Do. 208 Do............................. do...................... 139 535 15 132 05.............. 756 00 33 36 Norfolk. 31 Do.............................. do................... 175 673 75 131 25........... 845 25 40 25 Brooklyn. Sept. 4 Do.............................. do...................... 319 1,228 15 303 05.............. 1,607 76 76 56 Norfolk. 8 Do'............................ do..................... 675 2,598 75..... 4,725 00 7,323 75 129 94 Rio de Janeiro. 8 Do......................do...................... 645 2, 479 40 48300.............. 3,11052 148 12 Brooklyn. 13 Do.'.'......................... do...................... 376 1,447 60 507 60.............. 2,052 96 97 76 Portsmouth, N. H. 13 Do............................. do......2............... 2320 893 20 92 56.............. 1,140 05 54 29 Washington. 17 Do50.200....do...................... 96250 20000..............,220 63 58 13 Norfolk. 2 Do..do.69 650 65 126 75............. 816 27 38 87 Brooklyn. 22 Do.............................do...................... 346 1,332 10............ 4.152 00 5,484 16 66 61 Rosario. 23 Do..............................do...................... 300 1,155 00............ *. 1662 3, 012 75 57 75 Barbadoes. 24 Do.........................do...................... 400 1,5400............ 2400 00 4,017 00 77 00 Do. 25 Do......00.......do..................... 331 1,274 35......... 1,986 00 3,324 07 63 72 Do. z Oct. I Do..............................do...................... 271 1,063 35 23035..........5. 1,337 39 63 69 Norfolk. 5 Do..............................do..................... 311 1,197 35............ 2,48800 3,745 22 59 87 Pernambuco. 7 Do.......................do..................... 186 716 10 139 50.............. 898 38 42 78 Brooklyn. 8 Do........................... do...................... 176 677 60 13200............. 850 08 40 48 Do. 12 Do..............................do...................... 880 3,388 00............ 257 98 11,735 38 169 40 St. Catharine's. 12 Do....................... do...................... 602 2.317 70............ 7224 00 9,657 59 115 88 Rosario. 13 Do...........................do...................... 261 1,00185............ 1,305 00 2,360 09 50 24 Barbadoes. 13 Do...........................do...................... 161 619 85 128 80.............. 786 08 37 43 Brooklyn. 14 Do....................do...................... 367 1,412 95............ 1,83500 3,318 60 70 65 Barhadoes. 14 Do.........................do...................... 337 1,297 45 438 10............. 1,822 33 86 76 Boston. 15 Do'............do...... 246 947 10 209 10........... 1,214 01 57 81 Norfolk. 16 Do.........................do...................... 207 796 95 175 95..... 1,021 55 48 65 Do. 18 Do......'..............do...................... 143 55055 12155.............. 70571 3361 Do. 18 Do..........do..................... 170 654 50 136 00.............. 830 03 39 53 Brooklyn. 22 Do.............. do...................... 450 1,771 00..5,06000 6,919 55 88 55 Rtosario. 27 Do.'......... do...................... 662 2,548 70........... 5,296 00 7,97 14 10744 Pernambuco. S0 Do... 0. do...................... 688 2,648 80........... 6,192 00 8,973 24 132 44 Cape Town. 30 Do.................... do...................... 300 1,155 00 300 00.... 1,527 75 2 75 Norfolk. Nov. i Do.... do...................... 320 1,232 00 560 00..... 1,881 60 89 60 Boston. 2 Do1........". "..'.'..... do............. 175 673 75 148 75.... 863 63 41 13 Brooklyn. Do......do.............. 171 65835 14535. 84382 4018 Do. 3 Do........'.................do...................... 250 962 50 437 50.1,470 00 70 00 Boston. 9 Do.............................~do-'~.................... 375 1,443 75 1,03125.............., 598 75 123 75 Warrhlg ton. Q12 Do 0....... 380 1463 00............ 4,180 00 5,716 15 73 15 Rosario. 1 6 Do'.............................. do...................... 385 1,482 25............ 4,235 00 5,791 36 74 11 Do. 19 Do.............................. do..................... 292 1,124 20......... 2336 00 3,516 41 56 21 Perna mbuco. 25 Do.............................. do...................... 72.5 2,791 25..... 7 975 00 10.985 81 139 56 Rosario. 26 Do................................do...................... 1,010 3,888 50 858 50 10,100 00 155,084 35 237 35 St. Catharines. 26 Do.............................. do...................... 452 1,740 25............ 3,616 00 5,443 21 87 01 Pernambuco. ec I Do............................do...................... 435 1,674 75 1,196 25............. 3,014 55 143 55 Warrington. 2S Do.......................do..............I........100 385 00..................... 404 25 19 25 Phila., for Chapin. 2 Do —......................... do.................. 167 642 95 45925.............. 1,157 31 55 11 Warrington. 4 Do..........*..,*..............do..................... 400 1,540 00............ 4,40000 6,017 00 77 00 Rosario. 0 Do...........................do.......... 795 3,060 72............ 3,975 00 7,188 78 153 03 Barbadoes. 16! Do..............................do...................... 1,585 6,102 25......... 15,850 00 22,257 36 305 11 Shanghai. 17 Do............................. 312 1,201 20............ 1,716 00 2,977 26 60 06 Aspinwall. 22! Do.....do...................... 340 1 30900............ 1,870 00 3,244 45 65 45 Do. 24 Do..............................do..................... 751 2, 89135........ 6,759 00 9,794 91 144 56 St. Catharine's. * Expenses of landing. N. B.-Cost of stowage of coal not included In this statement. Statement of amount for construdion, repair, equipment, and fuel for steamers, and purchase of hemp for the navy, S., from July 1, 1841, to January 1, 1859, as shown ^ by the reports of the Second Comptroller of the Treasury. ~^^~~0 I.. 0 00. -. 1. ^ Years. ~ 1841-'42.................... $2,803, 820 70 e373,771 74 $33,750 O0.............. ~ $91 424 1842- 43.................................. 9, 3, 3 41 1843-144.................... 1,398 43658 86,977 43 36,786 39...........'................................................................... 0 4 1844-'45..................... 1,222,37854.............. 845 I 18,7538-2 5 68....... ~~ ~.... 1845 46................... 387.............. 1 45738,4879. 53 0 82 83 41 9............................... 1846-^47..................... 11567,371 85.............. 1,2-26 80............................................................................. ] 5,8 59 8 605 1847-'48................... 31067,779 01.......................................................................................................... 3; 61 779^ 0 188I 4.~;^ O'. ^.................. 3,63 80 35........................... 3),4 90 1 1977............................................ 1,0897, 304 12 1849U-'50..................... 1,086 2053774.........................................A k 1850^ 1 9 ^ d lQ.................................... 44.......................... 1,687,206 442...................... 44 185125 9 0.................................................................................. 2,354,052 93 1852~ 15.^J...i..~..~...,.~.... 2,724 03 97J..~~~.~~.~.....,.................................~.........~.,,,......,... 2'724/ 036 97y ^ 1853-?54............ 2 n71 99 84............................ I..................................................................... d^ /484 o ) 1804050. ~~~~~.................... 1138 48 6,450 11..... 5731 50 30/8 463 87 1855 " """"56........... 3156 53 4............................ 136,186 52........... 1719,146 96......................... 7,362 13 5,019,289 09 185-1'-57-'~~........... 1153 12............................ 119,206 31.............. 1,466,000 04......................... 11329 90 4.701,887 53 c.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~19130 50- 185 5..o-................... 3129,427 8.................................. 348,90241 $47 9 56........ 3 0 0 To January, 1859............. 1788 39 5.................................................48 41 573::52 90 $314,550~97.......... 1, 06 41,804,15915 489,25482 1022003 4516296 101,13977 5707,88255 1045,74346 31455097 148,73491 50,165,03889. 18452-'4395,1 98..8,515.65.29,018...993,353 1369 ~~~~43-'44.5 398 436 58,.I~::":::::::::::::::::::::::::::::::::::::. 9,2,069 154-~4,, 8,7 3 36786 3)9.84,2,204...............,...78.54.. 845.11 $1,753115868504 6 ~..,.....................,44756 5845-46'5.18384.......2. 797.444 9i::~:::/::.57350J"' ~83098'.~ 83...... 1 964501,3...............14,4 884967,,800,67251 1845-4. 1567,7 8.1268..... 1,911,.....350:59 50........ 1856-'47...........3,067,779 01......., 1,067,7 01........ 5849-'5~~~~~~~~~~~~~~~~~~~~~~~,1460004............1,86,0 52...... 13- 9 9 04.7.1,687,906 5 1857-'51.. 2,080,377..44.2..080,377944t.2 1852-'53~~~~6:::::::::::::::::::::1::.........]389,721 4,',3036 97..............2,724,036950,9706 To85nuay-'59............ 3,1535..11,03..16,00... 1,39.0.,70,875'JoJanary 189. 1,739,6i8839..........114,548 41 573,352 90 $314,550 97. 2,742,140..67 41,84,15 35 489,214 82 102,200 30 451,362 96 301, 139 77 ]5,707,882 55 1,045,743 46 314,550 97 14,391 5,6,089 COAL AGENCY. 47 The undersigned, members of the senate and house of Berks county, in the State legislature, beg leave to recommend Dr. Charles H. Hunter, of said county, for the agency to supply the government with anthracite coal, now held by Benjamin Tyson. Doctor Hunter is a sound, active, and influential democrat, of undoubted integrity, and in every respect fully competent to discharge the duties of the office. We earnestly request this appointment as one due to the applicant, and as one which will prove highly gratifying to the democracy of this county. JOHN 0. EVANS. J. LAWRENCE GETZ. W. WM. HEINS. B. NUNEINACHER. MICHAEL HOFFMAN. Hon. ISAAC TOUCEY, Secretary of the Navy. NAVY DEPARTMENT, February 19, 1859. I certify that the foregoing is a true copy of the original on file in this department. JNO WChief CleOGG Acting Ohief Clerk, 4 8 COAL AGENCY. The undersigned beg leave to recommend Doctor Charles H. Hunter, of Berks county, for the agency to supply the government with anthracite coal, now held by Benjamin Tyson. Doctor Hunter is a sound, active, and influential'democrat, of undoubted integrity, and in every respect fully competent to discharge the duties of the office. We earnestly request this appointment as one due to the applicant, and as one which will prove highly gratifying to the democracy of this county. WM. M. HIESTER. CHARLES KESSLER. JOHN S. SCROEDER. JACOB K. McKENTY. GEO. D. STITZEL. JOS. RITTER. MICH. P. BOYER. LEVI WUNDER. EDWARD M. CLYMER. SAMUEL L. YOUNG. FREDK. LAUER. J. B. WARNER. DANIEL BUSKIRK. DANIEL POTTIEGER. H. S. GETZ. J. HAGGENMAN. A. JORDAN SWARTZ. HIETTER CLYMER. A. LIEZE. GEORGE W. BRUCKMAN. Hon. ISAAC TOUCEY, Secretary of the Navy. NAVY DEPARTMENT, February 19, 1859. I certify that the foregoing is a true copy of the original on file in this department. JNO. W. HOGG, Acting Chief Clerk. COAL AGENCY. 49 ANTHRACITE COAL AGENCY AT PHILADELPHIA. No. 26.-CHARLES H. HUNTER, READING, PENNSYLVANIA. FEBRUARY 2, 1859. CHARLES H. HUNTER called and examined. By the Chairman: Question. What is your occupation? Answer. That of a physician. Question. Where do you reside? Answer. At Reading, Pennsylvania. Question. What office or employment, if any, do you hold under the governm ent of the United States? Answer. I hold the agency for the purchase of anthracite coal. Question. Are you the only party interested in that coal agency? Answer. I am the only party recognized by the government. Question. Who is associated with you in the matter? Answer. Mr. John F. Smith. Question. Where does he reside? Answer. In Philadelphia. Question. Is he the only person associated with you? Answer. Yes, sir. Question. Why is he associated with you? Answer. That I really do not know how I can tell you. The arrangement is a private one between Mr. Smith and myself. Question. Has Mr. Getz anything to do directly or indirectly with this coal agency? Answer. He has not. Question. Does he receive any portion of the profits of the office? Answer. No, sir. Question. Is there any arrangement between you and Mr. Getz in regard to a division of the profits? Answer. No, sir. Question. Do you contribute to Mr. Getz any particular sum of money? Answer. I do not. Question. What is his employment? Answer. He is the editor of a paper published at Reading, Pennsylvania. Question. A democratic paper? Answer. Yes, sir. Question. Do you not pay him anything? Answer. No, sir, nothing. Question. What other parties are interested in this private ar rangement between you and Mr. Smith? Answer. Not one. 4 A 50 COAL AGENCY. Question. Is this private arrangement understood and known by the government? Answer. No, sir; not to my knowledge. Question. Upon whose recommendation were you appointed coal agent? Answer. There were a number of gentlemen gave me their personal recommendations; but I suppose I received it more through the influence of the Hon. J. Glancy Jones. Question. He favored your appointment? Answer. Yes, sir. Question. Had you any experience in the purchase of coal previous to your appointmnt? Answer. I had not. Question. Have you since had any active agency in the purchase of coal? Answer. The orders are issued to me. Question. Do you purchase the coal yourself? Answer. I direct the purchase of it. Question. Is the fact of your not being connected with the coal business known to the department? Answer. I cannot tell. Question. When the orders are received what do you do with them? Answer. I direct the parties to purchase the coal for the government. Question. What is Mr. Smith's functions in this arrangement? Answer. He attends to the selecting of the coal through my direction? Question. What is the arrangement between you and Mr. Smith? Answer. In regard to what? Question. In regard to anything connected with this agency. Answer. He receives a part of the commissions. Question. What part? Answer. One-half. Question. Have you communicated this fact to the government? Answer. No, sir. Question. Is it known to the department? Answer. I cannot tell you, sir. Question. Is it known to any officer of the government? Answer. Not that I am aware of. Question. Where does this Mr. Smith reside? Answer. In Philadelphia. Question. What business is he in there now? Answer. I really cannot tell you what business he is in now; he formerly was in the omnibus business. Question. How came you and Mr. Smith to make this arrangement? Answer. Through our friends. Question. What friends? Answer. That I cannot tell you. Question. Who first suggested the idea which led to the consummation of this arrangement? COAL AGENCY. 51 Answer. When the commission was made out to me, it was brought to Reading by some of my friends who were on here at the time. Question. What friends? Answer. It seems to me that Mr. Smith's brother was here, and that a Mr. Kearnes was here. Question. Who else? Answer. I was not in Washington myself at the time, but it seems to me that there were gentlemen here from Reading at the time. Question. Who brought on the commission? Answer. Mr. Smith. Question. Which Mr. Smith? Answer. The one that lives in Philadelphia; his brother, Mr. George Smith, of Reading, was on here at the time, but Mr. John F. Smith, of Philadelphia, brought on the commission to me. Question. Did he deliver to you your commission? Answer. Yes, sir. Question. From whom did he receive it? Answer. That I cannot tell. Question. From whom did the commission emanate? Answer. From the Secretary of the Navy. Question. This is a personal appointment of the Secretary of the Navy? Answer. Yes, sir. Question. Did Mr. Smith tell you that he had been authorized the Secretary of the Navy to deliver this commission to you? Answer. No, sir. Question. What did he say about it? Answer. I really do not recollect what passed between us; but my friends, who came on to Reading before Mr. Smith delivered to me the commission of appointment, said that a commission had been made out, and they would have brought it; I think Mr. Kearnes said that, but that it was.afterwards agreed that Mr. Smith should bring it on. Question. Did you understand that it was arranged at Washington that Mr. Smith should bring the commission on to you? Answer. That was my understanding of the matter. Question. Had you any previous acquaintance with Mr. Smith? Answer. He formerly lived at Reading. I have known him perhaps twenty years. Question. Had there been any degree of intimacy between you and him for several years? Answer. We knew each other, but I cannot say we were intimate. Question. What did Mr. Smith say to you when he handed you the commission? Answer. I cannot recollect. Question. Did he say that it was understood that you were to enter into arrangement with him in regard to the profits of this office? Answer. My friends had reported that to me before Mr. Smith came on, and I take it for granted that Mr. Smith said the same thing. 52 COAL AGENCY. Question. Did he tell you that it was understood that the arrangement was to be made between you and him? Answer. Yes, sir. Question. Did he tell you what the arrangement was to be? Answer. It seems to me that there was no definite agreement, but that arrangement, whatever it might be, was between me and himself? Question. Did he propose an arrangement? Answer. The arrangement was prepared and made between friends here. Question. Now, I want to get at this matter. Was there not a dispute between you and Mr. Smith in regard to this matter, and with Mr. Getz? And was it not a part of the original arrangement that Mr. Getz was to have a portion of this money? Answer. Yes, sir, it was. Question. Why did he not get it? Answer. Mr. Getz withdrew. Question. What were his reasons for withdrawing? Answer. That I cannot tell. I heard a rumor before I heard anything from Mr. Getz himself, and Mr. Getz subsequently told me that bhis intention was to withdraw. Question. Did he not complain to you that the share allotted to him was too small? Answer. Not that I can recollect. Question. Were there any other parties in this arrangement at first? Answer. No one else. Question. Mr. Smith, Mr. Getz, and yourself were the parties? Answer. Yes, sir. Question. What proportion did Mr. Smith first claim when you were negotiating this arrangement? Answer. There was no negotiation in regard to it. When I received this appointment my friends, who notified me of the fact that I was appointed, said that the understanding was that Mr. Getz, and Mr. Smith, and myself were to have the emoluments. Question. Who were these friends. Answer. Mr. Kearnes, Mr. George Smith, and it seems to me that Mr. Getz was one of the first men who communicated this fact to me. Question. Did you enter into any written stipulation with Mr. Smith? Answer. No, sir. Question. It stands merely upon open agreement between you? Answer. Yes, sir, merely a verbal agreement. Question. What are the profits of that agency per year? Answer. I have not held it a year. Question. What is the per centage allowed to the purchaser? Answer. Five per cent. Question. Upon what basis? the cost at Philadelphia? Answer. The cost of the coal shipped to various points in the country. On foreign shipments the government charters the vessels. COAL AGENCY. 53 Question. Have you your commission or letter of instructions with you? Answer. I have not. Question. What is the purport of it? Answer. The language, so far as I recollect it, is this:' Authorized to purchase the anthracite coal for the United States navy, upon which you are to receive five per cent. commission upon the cost of the coal and freight." I think that is the purport of it; I am satisfied it is. Question. When was you appointed? Answer. In May last. Question. How much have you received in the aggregate for your compensation for the first six months of your appointment? Answer. That I cannot tell you, sir. Question. State it as near as you can. Answer. I can best come at it in this way: the quarters end upon the 1st of July, the 1st of October, and the 1st of January. Question. Give us one quarter, then. Answer. The quarter for October, November, and December, came to $3,400. Question. Iow much did you receive for the quarter ending October 1st? Answer. I think it was something like $4,000. Question. Does that include all, or only your share? Answer. That includes the whole; everything, sir. Question. Have you made a division with Mr. Smith, so far as you have gone? Answer. I have. Question. From whom does the money come to you for your per centage? Answer. There is a warrant issued by the Navy Department to the navy agent at Philadelphia. Question. Who makes this division between you and Mr. Smith? Answer. I draw the money. I receive the draft and send Mr. Smith his share. All the orders are issued to me. Question. Before we come to that, I want to know who were the parties in Washington to this arrangement, as you have learned from Mr. Getz or Smith. Who were the parties to this arrangement at the time you were appointed, and who were present when this arrangement was entered into? Answer. That I could not tell, sir. Question. Were you not told by the parties that the Secretary of the Navy had assented to this arrangement? Answer. No, sir. So far as I am aware, he knows nothing of it. Question. Did you know that Mr. Jones assented to it or knew it? Answer. I cannot tell you; but I took it for granted that Mr. Jones was with these gentlemen. Question. Did these gentlemen say to you that Mr. Jones wts a party to it? Answer. No, sir. 54 COAL AGENCY. Question. Did they tell you that he knew anything about it? Answer. No, sir. Question. Was Mr. Jones in Washington at the time? Answer. He was. Question. Did he go with them to secure this appointment? Answer. That I cannot tell. Question. Did he return with those men? Answer. No, sir. Question. What other person was mentioned by them as being present at the arrangement? Answer. No one that I recollect, excepting the gentlemen I have named. Question. Now let us return to the course of business. When a purchase is to be made, a requisition is sent to you. What do you do with that requisition? Answer. I send it to the party of whom I want to purchase, and also notify Mr. Smith. Question. What party is that? Answer. I have sent to Tyler, Stone & Co. Question. Do you not make all the purchases of coal of that firm? Answer. I have done so to this time. Question. You send the requisition to them; and what do they do? Answer. If there is a vessel to load, they load the vessel according to my directions. Question. You do not go to Philadelphia to supervise it? Answer. I have an arrangement with Mr. Smith to see that the shipments are properly made. Question. Do you go to Philadelphia yourself to see to it? Answer. I go occasionally. Question. How often? Answer. I really cannot tell. Question. Once a month? Answer. I take it for granted that it is as often as that. Question. Do you continue to practice as a physician? Answer. I do. Question. How far is Reading from Philadelphia? Answer. Fifty-two miles. Question. How far is Reading from the coal region?j Answer. Thirty-six miles. Question. Do you go to the coal region? Answer. I have been up there. Question. In regard to this particular business? Answer. No, sir. Question. I will ask you whether you do anything excepting simply to sign formal papers which it is necessary for the coal agent to sign? Answer. I see that a proper article of coal is furnished. Question. Do you inspect the coal? Answer. I do not myself; I get Mr. Smith to do it. Question. Do you know that Mr. Smith is qualified for this? Answer. I have reliance in him. COAL AGENCY. 55 Question. Do you know whether he was ever engaged in that business? Answer. That I cannot tell you, sir. Question. Do you know whether he can distinguish the qualities of coal? There is a great difference in it. Answer. I do not know of my own knowledge. Question. Did anything induce you to appoint Mr. Smith to do this excepting this previous arrangement? Answer. That was the reason. Question. Why did you purchase this coal of Tyler, Stone & Co.? Answer. They had furnished the coal to the previous agent, and I had such information as convinced me that they had furnished the coal satisfactorily. I had no other reason. Question. Did you know of any relationship between either of these gentlemen and the Secretary of the Navy? Answer. I was told that there was. Question. Which member of the firm? Answer r. Mr. Beach. Question. Did you know that Mr. Tyler also was a relative by marriage? Answer. I did not. Question. Did you so understand? Answer. I do not know that I had ever heard of it. Question. Do you know them? Answer. I know Mr. Tyler and Mr. Beach. Question. In what business are they engaged? Answer. The coal business. Question. Where? Answer. In Philadelphia. Question. How long have they been engaged in it? Answer. I cannot tell you, sir. Question. Where did you first see them? Answer. I met Mr. Beach at Reading the first time. Question. Was that after your appointment? Answer. He came to Reading, but whether he came up expressly to see me or not, I do not know. Question. Is Mr. Smith engaged in the coal business? Answer. Not that I know of, sir. Question. Who fixes the price of this coal? Did you agree with Tyler, Stone & Co. as to the price? Answer. Yes, sir. Question. Well, what is the price? Answer. At Philadelphia, $3 85. Question. When did you fix that price? Answer. Soon after my appointment. Question. Upon what basis? Answer. At the same rate that the coal had been purchased by the former agent. Question. Did you take any pains to examine whether coal could be furnished more cheaply or not? 56 COAL AGENCY. Answer. I do not know that I did. Question. Did you invite proposals or offers from coal dealers? Answer. No, sir. Question. Did you go to see any other coal dealers? Answer. A number of them made applications. Question. Were their applications acceded to? Answer. They did not state any price at all. Question. Did you tell them that the matter was open to a proper bid? Answer. I did not. Question. Did you tell them that you had contracted with Tyler, Stone & Co.? Answer. I did not. Question. Did you communicate to them the price at which the coal was to be furnished to the government? Answer. I do not know that I did, sir. Question. Have you ever had any correspondence with the Secretary of the Navy in regard to this subject? Answer. No, sir. Question. Has he ever written to you since your appointment? Answer. He has not. Question. Have you ever received a letter from the department? Answer. Yes, sir; relating to the manner in which the business should be transacted; a letter of instructions. Question. Have you those instructions with you? Answer. I have not. Question. Did they not require you to attend and examine in person the delivery of coal? Answer. No, sir. Question. Did they give you directions of this kind to furnish the best article for the purpose for which it was intended without fixing the price? Answer. Yes, sir. Question. Did any other circumstances induce you to make your purchases of Tyler, Stone & Co., than the fact that they had previously furnished to the former agent? Answer. No, sir. Question. Did you not understand from Mr. Smith or Mr. Getz that it was the desire of certain parties in Washington that they should furnish the coal? Answer. No, sir. Question. Did you not have such a conversation with them? Answer. I did not. Question. Did not Mr. Smith inform you that such was the wish? Answer. He did not. Question. Did not Mr. Getz? Answer. No, sir. Question. Was not that understood by you at the time? Answer. It was not. COAL AGENCYo 57 Question. Was there no information of that kind communicated to you? Answer. None. Question. Why then did you not seek to find out the lowest responsible bidder, for the purchase of this coal? Answer. I felt that the government had been furnished by these men with a proper article, and that if the government were satisfied with the article furnished, there was no reason to change. Question. Did you not understand that it was your business, as agent for the government, to procure the coal upon the most favorable terms for the government? Answer. I conceive that these agents furnish the coal upon as favorable terms as the best coal can be furnished. Question. You do not state that upon your own inspection of the coal? Answer. I base it upon the fact that there is no information from the department that the coal fails to answer the purpose for which it is intended to be used. Question. There have been no complaints by the government? Answer. No, sir; I felt satisfied that the coal furnished was furnished of the quality represented, and at the market rates. Question. Did you make any efforts to ascertain that? AnsTwer. I did not. Question. Did you communicate this fact to the applicants for furnishing coal to the government? Answer. I did not. I felt that the coal had been furnished by the agents previous to my appointment in a manner satisfactory to the department, and felt fully warranted by that to continue this arrangement. Question. When did Tyler, Stone & Co. commence furnishing the government with coal? Answer. I cannot tell you, sir. Question. Was it not since March 1, 1857? Answer. I am not aware. Question. Do you not know the fact from them, or from Mr. Smith? Answer. I know that they furnished coal to the former agent. Question. Do you not know that they only commenced fuirnishing coal to the government after March 4, 1857? Answer. No, sir. Question. Do you not know that they only furnished a portion of thile coal from March 4, 1857, up to the time of your appointment? Answer. No, sir. Question. Did you not know that other parties furnished coal as well as Tyler, Stone & Co., up to the time of your appointment? Have you not heard it from other parties? Answer. I do not know that I have, sir. Question. Did you ever make inquiries as to the fact? Answer. No, sir. Question. Are you connected in any way with the Reading forge? Answer. I am not. I unfortunately held some stock there. 58 COAL AGENCY. Question. You are a democrat in politics, I suppose? Answer. I am. By Mr. Ritchie: Question. Are you in the habit of observing the market price of coal in Philadelphia? Answer. I can get the market values. Question. Are you in the habit of doing this? Answer. No, sir. Question. Do you know what has been the market price of coal in Philadelphia during the last year? Answer. I have been satisfied that the coal furnished to the government has been furnished at the market rates. Question. I merely wanted to know the reason of your being satisfied. Answer. The department made no complaints. Question. Are you in the habit of observing the quality of coal delivered at that rate on board ships? Answer. No, sir; Mr. Smith attends to that. By the Chairman: Question. Who inspects this coal when delivered to the government? Answer. I cannot tell. Question. You never looked to that? Answer. No, sir. Question. Do you know whether it is inspected at all, or not? Answer. It is delivered at various yards and docks in the country. I take it for granted it is weighed in fact, I have received returns. On one or two occasions I was notified that a certain cargo was one or two tons short; on other occasions I have been notified that a cargo has been several tons over weight. By Mr. Ritchie: Question. Who gave you that notice? Answer. The commandants of the navy yard where the coal was delivered. By the Chairman: Question. A part of your duty is to contract for the transportation of this coal to the navy yards of the United States wherever it is needed? Answer. Yes, sir. Question. Who makes these contracts with the vessels? Answer. Orders are issued by the department, limiting the freight to a certain amount, for the points where I am to deliver. Question. Who makes the contracts with the vessels for the freight? Answer. Tyler, Stone & Co. Question. They act as your agents? Answer. Yes, sir; but the department has invariably restricted the freights; they prescribe the maximum. Question. Does the department know that you get Tyler, Stone & Co., to charter those vessels? Answer. Not that I am aware of, sir. Question. Do you communicate to them the order of the department? Answer. Yes, sir. COAL AGENCY. 59 Question. Do you send off the same paper to Tyler, Stone & Co., that you have received from the department? Answer. No, sir; I write them that I have an order to ship a certain amount of coal to a certain point, and that the freight is to be within a certain amount. Question. Do not they always charge that amount? Answer. The freight is sometimes made specific; at other points it is limited, say between 2? and 21; and where the limit has been put, the freight is sometimes at the lowest figure; and, again, they have notified me that they could not get vessels for a length of time. Question. Are they forwarders? Do they deal in ships? Answer. Not that I am aware of, sir. Question. They ship coal; is that a part of their business? Answer. Yes, sir. Question. Do you see no impropriety in getting the same man who delivers the coal to ship the coal? Do you think that is right? Answer. I do not see anything wrong in it, sir. Question. What induced you to employ Tyler, Stone & Co. to ship the coal? Answer. The reason was that they had done so previously. Question. Do you employ any other firm in the transportation of the coal for the government? Answer. I do not. Question. There was no other reason that induced you to employ those gentlemen to ship the coal? Answer. No, sir. Question. Do they make returns to you of the amount shipped? Answer. Yes, sir; they make returns. Question. You forward the returns they make to you to Washington, do you? Answer. Yes, sir. Question. To whom do you address your letters? Answer. To the chief of the Bureau of Construction, and to the chief of the Bureau of Yards and Docks. Question. Mr. Lenthall and Commodore Smith? Answer. Yes, sir. Question. Do you have any correspondence with, or address any communications to the Secretary of the Navy? Answer. No, sir. Question. From whom do you receive those letters fixing the maximum rate? Answer. From Mr. Lenthall. Question. Do you know the basis upon which that decision is made? Answer. No, sir. Question. Do you ever inquire whether it is too high or too low? Answer. I do not; I will say that I am told they are at the lowest figure; I have been told so a number of times. Question. What particular use is there in your office? Answer. To purchase coal for the Navy Department. Question. Will you state any particular use there is in the offioe 60 COAL AGENCY. you hold, if you know of any? [A pause.] I will ask you this question: Could not the money paid you and Mr. Smith be saved to the government, and the correspondence be made directly between the department and Tyler, Stone & Co.? [A short pause.] If there is any explanation you want to give or reason you want to give to continue the place you are at perfect liberty to give it. Answer. I don't know really what answer to make to your question, sir. Question. It is for you to say; to answer it if you desire; if you can give any reason to give it; if not(No reply.) By Mr. Groesbeck: Question. How long has that office been established? Answer. I cannot tell you, sir, but I know it was in existence daring Mr. Fillmore's administration. Question. Do you know the rates of compensation then? Answer. I do not, sir. Question. Do you know whether any change has been made in the rate of compensation to the agent? Answer. There has not been in the last two terms; that is, in the term previous to mine and in mine, because I had a conversation with the last agent, and his commission read like mine. Question. You knew of this office as early as the administration of Mr. Fillmore? Answer. Yes, sir. Question. I will ask you, doctor, whether you were not under obligations, at the time your commission was delivered to you, to take in Mr. Smith into that arrangement? Answer. No, sir; excepting so far as those friends, who were here at the time the commission was issued, informed me this understanding existed. Question. Are you under any obligation to purchase of Tyler, Stone & Co.? Answer. No, sir; I am not. Question. Are you at liberty to purchase anywhere? Answer. Anywhere I see fit; yes, sir. By Mr. Bocock: Question. Is Mr. Smith a relative of the Secretary of the Navy in any way? Answer. No, sir; he is a son of Judge Smith. Question. Is he related to any member of the firm of Tyler, Stone & Co.? Answer. Not that I am aware of, sir. Question. When you say it was understood in Washington that you were to take Mr. Smith into the arrangement, do you mean that it was understood by the Secretary of the Navy? Answer. No, sir; not to my knowledge. So far as I know, the Secretary of the Navy knew nothing about it. Question. Have you any knowledge, directly or indirectly, that the Secretary of the Navy desires you to give the contracts for coal to Tyler, Stone & Co.? COAL AGENCY. 61 Answer. I have not, sir. Question. You say that you are satisfied that $3 85 is a fair price for coal. What is that understanding of your's founded upon? Answer. Upon the fact that the previous agent purchased it at that rate. Question. Had there been any change in the price of coal? Answer. The coal of the last year has been purchased at a rate, taking the year as a year, cheaper than the year before. Question. Has there been any reduction in the kind of coal which is furnished to the governmenti? Answer. Yes, sir. Question. It has been cheaper last year than the year before? Answer. Yes, sir; at least, I am told so, upon what I conceive to e good authority. Question. Suppose that you, as coal agent, were to give an extravagant price for coal, what corrective would there be? Is there anybody to supervise the price you give for coal? Answer. I take it for granted the department would pursue the same course they did with regard to freights. Question. How much coal do you have to supply the government with in the course of the year? Answer. That I cannot tell you, sir, without stating definitely, within a few hundred tons. I have furnished 30,000 tons. I think it runs several hundred tons beyond that. Question. It is in that neighborhood, according to your best recollection? Answer. It is. By Mr. Groesbeck: Question. Do you necessarily keep yourself posted as to the mar-. ket price for coal? Answer. The price for coal, I am satisfied, has not varied. It has been rather on the increase than decline since I have had the agency. Question. Do you keep yourself advised by the current papers as to the market price for coal? Answer. I keep myself advised, by my intercourse with my friends in the iron business, in regard to the rise and decline of coal. C. H. HUNTER. No. 27.-TESTIMONY OF J. LAWRENCE GETZ, READING, PA. J. LAWRENCE GETZ was sworn and examined. By the Chairman: Question. Where do you reside? Answer. In Reading, Pennsylvania. Question. What is your occupation there? Answer. I am the editor of a newspaper. Question. What is the name of the paper? Answer. The Reading Gazette. Question. Were you in the city of Washington at the time the appointment of Dr. Hunter as coal agent was made? Answer. I was here at the time I understood it was made. 62 COAL AGENCY. Question. Did you join in the recommendation of Dr. Hunter as coal agent? Answer. I did, sir. Question. What others joined in that recommendation? Answer. I was a member of the Pennsylvania legislature at the time, and I saw only a recommendation signed by my colleagues and myself. Question. Do you know of your own knowledge and information whether Mr. Jones contributed to that appointment? Answer. I have no positive knowledge in regard to the matter. It was generally reported that Mr. Jones had used his influence in favor of Dr. Hunter. This was generally supposed and believed. Question. Was any arrangement made with regard to the appointment as to the division of the emoluments? Answer. I cannot say that any arrangement was made. Question. What was the understanding at the time? Answer. The knowledge I have is very vague. It was a third party who spoke to me in regard to the matter, and said it would be understood in the appointment of Dr. Hunter that the profits of the office would be shared between Dr. Hunter, Mr. Smith, of Philadelphia, and myself. Question. Who was the third party who spoke to you about it? Answer. It was Mr. Carnes of Reading. Question. From whom did you get this understanding? Answer. I am not able to say, sir; I have no positive knowledge where he got the information. Question. Did you have any communication with any officer in the Navy Department with regard to the matter? Answer. I did not, sir. Question. Did you go near the Navy Department with regard toit? Answer. No, sir. Question. Did you have any conversation with Mr. Jones with regard to it? Answer. I did. Question. Did he understand the arrangement? Answer. I presume he did, sir. Question. Did you gather from the conversation that he did? Answer. Yes, sir. Question. Did he mention it to,you? Answer. I cannot say that he ever spoke about the matter to me directly; we had some conversation with regard to it. Question. It was spoken of as an arrangement that already existed, as a thing that would be done? Answer. Yes, sir. Question. Why were you included in the arrangement? Answer. I was an applicant for an office under the general government, and like many others I was not successful; I presume this thing was offered to me as a substitute for the appointment that I sought. Question. Had it any connexion with your position as editor, to COAL AGENCY. 63 enable you to prosecute the hazardous undertaking of keeping up a newspaper? Answer. I think not, sir. Question. It was to satisfy your claim as an applicant for an office, then? Answer. I judge it was, sir. Question. Well, how did this offer come to you directly? Who first mentioned the subject to you? Answer. I think that Mr. Carnes did. Mr. Carnes came to Washington at the time I did. Question. When it was mentioned to you what did you do? Answer. When the proposition was first made to me I declined it? Question. What further negotiation was had with regard to it? Answer. It was represented to me that this thing was better than nothing; that it would require none of my time or attention; that I would probably better reflect upon the matter and consent to the arrangement. Question. State whether or not you did consent? Answer. I did consent, with a mental reservation, if [ may say so? Question. What was the mental reservation? Answer. It was a thing that was not very acceptable and satisfactory to me; it was a thing I had never thought of, and had never sought for, and I did not think it was at all in my line. I suppose I felt as most persons do when disappointed in what they are seeking for; I felt a little cross at the time. Question. But you did the best you could? Answer. Yes, sir. Question. Why was Dr. Hunter included in the arrangement? Answer. He was the appointee? Question. He was the applicant? Answer. Yes, sir. Question. Had he any peculiar fitness or qualification for the office of buyer of coal? Answer. I am not able to say, sir. Question. You know the Doctor is a very good physician? Answer. Yes, sir. Question. But do not know that he was ever engaged in the purchase of coal? Answer. His father and several members of the family are largely engaged in the iron business; and I believe the doctor was engaged at one time under his father at a furnace in the country, and in that capacity I have no doubt he was required to have some dealings in coal. Question. Why was Mr. Smith a party to the arrangement? Answer. Really I cannot say, sir. Question. Was he present at the time? Answer. Mr. Smith was here at the time. Question. Did you hear at the time why he was one of the parties in this arrangement? Answer. I have no recollection of hearing. 64 COAL AGENCY. Question. Had he any connexion, either by marriage or companionship with any particular person controlling this appointment? Answer. Not to my knowledge, sir. Question. What position had he held before? Had he held any political position? Answer. When he left our county, some years ago, I think he held the office of flour inspector under the governor of our State. Question. Had he afterwards, in Philadelphia, any political or official status? Answer. I think not, sir. Question. Was he a coal dealer by trade? Answer. Not to my knowledge. Question. You cannot tell, then, why he was introduced into the arrangement? Answer. I have no knowledge of any reason other than supposed political reasons. I have no knowledge even of that. Question. Do you know upon whose authority this division of the compensation was made? Answer. I do not know, sir. Question. Was it communicated to any officer of the government? Answer. Not to my knowledge. Question. Was it spoken of in your presence-in the presence of any officer of the government besides Mr. Jones? Answer. I do not think it was to my knowledge. Question. Just think a while and recollect, if you can. Answer. The appointment was spoken of, I think, by the President in my presence. Question. The appointment of Dr. Hunter? Answer. Yes, sir. Question. What did the President say to it? Answer. It was in reply to something that was supposed to refer to me; it was in reply to an application for my appointment to that office, as it was supposed; he said he had made up his mind to appoint Dr. Hunter; these were his words, I think —"Mr. Jones urged me to appoint you; but you were no applicant, and I have made up my mind to appoint Dr. Hunter." Question. Was anything further said? Answer. Not in regard to this subject, I think, sir. Question. Did you say this would be satisfactory; that it would be all right; or anything of that sort? Answer. Nothing like that was said by me at all, sir. Question. When was this conversation? Answer. In May or June last; in the latter part of May, I think. Question. Who was present? Answer. Mr, Smith was present. Question. The Mr. Smith who is in this arrangement? Answer. No, sir; a brother to that Mr. Smith. Question. Where does he reside? Answer. In Reading, Pa. COAL AGENCY. 65 Question. Was there anything said at that time about the enmoluments of that office? Answer. No, sir. Question. By the President, or by any one in his presence? Answer. No, sir. Question. Do you know that nothing was said about its being a valuable office, or a profitable office? Answer. Not in my presence. Question. What connexion had Mr. Smith with the politics of your State? Answer. When he lived in our county I knew him as a pretty active member of our party, as an active politician. Since he has resided in Philadelphia I have known very little of him. Question. Was he not the chairman of the Philadelphia committee in the election of 1856? Answer. I think not, sir. Question. Did not hear his name mentioned in connexion with some political position of that kind? Answer. I did not. Question. Why did you not continue in this arrangement? Answer. Well, sir, it has never been very acceptable to me, and I did not continue in it because I had some reasons of a personal nature. Question. Did you receive any other appointment from the government? Answer. No, sir. Question. Did you receive any other place or emolument from the government? Answer. No, sir. Question. You are still in the position of editor of a newspaper then? Answer. Yes, sir. Question. State whether or not Mr. Jones was to receive any portion of this? Answer. Not to my knowledge. Question. Was any portion of it to be applied to purposes of the, election? Answer. Not to my knowledge. Question. Was there an understanding that any portion of it was: to be expended upon the then pending election? Answer. I heard of none, sir. Question. Were you connected with the Reading Forge? Answer. No, sir. By Mr. Ready: Question. Have you received any portion of the emoluments of this office? Answer. I have not, sir. By Mr. Bocock: Question. Does it come within your knowledge that. either the. 5 A 66 COAL AGENCY. President or the Secretary of the Navy knew anything about the arrangement for the division of the compensation? Answer. I have no knowlegde of it; I knew very little about it, indeed. J. LAWRENCE GETZ. No. 28.-TESTIMONY OF JOHN F. SMITH, PHILADELPHIA. FEBRUARY 2, 1859. J. F. SMITH called and examined. By the Chairman: Question. Where do you reside? Answer. In Philadelphia. Question. What is your business there? Answer. I was engaged in the omnibus business for a considerable time for the last ten or twelve years, but latterly I sold out to my son-in-law; but I have an interest in the business again. Question. Were you in the city of Washington in May last? Answer. Yes, sir. Question. Were you present at the time the arrangement was made for the appointment of Dr. Hunter coal agent? Answer. I was here. Dr. Hunter was not here; his friends were here, several of them; I was here, and several of my friends were here; there were several applicants for the place; we had a conversation to arrange things amicably, if we could. Finally it was agreed that if the Secretary would appoint either of us, he should appoint Dr. Hunter, and he did so. Question. What was the arrangement in regard to the division of the emoluments of the office? Answer. The emoluments of the office were to go to Dr. Hunter, Mr. Getz, and myself. Question. Was this arrangement made known to the Secretary of the Navy? Answer. No, sir; it was amongst ourselves and our friends. Question. Who were present at the time this arrangement was made? Answer. I think my brother, George Smith, was present, and Mr. Kearnes, whose first name I do not recollect, a friend of Mr. Hunter, was here; Mr. Hunter was not here; Mr. Getz himself was here. We concluded, from all we heard and all that was said, that the appointment would probably go to Berks county. I lived in Berks county originally, and my brother and relations all lived there. Question. Were any other persons present when this arrangement was made except the persons you have named? Was J. Glancy Jones present? Answer. No, sir; we had conversations with him several times about it, each one urging the claims of different parties. Question. Did he understand your arrangement? Answer. We told him, I think, that such and such an arrangement was agreed upon, if it could be brought about. He was aware of it. Question. Did you communicate this arrangement to the President? COAL AGENCY. 67 Did he understand that an arrangement had been made between the competitors for this office? Answer. Yes, sir; he understood that the emoluments of the office were to go to the three, as I have stated. Question. Did he say anything about it? Answer. No, sir. Question. And thereupon Dr. Hunter was appointed? Answer. We agreed among ourselves that Dr. Hunter should be appointed. Question. Did you communicate this fact to the Secretary of the Navy? Answer. No, sir; not a word of it, to my knowledge. Question. From whom did the appointment emanate? Answer. The appointment was made by the Secretary. I think the President felt disposed-indeed he told me upon several occasions before that if he could do anything for me he would. Question. Did he express himself gratified at this settlement of the controversy? Answer. Yes, sir; he said he was pleased that the thing was done or finished, or something to that effect. Question. Did you take the commission with you to Reading? Answer. Yes, sir; I received it here. Question. From whom? Answer. If my memory serves me right, I received it from Mr. Welsh, the chief clerk of the Secretary of the Navy. I think Mr. Getz and Mr. Kearnes had left here. I told them that I had some business at Reading, and that I would be there in the course of a day or two, and that I would receive the commission, and bring it along with me. Question. Did you deliver it to Dr. Hunter? Answer. Yes, sir. Question. Did he assent to the arrangement? Answer. He merely opened the commission and looked at it, and said that it was all right. Question. Did he say anything about this arrangement? Answer. I do not recollect whether at that time we talked matters over or not. Question. From the conversation you had with him, did he seem to understand the arrangement? Answer. Yes, sir. Question. Has it been carried out by him fairly? Answer. Yes, sir. Question. What induced Mr. Getz to retire? Answer. I cannot tell that. Question. How long was it before you learned that Mr. Getz had retired? Answer. It was somewhere about the time the nominations were to be made and the ticket was to be. formed in Berks county. I cannot recollect exactly when, Question. Do you know of anything that influenced him to retire? 638 COAL AGENCY. Answer. I never had a word of conversation with him about itL Question. After he retired then you and Dr. Hunter were to divide it between yourselves? Answer. Yes, sir. Question. Was any one else allowed to share the profits. of the office? Answer. No, sir. Question. Was there any understanding between you and the parties making this arrangement as to the amount to be contributed to carrying on the pending election? Answer. No, sir, not at all. I would merely observe here that in all elections I contribute all I can afford. In such cases, when I have it, I contribute freely sometimes. Question. What official position, either political or in the democratic party, have you held? Answer. We stand very fair in Berks county-my brothers and myself, and my father before me. Question. You are known as active democrats? Answer. Yes, sir. We have lost many elections of our friends we went for, and we have gained a good many. Question. What connexion had this division of the profits of this office with the pending election last fall? Answer. None whatever. We did last fall what we generally do, I am speaking now of what we sometimes call the "Smith family there. We went for the whole ticket, from one end to the other, and did all we could to elect it; and the ticket very generally succeeded, all except Mr. Jones. Question. What did you contribute yourself in the way of material aid? Answer. I do not even know that. It was something in the neighborhood, perhaps, of $200, $300, or $400, perhaps more or less. The reason I cannot answer that question more definitely is, I told my brothers that we should not stop and look back, but to go ahead, and I would do my share not only in this but in all other elections where I felt interested. Question. Were your past political efforts pressed by you as a reason why your application should be granted, and some provision be made for you? Answer. No, sir. Question. Was that fact in regard to your family mentioned by the President in complimentary terms? Answer. No, sir. I have been acquainted with Mr. Buchanan for a good many years. My father and he often met at the Supreme Court; they practiced at the bar of that court together, and I think he always felt disposed to favor us out of friendship. Question. He knew your position very well? Answer. Yes, sir. Question. What official positions have you held? Answer. I was recorder of Berks county at one time, and was appointed flour inspector by Governor Porter. COAL AGENCY. 69 Question. Wer;e you president or secretary of any of the political organizations in 1856? Answer. No, sir; I do not know whether my brother or my nephew was one of the executive committee. Question. What have you done to aid Dr. Hunter in the performance of his duties as coal agent? Answer. Dr. Hunter living at Reading, and I living at Philadelphia. I had better opportunities to attend to matters than he had, unless he came to Philadelphia for that purpose especially. The orders from the department would pass through Dr. Hunter, and I would attend to things in Philadelphia, purchasing coal, &c. Question, With whom did you make your contracts? Answer. Generally with Tyler, Stone & Co. Question. Did you not always get your coal of them? Answer. No, sir; we got some of Repplier & Co., and we got some from Messrs., Luther & Co.; I do not remember who the first member of the firm was. Question. Who inspected the coal when it was delivered? Answer. We depended in a great measure upon Tyler, Stone & Co. to see that the best coal was furnished; I was not quite so good a judge of coal as some others, and perhaps there were some others who were not quite as good judges as I was. Question. Did you yourself take any personal supervision of the matter? Answer. No, sir; what I did was to see that the best coals were had. I was acquainted with the best veins of coal in the mining region. As an instance, I would say that there were two veins of coal worked by Hecksher & Co.; the Blackheath coal, that all parties admit is the very best found for steam purposes. There were two veins particularly; and, if my memory serves me right, they were marked as Letter A" and "Letter S," which are the best. Question. Did you go to Mr. Hecksher to get this coal? Answer. No, sir. At one time I had agreed with Cain, Hacker & Co. to furnish a thousand tons. After the whole thing was understood, the other partner in the firm, whose name was Mr. Cook, said he would go immediately to Pottsville and make arrangements to get this coal. He went there and there was such a demand for this coal for steam purposes that he could not get it at all. I had informed him that it was absolutely necessary to have this particular kind of coal, and to furnish it in three weeks. On his return home he told me that he would not be able to get it for me, as it was all engaged for four or six weeks, or two months ahead. I then called on Tyler, Stone & Co., and they furnished it. By Mr. Bocock: Question. Do you say that the President understood that you three gentlemen had made an amicable arrangement about this office, or that he understoood the profits of the office were to be divided up between you? Answer. He understood that we had come to some amicable arrangement. 7 0 COAL AGENCY. Question. Did he understand that the profits were to be divided? Answer. I do not know what he understood, whether it was that one-half was to go to one man and one-fourth to each of the others, or what it was. Question. Was anything said by him about dividing the income of the office between you three? Answer. No, sir..Question. Was anything said to him about it? Answer. No, sir; not by me. I do not know what conversation the others may have had about it. By Mr. Groesbeck: Question. Do you mean to say more than this: That the President was advised that the various applicants for that place had arranged that there should be no controversy about the place? Answer. The President understood that we three understood one another, and that Dr. Hunter was to be appointed, or that one of us was to be appointed. I do not recollect that he even did understand that Mr. Hunter was to be the one, but he understood that we three and our friends were satisfied in regard to the division of the emoluments. Question. Was anything said about a division of the compensation? Answer. No, sir; after Mr. Getz announced that he had no interest in it, had had none, and would have none in it upon any account, Mr. Hunter and myself had more conversation about it, and I told him that I supposed we would then have it to ourselves. By the Chairman: Question. Did the President understand that this arrangement was for the mutual benefit of you three gentlemen? Answer. From what little conversation I had with him, I suppose he lnderstood that we three, who were all pressed for appointment, had made an arrangement. But I suppose he knew nothing in regard to how the emoluments were to be divided, whether equally, share and share alike or not. Question. Did he understand that the office was for the benefit of you three persons? Answer. Yes, sir; that we three were to be satisfied, but he knew nothing about the arrangement whether one-half was to go to one party, and the other half to the other two or not. By Mr. Bocock: Question. Are you any judge of the price of coal in the Philadelphia market? Answer. Yes, sir. Question. What do you think of the price of $3 85 a ton? Answer. This is about the price of a superior quality of coal; some of the kinds are a little less; I recollect, however, that there was one order received for one of the institutions in Philadelphia, requiring 300 or 400 tons; they wanted the Locust Mountain coal, as they had used it and were satisfied with it; and it occurs to me that that coal could not be had unless we paid a little above that price; how much, COAL AGENCY. 71 I do not know; but the price was very easily ascertained, as all the offices furnished at about the same price, particularly when you bound them up to furnish coal of the very best quality; I always kept that in view in making these purchases. Question. Do you keep yourself well informed upon the prices of ooal? Answer. Nothing more than this; when I want it, I make it my business to inquire how coal is going. Question. Suppose you were to find that coal was rapidly falling in price, would you interfere in regard to this matter or not? Answer. I could not; I could only fill the orders when I received them from Mr. Hunter; I never bought any of this coal without an order. Question. Would you inform Mr. Hunter anything about it? Answer. No, sir; I never bought unless we had orders; when we received the orders from the government, we filled them at the lowest price we could get the coal at, and have it of the best quality. Question. I understand that this price of $3 85 per tn is the fixed price; is that so? Answer~ No, sir; this $3 85 coal, was this Heckshers coal from these two veins, and was about the same price all the time. It is something lower now, perhaps, than before Mr. Hunter was appointed; but I never bought any; we never took a step in the matter until we received the orders. Question. When you get the orders you fill them? Answer. Yes, sir. Question. Do you look to see what the prices are every order you get? Answer. When Mr. Hunter sent the orders to Tyler, Stone & Co., I would not know what would pass between them. Question. What is the condition of your hearing? I notice you do not seem to understand all the questions put to you. Answer. It is not perfectly good; I do not always understand what is said to me. J. F. SMITH. 72 COAL AGENCY. No. 29.-TESTIMONY OF C. NICHOLS BEACH, PHILADELPHIA. FEBRUARY 2, 1859 C. NICHOLS BEACH called and examined. By the chairman: Question. Where do you reside? Answer. In Philadelphia. Question. What is your occupation? Answer. Coal merchant. Question. Of what firm are you a member? Answer. Of the firm of Tyler, Stone & Co. Question. Who are the members of that firm? Answer. Mr. Frederick Tyler, of Hartford, Connecticut, Mr. Georg F. Tyler, Mr. William E. Stone, and myself, all of Philadelphia. Question. Are any of the firm connected with each other by marriage or blood? Answer. By marriage, Mr. Frederick Tyler is my father-in-law, and Mr. George F. Tyler is my brother-in-law; all are family connexions except Mr. Stone. Question. How long have you been engaged in that business yourself? Answer. I have been in the business some ten years; I have, how. ever, had an interest in this firm since the year 1852. Question. Is your business solely with coal dealers and buyers? Answer. That is our business; there are other incidental matters that come up in this as in all other kinds of business. Question. For whom do you buy your coal chiefly? Answer. For the public generally; for any one who will purchase of us. Question. Are you what are called commission dealers, or do you buy and sell on your own account? Answer. On our own account. Question. Do you buy your coal of others, or do you quarry it for yourselves? Answer. For the last two years we have bought our coal; previous to that we were extensive miners. Question. From whom do you buy it? Answer. From various parties; quite a large number of names are on our books. Question. Since when have you furnished coal to the government in considerable quantities? Answer. The first coal we ever furnished to the government was five or six years ago. I cannot say when, but previous to Mr. Pierce's administration. Question. How much did you furnish during Mr. Pierce's administration? COAL AGENCY. 73 Answer. I do not know; only a part that was used at all events; perhaps 4,000 or 5,000 tons. Question. When did you commence furnishing large quantities of coal to the government? Answer. The year 1857 we furnished more than we ever furnished previously. Question. How much did you furnish in that year? Answer. I think we furnished about 20,000 tons; perhaps not quite that amount. Question. Did other parties than yourselves furnish coal to the government during 1857? Answer. Yes, sir; I think they did. I know that other parties had the reputation of furnishing some. Indeed, I heard the agent say that he had bought of other parties. Question. When did you commence furnishing all the coal to the government? Answer. I do not know that we have ever furnished all. Question. All that is delivered at Philadelphia? Answer. Not until last year; indeed, I do not know it to be a fact that we furnished it all then. Question. How much did you furnish last year? Answer. I do not know exactly. From 30,000 to 40,000 tons. Question. Did you furnish 40,000 tons? Answer. From 35,000 to 40,000 tons; not quite 40,000. Question. What do you receive per ton from the government? Answer. We receive different prices at different times. Question. What have you received during the last year? Answer. The bulk of our sales were at $3 85 per ton. Question. What coal do you furnish to the government? Answer. The best of anthracite coal. Question. Do you sell other coals? Answer. Yes, sir. Question. Do you sell any other to the government? Answer. No, sir. Question. Who fixes the value of this coal? with whom do you contract to furnish the coal? Answer. With Dr. Hunter, the coal agent. Question. Has any other person taken part in the contracts that have been made with you? Answer. I do not think there has; although Mr. Smith attended to the business for Dr. Hunter at times. Question. Were your contracts made in writing? Answer. No, sir. Question. Have you had any negotiation with the government during the last year in regard to the price of coal? Answer. No, sir. Question. Have you had at any time? Answer. Never, except on one occasion. Question. When was that? 74 COAL AGENCY. Answer. I do not know as that could be called a negotiation; I merely made a remark in the department one day that coal would be at a less price after that, owing to a reduction in the rates of freight upon the railroad. That is the only time, I believe, I ever mentioned the price there. Question. Then the price of coal was fixed by arrangement between you and Dr. Hunter? Answer. Yes, sir. We did the same with him as we would with any other purchaser; he asked our price and we told him. Question. What is the cost of anthracite coal at Pottsville, the mining region? Answer. It varies. Question. Such as is furnished to the government? Answer. It varies from $1 75 to $2 25 per ton. It varies in different years, and the different grades vary in price. Question. What grade do you furnish to the government? Answer. The best we can procure, so far as our judgment goes. Question. What is the cost of freightage and tollfrom Pottsville to Philadelphia? Answer. $1 40 per ton. Question. Is it the same by railroad or by canal? Answer. It was very nearly the same last year. Question. Does that include the tolls on the canals and other expenses? Answer. Yes, sir. Question. Does that include the expense of throwing it off on the wharf or dock? Answer. That delivers it at Richmond, at our shipping point, but includes no labor. Question. Does the government receive it there? Answer. Yes, sir. Question. Does that price include the unloading from the cars? Answer. No, sir. Question. How much does that cost? Answer. We calculate that our labor up there amounts to 15 cents per ton; that is our theory, and practice carries it out so nearly that we assume that as a basis. I should state that the cost of labor is different in different yards, or with different shippers. Some of the wharves have more convenient arrangements, and would pay less than others for labor. Question. With whom does Dr. Hunter make contracts for the transportation of this coal? Answer. He makes none that I am aware of; we did the business for him as we do for all our customers. A gentleman in Boston, for instance, wishing some coal sent to him, would order us to ship it to him; and we would procure a vessel to take it on upon the best terms we could. We have no interest in the freight, except in cases of special contract. COAL AGENCY. 75 Question. What profits do you derive from the chartering of these vessels? Answer. None whatever; in all contracts that we make with all our customers, it is a generally established rule of the trade, we make it a contract, that we shall generally charter vessels for our customers on the best terms we can. Question. Do you own the vessel? Answer. No, sir; we own none except the one-eighth interest in a small schooner, which I think never carried any of our coal for the navy. Question. Do you make these charter parties for the government? Answer. Yes, sir; that relates, however, only to a portion of the coal. If the Doctor should write us that he had an order for a thousand tons of coal, to be shipped to some I articular port in the country, we should take vessels just as we coald get them, on the best terms we could, making no charge in relation to it against any one. Question. Did you receive any profits incidentally from these charter parties? Answer. No, sir. Question. To whom did you deliver the government coal? Answer. It is consigned to the naval storekeeper and sometimes to the commandant of the yard; it is consigned to some of the officers of the yard. Question. Is it inspected and weighed? Answer. It is always understood that it is weighed out in every yard; but that I cannot tell from my own knowledge. Question. Is it weighed as it goes on the vessels? Answer. It is all weighed as it goes on the vessels. Question. Who inspects the coal? Answer. That is the duty of the coal agent. Question. Is any other person called upon to inspect it? Answer. I do not know. Question. Is the coal weighed? Answer. I know it is weighed when it is loaded. Question. Is it weighed when it is delivered on the dock of the government? Answer. I am confident that it is weighed at every yard; so I judge from receiving certificates mentioning the weight. Question. Do you ever see it weighed? Answer. No, sir; I have never been at the yard when it was received. Question. How is coal weighed when it is delivered? Answer. I cannot tell. Question. Do you not know that the coal is merely wheeled off the vessel and dumped on the dock, and piled up there in bulk? Answer. I do not know that; I doubt it. I recollect that the naval storekeeper at Norfolk has sent us certificates from time to time, saying that such a cargo fell short, say three tons, and other cargoes overrun that amount. 76 COAL AGENCY. Question. Is the coal weighed in the Philadelphia navy yard when you have delivered the coal? Answer. I do not remember that we have ever delivered more than four or five hundred tons at the Philadelphia navy yard. Question. Where do you deliver this coal? Answer. At the different navy yards in the country, at Charlestown, Massachusetts, New York, Norfolk, and Pensacola. Question. Do you deliver the coal at the Philadelphia navy yard at $3 85? Answer. I think we have delivered but a little coal at the Philadelphia yard. We sent about a hundred tons there for a little steamer upon the Paraguay expedition. Question. Is the coal transported at your risk? Answer. It is not. Question. When does the risk of the government commence? Answer. As soon as it is loaded upon the vessel and the bill of lading signed. Question. Is it weighed then? Answer. Yes, sir; every pound of it is weighed. Question. At Philadelphia? Answer. Yes, sir. Question. The coal agent should inspect the quality of the coal and see that it is good anthracite coal? Answer. Yes, sir. Question. What is the variation of the price of anthracite coal from the highest to the lowest qualities? Answer. That is rather a difficult question to answer. It varies in price as much as fifty cents a ton; and in some years more. But much depends not only on the kind of coal itself, but upon the preparation of it. Question. Were you here at the time Dr. Hunter, the coal agent, was appointed? Answer. Yes, sir. Question. Did you know of his appointment? Answer. I did. Question. Did you have any conversation with Mr. Jones or Mr. Getz in reference to his appointment? Answer. I had with Mr. Glancy Jones. Question. Were you acquainted with the arrangement by which the profits of the coal agency were to be divided among several individuals? Answer. Only from outside rumors. Question. Did you hear it at the time of the appointment? Answer. I did; I heard that there were partners in it. Question. Was that rumor general? Answer. I heard it then, and I saw it in the papers afterwards. Question. Was it a general rumor at the time of the appointment? Answer. I can say that I heard it at that time; it did not seem to be a private matter, but I heard it talked of. COAL AGENCY. 77 Question. Did you have any conversation with the Secretary of the Navy in regard to the rumor concerning the appointment? Answer. No, sir; not about the rumor. I have spoken to the Secretary of the Navy about the appointment. I was an applicant myself for the position, and was, of course, interested. Question. You then conversed with the Secretary of the Navy in regard to the appointment? Answer. Yes, sir. Question. Did he tell you why he had appointed Dr. Hunter? Answer. I cannot say that I conversed with him specifically in regard to Dr. Hunter's appointment. The only thing I recollect of saying is that I heard that Dr. Hunter was to be appointed. Question. Did you communicate to the Secretary of the Navy those rumors about the division of the profits? Answer. I do not recolloct that I did. Question. From whom did you hear this rumor? Answer. I am unable to state. I think, however, that Mr. Jones told me so, for one, and I believe that Mr. Devine, who was here at the time, told me, but that I cannot swear to. Question. Was this before the appointment? Answer. Perhaps it was before the appointment was made known officially, but it was during that week. Question. Are you a relative of Mr. Toucey? Answer. No, sir. Question. Are you a relative by marriage? Answer. Mrs. Toucey was my mother's sister. There is, however, no relationship in any way between any of Mr. Toucey's family and any other firm of Tyler, Stone & Co., except the relationship of Mrs. Toucey to myself. Question. Did you not feel called upon to communicate this rumor to Mr. Toucey? Answer. No, sir. I may have done so, but I cannot say that I did. I know that I laid no stress upon it as affecting me. Question. Was it regarded as wrong or right by you? Answer. I did not see any impropriety in it, perhaps because I knew the same thing existed under the previous agent. Question. Did you know that fact? Answer. I frequently did business with the agent, and always understood it so. Question. How was it divided in that instance? Answer. I think there were two of them who divided it equally; so I supposed. I know that both had an interest in it. Question. Was the division of these profits a matter very well known? Answer. 1 do not think there was any secret about it. Question. Would you not, being an applicant, naturally communicate that fact to the Secretary of the Navy? Answer. I might possibly have done so, and I might not, because I did not consider that there was any impropriety in it. 78 COAL AGENCY. Question. What is the degree of intimacy between you and Mr. Toucey? Answer. We are on very good terms; with Mrs. Toucey I am particularly intimate, especially since I lost my mother, her sister. Question. How frequently are you in Washington? Answer. Quite frequently; sometimes I am here twice a month; sometimes once in two months. Question. Where do you generally stop while here? Answer. At the National Hotel? Question. By whom are the contracts made for the transportation of coal to foreign governments? Answer. By the Navy Department itself. Question. To whom do you deliver the coal that is sent abroad? Answer. To the vessel designated. Question. The government makes out an order, and you deliver the coal to the one they order you to deliver it to? Answer. Yes, sir; to the one the coal agent orders it to be delivered. Question. Then the charter parties you make apply to the coasting trade alone? Answer. That is all; in fact, we make no special charter contract with any one; we only made the ordinary bills of lading. Question. You agree with them at the regular price? Answer. Yes, sir. Question. Are you under any obligation either personally or in any way, to contribute any portion of the profits growing out of this coal business with any other party? Answer. Not in the least. Question. Is there any understanding by which you are to have the contract? Answer. No, sir; not that I know of. Question. Do you know why the coal agent applies to you for all the coal of the government, instead of other parties? Answer. I do not know as I could say exactly. It is freely done by him, probably because he feels sure we will treat the department fairly. Question. It is a matter of discretion by him? Answer. Yes, sir; he can purchase at aly moment, wherever he chooses; he is under no obligation to buy of me. Question. Has it not been a matter of general complaint that all the coal is bought of you? Answer. I cannot say that there was any general complaint. Some of our neighbors in business have been jealous and envious of us, I suppose. Question. Was the fuel of the government ever purchased of one company exclusively before? Answer. Yes, sir. Question. When? Previous to 1857? Answer. I think that one firm supplied it all formerly. That was the general rumor, at all events. COAL AGENCY. 79 Question. Did you not supply some then? You said you supplied 4,000 tons during Mr. Pierce's administration? Answer. There is a little misunderstanding about that quantity. I meant to say that we furnished some under Mr. Fillmore's administration. Question. Was not the coal before supplied by contract? Answer. Not that I am aware. The first coal agent I knew was under Mr. Fillmore. Question. What was his name? Answer. Mr. Springer. Question. He was appointed in 1851, was he not? Answer. I do not know. By Mr. Ritchie: Question. Is the price of coal which you furnish to the government the lowest price at which coal was sold in the market? Answer. I do not know that it was. It would, besides, be very difficult to discriminate between the different qualities of the coal. Question. How came you to fix the price at $3 85? Answer. It was fixed upon the basis of what had formerly been charged of a fair profit for those in the business, believing the profit of it to be perfectly fair and reasonable. Question. Do you know the market price for coal during the time you have been furnishing it? Answer. I cannot say; I do not know that I do. Coal has varied at different times and for different qualities. I do not know how low it has been. It has been from $3 25 a ton up. Question. Of the same quality as that you furnish? Answer. I do not know that. I did not say that. Question. I only referred to the kind of coal that you furnished. What has been the variation in the price of that kind of coal during the last year? Answer. There has been very little of that quality of coal shipped. I do not know any one who has shipped exactly the quality of coal that we furnished; when I take into consideration the care with which it was handled and shipped, I think it is better coal than was shipped by any other parties. Question. Do you mean for sea-going steamers? Answer. Yes, sir, in our opinion. It was always rehandled by us with a great deal of care. Question. What is the price of the best quality of coal shipped by other persons for similar purposes? Answer. I cannot say; about that figure, I think; I know of some other coals that sold for $3 75; but I do not know what such as ours would bring. Question. Have you yourselves, within the last year, shipped any coal for marine purposes for any other parties but the government? Answer. No, sir; I think not; I do not think we have shipped any other; I would not say positively; if we have, it has been but a very small amount. Question. Do you know who are the principal shippers of this kind of coalin Philadelphia, to be sent abroad for the use of marine engines? 80 COAL AGENCY. Answer. There is a firm there, who I think have shipped more largely for that purpose than any others. Question. Who are they? Answer. Hecksher & Co. Question. Have they an establishment in Philadephia? Answer. Yes, sir. Question. Is there not such a firm there as Benj. Milnes & Co.? Answer. Yes, sir. Question. Now in regard to this firm of Hecksher & Co., what kinds of steamers do they ship coal for? Answer. I think they ship for some of the French steamers; at any rate they are sea going steamers; one line to Southampton or to Havre. Question. The mail steamers from New York to Europe? Answer. Yes, sir. Question. Do they ship for any of the California lines? Answer. They have done so; but whether the last year or not I do not know. You asked me if any others were in the business largely, I did not mean to say that no others were; but I do not know of any others who are so largely in the business as Hecksher & Co. Question. Are you acquainted with the firm of Benj. Milnes & Co.? Answer. Yes, sir. Question. With the firm of Van Dusen, Norton & Co.? Answer. Yes, sir. Question. Blachiston & Cox? Answer. Yes, sir. Question. N. Sturtevant & Co? Answer. Yes, sir. Question. Charles Miller & Co? Answer. Yes, sir. Question. Noble, Hammack & Caldwell? Answer. Yes, sir. Question. Lewis Audinreid & Co.? Answer. Yes, sir. Question. Are all these persons of fair standing in business? Answer. I think so? By Mr. Groesbeck: Question. You said you have uniformly furnished this coal at $3 85 per ton; have you never varied in your price? Answer. I ought to correct that statement. I spoke of the bulk of our business being at that price. We did some business with other bureaus, in which case we charged a different price. This was owing to the fact that we sold them the coal delivered at the various yards in the country. Question. Then it seems that all the coal which you furnished upon the orders of Dr. Hunter you furnished uniformly at $3 85 per ton. Answer. Yes, sir, with the exceptions above named. Question. Was that the market price while you were furnishing it at that price? Answer. No, sir; not for ordinary coal, but for coal shipped in that COAL AGENCY. 81 manner. But there is very little coal shipped that would pass the inspection of an agent, if he attempted to inspect it. Question. Then you did not sell to the government at what is the market price at the time you furnished the coal? Answer.'If we shipped the same kind of coal that we did to other parties we would charge the same. Question. Is there as much difference in the quality as ou make in the price? Answer. I think there is. I would not like to say that there was to a cent; but there is a' great deal of difference. Question. How much is your price above the market price? Answer. That I cannot say, because, as I said before, the market price is rather an indefinite figure. Ordinarily, in shipping coal for other parties, we ship coal with care, it is true, but we ship it somewhat as it comes; but with the government we have always been exceedingly particular in regard to selecting good coals, and have put a great deal more labor and expense upon coals shipped for the government than upon any other coals we have shipped. Question. Is there any quality of coal now in the Philadelphia market so good as that which you furnish to the government? Answer. I would not like to say whether there is or not, for that would be arrogating a great deal. I am under the impression that since we have supplied this coal to the government there has been none of quite so good quality sold. Formerly there were complaints of the coal supplied by others; but we have had a great many commendations from parties who have used our coal in the navy. Question. I am not speaking of the quality now, but of the price. Answer. It was a price that the agent seemed to think was a fair one. I had no business, no conversation, no communication with the department about the matter. In naming and fixing the price with the agent he seemed to be satisfied with it. By Mr. Bocock: Question. Does your firm keep regular merchants' books? Answer. Yes, sir. Question. Then tell this committee how much are your profits upon the coal that you furnish to the government? Answer. It would be impossible for me to state that; all our coal business is carried to the general coal account, and it would be impossible, I think, to discriminate? By Mr. Ready: Question. Do you not keep separate account with the government? Answer. Yes, sir; that is, we keep a separate account of the charges against the government. Question. You keep an account with the government? Answer. Yes, sir. Question. And you keep an account of the coal you purchase? Answer. Yes, sir, but the government business is but a fraction of business? 6 A 82 COAL AGENCYT By Mr. Bocock: Question. Do you keep a separate account of all your purchases for the government? Answer. No, sir, we do not, for in purchasing government coal we purchase a great deal of other coal. By Mr. Ready: Question. Will your books show the price at which you purchase your coal? Answer. Yes, sir. Question. Well, sir, by reference to your books, keeping in mind the price at which you sell it to the government, can you not very readily arrive at the profits? Answer. We could not very readily do that, from this fact: In buying coal for the government, for instance, we desire to get a certain size and in large quantities, and it is impossible to get that size from any miners by itself, because the production of that size involves the production of a large amount of other kinds of coal, which we must take and sell as we can, sometimes at a profit sometimes nearly at cost. But we are obliged to take all this other coal, in order to secure that we wish for the government. Question. I did not exactly understand your statement of what was done with this coal when it arrived at the Reading docks —in the cars, for instance. Does your control over it end there, and does the goveminent take it and deliver it from the cars? Answer. No, sir; we put it on the vessel ourselves. Question. What does that cost you? Answer. As I said before, it all goes under the head of shipping account; the average is about fifteen cents per ton. Question. Is that the average of what you pay for the coal you furnish to the government? Answer. We pay more than that, sometimes; I know of cases where we have paid fifty cents per ton. Question. To get it on board the vessels? Answer. Not altogether that; it always comes with more or less slate and impurities with it, which are objectionable, and we have to pick those impurities out. Question. Is the $1 40 a ton, which you say covers freight and tolls, in addition to the price paid for the labor? Answer. Yes, sir. Question. Then the $1 40 does not pay for taking the coal from the mines and delivering it on board the ships? Answer. No, sir. Question. Now, could you not deliver this coal to the government at a smartly less price and still make a handsome profit? Answer. We could make a profit at a less price, perhaps; but I have never considered and do not now consider that we alake more than a good, fair profit, considering the advantages we give the government of being always supplied with the same kind of coal, in good condition and in whatever quantities and at whatever notice they may give. COAL AGENCY. 83 By Mr. Bocock: Question. What did you get some years ago, when you furnished cal to the governmentT Answer. I do not recollect, By the chairman: Question. Is this coal transported from Philadelphia to the different navy yards in steamers or in sailing vessels? Answer. In sailing vessels. Question. Do you say that you derive no benefit or advantage in your business from the power to make these charter. parties? Answer, Not a cent; we make them free of cost. Question. Are they made out in the name of the coal agent? Answer, No, sir; this charter party is but an ordinary bill of lading. It says, for instance: "Shipped on board schooner Sam Smith, by Tyler, Stone & Co., (so many) tons of coal," &c. The captain is bound to deliver at such a place in good condition, &c. Question. Is this coal transported at the risk of the government? Answer. Yes, sir, it is at the risk of the government, as with all our other customers, as soon as it is loaded on the vessel and the bill of lading is signed. Question. Do you charge Dr. Hunter anything for this? Answer. Not a cent, Question. Do you know whether he inspects this coal or not? Answer. It is his duty to do it.[ I presurned that he would do it, or the Navy Department would complain of him, and I have never heard that they have made any complaints of him; and I will say further here that I have never sold any coal to Mr. Toucey, the Secretary of the Navy, nor to any one in the Navy Department, nor to any one except the coal agent, for the use of the department in any of its business; nor do I think that the coal agent has ever had any intimation from any one in the department that I should furnish him with any coal, and he will swear that he has had no such intimation. FEBRUARY 3, 1859, C, Nwmo-s BiACH recalled: By the Chairman: Question. You say that you wish to make a statement in explanation of your testimony given on yesterday; what is the explanation? Answer. It is in relation to a certain document which I did not have an opportunity to examine until after my examination on yesterday. (See appendix to this deposition.) I refer to the affidavit of certain parties as to the price at which they would have supplied coal of similar quality to that which we sent to the department. I will only say that that to some extent is only a mere matter of opinion, as they are not fully aware of what was supplied, nor the manner in which it was supplied. I will also state that one of the firms did formerly supply the coal under the regulations made one year, that it should be given to the lowest bidder; and the coal they furnished was of such an inferior quality that it created very great trouble, and 84 COAL AGENCY, orders were never afterwards given to that effect. And I will also state, that another firm, who testify that they never were applied to during 1857 and 1858, were applied to during 1857; that I know, Through forgetfulness, probably, their statement is wrong in that respect. By Mr. Ritchie: Question. What are the names of these firms? Answer. The firm which supplied the coal one year, and with which the department had so much trouble, is the firm of Noble, Hammack & Co.; the other firm I referred to is the firm of Blackiston & Cox. I am quite well assured that they were applied to in 1857 in relation to the price at which they would furnish the coal, and they did make a proposition, but it was too high, or was for some reason unsatisfactory. By Mr. Ready: Question. You used the words awhile since, in stating that they were applied to, "that I know." You now say that you "are well assured" of it. Perhaps it would be better for you to fix upon the form of expression that you wish to have employed. Answer. Perhaps it would be difficult for me to say that I know that fact, of my own personal knowledge. I do not know of that myself, but the agent informed me that he had a bid from that firm as well as from others. I will say this, however, without any hesitation, that the parties could not have supplied the coal of the quality we supplied at the price they have named, and have got cost for it. In many instances we purchase coal for the government that costs us more than they give there as the price at which they would furnish it. I would state that my wife's family (the Tylers) have never considered themselves connected with the Toucey family, and that there is merely a "calling" acquaintance between the two families: nothing on which the Tylers would presume to ask or expect favors. C. NICHOLS BEACH. (APPENDIX.) PHILADELPHIA, January 29, 1859. To the honorable John Sherman, chairman of the committeefor investigating naval contracts, &c.: The undersigned, citizens of Philadelphia, respectfully represent: That they are coal dealers, and that they represent nearly threefourths of the whole amount of anthracite coal shipped from the city of Philadelphia in the years 1857 and 1858, and that during those two years no application has been made to them, or to either of them, to supply the naval department with anthracite coal, neither has any application been made to them to furnish any statement of prices at which coal could be furnished to said department. The undersigned further say that they would have been glad, in the year 1858, to have supplied the naval department with the anthracite COAL AGENCY. 85 coal required (of the same quality as that furnished) at three dollars and thirty-five cents per ton, on board of vessels in Philadelphia. All of which is respectfully submitted to your notice by Israel W. Morris, jr., Blakiston & Cox, N. Sturtevant & Co., Benj. Milves & Co., Van Dusen, Norton & Co., Charles Miller & Co., Noble, Hammack, & Caldwell, Lewis Audenreid & Co. CITY OF PHILADELPHIA, 88. On this 29th day of January, A. D. 1859, personally appeared before me, the subscriber, an alderman of the city of Philadelphia, John P. Cox, of the firm of Blakiston & Cox; Charles Wannamacher, for N. Sturtevant & Co.; Charles Miller, for Charles Miller & Co.; Israel W. Morris, jr.; Benjamin Milves, for Benjamin Milves & Co.; C. F. Norton, for Van Dusen, Norton & Co.; Seth Caldwell, for Noble, Hammack & Co.;John Rommel, jr., for Lewis Audenreid & Co.; who being sworn or affirmed, say that the facts set forth in the foregoing statement are true. JOHN B. KENNEY, Alderman and Justice of the Peace. No. 29. —. NICHOLS BEACH, PHILADELPHIA. FEBRUARY 10, 1859. C. NICHOLS BEACH, recalled. By Mr. Bococx: Question. Were you an applicant for the coal agency when Dr. Hunter was appointed? Answer. I was. Question. Do you know of any reason why you did not get the appointment? Answer. I think political reasons in part. Question. You had been connected with the coal business? Answer. Yes, sir; a good while. Question. Was there any other gentleman applying for the coal agency who had as much experience in regard to the coal business as yourself? Answer. I do not know of more than one. Mr. Springer applied, who, I think, was very competent. Mr. Nevin might think that he was, although I do not think he has had as much practical experience in the coal business as I have. Question. Do you know of any reason why you did not get the appointment? Answer. I think for political reasons in part, I have always understood. Question. I want what you know, not any hearsay statements. If you heard the President or Secretary say anything about it that would be competent for you to give? Answer. As the appointment was in Mr. Toucey's office I thought 86 COAL AGENCTY I could get it when I came down here. But he gave me to understand that I must be very well endorsed to secure it. Afterwards he gave me to understand, that as it was a Pennsylvania appointment, he would defer a great deal to the President in it, but that my papers would go on file, and my application would have equal consideration with the rest. Question. How extensively were you endorsed in Philadelphia and in Pennsylvania? Answer. I had the names of, say a couple of dozen gentlemen, all of first-rate standing; some of them politicians, and some of them merchants. Question. Do you know whether Mr. Nevin was a candidate for the office? Answer. Yes, sir; he was. Question. Did he make any proposition to you to aid him in getting the appointment? Answer. He did. Question. What? Answer. He made propositions at different times. First, he proposed that if I would use my influence for him he would make all his purchases through our house. Afterwards, as the time drew near for the appointment to be made, he made a rather more indefinite proposition than that. He said he was anxious to get this appointment, and if I would assist him, and he should succeed, I might dictate my own terms in return. Question. Do you know anything of a letter written by Mr. Nevin to Dr. Hunter, proposing to furnish him with coal for the government? Answer. Dr. Hunter informed me of such a letter, and I think he showed it to me; I have quite a distinct recollection that he did. Mr. Nevin Lad entered the business very late in the season, I think as late as August. He was not in the business during the early part of the season; but he formed a connexion with a house in Philadelphia as late as August, 1 think, and entered into business to a small extent. Question. Had the arrangement between your firm and Dr. Hunter been made before that time? Answer. It had been made soon after Dr. Hunter was appointed, The first coal he bought I think he bought of us. Question. What was the precise nature of that arrangement? Answer. It was this: we had nothing in writing, but it was understood, however, that the doctor would come to us as he wanted to buy coal, and we named the price at which we would furnish it to him. Question. How long did you agree that that arrangement should exist? Answer. It was understood that it should extend through the season. Question. Suppose the price of coal had advanced with that understanding between you and Dr. Hunter, would you have been permitted to charge a higher price than that which you had agreed upon, or would you have been bound to let him have it at that price? COAL AGENCY. 87 Answer. We should have been bound to let him have it at that price. It was the same price at which we had furnished the last coal to the former agent. The change from the old price to the new was made after the railroad company reduced their rates for transportation. Question. What was the former price? Answer. During the previous year it was $4 25 a ton. Question. How much did you supply at $4 25 a ton? Answer. I cannot say; we supplied the agent, I should think, with more than half of what he purchased that year. I think that a Mr. Repplier supplied about all or nearly all of the balance. Question. Something was said by witnesses here, perhaps by yourself, about the peculiar process that this coal has to go through in order to fit it for government purposes. Answer. I answered that question the other day, but I do not know as my explanation was very lucid. Question. What peculiar preparation over and above what is given to other coal is necessary in order to fit coal for government steam uses? Answer. It is the putting a larger number of men for a longer time upon the work of selecting the impurities from the coal, so that the government may receive purer coal. We have it entirely pure, if we can. All this selecting is done by hand, and very carefully. Question. Where was this handling done, at the mines or by your firm? Answer. Our firm had it done after we received it. Question. What is your estimate, if you made any, of the value of the labor per ton, to which it was necessary to subject this coal in this preparation you speak of? Answer. It would depend very much upon the condition in which the coal came to us from the mines. I am very confident we have expended as much as fifty cents a ton upon some of the coal which we have received. In other cases we would not expend so much; twentyfive cents a ton, perhaps. Occasionally it would need only a small amount of labor upon it; but generally it would require a great deal of labor more than ordinary coal. By Mr. Ritchie: Question. Do you mean that this was extra labor put upon this government coal beyond what is put upon coal for other sea going steamers-say, for instance, coal for the Collins' steamers? Answer. It is much more labor than we would put upon any other coal. I do not think there is any other coal shipped with so much care as the coal ordered from us for the government. Question. Do you know anything about it? Answer. I know what it is in our own case. Question. How is it with other dealers; those who furnish the Collins and California steamers? Answer. I know the coal goes, to some extent, more or less, as it comes from the mines into the market, for I have seen them loading it. Question. You wish, then, to be understood that your rehandling, 88 COAL AGENCY. costing you from twenty-five to fifty cents a ton, is extra, beyond what is put upon coal for other sea going steamers? Answer. I do think it is beyond what is ordinarily put upon other coal; and I would like to state my motive for putting on this extra care and labor. Knowing the position of the agency, and that this matter might be called in question and there might be reflections made upon my connexion, or supposed connexion, with the Secretary and Dr. Hunter, I have always been more particular in furnishing this coal than in furnishing any other that I have supplied to purchasers, perhaps more so than I would have been in furnishing it to the government, if the parties I have referred to had been entirely indifferent to me. And I would like also to state another reason; it is that I know something of what is required for the naval service. All the vessels are cramped for room for coal; their bunkers are small, and they can carry but a limited amount of coal. I think it is very important for our naval vessels to have clean coal, because they cannot afford so much room for it as other sea going steamers. We did bestow labor upon preparing this coal above what we bestowed upon ordinary coal for other sea going steamers. By the Chairman: Question. You say that the Secretary informed you that he had to defer to the wishes of the President in Pennsylvania appointments? Answer. I did not mean to be understood to state that he said so in direct terms; but I got the impression in some way from the Secretary that that was the fact. I do not think he said so in direct language. Question. Were the qualifications of Dr. Hunter for this office spoken of by or to the Secretary? Answer. Not that I recollect. Question. Was anything then said, between you or the Secretary, about your supplying the coal to Dr. Hunter? Answer. There was not. Question. When did the Secretary understand that you were furnishing coal to Dr. Hunter? When did he first understand it? Answer. I cannot say. I do not know that it ever came to his knowledge officially. Question. Would he not naturally know it in the way of official business? Answer. I do not know of any way in which it would come to his notice. Question. Do you say under oath that the Secretary did not know that you was furnishing this coal? Answer. I say he would not know it officially. Question. Does he know it as a matter of fact? Answer. I think that he does know that I furnish some of it, but I think he does not know to what extent, how much or in what proportion. I have no doubt mentioned to him that we were shipping coal for his department. Question. Did you understand from the Secretary that the appointment of coal agent was made upon political considerations? Answer. No sir: I do not think I did. But I understand myself COAL AGENCY. 89 the nature of these things. I knew that in order to get the appointment myself I required political as well as other endorsements. Question. You do not know why Dr. Hunter was appointed, further than you have stated? Answer. No, sir: but I think he was appointed at the desire of the President. By Mr. Groesbeck: Question. Do you know anything about that? Answer. I do not know it positively. The witness subsequently made the following statement: I wish to state that the Chairman's question, " You say that the Secretary informed you that he had to defer to the wishes of the President in Pennsylvania appointments," is not what I understood him to ask on my examination. I understood the question thus-' Did the Secretary inform you that he should defer to the wishes of the President in this matter (the coal agency) as it was a Pennsylvania appointment?" My answer, as reported, is a correct reply to the question as I understood it, but it is not a correct reply to the reported question, as the Secretary never told me that he had to defer to the President's wishes in any matter; nor did I discuss with him any other appointment than that of coal agent, for which I was an applicant. C. NICHOLS BEACE. No. 33. —TESTIMONY OF JOHN G. REPPLIER, PHILADELPHIA. FEBRUARY 3, 1859. JOHN G. REPPLIER called and examined. By the Chairman: Question. What is your occupation? Answer. I am in the coal business. Question. Where? Answer. In Philadelphia. Question. In what kind of coal business? Answer. The mining and selling of coal. Question. What is the name of your firm? Answer. Repplier & Bro. Question. What is your experience in the business? Answer. I have been in it a good many years. Question. What has been the market value during the last year of anthracite coal of the quality, used by the vessels of the United States? what its value per ton delivered on board the vessel at the Reading docks, Philadelphia? Answer. It has ranged from $3 20 to $3 30, per ton, according to the quality of the coal. Question. State what examination, if any, you have made of the coal delivered by Tyler, Stone & Co. to the United States government, within the last year, at Philadelphia? Answer. I have made no examination of it at all; I have made inquiries as to the kind,of coal delivered, but I have made no personal examination. 90 COAL AGENCY. Question. From whom do they purchase their coal? Answer. Principally from Richard Hecksher & Co., so far as I can learn. Question. What quality of coal is it? Answer. It is middling quality; I do not consider it first class coal. Question. What is the market value of that quality of coal on board vessel? Answer. Not over $3 25 a ton, I should say. Question. Could such coal be purchased in open market in Philadelphia, in such quantities as used by the United States, and be delivered on board vessel at $3 25 a ton? Answer. I should say yes, and I would add to that, I believe I mine as good an article as is mined for marine purposes, and I should have been very well satisfied to have taken $3 30 a ton for any quantity desired. I believe that my coal stands as high as any that is mined; I do not think there is any better coal for marine purposes. Question. What advantage has a purchaser who consumes, say 50,000 tons of coal annually, such a purchaser as the United States would be, in entering the market to purchase coal? Answer. I would say that the United States government pays cash and the seller has no risk. We have, ourselves, frequently furnished the government, during some of the terms of former coal agents. We would always sell to the government in preference, because we ran no risk in selling coal to it. Question. There is no delay in receiving the money, you consider? Answer. Yes, sir; we consider that a great advantage. Question. State whether you made any application to any one, either the coal agent or any officer of the government, for the privilege of selling coal to the government? Answer. I never made any application to the present coal agent. I would say, however, that Mr. John F. Smith called upon me to make some little inquiry, he said, in relation to coal. I told him I should be very happy to sell to him; that our coal had given general satisfaction, and we would be glad to sell it to him any time he would purchase. That is all the application I ever had from him. Question. What did he say to that? Answer. He said that Dr. Hunter and himself would be the purchasers; himself principally, as he resided in Philadelphia, and he would call upon us. Question. Did he tell you what prices he was paying for coal for the government? Answer. He did not. Question. Did you communicate your price to him? Answer. No, sir. Question. Did he make any inquiry as to what was your price? Answer. He did not; but said that when he was prepared to make an inquiry he would call upon us. Question. Did he ever come after that to see you? Answer. No, sir. Question. What is the difference in the price of coal delivered, say COAL AGENCY. 91 at the works of Messrs. Merrick & Sons, in Philadelphia, and that delivered on board government vessels there? Answer. It could be delivered at about the same price on board of the vessels as it could be delivered to Merrick & Sons, at about the same price as it could be delivered on board vessels weighed, screened, and cleaned. The works of Merrick & Towne or Merrick & Sons, are on the railroad. This coal would come down to Philadelphia and pass along on the Southwark railroad immediately into their yard, and there is no cost except the mere hauling of the cars from the terminus of the railroad to their place, which is probably fifteen cents a ton; and that is less than the cost of transhipping coal on board the vessel. Question. You go upon the presumption that Merrick & Sons would receive their coal directly by railroad instead of by canal? Answer. Yes, sir; that is the way they have generally received it. Question. From whom do they generally purchase their coal? Answer. From various parties. We have furnished a firm in Philadelphia, or a coal man there, who has furnished Merrick & Sons; but he has a wharf in the vicinity of their foundry. We would ship it direct in boats to their wharf and it would then be carried to their place. Question. Then they do not buy of the original miners? Answer. Yes, sir, in some instances, but they did not of us then, though they used a quantity of our coal last year. We are shippers of coal as well as supplying retailers or distributors of coal in Philadelphia. We supply a large amount to the distributors there, as well as distribute it ourselves. Question. Have you ever seen Dr. Hunter, the United States coal agent, at Reading? Answer. I know him; he is a fellow townsman of mine. Question. Has he any qualifications, and if so what are they, for a coal agent? Answer. I should say he had none at all. Question. In your judgment is his office of any practical service to the government of the United States? Answer. Not the least in the world. Question. Who are then the real coal agents as the matter is now conducted? Answer. I should say that Tyler, Stone & Co. were. In explanation I would say that whenever Dr. Hunter, who is the coal agent, gets a requisition from the government for any quantity of coal he sends it to Tyler, Stone & Co., and they ship this coal and make out their bill upon a printed form that is established by the government. The bill is made out at the head of the form, and there is a certificate as follows, signed by Dr. Hunter: 92 COAL AGENCY. [In triplicate.] United States Navy Department, Bureau of Docks and Yards, To Dr. Appropriation.. I certify that the above coal, amounting to tons, shipped on board the, bound for, was purchased by me for the use of; and that the quantity and price are correct, and that it is of the best quality. United States Coal Agent. 185 Now I am very confident that Dr. Hunter never saw one ton of coal go aboard that ship or any vessel. By Mr. Groesbeck: Question. Or Mr. Smith either? Answer. Nor Mr. Smith either. If you ask me my opinion I would say that the coal agency as now conducted is a perfect sinecure. By the Chairman: Question. From whom do Tyler, Stone & Co. purchase coal? Answer. I think, as far as I have made any inquiry, from Richard Hecksher & Co.; and I believe that Dr. Hunter could have bought the same coal that Tyler, Stone & Co. sell to the government for $3 85 a ton from Hecksher & Co. for $3 25 a ton. Question. How much do Tyler, Stone & Co. pay Hecksher & Co.? Answer. Not over $3 25 a ton, I should say. Question. Delivered? Answer. Yes, sir. Question. On board the vessels? Answer. Yes, sir; that is, they purchase it at the mines at a certain price and then pay for the transportation to Philadelphia, and, I suppose they would not pay more than Richard Hecksher & Co. would ask to deliver it,on board the vessel. By Mr. Ritchie: Question. Then these other agencies of Dr. Hunter and Tyler, Stone & Co. would be perfectly superfluous, for Hecksher & Co. could furnish the coal themselves? Answer. I have no doubt that they would be glad to furnish this coal to the government for $3 25 a ton, if that question was an open one. Question. Is that a responsible house, a house of credit and standing? Answer. Yes, sir, as much so as any one in our trade, the largest one in our trade; and Mr. Nevin also offered coal to Dr. Hunter at a much less price than he is paying. COAL AGENCY. 93 Question. What do Tyler, Stone & Co. do with this coal? Do they buy it at the mines and then contract for its transportation? Answer. Yes, sir. Question. How much do they pay for it at the mines? Answer. I should say they get it for $1 75 per ton. Question. Now what would it cost for transportation from the mines to Philadelphia? Answer. It would cost about $1 35 per ton to transport this coal from the mines to Richmond. The cost of transhipment would be very little, because they have allowed them five per cent. on the whole amount of cost, because it is allowed by the miner and by the railroad also, and that would pay all the expense of transhipping the coal. It costs for transhipping the coal at Richmond probably ten cents a ton for manual labor, which I say would be fully paid by the five per cent. which is allowed by the miner and the railroad company. If the coal costs them $3 a ton at Richmond, then five per cent. off would be fifteen cents per ton, which would pay all the cost of transhipping the coal. If Tyler, Stone & Co. pay $1 75 a ton for this coal at the mines, and $1 35 to have it transported from thence to Richmond, then I do not think it could cost them more than $3 10 per ton on board the vessel, as the five per cent. off would pay all other charges. Question. Now, if they got $3 25 per ton delivered on board the vessel, would that be considered a fair and reasonable profit? Answer. Yes, sir; as it is without any risk at all; and I know that a coal dealer is always satisfied to sell at twenty cents profit per ton; and take'the risk of selling a man on four months' credit. I do that every day; I do it for parties who mine coal, and send it to me to sell for them. I charge them only twenty cents a ton, and take all the risk of collecting the money, while I furnish them the money right away. Therefore I say that twenty cents a ton is a full profit for any coal man. The profits on coal are smaller than the profits in other occupations, I would say, so far as the first dealers are concerned. Question. Is your name attached to that paper? [Showing witness "'appendix" to deposition of J. Nichols Beach.] Answer. No, sir. Question. Are you familiar with these signatures? Answer. Yes, sir; I am familiar with all of them. Question. Are they coal dealers? Answer. Yes, sir. Mr. Israel Morris, jr., I believe, goes out of it in the spring. I will state that this document was handed to me for signature. I told them I could sign it so far as regards the year 1858, but not for the year 1857, for, during a portion of 1857, Mr. Tyson, who was the coal agent at that time, did purchase coal from me. But every signature there is that of a respectable coal dealing firm, as much so as any we have. Question. Has this matter about the purchase of coal for the government been a subject of complaint among the dealers in Philadelphia? Answer. Yes, sir; it has been the subject of universal complaint amongst us. 94 COAL AGENCY. By the Chairman? Question. Is there anything further upon this subject that yon know? if so, you can proceed to state what it is? Answer. I cannot say further than my opinion as regards this matter is, that the only trouble among the coal men is that they have never been asked to even name a price for this coal. By Mr. Groesbeck: Question. Would it be proper for the government to make a coal dealer directly its agent? Answer. I should say it would be very improper. Question. Is it not necessary, then, to have some agent for this business? I am not speaking of the manner in which it is now transacted; but would you not consider it necessary, where so much coal is purchased, that the government should have an agent, or else buy its coal on contract? Answer. No, sir, I should not think it necessary to have an agents but it would be proper to have a coal inspector. Question. Would he not be an agent? Answer. No, sir, not necessarily so; the government could buy the coal by contract, and the business of this inspector would be to see that the coal was of the proper kind and quality, and that it went on board properly weighed and in good order. As an illustration of what I mean I will give my experience in this matter. A few years ago Mr. Lenthall, who was at the head of a bureau, sent orders to Mr. Tyson, who was the coal agent, to obtain bids for a certain quantity of coal that he wanted for his department. Mr. Tyson went around to a number of the coal dealers, and got bids from them; Mr. Lenthall, upon being informed of these bids, then took the matter entirely out of the hands of Mr. Tyson, the coal agent, and ordered him to give the contract to the lowest bidder, which happened to be Noble, Hammack & Co. Mr. Tyson came down to Philadelphia, to see that the coal was shipped properly. He found that it was not going aboard in that condition in which he claimed it should go aboard, and he accordingly remonstrated with them. But it was of no avail they paid no heed to him, but still shipped the coal in the same way, and Mr. Tyson then refused to sign the bills. The coal, it appears, did not give entire satisfaction, and there was considerable trouble about it; complaints came back that the coal had not been weighed; that it was dirty, &c. And I believe the bills were sent back, and not paid until some deduction was made. Now, as regards this office of coal agent, I will say that when it was first created, it was given to a Mr. Springer, who was a retired coal merchant. Question. How long ago was that? Answer. That was in Mr. Fillmorels administration. Mr. Springer, who was then appointed coal agent, was a retired coal merchant, who knew as much about the trade as any man in the trade. He knew all the different qualities of coal; all those suitable for steam purposes, whether at sea or on shore, as well as all those qualities COAL AGENCYe 95 suitable for other purposes. I sold Mr. Springer a few cargoes occasionally. While he was coal agent he would go around to the different dealers and get bids, and if my price suited him, he would buy of me, But I never shipped a cargo of coal for him but what he or his son was on the wharf to see that it was all weighed correctly and shipped in good order. Now, a coal inspector would do that. He should be a retired coal merchant, or one familiar with the trade, and we have hundreds of them in the Schuylkill region and in Philadelphia, who could attend to that matter very readily; and no doubt the coal would then be purchased at the lowest price; for it could be purchased by contract, and the inspector would see that it was delivered properly. Question. Was it purchased by Mr. Springer of the lowest bidder? Answer. Yes, sir. He would come into my office sometimes, and say, perhaps: "I have an order for a thousand tons of coal for Pensacola; what can you let me have it for?" I would put down the figures, and he might then say: "I can do better than that," and I would reply that I could not do any better. And perhaps the next time he came in my price would suit him, and he would then buy of me. I do not think, however, that T sold the government 2,000 tons a year while Mr. Springer was the coal agent. By Mr. Bocock: Question. What is the name of the coal that your company mines? Answer. We mine two kinds of coal; one we call the Mammoth Vein coal, and the other we call the Locust Mountain coal. They are two different kinds, both white ash, and both of very good quality, such as is used for steam purposes. Question. By what name is Hecksher's coal known? Answer. I think he mines two kinds of coal, known as the Blackheath coal and the Broad-mountain coal. Question. Is there a sort of coal called the Buck Mountain coal? Answer. Yes, sir; but Hecksher does not mine it. Question. Which of all the species of coal is considered the best for generating steam to run steam-engines? Answer. The Buck Mountain coal is considered the best. Question. To what sort of purchasers have you sold your coal? Have you sold it for engine purposes? Answer. Yes, sir; we have sold a great deal of it for marine purposes, and also to supply a large number of stationary engines in the city of Philadelphia. Question. Have you sold your coal to Merrick & Sons? Answer. They are using our coal now, but not directly from us; they obtain it through Mr. Morris. Question. You have supplied a good part of the coal used by that firm? Answer. Within the last year only. Question. Do you say that the cost of getting coal to their establishment is about the same as that of delivering it on board of government vessels? Answer. Yes, sir, if they were to buy it of first hands; but they 96 COAL AGENCY. buy it second-handed. We sell it to the dealer who supplies them, while we could sell it to them as cheap as we sell it to the dealer. By Mr. Groesbeck. Question. Why do they not buy it all at first-hand? Answer. I do not know. By Mr. Bocock. Question. What is the reputation of Merrick & Sons as shrewd business men? Answer. I suppose they have very few superiors. Question. Do they take good care of their interests? Answer. Yes, sir. Question. Do you ever buy coal of Hecksher & Co? Answer. No, sir. We never buy coal at all. We mine so largely that there is no necessity for our buying it. Question. Have you, or any of those named here, (referring to the "Appendix" to the deposition of J. Nichols Beach,) so far as you know, ever made any complaint to the Navy Department here that the coal agent did not consult the interests of the government in his purchases of coal? Answer. No, sir; I do not think any of them have. I do not know anything of the kind. I think I was in error in saying the coal should cost Merrick & Son the same price as that put on board of vessel. I have ascertained it cost them from 15 to 20 cents per ton higher. JNO. G. REPPLIER. No. 34.-TESTIMONY OF GEORGE P. NEVIN, PHILADELPHIA. FEBRUARY 3, 1858. GEORGE P. NEVIN called and examined: By the Chairman: Question. Where do you reside? Answer. In Philadelphia. Question. What is your business? Answer. The wholesale coal business. Question. How long have you been in it? Answer. I have been in the wholesale coal business, with the exception of some eight months, for nearly thirteen years. Question. Are you acquainted with Dr. Hunter, the agent to purchase coal for the government of the United States? Answer. I am. Question. Have you ever offered to sell coal to him? Answer. Yes, sir. Question. Since he has been the government agent? Answer. Yes, sir. COAL AGENCY. 97 Question. At what price did you offer to sell coal to him, delivered on board of vessels at Philadelphia? Answer. I offered to sell him Black-heath and Broad-mountain coal, delivered on board vessels at Philadelphia, at $3 20 a ton of 2,240 pounds. I offered to sell him Lehigh coal, delivered at Bristol, at $3 62- a ton of 2,240 pounds. I offered to sell him Lackawanna or Scranton coal, on board vessels at Elizabethport, New Jersey, at $3 40 per ton of 2,240 pounds. I made this offer to him by letter. I had one or two interviews with him in regard to coal, and as he never asked me the price, I volunteered it to him, and thought it would make it an inducement for him to buy. Question. Have you s copy of the letter you sent to him? Answer. I have; it is as follows: PHILADELPHIA, August 14, 1858. DEAR SIR: Herewith we hand you our card, and beg leave to say that we are prepared to furnish government, through you as purchasing agent, with first quality Black-heath, Broad-mountain, Lehigh, or Lackawanna coal, at the following prices: Black-heath and Broad-mountain at $3 20 per ton, 2,240 pounds, on board vessels here; Lehigh at $3 62- per ton, 2,240 pounds, at Bristol; Lackawanna at $3 40 per ton, 2,240 pounds, at Elizabethport. We feel very confident that it would be to the interest of government, as well as your interest, to give us a call before making any further purchases. Hoping to hear from you soon, yours, respectfully, NEVIN, SAWYER, & CO., 106 Walnut street. C. H. HUNTER, Esq., Government Agent, Reading, Pennsylvania. CITY OF PHILADELPHIA, S8. A. T. Fox, being sworn, says: That he is in the employment of Nevin, Sawyer, & Co., and that the foregoing is a true copy of a letter that was deposited in the Philadelphia post office by deponent on the 14th of August, 1858, directed to C. H. Hunter, government agent, Reading, Pennsylvania. A. T. FOX. Sworn to and subscribed before me, February 2, 1859. JNO. B. KENNEY, Alderman. Question. Did you ever have any conversation with Dr. Hunter on this subject? Answer. I had, previous to writing him that letter. Question. Did he ever purchase any coal of you? Answer. No, sir. Question. Did he ever assign any reason why he did not do so? Answer. He did, upon one occasion. 7 A 98 COAL AGENCY. Question. What was the reason he assigned? Answer. It was that his personal interest would not admit of it. He had previously told me that he would give me a part of the government orders to fill, without saying anything in regard to the price. Question. Do you know the persons who furnish the government vith coal in Philadelphia? Answer. I do, sir. Question. Who are they? Answer. Tyler, Stone & Co. Question. Is a Mr. Beach one of the firm? Answer. Yes, sir. Question. Did you ever have any conversation with him upon that subject? Answer. Yes, sir. Question. What was it? Answer. I have had several conversations with him in regard to furnishing coal to the government. I met him at Richmond one day, on the shipping wharf. I will say here that I went out of business on the 1st of January, 1858, and was out of business until about the 1st of July the same year, at which time I then formed a new connexion and went into business again. I was formerly one of the firm of Blakiston, Cox & Co., of Philadelphia, New York, and Boston. After I resumed the coal business I met Mr. Beach one day and told him that I was going to be a competitor for part of the government coal. He remarked that the amount was so small that it would hardly be worth dividing. I told him that did not matter, as we were willing to take whatever the agent would favor us with; that we were just again starting in business; that ours was a new house, and we wanted to get all the trade we could, and we should like to have some of this government coal to furnish, and would be willing to furnish it at the price that we would sell to other parties at. That was the amount of the conversation that passed between us then, and there has been very little said between us in regard to it since, until to-day, when we had some talk about it. Question. Do you know anything about the manner in which the present coal agent performs his duty; what he does, &c,; of your own knowledge? Answer. I cannot say positively, of my own knowledge, what course he pursues? Question. Do you consider the prices stated in your offer to him as living, remunerative prices, for a coal dealer to charge any one? Answer. Yes, sir. I should have been very willing to have furnished coal to the government at that price. Question. Do you know the quality of the coal required on United States vessels? Answer. Yes, sir. I think I have knowledge enough of the coal trade to know what is required for any purpose, whether it be bituminous or anthracite coal. Question. I am speaking of the kind used on board government vessels, for steam purposes-anthracite coal. Answer. The Black-heath and Broad-mountain coal is the best coal COAL AGENCY. 99 steam, I suppose; for heating purposes and heavy fires Lehigh coal is the best. Question. Then you think that those prices stated by you in your proposals are fair, remunerative prices? Answer. Yes, sir. I sold coal about that time at a less price than that. Other parties have sold it as low as $3 15. Question. Can you get any quantity of coal at the price you offered to sell it for? Answer. Yes, sir, I could. I would have been willing to have furnished any quantity-any reasonable quantity-any quantity that the government was willing to order. Question. Suppose you were to select with great care the qualities of coal you speak of as being the best for marine purposes, would it increase the price? Answer. No, sir, not any. We purpose having the coal we name a price for of the first quality and in the best order. Question. Did you ever see the coal furnished by this firm of Tyler, Stone & Co.? Answer. No, sir; I do not think I have ever seen it, and have never made it my business to examine it particularly. I know, however, the mines the coal is said to come from, and I know the quality of that coal. Question. Did you make this offer to Dr. Hunter merely to try him? Answer. No, sir; he had previously told me that he had intended to give us part of the government orders to fill. I have been acquainted with Dr. Hunter nearly twenty years, a part of that time intimately acquainted with him. He made an appointment to ecall at our office in Philadelphia about a certain time. I waited until after that time, and I then made up my mind that I would write to the doctor and name our price to him. Question. When was this? Answer. It was last August. Question. Does the price of coal in Philadelphia generally vary much? Answer. It varies some. There are different kinds of coaL There is the red ash coal, and the white ash. Question. I am speaking of the best quality? Answer. That is the white ash coal. The Black-heath and lBroadmountain coals are white ash, but they do not vary muchli in price. There may be a difference in regard to the preparation of the coal; the care taken in selecting and handling it. The coal comes down first in what is called the run of the mine, and there is, more or less impurity in it then. It is the business of the miner to select these impurities out, and then send the coal out of the mine. It is again selected over at the head of the dumping shutes where it is dumped from the cars. All coal properly handled must come in good order. If there is carelessness in handling it, of course there will be impurities in it. We purchase of the miners, the same as Tyler, Stone & Co., and as the shippers do, and it is our business to see that we get our coal well selected. 100 COAL AGENCY. By Mr. Bocock: Question. Have you purchased any coal of Hecksher? Answer. Not this last year, 1858. Question. Do you know what Hecksher's coal could have been bought for last year at his mines? Answer. Only what I have heard from others who were buying it. I know the general price of coal. Question. What does it cost to bring coal from Hecksher's mines to Philadelphia? Answer. We have nothing to do as purchasers of coal with the cost of transportation over the lateral roads. When the coal is delivered upon the main Reading road, as Hecksher' s coal is, at Schuylkill-haven, 4- miles below Pottsville, we have been paying from there to Philadelphia and Port Richmond;1 35 per ton, tolls, transportation and all, included. From this we get a reduction, or what is termed a draw back, of five per cent. That is, if we ship in cars coal to weigh 100 tons, five per cent is deducted from that for waste, &c., so we pay for transportation and toll at that rate, five per cent. off. Question. What is that five per cent. allowed for? Answer. To cover the waste by selecting and relanding at Philadelphia. This five per cent. also comes off the amount purchased of the miner, as he is always paid according to the railroad weight. By Mr. Ready: Question. For what do you have the coal delivered at Schuylkillhaven? Answer. We have bought coal, white ash coal at various prices at Schuylkill-haven, during the season. After I went into business again last year, I cannot state it exactly, but I do not think I paid for any white ash coal over $1 70 per ton, and some I bought for less than that. Coal and freights both ruled lower last year than we have had them before for a number of years. By Mr. Bocock: Question. Is there any difference in the different veins of the same sort of coal? For instance, is Black-heath coal taken from one vein different from Black-heath coal taken from another vein? Answer. There is but one kind of Black-heath coal. There are other veins which are called Black-heath by those who mine them for the purpose of giving them a character in the market. But we generally know what is Black-heath coal and what is not. Question. Would there be likely to be any difference in the quality at the different points where mined? Is there any difference between the Black-heath that is mined by Hecksher and that which is mined by some one else? Answer. No, sir; I never see any difference in it. Hecksher & Co. mine large quantities of coal, and of different kinds, and sell it to other dealers and shippers, and to the trade generally. The house I was formerly with, Blakiston, Cox & Co., have bought large amounts of Hecksher every year for the last three or four years, at least previous to 1858. I do not know what that house has done since 1858. COAL AGENCY. 101 By Mr. Ritchie: Question. You stated that Dr. Hunter stated he could not purchase of you because his personal interest would not permit it. Did he state what that interest was? Answer. He did not. By Mr. Bocock: Question. When did he state that? was it before or after you wrote that letter to him? Answer. I think it was after that time; but I will not be positive about that; I saw him both before and afterwards. By the Chairman: Question. Do you know how much Merrick & Sons, and other large purchasers of coal, in Philadelphia, pay per ton for their coal? Answer. I do not; I have not been supplying them with coal. Question. What would they pay, according to a fair market price in Philadelphia? Answer. I presume that Merrick & Sons, Phoenix Iron Works, and those large consumers could buy their coal from the mines about as cheaply as I could; probably they would have to pay 5 or 10 cents per ton more; not more than that. Question. Could they buy it, delivered at their works as low as $3 05 per ton? Answer, (hesitatingly.) I do not know but what they could during the last year; I do not know but what they might buy good steam coal for that; they probably could not buy the Monmouth-vein coal, or the John's coal for that. Question. Could they get good steam coal for that price? Answer. Yes, sir; they might; and first quality of steam oal might not cost them over $3 10 per ton; if they could not get it at that I could. By Mr. Bocock: Question. Have you ever made any complaints to the department about the manner in which coal for the government is purchased in Philadelphia? Answer. No, sir; I have not. G. P. NEVIN. 102 COAL AGENCY. No. 64. —W. W. W. WOOD, U. S. N., PHILADELPHIA. FEBRUARY 10, 1859. WW. W. W. WooD called and examined. By Mr. Bocock: Question. Have you been acquainted with the character and quality of the coal furnished by Tyler, Stone & Co. for the use of the vessels of the United States? Answer. Yes, sir; I have burned a great deal of that coal. I used it on board the frigate Roanoake during her last cruise. I think it was furnished by Tyler, Stone & Co.; at all events, it was furnished by the coal agent, and that company are his agents, so I have understood, and I suppose furnished this coal. I also had the inspection of a cargo of coal for the steamer Chapin. I have inspected various kinds of coal since I have been connected with the navy. Question. What is your opinion of the coal furnished during the past year, both in regard to the quality and its preparation? Answer. It was everything, so far as regards quality and preparation, that could be desired. I never saw superior coal to that furnished. I burned some 800 tons of it not a great while since. Question. Is not particular preparation necessary to fit coal for government use on board steamers? Answer. Yes, sir, an extra screening is generally given it; at any rate, I always required that an extra screening be given it when necessary. It is very important, on board sea-going steamers, to have our bunkers filled with coal free from impurities. We generally give in our log-books-at least I have always done so, in order that the department may be able to judge of the qualities of the various kinds of coal used-the residuum after combustion. This residuum sometimes varies from 10 to 40 per cent; therefore coals that give a residuum of 40 per cent. have 60 per cent. of available fuel. You can appreciate the importance of having available fuel, to say nothing of the labor of throwing these impurities into the furnaces and then tumbling them overboard again. Question. Do you say that some coals only furnish available fuel to the extent of 60 per cent.? Answer. That is all that some coals furnish. Question. In that case there would be a clear loss to the government of 40 per cent. of the coal purchased? Answer. Yes, sir. Question. How much was the residuum in the coal that has been furnished during the last year? Answer. I think not more than 10 or 12 per cent., to the best of my recollection, of the coals of which I have any knowledge; not any more, I think. Question. How does it compare with coal heretofore furnished? Answer. The coal I inspected last year was prepared with more care than any I ever used before, as a general thing. Question. Is any particular labor necessary to fit coal for govern COAL AGENCY. 103 ment use, in order that this great amount of residuum should not be left in the furnaces? Answer. It is necessary to have the coal broken into proper size, then to screen it, and deliver it in a cleanly condition. Question. How much per ton would you estimate this extra labor to cost in preparing coal for government use? Answer. I should suppose that it could not be done for less than 30 or 40 cents per ton; I have, however, never taken the trouble to inform myself about the prices. I know I always have had the coal screened at the expense of the government, if it was not delivered in a cleanly condition. We generally inspect these coals when received; and when coals are not in a proper condition to be used in consequence of a want of screening and proper preparation, we generally do it; but the expense of doing it I am not so well informed about. Question. Is there any loss to the government, when you have to send coal from one point to another, in case of this large residuumany loss other than the loss in coal? Suppose you were fitting out a ship for sea, and you were going to send coal to a foreign station, would this residuum in the coal which you speak of be merely a loss of 40 per cent. upon the value of the coal, or would there be some additional loss? Answer. Under such circumstances as these it would be an additional loss, inasmuch as-or, probably, it would be this way. Question. I want to direct your attention to the subject of freight upon this residuum. Answer. Certainly; in that respect, of course, it would be an additional loss, for you would have all the tons of impurities to pay freight upon, the same as upon so many tons of pure coal, while it would not be available fuel. Question. And then is it not necessary to have as much available fuel as possible within the smallest possible space? Answer. Yes, sir, it is of importance to have all the available space filled with available fuel. In fact, with impure coals, I would not forego having them screened and properly prepared whenever it could be done. Even on a foreign station I would rather take my own men on shore to screen them, previous to bringing them on board the vessel, so that I could have the bunkers filled with available coals, to have it taken on board without that additional cleansing process, and have the bunkers filled with a mass of unavailable fuel; the coal would be inferior to that extent. Question. Have you been acquainted with the price of coal, generally, in Philadelphia, during the last year? Answer. No, sir, I have not informed myself upon that subject, generally. Question. Are you prepared to say what the coal, delivered to the government the last year, has been worth; what would be a fair, reasonable, price for it? Answer. I am not prepared to answer that question, because, as I have said before, I have had very little to do with money matters outside of the vessel, as little as possible, and, therefore, this information does not come within my line of duty; I do not attend to money mat 104 COAL AGENCY. ters except when required to do so, and I have never informed myself upon this subject. By Mr. Ritchie: Question. Do you know anything about the process of breaking and screening coal; whether it is done in Philadelphia or at the mines? Answer. Yes, sir; it is done at the mines. Question. Have you ever been at the mines and seen it done? Answer. No, sir, but I have made myself familiar with coal mining operations. Question. Is not this coal broken and assorted into different sizes and screened at the mines? Answer. As a general thing, I think it is to a certain extent; but then, nevertheless, it requires additional care in handling and delivering in order to make it what it should be, in many cases, for steamer's use; by screening and handling, I mean throwing out the dirt and fine coals, and slates, and other impurities. WM. W. W. WOOD, Chief Engineer, U. S. Navy. No. 65.-GEaRGE F. TYLER, PHILADELPHIA. FEBRUARY 10, 1859. GEORGE F. TYLER called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In Philadelphia. Question. What is your business? Answer. I am a dealer in coal. Question. Who are your partners? Answer. Frederick Tyler, my father, C. Nichols Beach, and William E. Stone. Question. How long have you been furnishing coal to the government? Answer. I confess I am unable to give you the precise date. We furnished some under Mr.Fillmore's administration for the useof the navy. Question. Have you been furnishing coal to the government, more or less, ever since that time? Answer. Yes, sir. Question. Have you any recollection of the general run of prices from that time down to this? Answer. Do you mean the average price from that time till now? Question. Yes, sir; how have prices ranged? Have they gone down or up since that time? Answer. Coal is lower now than it has averaged since that time. Question. What has been that average price? Answer. I should suppose that the average price in Philadelphia of steamers' coal has been considerably over $4 a ton. There have been fluctuations in the price during different years. In some years it has been higher, and in others lower. But the average price of coal, to my knowledge, has been more than $4 a ton. COAL AGENCY. 105 Question. Did your firm make any arrangement with Dr. Hunter to furnish coal to the government? Answer. I hardly know how to designate the transaction; when Dr. Hunter was first appointed to the office of coal agent he came to us, knowing that we had been furnishing coal for the use of the navy, and after a full discussion of the matter, we agreed to furnish him what coal he might require during the year at a fixed price. There was an understanding, although there was no formal contract made, that he should take the coal from us. Question. What was the price agreed upon? Answer. The price we fixed was $3 85 a ton. If the price of coal advanced, we were not to charge any more than that for it. That contract or agreement was made soon after the panic of 1857, when everything had gone down to the lowest point. It was immediately, too, after a reduction of 40 cents a ton had been made in the price which the government had been paying; and it seemed probable, at least that was the view he took of it, that if everything else improved as it was likely to do, coal itself would be higher. That was the view we took of it also; that if there should be any change in the price of coal, it would advance rather than recede. At that time it was looked upon as an advantageous arrangement for the government. Question. Have you had a supervision of the coal which you have furnished to the government of the United States under this contract with Dr. Hunter? Answer. Yes, sir; there has been an accurate and strict supervision of it. Everything has been done with the greatest care. Question. Which member of your firm has attended to this supervision principally? Answer. My own self. Question. What has been the character and quality of the coal which you have delivered? Answer. It is a kind of anthracite coal mined in Pennsylvania that we consider the best adapted for steamers' use. We have not confined our purchases to coal from any one mine, but have bought the largest proportion of our coal, however, from Hecksher & Co; what is called the Black Heath coal. But we have also purchased a considerable amount from other individuals, when, from causes that we could not foresee, we could not obtain the precise article we wanted from Hecksher & Co., or when we consider some other coal better adapted to the purposes for which it was required. Question. What has been the price of coal at the mines during the last year? Answer. From $1 75 to $2 20 a ton for such coal as we have shipped for the Navy Department. The coal that we paid $2 20 a ton for was coal that we purchased of Repplier & Co. to fill an order where their coal had been theretofore used, and to which use it seemed particularly adapted. I therefore bought it of them at that price, and then they assured me that the price which they charged me was less than they had before sold any for. Question. Is the Mr. Repplier of that company the one who has testified here? 106 COAL AGENCY. Answer. Yes, sir. Question. Did he say that $2 20 a ton was lower than his usual sales? Answer. Yes, sir; he said that the majority of his sales had been made at $2 40 a ton. He had sold some at $2 30, (the least he had sold any for before,) out of which he made a commission of ten cents a ton. But as I gave him the cash in hand he would waive that commission in my case, and simply get a market for his coal. Question. What was the freight on coal from the mines to Philadelphia? Answer. It was $1 35 a ton by railroad from Schuylkill Haven. And that reminds me of another point I would like to state. It was expected that before the close of the year the Reading Railroad Company would advance their rates of transportation, as it had been always customary for them to do. As it happened, however, their rates were uniform from about the middle of March. Question. I want to know if there is any extra preparation put upon this coal to fit it for government use? Answer. We bestowed upon it a great amount of labor; more than upon any other coal we handled. We felt that it was important and necessary to furnish coal that was entirely pure. Even the best coal that we bought we always re-handled, and sometimes at a very great expense. We actually bestowed more labor and expense upon this coal than upon any other coal that we shipped. Question. What particular preparation did you bestow upon it? Answer. The labor we bestowed upon it was involved in selecting the slate from the coal. There is no coal that comes from the mines entirely free from impurities. It is mixed with what we call " bone" and slate. "d Bone" is an earthy substance that mixes with the coal in the vein, and which it is exceedingly difficult to separate from it. The slate that is in the coal, of course, it is important to remove, for it will not burn; it makes weight, increases the bulk, and diminishes the value of the coal. Question. Where was this work done? Answer. On our wharf at Richmond, after receiving the coal from the mines. Question. What do you estimate this extra labor to have been worth? Answer. I should say that, taking the whole of it into account, twenty cents a ton would be a fair average of the extra expense. Some of the coal we have not bestowed so much expense upon, but upon other portions of it we have bestowed more expense. Some of it we have bestowed an expense of fifty cents a ton, including the waste and all; but that was not an av3rage. By Mr. Ritchie: Question. Was this extra labor more than you bestowed upon coal for other sea-going steamers? Answer. By other parties do you mean? We had no other trade for steamers. I mean, that this expense was additional to that which we put upon coal which we furnished to our other customers. Question. What additional labor did you bestow upon this coal over that which was bestowed upon coal furnished for other sea-going COAL AGENCY. 107 steamers-for instance, the Collins and California lines-by those who furnished coal for those lines? Answer. I should think it was certainly twenty cents a ton. By Mr. Bocock: Question. Did you sell coal to other parties than the government during the last year? Answer. Yes, sir; but not for steamers' use, however. Our other trade was with manufacturers and with dealers. Question. I would like to know how your profits upon your trade with the government compared with your profits upon your sales to other parties? Answer. I should think they were more. Question. More profits upon the coal sold to the government? Answer. Yes, sir. I think it paid us better than our other trade. It was a business upon which we bestowed more care and labor, and it did pay us a better profit than our other business did; otherwise we should not have been paid for devoting the time and attention we did upon it. Question. Was it a better profit, considering the cost of the coal and the amount of labor you bestowed upon its preparation? Answer. Yes, sir; I should think the government contract was a more profitable one to us than the average of our other business. Question. Did you have contracts with private individuals that paid you as much profit as this? Answer. We have frequently sold coal that paid us better than the coal that we furnished to the government. Question. During the last year? Answer. We made other sales that paid as well; I cannot say that we had any that paid us better. There is one point that I wish to add in explanation, and that is, in buying the particular kind of coal required for the Navy Department it was impossible for us to obtain from any one miner all of one size. The coal is broken at the mines by machinery; and when one size is made, several other sizes are made also, and no miner can afford to sell altogether one size alone. We were obliged, therefore, to take from him other sizes of coal also, which we sold sometimes profitably, sometimes merely for cost. Therefore it is I say that the other parts of our business were not so profitable. Question. What price did you get for the coal furnished the government coal agent? Answer. Up to March 30, 1858, he paid us $4 25 a ton. Question. What agent was that? Answer. Benjamin Tyson. He then ordered two cargoes from us; one was shipped in May, and the other the 7th of June, after the appointment of Dr. Hunter, for which he paid us only $3 85 a ton. Question. Who was the first coal agent appointed? Answer. Benjamin H. Springer. Question. When was he appointed, and by whom? Answer. I think he was appointed during Mr. Fillmore's administration, and I have an impression that his commission was made out by Mr. Kennedy, as Secretary of the Navy. 108 COAL AGENCY. Question. Did you furnish coal to him, as agent for the government? Answer. Yes, sir, to a considerable extent. Question. Are you able to say what you got for that coal furnished to him? Answer. I could not tell without reference to my books. Question. Was it more or less than $3 85 a ton? Answer. My impression is that it was considerably more. Question. Do you know George P. Nevin, of Philadelphia? Answer. Yes, sir. Question. How long has he been in the coal business? Answer. I should suppose for some three or four years; but about a year ago, I should think, he dissolved partnership with the firm with which he was then connected, and he was then out of busines for a considerable length of time. He resumed business again in September last-I believe it was in September-it was in the latter part of the summer or early in the fall. Question. Was he a candidate for the office of coal agent? Answer. He was, to my own knowledge. Question. Did he make any proposition to you, or to M ach, to back him for the coal agency? Answer. He made a proposition to me that I should induce Mr. Beach to assist him in obtaining the appointment. Question. What consideration did he offer? Answer. That Mr. Beach should furnish the coal to be purchased by him for the use of the Navy Department. Question. At what price? Answer. No price was named. Question. Why is it necessary for the coal agent to purchase his coal of any particular party? Why could he not send to the mines and purchase his coal directly from the miners, and have them send it down to Philadelphia and deliver it on board the vessels? Answer. That is practically impossible in the way in which business must be managed with the Navy Department; their orders are always for one particular kind of coal, often requiring a very large amount to be furnished immediately. No one miner could furnish all that coal instantly, as it is often required. It is, therefore, important for the coal agent to have an arrangement with some house which controls a large amount of coal which they can furnish him at very short notice. By Mr. Ritchie: Question. What is the use of a coal agent at all; why not let some particular house make an agreement with the department to furnish the coal as they would to the coal agent? Answer. I think that an officer who would do the duties that he is delegated to do would be necessary, because the Navy Department would hardly be willing to pay the bills for an article that they have never seen, without having the certificate of some officer that the article as furnished is of the quality called for. Question. Does the coal agent inspect the coal? Answer. That is his duty. COAL AGENCY 109 Question. Has he ever done it? Answer. He has not done it very frequently; in a great measure the business has been done by us, and the coal agent has not seen the coal. Question. Then, in your case, it would be just as well for the department to do business directly with you? Answer. Yes, sir; I suppose it would. By the Chairman: Question. What is the form of the certificate signed by the coal agent? Answer. It is that the coal is of the best description adapted t) steamers' use, and is of the quantity certified to. In regard to the quantity he has the guarantee of the bill of lading which makes the vessel responsible for delivering the amount of coal therein specified. Question. Did Dr. Hunter ever see a single ton of this coal put on shipboard? Answer. Not to my knowledge. Question. You have spoken about a reduction in the price of coal from $4 25 to $3 85 a ton; did not the transportation companies at the same time reduce the price of freight upon coal forty cents a ton? Answer. They reduced it twenty cents a ton. Question. Was there no further reduction? Answer. No, sir; during the year 1857 the nominal rate of transportation was forty cents a ton higher than in 1858; but to equalize the business with other regions the Reading railroad allowed a drawback of twenty cents a ton upon all cargoes shipped during the year, so that the rates of transportation were really reduced twenty cents per ton. When we obtained $4 25 per ton for our coal we obtained a drawback from the company of twenty cents a ton, so that it was equivalent to $4 45 a ton without any drawback. Afterwards the Reading Railroad Company made their rates uniform. Question. Did the price of coal in 1858 go down below the price of 1857? Answer. I should think that the price of coal in the spring of 1858 did not differ materially from the price of coal in the spring of 1857; but it was a little lower in the spring of 1858 than it was in the fall of 1857. Question What kind of coal was it that Repplier & Co. furnished to you? Was it not a Lehigh coal? Answer. It was Locust Mountain coal. Question. For what purpose was it used? Answer. It was sent to the naval hospital. Question. It was used there for a special purpose? Answer. Yes, sir. Question. Could you not have bought ordinary Schuylkill coal at that time from Repplier & Co. for $3 20 a ton, delivered in Philadelphia? Answer. I do not think I could. I never knew them to sell that kind of coal. They sold exclusively their own mining. Question. How much was the particular quality of coal furnished you by Repplier & Co. worth more than the ordinary Schuylkill coal? 110 COAL AGENCY. Answer. Adapted to the same purpose? Question. I want to know the market price of this particular quality of coal over that of ordinary Schuylkill coal? Answer. I should think it was about 20 cents a ton. Question. It was Schuylkill coal that you bought for supplying the government? Answer. Yes, sir, mostly. We bought some Lehigh coal in a case where we thought the vessel required a very hard coal. Question. How much Lehigh did you buy? Answer. I think that in 1858 we bought some 1,500 tons, which we sold the Navy Department. Question. Was that all? Answer. Yes, sir. Question. What is the difference in price per ton between Lehigh and Schuylkill coal? Answer. There are various qualities of Schuylkill coal. Question. I mean ordinary qualities. Answer. For ordinary qualities I should think the difference in Philadelphia would be in the neighborhood of 25 t'o 30 cents a ton. Question. The Lehigh coal would be of the higher price? Answer. Yes, sir, it would be higher than ordinary qualities of Schuylkill coal. Question. The ordinary qualities of Lehigh coal is higher than the ordinary qualities of Schuylkill coal? Answer. Yes, sir. Question. Was this coal of Repplier & Co. a Schuylkill coal? Answer. Yes, sir. Question. Of the highest grade? Answer. Yes, sir. Question. How much did you buy of them? Answer. Something over 400 tons. Question. Did you ever buy any other coal from other parties? Answer. We bought one lot at $2 15 a ton. Question. How much did you buy at that price? Answer. One thousand tons. Question. Of whom? Answer. Of Kane, Hacker & Co. Question. For what purpose? Answer. For steamship purpose. Question. Was there any other case in which you paid more than $2 per ton? Answer. No, sir. Question. What has been the average price of coal at Schuylkill Haven since the 1st of July last? Answer. I should think about $1 85 a ton would be the average; if anything different it would be a little higher than that; it would not be lower. I mean that was the average price for coal that we bought for this specific purpose. We have bought coal for a less price. Question. I mean the particular qualities used by the government? COAL AGENCY. 111 Answer. About $1 85. By Mr. Ritchie: Question. Is there a discount of 5 per cent. upon the price of coal and upon its transportation? Answer. There is nominally that discount; but practically the average discount has not been 2- per cent.? Question. Why is that? Answer. I suppose it arises from the difference in weighing coal in long trains of twenty or thirty cars at a time at the mines, and weighing it by single cars at Port Richmond; and then there is also a waste between the mines and market. The last time we tested the matter the result satisfied us that the miners' scales were wrong, and did not give us full weight. It was a matter of complaint in the trade that the coal did not hold out in weight. By the Chairman: Question. In other words, the drawback does not much more than cover the waste? Answer. No, sir, it does not. It does not cover the waste of coal handled as much as we have to handle coal shipped for the Navy Department, throwing out all the impurities and dirt. All that amounts to more than the allowance we receive from the railroad company. Question. You think this drawback or allowance would not cover all the waste that practically occurs in coal sold to the government? Answer. No, sir, it would not. FEBRUARY 11, 1859. GEORGE F. TYLER recalled. By Mr. Bocock: Question. What profit did you make upon the coal delivered to the government in 1858? Answer. My impression is that it was in the neighborhood of 10 per cent. By Mr. Groesbeck: Question. Did the former inspector, Mr. Tyson, inspect the coal? Answer. We sold him a large portion of the coal he purchased; and of that, to my knowledge, he never inspected but one cargo. Mr. Springer, the first agent, was in the habit of inspecting the coal carefully. We sold him a considerable amount. [The witness also made the following explanation:] In reference to the 10,000 tons of coal purchased of Cain, Hacker & Cook, I now remember that it was never delivered to us; they notifying us, after a good deal of delay, that they could not furnish it of the kind and quality required. GEO. F. TYLER. 112 COAL AGENCY. No. 66.-DILLER LUTHER, PHILADELPHIA. FEBRUARY 10,1859. DILLER LUTHER called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In Philadelphia. Question. What is your business? Answer. I have been engaged in the coal business for some years past. Question. Have you been well acquainted with the prices of coal during the year 1858? Answer. Yes, sir. Question. Do you know anything of the quality of the coal furnished by Tyler, Stone & Co. during that time to the United States government for steamer purposes? Answer. I have no personal knowledge of it; I have heard of it. Question. Are you acquainted with the Black Heath and Broad Mountain coal mined by Hecksher & Co.? Answer. Yes, sir. Question. Do you know anything about any peculiar preparation necessary to fit that coal for steamers' uses? Answer. I believe the agent of the government does require, and has always required, that the coal shall be prepared with more care for the government than is generally bestowed upon coal for other purchasers. Generally, higher qualities of coal have been selected tor government purposes, and is prepared with more care, and consequently there is more expense bestowed upon it. There are various qualities of coal, as there is of anything else, and there are various prices; there is a cheap coal and a dear coal. Hecksher's steamboat coal has a high reputation in the market; he prepares it specially for steamers' uses-steamboat size as it is called-and he gets a higher price in consequence of that preparation. Question. What would have been a fair price for such coal, thus prepared for steamers' uses, delivered on board the vessel in Philadelphia, in May, 1858? Answer. I am scarcely able to say what would have been a fair price throughout the season. I might tell what it was at the commencement of the season. Question. What was it in May or June of last year, at the commencement of the season? Answer. I suppose that in May or June it was $3 50 or $3 60, and so on up to $3 85 a ton. Question. Did it fall after that time? Answer. Yes, sir; coal declined in price in the middle and the latter end of the season. Question. How much? Answer. Some 15 or 20 cents a ton. Question. When you speak of coal being $3 50, $3 60, and $3 85 COAL AGENCY. 113 a ton, do you allow a fair profit to a coal dealer who would purchase of Hecksher & Co. to furnish to the government? Answer. When I speak of $3 50 a ton I speak of what I got for ordinary sizes of coal, such as individuals take. I had, myself, an order from the War Department-propositions were received by the department, and my bid was the lowest. Proposals were issued in the month of May for furnishing 1,600 tons of coal, to be delivered at West Point. There was considerable risk in making bids for this coal in the matter of freights, &c. Freights outward, from Philadelphia, had commenced in the early part of the season at a very low rate, and it was apprehended that they would advance. At all events in putting in for a bid of that kind that matter was taken into consideration. Freights, however, remained low during the entire season. A large part of this coal was of a similar kind to that furnished the Navy Department. The price I bid yielded me $3 85 a ton. By Mr. Ritchie: Question. Was this $3 85 a ton the price in Philadelphia, or did it include freights to West Point? Answer. It netted that price at Philadelphia; the price at West Point, was $4 70 a ton. Question. Wtas there any statement in your bid of the price in Philadelphia? Answer. No, sir; the bid was for compensation for delivering the coal at West Point. Question. It included freights and all the risks of shipping from Philadelphia to West Point? Answer. Yes, sir. By Mr. Bocock: Question. Were there a number of bidders for that contract? Answer. Yes, sir. Question. And you got it as making the lowest bid, and it netted you $3 85 at Philadelphia? Answer. Yes, sir. By Mr. Ritchie: Question. How do you mean that it netted you $3 85 at Philadelphia? Answer. I mean that if you deduct from the $4 70 a ton for delivering it at West Point, the freight paid from Philadelphia to West Point, it would net me $3 85 a ton on board ship at Philadelphia. By Mr. Bocock: Question. State, if you know it, the market price at Philadelphia, at that time for such qualities of coal for steamer purposes? Answer. I have no knowledge of that kind of coal; I had no orders for it myself, and did not deal in it except in the particular case I have mentioned; I can give my opinion as to what I think would be realized from the sale of such coal; I have heard the price of a few cargoes sold very early in the season; that was lump coal, similar to steamer coal, but not broken up as for steamers. Question. What was that? Answer. That was $3 75 a ton aboard the vessel; that was sold, however, just as it came from the mines, being merely the large pieces of coal picked out. 8 A 114 COAL AGENCY. Question. What was the probable price of coal to be furnished to the government for steamer purposes? What would you have considered a reasonable price to furnish it at if you had been asked to submit a bid for it? Answer. It would afford me a very narrow margin for profits if I offered to furnish steamboat coal at $3 75 a ton, which is what I would charge in the business; leave me a margin, perhaps, for a profit of 5 or 10 per cent. I think that $3 85 was not too high a price. Coal has been exceedingly depressed in price, and the producer has not got the cost of it sometimes. By Mr. Ritchie: Question. Is there any advantage in dealing with the government rather than with general dealers in the trade, in regard to payment? Answer. There are divided advantages. Question. Then if the matter was carefully attended to, could not the government get their coal at a less nominal price than what it is quoted at as market prices? Answer. I have no doubt that the government is always able to buy their coal at very great advantage. By the Chairman: Question. Are you a dealer in coal? Answer. I am a miner and dealer of coal. Question. What was a fair market value of such coal as would be fit to use in government sea-going steamers, in June, July, and August, 1858? What could it have been bought for at Philadelphia, the fair market price at that time? Answer. Is the question, what could it have been bought for, or what was its fair market value? Question. What could it have been bought for by a person charged with the duty of selecting a good quality of coal? Answer. I suppose that single cargoesQuestion. I mean 2,000 or 3,000 tons, or more, just as it would be likely to be called for by the government? Answer. I have no doubt that parties, in order to get hold of government contracts, would have made bids at low rates to furnish single cargoes. But I take it that there are very few parties who would undertake to supply coal through the entire season, such coal as the government requires, with such care bestowed upon it as the government requires, even last year, for less than from $3 50 to $3 75 a ton. Question. I will ask the question again, and I want you to answer the question which I ask you. What could the article of coal required and used by the government be purchased for in June and July last? I want to get at that point. We have examined several witnesses upon that point, and I wish to get at it now. Answer. In small quantities or in very large quantities? Question. Say a thousand tons or so. What could the government have got it for in open market? Answer. I think it could have been purchased for $3 50 a ton; I do not think it could have been purchased for less than that. Question. What could coal have been purchased for in open market, COAL AGENCY. 115 delivered on board vessel at Philadelphia, of such quality as used by the government, per cargo? Answer. I have no doubt there are parties there who would have sold it for $3 40 to $3 50 a ton. I would not like to have undertaken myself to have furnished any large supplies at any such price. Other parties might be able to do so, as some have larger facilities than I have. Question. What was the fair value of such coal at Schuylkill Haven, during the last summer or fall, as is used by the government? Answer. I think this description of coal used by the government commenced at about $2 10 per ton and then declined down to $1 80, perhaps. Question. What is the cost of the transportation of the coal from Schuylkill Haven to the docks in Philadelphia? Answer. $1 35 a ton. Question. What drawback is allowed upon that? Answer. No drawback is allowed upon that. Question. Some of the witnesses have mentioned about drawbacks being allowed; how is it about that? Answer. It is not allowed by the railroad company. There is a drawback of some fifteen cents a ton allowed by the navigation company for reshipping at Philadelphia. They charge sixty-five cents per ton for tolls, and then the freight has been from sixty cents to seventy-five cents a ton, to Philadelphia. And the navigation have allowed fifteen cents per ton for reshipping it at Philadelphia. Question. Then the tolls and transportation have been about $1 35 a ton? Answer. It has been that during the summer for the railroad; the canal rates have varied a little. By Mr. Bocock: Question. What would have been a fair market value during the spring and summer of 1858 for such coal as the government uses, provided a man had obligated himself to be in readiness to furnish any amount the government might call for upon short notice- any reasonable quantity of coal the government might call for; such quantities as the government did in fact use. Answer. I would not have undertaken to have supplied it, with such despatch, at less than from $3 75 to $3 85 a ton. When I said that a man might have bought it for $3 40 or $3 50 a ton, he could not buy the quantities the government orders of one single individual or firm alone. None of them ever have that amount on hand. He might get it, perhaps, by going around to several different houses, taking half a cargo of this one, a cargo of that one, and, perhaps, two cargoes of another. What I mean by a cargo is 200 to 300 tons, which is the usual size of a boat load. Question. Do dealers in Philadelphia often have a quantity of coal on hand such as the government would need for its uses? Answer. No, sir; I have never seen any of them have more than five hundred tons of it on hand at a time in my life, never. Question. Could an agent of the government safely rely upon buying up in market in that way-that is, going around and buying it 116 COAL AGENCY. of this and that one-such coal as the government would need; or would it be necessary, in order to be able to furnish the coal as called for, in the quantities called for, to make an arrangement with some person to keep on hand such coal as the government may need? Answer. The manner of supplying coal to the government has changed somewhat, I think, since I had a knowledge of it. I formerly did supply the government with some coal, but I have not done so for a number of years past. The way it used to be, when we got an order, it would be in this way: They would want a thousand tons of coal shipped to a certain point, and we would be allowed a month to do it in, perhaps. That would give us, or any other house, or any two or three houses, time enough to get down from the mines the article wanted. But if the government came to me without any previous notice and said, we.want you to ship a thousand tons of steamboat coal next week, I could not do it. Whether such despatch is necessary now or not I do not know. But if an order was given to me to ship 1,000 or 1,500 or 3,000 tons of coal, and I was allowed three weeks or a month to do it in, I could get it; but I would not have it on board at the time. Question. Suppose the government should want some 10,000 tons, how long would it take a man who did not have it on hand to get ready that amount of coal suitable for government purposes-steamboat coal? Answer. I should suppose that it would take any one man several months, unless he had had some previous knowledge of what was wanted. FEBRUARY 11, 1859. DILLER LUTHER recalled. By Mr. Bocock: Question. How long have you been engaged in the coal business, and what is the extent of the business you have done in that line? Answer. I think I have been in the business nearly twenty years. I have been engaged in the mining department about twenty years. We combined the commercial department with it about ten years ago. Question. To what extent have you been engaged? Answer. To a very large extent. Question. Whom have you supplied with coal? What class of purchasers have you had? Answer. The principal dealers in the eastern markets for domestic use; and also the iron establishments, to a considerable extent. Question. Can you give us the difference in the market price of coal between 1857 and 1858? Answer. I think about 30 cents. It was 30 cents higher in 1857. Question. Was that the general average of difference on different sorts of coal? Answer. Yes, sir; about 20 cents difference of transportation, and 10 or 15 cents difference in the price of the coal itself. D. LUTHER. COAL AGENCY. 117 No. 67. —CHARLES P. HAYES, PHILADELPHIA. FEBRUARY 10, 1859. CHARLES P. HAYES called and examined. By Mr. Bocock: Question. Where is your residence? Answer. In Philadelphia. Question. What is your business? Answer. I am a coal merchant. Question. How long have you been a coal merchant in Philadelphia? Answer. Since 1847. Question. Do you know anything about the prices of coal during the year 1858? Answer. Yes, sir. Question. Are you acquainted with the description of coal used by the government on board steamers? Answer. I am not particularly acquainted with it. Question. Do you know anything about the Black Heath and Broad Mountain coal mined by Hecksher and others? Answer. I know it to be a coal of a very good quality. Question. Do you know anything about the principal preparation of it necessary to fit that coal for government uses on board steamers? Answer. I know that the coal can be prepared at the yards in Philadelphia for steam purposes, so as to make the quality much better than that which is generally shipped. Question. I want to know if a paper containing the affidavits of sundry coal merchants in Philadelphia, stating at what price they would furnish coal, was handed you for your signature? Answer. Yes, sir. Question. Did you sign it? Answer. I did not. Question. Why not? Answer. Because I could not have contracted to supply the coal at the prices named then. Question. Are you able to tell what would have been a fair market price during the last spring, summer, and fall, of Black Heath and Broad Mountain coal, fitted for government use in generating steam, and delivered on board the vessels at Philadelphia? Answer. I am not able to say what was the actual price at which it could have been delivered; but the coal that I prepare, and sell, I know I could not sell at less than $3 75 a ton, to pay a good profit. Question. What sort of coal do you prepare and sell? Answer. Carter's Lehigh or Greenwood coal, and other kinds. Question. What did you sell that coal at? Answer. I sold some in Boston during the year 1858, without any extra preparation, at $3 65 a ton; and I sold several lots at $3 75. Question. The last was with preparation? Answer. Yes, sir; ordinary shipping coal. Question. When you say that you sold some in Boston for $3 65, did that include the price of freight from Philadelphia to Boston? 118 COAL AGENCY. Answer. No, sir. Question. What was the coal you sold at $3 75 a ton? Answer. We named the price at which we would put the coal on board the vessel at Port Richmond or Philadelphia; Port Richmond is where we get it. The price I have named is the price at Port Richmond, on board of vessel. Question. Do you know anything about the price of Repplier's coal during the last year; did you buy any of him? Answer. I bought none of Mr. Repplier; but on two occasions I called to ask the price of their coal, but they charged me a price that did not leave me any margin for profits. Question. What did he charge? Answer. He charged, I think, $2 30 for his coal at the mines, which was 30 cents more than I could get coal at which I thought was equally good; therefore I did not buy it. Question. Where are Repplier's mines; those which he works? Answer. At Ashland, I believe; I think so. Question. What is the price of freight from that point to Port Richmond or Philadelphia? Answer. I do not exactly know; I could easily ascertain, but I do not know at the present time; about $1 35 a ton, I think. Question. How does such coal as you sold in Boston compare in value and cost with the coal furnished to the government-Hecksher's Black Heath and Broad Mountain coal-was it of a better or of an inferior quality? Answer. I do not think it was better than good Black Heath. Question. Would you be able to say about what profit Tyler, Stone & Co. would be able to make on that coal at $3 85 a ton? Answer. If they prepared their coal as it should be prepared for generating steam, they would make but a small profit; they would make but a fair profit. Question. What would you call a fair profit? Answer. Certainly something more than we have been getting ourselves of late years. Question. How much a ton? Answer. I should think about thirty or forty cents a ton would be a fair profit; that would be about ten per cent. By the Chairman: Question. You sold and sent to Boston the Lehigh coal? Answer. No, sir; I sold Carter's Greenwood. He calls it a Lehigh coal, but it comes from the Schuylkill region. He calls it Carter's Lehigh or Greenwood coal; that is the name he gives it. Question. What is the value of that or Lehigh coal over Schuylkill coal? Answer. Some thirty or forty cents a ton, I believe, is the usual average of the difference in price. Question. The quality of coal you sold was of good quality, I suppose? Answer. I thought it was. Question. Have you not sold coal during the last season, good COAL AGENCY. 119 quality of coal, delivered at Philadelphia on board vessels, at $3 20 a ton? Answer. Not Carter's lump coal. I have sold other coal for that price. Question. What coal? Answer. I have sold Tamaqua coal as low as $3 20 a ton. Question. To whom? Answer. To a great many parties. Question. Did you not sell it to Repplier? Answer. I do not now recollect to have ever sold Repplier a pound; yet I might have done so-upon reflection, think we did sell him a small lot of coal. Question. Was that a fair quality of coal you sold at that price? Answer. It was a fair quality; yes, sir. Question. Did that include such profits as you are now receiving for coal? Answer. We are selling very little coal at the present time; but that price did not afford a paying profit at all. We sold our coal for almost cost. Question. Suppose an active, intelligent dealer in coal should enter the open market in Philadelphia at any time during the spring, summer, or fall, to buy coal by the cargo or by the thousand tons, at what price could he get a good quality of Schuylkill coal for generating steam upon government steamers? Answer. One cargo do you mean? Question. I mean for him to go into the open market with money in hand to buy a good, fair article of Schuylkill coal, such as is used for steam purposes? Answer. I should have charged him from $3 60 to $3 65 a ton. Question. I do not ask what you would have charged him. I want to know what he could have got it at. Answer. The difference in the quality of coal is so great, that that is a very difficult question for me to answer. Question. You say that you sold coal for $3 20 a ton. Answer. That was not for steam purposes, but for family use, entirely of a different size, and costing less. Question. What difference would there be? Answer. We made a difference of twenty-five cents a ton. Question. Between the quality fit for generating steam and tha for family use? Answer. Yes, sir. By Mr. Bocock: Question. How does the coal that you sold at $3 20 compare in value with Black Heath and Broad Mountain coal? Answer. I said that 25 cents a ton would be the difference between the prepared coal, and large size, for steam purposes and the other. Any extra preparation after that would be in addition to it. I cannot speak in regard to any contracts that may have been made by others. CH. P. HAYES. 120 COAL AGENCY. No. 67.-Appendix to Charles P. Hayes' testimrony. PHILADELPHIA, February 14, 1859. DEAR SIR: In my affidavit made before your committee on the 10th instant, I stated that I had inquired of Messrs. Repplier & Brother during the year 1858 the price of their coal, &c. Upon my return home I find I was mistaken; it was during the year 1857, and not in 1858 that I made the inquiries, and I beg leave to make this correction in my statement. I am, very respectfully, your obedient servant, CHARLES P. HAYES. Hon. JOHN SHERMAN, Chairman, &c. No. 68.-CIIARLE SINNICKSON, PHILADELPHIA. FEBRUARY 10, 1859. CHARLES SINNICKSON, called and examined. By Mr. Bocock: Question. Where do you reside? Answer. At Philadelphia. Question. What is your business? Answer. I am in the coal business. Question. How long have you been engaged in the coal business? Answer. Eighteen or twenty years. Question. Have you been engaged in it largely or not? Answer. Yes, sir; very largely engaged in it; up to the last year I have been managing the business of another concern. Question. What firm is that? Answer. Sinnickson & Glover. Question. Are you acquained from your own personal knowledge with the coal furnished by the agent of Tyler, Stone & Co. to the government of the United States during the last year? Answer. The wharf I did business on joined their wharf; it was very close to it; immediately connected with it, I used to examine a good deal of the coal they were loading for the government; and I made the remark that I thought they took unusual pains with it, in the selection and throwing out of impurities that we are very apt to ship with the coal that comes down. Question. Did you observe personally that they put extra labor and care upon it in preparing it for government use? Answer. I did with regard to some of it; I did not see it all shipped. Question. How often did you observe it? Answer. I saw them load vessels frequently; I could not say how many times; I remarked at the time, to them and to others, that they were taking great pains with the coal and must get a big price for it. Question. As you saw it delivered, what would have been the fair market price in Philadelphia, in the spring, summer, and fall, of 1858? Answer. $2 75 to $2 90 would not be anything more than a reg COAL AGENCY. 121 ular paying business of ten per cent., I should judge; we sold coal at the same time at $2 85. Question. To whom? Answer. To coal dealers in Virginia; we sent a good deal to the south; I do not remember the firms. Question. How much coal did you sell in the spring, summer, and fall, of 1858 at $2 85? Answer. I am unable to say. Question. What sort of coal was it? Answer. That was lump coal; the size of steamboat coal; white ash; about the size of your head. Question. Where did you obtain it? Answer. From Schuylkill county. Question. What particular vein was it? Answer. The leading white ash vein; what we call the Mine Hill vein. Question. Are you acquainted with the Black Heath and Broad Mountain coal? Answer. Yes, sir. Question. How did your coal compare with that? Answer. I think our coal was as good as the Black Heath. Question. Was it better? Answer. No, sir; I do not think it was selected quite as well. Question. Did you put as much labor upon it as Tyler, Stone & Co. put upon the coal furnished to the government? Answer. We did not put so much labor upon it. Question. How much would you assume as the value of the labor per ton put upon coal to prepare it in the way they prepared it? Answer. What I saw them preparing, over and above the expenses of shipping it, I think 20 cents per ton would not any more than cover it. Question. Does not the railroad company allow 5 per cent. drawback upon the coal brought down the Reading railroad? Answer. Yes, sir; 5 per cent. deduction from their freight. Question. What is that for? Answer. It was originally intended to cover the loss of weight and the dirt. That was the original idea, many years ago. The idea was that the coal would chafe and be ground into dirt some. Question. Is there a loss of coal upon the railroad, over and above that? Answer. Yes, sir; it never holds out in weight. Question. Is the loss as much as 5 per cent? Answer. No, sir; not counting the dust taken from it. The actual loss of weight is about I to 2 per cent.; and then 4 to 5 per cent. of dirt is taken from it upon the average, besides that. Question. What was the price of Hecksher's coal in 1858? Answer. I went out to buy coal several times, and Repplier offered it at $3 15. In midsummer he would sell for $3 65. That was less than his price, but the market was dull and he was anxious to sell it. Question. Did you buy of him? Answer. No, sir. 122 COAL AGENCY. Question. Why did you not buy of him? Answer. He told me his price, and the party said they could get it cheaper than that. Question. Do you know Mr. Nevin? Answer. Yes, sir. Question. Do you know whether he was an applicant for the coal agency? Answer. I do not. Question. Do you know when he commenced business in Philadelphia, as coal dealer? Answer. He has been, directly or indirectly, engaged in the trade for a number of years. He has been out of it. He began the now concern he is now with, I think, late in the summer or in the beginning of the fall-in August or September, I think. I know it was late in the season. Question. What is the character of the firm? Is it a strong firm? Answer. It is a new firm which we do not know much about. His partner was engaged in the retail business in Boston. I do not know anything about the strength of the firm. By the Chairman: Question. Was the coal you sold at $3 85 Schuylkill or Lehigh coal? Answer. Schuylkill, brought from Tamaqua. Question. Was $3 85 a fair price for that coal? Answer. At the time we sold it it was. Question. When was that? Answer. At the opening of the trade, in the months of April and May. Then it fell to $3 75, $3 65, and we sold some as low as $3 45. Question. Was that sold in small or large quantities? Answer. We sell the coal in quantities varying from a cargo to two and three thousand tons. We do not sell such large amounts as we used to sell. Question. For what could a good coal agent of experience have bought good coal for the use of the government, in quantities such as they might want, with the money, during the summer and fall of the last year, delivered on shipboard? Answer. I cannot answer that. If it were a question what we would have sold coal for, I could answer it.. Question. What could the government have bought it for in open market? Answer. I cannot tell, for it is worth considerably more to sell to the government than to individuals. I can only say what we should have been willing to sell for. Question. Do you pretend to say that you sell higher than others? Answer. No, sir; the agent would have had to go into the open market to obtain the coal. I suppose the price would be all the way from $3 40 to $3 80. It depends altogether upon the quality of the coal and the manner it is shipped. There is a considerable difference in the quality of coal. You can buy it at any time at twenty or thirty cents difference. Question. What veins of coal did Tyler, Stone & Co. use? Answer. I noticed that they got coal from quite a number of indi COAL AGENCY. 123 viduals. I could see from the reports on the Reading railroad, books whom they got it from. They got a good deal from Charles Hecksher & Co. Question. From how many miners do you suppose they get coal? Answer. They bought a good deal of coal besides that sold to the government, red ash and grey ash coals, which the government did not take. I should suppose their leading coals were, pretty much, the Tamaqua and Hecksher's, but they bought of half a dozen large white ash miners. Question. Did you sell any coal as low as $3 20 last summer? Answer. No, sir; no lump coal. I do not think we sold any lump coal under $3 40 or $3 45. We sold another description of coal as low as $2 50-chestnut size. Question. Do you know anything about the Black Heath and Broad Mountain coals? Answer. We have mined them both. Question. From your knowledge of the price at the mountains, and the cost of transportation down to Philadelphia, the cost of carrying on board ship, and the cost of the extra labor of preparing it as you saw it prepared, for such coal as you saw Tyler, Stone & Co. deliver to the government, what profit could have been made last year at $2 85? Answer. Not over eight or ten per cent. Question. In fixing the price at $3 75 you allow the vender ten per cent. profit. Answer. The dealer would get about ten per cent. profit. By Mr. Ready: Question. What is considered a fair profit on coal? Answer. We consider that we ought to make in the general run of business twenty-five to thirty cents a ton. It is a very heavy article to handle, and I guess it is less profit than any business of that nature that is carried on. You cannot stow away a large amount of coal, it takes up so much room. FEBRUARY 11, 1859. CHARLES SINNICKSON recalled. By Mr. Bocock: Question. How extensively have you been engaged in the coal business? Answer. At one time I was one of the largest miners and dealers in coal. I have mined from 80,000 to 100,000 tons in a year. Question. Can you give me the average difference of the price of coal in 1857 and 1858? Answer. As near as I can remember, between 20 and 40 cents. Question. Was it more than 40 cents? Answer. No, sir, I do not think it was; I think it was somewhere between 20 and 40 cents. CHAS. SINNICKSON. 124 COAL AGENCY. No. 73.-EUGENE BORDA, WooDSIDE, PENNSYLVANIA. FEBRUARY 12, 1859. EUGENE BORDA called and examined. By Mr. Bocock: Question. Where do you live? Answer. At Woodside, Schuylkill county, Pennsylvania. Question. What business are you engaged in? Answer. The coal business. Question. What branch of the coal business? Answer. Miner and seller. Question. To what firm do you belong? Answer. To the firm of Hecksher & Co. Question. Are you a partner in that firm or a manager? Answer. I have been a manager and partner since 1852. Question. Are you familiar with all their operations? Answer. Yes, sir. Question. What sort of coal do you mine? Answer. We mine different varieties of coal in Schuylkill county: red ash and white ash. We have different operations. Question. Are you acquainted with the coal that has been purchased by Tyler, Stone & Co. for Mr. Hunter, the coal agent? Answer. Yes, sir, I sold that; a good deal of it. Question. What sort of coal was it? Answer. It was the white ash coal, such as is used for steam purposes. We do a very large business. We have had that trade a great many years to supply coal for steamers. We furnish a particular kind of coal from a particular mine. Question. Were they particular in their coal? Answer. Yes, sir; while they dealt with us, they bought a good deal of coal for different purposes. They generally stated when it was an order of the government, and they urged me to be very particular. Question. What is the name of the coal you furnished? Answer. The Black-heath coal. Question. What did such coal as that sell for at the mines in June, July, August, and September, 1858? Answer. $1 80. It was not a regular price; we did not make a contract for the year. We sold it subject to the market price. They would buy for a month, or 3,000 or 4,000 tons at a time. Some of it they bought for other purposes, and some of it they bought for the government. Question. Was it sometimes above and sometimes below $1 80. Answer. It did not vary materially in 1858, because the trade did not alter much; it did in 1857. I sold them a little higher in 1857 until the panic came, when the prices came down as the demand for coal decreased. The prices came down to $1 80. Question. What does it cost to carry the coal from the mines to the docks in Philadelphia? COAL AGENCY. 125 Answer. The charge last year from Schuylkill Haven by Reading railroad was $1 25. It was 20 cents more in 1857. Question. Was $1 80 the general price of that conl in 1858? Answer. No, sir; for that particular coal, $1 80 was lower than we would sell it to other parties. We had an understanding with the firm to give it to them as low as we could. Our object was to introduce the coal into the navy. Question. What was the general price of such coal at your mines in 1858? Answer. We sold such coal for from $1 90 to $2 25. Question. Was $1 80 the lowest price charged to Tyler, Stone & Co.? Answer. For about six weeks at one time last year, when the trade was very dull, we made an allowance of five cents per ton; and then the trade became better and we went up again to $1 80. The price was subject to the rise in the market, and we meant to charge them whatever the rise was. We did not always know when the coal was for government purposes. Sometimes, when vessels were chartered to carry the coal to different points for the use of the government, it was wanted very quick, We had also a very large trade of steamboat coal; but we had agreed, in case it was necessary that the government coal should be delivered very quick, to drop our own trade and load the vessel. Sometimes they would require 500 or 600 tons in a day. At other times there would be two or three weeks when they did not order any. Question. Did you sell any of this coal to them for more than $1 80? Answer. No, sir; not for steam coal. I sold them other coal, but not the steamboat coal. Question What is the cost of shipping, removing from the cars to the vessel, in Philadelphia? Answer. Twelve or fifteen cents. It depends very much upon the coal. If the boat is there and the coal can be dumped directly from the cars, it costs very little. If it is to be unloaded fromn the car, that would cost fifteen cents. We have trimmed cargoes of coal ourselves for particular purposes, sometimes, where it was to be sent to the Pacific, for instance, when the freight would be very great, when it would cost twenty to twenty-five cents to trim it. Question. Did they complain to you that the coal required trimming? Answer. Sometimes they would wish me to be very particular in regard to the coal. At other times they would say it was in very fine order, and wish me to continue to send it so. I had a letter from them almost every day. Question. Did they trim your coal? Did they rehandle it in Philadelphia? Answer. I was rarely in Philadelphia last year, so that I do not know personally. They said that they did. Question. What would it be worth to trim it? Answer. It would depend upon the amount of trimming. That size of coal is very difficult to handle with a shovel, so that it costs more to trim it than smaller sizes. It would cost twenty to twentyfive cents. Sometimes they would get somne of their coal at our wharf 126 COAL AGENCY. to be shipped, and it would be trimmed there. We charged them with the expense of trimming, but what that was I cannot remember. Question. What did you charge for the Black Heath steamer coal, delivered at Philadelphia, and trimmed so as to be suitable for steamer purposes? Answer. It would be from $1 90 to $2 25 at the mines; the freight would be $1 35; the trimming would be 15 cents at the lowest. The coal that netted us $2 25 at the mines did not need trimming. It amounted to from $3 40 to $3 65. Question. Did you sell to Tyler, Stone & Co. lower, in consequence of taking a large quantity besides the government coal? Answer. No, sir; they were sometimes compelled to take other coal besides the steamboat coal, when trade was dull, because we had no means to sell one size without the other sizes. It was the understanding that they would help us, on account of their getting so much coal of a particular size, in disposing of the other sizes. Question. If they had not taken the smaller sizes of coal, could you have afforded to sell the other coal at a lower price? Answer. I could not have afforded it for the whole year at a less rate. It was about the cost price. It was a little below the cost price. Question. Did you sell that kind of coal to any body else as low as you did to Tyler, Stone & Co.? Answer. We did not sell any lower. We sold some at the same price. Question. How much? Answer. I do not believe it would amount to more than 400 or 500 tons during the whole year. I sold some upon the line of the Schuylkill to iron manufacturers, furnaces, rolling mills, &c., to make up their supplies. In one or two instances we sold as low as $1 80; it was only as a matter of accommodation. Question. Did you sell for any other purposes large quantities of that same coal last year? Answer. We sold to steam companies large quantities; that is our largest trade; we supply a good many steamship lines. Question. Did you get in all those cases a higher price than Tyler, Stone & Co? Answer. Yes, sir, all that I know of have been higher. Question. Would you have contracted in the months of May or June to furnish during the year at $1 80? Answer. I would now, knowing what the prices were during the year, but I would not then; but if I had been applied to then to take the risk for the year I would not. There are a great many things in the coal trade which may affect the price; the freight upon the railroad may rise, the miners may want more wages. Question. From your knowledge of the cost of transportation and preparing this coal, could you have sold it to any firm in Philade]phia, to enable them to make a profit, at $3 25? Answer. No, sir. Question. Could you at $3 30? Answer. No, sir. Question. Could you at $3 35? COAL AGENCY. 127 Answer. We might, if we had sold at the same price that we sold to Tyler, Stone & Co. for, it would have left them five cents for profit; but I do not know of any one who would do the business for five cents. No one could have contracted for that, because they could only have got it for one month at that rate, and could not have been sure to get it for the whole year as low as that, or anything like it. It might turn out that there would be no alteration in freights, and no rise in wages; but I thought last spring that there would be. By the Chairman: Question. You say that the freight would be $1 35; how much of that is allowed as drawback? Answer. If it is to go to New York, there is a drawback of twenty cents; but if it is loaded at Philadelphia to go south or east, there is no drawback. Question. What is the five per cent. allowance? Answer. It is the allowance made by the railroad for waste. We include that in the shipping expenses. Question. How do you ascertain the weight? Answer. Upon the railroad scale at the mine. We have lateral railroads, and the coal is weighed upon scales at the termination of those lateral roads, where they meet the Reading railroad. That is called the gross weight. Five per cent. being taken off, that leaves the net weight. We get paid only for the net weight. Question. If the coal is dumped there is no further expense than you have already stated? Answer. That dumping costs something. The general rule in selling coal at Richmond is to take fifteen cents for the shipping expenses. If you dump upon the vessel, it costs less; if you dump upon the wharf, it costs more. This is taken from the shipping expenses. Sometimes it will cover the loss, and sometimes it will not. It depends upon whether vessels are scarce or not. Question. The net cost, then, to the dealer at the mine is $1 80 for the last year; the freight is $1 35, with drawback for waste; and the shipping expenses are fifteen cents. Is there any other outlay? Answer. None that I know of, unless it requires extra trimming. The coal that we furnished had extra trimming at the mine at their own request. Question. Was that paid for extra? Answer. No, sir; that is included in the $1 80. By Mr. Bocock: Question. In making this calculation of the cost of this coal to Tyler, Stone & Co. is it fair to allow $1 35 or $1 30 for freight? Answer. One dollar and thirty-five cents is the freight. The five per cent. is allowed to cover the waste. Question. Does that come out of them or out of you? Answer. They do not get the clear benefit of it, because there is a waste of something like two per cent. in the transportation, even if it is the cleanest kind of coal. If it is not the cleanest, there would be more waste. Dumping will make dirt. Every time you handle coal there will be a waste. 128 COAL AGENCY. By Mr. Ritchie: Question. Do they pay you for the gross weight or the net weight? Answer. They pay only for the net weight. For instance, we send 100 tons, as weighed by the scales; they paid freight upon 95 tons, and they paid us for 95 tons. Question. If dumped and trimmed at the wharf there will be a large quantity of coal which is refuse? Answer. That depends upon the care with which it is trimmed, and the state of the coal as it comes down; and what would be considered well trimmed coal by one would be considered badly trimmed by another. Some people object to the look of a piece with a " string" in it; they want it all " clear coal." Question. Will this refuse coal bring as large a price as the other when sold for other purposes? Answer. It does not bring any price at all if there are large pieces of bone, slate, stone, in it. It must be hauled away at a cost. The waste coal is screened and the screenings are sold to manufacturing establishments at a price of about $1 a ton in Philadelphia. Question. You have sold some of your coal at $2 25; under what circumstances was that? Answer. It was when we made a sale taking the risk of the freight, to deliver at a certain point; and when the time came for delivery, the freight was very low, so that we made a good bargain of it. Question. Did you agree in any case with any parties, to deliver coal at Philadelphia, on board vessel, well trimmed, taking upon yourselves the responsibility of all loss in trimming and dumping it, so as to have it in a suitable condition to put on board steamers? Answer. Yes, sir. Question. What did you charge for coal when you took that risk and responsibility? Answer. I remember a sale at $3 65; but it was not a long sale. WVe knew what the freights would be. It was a certain quantity of coal to be delivered as soon as we pleased, in a condition for steamer purposes. That is one sale I recollect. Question. What part of the year was that? Answer. In June and July, so far as I can recollect. E. BORDA. No. 7 5.-TESTIMONY OF BENJAMIN H. SPRINGER, OF PHILADELPHIA. FEBRUARY 12, 1859. BENJAMIN II. SPRINGER called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In Philadelphia, sir. Question. Are you in the coal business at the present time? Answer. For the past year I have done very little at it. I have been in the coal business for more than twenty-nine years, and may consider myself in it now, although for the last year I have done but little. Question. Have you ever filled any official position while you were connected with the coal business? COAL ArGENCY. 129 Answer. I was formerly agent of the navy department for furnishing coal. I was the first agent appointed. Question. By whom were you appointed? Answer. By Mr. Graham, Secretary of the Navy at that time, under President Fillmore's administration. I may premise by saying that I was urged by the coal trade in general to solicit the appointment. Question. I want to hear your opinion on the propriety of a coal agency, vwhen well managed; I want you to state what advantages there are to the government in having an agency, or whether it could be dispensed with, &c. Answer. So far back as 1845 or 1846, I am not positive which, the coal trade in Philadelphia, seeing the manner in which the government was supplied, felt desirous of introducing a better article, for their own interest of course, as well as for the interest of the government. They urged me to visit Washington and try to get it introduced into the navy. I think this was during Secretary Jlason's frst term, under President Polk. I complied with their request and visited Washington each session without accomplishing anything until the long session-I do not remember which Congress-which terminated in 1850. I was informrd by Mr. Graham that if we could succeed in getting the law altered which gave it to the lowest bidder, he would appoint an agent. We did succeed, and I was appointed in January, 1851. Prior to that, the government was supplied in a very bad way, and I think injuriously to its interest. I think they got a much better article and at a lower rate, during the agency than before. I consider it an all important thing; I consider a coal agency properly conducted is one of the most important stations belonging to the navy department. The properties of coal are so various that a person who is not thoroughly acquainted with it may purchase a bad article and endanger the ship and all on board. The received' opinion of persons not acquainted with the subject is that all coals arealike; but there is as imuch difference between different coals as there is. between the best hickory and the worst pine wood. The government has bought coal, to my knowledge-not under agencies, but prior to, them-which was condemned. I was removed 1853. Mr. Dobbin was then Secretary of the Navy, and for a time he tried the navy, agents; but they sent such coal as could not be used. Mfr. Dobbin. told me himself that on some of it they had a survey, and it was condemned and sold for either a dollar and a quarter or a dollar and a half per ton. I was familiar with the fact myself. I must say that I consider a coal agency indispensable for the navy department. Question. What is the proper business of the coal agent? Answer. When I was in the agency I can inform you what I considered the business. I was required, when I was first appointed, to abandon all other business, and devote my whole time to the agency.. rhe duty of the agent is to select the coal, purchase it, and superilltend the shipping of it; to do which it would require the. closest attention of two or three persons. Indeed, while I was agent that was the course I pursued. 9 A 130 COAL AGENCY. Question. Did you have an assistant to aid you in the discharge of your duty? Answer. My son assisted me; he was constantly there while the vessel was loading. He was practically acquainted with the properties of coal.. Question. Who succeeded you? Answer. Mr. Tyson. Prior to his appointment there was no coal agent, but Mr. Dobbin thought he would try the navy agents. I advised him strongly against it, and that he should leave it to the bureaus. I gave him my advice; there was the best feeling existing between Mr. Dobbin and myself, but the section of country that produced bituminous coal was opposed to me, and I was removed. He appointed the navy agents, and after that he appointed Mr. Tyson. Question. You have already told how the matter was managed by the navy agents; you think very unsuccessfully? Answer. It was very unsatisfactory. A part at least of the coal was not fit for the service. Question. While Mr. Tyson held the coal agency do you know whether he had a partner or assistant in the business. Answer. Not of my own knowledge; I heard that he had. Mr. Tyson was not, when appointed, acquainted with the coal business. He resided in Reading, and the coal business was done in Philadelphia. While I had the agency I did the business between Philadelphia and the mines; that is, I selected the coal at the mines and the dealers in Philadelphia to purchase it from, and I superintended the shipping, took up vessels, &c. Question. Do you say that your arrangement was with dealers to furnish you with coal? Answer. Yes, sir; I occasionally bought at the mines when the?lace for which the coal was destined could be reached by canal lbarque without being transhipped. Question. Why was that preferable to having an arrangement with.miners. Answer. Simply because they are an intermediate class. If you make purchases at the mines, then you have to employ persons to transport it to the shipping ports:and you must engage a wharf. I -could procure it on better terms direct from the dealer, who would supply me with the article; and then I examined how it was put on board. It was my province to watch the man that I bought it of and sae that he gave me proper coal, which was thoroughly cleaned, and that I got good weight. I trusted no man, but superintended the transhipment of it at Philadelphia myself. As I observed, I arranged,with the dealer and fixed the prices, and he was bound to put it on board-that is, to pay the expenses of putting it on board the vessel. I superintended the procuring of the vessels, and saw it put on board, and saw that it went on board of the proper size, clean, and good weight. Question. In purchasing of a dealer in preference to purchasing at the mines, did you not loose to the government the profits of the COAL AGENCY. 131 dealer; he had to purchase it at the mines, and had to have his profits? Answer. He must have some profits, of course; but the government could not well purchase the coal at the mines without renting a wharf and employing supernumerary agents; and the profits which the dealers charged could not be sufficient to make it an object of any moment, and I think not equal to the extra charge the government would have to pay. Question. If the government purchased directly at the mines, would it not involve the necessity of the government's purchasing coal not suitable for steamer purposes, and which they would have to get rid of afterwards? Answer. No, sir. I purchased at the mines-that is, I selected the coal at the mines. The miners have parties in Philadelphia, either partners or agents, to receive their coal and ship it; and it was from those parties at Philadelphia that I received it. Having first agreed with them for a particular kind of coal that was to come on, if they failed to furnish that kind of coal I rejected it. I have done so, rejecting it because it was not according to what I had purchased. Question. What would you consider a fair profit for the dealer to make? Answer. It would be a difficult matter to determine. Question. What per cent.? Answer. We do not go by percentage; it depends pretty much upon the season and demand. I could not fix any particular amount. I have been a dealer myself for a long time; the profits are not generally very large on coal; it depends something upon the quantity that is purchased. I do not suppose the dealers average more than 25 or 30 cents profit, or it may be 40, on a ton; that is, as a general thing. There may be times when they make more. I was a long time in the business; and, in fact, until I became the agent of the government, I was a vender of coal in Philadelphia. Some coals I was in the habit of getting higher prices for than almost any man in the market. Question. Perhaps that was because you had the best article? Answer. Yes, sir. I mined'j;i myself, and was particularly careful in selecting it in proper order: and, therefore, I had the preference in the market for that particular coal. Question. Do you say that, in order to discharge the duties of a coal agent properly, it is necessary to have a man at Reading and another at Philadelphia? Answer. No, sir. Reading is not in the coal region, and few, if any, in Reading have any practical knowledge of coal. Question. Well, in the coal region then? Answer. Reading is entirely out of the coal region. Reading is in Berks county, and upwards of thirty miles from the boundary of the coal region, which is in Schuylkill. Question. Is it necessary to have some man at the mines, and some man also at Philadelphia? Answer. No, sir. A person who is familiar with the coal trade, a 132 COAL AGENCY. practical man, knows the veins which are most suitable for his purpose, and, therefore, it is not necessary to have an agent at the mines. He purchases a particular kind, and it is sent to the agent of the miner. Either.the miner has his partner, or he has a consignee; he sends the coal to him, and the agent or partner receives it. I have boug-ht coal directly at the mines. Question. What do you consider the best veins of coal for steamer purposes? Ainswer. There are several about the centre of the coal basin. We do not go by names, sir. Every man gives a name to his own coal to suit himself: I have frequently known the names of the best veins applied to very inferior coal. I consider the middle of the field as the best, for steam purposes particularly, because it is of a medium hardness. For instance, the eastern terminus of the coal basin at Lehigh or Maunch Chunk is too hard for steam purposes, because it requires a greater draught for steam purposes than our ships can give it. That has a decided preference for smelting iron, where they have heavy bellows for making a draught. At the eastern terminus the coal is very hard, and it becomes softer as it goes west, until the same vein terminates in the bituminous coal. It at first becomes semi-bituminous, and afterwards changes entirely to bituminotis. The medium hardness is best for steam purposes, and it therefore requires a good judge to determine the kind necessary for it. I consider the appointment of an agent as of vital importance to the Navy Department; they generally got bad coal previously. Question. How was your compensation fixed? Answer. At five per cent. Question. Upon what? Answer. Upon the price of coal and freight. I took up all vessels and superintended them. Question. Upon what freight? The freight from the mines? Answer. I had nothing for the inland freight. The coal was purchased deliverable on board the vessel at Philadelphia. Upon that which wAas produced for the naval asylum and for the navy yard, at Philadelphia, my commission was upon the mere cost of the coal. Question. Suppose that you freighted a vessel to take coal from Philacdelphia to Boston; did you have conmmission upon that freight? inswer. Yes, sir. Question. Or firom Philadelphia to Pensacola? Answer. Anywhere. I was required to procure a vessel and see the coal on board, and had my commission on the freight. Question. Suppose that you freighted a vessel with coal for a foreign station? Answer. It was the same thing; I charged commission upon that. Question. And was it allowed you? Answer. Yes, sir, Question. How Tmuch coal upon the average did you purchase during the year? Answer. I do not recollect exactly. I have minutes of it, but I COAL AGENCY. 133 have not brought them with me. It was a small amount compared with the present. Question. Then what was the amount of your compensation? Answer. I could not even tell that. I was anticipating a better one when they removed me. My great object was, and that of the coal trade also, to introduce the coal into the foreign stations, and to the notice of foreign governments. The compensation was considered a small matter. France alone takes 1,500,000 tons from England, or did two years ago, and probably takes more now. The trade urged me, as I was acquainted in Washington, to get the appointment with a view to that more than anything else. It would have amounted to something here; but just as it was becoming a little profitable I was reimoved. Question. Are you able to inform the committee what was a fair market price in the summer and fall of 1858, of coal suitable for use upon the government steamers, delivered on board vessel at Philadelphia? Answer. I am unable to answer that. For the last year I have not been in business; I have been sick a great part of the time. Question. What was the price when you were coal agent? Answer. I cannot recollect. I think it varied probably from $3 50 to;5 per ton. It is an article that varies according to the demand. Coal has been at a higher price than it was the last two years, when the stoppage of the foundries and manufactories cut it down. The average increase, until within the last two years, was about 121 per cent. For the last two years it has been falling off. By the Chairman: Question. State as near as you can the amount of your annual compensation during the two years you served as coal agent. Was it over or under $2,000? Answer. It was under $2,000. Question. What, in your judgment, would be a fair and reasonable compensation for an inspector of coal in Philadelphia, who would be required to examine the coal and see that it complied with the contracts? Answer. It would be a very difficult thing to fix, sir. Question. You know what the services are. What would be a fair compensation for the services, I do not refer to per centage? Answer. It would require a n-umber of persons to attend to it. One person could not attend to it to give it the attention it requires. For instance, sometimes there will be two or three vessels loading at once at different ports. When I first had it, it could have been done m-uch better, when the different vessels would be loaded near each other. One coal inspector could not attend to the whole; but if the coal were to be procured on contract, it might be still worse. I consider it necessary thlat one person should have the purchasing of the coal, procuring of the vessel, and putting the coal on board, for this reason. The inspector would be eternally in conflict with the whole coal trade. Question. What would be a fair compensation for the coal dealer 134 COAL AGENCY. or coal inspector, for performing the duties, so far as he could, of a coal dealer or inspector at Philadelphia? Answer. It would be a very difficult matter to decide. I offered to Mr. Dobbin to do it for one half that which was paid. Question. Would a compensation of $2,000 a year be sufficient? Answer. I do not think it would. Question. Would $3,000 be sufficient? Answer. Hardly; because he must necessarily employ three or four persons. He must have an office; he must have a clerk and two or three others to assist him. You can estimate that as well as I can. By Mr. Ritchie: Question. Do you suppose that $4, 000 would cover everything? Answer. It might, possibly; that you must judge of. I should think $5,000 a very small compensation for the labor to be performed, and the expenses attendant. Question. Should the coal agent reside at Philadelphia? Answer. Yes, sir. Question. He should be a practical man? Answer. Yes, sir, or he does more injury than good. By Mr. Grosbeck: Question. You think $5, 000 would be a small compensation? Answer. Yes, sir, for a large business of this kind, as a large portion of that sum would be required for assistants. Question. How large a business do you suppose it to be? Answer. Well, I do not know-30,000 or 40,000 tons, I should suppose. Question. Your estimate of the amount of salary and of labor is based upon that? Answer. Yes, sir. I do not suppose that, the present year, the amount of coal will be as great as last year; because large quantities were required for the Paraguay expedition, and for foreign depots. This is mere conjecture; but I suppose that large amounts have been sent out during the past year, and that is the reason of my estimating the average at 30,000 or 40,000 tons. They have probably sent out amounts large enough to last for a number of years. I think it would be better to allow the coal agent a percentage than a salary; and when the amount purchased is very large, the percentage can be reduced. Question. Should you think there would be a very material difference between the present year and the last? Answer. I should suppose there would be, from the fact that we always ought to have a large amount of coal in depot, so that we should not be compelled to send for it at times when we should have to pay extraordinary freights. Besides, it takes a long time to get the coal there when it is wanted. I should judge that the depots were very well filled, or else they would not require so much as I have stated. Question. What reason can you give why you think a percentage would be better than a salary for the coal agent? Answer. In my experience I have found that persons upon a salary COAL AGENCY. 135 were more apt to neglect their duties than if paid according to the amount they have to do. FEBRUARY 14, 1859. BENJAMIN H. SPRINGER recalled. By the Chairman: Question. Have you any explanation which you desire to make in reference to the testimony you have given before this committee? Answer. When I was examined on Saturday, the question was put to me whether my compensation as coal agent had ever amounted to $2,000 a year. I answered in the negative; I feel it due to myself to say that I was in error there. I have received more than that, but it was under different circumstances. In 1853 I did receive more, but it was in consequence of a commission which I received in part for inspecting coal shipped by Howland & Aspinwall. By Mr. Bocock: Question. Will you explain to the committee about that arrangement with Howland & Aspinwall; I mean in regard to their agency? Answer. I am perfectly familiar with the commencement of that matter; how it terminated I cannot say. In 1852, I then being coal agent, Mr. Graham appointed Howland & Aspinwall, at the instigation of Commodore Perry, the especial agents for furnishing the Japan squadron with coal. Rumor said that it was all to go from England; and in fact it was said that orders had gone out for the purchase to be made. The delegation from Pennsylvania remonstrated, in a memorial to the Secretary of the Navy, against this being done. However, they were commissioned in April, 1852, to buy this coal; they were to furnish all the coal required for that expedition, and to receive 10 per cent. on the gross amount of the charges, including insurance and freight. A clause was inserted in that agreement that, for any coals shipped from the United States, there should be retained out of this 10 per cent. the usual commission for the agent here. A further point in the agreement was that the coal was to undergo inspection by the commandant of the squadron, or some one under his authority, and they were not to receive any compensation until the return of that inspection had been made. But two or three cargoes were shipped when I was named as the agent to inspect the coal, and upon my certificate of inspection, Howland & Aspinwall received their money here. These are the principal facts of the case. I will say that I received a part only of my commission on this coal, which that year made my entire compensation exceed $2,000; but the great bulk of my commission on that coal was withheld. Question. Did you ever assert that claim before any court? Answer. I was before the Court of Claims here, and they adjudged it against me. But then you all know what a decision of the Court of Claims amounts to. My counsel informed me that Mr. Blair admitted that if I had ever shipped any coal to foreign ports before that time, I should have received this commission claimed by me, and that fact was proved by me. 136 COAL AGENCY, Question. - How much did the commissions of Howland & Aspinwall amount to? Answer. I do not know what particular sum they received; but they received at the rate of ten per cent. on all the costs and charges of this coal. Question. Did they receive ten per cent. upon the original cost of the coal, the lighterage, freight, and insurance? Answer. Yes, sir; upon all expenses that might accrue. Their commissions must have been very heavy if they insured, for a person insuring the freight and cargo may insure it for what amount he pleases. I know that I offered to Mr. Gra.cham to do it for 21 per cent., but my offer was not accepted. Another arrangement was made with Howland & Aspinwall, in 1853, for 6 per cent.; that was after I was removed. And, by the way, according to the clause which gave them commissions upon "all expenses that might ensue, " which clause I remember perfectly, they might have charged. according to their contract, a commission on the demurrage, if there was any; I do not know whether there was any or not; but, under some circumstances, the demurrage is pretty heavy. I recollect that during the Mexican war the demurrage upon the coal sent out there amounted, in some cases, to much more than the freight, and even the value of the vessel, too. Messrs. Ilowland & Aspinwall shipped during their agency, including anthracite and bituminous, nearly 35,000 tons. B. H. SPRINGER. No. S0. —WILLIAMI W. PEIRCE, BOSTON. FEBRUARY 14. 1859. WILLIAM W. PEIRCE called and examined. By Mr. Bocock: Question. What is your official position? Answer. Naval storekeeper in the Boston yard. Question. By whom were you appointed? Answer. Secretary Toucey. Question. What have you to do with the coal received at that yard, in your capacity of naval storekeeper. Answer. I have the custody of it; I attend also to the receipt of it. Question. Do you receive a bill of lading when the coal is sent there, and do you inspect it? Answer. I do. Question. Do you weigh the coal to see whether it corresponds? Answer. Always. Question. By whom has the coal been shipped this last year? Answer. The anthracite coal ha.s been shipped by Tyler, Stone & Co., of Philadelphia. Question. How did the weights correspond with the bill of lading? Answser. Of the whole quantity there were only two which fell short of the bill rendered, and some of them over ran. Those two COAL AGENCY. 137 which were deficient in quantity had a deduction upon the bill of freight, so that the government only paid for what they received. Question. How did the weight of the coal average on the whole? Answer. The average was correct. Question. What is the quality of the coal? Answer. Very good; it is said by engineers to be superior to that received in former years. Question. Was it received in good condition? Answer. In a very good condition. Question. Are you a judge of coal yourself? Answer. No, sir; not so as to be deemed an expert. Question. Do you know anything about the amount of freight paid upon this coal; whether it was reasonably low, or too high? Answer. I know by comparison with coal dealers in Charlestown that the same price was paid' by them at the same time. Freights were very low there. Question. Under the system that you pursue, would it have been possible for those that sent you this coal to defraud the government? Answer. No, sir; not in the weight of the coal. We were very particular about that. We had the scales tested by the maker; and the weights were examined by ourselves in person, and also by the person who brought the coal. Question. Does it undergo inspection at your yard? Answer. No, sir; it is certified to by the coal agent. In former years, when there has been a difficulty, the commandant has ordered a survey; not upon any received from Mr. Tyler, however. That was two or three years ago. By Mr. Ritchie: Question. When was the last inventory taken at your store? Answer. Not since 1850, I think. I do not remember exactly. Question. What is the reason that no inventory has been taken since then? Answer. There used to be a custom to have an annual survey; but it has been done away with. I know that in 1844 there was an inventory taken, and I was myself appointed to the survey. Question. Is that any reason why there should not be a survey? Answer. No, sir; except that it would occupy a great deal of time. It would take seven or eight months to take an account of the stores there, without going into the timber, and perhaps the hemp. It would be a very great work to take account of the timber. Question. What number of hands would be required to do it in that time? Answer. We had about twelve men employed in weighing, and one person to take the account. I judge we should require as many, from having had some experince in it myself. Question. Is there any mode of ascertaining the number and value of the articles? Answer. Our books show that. We have everything enumerated upon our books. 10 A 138 COAL AGENCY. Question. Is there any account taken of articles returned by vessels upon their return from a cruise? Answer. Yes, sir; they are surveyed and entered just the same as if they came from the contractors. By Mr. Bocock: Question. Do you give your personal attention to the duties of the office? Answer. Yes, sir; constantly. Question. What force have you in your office? Answer. Two clerks and a waiter. Auestion. Do you find so much force necessary? Qnswer. I do, sir. There is one point I should mention. We manufacture in our yard the cordage for all the yards, which makes a great deal of clerical labor in keeping the accounts. Question. Does it increase very much the duties of your office? Answer. Yes, sir; very much. WM. W. PEIRCE. INDEX TO PA RT 1. COAL AGENCY. Page. Do ---—.....do..-. 1849) —. — --—...... 10,700 00 81,556 56 = 397 80 1,801 95 57,651 93 Do do. ——.- 1850 —-------------- 10,700 00 115,567 93 O S p 332 49 1,411 81 52,835 07 Do..-.. -,. do- 1851. - -- -- 10,700 00 118,863 19 3 780 86 1,352 34 56,493 45 Do ——. —-. do-. 1852 —...-..-...... 11,000 00 79,637 41 173 10 703 32 50,768 40 Do. —-. do ------ 1853.- -. - - 11,135 01 29,88337 34 05 65370 43,316 89 Do. --- -- do ----- 1854 ------------- 13,220 57 46,689 88 75 705 47 1,658 95 44,664 02 Do- --—. do --—.- 1855 -, —---—. —-- 13,722 05 84,962 14 " 904 23 1,227 29 43,136 52 K Do — -. —-- do.-__-,- 1856- ------ 14,477 31 171,007 88 | 1' 13,165 55 6,019 61 43,494 59 Do. ----- - do -----— 1857 — ----—. — -. 14,815 92 211,923 89.. 5,650 57 7,922 08 60,976 46 ~ Do.....-. do -... —- 1858-... -. —--—. 14,815 94 394,236 87 2 2,353 03 11,489 63 52,143 40 187,766 30 1,607,088 59 ------ - 25,729 93 49,748 33 722,304 63 STATEMENT-Continued. NAVY YARD, NEW YORK. Pay of superin- Improvement Dry dock. Magazine. Hospital. Contingent. tendents. of yard. From October 1, 1842, to June 30, 1843 —--- ---- $11,183 36 $31,086 11 -$4,231 20 $24,189 64 For the year ending June 30, 1844~- ----- - 9,016 94 38,171 83........ 8,154 82 31,150 00 Do —--- do. —---- 1845.. —. - —.-_ - 10,701 38 46,645 29 $123,628 14 $233 41 10,841 67 35,850 00 Do. —... do -----— 1846, —- —. 10,691 79 50,912 20 159,448 61 170 05 14,210 67 23,755 67 o Do ----— do -----— 1847 -- --- - 10,170 20 65,411 75 278,308 74 226 28 23,058 59 14,495 51 ~ Do —-----.do ---—. -1848 --- ----- 10,604 16 46,332 32 289,563 07 919 98 19,187 04 27,210 59 Do —---— do ----- 1849 —----- -- 10,700 00 o363,801 13 297,889 75 97 87 11,474 79 32,648 51 k Do -------—.do -----— 1850 ------ ----—. 10,699 97 102,615 98 522,948 51 453 32 10,912 04 39,162 81 Z Do —-----— do -, 1851 ------— 10,699 99 24,869 70 366,933 61 278 06 1,610 92 35,136 63 Do —-, -. do. —--- 1852 ------ - 11,000 00 51,191 49 79,961 12 64 02 6,281 62 35,184 80 Do. ——,. —do —. —-- 1853 —-----— 11,124 92 179,842 57 14.241 94 548 12 13,093 91 48,085 44 Do ---- do -.. —-1854 —------------ 14,266 14 240,151 34 -------—. —. 2,552 29 32,040 64 46.150 81 Do --------— do ----— 1855 --------- -—.. 14.670 00 240,586 81 24,224 26 2,688 12 48,076 66 Do --------— do — --- 1856.. —------------ 14,702 67 330,325 80 63,812 74 11,308 81 68,435 30 Do ---- do ---—..1857 ------ 15,845 27 321,459 36 -----------—. 24,216 30 11,700 21 66,715 12 t Do -----— do ---—..1858 —------------ 16,606 30 391,535 27 ------ 35,485 57 24,223 73 63,526 98 192,683 09 2,524,938 95 2,132,923 49 153,282 21 205,018 78 639,774 47 A The expenditures for improvements at New York in 1849 embrace $285,000 for the cost of additional ground. STATE MENT-Continued. NAVY YARD, PHILADELPHIA. Pay of superin- Improvement Dry dock, basin, Magazine. Hospital. Contingent. tendents. of yard. &c. From October 1, 1842, to June 30, 1843 —.-,- $, 431 56 $3,810 13 $3,448 95 $6,682 60 For the year ending June 30, 1844. —---- - 7,695 87 11,992 90 ------------------- 273 11 14,300 00 -Do ----- -— do --—...1845. ------ - 7,700 00 4,463 85 —.... 784 61 12,005 30 Do —------ do ----—.1846 ------ 7,226 49 8,920 97 -- — 4,317 26 0 Do —-- ---— do ---—.- 1847 — _ ----- 7,100 00 4,016 55. - — 7,865 96 Do ----— do. —---— 1848- -. 7,100 00 29,759 96 $6 091 61 16,968 64 Do, -------— do -—...1849 ---- --- 7,099 92 22,379 76 77,706 56 17,342 02 Do —--- -.-do —----— 1850 —---- --- 8,200 00 55,989 16 353,655 51 -17,490 21 Do..-.-.- — do. —--— 1851 — -------- 7,200 00 41,650 43 234,785 82. 16,331 89 C Do --------— do. —-— 1852 —------ 9,700 00 52,969 50 159,600 84 13,465 08 Do - -do -----— 1853 ------- 10,514 99 34,423 08 -- 4,636 98 9,421 84 Do —..,....do --—.-.-1854- 11,141 16 32,418 86....... 14,457 10 13,040 81 Do —--- do -----— 1855 --- ---- 11,660 00 54,213 94.. —----... 8,061 95 17,550 66 Do -------— do.. —-1856 ------- 11,360 00 40,303 62 $16,762 78 4,066 01 17,879 12 Do ------—, do -----— 1857 -----—,.~.. —. 12,415 99 50,527 43 -_ —-- - 2,918 11 8,900 28 27,171 12 Do -—....- do —----- 1858 —-------------- 11,606 00 71,519 60 --------— 9,373 76 12,336 69 28,720 69 142,151 98 519,359 74 831,840 34 29,054 65 56,965 68 240,553 20 STATEMENT-Continued. NAVY YARD, WASHINGTON. Pay of superin- Improvement Magazine. Hospital. Contingent. tendents. of yard. From October 1, 1842, to June 30, 1843 -—.... - ----- $9,504 14 $17, 822 79 $32,448 18 For the year ending June 30, 1844 —------------ 6,680 00 8,462 32 $47 60 33,549 70 Do -------— do -----— 1845 ——. —----- ------- 6,680 00 12,914 84 55 13- 34,269 50 ~ IDo.. —--— do ----— 1846 —----------------- 6,630 00 9,893 31 70 72 - -19,979 80 0 Do ----.do ---- 1847 —----- 6,770 68 14,042 99 109 07 --- ---- 30,661 39 ~ Do -----—,..do -—. —— 1848 - - -- 6,680 00 30,154 29 118 54 $100 00 50,352 22 Do -------— do --—. 1849.- - --------- 12,430 00 29,287 75 163 49 85 64 66,284 06 z Do. —---— do —----— 1850 ------------------------ 13,080 00 38,962 28 183 72 5 25 48,965 10 Do -----— do --— 1851 ---- -------- --- 12,892 59 45,608 86 92 22 52 63 53,389 60 z Do —------— do —----— 1852 ---- -— 13,498 88 95,163 66 114 55 76 18 56,500 93 Do ------— do -----— 1853-.. ——. —-—.-.. —--- -. 3. 14,351 00 117,166 03 145 93 106 38 44, 648 02 Do.. —---— do —----— 1854 ----- -- 16,897 83 137.943 94 1,196 49 18 00 51,857 48 Do —------— do — 1855 20,050 00 220,150 75 3,857 77 49, 356 77 Do —------- do ----— 1856 —----- -------- 20,350 00 142,949 98 6,780 83 --- ---- 73,822 02 d Do -------— do. —-- 1857 —------ 20,410 79 179,126 78 6,390 69 77 60 80,501 37 t Do -------— do -...-.-1858 —----- ----- ------- 20,000 69 185,853 63 22,866 74 228 30 86,430 43 206,906 60 1,285,504 20 42,193 49 749.98 813,019 57 -.. STATEMENT-Continued. NAVY YARD, NORFOLK. Pay ofsuperin- Improvement Dry dock. Magazine. Hospital. Contingent. tendents. of yard. From October 1, 1842, to June 30, 1843 —--- $6, 940 81 $33, 752 70 ----- ---- $6,976 34 $17,595 00 For the year ending June 30, 1844-_ _ —- -- 12,112 99 22,723 27 O D -- 6,857 82 17,075 00 IJo ----- do d —--— 1845 —. —-—.-. — 11,176 30 34,323 40 $31 50 1,656 47 20,804 00 Do -------— do -----— 1846 —- --- - 11,180 00 29,865 41 1 286 25 2,073 20 15,497 21 Do -------— do.-,...11847 1,180 00 55,640 84 - 38 13 2,457 73 20,041 05 0 Do ------— do -----— 1848 — 10,563 34 33,910 12 1 E 2,928 97 60,251 90 Do —------— do -----— 1849 -- --- - - 11,207 87 147,280 80 O 1,148 45 580 97 43,840 72 Do —, -.... do —. —— 1850 —-------------- 11,030 00 89,362 54 Z O 468 81 510 28 37,300 58 Do —------— do ----—.1851 —----- 11,015 10 86,642 49 1" t 1,238 83 3,526 92 54,885 98 Do --—.. —-do -----— 1852 —------ - 11,695 74 64,867 02 ~ - - 3,995 52 53,770 82 Do - _- -.do -----— 1853 —---- --- 12,794 99 67,516 88 --- -. 4,417 89 39,153 39' D)o. —-----— do -----— 1854 ----- - 11,651 30 135,520 89 "n= M 7,15061 46,99163 o --- do -- 1855 ------------ 33,986 21 192,627 41 ------ 4,315 62 46,486 68 )o —------— do —-- 1856 ------ 14,876 48 252,33 80 3 ~a 3,741 80 2,235 89 45,630 92 Do —-----— do —---— 1857 —-- ----- 15,330 87 324,156 96 U W4,64959 10,95268 52,89224 Do -----— do —-- 1858 ---- ----- 15,466 00 396,456 51 -= o 40,253 69 16,47108 80,430 16 192,308 90 1,971,981 04 --- ---- 51,857 05 77,107 99 652,647 28 STATEMENT-Continued. NAVY YARD, PENSACOLA. Pay of superin- Improvement Dry dock, basin, Magazine. Hospital. Contingent. tendents. of yard. &c. From October 1, 1842, to June 30, 1843 -- —, _ $4,076 27 $15, 625 01 | —|| —------------ —..... $779 09 $9, 304 00 For the ytar ending June 30, 1844 —------ 5,750 00 5,033 32 ------ - ----—. 3,326 1 13,800 00 Do -------— do ----— 1845.-. —---— _.._ 7,250 00 36,352 87 - --- -—.1....-_ 1,298 35 15,305 71 Do --------— do ----—.1846 -- --- - 10,150 00 61,61)8 04 --...... —. 20 227 63 17,613 45 Do ------— do -----— 1847 ---------—..-_ _ 8,291 82 100, 905 02 -- ----- 23,519 86 9,593 95 Do ------— do -----— 1848 - ----- - 7,296 85 102,563 60 $1,092 03 ---- 20,485 18 33,967 81 Do —------— do -—, —-1849 -----—. -, —--- 8,885 03 202,950 34 109,607 39 ---- --- 7,325 84 31,178 05 Do ------— do ----— 1850 -------------- 8,977 05 212,607 66 182,581 10 --- --— 5,177 01 40,552 48 Do ---- do ---— 1851. —------ - - 9,000 00 192,413 70 203,874 89 ------ - 977 10 25,010 17 Do -----— do ----— 1852 --- ----— 12,300 00 145,933 20 184,578 90.. —-- 3,116 84 26,993 11 Do —----- do —----— 1853 ------------- 12,299 92 111,368 25 235,997 35.-. —- 11,498 54 27,509 16 Do -------— do ----—.1854 ------- - 13,399 91 146,855 90 --------------------- 13,793 88 28,550 85 Do --------— o -----— 1855 —-------------- 12,143 86 185, 891 85 11,705 00 3-0, 685 37 24,107 96, Do —-----— do- -- 1856 —------ - 12,321 38 199,240 12 10,000 00 $8,285 97 15,085 36 34,192 51 Doo ------- do —----— 1857 —----------- 14,986 81 148,427 02 ---- --- 1,050 38 11,280 11 36,386 46 t Do — (- o -----—.1858 -----------—. 16,290 33 165,890 66 ---- ----—.- 107 38 9,819 11 48,702 24 163,419 23 2,033,666 56 939,436 66 9, 443 73 178, 405 38 422,767 91 C0D STATEMENT-Continued. NAVY YARD, MIARE ISLAND......................... BLYTHE SACICETT'S ISLAND. HARBOR. Pay of superin- Improvement Dry dock, Magazine. Contingent. tendents. of yard. basin, &c. From October 1, 1842, to June 30, 1843 —-- -----------—.. —---—.... -.... -------—.. —--- For the year ending June 30, 1844 —- - ----------- Do _ —. do ----— 1845 ----- ----------- -------- - $726 46 Do ----— do- —...1846 —. —-. —------------ ------ - - - - 3,394 79 Do -----— do ------ 1847 ---------- -----, ——.- - -. ---------— 465 81 0 Do.- --- do —- 1848.. —--------—. 5,057 88 Do -.....do -...1849.............:..2,093 22 F Do —------ do ---— 1850-. --------.- -------------------- --- 1,824 14 2 Do ------ do ----— 18 51 —----.. 7 —-— ~ —. ----------------------------------- ------- - 739 83 Do ------— do —----- 1852 ---- ----- -------- $247,050 00 - ------------ - 1,668 70 )Do - d5 do 183. -$103,236 08 338,550 00 ----- 131 32 Do-do...... 1854 —-- $4, 135 35.. —---------- Do -------— do ----— 1855 —. 4,095 58 252,594 89 270.000 00 ------------— 1,972 81 Do ----—. do —----- 1856 —----- 13,185 75 443,113 15 304,400 00 $55,214 14 271 08 Do ------— do -----— 1857 —--- 17,221 20 173,207 68 "290.000 00 $15,798 97 69,266 46 $85 37 708 67 t Do —----— do, —--— 1858 ——.- 18,117 59 396,990 46 16,576 04 70,068 49 106,666 70 t130,479 48 1,172 02 56,755 47 1,369,142 26 1,466,576 04 85,867 46 231,147 30 130,564 85 21,226 73 " The expenditures for improvements at Mare Island in 1853 include the cost of the site, $83,491. t Cost of site, $130,000. GENERAL RECAPITULATION. Portmout, Boton. New York. Phifadelphia,'Washington Norfolk. Pensacola.MrisadBlteld SkttsGndang, N.. 1-. Harbor gate. 14. 2 440 790 43.............. I............. 36 53 5 For the year enldi),) June 30; 1844.. 74 F666485 59 302188 4,7962 5,79 I~.....do.........]1845.. 37, 401 57 73, 359 40 27, 899 89 I24,953 76 53, S19 4 7 67, 991t 67 I60,206 93 I............. Do..........do........1546.. 2~9'2 4 7 51 94 63 959 ]$8t 99l 20,464 7'2 ]36,573 83 585 9W2 07 [109,609 12 [................... 3~ 394 [. 585,549 57 Do..........~do......... I 47._ 20,115 83 99?l 60$88 391,671 07I ]$,9R' 51 ] 1 5F54 1 3 89..357 75I 149,310 65[................... 465 8 806,748 63 Do......... d o......... 1848.. 53,350 71 175,407 95 393 817 16I 59 9'20 21I 87 405 05 1lt'2 654 33I 165405 47].....9..............I507 /,5~17 Do.........do....... 1849...129,531 00 152, 1CS 24 716,612 05I ]24,52826I 105~950 95I 9044958 81 3591'946 6 5......~,.......]203 ~~9~9 Do.......... do......... 1850.. 3'26,230 39 180,847130 G86, 79263I 435,334 88I 101 i96 35 138,)672 91I 449, 895 30..............[09 1~824 i 7973' 193908 Do.......... do.......8 5 2 ~2,943 9-8 1588189 84 439, 52g91] 299.968 14I 11'2 035 90[ 157~039 7-956............./..... 1184514,32 99108 Do.....do.....1852.. ]53,610 96 142'298223 183,683 05] 235'734 92/ ]65:. 73 8320 1343290 372995/94 991 00 /86 D~~~~~~~~~~~~~~~~~~~~~~2 0322 5$4,8 o..........0 1,7636,633963 d o..........]o...853.. 209,491 69 85,0'-3 02 9-66, 936 90[ 5S:996 89, 176",417 36 [123,a83 15[ 398,673 912 441~,786 CS 1,131 3,62396 Do —.......do......... 1854.. 10-~037 89 106,938@89 a35,161'2 [ 71,057 93 20 1 4 211 3 22605 ~ 3 5............[13,199 D,....do......... 1855. 101,207 07 14,3,95 23 330.245 79{ 91,486 55] M93415 99I 257,4159'2 264, 534 04/ 5i-6,690 47......1 7 t200901 Do.......... do........1856]' 82,25@ 40I -,48164 94 488 15853'2 [90,871 53 943,90 83[ 318.818 89] 279,15)534[ 815,913 04......P [Do.......... do......... 1857../ 76,698 84 20 01, 2@8 99- 439~,936 26 [10t,9$'2 93 [ 86,510 9't i 407, 982 34 21 1,130 78 271549 8l,""~7511 37.o.......... do........ /90 S 45088 3,3' 51 56,9 j $53 0 7232786 19 @.20 — 292 899 ~592,637 78 5,848,630 99 /1,819,9'~5 09'2, 348,1273 85 29,945,801 36 [37719 4[39988 53 1130564 3,747,39 463,20 48 3 3, 4 321, 226 73 4,483,981 54 112 BROOKLYN NAVY YARD. SCHEDULE B. Statement of the amount of purchases, under contract and in open market,e at the several navy yardsfrom Maarch 1, 1857, to December 31, 1858, on account of the Bureau of Yards and Docks. Navy yards. Under contract. In open market. Portsmouth, New Hampshire ----------------—... $88,707 90 $34,497 29 Boston --------- ----------- - 339,332 78 170,275 03 New York -- --------- ---- --- 294,656 84 174,426 41 Philadelphia. —----—. —-.-. —-.-. —----—.. 95,426 10 67,045 30 Washington -— _ ---- - -------- 121,220 71 96,006 30 No folk-.-_- ------------------—. —--- 169,415 14 217,091 16 Pensacola- 101,841 95 18,159 25 San Francisco ------ ------—. —-—. —-—.. 204,888 79 162,344 15 Total -------- - ------ - 1,418,490 21 939,844 89 In the amount of purchases in open market is embraced the cost of coal, (a heavy item.) as well as large expenditures for heavy tools and machinery, such as lathes, planers, dredging machines, &c., besides bills of freight, advertising, gas, postage, &c., in short, all purchases at the several navy yards n)t covered by contract. BROOKLYN NAVY YARD. 113 SCHEDULE C. Statement of amount of labor expended at the New York navy yardfrom March 1, 1857, to December 31, 1858, under the following heads of appropriation, under the cognizance of the Bureau of Yards and Docks. Years. Improvement Contingent. Magazine. of yards. 1857. March -- —, —-- --- ---- $13,726 08 $4,333 74 $1,080 66 April —... —------—. —..... —--—.- 16, 276 85 3,286 90 926 72 May —-. ------ - -- -- 23,373 78 3,849 15 761 85 June ------ -...- -- 21.948 25 3,833 76 1,159 39 July —---------—.. — - 22,475 20 4,478 82 900 87 August ---- ----------- 24,500 22 5,293 53 1,534 37 September -—.. —-... —. —--------- 23,123 02 6,186 79 946 57 October —. —... —-.... -—, 24,831 68 6,219 67 1,882 31 November - ------ ---- -- - 19,090 73 4, 677 11 2,850 88 December -------- - —. —----- 10,621 23 2,982 79 1,020 68 199,967 04 45,142 26 13,064 30 1858. January - ---- ----- - 9,609 69 2,282 88 372 47 February -------- -- ---- - 7,205 39 1,740 71 529 42 March —- ----- -- ------ 8,124 58 1,612 59 650 67 April -— 9 —--—,-... 9,085 68 1,494 11 148 73 May --...... —- ---------—.....-.... 12,218 77 1,646 66 569 36 June..... -. - -------- -- -- 13,795 00 1,500 14 916 34 July ------- --- — 18,466 07 5,725 63 514 41 August —-------------— 22,066 76 6,727 02 153 68 September --------- ---- 21,230 06 4,610 44 585 53 October -------------- 20, 679 30 4,471 01 266 50 November ------ ------ - 21,689 37 4,209 17 227 50 December -- ------- - ---- 17,068 23 4,676 05 37 50 181,238 90 44,686 41 4,972 11 RECAPITULATION. 1857 ----- ---------— $199,967 04 $45,142 26 $13,064 30 1858 - ------------ - --- 181,238 90 44,686 41 4,972 11 Total 381,205 94 89,828 67 18,036 41 NAVY DEPARTMENT, February 8, 1859. SIR: In compliance with the order of the committee requesting the Secretary of the Navy to inform the committee " upon what vessels of the United States repairs have been made at each of the navy yards, and the amount and character of expenditure upon each, since the 4th of March, 1857," I have the honor to transmit the accompanying papers, which furnish the desired information. I am, very respectfully, your obedient servant, ISAAC TOUCEY Hon. JOHN SHERMAN, Chairman Special Committee, d&c., House of Reps. 8D j3tatemeM of the cost'of building and repairing vessels of the United States navy, from the 1st of March, 1857, to the, present time. NAVY YARDS. Name of vessel. Kittery. Boston. New York. Philadelphia. Washington. Gosport. Warrington. Mare Island. Pennsylvania ----—... —---—.... —--------—. $6, 716 00 —---------------------- Ohio ------------ — $857 05 ---.. —---—.. —--... ---—.. —-------------------- North Carolina —---------- ----------- $8 345 06 ----------------------------------------- Independence ----— $3,390 15 0 Constitution - $255,832 18.... *-... Cumberland ---- 161,085 33 —---------------------- -------- - Savannah -------------------- 320,711 66 — ----------- ---------------------------- Sabine. 58,082 95 -. Constellation. —34,11107 999 86 -.-...... ----------------—. —---------------------------- Macedonian ---- 168,078 60 -----.............................. -------------------... —-- Saratoga-. 3,942 86Saratoga -- ------------ ------------------------------------ 41,734 90 —-------------- JohnAdams.......... —-----------. 44,617 71 —---------- --- Vincennes — 120,898 18 -.. Falinouth- 11,737 87 Vandalia- - 79,330 58 --- ------------- -------- -- ---- -- -- St. Louis --— 130,864 80. — - - Cyane. —--. 64,795 17 Cyane. — - —. 1,495 68 -_ Portsmouth 78,435 44- Plymouth'$4,349 29 Plymouth - - -......... ------- 14, 125 95 5,620 67 St. Mary'sto -- - -.-... —..41,302 14 Germantown --—. — 45,868 20 BMaaridge -— o —--------------. —------ - ---— _ —--- --— _ —------ ------------ -------..85,090 64 ------------- Daleas-^' -_-_ —---- ----- - - - ---- - --...4 1,549 8-7-.._._ Preble ------------- 173 -----------— 4 —--- 0, 34:6 90 -1, 91-2 69.CoPrebleorado —-... 12,968 18 —------------ aPreble —--------------—...- ----------------------—. 17,3273 72 -- ---- Dolphin --------------- —, 2201 78 -------------------------- ------- -------------- Dolphince —--—,- 51150 71 -----------------------. —---—. -------- eBainbridge —------------------------------- 4 ------------------------------------— 40,753 93 —------------ Perry —------------------------ ------------ --.. --------— 41,414 64ennimore Cooper —-------------------------- ------------------------------------------- 6, 191 76 aRelief s- -- ------------—. — ----------------— 18,013 58- ------------ Relief —----------- -.. — - -. 7, 203 22 Relief —------------------------------------------- - - 81 61- - - - - aSupplyn- --------------------------— 12, 442 55 ------------ Supply —---- -------- ------------ 11,719 38 - ----------- ------------ ------------ -------------------- 118 22 5,797 10 --------------- 1Release —--—, — - 1698 64: -...... _. _ 1Release —-------- 1,112 45 — -- ------ Niagara —----------— 1,062,422 44 —................ — - - --. _ — Niag5ara —----- -- -56,572 04 - _.................. -— _ —Niagara —----- - - 6,607 07 -_ — _ -.Powhatan —-----------------------------------------— 211,446 08 ------------- STATEMENT-Continued. NAVY YARDS. Name of vessel. ~ Kittery. Boston. New York. Philadelphia. Washington. Gosport. Warrington. Mare Island. Saranac --- ------------ ---- ------------------ - $157,025 19 ------- $3,754 97 ----. —........ Fulton....... —-----------------------—... --------—.. —----- -- $14, 698 06 4,483 19 ---.-....-....- __ Water Witch ------------------- --- -- -. — -—. -- 23,256 90 —.. —. Water Witch,- -.......... ---- ----- - ----- -- --- 4,297 02. —----- - - —..-... - Water Witch —-.....-..... —-—... —-------------—.............. —-.. 16,549 38 5,589 50 ---------- -- Princeton -......... 18,602 17 -.................................... At Boston --. — ------- --- -- $93,955 05-. —. —.-... —-... —..-....... —---—. —. —. —-. —-—.... —At New York-. —- $42,192 92 --------- ----- ------- --------- ------ At Philadelphia, No. 1........ —---—.. —-. ---—. —-... —.. ——... 125,751 33 -- --- ---------- ---- - ---- --- At Philadelphia, No. 2 —----- -------- --- --------- 11,425 30 --- -- --- -------- -—.At Kittery -—.- -. — - $73,918 43 - -- AtGosport ----..... —- ------ --- --- --. —-- -_ -- 115,708 70 -------- -------- At Warrington-_- - ---- ------------ --------- ------------------- - $25,3336 99 ------------ At Mare Island - -------- -- ----- - - ------ -------------------------- $9,696 14 And at Washington. t Paid Mr. Westervelt. The reports of repairs of ships that are not accompanied by details of worl. done are incomplete, and the full accounts of expenditure are not yet on the files of the bureau, BROOKLYN NAVY YARD. 117 No. 15.-TESTIMONY OF LAWRENCE COHANE, NEW YORK. JANUARY 31, 1859. LAWRENCE COHANE called and examined. By the Chairman: Question. Were you master carpenter in the Brooklyn navy yard at any time? Answer. Yes, sir. Question. How long were you there, and when were you discharged? Answer. I was there from the 1st of June, 1857, to the 9th of June, 1858. Question. Upon whose recommendation were you appointed? Answer. Hon. John B. Haskins. Question. How many men had you under your charge when you went in? Answer. I think there were eighty-three when I went in. Question. How many when you left? Answer. About twenty, I think. Question. State whether the number of men was too great for the work when you went in? Answer. It was, sir. Question. Why were you removed? Answer. I cannot state positively; I can only speak to the best ot my judgment. Question. Well, then, state according to the best of your judgment. Answer. I think it was on account of Mr. Haskins' course on the Lecompton question. Question. There were no charges made against you? Answer. I think not; I was never notified that any were made against me. Question. Who was your successor? Answer. John Ross, of Brooklyn. Question. What office did he hold at the time he was appointed? Answer. He was one of the assessors of the eleventh ward in Brooklyn. Question. After he was appointed master workman did he continue to hold that office? Answer. I think he holds it yet. Question. He has held it, then, since he was appointed? Answer. Yes, sir, to the best of my belief. Question. What were his duties as assessor? Answer. For three or four months in the year he has to stay at the Brooklyn City Hall from ten to one o'clock, to receive parties who complain of over assessments, or anything of that kind, and another portion of the year he has to go around and assess the property. Question. What time did he arrive at the navy yard? Answer. Between twelve and one o'clock, I was told; I was not there. I have not been there much since I left, Question. What was his salary as assessor? Answer. About seven or eight hundred dollars per year, 118 BROOKLYN NANY YARD. Question. What is his pay as master workman? Answer. Three dollars and a half per day. Question. Upon whose recommendation was he appointed? Answer. Mr. Taylor's, I believe, sir. Question. State whether the amount of work done at the navy yard by the workmen is as great as that done by workmen in other places? Answer. It is not, sir. Question. What is the proportion? Answer. Not one-half, as a general rule; there are some exceptions. Question. Why is that? Why cannot a man do as much work in the navy yard as when he is at work for a private citizen? Answer. I do not know; they don't do it. Perhaps it is because the poorest workmen are generally backed up the strongest politically, and the masters dare not discharge them. If they do, they lose their places themselves. Question. How are the workmen appointed; on whose recommendation? Answer. The master recommends them, and the chief of the department-either the constructing engineer or the naval constructorsigns the master's recommendation, if he approves of it; and then the recommendation is sent to the commodore of the yard, and he approves of it or not. Question. Who names the workmen to the master workman? Answer. Members of Congress generally; they send letters. Sometimes other parties name them, but most generally members of Congress. Question. Suppose a master workman refuses to appoint those who are recommended by members of Congress, what is the result? Answer. If the member insists upon it very strongly, they generally do it. I have been threatened to be turned out of the yard if I did not appoint certain men who I knew were not worth half the money they would receive. Question. Who threatened you in this manner? Answer. Mr. John Cochrane made such a threat to me by letter. Question. Have you the letter? Answer. I have it, but not here; it is in New York. Question. I will ask you to send that letter to me by mail. Answer. Yes, sir; I will do so.-(See Appendix.) Question. State other cases of threats, if you know any. Answer. That is the only case of threats that I know of. He said that if I did not employ these two men he would make charges against me, and have me turned out. That threat was made, if I am not mistaken, before I was a month in the yard. By Mr. Ready: Question. Did you appoint them? Answer. Not then, sir. I appointed one of them afterwards. He insisted upon following the matter up, and I did appoint one of them some two months afterwards. By the Chairman: BROOKLYN NAVY YARD, 119 Question. State whether men were recommended to the master workman and appointed who were not carpenters. Answer. Yes, sir; that has been done. Question. How frequently was that the case? Answer. It was frequently done when I went into the yard first; but Captain Rootes checked it after I was there some three or four months. There were some eight men enrolled when I went there who were not carpenters, but they did other duties, such as clerks or runners for some of the departments. Question. Were these clerks and runners employed and rated on the pay-roll as carpenters? Answer. Yes, sir. Question. Then they did not perform the duties of carpenters? Answer. No, sir. Question. Were any men appointed by you detailed on other duty? Answer. Only one as carpenter's clerk; that is, among those that I had charge of. Those other men who were rated as carpenters and employed as clerks I had nothing to do with. Question. I will ask you whether any contributions were levied upon the men for any purpose? Answer. Not upon the carpenters during my time. Question. Were there upon the other men in the yard? Answer. Yes, sir. Question. For what purpose were these contributions levied? Answer. For watches, sometimes. Mr. Turner told me had a collection made among his men to pay his expenses to Washington at one time; he told me so himself. Question. Who were these watches and other testimonials given to? Answer. Mr. Turner received a watch. Question. Who else? Answer. Mr. Merrifield, I believe, received a breastpin. Mr. Hogg, the master caulker, also received a breastpin, I think. Question. Was this a general thing, this practice of receiving testimonials? Answer. Yes, sir; I think so. Question. Who contributed to them? Answer. The men under their employ. Question. You say this was a common thing? Answer. Yes, sir; the most of the masters had watches, breastpins, or something of that kind presented to them, I believe. Question. Were there any other contributions for political purposes? Answer. Not to my knowledge. Question. There were none during your time? Answer. No, sir, there were not. Question. You left before the election came off, I believe? Answer. Yes, sir; before the last fall election. Question. How did you obtain materials and supplies for your department when you needed them? Answer. Once a year there was a schedule made out of what it was thought would be required for the year; and if there was anything 120 BROOKLYN NAVY YARD. required which was not in the schedule it was got upon open purchase. Question. In such cases what steps did you take to get articles upon open purchase? Answer. I made out a requisition of what I wanted and sent it to the constructing engineer's office, for I was in his department; he signed it and sent it to the commodore, and it was then sent to the navy agent. Question. And the navy agent purchased the article? Answer. Yes, sir. Question. And you received it? Answer. Yes, sir. Question. Did it go into the hands of the storekeeper? Answer. Yes, sir. Question. Did you give receipts for the articles as you received them? Answer. No, sir; it was there in the storehouse for us to get as we needed it; we did not give any receipt for it. Question. I will ask you from whom the articles were obtained on open purchase? Answer. Our requisitions generally went to Mr. Secor. Question. Do you remember his first name? Answer. No, sir; I do not. Requisitions for lumber sometimes went to Wesley Smith and Wm. Campbell. Question. Were the persons who furnished on contract the same who furnished on open purchase? Answer. Not always. Wesley Smith furnished very little on contract. Mr. Campbell furnished on contract a good deal. Question. Do you know of any relation existing between Wesley Smith and the navy agent; whether he was connected with him, either directly or indirectly, in business? Answer. I do not, sir. Question. Was any public property used for private use? Answer. Not out of my department. Question. Was any so used out of any of the departments? Answer. Not to my knowledge. I only know of it by hearsay. Question. I will ask you whether it was not a common practice for employes of the government to do little jobs for themselves out of the materials belonging to the government? Answer. I have understood that it was. Question. You do not know of it yourself? Answer. No, sir. I never made a dollar's worth for myself while I was there. Question. You do not know anything about this matter except from hearsay? Answer. No, sir. I have heard that it was so, and I am satisfied that it was the case; but I do not know of any specific cases. BROOKLYN NAVY YARD. 121 JANUARY 31, 1859' LAWRENCE COHANE recalled. By the Chairman: Question. I will ask you whether the officers of the navy yard, the constructing engineers, &c., were efficient in the performance of their duties; and if not, what cases of neglect have been brought to your knowledge? Answer. The commodore I was not brought much in contact with -Commodore Kearney. Captain Rootes was the captain pro tern. most of the time I was there. He was one of the most efficient officers I ever saw; and if the navy yard and the shops belonged to him, and everything doing there was by contract, he could not have taken more interest in it than he did. Mr. Delano was a very efficient officer; he is the naval constructor. Mr. Graham was not as attentive; I mean in comparison to Captain Rootes; he was not there so many hours in the day as Mr. Delano. But Captain Rootes was extraordinarily attentive. Question. I want to call your attention particularly to whether you know of any neglect or remissness of duty by the officers of the yard. Answer. No, sir; I do not know of any. I will state that, in addition to those I have already mentioned, Lieutenant Worden was also very attentive to his duty. But Captain Rootes was particularly so. I could not speak too highly of his attentiveness while in the yard. By Mr. Bocock: Question. What time did you leave there? Answer. On the 9th of June, 1858. I went there on the 1st of June, 1857. FEBRUARY 2, 1859. LAWRENCE CORANE recalled. By the Chairman: Question. Did you have any conversation with Mr. Turner, the master painter, in regard to a requisition that was made for glass; and if so, what was the substance of it? Answer. I had a conversation with him; I was making out a requisition for glass, and he asked me to put in two boxes, 10 by 12, to send down to his place on Bay Side, where he was putting up a house. I do not know whether he said it in joke or not. Question. What reply did you make to him? Answer. I laughed at him. Question. What further did he say about it? Answer. He said that I might do it as well as not. I replied, "You are a pretty fellow, ain't you." That was the very reply I made. "You are a pretty fellow, ain't you, to ask me to make out a requisition for glass to be sent down to your building." Question. Did you do as he requested? 122 BROOKLYN NAVY YARD. Answer. No, sir, I did not; I did not think he could be serious about it. Question. Would there be any difficulty for a master workman in the navy yard to make out a requisition for more than was wanted in his department, and to apply the excess to his own use-any difficulty according to the present mode of doing business in the navy yard? Answer. If the man was dishonest, I do not suppose there would be any difficulty. Question. If I understand it, the articles obtained on requisition, after passing through the hands of the storekeeper formally, go into the possession of the master workman; is that so? Answer. Yes, sir. Question. Is there any further account kept of them after they go into his possession? Answer. No, sir. Question. If they are then applied to private uses, is there any way in which that could be detected? Answer. No, sir, unless it was seen. By Mr. Groesbeck: Question. How could he apply the excess without difficulty to his own use? How could he get it out of the navy yard? Answer. Of course I mean anything that he could carry out the gates secretly. Question. What articles could he take out without difficulty and apply to his own use? Answer. There are various things that a man could take outvarious small articles that he could put in his pocket. Question. Name some of them. Answer. A man could take out locks and bolts-copper bolts, for instance. In fact, I know of two cases where men were stopped at the gates and searched, and copper bolts found in their pockets. They were stopped by the officer at the gate and locked up for having copper bolts in their pockets. Question. Is there any one who has charge of these articles from the time they go into the navy yard until they are used? Answer. The naval storekeeper has charge of them before they are delivered to the master workman. Question. Well, after that; is there not some one who is directed to keep his eye upon them? Answer. The master workman has a clerk, or an assistant who acts as clerk, who does the writing required in that department, and keeps the books of the master workman, and he has charge of these things. He has these things generally in the room or office where he does his writing, and gives them out as they are required. Question. How could that matter be remedied? What further checks could be had to prevent the possibility of appropriating things to their own use than you have shown now? Answer. They might do so by being required to give an account to the chief of that department of the material they have on hand and the material they use, giving this account daily instead of monthly. BROOKLYN NAVY YARD. 123 Question. They do it monthly now, do they? Answer. Yes, sir. Question. Do not the accounts show whether all the materials that have come into their hands have been used in the yard or not? Answer. I do not know. These accounts, so far as I know of them, are hardly ever examined; at least they are not examined very critically. Question. Whose fault is that? Answer. I would suppose it was the fault of the chief of that department. Question. Whose fault would that be in the case you refer to of the locks and bolts? Answer. The constructing engineer has charge of that department. The copper bolts were taken from the naval constructor's department. Question. Do you mean to say that he is negligent in the performance of his duties? Answer. No, sir, I do not mean to say that. But there is a general looseness throughout the yard, I think, not in his case particularly, but in the case of the others, also. Question. Did y"ou testify of your knowing of any property being applied to private uses? Answer. I know of nothing except from hearsay, nothing of any consequence. Question. When were you turned out? Answer. On the 9th of last June. By Mr. Bocock: Question. Were you under the naval constructor? Answer. No, sir; I was under the constructing engineer of the navy yard. Question. When you drew any articles from the naval storekeeper, any materials for use, did the naval constructor examine them? Answer. No, sir. Question. Did he never have anything to do with them? Answer. No, sir. The naval constructor had nothing to do with them. Question. Did the constructing engineer, the chief of your depart ment? Answer. No, sir. It was the duty of the assistant constructing engineer to price the articles and see whether they were exorbitant. When the articles came into the storehouse, those which I may have called for for my department, I would go to the storehouse and would ask if Mr. Hastings, the assistant constructing engineer, had passed them; if not, then I would have to hunt around and look him up, and get him to come and examine them, and pass them before I could get them from the naval storekeeper. Sometimes he will have examined and passed them before I go to the store to see if they have come; and in that case I could take them right away. Generally speaking, it was necessary that he should look at these articles and price them and pass them. Question. The requisition is first made for these articles? 124 BROOKLYN NAVY YARD Answer. Yes, sir. Question. Does the constructing engineer or the assistant constructing engineer have a general requisition over the work under him, and the use of the materials under him? Answer. Yes, sir. Question. Suppose he was an efficient officer, would there be any opportunity afforded them to squander the materials and misuse them; or if it was done, would he not be able to detect it? Answer. He would, generally speaking; but you must recollect, however, that the works in the yard are very extensive. Question. Were the constructingineer and his assistant efficient officers? Answer. They did their duty so far as circumstances would admit, so far as my knowledge goes. The constructing engineer urged me to get along as fast as possible with the work. Question. You spoke the other day of a letter you received from Mr. Cochrane; have you that letter with you? Answer. I think it is in New York; I am satisfied that it is. Question.. You then stated, I believe, that Mr. Cochrane had written you a letter, saying that if you did not appoint a particular man he would have you turned out? Answer. Yes, sir; that he would have charges made against me, and have me turned out. Question. Did you appoint those men? Answer. Subsequently I appointed one of them. I did not at that time. Question. Did you find him to be a competent mechanic? Answer. No, sir, he was not. Question. What did you do with him when you found him to be incompetent? Answer. I retained him, of course, under the circumstances. Question. When was it that you appointed him? Answer. It was in August or September, I think; and I would say that he was not the only incompetent man I had. Question. In what year did this take place? Answer. In 1857. Question. You did not appoint the other man you was requested to appoint? Answer. No, sir, I did not appoint him just then; and I received some more letters from Mr. Cochrane. Question. Did you ever make complaint to the commandant of the yard, or to the Navy Department, that these incompetent men were forced upon you? Answer. No, sir, not to the commandant. Question. Did you complain to any one? Answer. Yes, sir, I complained to the constructing engineer; he was the chief of my department, and I communicated it to him. Question. You reported to the constructing engineer that you had an incompetent man? Answer. Yes, sir; I had several of them. BROOKLYN NAVY YARD. 125 Question. What reply did he make? Answer. He was not in favor of having these men employed there; but the inference was that if these men were strongly backed with political influence they would have to be employed there. That was the general impression throughout the yard. Question. Do you know whether the constructing engineer made any statement of the matter to the commandant of the yard? Answer. I do not. Question. And you do not know whether it was ever reported to the bureau that there were incompetent men employed? Answer. No, sir; I do not. Question. Who is the constructing engineer? Answer. Mr. Charles K. Graham. Question. Do you know whether Mr. Cochrane did lodge information against you before the department? Answer. I do not. Question. Were you ever informed of any charges made by Mr. Cochrane against you? Answer. No, sir. I was informed that he went to a certain individual in his district, and got a certificate from this individual that this workman whom I refused to appoint was a good workman; that this individual stated that he gave this certificate because he wanted a favor from Mr. Cochrane, though he knew at the same time that the man was not a good workman. Question. Do you know that he made the statement to Mr. Cochrane that the man was incompetent, and that he was giving a false certificate? Answer. No, sir; I understood afterwards that he said the man was incompetent; this was afterwards told me by a friend whom he told. Question. Do vou know whether you were ever arraigned by the competent authorities above you upon any charges made by Mr. Cochrane against you? Answer. Not that I am aware of. Question. You were never called upon to answer any? Answer. No, sir. Mr. Chairman, there was one question you asked me the other day, I should like to explain a little further. You asked why there was not that amount of work done in the yard that was done outside. I will explain why I think that is so. It is owing to the political influences which govern there, and which is an essential detriment in getting employment there, instead of ability, mechanical skill, and meritorious conduct by the performance of duty; these are generally not recognized in a man. By the Chairman: Question. Will good mechanics of either party apply for work in the navy yard, if they have to ask for these political influences? Answer. It is very rarely that they will do it. A good workman will not follow a politician up for a job. It is the poorest who harass them the most. 126 BROOKLYN NAVY YARD. By Mr. Groesbeck: Question. Do you say that the work done in the yard was not so good as that done outside? Answer. I did not say that. Question. What did you say? Answer. I said that there was not one-half the work done in proportion that there is done outside. Question. I understood you to say, in the course of your examination, that persons were taken in who were not good mechanics? Answer. Yes, sir, I said so. Question. State whether the character of the work done-I am not now speaking of the amount of work done-is not better than that done outside? Answer. No, sir; it is not so good, generally speaking. Question. Do you say the character of the work is not so good? Answer. It is not, generally speaking. Question. You say that a good mechanic will not take a recommendation to the navy-yard? Answer. No, sir; I do not say that. I say that, generally speaking, a good mechanic will not follow up the politicians in order to get employment in the yard. Question. Were you a good master workman in your department? Answer. I would prefer to have some one else answer that question. Question. Did you follow up any politician to get your place? Answer. I never asked for it; I never sought for it; I never knew anything about it until the appointment was made. I am no politician. By Mr. Ritchie: Question. How long were you in the yard? Answer. From the 1st of June, 1857, to the 9th of June, 1858. Question. Were any charges made against you before you were turned out? Answer. -Not that I am aware of. Question. Did you ever hear of any being made? Answer. No, sir. Question. Do you know for what you were turned out? Answer. As I stated before, I could not state positively; but, to the best of my judgment, it was on account of Mr. Haskin's course last session in regard to Lecompton. By Mr. Groesbeck: Question. Who recommended men to you for employment in your department? Answer. Members of Congress. Question. What members of Congress? Answer. The New York members. Question. What members, particularly, of the New York delegation? Answer. Some of them recommended more than others. Question. Who recommended the most? Answer. Mr. Taylor had the largest number of men in my department while I was there. Question. Were they there when you went in there? BROOKLYN NAVY YARD. 127 Answer. Yes, sir. Question. Who made the most recommendations to you to put in men? Answer. I think when I first went there I had more men from Mr. Taylor's district; afterwards I had more men from Mr. Haskin's district. But I had men from all their districts: from Mr. Cochrane, Mr. Haskin, Mr. Taylor, Mr. Searing, Mr. Horace F. Clark, &c. There were nine members among whom I intended to divide the appointment of men in my department. It was stated to me that it was the wish of the department to proportion the men employed there among the members of Congress. By Mr. Bocock: Question. Who stated that to you? Answer. Several persons stated it to me. Question. Name some of them. Answer. The constructing engineer stated it to me. Question. Did Mr. Clark ever recommend anybody to you, either in person or by letter? Answer. Mr. Clark never sent but one letter to me; he troubled me less with letters than any of the other members. Question. How many did he recommend to you? Answer. He sent but one letter to me. Question. Did he recommend anybody in person? Answer. He sent one or two men to me by Mr. Alexander Ward. By Mr. Groesbeck: Question. Where are you now stopping? Answer. I am doing business in New York City. LAWRENCE COHANE. NEW YORK, June 13, 1857. Mr. COHANE: Mr. Cullen tells me that you are to take men on on Tuesday; now I ask you to take him on and the others I have asked you to take on. I will have my proportion of men under you; if you do not give them I will lodge charges against you. You have turned away all the men but one from my district already. Of this I have complained to the Secretary, and now, unless you rectify this injustice, I will make application that you be turned out. The bearer will bring me an answer. Yours, &c., JOHN COCHRANE. No. 17.-TESTIMONY OF WILLIAM MERRIFIELD, BROOKLYN NAVY YARD' JANUARY 31, 1859. WILLIAM MERRIFIELD called and examined. By the Chairman: Question. Mr. Merrifield, what is your present occupation? Answer. I am a master blacksmith. Question. In the Brooklyn navy yard? Answer. Yes, sir. Question. How long have you been there? 128 BROOKLYN NAVY YARD. Answer. It will be six years on the 29th of April. Question. How many men have you usually had under your charge? Answer. The general average will be about eighty men. Question. There are smiths, helpers, and laborers in your department? Answer. Yes, sir. Question. Who selected the men under your department? Answer. Previous to a year back, I had the selection of them. Question. During the last year how have they been selected? Answer. Indirectly, I have not had the selection. Question. What was the mode of selecting them during the last year? Answer. It was by members of Congress recommending them to us. Question. State whether or not you were compelled to appoint those named to you by members of Congress? Answer. I was, sir. Question. By what means were you compelled to appoint them? Answer. By threats that if I did not do so I would be discharged. Question. Who made those threats? Answer. Mr. Cochrane and Mr. Kelley; the others did not. Question. State whether any disputes arose between members of Congress in regard to the division of the patronage in your department? Answer. I presume there did; there was considerable wrangling, as I have heard. Question. Don't you know it to be a fact? Answer. Yes, sir. Question. What was the character of the men recommended by members of Congress to you? Answer. Nine out of ten were an inferior class of men. Question. Men who had been active in political matters? Answer. Yes, sir. Question. And recommended on account of their standing or influence in the party? Answer. It was pretty much so, sir. Question. What effect had that upon the power of your department to do effective labor? Answer. It was very injurious to me, sir; it deprived me of the power of conducting the work in the manner that I should like to have conducted it. Question. State whether or not the men recommended to you were skilled in the trade of blacksmithing. Answer. They were not in most cases, but there were some rare exceptions. In the first place, a good mechanic will not humble himself enough to go to a politician to seek for a job of work, as his mechanical qualifications will always recommend him, and he can always get employment. But these fifth rate fellows who cannot get employment outside, will make themselves very influential with poli. ticians for the purpose of getting employment in the navy yard; and hat is the class of men that is forced upon us the hardest. I would, BROOKLYN NAVY YARD. 129 at any time, thank a member of Congress for recommending a good workman to me, for it would be a pleasure to employ him. Question. Were there men sent to you by members of Congress as smiths who had no experience at all in the trade? Answer. There were some who had very little experience, if any, particularly in our line of business. Men have been recommended to me who were very good carriage smiths and very good horseshoers, but who knew nothing about steam engines or the ironing of ships. Our work is very heavy, and it requires long practice to learn it so as to be experienced in it. Question. Were these difficulties brought to the attention of your superior officer? Answer. Yes, sir; I always did so; I reported it to the naval constructor and to Captain Rootes, time and again. Question. What did the naval constructor say when you reported it to him? Answer. He said he was sorry for me, but he could not help it. Question. Was you informed where these orders emanated from? Answer. It was reported that they emanated from the Secretary; it was his order to distribute the patronage of the different departments. Question. Do you know that? Answer. I do not know it; I have heard so. Question. Did the naval constructor say anything to you about where the orders came from? Answer. No, sir. Question. When you made complaint to Captain Rootes, what did he say? Answer. He said he saw it, but he could not help it. Question. Where master workmen refused to appoint these men, what was the result? Answer. As I before remarked, we got threatening letters at times; it was not always so; some members of Congress would not write a letter of that kind. Question. Have you letters of that character with you now? Answer. I have none with me, but I have them at home. Question. I will ask you to send us some by mail, directed to me, and I will attach them to your deposition.-(See appendix.) Answer. I will do so, sir. Question. I will ask you what amount of work can the laborers you had employed perform in comparison with well selected and skilled laborers in that business? Answer. I have got now some as good men as ever worked at a smith's forge. I have some men who have been in the yard twentyfive and thirty years, and we keep them there because they are practically experienced in naval matters in ironing off ships, working on steam engines, &c.; I have increased my force unnecessarily, because I could not discharge these men to make room for inferior men. I say I have increased the number for that reason, and could do with less 9D 130 BROOKLYN NAVY YARD. if I had my own management of affairs; that is the plain matter of fact. Question. What is the comparative value of one of these men recommended to you by members of Congress with one of your own laborers? Answer. About one-third. Question. Was there any efforxt during September or October last to increase the number of men in the navy yard, to your knowledge? Answer. Yes, sir; there was. Question. How general was that? Answer. It was pretty extensive. Question. Who made that effort? Answer. All the members of Congress in the different districts. Question. What was the increase of force? Answer. There was quite an increase throughout the yard. In my department I increased my force some 25 men. Question. What motive was urged upon you to increase your force? Answer. Merely to find places for men who were recommended to me for political purposes. Question. Was you compelled to yield to this demand to any extent? Answer. Yes, sir. Question. Can you state about the number of men that, in your judgment, taking the whole navy yard through-the number of men was about 2,300 in October, I believe? Answer. Yes, sir. Question. Well, can you state how many useless men there were in the navy yard in October? State as near as you can judge. Answer. I could safely say that we could have done with one-fourth less. Question. Was there the same general increase throughout the other departments? Answer. Yes, sir; it was through the whole yard. Question. I will ask you whether it was not understood that particular master workmen were to administer their patronage for the benefit of particular members of Congress? Answer. Yes, sir; that was the case. Question. These divisions of patronage were well known among the master workmen and among the officers in the yard? Answer. Yes, sir. Question. With regard to the division among the master workmen, can you state the proportions? Answer. The yard was canvassed about a month ago, and the result was sent to the Navy Department; they have it on file. Question. As to the number of appointments in each district? Answer. Yes, sir. Question. I will ask you whether any levies or contributions were ever made upon the men for testimonials or the like. Answer. None, sir, to my knowledge, unless they were voluntary. Question. Were there any contributions or levies made for political objects? BROOKLYN NAVY YARD. 131 Answer. There were contributions made, but they were not forced ones; it was previou to the election, and somebody or other around the shop raised contributions for ward purposes and divided it around; it never amounted to any great sum; there was no forced contribution. Question. A witness by the name of Reilly has testified that in one case, several years ago, upon a requisition made by you, the navy agent purchased iron on open contract at 51 cents, when it was furnished to the government on contract at 3. Do you know anything about that? Answer. Yes, sir~;that is a fact. Question. I will ask you whether you had any control over the price? Answer. I had nothing at all to do with it; nothing more than when the, article was delivered in the yard I was called upon by one of the storekeeper's clerks to inspect the quality of the iron. I inspected the quality, and reported it as good. The price I know nothing about, only as, in making out our monthly accounts of expenditures, we go to the storekeeper to ascertain the price of the materials that have been expended, so as to govern ourselves thereby. Question. You did not consider yourself responsible for the price paid by the navy agent? Answer. Not at all. Question. You remember the fact? Answer. Yes, sir; I[ know who it was that furnished it, and the man would make an affidavit before the committee that I knew nothing at all about the price. Question. That is not necessary. The same witness testified that in another case, upon a requisition made by you, the navy agent purchased a pair of bellows for $150, when their true value, I think, he fixed at $80. Do you know anything about that? Answer. There were two bellows repaired. and they were $75 apiece, amounting to $150. I can state the facts in regardt to. that case. I made a requisition to have two bellows. At that time we were blowing hand bellows in the smithery; now we go by bllastilhg. Well, there were bellows that originally cost $250 —mammoth bellowsthat we used on our heavy work; but the leather had become rotten, so that they would hold no wind, and we were obliged to have new bellows or to have these repaired. I reported to the constructor,. Mr. Delano, that it was necessary to have these repaired, or to have, new ones in their place, and there was a survey ordered to be heldc upon them; the result was that the bellows were ordered to be repaired. I made a requisition that there were two bellows in thesmith's department that required repairs. It was approved by the officers of the yard and sent to the navy agent, and the navy agent gave his order to a gentleman by the name of Glazier, who was then a contractor for the yard to furnish goods. He sent to the yard for the bellows; they were repaired and returned. I was called upon to inspect them and see if they had been repaired satisfactorily; I did so, and then my duties in connexion with the matter ceased. Question. You had nothing to do with the price? 132 BROOKLYN NAVY YARD. Answer. Nothing in the world, sir. Question. Does the master workman in practice hold himself, or is he held by the officers in charge, responsible for the prices of articles bought in open purchase? Answer. No, sir, he does not. With regard to these bellows, Coin' modore Boarman was captain of the yard at the time, and he was so particular about endorsing bills, for fear there would be overcharges, that he even ordered a board of officers to examine these bellows. The board consisted of the chief naval constructor, the chief engineer of the yard, and Lieutenant Boggs, I think-I am not positive about him, but I think it was him; he was first lieutenant of the yard-and they reported that the charges were reasonable, and I thought they were myself. The idea of paying $75 to repair a bellows might appear large in the estimation of you gentlemen, but if you could see the bellows you would form a different opinion. They were tremendous bellows-the largest class of bellows ever used in the smith's department, and originally cost $250. I discharged that gentleman, Mr. Reilly, and it was nothing but malice that ever brought him here. Question. When was the pressure upon you and other master workmen in the navy yard the strongest for appointments? Answer. Just previous to the State election. Question. The last November election? Answer. Yes, sir. Question. Was there any reduction made in the force afterelection? Answer. Yes, sir. Question. To what extent was the reduction carried? Answer. I dare say there was about one-third of the actual force in the yard dismissed. It might not have been so extensive; it would be safe to say one-quarter. Question. I will ask you whether the men employed in the navy yard do as much work as persons in private employment on the same wages and the same work? Answer. No, sir, they do not do as much work; but they do their work a little better, take a little more pains, and finish it up with a little nicer taste; consequently, there is not so much done. Question. What is the proportion? Answer, I should say two-thirds. Question. Of the men recommended by these members of Congress, what is the proportion of men born in this country and men born out of the country, as near as you can give it? Answer. I suppose that two thirds were born out of the country. Question. Were they native or naturalized citizens? Answer. Naturalized citizens. Question. Do you know anything about any materials being taken from the navy yard? Answer. I do not, sir, Question. Do you know anything about public property being used for private purposes? Answer. I do not, sir, Question. Do you know anything about the sale of employment in the navy yard by any one? BROOKLYN NAVY YARD. 133 Answer. No, sir; I have heard a good deal of that, but I have never known a positive instance of it. Question. You have never known a case to occur, within your own knowledge? Answer. No, sir. I have always looked upon it in this light-it would be a perfectly suicidal course, for it must come out. There is no such thing as preventing such a thing from being exposed in a short time. Question. Has not the complaint been general that such a practice existed? Answer. Well, sir, I have had offers of that kind often. I have had men send their wives to me to get their husbands employment, saying that their husbands would give twenty-five dollars for a situation; but I always refused such offers. Question. Whether such offers have been accepted by others you cannot say? Answer. No, sir; I cannot say. Question. Was this offer-of money for employment a general thing? Answer. Well, sir, I was only cognizant of that which took place in my own department. Question. Do you think it was a general thing? Answer. Yes, sir, I should think it was. By Mr. Bocock: Question. Was there any great increase in the number of workmen in the navy yard made before election? Answer. Yes, sir. Question. How long before? Answer. About a month before election. Question. I mean to fix the time between the discharge of Captain Rootes, which was about two weeks before the election, and the election. Was there any great increase during this time? Answer. I do not think there was any great increase in that time; there was some, but not to any great extent. Question. When this diminution of the number of men was made was there any diminution of the work? Had you gotten off any work in the mean time? Answer. Yes, sir. Question. What work? Answer. There were two or three of these vessels attached to the Paraguay expedition. Question. Was the diminution of the number of men proportionate to the diminution of the work, or did you understand it to be a diminution of the number of men because the election was over? Answer. Oh, no, sir; that was not the case. It was merely this: We had an order of the constructor to curtail the number of men in our different departments-as many as we possibly could, keeping enough to conduct the work that was then under way; and discharges were made accordingly. Question. Have you been cognizant of work done for the govern' 134 BROOKLYN NAVY YARD. ment in other departments of business-have you known anything about the manner in which work is done for the government in other places besides the navy yard? Answer. Yes, sir. Question. Do men in the employ of the government work as much as men in the employ of private individuals? Answer. No, sir. Question. How does the amount of work done in the New York navy yard compare with the amount of work done for the government in any other department of public work; for instance, the work on this Capitol, or anything else, within your knowledge? Answer. I should not think there was much difference; men do not do as much work in the yard as they do outside for individuals. Question. Who was the navy agent at the time of the repair of the bellows that has been alluded to? Answer. Mr. Swackhamer. Question. I understood you to say that you discharged Mr. Reilly from the yard? Answer. Yes, sir. Question. Upon what ground did you discharge him? Answer. Well, sir, when I was an applicant for the situation he libeled me and abused me in every manner he possibly could. He was instrumental in getting up a false appointment and had it directed to me, to get me to report myself to the commander of the yard, under the supposition that it was a genuine appointment. Question. I will ask you what you understand to be Mr. Reilly's general character? Answer. I can bring the evidence of members of Congress, I can bring the evidence of some of the best men in New York City, who say that they would not believe him under oath. Question. State simply this, whether you know the general character of Mr. Reilly? Answer. I do, sir. Question. What is that general character? Answer. He is a malicious person. Question. Would you, from your knowledge of his general character, believe him upon oath? Answer. I would not, sir. WM. MERRIFIELD. FEBRUARY 2, 1859. WILLIAM MERRIFIELD recalled. By Mr. Bocock: Question. Did you state, in your examination the other day, anything about having incompetent men under you in the navy yard? Answer. Yes, sir. Question. Have you had incompetent men under you there? Answer. Yes, sir. Question. How were those men appointed? Answer. I appointed them. BROOKLYN NAVY YARD. 135 Question. Upon whose recommendations? Answer. Upon the recommendations of members of Congress. Question. What members of Congress? Answer. Pretty nearly all from that part of the State. Question. Do you remember any particularly incompetent men, and by whom they were recommended? Answer. Yes, sir. Mr. Cochrane recommended some; Mr. Kelly did in particular. Question. What did you do when you found the men to be incompetent? Answer. In two instances I discharged them; and I then received letters from Mr. Cochrane to the effect that if 1 did not put that man to work again he would have me discharged; he not knowing at the time what I discharged him for. Question. What did you do then? Answer. Why, I employed them again, as a matter of course. Question. Who is your superior officer? Answer. The naval constructor, Mr. Delano. Question. Did you report this matter to him? Answer. Yes, sir. Question. Did he or you ever report it to the commandant of the yard? Answer. No, sir; not that I know of. Question. Do you know whether anything of this sort ever came to the knowledge of the bureau? Answer. I do not think so. I complained to Captain Rootes about it, as I did also to Mr. Delano, the naval constructor. Question. You say that Mr. Cochrane wrote to you that if you did not put the man back again you would be turned out? Answer. Yes, sir. Question. And you put him back again? Answer. I did. Question. Were you doing justice to the government in putting him back again when you knew he was incompetent? Answer. No, sir. Question. Did you prefer your office to doing justice to the government? Answer. In this case it was simply a question whether I would lose my place or put that man to work, and I preferred to retain my place. Question. In how many cases were incompetent men recommended to you by Mr. Cochrane? Answer. In two cases particularly. Question. Did Mr. Clark ever recommend any man to you? Answer. Yes, sir. Question. How many? Answer. Some four or five. Question. Did you appoint any of them? Answer. Yes, sir. Question. How did they turn out? 136 BROOKLYN NAVY YARD. Answer. They were about the ordinary run of mechanics that are recommended there by members of Congress. I would say that in the first place, a good mechanic will not apply to members of Congress for any political influences to get a job of work. He will depend upon his mechanical merits altogether to get work. Question. Who recommended you? Answer. I was recommended by all the. ship builders of New York, and by George Law particularly. I was appointed under Mr. Dobbin, and at the time I was appointed I was endorsed by all the members of the city and county of New York. Question. Did you apply to the members of Congress? Answer. Yes, sir; and they all endorsed my application at the time. Question. Are you of the opinion that a good mechanic will not apply to a member of Congress for recommendation? Answer. It is very rarely that he will. Question. How many incompetent men did Mr. Kelly recommend to you? Answer. I suppose a dozen-perhaps more. Question. Did you put them all in? Answer. I employed them at the time, but I discharged some of them afterwards. When I did dismiss any men, I kept the best. Question. How many cases were there where you retained incompetent men-men whom you knew to be incompetent? Answer. I suppose, perhaps half a dozen instances; and I wish to add that I was informed by their members of Congress that if I did not give them their portion of men they would have me discharged. Question. What members told you that? Answer. Mr. Cochrane told me that. Question. Was he the only one? Answer. Mr. Kelly did also, some three years ago. Question. When did Mr. Cochrane make this statement to you? Answer. I think it was some eight or ten months ago. By Mr. Groesbeck: Question. What is the character of the work done in the navy yard? Answer. It is good work. Question. Is it better than the generality of work done outside? Answer. It certainly is. We take more pains to do our work well. We put none but the best hands on our good work; but the great difficulty with the men we employ is that they are apt to be disobedient. They depend upon the political influence of their members of Congress to be retained rather than their own merits or good behavior; and if I say anything to them they will look upon it with indifference, and, in some cases, will tell others that if I discharge them they will be put back there by my master, meaning the respective members who recommended them. Question. Are you still employed in the yard? Answer. Yes, sir. WM. MERRIFIELD. BROOKLYN NAVY YARD. 137 No. 20.-TEsrim NY OF JoHN A. SEARING, HOUSE OF REPRESENTATIVES. JANUARY 31, 1859. JOHN A. SEARING called and examined. By the Chairman: Question. Are you acquainted with the master painter in the Brooklyn navy yard? Answer. Yes, sir. Question. Upon whose recommendation was he appointed? Answer. I do not recollect the names of those who gave him letters. Question. Did you join in his recommendation? Answer. I did. Question. Was he from your congressional district? Answer. Yes, sir. Question. Was there any understanding between the members of the New York delegation. as to the division of the patronage of the Brooklyn navy yard? Answer. I do not know of any. Question. Upon whose recommendations were the workmen in the Brooklyn navy yard appointed? Answer. I suppose ofn members of Congress and their friends. I signed a number myself. Question. - Did you not claim of Mr. Turner and others that as he was appointed upon your recommendation you had a right to the patronage of his department? Answer. No, sir, I never did. Question. Has Mr. Turner done any work for you since he was master painter? Answer. No, sir; nor before. Question. Has any of his employes or subordinates? Answer. He has a man now employed who worked for me a couple of days some time before he was appointed in the yard to his present position. Question. What is his name? Answer. I think it is Craig. Question. Has he worked for you any since he was appointed? Answer. Not that I know of. I have not had but four days' painting done for three years past until this winter. Question. Do you know of any inducements or promises made or held out to any master workmen in the Brooklyn navy yard to appoint mechanics? Answer. I do not know that of myself. I have heard these things talked of. Question. Do you know of any case in which the master workmen have received either money, gratuities, or presents? Answer. I do not know of any. I do not think I have been in that navy yard, on an average, once a month since I have been in Congress. When I came into office I found that there was no important appointment from my district there, and I merely went into the yard, at the suggestion of some workmen from my district, to see if they could not 138 BROOKLYN NAVY YARD. get the benefit of a share of the work then carried on; and all the intercourse I have had with these gentlemen has been at intervals when I went there to see about these applicants for place. Question. Did you recommend workmen to these masters? Answer. I have done that frequently by letters, and sometimes verbally; but I have told these master workmen that I would not have them to employ any man from my district who was not competent to do his work; but that matter must be left to them as the judges. Question. Do you know of any case in which the government property was used and applied to private purposes? Answer. Not one. Question. Have you had any correspondence with the Secretary of the Navy in regard to the division of patronage in that yard? Answer. Yes, sir; I have been at the Secretary's office several times. Question. State the nature and purport of that correspondence? Answer. I went there to complain of the position of my district that we had a great many excellent mechanics hard by the yard, and but few of them were employed there. Question. Were these complaints made in person? Answer. Yes, sir. Question. What orders, if any, did you learn were issued upon your complaints? Answer. I never heard of any. Question. Were those complaints in connexion with the appointment of William Turner, master painter? Answer. No, sir; he was not appointed until a long time after that. Question. At the time Turner was appointed, did you then make complaint in regard to the distribution of patronage? Answer. I do not think I did. The applications, recommendations, and letters of Mr. Turner were lying here a long while before the Secretary of the Navy acted upon them. Question. Did you complain to any member of Congress that you did not have your fair share of the patronage? Answer. I have done so often, probably. Question. Did you ever say that, in case this was not rectified and made right, you would pursue a certain course different from what you were then pursuing? Answer. I do not know as I ever said that. I thought there should be an equal division of these matters among the mechanics of those districts contiguous to the yard. Question. Did you ever notify or tell any officer in the Navy Department, either the Secretary of the Navy or a subordinate, that in case Turner was not employed, and you did not receive your share of the patronage, you would not pursue a certain course? Answer. I did not, I think; I do not recollect of any such thing. Question. Did you have any such correspondence with the department? BROOKLYN NAVY YARD. 139 Answer. I did not; I am certain that I did not send any such letter as that. Question. Do you remember the date of Mr. Turner's appointment? Answer. I do not. Question. Had you ever in your employ a man of the name of White, who did painting for you? Answer. I had a man whose name was Craig, I think; that was merely a couple of days; I have not had four days' work of that kind of work done in three years. Question. Do you remember any arrangement among members of Congress, or any interview between members of Congress from the State of New York and the Secret try of the Navy, in which it was agreed that the patronage of that navy yard should be divided among the different districts? Answer. I do not know of any such understanding It may be that the Secretary of the Navy felt disposed to let each locality have a fair representation; but of his asking, or there being an understanding that it should be so, is more than I can tell. Question. Did you ever sign any paper in regard to that? Answer. I do not recollect that I did. I know that I was very anxious for my own district, and wanted to see these favors divided out upon a fair and equitable basis. Question. Is there any fact in relation to the organization or the management of the navy yard at Brooklyn that you desire to state to the committee? Answer. I know nothing more about that; I have made application to have men employed but could not get them in. A portion of my district has a great number of mechanics; at Green Point the ship carpenters are the largest interest there. A great many mechanics in my district during the recent crisis were thrown out of employment, and have been anxious to get into the navy yard. By Mr. Groesbeck: Question. Did you ever recommend a man to a mechanical department who was not himself a mechanic in that particular line? Answer. Not that I know of; I have told them a number of times that if I sent them men who were not mechanics, they were judges of that, and should not employ them. I have no doubt I have recommended such men, not knowing who they were, but they have been discharged, I believe. By Mr. Bocock: Question. Is the patronage of that yard equally divided among the several districts? Answer. I expect that Brooklyn has the largest share; I do not know. Question. How many appointees are there from your district, as far as you know? Answer. I should think probably thirty or forty; but that is mere guess work with me. By the Chairman: Question. Can you state anything about any mismanagement of the 140 BROOKLYN NAVY YARD. yard; any failure of the workmen to do their duty, or of their getting pay and absenting themselves? Answer. I know nothing about that I do not live within twenty miles of the navy yard, and I only go there when I wish to do an act of kindness for one of my friends, or have some business with one in the yard. Indeed, I do not think I know all the bosses in the yard. There are a number of departments therein which I should not know those who have charge of them, if I were to go in the yard. Question. Did you say that these men employed to do this painting for you were not then employes of the government? Answer. They were not in the employ of the government then, but I think that Mr. Craig was soon afterwards appointed foreman Question. Where did you make the contract with these men to do this painting? Answer. At my private residence. I think that Mr. Craig was appointed very soon after this to the position formally held by Mr. Fitzgerald. I think so, but I have not been in the yard for the three months past, that I know of. Question. Was the paint used to do this painting some of the paints of the government? Answer. No, sir; not one particle of it I bought it for myself. Question. Were there any men from the navy yard attending the congressional conventions in your district? Answer. Mr. Turner was a delegate to the county convention. By Mr. Bocock: Question. Does it come within your knowledge that gentlemen from the navy yard participated in conventions in districts where they did not then reside? Answer. I never knew anything of the kind. JOHN A. SEARING. No. 40.-JOHN L. WHITE. FEBRUARY 4, 1859. JOHN L. WHITE called and examined: By the Chairman: Question. Where are you employed? Answer. in the Brooklyn navy yard. Question. What is your position there? Answer. Journeyman painter. Question. Who is your master workman? Answer. Mr. Turner. Question. Where is he? Answer. In New York, I suppose. Question. Do you remember any occasion in which some white lead was taken from the navy yard to paint Mr. Turner's house? Answer. No, sir. Question. Do you remember any occasion when any paint was taken away from the yard in a boat? Answer. I do, sir. BROOKLYN NAVY YARD. 141 Question. State all that you know about that matter. Answer. There was a keg of lead taken from there. At that time we were at work on what is called the Block, which is a small island by itself; we were painting inside the shell house, an addition built to the old shell house; I was at work there, and Mr. Fitzgerald was then our foreman; he gave me an order to take a keg of lead from the shop and put it in the boat, and I supposed at the time that it was for use there at the time; there were some bags there, sume hammock bags, painted black, and there was an old one there; Mr. Fitzgerald said, "put this lead in the bag and take it along." I did so, as he ordered me, as he was my boss when our boss was not there. I took it and put it in the boat; there were Mr. Fitzgerald, Mr. Henry S. Lightner, and myself, in the boat, and we landed it on a dock in Williamsburg, opposite this Block, and I do not know what became of it afterwards. Question. Did Mr. Turner know anything about this matter? Answer. No, sir; I do not think he knew anything about it. Question. Did he ever say anything to you about it? Answer. No, sir; he never said a word to me about it. Question. You did what you were told to do? Answer. I did do it at Mr. Fitzgerald's order, as I would do anything else he would tell me; I would do it if he were to tell me to take a ton of it. Question. Did anybody else ever ask you to do anything of the kind? Answer. No, sir. Question. Did you do any work for Mr. Turner out of the yard? Answer. No, sir. Question. Did you ever do any for any member of Congress? Answer. Yes, sir, I have. Question. For whom? Answer. For Mr. Searing. Question. Who paid you for that work? Answer. Mr. Searing did himself. Question. At the time that you did this work for Mr. Searing were you employed in the navy yard? Answer. Yes, sir. At the time there was very little work doing in the yard, and Mr. Searing had some work to do, and I and a man named Craig did it for him. Question. Were you paid by the government during that time? Answer. No, sir; as far as the boss is concerned I never received the first farthing from him at any time for that time while I was doing work for Mr. Searing. Question. In whose district do you belong? Answer. In the district of Mr. Searing; we belong to his district. By Mr. Bocock: Question. Do you know of any other public property being taken from the yard at any time? Answer. I do not; it is something I would scorn to do for myself. Question. Did Mr. Fitzgerald give any explanation about this matter? 142 BROOKLYN NAVY YARD. Answer. He only said to me "keep quiet about it." Question. Where did you get this lead? Answer. Out of the paint shop. Question. Had it been drawn by a requisition upon the naval storekeeper? Answer. I do not know about that. I have nothing to do with that. I am only a journeyman. Question. Do you know whether any information of this has ever been given to the naval constructor, or to the commandant of the yard? Answer. I do not think they knew anything about it. By Mr. Ready: Question. Did you "keep quiet about it," as Mr. Fitzgerald told you? Answer. Yes, sir. JOHN L. WHITE. No. 44.-RICHARD H. TELLER, MORRISANIA, NEW YORK. FEBRUARY 7, 1859. RICHARD H. TELLER called and examined. By Mr. Bocock: Question. Are you acquainted with Mr. Turner, master painter in the Brooklyn navy yard? Answer. Yes, sir. Question. Have you had anything to do with recommending men to be appointed under him-? Answer. I once wrote a note, at the request of a Mr. Donelly, asking him to appoint a man whom Mr. Donelly represented to me to be out of work, with a family in a starving condition. He asked me to write a note, and I did so, and the man was appointed, and I believe he was kept there some two weeks. Question. Upon what consideration did you ask to have this appointment made? Answer. None. Question. What argument did you use in your note to get the appointment made? Answer. I merely wrote a formal note, asking him to appoint this man. Question. What inducement did you offer to Mr. Turner to appoint him? Answer. None at all; I never saw Mr. Turner but twice before I saw him in this city yesterday. Question. Did you offer him any present whatever? Answer. No, sir. Question. Did you ever send Mr. Turner a present of any kind? Answer. No, sir. Question. Did anything ever pass between you and Mr. Turner in the way of money or a donation of any sort? BROOKLYN NAVY YARD. 143 Answer. No, sir. Question. Was anything said about giving Mr. Turner any liquor on this occasion. Answer. I believe that Mr. Edson came to the store and I said to him, " I see that your friend, Mr. Turner, is appointed, and I think I will get him to appoint a man for me." Says he, "Oh, yes; he will do it, if you will give him five gallons of brandy." I laughed at him and thought nothing more about it. A little while afterwards he came to me and said that Turner wanted me to send him five gallons of brandy; I bought it from W. E. Boram, and sent it over to him. Question. When was this that you sent it? Answer. I could not tell you; it was before July, I think. Question. Was it before or after you recommended this man to Turner to be appointed?. Answer. I really could not say; I think it was. I did not see Mr. Turner but once or twice after that; I think I saw him in October or November, but he was talking with another man, and I did not interrupt him; but I know that I sent my bill out to him in October for the brandy, five gallons, at $5 50 a gallon, and a demijohn at 75 cents, making $28 25. Question. Did he pay you? Answer. He has not done so yet, but I calculate upon getting my money. Question. What reason did he assign for not paying it? Answer. No reason at all. Question. What did he say to you? Answer. I did not see him; I live out of town; I do not have time before and after my official duties for the day except to come from and return to my home, and I never see him unless he may come to my office, which he has done once or twice only; I saw him once with a friend of mine, Mr. Willis, but he was in conversation with him,.and I did not interrupt the conversation. Question. When did you send the bill? Answer. I sent it in October last. Question. By whom did you send it? Answer. I enclosed it in a note and sent it by a messenger. Question. Did you get any message in reply? Answer. Nothing, except that the messenger said he had delivered the note. Question. What induced you to recommend the man for Mr. Donelly? Answer. Mr. Donelly said he wanted to get a man appointed under Mr. Turner, and asked me if I could get one appointed; he said that this man was in a state of starvation, and asked me to do this as an act of charity; I sat down and wrote this note, and I believe the man got the place. Question. What induced you to think that you could get Mr. Turner to appoint this man? Answer. I do not know. I wrote a note stating the circumstances 144 BROOKLYN NAVY YARD. as they were stated to me, and supposed that Mr. Turner would appoint the man as a matter of charity. Question. Why should Mr. Turner send to you to get liquor for him? Answer. He knew I was in a position to get pure brandy. Question. What position do you occupy? Answer. I am assistant appraiser for the port of New York and the articles that come under my care are wines and liquors. I have been called upon by Mr. Schell, by Mr. Haskin, by Mr. Sickles, by Senator Gwin, and others, to get wines and liquors for them. And I would say that Secretary Guthrie also sent to me to get him some liquor. Question. When this man was turned out-the one that you recoimended to Mr. Turner-what steps did you take about it? Answer. I took none. Question. What steps did Mr. Donelly take; did he come to you about it? Answer. I really forget about that. Question. Did he not complain to you that this man was turned out, and asked you whether the liquor was sent? Answer. Not to my knowledge. Question. What was said about sending liquor to Turner, in the conversation between you and Donelly? Answer. Nothing that I know of. Question. Did not the matter come up between you and Mr. Donelly? Answer. Not that I know of. Question. Was the man reappointed after being turned out? Answer. I think Mr. Donelly got him another situation as a carpet weaver, or a weaver of some kind. I do not know, in fact, how that is. Question. Was he taken back into the navy yard? Answer. Not to my knowledge. I never spoke to Mr. Turner about it. I never saw him but twice since then, perhaps three times, and then I had no opportunity to speak with him, as he was busy with other gentlemen. Question. Did you not claim some right to have this man appointed, because you had been kind to Turner in sending him this liquor? Answer. No, sir. Question. Did you make any allusion to this liquor matter when you wrote the letter to Mr. Turner? Answer. No, sir. Question. Then how came Mr. Donelly to know about your purpose to send him liquor? Answer. He may have heard me talking about it in the appraiser's office; he may have heard me jest with Mr. Edson about it when he asked me to send this liquor to Turner. I may have told him about it. Question. Did you ever have any other man appointed under Mr. Turner? Answer. No, sir. Question. Did yon ever recommend any body else to him? BROOKLYN NAVY YARD. 145 Answer. No, sir; not that I recollect. Question. Was this five gallons of brandy the only liquor you ever sent to him? Answer. Yes, sir. I never spoke to him about it at all. But I shall do so, after I leave this committee room, as soon as possible, and if he has got $28 25 about him, I calculate to get it. Question. Do you know any negligence upon the part of Mr. Turner, or any other person, in the yard? Answer. I have never been in that yard but once in my life, and that was twenty-eight years ago, when I was 13 years of age, and I went over there as an errand boy. I think I know but two persons in the yard. Question. Is Mr. Donelly a particular friend of yours? Answer. I do not know that he is. He was introduced to me by Mr. Willis, a friend of mine. I have known him but a short time. Question. Is he a man of high character and good standing? Answer. I do not know anything against him. All persons have their enemies. I heard one person speak against him, but I did not notice it. Question. Did you, in trying to get this man appointed by Mr. Turner, allude to the favor you had done him, and ask him to do this favor for you in return for sending him that liquor. Answer. I did not. I will say that when I was requested to send him that liquor, I understood it, as I did all other requests of the kind, to be paid for by him. RICHARD H. TELLER. No. 46.-LAWRENCE KEARNY, UNITED STATES NAVY. FEBRUARY 7, 1859. LAWRENCE KEARNY called and examined. By the Chairman: Question. What is your position in the navy of the United States? Answer. I am a captain in the navy. Question. Where were you on duty in the year 1858? Answer. I was in command of the navy yard at New York, but was the most part of the time in Washington on court of inquiry duty. Question. When were you removed from the navy yard at Brooklyn'? Answer. I was relieved from command on the 25th of October, 1858, by an order signed "Isaac Toucey." Question. Have you a copy of that order? Answer. I have the order itself here.-(See published papers-from the department.) Question. Have you a copy of your reply? Answer. No, sir, I have not; it was simply acknowledging the receipt of the order. Question. Please look at the paper now shown, and see if is voue reply? Answer. [After reading the paper.] Yes, sir, it is; I was ordered by the Secretary to report by letter. 10 D 146 BROOKLYN NAVY YARD. Question. Had you any controversy, or conversation with Mr. Taylor, member of Congress from the Brooklyn district, shortly before your removal? Answer. Yes, sir; I had. Question. State fully that conversation; all about it, Answer. It commenced by his calling at the housewhere I was stopping in the yard, the commandant's house, for I was not living in it at the time, but was only occasionally there; he came to me at the commandant's house, and spoke to me about whether some men had been taken on the list at the yard; I told him yes; the constructing engineer had represented that certain men were wanted, and they were accordingly taken on; their services were apparently required. On this being told him, he seemed to be very much disconcerted and disappointed, and made some remarks which produced a reply from me that he (Taylor) should attend to his duties in the Congress of the United States, and I would attend to mine as commandant of the yard; that was the worst thing that was said; he said something about laying it before the department; but he did not show me any list of men, and did not name any men or any class of men whom he wanted to have put on; that was about all the conversation; heleft very soon after, and appeared to be agitated a little. Question. Had he previously applied to you for the appointment of men in the yard? Answer. Not for any unusual quantity of men. There were sometimes applications made for one or two; I never particularly noticed anything extraordinary. He may have done so, but I have no particular recollection about it. Question. How frequently did he apply for the appointment of men under the master workmen? Answer. I have not charged my mind with it sufficiently to say how many times, but I think very seldom. He appeared to be a good deal in the yard; but the appointments did not come directly from me. The general plan, as I understand it, was, that these applications went through the master workmen, and then around until they eventually came to the commandant, with the approval of some of the departments, the constructor, or some of them in the yard; the commandant of the yard was guided by that, and usually approved, but it does not lie with him. Question. After' Mr. Taylor went away in the manner you have described, did you hear anything more from him? Answer. No, sir; I heard nothing more from him. Question. How soon after that did you receive this order of suspension? Answer. It was three or four days; but I learned that ihe had nothing at all to do with it; he disclaimed anything of the kind. Question. From whom did you learn that? Answer. I cannot say; I only understood so. Question. From whom did you understand it? Answer. I am not confident now; it was a matter of very little importance to me at the time whether he had or had not; but I am BROOKLYN NAVY YARD. 147 under t~he impression that it did not result from his application at all. Question. Do you know whether he did apply for your removal? Answer. No, sir; I do not. Question. What did he say when he left you? Answer. He said something about making a statement to the department. I told him that was very well if he chose to do it. I do not think that he alluded to my removal from command, but to getting these men in. He may have had such an allusion, but I do not know whether he had or not. Question. I will ask you whether you have ever refused to appoint the men when a list was sent up to you by the master workmen, and approved by the constructing engineer? Answer. I have not in such cases. I have in individual cases when men have been applying to be put on; there were applications of that kind frequently. Question. Without applications from the master workmen, have you ever felt it to be your duty or within your power to appoint them? Answer. No, sir; I have -not. I considered that a matter perfectly independent of the commandant of the yard; that has been the practice. Question. Had you any correspondence with regard to the subject? Answer. I had with Mr. Graham, the constructing engineer; and I submit to the committee that ir. Graham be telegraphed to to have that correspondence sent here. Question. What is the purport of it? Answer. It is in relation to the employment of men. There were some cases where there was difficulty about it, and there was some correspondence on the subject. Question. Wko commenced that correspondence? Answer. It commenced, I think, with Mr. Graham himself. Those were matters that occurred occasionally, but they did not make much impression on my mind. Question. Can you give the substance of that correspondence? Answer. I have not charged my mind with it; I should prefer to have it sent on. Question. In its absence, please give the purport of it? Answer. It was in relation to the right of appointments in the yard. There was a little difficulty about the right of making appointments, or something of that kind; but there was nothing that I have thought it necessary to keep any particular record of. It is on the files of the navy yard. By Mr. Bocock: Question. Have you any knowledge that the conversation between you and Mr. Taylor ever reached the department at Washington? Answer. No, sir; I never heard of it afterwards. I had no correspondence with him. There was an error made in a newspaper ca~led "The Times" which I thought did me injustice, and I wrote a note to the editor of the "Journal of Commerce," and amended that. Question. To what did you understand Mr. Taylor's allusion to the 148 BROOKLYN NAVY YARD, department to refer? Was there nothing connected with that remark of Mr. Taylor to show what he did mean? Answer. It was doubtful to me what he did refer to; I could not tell. I thought it a very singular remark, because it was an interference with the department, and it appeared to be uncalled for. I could not divine what he meant, nor do I know now what he did mean. Question. From what you know, have you any reason to attribute your discharge from the yard to Mr. Taylor's interference? Answer. No, sir; there was nothing to lead me to suppose so. It may not be out of place to say, for I suppose it has been told here before, that the master workmen of the yard have control of this matter far above the commandant of the yard, and thus little difficulties may occur. L. KEARNY. No. 39.-JOHN COCHRANE, HOUSE OF REPRESENTATIVES. FEBRUARY 4, 1859. JOHN COCHRANE was sworn and examined. By the Chairman: Question. What has been the action of yourself and other members of Congress in regard to appointments in the Brooklyn navy yard? Answer. It has been generally understood by all the democratic members from the city and county of New York and the adjacent districts that the patronage of the Brooklyn navy yard was to be equally and proportionably distributed among them. This understanding was not only by them, but was known to the authorities in Washington. Question. Before you proceed, I will ask you whether any arrangement with regard to this division of that patronage was made here in Washington from an interview with the Secretary? Answer. I cannot say it was an arrangement. I would not like to impose upon it that designation. I should say that the state of facts was more nearly represented by the word understanding. This understanding was notorious; so generally and well known, not only by the members, but by their constituents who sought for office, that it imposed upon each one of the members, to my personal knowledge, a corresponding obligation of effort to obtain patronage for his constituents. Under such an obligation, so imposed, I have from time to time endeavored to procure office for my constituents and employment in the navy yard. Under that understanding by my constituents, have I been for the last year besieged and beset by hundreds of claimants, at my house and in my office, until now, having been driven from my office, I am in doubt whether I shall return to New York. I wish to be understood that in all applications made I have made them with the sincere desire to procure employment for those in whose behalf I apply; but never have I applied for a person whom I deemed unworthy. In every instance of application made I have informed those to whom the application was made that if the person applying and successful in procuring work was idle, or in any way unworthy, he should at once be discharged. I have from time to time written very sharp letters-I may call' them threatening letters-to different masters in the yard, complaining that they did not comply with what BROOKLYN NAVY YARD. 149 they understood and ought to know was the rule to be observed among members of Congress regarding their constituencies; and stating that if they would not comply with that rule I should complain of them to the department here in Washington. I think that, as compendiously as possible, represents a full view of New York politics as regards the navy yard and the position which I, as a delegate from the city of New York, bear towards it. By Mr. Ritchie: Question. Do you remember a particular instance in which you wrote one of the letters you refer to? Answer. Yes, sir. It occurs to my mind now, not from present reflection but by reason cf having been reminded of it by Mr. Merrifield, who, a day or two since, stated to me that lie had mentioned, in the committee, the fact that I had written a menacing letter to him. My answer to him was that I remembered having written to him that letter; that I afterwards met him, and he explained the reason for not complying with my wishes, which reason was satisfactory to me. However, I wish to say, in this connexion, that I stated distinctly to Mr. Merrifield, upon all occasions, that he should not for one moment retain a person recommended by me, or give him employment, against whom there was evidence of unworthiness in any respect. By Mr. Bocock: Question. Mr. Merrifield stated that with regard to two men he found them incompetent and discharged them; but that you wrote that if he did not put them back you would complain against him. What statement do you wish to make with regard to that? Answer. I recollect no occasion on which he discharged any man whom I recommended to him for incompetency. I am quite certain that if ever the cause of the discharge of any of my friends was incompetency, had I have known it, I should have assented to it at once. Question. Why, then, did you take it amiss that he discharged them? Answer. That I was entitled to those men, and that he was wrongfully treating me as one of the democratic delegates. Question. Has the understanding of the equal distribution of the number of men been effectuated? Was it the fact that the number of men was taken equally from all the different districts? Answer. I will state that my impression was, before coming here and until within about two weeks, that it was most unequally distributed, and especially so with reference to myself. I supposed that Mr. Taylor, of Brooklyn, had a largely disproportionate number. But within two weeks I have seen a return at the Navy Department, by which it appears that Mr. Taylor has a large preponderance; that Mr. M3aclay has the number next to Mr. Taylor, and that the number from my own district ranks next to Mr. Maclay's. Therefore I am now of the impression that while the patronage is disproportionately dispensed, yet the disproportion was not so great as I had supposed. Question. Was there any reason connected with the location of Mr. Taylor's district why he should have more than an equal share? Answer. I think there is a reason why he should have more than 150 BROOKLYN NAVY YARD, other democratic members, and that is his locality. But I have never supposed -that a reason for so great a disproportion in his favor as I have supposed him to possess. I may say that I have informally expressed to the Secretary of the Navy the opinion that he should have a larger share than the ot;hers. Question. Do you remember writing a letter to Mr. Cohane? Anjswer. Yes, sir; I have a general recollection of having written a sharp letter to Mr. Cohane, under some degree of excitement occasioned by the representation that Mr. Cohane would not employ in his department a single person from my district. Question. Do you know John Ross, of Brooklyn, now master carpenter in the navy yard? Answer. Yes, sir. Question. Do you know whether he holds any office in the city of Brooklyn? Answer. No, sir; I do not. Question. Do you know whether he is assessor? Answer. I know him only as I have seen him in the capacity of master carpenter in the navy yard two or three times. Question. Was there any effort upon your part, or upon the part of other members, so far as you know, to have a large number of men appointed just before the last State election? Answer. My answer is, no, sir; but I should say, in connexion with that answer, that as the election approached applications increased; and it was my case, and I presume it was the case with other members, that there was a corresponding increase of applications upon our part for positions there, but upon my part, at least, without any urgency or request that the number of persons in the navy yard should be increased because of our wants. My applications to the navy yard for employment for men have always been in reference to the number of men wanted by the department here. Question. Do you visit the navy yard often? Answer. Never, except when driven there by applications from my constituents. Question. Are you able to suggest anything about the management of the yard; any abuses to be reformed, or anything of that kind? Answer. No, sir; I do not know that I can. I should say that I have heard reports, and rumors, and charges; but as to the facts constituting the rumor, or report, or charge, I am entirely ignorant. Question. I understand you to say that you have never asked that a man should be put in or retained when you have known him to be incompetent? Answer. I have not. On the contrary, I repeat, I have always told every master or person to whom an application of mine might be sent, that I wished no unworthy or incompetent man appointed; and that upon the discovery of unworthiness, in any particular, he should be at once discharged. By Mr. Groesbeck: Question. What has been the practice in that yard heretofore in reference to recommendations of members of Congress? Has there been any such practice; and if so, how long? BROOKLYN NAVY YARD. 151 Answer. Previous to this Congress, I think there was but one democratic representative from the city of New York. Under the democratic administration of General Pierce, my impression is that nearly all the patronage of the yard that was bestowed in the city of New York came through the member, John Kelly. This I speak from general observation and report, never having had my attention particularly directed towards it at that time. Question. How was it during Mr. Fillmore's administration? Answer. I am entirely ignorant of that. I paid no attention to it then. Question. In regard to these recommendations, did you, yourself, when you recommended a person to a particular department, make any inquiry as to his fitness? Answer. In all cases. There may have been exceptional cases, although I do not now recollect them; but if so, they were very few. In all cases, therefore, with that condition, the persons applying to me have come recommended by the principal men in my district; and I have uniformly and in every instance given my recommendation and request under the impression that the appointee was a proper man. Question. Were they appointed politically, or as mechanics? Answer. Where they were mechanics, they were recommended to the proper department, but also as democrats. For instance, if a republican came to me to be recommended I could not recommend him, and would not recommend him as a democrat, and would, all things else equal, prefer a democrat. I should say that in exceptional cases I have recommended without reference to politics where there was want and destitution. Question. Is there not a great surplus of mechanics in each of the New York districts? Answer. It is true, more or less of them all. My own district, I think, has a greater su-rplus of mechanics than any other district in the city. Question. Is the navy yard able to get good mechanics in each and all districts? Answer. I think it has for the last year. Perhaps I cannot answer that better than by a general statement that in good and prosperous times, I am told, and my observation confirms it, that there is very little application among mechanics for work in the navy yard, the demand in the city being quite ample to furnish them support and employment; but during such times as we have had for the last year, so many have been out of employment that the pressure for employment by regular workmen all over the city has been very great. Question. As to the class of mechanics who apply, have good mechanics made these applications? Answer. Generally they have not been the very best of our mechanics, for the reason that they were such as were destitute of work during the last year on account of the hard times, which allowed continued work only to the best. I should answer, also, in this connexion, that others besides mechanics have applied. Laborers also have applied. 152 BROOKLYN NAVYYARD. Question. Was it the practice of all the members from New York to make these recommendations, and did they all claim their share of patronage? Answer. Yes, sir; and at various times all, or nearly all, made it a point of political grief that they were not gratified. By Mr. Bocock: Question. Does the same rule apply to the executive offices at Washington? Do you all claim your share of patronage? Answer. Oh, no. Question. You content yourselves with your home business? Answer. Yes, sir. Question. Has Mr. Alexander Ward any office now? Answer. Yes, sir; he had, and I think he has now a place under the municipal government of the city of New York. Question. Did he resign his position in the navy yard to take that? Answer. So I understood. Will you allow me to say that this obligation consequent upon the distribution of patronage among members from New York is very irksome, and, if possible, it would be quite gratifying to me to be relieved from it entirely. I do not think a representative in Congress from the city of New York should have cast upon him the obligation of being held responsible to every man in the district who desires office and be borne down under that obligation. By Mr. Ritchie: Question. Why do you consider it an obligation? Answer. Because of the understanding of which I have spoken; the understanding by the constituency, by members of Congress, and by all parties else connected with the patronage. Question. What do you consider the practical tendency of such a custom as that upon the purity of elections? Answer. Very deleterious. Question. Is it deleterious in its tendency to the Congressman himself, by hampering him in the discharge of his duties? Answer. Let me answer in this way: To the extent that a person desiring political gain or political strength can be influenced by considerations conducing to his desires, it must be injurious. Question. What do you consider its tendency in its effect upon the people themselves-the mechanics who seek for employment? Answer. It is injurious, in that it teaches laborers and mechanics to look to political influence for sustenance and support. Question. [Has it a tendency to lead them to the commission of frauds and violence at elections, in order to carry the candidates to whom they look for future patronage? Answer. Inasmuch as the party benefited would by the benefit be wedded to the interests, actively, of his benefactor, such patronage would, to that extent, lead to disturbances that might be used by the benefactor for his political advancement. By Mr. Bocock: Question. Is this practice, of making the patronage of the navy yard political spoils to be divided, peculiar to that particular department, or does it prevail generally? BROOKLYN NAVY YARD. 153 Answer. It prevails in every department. Question. When the republican party had the State offices did they use the patronage in the same way? Answer. In the same way in which the democratic party does now. Question. Is there any difference in the extent to which they use the patronage? Answer. Under similar circumstances, and with equal facilities, they use it in the same manner. JOHN COCHRANE. No. 41.-JOHN B. HASKIN, HOUSE OF REPRESENTATIVES. FEBRUARY 4, 1859. JOHN B. HASKIN called and examined. By the Chairman: Question. Are you a member of Congress from the State of New York? Answer. Yes, sir. Question. From what district? Answer. From the ninth congressional district, composed of the counties of Westchester, Rockland, and Putnam, adjoining the city of New York. Question. When did your official term commence? Answer. On the 4th of March, 1857. Question. At any time after that term commenced did you and the other members of Congress from New York city and its immediate neighborhood, together with the Secretary of the Navy, make any arrangement in regard to the patronage of the navy yard in Brooklyn? Answer. At an interview with the Secretary of the Navy, at which, I think, some six or seven members of Congress from New York were present, an understanding was had that the Secretary of the Navy would, if he could do so consistently with a strict performance of his duty, appoint a master workman in the Brooklyn navy yard for each one of those gentlemen present. That was about the substance of the agreement. Question. What was the occasion of that interview? How came you to be there together? Answer. We were actuated by a desire to look out for the interests of our constituents and to get them appointments. Question. Was this during the session of Congress, or just after the incoming of the new administration? Answer. I think it was just after the inauguration of President Buchanan. Question. It was not then during the session? Answer. I think not; I am confident it was not. Question. Was any complaint made by any of the gentlemen present, or had there been any complaint in regard to the division of the patronage in New York? Answer. Yes, sir; there had been complaints that there were one or two members of Congress from New York who absorbed nearly all the patronage connected with the navy yard. 154 BROOKLYN NAVY YARD. Question. What was the purpose of these gentlemen in this interview with the Secretary of the Navy? Answer. They were endeavoring to equalize this patronage as well as they could among the people belonging to the democratic church. Question. Do you remember the names of the persons present? Answer. I think that Mr. Sickles, Mr. Maclay, Mr. Taylor, Mr. Wood, Mr. Searing, Mr. Clark, Mr. Cochrane sent. My impression is that it was only the city members, myself, and Mr. Searing, who were present. I do not now remember that they were all present at any one time; but all these gentlemen whom I have named did go there in connexion with this subject at different times. Question. An understanding at last was effected that you were to each hlave the appointment of a master workman. Answer. I so understood it. Question. Was one appointed, in pursuance of this understanding, upon your recommendation? Answer. Yes, sir. Question. Who was he? Answer. Mr. Lawrence Cohane, who resided in Mr. Maclay's district at the time he was appointed. Question, Was it understood that he was to be your representative in the navy yard? Answer. He was to satisfy my wants. Question. What position was assigned him? Answer. That of master carpenter. Question. How long was he retained in that position? Answer. He was retained there until a short time after I had taken ground in the House of Representatives against the Kansas policy of the President. Question. How soon after that was he removed? Answer. I do not recollect the precise time. Question. Had you any notice or intimation of his intended removal? Answer. I had an intimation that Mr. Taylor, of Brooklyn, had made an application, or was about to make application to get Cohane removed, and have some friend of his appointed in his place. This I understood grew out of my course in relation to the Kansas policy of the President. I had an interview with the Secretary of the Navy in relation to it, Question. State what took place at that interview. Answer. I think that Mr. Kelly, of the New York delegation, was with me. I called upon the Secretary of the Navy and told him what I had learned in relation to this application of Mr. Taylor for his friend. I stated that I had trusted that if this man Cohane performed his duties well and. faithfully he would not be removed in consequence of my opposition to the administration in relation to Kansas; that I did not know whether he was Lecompton or anti-Lecompton, but I believed lie would-support loyally an administration which kept him in place, and I trusted he would not be disturbed unless charges were preferred for neglect of duty or incompetency. The Secretary of the Navy said there had been some application to have him removed. But he volunteered to promise to me that he would not remove him, as he BROOKLYN NAVY YARD. 155 had given entire satisfaction in the discharge of his duties, unless charges were preferred against him, and then he should have an opportunity (this was upon my suggestion) of having a hearing; and he, the Secretary, would also notify me if any such charges were preferred, so that fair play would be had in the matter. In a very short time after this interview Mr. Cohane was removed. No charges were preferred against him to my knowledge; none were ever preferred to his knowledge. I never received any intimation from the department whiclh induced me to suppose any charges had been preferred against him. I had some 5 or 6, 6, I should think, journeymen house carpenters under this man Cohane from my district. The other members of Congress had their share of the men under him. I did not have the exclusive control of his patronage, nor did I desire it. These six journeymen carpenters were all dismissed in a very short time after the dismissal of Cohane. Question. Was the understanding to which you have testified continued as to yourself after your course upon the Lecompton question? Was any further share of the patronage of that yard given to you? Answer. No, sir; on the contrary, every man who had been appointed there on my recommendation, I think every one of them, was dismissed and discharged from the yard. There may have been an exception or two, but I do not think of any now. Question. Is there any particular fact pertinent to this inquiry that you know of h Answer. I can say this, that I was in the habit of dropping into the yard occasionally. From what I saw there I could give you an opinion in relation to the management of the yard. I am satisfied that, owing to this rule being adopted of allowing members of Congress to gratify their constituents by having men appointed in the yard, there was an excess of men appointed in the various branches and occupations there. I am satisfied of that from my personal knowledge of the masters there and the number of men they had under them. I believe that the men employed in the navy yard should be employed by the commandant of the yard and the naval constructor, and that members of Congress and others should have nothing to do with the responsibilities attached to their appointment. I think that great abuses have grown out of this system of recognizing the claims of us members of Congress, because each of us have our men to apply to us for places-blacksmiths, carpenters, painters, &c.-to whom we are under, perhaps, political obligation. We sit down and write letters urging the appointment of these men, and the masters having the power make the appointments for the purpose of propitiating our favor; and in very many instances, to my knowledge, they have, in doing so, gone beyond the number actually required to perform the service of the yard. Question. What would be the inevitable effect of this system, if continued, upon the men employed in the navy yard immediately preceding the elections in that neighborhood? Answer. The men who are employed there, from my observation of them, I should think did not labor more than one-half as much as 156 BLOOKLYN NAVY YARD. they would if they were employed outside of the yard, for they form political gangs and corps for political purposes. Question. Would this system necessarily tend to increase the number of men in the yard at the times immediately preceding elections? Answer. I should say that it would. By Mr. Bocock: Question. How long has this practice prevailed of making appointments in the Brooklyn navy yard from political considerations? Answer. In the manner which I have stated, for each of us to have a master, not, I think, until the present Secretary of the Navy came into office. Previous to that time I think that one or two members of Congress had their claims recognized-the member from Mr. Taylor's district, and the member from Mr. Maclay's district. Question. How long, so far as you know, have these appointments been made upon the recommendations of members of Congress? Answer. I can only say that it has existed through my term of congressional existence, though I never had over eight or ten appointments altogether in the yard, notwithstanding that there was some fifty or sixty men employed under this master whose appointment was given to me. Question. Was it understood that when each one of you got a master workman in the yard all the appointments under him were to come from your respective districts? Answer. No, sir; but it was a sort of understanding that the lion's share should be given to the member of Congress upon whose recommendation the master was appointed. Question. Are you distinct in your recollection that Mr. Clark entered into this arrangement with the rest of you? Answer. I am not distinct in that, although I am quite confident that he acquiesced and had an appointment made in pursuance of that understanding; I think he had a man by the name of Alexander Ward appointed. Question. Did you take pains to satisfy yourself of the competency of the man you recommended? Answer. In pursuance of this arrangement I thought I was entitled to this appointment, and I selected the very best man I knew, one who had performed properly some difficult work; who had built four houses for me, and. who I felt satisfied was capable of building such a building as the city hall of New York, if necessary. It was entirely with a view to his fitness that I named him. He did not live in my district at the time, but in Mr. Maclay's district. I had known him for some time, and I esteemed him as a fit man for the place. Question. And those other men appointed under him, and afterwards turned out; did you satisfy yourself that they were good workmen? Answer. I knew them, in every case, to be so. Question. After this conversation between you and the Secretary upon the subject of turning Mr. Cohane out, in which he promised not to turn him out without giving you notice of it, did your relations with him and the other members of the administration change any between that time and the time of the turning out of Cohane? BROOKLYN NAVY YARD. 157 Answer. Not at all, except that I stated to my colleague, Mr. Clark, and to others, that I considered that Mr. Toucey was not a gentleman or a man of truth. Question. Was this previously or subsequently to the turning out Cohane? Answer. Subsequently. Question. Had there been anything between the conversation with the Secretary and this turning out of Cohane? Answer. I had never seen him between that time and the turning out. When I called upon him it was because I understood he was going to turn out this man Cohane, whom I knew had given more satisfaction than any other master in the yard, and had this statement from the men in charge.there who were not biased by political opinion. Question As the contest grew warmer upon the Lecompton question did the relations between yourself and the administration become more cool? Answer. During that time I never asked any favors of any member of the administration. By Mr. Groesbeck: Question. There was a witness here by the name of Lewis W. Berry, who said that you interfered with him, wrote him a threatening letter about an appointment, which letter he handed over to Hon. G-eorge Taylor, asking him what he thought of it; do you know anything about that? Answer. I do not recollect of having ever written any threatening letter to this man Berry. My impression is that I wrote him a letter on one occasion asking the appointment of some man by him as a journeyman painter, and urging upon him, perhaps in pretty strong language, that I was entitled to be recognized as a member of Congress in making this appointment. In other respects I did not write a threatening letter. Question. Did you address him a letter which, with propriety, could be regarded as interfering with him in the proper discharge of his duties? Answer. No, sir; not at all. I had some statement made to me in relation to the way in which Berry conducted his business there, which induced me to think rather unfavorably of him, and I do not know as I wrote an affectionate letter to him. But it was by no means a threatening letter. It was a letter rather claiming as a right to have a man appointed upon my recommendation. I recollect calling upon Berry at one time with a gentleman, in the paint business, who wanted to estimate upon some advertised proposals for such materials; and having had great experience in testing the quality of paints, this gentleman wished to examine the quality of the paints in Berry's department, before he made up his bids. But on that occasion I did not see Mr. Berry. By Mr. Bocock: Question. Was the arrangement, about the appointments in the Brooklyn navy yard, suggested by members of Congress to the Secretary of the Navy, or by the Secretary to the members? 158 BROOKLYN NAVY YARD. Answer. It occurred in a general conversation, but I do not recollect whither it was first suggested by one of the members, or by the Secretary. By Mr. Groesbeck: Question. Did you call there to obtain such an understanding? Answer. We called there, not exactly to obtain such an understanding, but to protest against allowing one or two members to absorb all of this patronage. JOHN B. HASKIN. No. 45.-ANSON HERRICK, NEW YORK. FEBRUARY 7, 1859. ANSON HERRICK called and examined. By the Chairman: Question. What is your official position? Answer. I am naval storekeeper at the Brooklyn navy yard. Question. What was your profession or business before that? Answer. I am the editor and publisher of a newspaper, the New York Atlas. Question. Had you any experience as storekeeper prior to your appointment? Answer. When I was a boy I used to tend in a grocery store; that is very much like the duties of a naval storekeeper. A naval storekeeper has to do with everything that is required in fitting out a vessel, from a paper of pins to a big anchor. Everything that is used in the sailing and building ofa ship comes within the province of the storekeeper. Question. What is the salary of the naval storekeeper? Answer. $1,700. Question. What are his duties? State briefly and generally. Answer. He is supposed to be, and is, custodian of the public property in the navy yard belonging to the two bureaus of Yards and Docks and Construction. Question. Has he anything to do with making purchases for the government, and fixing the prices of articles? Answer. Not the least. Question. By whom are purchases made for the government? Answer. When an article is wanted of any kind, whether in fitting out a ship at the navy yard, or in the construction or repairs of a ship, or for improvements in the yard, or for any purpose whatever, a requisition is made upon the storekeeper for that article, whatever it may be-aside from provisions and clothing, which belongs to another bureau-a requisition is made upon me to supply this article. When a list of such articles comes in, I go over it, comparing it with our books; the first article on the list, perhaps, is in the store, and that we mark as "store." Another article is contracted for, and we mark that "contractor." Another article is neither in the store nor is there any contract for it, and then we mark that "open purchase." We supply what we have, and then we make a requisition upon the navy agent for what we have not in the store. If it is contracted for we name it to the navy agent; we say, for instance, so much timber BROOKLYN NAVY YARD. 159 of articular dimensions-such an amount contracted for, and so much not on contract. It is all purchased, and then it is examined by the examining officer; and all the duty of the storekeeper is this. After it is examined and passed the matter comes up to me, and I sign a receipt that I have received such an article on account of improvements, on account of construction, or whatever the appropriation may be to which it belongs. We keep all these appropriations under separate heads. Question. When did your appointment to office commence? Answer. I was appointed by Mr. Toucey; the appointment was made in March, 1857, but I did not take the office until the 1st of May. Question. Please state the amount of stores on hand at the time you assumed the office. Answer. That I cannot do; I have not the books here. Question. Did you take an inventory of those stores? Answer. I demanded an inventory before I gave a receipt. There had been no inventory taken. I gave bonds in $40,000, and I thought I ought to be informed what was on hand; so I demanded an inventory. They said it could not be made out; in fact, they said an inventory could not be taken for fifty thousand dollars. I will explain: For instance, the timber could not be taken out of the sheds, and it was impossible to take an inventory of that. I insisted that all the hardware, all the iron, and all the copper should be taken account of. A captain, purser, clerk, &c., came in there to take an inventory; they worked at it about a year, but I do not know that it has ever been completed. Question. Don't you know that it has not been completed? Answer. I believe they gave it up as impracticable; however, I am not certain. I have never been troubled about it; I gave bonds for what was there. The storekeeper's bonds are out of all proportion to his salary. Question. You gave bonds in $40,000? Answer. Yes, sir. Question. I will ask you to look at the table now shown you, [see appendix to this deposition,] and state from that what was the amount of stores on hand in the Brooklyn navy yard on the 1st of July, 1857. Answer. It appears from this abstract that there was $1,315,019 03. Question. What was the amount received during the fiscal year? Answer. From the tabular statement before me it appears to be $556,712 03. I don't know whether this is correctly made out or not. The books will show. I presume this is correctly copied, and exhibits everything that purports to be on hand, whether it is there or not. [The tabular statement, showing the stores on hand in the different navy yards, is exhibited and made part of this deposition.] Question. How do you know, and how does the government know' that there was on hand on the 1st of July, 1857, the amount named in this statement? Answer. They can only know it from the storekeeper's books; they record everything that comes into the yard and everything that goes out, and we strike a balance and return the account every month, 160 BROOKLYN NAVY YARD. That is a great deal of labor, but monthly returns are required of all that comes into the yard, and of all that goes out, and of all that remains of every article. Question. In other words, your books show the amount that ought to be there, but having made no inventor, cannot state what amount is there? Answer. A large amount is in timber. There has been no inventory taken of that, and there could not be one taken without the expenditure of an immense amount of money. To turn out all the timber that has been there for years, and to have it all surveyed and put into the sheds again, would be a great deal of labor; that is the reason they have waived that. The commission that was sent there to take an inventory I consider a failure. The members of that commission knew more of sea service than store keeping. In some things they got imperfect accounts. I saw that there was a large excess in some things, and a deficiency in others. Question. I will ask whether in your judgment the amount of stores on hand would be equal to the amount stated in this tabular statement? Answer. I should think, aside from the timber, there would be a large excess. Question. Excess of what? Answer. Excess over the statement representedinthebooks There are many facts coming to my knowledgewhich strengthenthisopinion. There never was a survey taken butwhattherewasanexcess of property; there must be from the manner in which my predecessors kept the books; I do not keep them in the same manner with my predecessors. An excess arises in this way: a vessel is fitted out for a long voyage, with all the stores, copper, iron, &c., everything she is supposed to want for the cruise; this all goes on the storekeeper's books as expended; but if the ship comes back with part of those stores remaining on board, it has been the habit, so I am informed, not to re-enter what she lands. It has all been turned into the common stock, and in that way there has been a surplus. Question. The storekeeper did not charge himself with it? Answer. My predecessors do not appear to have done it; there is a large excess of many things which must have accumulated in this way. He would mark the things expended, and when the ship returned with part of these things unexpended it would cause an inci ease. I should think, aside from timber, almost everything that I know anything about has exceeded; there was a large excess of copper. Question. In other words the storekeeper took credit when he furnished them to the ship, but did not charge himself when the ships came back? Answer. Yes, sir. My form is that everything as landed goes upon the books now. My returns show, in fitting out a ship, where everything comes from, and these returns will show that a large expenditure is from surplus. Mr. Lenthall once asked me what I meant by surplus? When these requisitions come to me if the article is in store we know it, even if there is nothing of the kind on the books. Question. I will ask you this general question: what abuse, if any, BROOKLYN NAVY YARD. 161 existed in the management of the naval stores at Brooklyn, at the time you went into office, or what abuses existed in the mode of keeping the accounts of the storekeeper? Answer. I know of no other abuse except this, the neglect to enter stores that were landed from return ships. I think that was an abuse, for it made an accumulation so that the storekeeper's books did not represent the actual amount of property. That is all the abuse I know of. Question. I wish to ask some questions which you may think rather personal to yourself, in relation to some things that other witnesses have testified who have been examined. How much of your time do you spend in the discharge of your duties in the naval storehouse at Brooklyn? Answer. I spend all that is necessary to discharge the duties. Question. State how much and what duties you perform? Answer. The duty I perform is to see that the accounts are kept correctly, to sign all requisitions and all receipts for goods received, and to make out monthly statements of the accounts. I could give you the whole details of the office, and you would see immediately that all there is to do could not occupy a man's time a great deal, only to oversee and to sign his name to receipts and returns prepared by the clerks. I have given bonds, however, and am responsible for all the property that goes into the yard; and of everything that goes in a record is kept by the clerks. The clerical force is too small; there is not sufficient to do the work promptly. Question. State what the clerical force is? Answer. The returns are behind and cannot be written up for several months. I had orders last week to make out forthwith the whole expense of the Paraguay expedition, in detail. The amount of work is immense for the clerks; there have been a good many ships there, and the committee can well imagine the labor of making out the accounts of a whole fleet fitted out with small stores. Question. How much clerical force have you? Answer. We are allowed two clerks and two writers, but the pay is most miserable for the writers. Question. How many other employes have you, workmen and the like? Answer. I believe there are seventeen laboring men. There is the first clerk at a salary of twelve hundred dollars; there is the second clerk at a salary of nine hundred, for which, if it was my own business, I would not pay him less than twelve hundred. There are two writers whose salary is two dollars a day, and I should be ashamed to give them less than three to work in my own employment. I have tried to get their pay raised, for I think it is miserable pay for employment that requires them to be accomplished clerks. Then I have a foreman, who has the general superintendence, who signs receipts for all the goods delivered. He is foreman of the receiving store. Everything has to pass through his hands; it is necessary that he should be an honest man, and if he is, the storekeeper is safe. Question. The foreman signs your name to the receipts? 11 D 162 BROOKLYN NAVY YARD. Answer. He signs for me; he is there at sunrise every morning, and stays there until the sun sets. Question. How many men are under him? Answer. He has the laborers necessary to work in the store. Question. How many? Answer. I think there are seventeen laboring men. I did not know how I was to be questioned, or I would have brought down all these facts. Question. Suppose the foreman should sign receipts for goods not delivered, and should collude with the contractors, have you any check? Answer. Then he would involve the storekeeper and his bondsmen. Question. Is there any other check? Answer. There is an examining officer. All goods are examined by one of the naval men, besides the civil department. Question. Suppose the foreman should sign a paper and receipt for goods not delivered, is there any other check except the honesty of the foreman and the responsibility of the storekeeper? Answer. There are checks all the way through. They cannot be delivered only upon requisition. Question. But suppose they are not delivered? Answer. There is an inspecting officer, who is a lieutenant of the yard, and he has to see everything, and inspects it. My foreman does not pass the goods; he receives them. If the foreman, by collusion, should sign a receipt and put it on the books, when no goods were delivered, he could not deceive the examining officer, because the examining officer is sent to examine every article that comes there. That is the business of the lieutenants in the yard, and the captains in the yard, and the masters in the yard; all those men are examining officers, and the article must be there or they could not certify to it, and their certificate is on every bill: II have examined the above specified article, and find it to conform to the contract," or I find that it has been purchased at market prices." Question. Have you the form of this certificate? Answer. I have not one; I can get one from the department. Question. I will ask you to get duplicates and attach them to your deposition at the time you sign it. Answer. Yes sir. [See appendix to this deposition.] Question. I will now repeat the question, how many hours a day have you been in the habit of devoting to this business? Answer. I could not tell; sometimes more and sometimes less; sometimes no hours, because there is no business doing. I sign all the bills myself, and all the requisitions myself. Question. I understood you to say that the foreman signed them. Answer. No, sir, he does not sign bills or requisitions; he signs,receipts to the contractor. If a carman comes with a load of goods -the foreman gives him a receipt for them and signs that; and then the?bill, if paid, goes through this other process. I do not spend but very little time in the navy yard, for this reason: these papers and documents are brought to me by my chief clerk, who is my son, whom I see every day, or by the messenger-one of the laborers being employed BROOKLYN NAVY YARD. 163 as a messenger. I appointed my own son first clerk because I could have confidence in him. All the papers that are necessary for me to sign, when I am not at the yard, are brought to me, and an account of all the business that is done in the yard is brought to my house and reported to me. Question. Brought to your house by the chief clerk? Answer. Yes, sir; and therefore I can be sure that all the business is correctly and properly done. I think I am as much in the storekeeper's office proper as any storekeeper I have known; and I have known several for at least fifteen or twenty years. There was Captain Paul R. George, Colonel Craven, Mr. Pentz, Colonel Fuller, and Colonel Delavan, who all conducted the business just as I do; at least, I suppose they did. Colonel Fuller told me that he used to go there once or twice a week. It is not necessary to go every day. I consider the storekeeper's place as one of responsibility; the storekeeper is not expected to do manual labor, or the work of a clerk. Question. Has not this office been given for many years, under all administrations, to editors of papers, or some political person? Answer. All offices that I know of are given to some political person; they are all politicians, either on one side or the other. Colonel Fuller was editor of the Mirror; Colonel Delavan was not, I believe, in any business when he was appointed. He was a politician, however. By Mr. Bocock: Question. Who appointed Colonel Fuller? Answer. General Taylor or Mr. Fillmore; I am not certain which. By the Chairman: Question. Is it expected, in the manner in which that office is filled, that the storekeeper should attend personally at his office to the discharge of his official business? Answer. I suppose it is. Question. Has it been done? Answer. Not every day. I attend personally there when necessary; I was there twice last week; probably I should have been there twice this week; I should have gone again on Saturday, if I had not been subpoenaed here. Question. Do you always go twice a week? Answer. Not always; sometimes but once a week; sometimes not so often. I go all that seems to be necessary in the discharge of what I consider my duty. It seems to me that my responsibilities require me simply to know that the business is correctly done, and that the accounts are kept properly; and if I am satisfied of that, it is sufficient, in my judgment. Question. Have you ever received from a contractor, or any other person connected with the navy yard, any commission or per centage on bills? Answer. Never; no one ever offered me any, and I do not know why they should. I have only to sign that I have received the goods; that is a fact that I could not dodge if I desired to. I should think any contractor would be very foolish, when he had delivered the goods, to pay a man a per centage to say that he had received them. 164 BROOKLYN NAVY YARD. All that I sign is that I have received such an article, have never received a commission, and no contractor ever mentioned such a subject to me, nor can I see why he should. Question. Do you know of the purchase of any piles which were delivered in the yard? Answer. I suppose you allude to some piles purchased by the civil engineer, Murphey. They were purchased before I was storekeeper. All I know about it is that I was required to sign a receipt that I had received them, and they were there. The receipt had never been signed; for a receipt by a foreman is no receipt in full that binds the government at'all. My receipt is put to the bill when it has passed the examining officer and has been approved. I sign that I have received the goods. I know that there were some piles put in by Mr. John Midmer, and it excited my curiosity, because I knew him, and I thought he was a queer man to buy timber of. I made some inquiry, although it was none of my business about prices, for I am merely a receiving officer and the custodian and keeper of the public property, to see that it does not go out improperly. Question. I will ask you whether the prices of those piles were fair and just, in your judgment? Answer. I am not a judge of timber. Question. From the information you could get, was it a fair and just price? Answer. I got an experienced timber man to go and look at this raft of timber only to satisfy myself. I only had to sign that I had received these five hundred piles. I did find out where the man bought the piles, but I do not know that it would be proper to have that published. Question. I wish to have a history of this matter. Answer. This matter has nothing to do with my duties whatever. Question. It is within your knowledge as a witness; that is the reason the question is asked. Answer. The bill came to me, and the only thing that excited my curiosity was that a custom-house officer, who was also a small politician, should be buying timber. I met one of the most extensive timber dealers riding about in his wagon, and I asked him to go over and look at that raft of timber, and see what it was worth. I do not remember what it was worth now, but I made a calculation that the timber was put in for a good deal more than it was worth at the time. This was altogether outside of my duty, however. Question. Did you make any complaint, or mention this matter to any one? Answer. I think I mentioned it at the commodore's office, and they said the bureau had ordered the timber to be received, and all I had to do was8to sign the receipt. Question. Was anything said to you about minding your own business? Answer. There was a good deal said because I hesitated to sign this bill. They wanted the money; I put the bills up in the pigeonhole; they called two or three times. I only wanted to know about this, for it was altogether outside of my duty, because I thought I sdielled a member of Congress-that's all. BROOKLYN NAVY YARD. 165 Question. You thought there was a member of Congress at the bottom? Answer. I thought there seemed to be. I am pretty well posted. up in politics in New York city, and I had a little curiosity about that raft of timber because it came in an out of the way manner. The requisition was not properly made out, and it had to be compromised here with the bureau. Question. Did you finally sign the receipt? Answer.'Yes, sir; because there was the timber; I went to the raft and counted it Question. Was the timber paid for according to the original bill? Answer. I do not know whether it was or not; I know the bill was sent to me for signature to the receipt. I suppose it was. There was some little difficulty about it. The thing has almost all escaped my memory; that was nearly two years ago. The matter could not be settled in the navy yard, on account of the irregularity of the purchase, when Mr. Midmer appealed to the bureau here, and Commodore Smith investigated it; and under the circumstance that the timber was purchased without a requisition by the civil engineer upon the storekeeper and navy agent, the matter was settled by the bureau at Washington. Question. Who was Mr. Midmer who furnished the timber? Answer. He was an inspector in the custom-house. Question. Inspector of what? Answer. They have inspectors, weighers, and gaugers; he was simply an inspector; that was his title, inspector of the customs, I believe. Question. Do you know of any fire-brick being bought on open purchase at any time; and if so, how many, and by whom? Answer. I cannot recollect now; but so far as those fire-brick and all these other questionable things were concerned, I went into the commodore's office and called their attention to it. Ask Captain Rootes now. I think I have been a very vigilant officer, for I have called their attention to several of these things, when my suspicions of unfair dealing had been excited. Question. I will ask you how many fire-brick have been bought on open purchase? Answer. Those fire-brick struck my attention just in the same way that the piles did. I knew the man away up town, and thought him a queer man to buy fire-brick of, and I thought it was queer that they wanted so many for immediate expenditure. Question. Who was the man? Answer. I do not remember his name now. They were bought on open purchase, and they were expended when they were bought. I did not know what those fire-brick were for, and when I inquired, they said for something about the new store. Question. How many were there? Answer. I think. -there were ten thousand. In making out the annual specification of fire-brick that were required, the amount put down was five hundred, and they were bid for by Wendell, a contractor, at a very enormous price because there was but five hundred 166 BROOKLYN NAVY YARD. required. I think they were put in at $49 per thousand. In the summer, when a requisition came from the civil engineer, Graham, for ten thousand fire-brick on open purchase, I wondered why he did not know he was going to need them when his estimates for the year were made up and so put them into the contract. The contract for five hundred had been supplied, and consequently these ten thousand additional had to be bought upon open purchase. I think there were ten thousand, but there might have been but five thousand; whatever the number was, however, it struck me that with all the work the civil engineer was doing, he knew when he made out his estimates in October or November what would be wanted. Question. From whom were these fire-brick bought? Answer. I cannot remember the man's name now. Question. At what price? Answer. I think they were bought at $48 50, which was half a dollar under the contract price for the 500; I had the curiosity to go to a dealer and ask him what they were worth; he said such bricks were worth from $32 to $33 per thousand; it was a small affair; I am not absolutely certain about the quantity; it was one of those unusual purchases calculated to attract my attention in signing the receipt, which would not be noticed if it was a hundred gallons of sperm oil or linseed oil, or something of that kind in constant use; firebricks are something very peculiar, being only used in the smithery and plumbing shop; and what they wanted with so many bothered me. Question. Do you know of any other cases where articles were purchased at what you regarded as unusual prices? Answer. I generally scrutinize the bills, but as I have nothing to do with the prices it is only my own curiosity that prompts me; they tell me that I have nothing at all to do with the prices. The commodore passes upon and approves of the prices after I sign the receipt. I have seen things charged a good deal higher than I would pay for the same articles, when they were bought on open purchase. Question. Is it a general rule that articles purchased on open purchase are at exorbitant prices? Answer. I have a certificate on every article from the examining officer that is purchased on open purchase, before I sign it. The certificate of the examining officer is to the effect that the article has been purchased at a fair market price. Question. But is it not a fact that the prices are exorbitant.? Answer. That is my judgment; but I dislike to put my judgment against that of an expert in this business. Question. According to your judgment, the articles bought on open purchase have generally been charged exorbitant prices? Answer. I do not think it would be just for me to answer that question, and to set my judgment up against that of an expert in this business who has to certify everything before I sign it. My judgment might be that articles purchased at open purchase are bought higher than fair market prices; I think, as a rule, those who supply the navy yard with open purchase goods put on as much as their conscience will allow, and take the chances of its being cut down by the comniodore; and the commodore generally does not know anything about the market BROOKLYN NAVY YARD. 167 value of these things; I have noticed a good many of Captain Rootes' contests about prices, and I have been very much amused at the way he has knocked them down, and made them stand the reduction; of course, seeing all this I have my opinion, and I think as a general thing, a man who gets an order to supply a navy yard with anything, puts on the stiffest kind of a price; if it will go through, all well; if the commodore cuts it down, he stands it. That has been the habit. That is my opinion-no, I do not want it given by the reporter as my opinion, but it must be any man's opinion-it is human nature. Question. What is done, from any information you may have, or any opinion or judgment you may have formed, with the excess of price over the reasonable price for the article? Answer. That I could not tell. I have not the least idea. Question. Who makes these purchases at open purchase? Answer. The navy agent makes all purchases. Question. Do you. not know, or have you not been informed, that the inavy agent, or some person under him, receives a portion of that profit? Answer. I have no knowledge upon the subject. I have heard a great deal of scandal about our public officers-members of Congress, and others. Question. State your own opinion, from any information you have. Answer. No, sir; I have no opinion about it. I only know that the office of navy agent is one with a small salary, but that the navy agents make money and get rich. That is all I know about it. This is the general opinion. I have, held public offices before. Question. Do you know Mr. Sanders? Answer. Yes, sir. Question. Has he not been engaged in western speculations at Leavenworth? Answer. So I understood. Question. Is he much absent from New York? Answer. So I have understood. I go to his office and do not find him there. Question. How frequently have you been to his office? Answer. I do not know that I ever found him there but once. I have been there a good many times on business. Question. What is his salary? Answer. $3,000 or $3,500. Question. Is it not known publicly that he is absent from his office and engaged in western speculations? Answer. I should suppose it was. Question. Is it not known to the department? Answer. I do not know what they know. He might go to Kansas and stay there, build houses and buy lands, and the department might be unaware of it, for aught I know. He has an office, large and spacious rooms, and elegant apartments, at a pretty expensive rent. That has nothing to do with the navy yard. By Mr. Ready: Question. Is this furnished by the government? Answer. Yes, sir, the rent is paid by the government; it is in the old building of the Bank of the State of New York. 168 BROOKLYN NAVY YARD. Question. How much rent is paid? Answer. He must pay a pretty highrent there; but the department always allowed the rent. The amount is readily ascertained from the official documents. By Mr. Bocock: Question. Is that his office as navy agent? Answer. Yes, sir; he has no office in the navy yard. Question. What is your salary? Answer. $1,700. Some complaint has been made because I did not attend at the navy yard every day. Now, it would be absolute folly for me to travel over there every day. Question. Who are your bondsmen? Answer. The district attorney said that it was the best bond he ever sent to Washington. They are BryanMcCahill and James Humes, two wealthy Irishmen, neither of them office holders but one of them has been a city councilman. By Mr. Ready: Question. I wish you to state more particularly what proportion of your time is given to your duties as storekeeper? Answer. I am editor of a newspaper, and I might go over there and write in the office. If it is absolutely necessary, edit my paper over there as anywhere. work and business of the naval stores; to see that the property is taken care of; to see that the accounts are properly kept. I have a faithful young man, who is first clerk. He was educated for the bar; a young man 23 years old, who graduated at Columbia College with some distinction, and has studied law. I put him over there because I could rely upon him as an expert clerk to keep the accounts right. I supervise and see that all is done right, and every night I know everything that has transpired there. Question. Do you suppose you devote as much as one-seventh of your own individual time to the duties of storekeeper? Answer. I do not know that I do; but I do all that is required. If I were there all the time I could not do any more than I do now, unless I should take hold and help the laborers weigh iron. By Mr. Bocock: Question. Suppose that your son was storekeeper himself, could not he discharge all the duties of his position and of yours too? Answer. He could, but it would be excessive labor and responsibility. I do not imagine that a storekeeper, with a salary of $1,700, is paid mainly for the manual or mental labor he performs, but for the responsibility he assumes; and I do not think he is half paid for that responsibility, and no man who understands it would say so. The salary is contemptible, in consideration of the responsibility. Here are men employed among goods of all kinds which are liable to be stolen, and myself and my bondsmen are liable for everything. I think a man might, if he would take the responsibility, perform the labor of both offices at $1,700; but I do not think you would find any responsible person to do it. Question. All that you are re ponsible for is to see that things are safely kept, is it not? BROOKLYN NAVY YARD. 169 Answer. To see that they are not lost or stolen. Here are these people keeping a hardware store, a paint store, a dry goods store, an iron and copper store, a duck and cordage store, all in their appropriate rooms, and all these things are liable to be stolen. Question. Are they not all secured by bolts and bars? Answer. No, sir; in the daytime they are all open. Take the iron store, for instance: a great, spacious store, with five laborers in it, and the head laborer, who is to see to it all, has a salary of $1 50 per day. That is not enough to prevent a man from stealing. A piece of copper, worth two or three dollars, might easily be slipped into the pocket and taken out of the yard, and I am responsible for it to the government. By Mr. Ready: Question. What is the salary of your clerks? Answer. That of the first clerk is $1,200; that of the second clerk is $900. The labor is immense. They work night and day, and sometimes Sundays, and yet they cannot keep up the accounts, and the department will not give me more clerical help. They sent the other day for the expenses of the Paraguay expedition to be forwarded immediately, and there is more work in that than those men could do in three weeks. Question. Is not that an extraordinary requisition? Answer. It may be; but the last year there has been twice as much done in the naval storekeeper's department as in any year before, so far as I can learn from the books. By Mr. Bocock: Question. Who was the agent at the time of the purchase of the fire-brick? Answer. Mr. Saunders, I think. Question. What was his authority in making that purchase? Answer. I can illustrate that by this paper.-[See Appendix attached to this deposition.] A requisition was first made upon me that they wanted so much timber. Not having it on hand, I made a requisition upon the navy agent to obtain it of the contractor or by open purchase. This was for white pine timber. White pine dimension timber had been contracted for by Mr. Campbell at $25 per thousand; but he contended that this did not come within his contract, and he would not put it at the contract price. After a long controversy the navy agent had to pay forty-odd dollars per thousand for it. The words " to be used in place of timber not required in contract," have been interpolated since this requisition left the storekeeper's office. Although that looks very much like the handwriting of my son, it is not his handwriting. Question. Where are all those requisitions recorded? Answer. They are all recorded in my office. That is the labor of the storekeeper. It is performed by one of the writers. Question. Do you take a receipt for everything given out? Answer. Yes, sir; vouchers are signed for everything I give out. The blacksmith signs for the iron he has; the plumber for all the goods he has; the carpenter for all his materials and all his tools for the naval storekeeper's stock embraces all sorts of tools, and all 170 BROOKLYN NAVY YARD. sorts of fitting out, and it requires something of a storekeeper to attend to it. The hardware man is a man who has been there for I don't know how long, and if he should be removed, and an order should come to fit out a vessel, I don't believe we could get a man to do it. Question. Is there any mode to obtain additional profit or receipts to eke out your salary? Answer. Not that I know of. Question. Have you ever received, in connexion with this office, any other compensation than your salary? Answer. Never; not one single cent. Question. Have you ever furnished the government with any articles, either by open purchase or by contract? Answer. Never a thing. Question. In former days, or at any time? Answer. I think that in the Tyler times I had a requisition for some printing; and I think I did some printing for the navy yard in 1843 or 1844; otherwise, I have never had any dealings whatever with the navy yard until I went there to take charge of my present office, and I think my business has been pretty well done. I think the duties are done, although my presence has not been there every day. Indeed, I could not afford to go over there for the pay. Question. Is it not the duty of the naval storekeeper to see that the seventeen men under him are at their work? Answer. Yes, sir; he is responsible for that. I have a foreman there who attends to that. Question. Suppose that the foreman should be faithless. Answer. I take care to have a faithful man, one that I can trust. APPENDIX. Abstract statement showing receipts and expenditures during the fiscal year ending June 30, 1858, and the value of all stores on hand at the various navy yards on the 1st July, 1858. Navy yards. On hand July Received. Expended. On hand July 1, 1857. 1, 1858. Portsmouth.- $751,685 50 $161,962 43 $182,681 32 $730,966 61 Boston.. —--- 1,530,800 39 862,247 22 764,882 62 1,628,164 99 New York 1,315,019 03 556,712 03 457,578 38 1,414,152 68 Philadelphia —------- 526,426 93 295,800 90 293,002 44 529,225 39 Washington...-.. —-- 528,115 43 475,634 58 545,267 91 458,482 10 Gosport ---------. 1,565,958 28 446,883 38 473,015 06 1,539,826 60 Warrington.. —---- 341, 346 80 61,819 26 70,320 22 332,845 84 Total ——. —--- 6,5599352 36 2,861,059 80 2,786,747 95 6,633,664 21 BROOKLYN NAVY YARD. 171 No. 431. UNITED STATES NAVY YARD, NEW YORK, August 15, 1857. SIR: There is required, under the appropriation for improvements, Bureau of Yards and Docks, "dredging channel," constructing engineer's department8 pieces of white pine timber 40 feet long-12 x 12. 8 pieces of white pine timber 40 feet long- 6 x 12. 8 pieces of white pine timber 151 feet long- 8 x 15. 24 pieces of white pine timber 40 feet long- 4 x 12. 16 pieces of white pine timber 35 feet long -3 x 14. 16 pieces of white pine timber 14 feet long~-3 x 14. And 14,500 board feet of 3-inch-white pine plank, to be 15 feet long, and from 12 to 16 inches wide, clear of sap and knots, to be used in place of timber not required on contract; 1,300 Secor & Co. 7-inch hand spikes. W. W. CAMPBELL, Contractor. Approved. THOMAS R. ROOTES, Commandant. Respectfully, your obedient servant, ANSON HERRICK, TU. S. Naval Storekeeper. The NAVY AGENT. FEBRUARY 8, 1859. ANSON HERRICK recalled. By the Chairman: Question. Do you know whether the names of any men were ever put upon the pay-roll of the Brooklyn navy yard who did no labor or service there beyond answering to their names at roll-call? Answer. None in my department; I do not know as to the other departments; I never inquired about it, and I know knothing more about it than do the gentlemen of this committee; it is not my business to know. Question. Are not politicians-what they call "primary men" of New York city-put to work in the yard upon the recommendation of members of Congress, without reference to the necessities of the service, in order that they may be paid for political services? Answer. I do not know that they are; I should not suppose that a master workman would put men to work if he had no work for them to do; I do not know in what fear they stand of members of Congress; I know that they stand in considerable fear of them, supposing them to have considerable power; it is supposed, I know, that the patronage 172 BROOKLYN NATVY YARD. of the navy yard belongs to members of Congress; they dispense it; if any man wants to get work there, he must get a letter from a member of Congress recommending him; that is the rule there in dispensing the government patronage in the navy yard. Question. Do you not know, so far as your observation extends, that master workmen do employ incompetent men to work in the navy yard; men who are employed there because of their political influence? Answer. I do not know that; I know the process of getting men to work in the navy yard; I have seen members of Congress once there, Mr. Maclay, Mr. Sickles, or some others, and have spoken to a master workman about putting on workmen; these master workmen will send word to members of Congress when they are about employing additional men: I am about to employ so many men, and I will put on so many from your district if you will send me their names; when it gets to be about election time most of the Congressmen are about the navy yard as busy as men can be, getting their friends employed there; I will say this, that I never saw the representative from my district, Mr. Horace F. Clark, in the navy yard; I think, however, that I have seen every other city and county member there. Question. Have you not recognized among the laboring men in the navy yard well known "shoulder-hitters" and criminals of the city of New York? Answer. I do not know exactly what you mean by "shoulderhitters." Question. That is a term generally recognized in your city, is it not? Answer. I do not know that there are any professional pugilists employed in the navy yard. I have no knowledge of any in the navy yard. They get employment rather under our city government than in the navy yard. The class of people who are employed in the navy yard are worthy mechanics. These fighting men, these "shoulderhitters" as they are called, are not apt to be mechanics. I think the navy yard is more exempt from that class of people than any other department; more exempt than the custom-house, our city government, or our State government. I think that the mechanics in the navy yard are, as a general thing, somewhat of a reputable class of citizens. I have been importuned to get employment for men in the navy yard, and I have gone over there myself and asked the masters if they could not give this or that man a place, as he was a poor man with a family to support. They have said: I have not work for him now, but when I have it, I will do so if I can. Question. Did you ever know of any man being appointed under a master workman except his political relations were what are considered of the right kind? Answer. I do not know. To be candid with you, I never recommended a man to a place there unless I knew he was a democrat. I never was a member of Congress, but I have been a candidate; and I have tried to get men employed in the navy yard, and I did as others do, endeavor to use my influence for those of my own political opinions. You have your own predilections, I suppose, Mr. Chairman, and I BROOKLYN NAVY YARD. 173 suppose that none but your political friends would come to you for your recommendations to office and preferment. Question. Is not the effect of the administration of the patronage in the navy such that a man cannot get the humblest employment there unless he is known to be an active partisan? Is not that the tendency of this mode of the administration of the patronage in the navy yard? Answer. I do not know but what that is the effect of the system. Yet I think that there are some masters in the yard who, if they could not get competent workmen of their own political faith, would take those of the other parties. In the matter of ship building, for instance, it requires mechanical genius to execute the necessary work, and mechanics must be had to do it. We should have queer ships and buildings in the navy yard if we did not have mechanics, but politicians, to do the work upon them. I do not expect that our members of Congress would recommend there other than their own political friends. I apprehend that our democratic members of Congress would not send a republican mechanic over there to get work. I should blame them if they did. So, upon the other hand, when the other party was in power no democrat could get work there under them. Question. Do you not know that an unnecessary number of laborers and mechanics are often set to work in the navy yard? Answer. I do not know it of my own observation. I have seen large gangs of men there at work, but I presumed the master workmen were the best judges of what was required. I know that they are very reluctant, and do not want to employ more men than they can avoid employing. I know that I have visited the master painter when I knew he had a job of work on hand, the painting of a vessel, for instance, and requested and urged him to appoint some poor painter from my neighborhood, and he has told me that he could not do it; that there was not room for another one to work there; and that there were more now there than he really wanted, crowded upon him by members of Congress. I think the masters are pretty conscientious, and fight off the members of Congress with a great deal of resolution sometimes, ani refuse positively to put on any more men. Question. Then you are of the opinion that there are more laborers employed there than there is a necessity for? Answer. I think there is. I think it is so in all the departments, too. I think we have more clerks here in Washington to do our work here than there is any necessity for. I think it is so, too, in our city government in New York. Question. And the tendency of that is manifest in the navy yard, is it? Answer. Yes, sir. Question. You say that members of Congress go into the navy yard? Answer. Yes, sir, to see that their friends are put at work there. All the men there are employed upon the recommendation of members of Congress; and as that is the rule, these members go over there and ask the master workmen to put this man at work; or the friends of some man will go in there and ask to have some poor man put at work, and the master will say, " Go and get a letter from Mr. Sickles, Mr. Maclay, Mr. Cochrane," &c., "and I will set you at work." 174 BROOKLYN NAVY YARD. Question. Is it usual in New York to use money in your elections? Answer. Well, I cannot conceive how an election can be carried on very well without money. I have just gone through an election, and I know it cost me some money. Question. Are contributions for electioneering purposes levied upon the officers and men employed in the navy yard? Answer. No, sir; not in my department. I paid my own expenses for the election I have just gone through. Question. I do not mean for your own election expenses, but for general election expenses; how is that? Answer. I would not permit any such thing in my department. I considered that the men employed there were paid too little, anyway, for the work they are obliged to perform. Those contributions for election and political purposes are generally extorted from the customhouse employes, &c. Question. Do not you levy upon officers in the navy department, employes, &c.? Answer. I have not done so. Question. Did they not levy upon you? Answer. There was never any levy upon me, and I would not have paid it if there had been. Question. Did you contribute towards elections in your State? Answer. I have not contributed since I have been in the navy department one cent, except for conducting my own canvass. I am somewhat of a political man; I have been a candidate for Congress; I have been an alderman for three or four years, and I have had a great deal to do with New York politics, and I say that it costs money. I guess it cost my competitor last fall a little money to be re-elected, and I know it cost me a great deal to try to beat him. By Mr. Groesbeck: Question. You have stated that it is the practice to expend money, raised by contributions, to carry on elections. Is it not notorious that the republicans contribute much more largely than do the democrats? Answer. Very much so. I am a member of the Tammany Hall general committee, and have been connected with it a good many years. We have to raise money to carry on our party organization, and we expect it to come from our party office-holders. I do not know who else is to pay it. We have many expenses to pay, such as printing, &c. Our printing bill alone amounts to $7,000 or $8,000. By Mr. Ready: Question. You have stated that it is general to use money for elections in New York; state whether or not this money is used to influence and buy votes? Answer. Not that I know of; it is used to carry on and pay legitimate election expenses, such as printing, &c. Question. Is it the money of private individuals or is it public money that is used? Answer. Individual money, I suppose. Question. What produces the necessity for the use of money in that way? Answer. The getting up of public meetings, making public demon BROOKLYN NAVY YARD. 175 strations, paying for bands of music, for processions, banners, transparencies, printinog show bills, printing tickets, advertising in the newspapers, &c. Question. You do not exactly comprehend my meaning. I want to know if money is used by one party in elections because it has been used by another party for the same purpose. Is it because a particular class or party use it that another class or party are prompted to use Answer. In opening an election campaign both parties go in to raise the money to carry on its operations, making great displays, getting up public meetings, firing guns, and providing all the parapharnalia of a New York election. The whole thing is expensive. I have been a member of a general committee when its expenditures for the organization have been $12,000 a year-what are called the necessary expenses of an election. Question. D~o you know whether individuals are prompted to use money in elections and counteract either the use or the supposed use of government patronage in the election? Answer. I do not know how government patronage can be used to influence elections, except the mere part of members of the party holding offices. Question. I do not assert that it is used, but I want to know whether individuals are prompted to use money because they suppose that government patronage is used in that way? Answer. That I could not tell. By Mr. Bocock: Question. How long have you been acquainted with the management of the Brooklyn navy yard? Answer. Since I went there. Question. Not before? Answer. No, sir. Question. When did you go there? Answer. I was appointed to the office I now hold at the commencement of this administration. Question. Did you know before that time whether appointments were made there upon political grounds? Answer. I always supposed they were. Question. You do not know anything about it.? Answer. I know I have been instrumental in getting men appointed there whom I recommended upon political grounds. Question. How long have appointments been made there upon political grounds? Answer. Ever since there has been a navy yard there, I suppose; the civil appointments I mean. Question. State whether you applied to Mr. Horace F. Clarkin this city for the purpose of getting him to intercede with the department to have an inventory taken of the government property in the navy yard in Brooklyn. Did you not write a letter to him upon the subject? An wer. I might have done so, but I do not recollect it. I was talking with Mr. Clark about it this morning, and he says I did write 176 BROOKLYN NAVY YARD. to him about it. I have no recollection of writing to him upon that subject In my testimony of yesterday is the statement that I applied for an inventory, and I then stated the difficulties of making it. Question. Did you state, in connexion with that application, that you were unwilling to become responsible for the property in the navy yard without an inventory being taken? Answer. Yes, sir, I said so. Question. Did you not also state that all the property of the government which ought to be there was not there? Answer. I was apprehensive that it was not. I could not know that it was; but I was apprehensive that it was not, and that was the reason of my anxiety to have an inventory taken, in order that I should not be responsible for more than was put in my hands. Question. Do you know whether an inventory or schedule has been kept there of all the government property? Answer. It has always been kept there by the naval storekeeper. Question. Was it a complete list of all the property of the government there, or was there property omitted? Answer. As I stated when I was examined before, the list was not complete, and the surplus grew up in the way I suggested, being returned from vessels and not entered upon the books. Question. Do you or do you not know that there has been government property in the navy yard which might be abstracted without the government being able to recover it, in consequence of there being nothing to show that it belonged to the government? Answer. I think that there is such property there, and, as illustrations, I will state two circumstances which occurred since I was there of property being abstracted. [After a short pause,] I do not know exactly how to commence my statement. When I entered upon the duties of the office of storekeeper in May, 1857, I continued the former chief clerk until the 1st of June, when I notified him that I would not require him after the 1st of July, as I had resolved to make a change in the office of chief clerk. He had been there for nineteen years, and I made up my mind that he had been there long enough. About the middle of the month of June he wrote me a note, stating that upon going to the office one day he had found that one of the drawers in his private desk, where he kept comparing watches, had been picked, and some eight or nine comparing watches taken out. I thought I was in for that certain. I supposed I should be responsible for it, at any rate. I investigated the matter on my own hook, got an expert police detector to go there and examine all the clerks and the messenger about the office; but he could find no trace of the watches. I advertised, at my own expense, in the newspapers; I employed a policeman at my own expense, and tried my best to find the watches. I could not find any trace of them. I then examined the books to see how many watches were on the books, and that was what first drew my attention to the subject. I found that there were only two watches down on the book. Yet although they had stolen some seven of them there were enough left to cover all upon the books. There had been some fifteen or sixteen in the drawer, yet there were only two which BROORLYN NAVY YARD. 177 were recorded as returned to the government. So that, after seven had been stolen, there were still some seven or eight left, sufficient to cover the number represented to be on hand. This was the first thing that excited my attention about this matter. I found that if unreorded property was stolen, it did not necessarily involve me in any responsibility, as it was not down on the books. In this case I was ready to settle vwith the government, deliver over to it the two watches that the books called for, and then I would have some four or five left. That resulted from this same process of returning the articles -and not entering them upon the books. Question. What kind of watches were these? Answer. They were English watches, patent lever watches, which were given to the forward officers to compare with the time. When they came back into port they returned these watches, but they had n~ot been put upon the books again. I was as vigilant as I could be about these watches, and worked as hard to try to recover them as though they had been my own property. Question. What were these- watches worth? Answer. They were rated at $25 on the books, but I do not think they were worth that much. The other crcumstance was this: some six or eight months ago I had intimation that this man, who had been discharged from the office of chief clerk, and had been out of employment for a year, had a marine timepiece in his house that belonged to the United States government. I hardly knew what to do about the matter. This man was a respectable man and a man of family; but still there was the information which came to me that he had a clock belonging to the government which he had taken out of the yard some year or two ago. I went to Mr. Sedgwick, the United States district attorney, and asked him what I should do in the matter. He said if I knew of any government property being out in that way I ought to take steps to recover it. He advised me to commence a replevin su-it against the man for the clock. I did so, and sent an officer down to his house, who took it and brought it to my office in the navy yard. Those are two cases I know of where property of the government was abstracted. The watches were lost; the clock was, recovered. Question. Was that clock down in any inventory, so that you could identify it? Answer. Every instrument belonging to the government, down to, these ships' comparing watches, have their marks and numbers and. makers' names, &c., registered; so that if I could find out where theyJ were, so as to get their numbers and marks, I could tell whether they belonged to the government. After this, I myself instituted regula,.. tions that everything landed from the vessels and returned should go upon the books. It is in relation to this matter that I want to qualify what I said yesterday. I do not want to swear that my immediatepredecessor was the only man that neglected to have these returned articles entered upon the book. I think that they all did as he did. These instances I have mentioned show what can be done unless the, parties are detected. At one time some laborers were detected carrying off some copper bolts. The marines on duty in the navy yard are al! 12 D 178 BROOKLYN NAVY YARD. the time detecting this stealing, this petty larceny, that is going on there. Subsequently the witness made the following statement: In the report of my testimony as submitted to me, I deem it important to make the explanations and qualifications herewith submitted, In relation to the surplus goods on hand, I mean to say that my predecessors in office, not particularly Colonel Delavan, my immediate predecessor alone, have been in the practice of not entering upon the books all the goods landed from return ships. I mean that the fact of an existing surplus proves that such entries have not been generally made before my time. In reference to there being a surplus of almost everything except timber, it is proper to say that I believe there was a small deficiency in iron. In reference to my own duties, I should state that I in person supervise the accounts, examine and sign the monthly returns and the elaborate statements of goods received and expended, sign all requisitions upon the navy agent and the receipts attached to all bills for goods and supplies furnished the yard, conduct the correspondence of the office with the navy agent, the contractors, the department at Washington, and with the commodore of the yard, between whom and the storekeeper there is much intercourse in relation to the fitting out of ships and furnishing of supplies, all of which is conducted in writing. The number of requisitions I am required to sign amounts to thousands in a year; and many hundreds are the official letters written by the storekeeper. I forgot to mention that I have much important business to do in the way of shipping supplies to our foreign naval stations and vessels abroad, and to the other navy yards in the United States. I mean further to say that the clerical force allowed me by the department is not adequate for the work imposed upon my office, and that I am obliged to make clerks, at times, of men rated as laborers at 112 cents a day, in order to get through with the writing. In relation to the signing of official papers, when I am not personally present in the navy yard, I mean to say, that when my signature is required the papers are either brought to me after office hours by my first clerk, or sent over to my office, which is but a short distance from the ferry, by the messenger, in which capacity one of the laborers is employed. If my presence is required or needed the messenger notifies me, and I respond by my appearance at the yard promptly. I alm always sent for when wanted, and I have no knowledge of any embarrassment having taken place in the public business in consequence of my not being in the yard. My private office is within,fifteen or twenty minutes walk of the yard. The several stores in my charge are located in different parts of the yard, some of them quite remote from others, and all separate from the building where the storekeeper keeps his accounts and his immediate office. In relation to the timber (piles) furnished by Mr. Midmer, the whole facts are, in short, that Mr Murphy, then the constructing engineer, purchased it without first making a requisition. It was the BROOKLYN NAVY YARD. 179 irregularity in making the purchase that created the difficulty; and in consequence of that irregularity there was no power in the officers of the yard to settle the bill. Hence the appeal to the bureau, and the settlement of the affair by the superior powers. The informality was waived; the timber was received and paid for. The certificate of the timber inspector was appended that the price charged was the fair market value of the timber before my signature was appended. ANSON HERRICK. No. 55.-EDWARD A. BARNET, PHILADELPHIA, U. S. N. FEBRUARY 9, 1859. EDWARD A. BARNET called and examined. By the Chairman: Question. What is your official position? Answer. I am a lieutenant in the navy. Question. Where were you stationed in the summer of 1858? Answer. At the navy yard in New York. Question. When were you removed? Answer. I was removed in September, 1858, to go in the Niagara, very suddenly. Question. From whom was you first notified of your removal or intended removal? Answer. There was a man by the name of Lynch, who threatened to have me turned out of the yard. I had previously threatened to kick him out of the yard for some threats which he made against Colonel Harris; he was very abusive, and cursed me, and I laid it to him at first; it was currently believed that I had been removed through his influence, but since then I have changed my mind about it; I do not think that Secretary Toucey would have anything to do with such a contemptible scoundrel as he is. Question. Who is this Mr. Lynch? Answer. I do not know anything about him; he is represented to be a pot-house politician. Question. Where? Answer. About New York. Question. Is that the same Mr. Lynch who is about here in Washington? Answer. Yes, sir, the same man; he has been here since, and asked what I was doing, and said he would be damned if I should go back into that navy yard any way. He threatened to shoot me in the yard, in the commandant's office. Question. I will ask you if you recollect an accumulation of liveoak belonging to Mr. Swift, in the yard at Brooklyn?. Answer. No, sir; my duties were not in connexion with that at all; I was the inspecting officer; purchases made in open purchase came through me; I had to inspect and see that the price was correct, as near as I could. Question. How did the prices of articles purchased upon open 180 BROOKLYN NAVY YARD. purchase generally rate-were they higher or lower than market prices? Answer. They were generally higher. I got at the market prices as near as I eould; it was very difficult for a man in my position, as the prices varied so much. I rejected a good many articles, and I thought that made me somewhat unpopular. Question. When you rejected articles what was the general result? Answer. They were taken away immediately. Question. State whether or not they were returned at lower prices. Answer. Of course they were furnished at lower prices. Question. Who furnished articles for the navy yard upon open purchase? Answer. There was one peculiarity about open purchase; I can only exemplify it by an illustration: Suppose there was a horse required; I would send word to the navy agent, and, instead of letting the messenger or some person o and buy one, he would send to a ship chandler by the name of Secor, and let him buy it. The result is obvious. Question. Was that the uniform habit? Answer. It was, unless I went myself and insisted upon it. For instance, if we wanted to buy some oilcloth to put down in a ship's cabin, where there was some.ittle taste required, I would go myself in order to get a peculiar pattern, and then I suppose he considered it a favor. Question. How frequently was Mr. Saunders, the navy agent, in his office? Answer. I more often found him out than in. Question. Was he not absent from the city a great part of the time? Answer. That I do not know. Question. How did it happen that he got Mr. Secor to make these purchases? Answer. That I do not know, sir, at all. Question. Do you know whether there was any arrangement between Mr. Saunders and Mr. Secor? Answer. I do not know. When the new contracts came out there was a man by the name of Kennedy who had had a great many contracts there, told me I had better be careful; he had not got many of them, and he said the bids were so -very low that he could not possibly take those articles, so that I had better look out or I would be cheated. He mentioned one article particularly, white lead, because they had contracted to furnish it at a lower price than they could buy it. They could not do it, and so were shoving spufious articles on the government. I have forgotten the name of the new contractor. Question. What was the business of Mr. Secor?.Answer. I think he was a ship chandler. I never went to his office at all. I would not have gone there. If they had sent me I should have declined to go. Question. What part of the city did he live in? Answer. I do not know, sir. BROOKLYN NAVY YARD. 181 Question. What connexion had he with Mr. Saunders in the way of business1? Answer. I do not know of any. Messengers that I would send after things would come back and say it was no use for them to go over there, after anything, because he would always send them to Mr. Secor. In fact, all the articles in the receiving store are in bad condition, and the storekeeper is never there. I do not think I saw him three times in five months, and at the same time he was complaining of a want of clerical force. If I had any business to transact in the store I had to do it with an understrapper-his son. The store is a disgrace in its present condition. I would have liked to have arranged it, and put the affair in order, but I had no authority and could not do it. Question. What other abuses have you observed in the navy yard? Answer.'I think there is one that exists in relation to taking in laborers. It would be particularly the province of the officers to select these men. They are, many of them, physically incapable. In one instance, in dismasting the St. Louis, I could scarcely get the masts out of her. I could not get the men to work; in fact, they were not strong enough. If they had been sailors I could have done well enough, but these were men who had been, apparently, broken down by whiskey, and besides that they were old —very old-so that they were unable to perform the labor required of them. If I would set theim to whitewashing, I had to watch them to see that they did not stop. I reported this thing to Captain Rootes, but he said he had no authority to discharge them and take in better men, although I believe he took it upon himself to do it pretty violently upon one or two occasions, when he got angry and turned them out of the yard by neck and beels. Question. Do you know of any other abuses? If so, describe them -abuses which yp saw in any department of the public service? Answer. No, sir, I do not know of any others in particular. An officer of the yard could give no order at all to have anything done in the department of the naval constructor without going to the naval constructor himself. Question. It was your special duty to inspect the articles as they were sent in? Answer. Yes, sir. Question. I will ask you to name, as near as you can, the aggregate amount procured on open purchases, per annum, in the Brooklyn navy yard? Answer. I could not specify it in figures, but it was very large. Question. Was it a million of dollars, or how much? Answer. I could not tell. Question. What was it in proportion to the amount purchased by contract? Answer. I do not think it was near so large. Question. Were any complaints made about the navy agent neglecting his duty? Answer. No, sir, I did not hear of any, except that hel put us to a 182'BROOKLYN NAVY YARD. good deal of trouble. I remember one instance when some gold leaf had been required at open purchase, and a painter in the yard went over and got it, I think it cost $8 50 per package, and when he brought it to me he represented that if he had been ordered to go and buy it himself he could have got it in Brooklyn for $7, being a dollar and a half less per package than was paid for it. The reason that we had to use things sometimes when the prices were too high was because we wanted them immediately. They wanted this gold leaf to put on a ship that was going away. Sometimes circumstances rendered it impossible for me to reject the articles when I knew the prices were too high; but I did reject them whenever I could. I never let such a thing slip if I could possibly help it. By Mr. Bocock: Question. As inspector, did you determine upon the reasonableness of the price, as well as the quality of the article? Answer. Yes, sir. It was my business to find out the market prices as well as I could. I used to send a messenger over to get the market prices. Question. How often did you find it incumbent upon you to reject articles in consequence of excessive prices-was it a common thing? Answer. No, sir, it was not a common thing. Question. You say that upon some occasions, when articles were rejected for excessive prices and sent back, they were returned at lower prices; do you mean that the same article was returned, or an article of similar description? Answer. No, sir, not the same article; they would send back other articles. Question. Do you know whether complaint has ever been made to the Navy Department that the navy agent was inefficient or inattentive? Answer. No, sir, I do not. Question. Do you know whether Mr. Lynch ever made any complaint about yourself? Answer. Nothing but what he said himself, this braggadocio,what he would do. I never believed that he did make complaint against me, or if he did, that it had any effect. In fact when I went to sea the service was hard pressed for officers, and had not any to send to sea. By Mr. Bocock: Question. Do you not think that the lieutenants are over-worked? Answer. Our lieutenants worked very hard. I know I am suffering now from the effects of my last cruise; this is the sixth time I have had the inflammatory rheumatism. I have been at sea six years since 1850. Question. The exigencies of the service required lieutenants to be constantly upon duty? Answer. Yes, sir. By Mr. Groesbeck: Question. You spoke of abuses in the yard. Is it so or not, that in a yard of that sort, where so much work is done and so many men BROOKLYN NAVY YARD. 183 are required to do it, from time to time there will necessarily be some abuses? I wish you would specify those which you think can be easily and certainly corrected. Do you suppose it would be possible, for instance, to run that navy yard, (if I may use such an expression as that.) with the number of men required from time to time, according to the exigencies of the service, do you suppose it would be possible to run it, full manned, without abuses? Answer. No, sir, I think not. Question. What I want you to do is, if you can, to designate those particular abuses which you think could be certainly remedied. Answer. I think if the officers were given some power in the yard that would rectify one of the abuses that exists. Now they have not got sufficient power; they are mere automatons about the yard. I could not order anything done there without going to some one to enforce it. Question. Your great objection is that the officers have not sufficient authority? Answer. They have not; they cannot discharge a man at all in the yard. By Mr. Bocock: Question. Do you know anything of an order that has been issued since you left there, on the 11th of December, from the Navy Department in relation to this subject? Answer. No, sir, I do not. Now as to laborers, I had a good deal to do with them; they were working under my orders, but they were selected by another person. I could not select them; I saw their inefficiency; they were physically incapable, many of them, to do the duty; they were not strong enough, they were old men, instead of being active, energetic fellows. The witness made the following statement previous to signing his testimony: I find the following question and answer recorded in my testimony: "Question. State whether or not they (rejected articles) were returned at lower prices? / "Answer. Of course they were furnished at lower prices." What I wish to state in explanation is that when articles were rejected on account of being inferior in quality, better articles were returned to the yard, and though at the same prices, they were in reality cheaper than the other and inferior articles would have been. EDWARD A. BARNET, Lieut. U. S. Navy. 184 BROOKLYN NAVY YARD. No. 63.-CHARLES HASTINGS, BROOKLYN. FEBRUARY 10, 1859. CHARLES HASTINGS called and examined. By the Chairman: Question. What is your official position in the Brooklyn navy yard? Answer. Assistant constructing engineer. Question. What has the constructing engineer the charge of in that yard? Answer. He has charge of all the improvements of the yard, such as docks, roads, walls, wharves, buildings, &c. Question. Who is the engineer? Answer. Charles K. Graham. Question. What was his occupation prior to his appointment? Answer. iHe was appointed from the assay office. I was told that he was a clerk there. I was not acquainted with him before he came into the yard. Question. State what his qualifications were as constructing engineer? Answer. I never saw him do anything myself. I never knew any lans made by him. Further than that, I am not able to judge. Question. Who performs the duties of constructing engineer in the yard? Answer. The draughtsman, Mr. Leigh. Question. What duties does Mr. Graham perform? Answer. He appoints and discharges the men, and signs papers, attends to the correspondence, and visits the works occasionally. Question. You say he prepares no draughts? Answer. He does not himself. I judge so from the business that has been between him and me. I have never received any instructions from him with regard to the mode of doing work, and I never knew one who has. Question. Has he ever been engaged in any other employment outside of the navy yard, and outside the line of his duty, since his appointment? Answer. I do not know that he has. Question. Has he had anything to do with opening streets in the city of New York, or with the Park, or anything of that kind? Answer. There were plans made in his office something more than a year ago for the widening of Duane street; there were one or two plans and a title page made by one of his draughtsmen. There was a sort of sketch made of Central Park-copies of plans; and about a year since there was an exhibition plan made and colored by his draughtsman, which I saw in his office. Question. Is the draughtsman paid by salary? Answer. He is now. He has been since last July. Before that he was paid by the day. Question. Was he paid by the government for the time spent in making these drawings for the Park and Duane street? BROOKLYN NAVY YARD 185 Answer. I have been informed so. I was told so by the clerk of the yard. Question. Have you been constructing launching ways in the Brooklyn navy yard? Answer. They have been constructing there. Question. Where was the work commenced? Answer. It was commenced inside the building by driving piles and excavating. Question. What is your experience as an engineer? Answer. It has been somewhat varied. It is about nineteen or twenty years since I first commenced the study in Boston, with Captain Alexander Parris. Question. Have you been an engineer ever since then? Answer. Yes, sir; in different branches of the profession, both mechanical and civil. Question. Was the mode and manner in which the launching ways in the Brooklyn navy yard were constructed a proper mode and a scientific and skilful mode of executing that work; and if not, in what particular? Answer. I think, as far as the work finished in the ship-house has been done, it has been done very well; perhaps too well. It is not of much consequence, any more than the expenditure of money is concerned; but the work outside, I think, has been very improperly carried on, that is, the work in deep water; the work above water has been carried on very well. Question. How much time did Mr. Graham spend in the navy yard in the discharge of his duties? Answer. I think he was there from ten to three, or sometimes from eleven to two; about four or five hours a day, perhaps. Question. Is he there daily?.Answer. Yes, sir, the majority of the time; perhaps five days in the week, unless he is unwell. He has not been very well a part of the time. Question. Please to state whether the constructing engineer could draw the plans for a building or structure in the navy yard? Answer. I cannot tell. Question. What is your judgment about it? Answer. That would be only derived from hearsay. I have heard that he could not. I never saw him do anything from which to form a judgment. Question. Do you know whether he has ever done so or attempted to do so? Answer. I do not think he has; I never have seen him do so. If he has I think I should be likely to have seen him, from my connexion with him. Question. What part has Mr. Graham taken in the appointment of men in the Brooklyn navy yard? Answer. He has appointed them himself. He has selected the men in part. When men were to be taken on, the master workman would prepare a list, and Mr. Graham would dissent in part, and add men of his own, with recommendations. 186 BROOKLYN NAVY YARD. Question. How many men were appointed under his department of service altogether? Answer. I cannot tell, sir. Question. How many master workmen are there under him? Answer. There are five of them in all. Question. How many men are employed under these master workmen, as near as you can get at it? Answer. In the busy season, I should think there were five hundred men. Question. How many of the workmen did he claim the right to appoint? Answer. There was no particular number; I should think he put on one-third of the men. Question. Were these men selected for their qualifications; and if not, what influenced their selection? Answer. I do not know that they were selected for their qualifications. Some of them are good workmen and some are not. I do not know that the men whom he selected vary from the others. Question. I will ask you whether politics had anything to do with the appointment of men in the Brooklyn navy yard? Answer. The members of Congress always recommend men to be employed there; they have always done it. Question. Who recommended the men appointed by Mr. Graham generally? Answer. That I do not know. Question. Do you know upon whose recommendation Mr. Graham was appointed? Answer. On that of Mr. Sickles. Question. For whom and for whose benefit was the drawing of the plans for Duane street and the Park done? Answer. The plans for Duane street were marked " Office of Graham & Bagley, civil engineers, New York." Mr. Graham is engineer of the yard, and Mr. Bagley is his partner. Previous to coming into the yard they had an office in New York, and the plans were so marked. Question. How was it about the plan for opening the Central Park? Answer. I do not know for whose benefit that was done. I presume it was for the benefit of the draughtsman. Question. Does Mr. Graham still keep that office in New York, in partnership with anybody? Answer. I do not know that he does. Question. When did that partnership cease, so far as your knowledge goes? Answer. I do not know that it has ceased; I do not know but that he is still in business with Mr. Bagley. Question. Did Mr. Graham, or any one under his supervision, make any survey of land on Long Island for private individuals? Answer. There was a survey and a small plan made a year ago, in August or September, along in the fall of the year, by Mr. Leigh, and a person employed there by the name of Wilson, who is now ab BROOKLYN NAVY YARD 187 sent. The survey and plan, I should think, might have taken three or four days to make. Question. By whonm was this done? Answer. Mr. Leigh was the principal, and Mr. Wilson assisted him. Mr. Wilson was emnployedin the yard. Question. Was Mr. Leigh employed by the government? Answer. Mr. Leigh is a draughtsman with Mr. Graham-the same one that I spoke of before. Question. For whose benefit was this work done? Answer. I do not know. Question. Was it for the government or for private individuals? Answer. It was for private individuals. Question. Who paid Mr. Leigh during the time this work was done? Answer. He was on the roll of the yard and employed by the government. Question. How long a period did it take Mr. Leigh to prepare the draughts, &c., of the Central Park? Answer. The work was in the office five or six weeks, but he was not at work on it by any means all the time. Question. State whether at that time, while this draughting was going on, any draughting was needed for the navy yard. Answer. All that I know about that is from hearsay from the master workmen. Question. Were you there at the time? Answer. Yes, sir, I was there, but I have not had much to do with the work for the last year. All I know about it is what I heard from the master workmen. Question. Do you know anything about some sills and lintels that were condemned and afterwards used by Mr. Graham? Answer. There were some sills that came from a contractor for stone that were bad and were condemned, and they were afterwards used in the store. Question. By whom were they directed to be used? Answer. By the master mason. Question. What had Mr. Graham to do with it, if anything? Answer. All that work comes under the constructing engineer; it was his business to know. Question. What became of the inspector who condemned the work? Answer. I do not know anything about that. Question. Do you know whether any materials, lumber, &c., were paid for which did not go into the yard? Answer. No, sir, I do not. Question, Do you know whether any men who were rated in any of the departments under the constructing engineer were rated for work which they never did? Answer. I know that men were rated as dock builders and masons who did not and could not do that work. Question. To what extent? Answer. There were six or seven of those men about a year ago. Question. By whom were those men appointed and selected? 188 BROOKLYN NAVY YARD. Answer. They were appointed by Mr. Graham; I do not know who selected them. Question. What became of them? Answer. They were discharged in February, 1858, by an order from the bureau here. Question. Why were they so rated and employed; what did they do? Answer. They did nothing, some of them. One was a draughtsman, and he was rated as a machinist. I do not know why they were so rated at all. Question. Is there an officer in the yard called the chief diver? Answer. There is a man with that title. He is nominally under my charge, and has been rated as such, Question. I will ask you whether he is so employed? Answer. No, sir; he never went down in the divin-bell but once. During last summer he was employed upon the barrack ground as a sort of superintendent or inspector part of the time. This winter he attends in the office. Question. What is his pay? Answer. $2 50 per day. Question. How much of the time does he work? How many days in the week, and how many hours of each day? Answer. I never saw him doing anythingintheofficeofanyaccount. While upon the barrack ground, I judge from observation, he was on the work, or supposed to be on duty there, during seven or eight hours a day, while the piles were being driven. Since that work has been stopped he has not been much employed. Question. You say that he never went down but once as a diver? Answer. He was never in the diving-bell but once. He knew nothing about the work of diving. At my suggestion he went down once, and has never been down since. He had charge ot the divingbell at that time. By Mr. Bocock: Question. Did you report the diver as being inefficient? Answer. No, sir; I did not, because he was appointed by Mr. Graham. By the Chairman: Question. What is Mr. Graham's salary? Answer. $2,500. By Mr. Groesbeck: Question. You speak of some sills as being condemned and afterwards used; was there an urgent necesSity for them when used? Was it proper that they should be used when they were used? Answer. In outside practice they would have been used. The stones were merely deficient in form and beauty. They were as strong as any, but not handsome, not true. Question. Was there any impropriety in it? Answer. The only impropriety was in the price; in paying for them as good sills when they were not first class work. It was a matter of little account. There were but few of them. CHAS. HASTINGS. BROOKLYN NAVY YARD. 189 No. 72.-WILLIAM D. KENNEDY, NEW YORK. FEBRUARY 11, 1859. WM. D. KENNEDY called and examined. By the (Chairman: Question. Where do you reside? Answer. In New York city. ue n. hat is your occupation? Answer. My occupation is that of a merchant. Question. Have you had any contract with the government to supply materials; and if so, what materials? Answer. I have had. I will preface by saying this, that I observed an attack upon me in the New York Times, and feeling myself that it was unjust, and afterwards hearing some rumors to the effect that my name has come, in connexion with navy yard matters, before this committee, I thought it best to volunteer to come on here and present myself for examination. Question. What do you know about inferior paints being furnished to the navy agent in New York? If that has been done, by whom and under what circumstances has it been done? Answer. The only thing I know about inferior paints being furnised is this: There are at all times paints being furnished which are rejected from this simple fact: the contractor is very rarely a manufacturer, but merely a dealer, and he buys his articles of the manufacturers, and they send them to the yard directly. In reference to the paint which I think is referred to here, I know it was not furnished by me; and if there has been any testimony here which says that I did furnish any inferior paint I should like to see it. Question. State now whether you furnished any paints of an inferior quality to the government? Answer. No, sir; not to my knowledge. Question. Who furnished the paint to the government during the last summer? Answer. Mr. John Wendell furnished for the Bureau of Construction, and I furnished some for the Bureau of Yards and Docks; but no paints of mine during the last fiscal year have been rejected. Question. What abuses or frauds, if any, do you know to exist in the mode of purchasing articles upon open contract for the use of the navy yard? Answer. The system of open purchase is supposed to be through the navy agent, but during the time that Mr. Saunders has been in office abuses of this character have crept in; instead of the navy agent making the purchases himself, the masters of the yard buy articles, and after they are brought there the requisitions are made out upon the navy agent. In other cases requisitions are sent to the navy agent, and when the parties whom he calls upon to furnish the article go to the navy yard with it they find that it has been supplied by other parties, under the orders of the master workmen. One of the greatest abuses of open purchase in the navy yard is that after the navy agent has bought the articles they are taken to the yard, where 190 BROOKLYN NAVY YARD they are subject to the inspection of the navy officers, who not being acquainted themselves with the articles have to depend upon the master mechanic or the man who has to use them, who states his opinion as to whether the article is good, or charged at too high a price; if he says the article is too extravagant in price, then it is rejected; but if these articles come fiom a friend of the one examining, or from a person in whom he is interested, he will be sure to take them, no matter what the quality or the price may be; if they do not come from a friend then he rejects them. The navy agent has nothing whatever to do with the inspection of the quality or the price of the goods. Nominally he is considered to be the purchasing agent, but really he is not. Question. What do you know about master workmen purchasing articles upon their own requisitions? Answer. I know that Mr King makes it an invariable practice to price every article himself. Question. Who is Mr. King? Answer. He is an engineer in the yard; I know that he is in the habit of buying things directly himself, sending the bills for payment to the navy agent, in many cases no requisition having been made. Question. I only ask you for what you know; can you state anything of your own knowledge? Answer. I am speaking now of what I know. By Mr. Ritchie: Question. How do you know that Mr. King does that? Answer. Because I have received orders from the navy agent upon a requisition, and upon going to the yard have found that the articles have been supplied. By the Chairman: Question. Are there any other cases that you know of? Answer. I cannot call to mind any other cases; I know that is the system of the yard; but I cannot particularize any cases now. Question. What portion of the time is Mr. Saunders in his office in the discharge of his duties? Anwer. Mr. Saunders has been away a good deal; he has been in Kansas, I think; he has been gone several weeks at a time. Question. Who attends to the business for him? Answer. In the early part of Mr. Saunders' term, Charles A. Secor was acting navy agent; latterly, Geo. J. Forest has attended to it. Question. Who makes the purchases for him now in his absence? Answer. The acting navy agent, I suppose. Question. From whom are the purchases made? Answer. They are made from different parties; I do not suppose he buys all the articles from one party. Question, Is there any other fact within your knowledge of any frauds being practiced upon the government in the purchase of articles for the navy yard? Answer. No, sir. By Mr. Groesbeck: Question. You have been called upon to particularize one case where the purchases have been made directly by the masters in the yard; BROOKLYN NAVY YARD. 191 you have mentioned the case of King; do you say that you know of another case? Answer. II cannot particularize any; if you give me a little time, I could name to you many cases, but I cannot think of them now. Question. You say that you. know that to be the practice or the system of the yard; how do you know that? Answer. Because I have heard it many times; I have gone over there, I have heard it from the navy agent and seen the bills come in to the navy agent, that had never been authorized by him. Question. Why can you not particularize more than one case? Answer. I only know by seeing the bills, and hearing them talking about it; it must have occurred, or they would not have said so, and these bills would not have been there. Question. You have referred to Charles A. Secor as acting nau-y agent; did he supply many of the materials purchased? Answer. He is not Mr. Secor the security; Francis Secor is the Secor & Co., who sell the goods; Charles A. Secor is his son; Zeno Secor is another son, and is security now. Question. Have you any idea of the amount of these articles which Secor & Co. supply for the yard? Answer. I have not. Question. Is it large or small? Answer. It is large. I suppose they get the great bulk of the open purchases. Question. What is the amount of open purchases? Answer. I think the navy agent (my impression is) buys about 130,000 a year. Question. Have you any opportunity of coming to a correct estimate? Answer. The only opportunity I have is to see the bills at Saunders' office. Question. Are not the open purchases more than from $30,000 to $35,000? Answer. I do not know; that is my impression. Question. You think that Secor & Co. get the larger amount of hese articles by purchase? Answer. I think they have bad it at times. Then, again, they do not receive any oiders. Once in a while a circular comes from the bureau to Mr. Saunders, directing him to let the contractors bid for the articles. By the Chairman: Question, What are the instructions from the department to the navy agent? Answer. The circular issued by Commodore Smith states that when articles are to be bought in open market the navy agent shall send circulars to the contractors of articles in that line, (not less than three of them, I think,) and then that the preference shall be given to a contractor if he proposes to furnish at lower prices than other parties. He can send out as many circulars as he thinks proper. Question. Were these instructions complied with? Answer. I should think not altogether. They have been complied 192 BROOKLYN NAVY YARD. with to a certain extent, however, for some articles, because I have received the circulars myself; but how far these instructions have been complied with I am not able to say; and it would be difficult for any other person to say, unless he is in the navy agent's office. By Mr. Bocock: Question. Have articles been bought from you in open market? Answer. Yes, sir. Question. How much? Answer. About- 1,500 worth in the course of the present fiscal year, perhaps. Question. What price have you put the articles at that you sold? Answer. The same as when I sold to merchants. Question. Are you a contractor to supply articles to the yard? Answer. Yes, sir; and when I sell these articles upon open purchase I charge the government at the same price as I would charge merchants. Question. How came the articles to be purchased of you? Answer. Because I was a contractor, and in most cases I agreed to furnish them lower than other persons, and under the circulars sent out by the agent, in pursuance of the instructions of the bureau, I would receive the preference. In some cases requisitions were sent to me without a circular. Question. From whom did you receive the requisition? Answer. From the navy agent. Question. You have spoken of an engineer making outside purchases for himself. You speak of one case only. Is it necessary in order to enable the navy agent to buy articles in open market to have a requisition signed by the commandant of the yard? Answer. Certainly. Question. How then was it that the engineer bought the articles you spoke of? Answer. He bought the article himself, and after he bought it the bill would pass through and go to the navy agent's office for approval. Question. Does it go to the commandant of the yard for approval? Answer. Yes, sir; it goes then from the commandant of the yard to the navy agent. Question. You mean to say then that the article is bought and the requisition is made out afterwards? Answer. Sometimes no requisition is made at all. By Mr. Groesbeck: Question. How does the bill, get through the commandant's office then? Answer. I suppose he would sign bills when presented to him without his knowing whether there had been a requisition made or not. By Mr. Bocock: Question. Are the bills all presented to the commandant of the yard? Answer, The bills are all signed by the commandant. Question. Before they go to the navy agent? Answer, Yes, sir; the bills are signed by the storekeeper, by the BROOKLYN NAVY YARD. 193 specting officer, and. by the commandannt. He signs bills as well as requisitions. Question. Then before the money is paid by the navy agent, the transaction has to pass under the supervision of the commandant of the yard? Answer. In the first place the requisition is made out and signed by the storekeeper and the commandant of the yard. The goods are then delivered in the yard and undergo inspection there. The bills are then made out by the storekeeper or some other person, and then they are signed by the commandant, storekeeper, and the inspecting officer. Question. Then, if these frauds are perpetrated upon the government, it must be through the neglect of the commandant, the storekeeper, and proper inspecting officer. Is that not so? Answer. I think not. I think that Commodore Breese is a capital man. I t-hink that the way frauds are committed, if fraud is committed, is this: Any time you may go through the New York navy yard you will find a lot of young men going around through the different workshops to ascertain what articles they may be in need of; after ascertaining what articles they may be in want of, they may make application to the navy agent to supply the requisitions when they were made upon him from the storekeeper of the yard. Now, all these articles, when they go into the yard, aIter they pass inspection, go to the workshop; the master workman having examined them, if there are any frauds, they are committed in that way between the man who supplies the article and the one who uses it. Question. Then, how do these parties get the signature of the commandant of the yard and the inspecting officer, to their requisitions and their bills? Answer. The requisition has been made out and sent to the navy agent; in the meantime, in some cases, the article is bought without a requisition, and the bill passes through and goes to the navy agent to be paid. Question. Then, there is a failure upon the part of the commandant of the yard? Answer. No, sir; it is a failure upon the part of the storekeeper, probably. By Mr. Groesbeck: Question. How can the commandant approve a bill when he was not sent a requisition beforehand? Answer. I cannot answer that. I do not know. To the best of my knowledge and belief, there has never been a gentleman connected with the navy service, as captain or lieutenant, who has been accused of any dishonest act, or even suspicioned of it, at least as far as I know of. I know I have never suspected any one myself; and I never have heard a suspicion breathed against a naval officer in that respect. W. D. KENNEDY. 13 D I I 4 BROOKLYN NAVY YARD. No. 49.-H. F. CLARK, HOUSE o REPRESENTATIVES. FEBRUARY 8. HORACE F. CLARK called and examined. By the Chairman: Question. What is your official position? Answer. I am representative in Congress from the 8th congressional district of the State of New York. Question. Was your attention called to the mode of dispensig and distributing patronage of the Brooklyn navy yard about the time your term of office commenced? Answer. I was elected to Congress in November, 1856. Prior to that time I knew nothing of the navy yard. About the time of the incoming of the present administration my attention was specially called to the mode in which the patronage of the navy yard was dispensed. My attention was first attracted to the subject by receiving a very great number of applications from mechanics and laborers in my district for my interference to procure for them places in the navy yard. To such an extent was this demand that it became onerous; indeed, offensive.'My house was run down. I was addresse in the street upon the subject. When in the lower part of the city on business I would be pursued. And I really could find no rest by reason of the great number of such applications. Another class of applications was from men who desired to have procured for them the situation of quarter-men in the navy yard, at $2 50 per day. Another class was from men who desired to have procured for them the situation of masters in the navy yard And between them all I found that more was required of a member of Congress than I had imagined. It appeared to me that I was expected to find places for the unemployed, and there were too many of that class in New York to render it possible that I should voluntarily undertake that business. Finding the pressure upon me so great as to interfere with my comfort I came to Washington and had an interview with Mr. Toucey, Secretary of the Navy. This was, I think, in the summer of 1857, I may also mention that, previously to thi.s time, I had received applications from individuals who had it in view that I should interest myself in obtaining jobs in the navy yard, such as " filling in," and large inducements were occasionally held out to invite participation in that kind of enterprise; but, of course, I gave no countenance to such suggestions. My visit to Mr. Toucey was for the purpose of obtaining some personal relief from this very great annoyance to which, as a member of Congress, I had been subjected. I have never visited the Brooklyn navy yard since I was a member of Congress. I was there, for the last time, in the month of May, 1853, to witness the raising of a steamer in the dry dock My acquaintance with the navy yard and its transactions is therefore derived otherwise than from personal observation. Question. Proceed, if you please, to state the substance of your interview with the Secretary of the Navy, and the result of it. Answer. I told Mr. Toucey of the state of things in New York, and BROOKLYN NAVY YARD. 195,of the pressure which was brought to bear upon members of Congress. I nquired about these masterships. I learned that there was a num-'ber of masterships in the Brooklyn navy yard in his power of appointimuent. The sum and substance of our interview was that I requested, I think I should say strongly urged, that he should appoint some person in the navy yard who might there take care of the interests of.my constituency, so far as they were entitled to representation. I'told Mr. Toucey that I would not suggest the name of any person to fill any of the mechanical departments; but I named Mr. Alexander Ward, who resided in my district, for the place of master laborer, as' it was called. Question. Before proceeding further, state whether or not that place was an existing office or place, or a new one? Answer. I am informed that it was in fact a new one. The office to which I supposed Mr. Ward was to be appointed was an office by the same title, but which had been previously filled by a person named by my colleague, Mr. Taylor. I supposed that Mr. Ward was appointed to the place that Mr. Taylor's nominee, Mr. McLaughlin, filled. I ascertained my mistake afterwards, and was informed that the office was a new one. Question. Proceed to state your conversation with the Secretary of the Navy? Answer. He consented to appoint Mr. Ward, and I persuaded Mr. Ward to accept the place. My whole object was to relieve myself from the discomfort attending the discharge of what I found was by some deemed to be a part of my congressional duty. I complained to 1 r. Toucey of the state of things in the navy yard, although I did not attempt to state specific facts touching the administration of affairs there, having never visited the yard, and not having personal knowledge of the matter. Subsequently to Mr. Ward's appointment, when accosted anywhere by a man desiring employment as a laborer in the navy yard, I would write the name of Mr. Ward upon a card and send the applicant to him. Question. Without examination into his qualifications or fitness? Answer. I do not refer to mechanics. Mr. Ward was master laborer. In respect to mechanics I managed otherwise. Mr. Herrick, who had a place in the navy yard, suggested to me that he could get mechanics employed. And I said to Mr. Herrick that if mechanics from my district could get employment through him, it would be quite acceptable to me. I think he did in some instances procure the employment in the navy yard of mechanics from my district. The great number of applications results from the fact that the impression is abroad that the pay is large and the labor light. This creates the difficulty. It was represented to me that the employment could be obtained only through political influence. The employments were deemed very desirable. I think Mr. Toucey, in making the appointment of Mr. Ward, acted upon my representations as to the personal annoyance which had resulted to me from this pursuit of place. Question. Was there no question of propriety raised between youa and Mr. Toucey as to the creating of a new office for the purpose of relieving you of this embarrassment? 196 BROOKLYN NAVY YARD. Answer. I thfink the subject of the power of making this appointment was referred to. I was unaware of the regulations of the yard in that respect, nor am I now well informed as to the authority by which these offices are created in the yard; but I understood that there was no defect of power. I will not attempt to give the language of any person. I had interviews with Mr. Welsh, with Commodore Smith of the Bureau of Docks and Yards, and with Mr. Toucey. But I did not understand that there was any defect of power to make the appointment. Question. What check is there practically to the appointment of any number of offices, without limit? Answer. I know of none, sir, but the check resulting from a limited appropriation. Question. How many men had Mr. Ward under him? Did you learn from him? Answer. I do not think that I ever made the inquiry. A complaint came to me very soon after Mr. Ward's appointment that I was in the habit of sending or recommending to him poor men without regard to their residence in the city, and without reference to their politics. I never, of course, take pains to ask a poor man, seeking employment, his opinions upon the political questions of the day and finding that I was getting into difficulty, I left the matter entirely to Mr. Ward. I afterwards learned from him that the number of men employed was very much restricted, and that Mr. Taylor had the great mass of laborers in the navy yard. At one period I ascertained the state of things at the Brooklyn navy yard, and it was the following: Out of 1,200 to 1,500 men employed there were eleven from my district, which is one of the most populous districts of New York. Of some forty or fifty quarter-men alleged to be employed there at $2 50 per day, not one was from my district. Out of eighty carpenters at work, not one was from my district. I made a representation of these facts to Mr. Toucey, and complained of the inequality and injustice with which this patronage was distributed, assuming that the principle of distribution was a just one. That much was assumed. Question. Did this distribution create strife and contention among members of Congress failing to get their proportion of patronage? Answer. It created dissatisfaction. This whole system tends, in the first place, to the demoralization of the laboring classes, to their serious detriment, and, in my judgment, to the degradation, personal and political, of members of Congress. Question. What is the situation of your congressional district relative to the navy yard? Answer. My district embraces the city of New York north of the south side of 14th street, excepting the portion on the North river bounded by 6th Avenue and 40th street. The navy yard is on the other side of the East river, below my district. Question. You are separated by the river from the navy yard? Answer. Yes, sir; the navy yard is in the bend of the river, opposite Corlear's Hook. The navy yard is probably directly opposite MIr. Maclay's district. There are a great many mechanics and laborers living in my district. BROOKLYN NAVY YARD. 197 Question. Do you know the rules regulating the employment of mechanics and laborers in the Brooklyn navy yard further than you have already stated? Answer. I have no personal knowledge; but I have ascertained the rules firom individuals whom I have sent there, or permitted to go there in my name to seek employment. The foundation of the employment I should consider to be political recommendation, and without much regard, I should think, to the efficiency of the service. Question. Or t~he fitness of the applicant? Answer. I should think so. Question. You made some allusion a moment ago to jobs, contracts for fillingo in; to vwhom do you refer? Answer. I will illustrate what I mean. A gentleman walked into my office in the summer of 1857, and wished me to go to Washington to endeavor to induce the Secretary of the Navy to give him a contract for filling in dirt somewhere in the Brooklyn navy yard. My reply was that it was not my business. It was suggested to me that I could make a thousand dollars in doing it. My reply was that I would not go. That illustrates the kind of applications which come to members of Congress, arising from the system existing in the navy yard. Question. Do you know who had the contract for filling in the navy yard? Answer. I do not, sir, I never made the inquiry. The whole subject was one so utterly disgusting that I never prosecuted any inquiry in relation to the matter. Question. Are you acquainted with the grounds around the navy yard? Answer. I have some general knowledge of the locality. Question. Is it worth anything to fill in a given place in the Brooklyn navy yard, or is it considered a privilege to dump the earth there, so that that would compensate for the filling in? Answer. I can only speak on that subject from the information of others. It varies in different localities. For instance, in one particular place a party excavating would have to pay for the privilege of depositing the earth; in another he might be paid for its deposit. As to the state of things at the Brooklyn navy yard, I can only speak from the information of others. Question. Have you any information now, by way of letters, correspondence, or documents, throwing any light upon the giving ou of that contract for filling in? Answer. I never followed the matter up. By the Chairman: Question. Did you write me a letter in regard to the navy yard matters? Answer. I did. Question. What induced you to address me that letter?.Answer. A sense of public duty; my interest in the community in which I live induced me to place the suggestions contained in that letter in the way of some member of the Committee on Naval Affairs, 198 BROOKLYN NAVY YARD. in the hope that it might lead to inquiry, and to the correction of existing abuses. Question. What is the tendency and effect of this mode of distriluting the patronage, and conducting the affairs and management of the navy yard in Brooklyn? Answer. Most destructive all around; demoralizing to the class of people who seek the places; demoralizing to the general politics of the city, and detrimental to the public service. Question. State whether it is commonly known that the chief civil officers of the navy yard at Brooklyn, habitually neglect their duty? Answer. I think I do no injustice to that establishment by saying that it is generally regarded in New York as a sort of political lazar house. I think that opinion would be corroborated by every gentleman acquainted with the subject. Question. And so, by almost every official employed in the yard, would it not? Answer. I do not know to what extent they advise you of their opinions, but I regard it as a scourge to the community in which it it is located. Question. Are you acquainted with Mr. George N. Saunders, the navy agent, in New York? Answer. I know him. Question. Where does he spend the most of his time? Answer. I so rarely meet with him, that I could hardly answer that question. Question. Do you know Mr. C. A. Secor? Answer. I know of Mr. Secor; I can only speak of him fron hib general reputation. He is, I believe, a very respectable man, and I think, a man of property. Question. Who is Mr. D. B. Allen? Answer. He resides in Richmond county, New York; is connected with the Allaire Works of New York city, a large establishment engaged in the manufacture of steam engines and boilers. Mr. Allen is a brother-in-law of mine. Question. Is he a man of character and of influence? Answer. He is a man of very high character and of no inconsiderable influence. There is one particular fact which, perhaps, I ought to state. Mr. Alexander Ward, who, at my request, had been appointed to the position of master laborer in the Brooklyn navy yard, resigned his place, I should think some time about the month of May, 1858, after the Lecompton, Kansas, question had been disposed of by Congress. I applied to Mr. Toucey to permit me to name some person as his successor. I was induced to make this application from a remark made to me by my colleague, Hon. John Kelly, who represented to me that he had had an interview with Mr. Toucey, which justified him in making the suggestion. I called upon Mr. Toucey, and made the application or suggestion that I should still have some person there to relieve me from. the great pressure upon me resulting from the application of persons to me to get them employment. Mr. Toucey did not comply with my request, but informed me that the place would be given to a person whose name I have this moment lost. He BROOKLYN NAVY YARD. 129 s a olitical riend of Mr. John Cochrane. I ought in justice, to say that if there be fault in the matter of Mr. Ward's appointment, I am equally at fault with Mr. Toucey. I think that he yielded to my complaints of the unfair distribution of this patronage. Question. Is there any other fact that you think material to this inquiry? Answer. I prefer answering to the inquiries of the members of the committee. By Mr. Bocock: Question. In your letter addressed to Mr. Sherman you state: " I feel confident that the bill (naval appropriation bill) as reported contains appropriations, some of which are altogether unnecessary, and several of which lead to profligate squandering of the public money;" to which items do you allude? Answer. I allude to some items of appropriation estimated. for "filling in the new purchase. ". That matter came before Congress at the last session, and I then derived the impression that it was unnecessary. My impression was derived from a statement made to me by my colleague, Mr. Taylor. To such an extent did he deem it unnecessary that at one time he went, as I am informed, before the Committee of Ways and Means and suggested to them to leave it out of the bill. Subsequently, however, I believe he changed his views in that respect. I still acted, however, upon the impression his statement first made upon my mind. I observe that in the present bill there is an appropriation for this very matter. I had no doubt that Mr. Taylor's first statement to me was correct; that there was no actual necessity for that "filling in." And there are several other matters which I think are unnecessary. As the Brooklyn navy yard lies upon the water there is hardly a limit to the " filling in" that can be carried on there. Question. Do you know of the uses to which that "I filling in " was to be applied, the purpose for which the land thus prepared was to be used? Answer. It was, I think, for some purpose connected with the navy yard. " For filling in new purchase" is the item to which I refer. I have no personal knowledge of that new purchase. I derived all my information from Mr. Taylor and others of my colleagues who have spoken of it. Question. Your belief then was founded upon information derived from Mr. Taylor? Answer. Yes, sir; Mr. Taylor represented the district contiguous to the navy yard, and had, as I supposed, superior knowledge of the necessities of the yard to any one else. If I went astray upon the subject, he first led me astray. I will also say that I have reason to believe that in almost every department of that yard the laborers are over-crowded. I think a hundred witnesses could be produced who would not hesitate to express that opinion. Question. I want to know your views upon this subject of items of appropriation for the navy. You say that there are several items in the naval appropriation bill which will "lead to profligate squandering of the public money." Now state all you know about the expend 200 BROOKLYN NAVY YARD. ing of the money and the management of the navy yard, so as to explain to what you had reference in that paragraph of the letter. Answer. I had reference to the information which I had received as to the new structures going on there, among other things th launching ways. I have never seen them, and of course I cannot speak as to them from personal observation; but from information which I received from men at work there I came to the conclusion which led me to express myself perhaps thus strongly in my letter to the chairman of your committee. Question. Then you do not know any thing about that matter of your own knowledge? Answer. I have stated that I have not been in the navy yard since 1853. The extent of my hearsay information is of course considera ble, but-I do not feel at liberty to introduce it here. I received certain information in relation to these launching ways from some of the masters employed in the Brooklyn navy yard. Upon reference to Commander Smith's report from the Bureau of Yards and Docks, I perceive that he says in relation to these launching ways that the work upon them has not been judiciously conducted, and he also says that the work is not satisfactory upon the quay walls. Question. Tell me, if you have anyknowledge of the fact, do some of those master workmen make sale of the privilege of working in the yard," as you state in your letter to Mr. Sherman? Have you any knowledge of your own on that point? Answer. Of course I have never been present at any transactions of that kind; my knowledge upon the subject is derived from the statements of others; the facts which induced me to make that statement in my letter were derived from poor men who represented to me that they had been levied upon there; I might have qualified my statement somewhat perhaps; I tock pains to satisfy myself that such practices did exist to some extent; they assumed various forms; for instance the form of presents; the form of contributions to pay members of Congress to come to Washington for specific purposes; but having never been a participant in any such transactions, I cannot testify myself to the circumstances. Question. Do you know of your own knowledge of any abuse of men answering to their names at roll-call, and afterwards absenting themselves from duty, and cheating the government by so doing? I ask you if you know of any such thing of your own knowledge, because mere hearsay testimony we do not wish to put upon record; but all that you know, all of your actual knowledge in relation to the subject we wish to have? Answer. I have no actual personal knowledge upon the subject which would amount to testimony; and, indeed, it is not improbable that facts have been discolored in their representation to me. Question. What, in your opinion, is the great evil in the management of that yard? Answer. That it is conducted as a political machine. Question. Through what instrumentality has it become a political machine? what part of the management of the yard makes it a political machine? So far as your judgment goes, I mean. BROOKLYN NAVY YARD 201 Answer. The appointment of politicians pure, in the civil branch of the yard. Question. Do you know anything about Mr. Delano, the naval constructor in the Brooklyn navy yard? Answer. I am told that he is a man of high standing and character; I have -never seen him; I do not refer to him, however, in what I have said; I will illustrate what I mean; a building or a ship is to be painted; one hundred men can be put on that work when half the number would do as well; a private individual would, perhaps, employ only ten or twenty men where the government might employ one hundred. Question. IDo you know Mr. Graham, the constructing engineer? Answer. I know Mr. Graham. Question. Can you speak of his character and qualities as an efficient business man? Answer. I have never been in the navy yard since 1853, and have no particular knowledge of Mr. Graham's efficiency. I think that I united in recommending him for the position. I will say, that I have reflected a great deal upon this subject, in order to devise some legislation that may reach these abuses, but I have not been able to make up my mind what it should be. Question. Who selects the mechanics under the master workmen in the yard? Answer. I Nwill answer that questiou by producing this letter, which I have received from Mr. Toucey. [See Appendix to this deposition.] Question. What is the effect of that regulation? Answer. It is manifest that one politician will employ another, and he is as likely to employ a politician as to employ a mechanic. The government needs mechanics, but members of Congress need politicians. Question. Did you not insist upon Mr. Ward having the selection of the men to be employed under him? Answer. Mr. Ward was not a mechanic, but a master laborer. I stated to Mr. Toucey that I was unacquainted with the mechanical capacity of the great number of men who came to me asking for employment, and I asked the appointment of a master laborer, as the men employed under him would be required to understand only the arts of humble labor. Question. Did you write a letter to Mr. Toucey asking that Mr. Ward should have the appointment of the men employed under him? Answer. I think I did not, but will not be positive about it. Members would apply to each other to sign some paper or other, and I may have attached my signature to such a letter. I will not speak with confidence, but I have no recollection of it. Question. Is it your opinion that government work could be done without the use of navy yards? Answer. My opinion is that the great part of the government work could be done without the use of the navy yards, and at a much!ess cost. For instance: if the government wants a ship built, it could have one built as well out of the navy yard as in it, and probably at 202 BROOKLYN NAVY YARD. one-third less than the price it now costs. There are some good things about a navy yard; in the Brooklyn navy yard there is a good dock, Question. Do they keep in the private yards a sufficient amount of timber, live oak, &c., for the work the government would be likely to want done? Answer. Well, I can say to that, fhe Emperor of ussia wishing to have a frigate of the first class built, had it constructed in New York, in the private yard of one of our ship builders. Question. But, then, she does not have so much work done as our government does? Answer. I have to say that my chief objection to the navy yard, is the demoralizing influence upon the people, and, I think, that injury is not compensated by any advantage that may result from the maintenance of these navy yards. I think that the profligate squandering of the public money in a community, tends to the destruction of popular liberty. Question. What can be built out of a navy yard, that is now built in it? Answer. I have no sort of doubt but that steam engines can be built out of a navy yard, better than in it; and I have no doubt that the hull of a ship can be built as well out, as in, and I see no more reason why the government should have establishments specially to build men-of-war, than to have hatters' shops, or clothing shops, or shops for the making of boots and shoes. I think the business of the government is rather to employ, and fight ships, and not to build them. Question. Have you any knowledge of the manner in which work is done for the government by contract? Answer. I have no personal knowledge. Question. Do you know of extensive frauds having been perpetrated upon the government, in the way of furnishing it with bad materials, &c.? Answer. I have been informed that frauds are practiced upon the government; and it is my impression that such is the usage. I believe so at all events. Question. I want to know from you if, in your judgment, all the parties in New York make appointments to places there dependent upon political considerations? Answer. I think it is so. I think it is one of the evils of the day. I never dreamed, until after I was elected to Congress, that politics was resorted to as a means of livelihood. It is undeniable that men resort to politics for a livelihood. Question. That is what you call politicians by trade? Answer. Yes, sir, they follow it for a living. Question. When you went to the Secretary of the Navy in relation to the appointment of Mr. Ward, did you discuss the propriety of making a new office, either with Mr. Welsh or with the Secretary? Answer. No, sir, I do not think I did. I applied for a place for him. as master laborer, and understood that I received it. I never knew, until afterwards, when Mr. Ward informed me in New York that he had not got the place I contemplated. BROOKLYN NAVY YARD. 203 Question. You spealk of suggestions made between Mr. Toucey and yourself as to the creating of a new office? Answer. I asked about a number of things. I was informed that one of my colleagues had twenty-six persons in the navy yard distributing patronage. I mentioned to Mr. Toucey the circumstance, and inquired if there was any limit. I suggested that the best way was to take this all away from members of Congress, and relieve us from this pressure, which, in my judgment, was degrading to members of Congress, and would render it impossible for respectable men to hold the position. I made inquiry about this in consequence of the representation that Mr. Taylor had these twenty-six men in the yard, and that other members of Congress had representatives there. I did not look into the law, nor did I know until some month or two afterwards that the office of Mr. Ward was not invested with large patronage. Question. Can you state the different duties which Mr. Ward had to perform-the duties of master laborer? Answer. I have no personal knowledge upon the subject. Question. Are you sure that Mr. Ward was not master laborer? Answer. I am sure he was not in the position he expected to be in. I was told at the Navy Department that Mr. Ward would have the employment of laborers. Laborers came to me saying that Mr. Ward could not employ them; that Mr. Taylor's man had the employment of laborers. I do not know now what it means; it is all complicated. It seems that there were two master laborers. Question. Do you know how many Mr. Ward had under him? Answer. I never instituted the inquiry, sir. I had no idea. I do not think I ever made particular recommendations to Mr. Ward in a dozen cases. If a laboring man called upon me, I would say go over to the navy yard and inquire for Mr. Ward. That was all. I would not take his name, or make any particular inquiry. Question. What is the duty of master laborer? Is it not to look after the subordinate laborers, and see that they discharge their duties properly? Answer. The legitimate duties of a master of mechanical employments is to superintend labor, not politics. Question. And the legitimate duty of a master laborer is to superintend the work of laborers under him, and see that they work faithfully? Answer. I should think so. Mr. Ward was entirely competent to that duty. Question. How many men can a man properly superintend in tha way? Answer. That would depend upon the kind of work to be superintended. I should think that a man could properly superintend 20 masons upon a building.'In other employments, I should think that a man might properly superintend a gang of men, 50, or 60, or 70, according to the employment and the kind of labor. Question. If Mr. Ward -had 150 or 200 men under him, could he su~perintend them properly? Was there a sufficient amount of business to require a man to superintend them? 204 BROOKLYN NAVY YARD. Answer. Yes, sir; I have no reason to doub that Mr. Ward discharged properly the duties intrusted to him. By Mr. Ritchie: Question. You speak of doing government work, building ships, &c., by contract; is not that contract system just as much liable to abuse by political influences as any other sort of work? Answer. It may be so, but it does not render necessary the permanent establishment of a pest house in a community. Question. Would it not render necessary its establishment sufficient to do the labor of the government, at least in one way or other? Answer. The labor of the government is done by the same men, the same mechanics and laborers that perform labor in the departments of civil life, and it is done by the same rules, with the same tools, &c. By Mr. Bocock: Question. Do you know anything about an arrangement between the Secretary of the Navy and members from New York city to give the appointment of a master laborer to each district? Did you have anything to do with such an arrangement? Answer. This subject was a matter of frequent conversation mong members of Congress when we met. If I mistake not Mr Taylor claimed the distribution of the patronage of the navy yard as his prerogative. I was rather disposed, at one time, to favor his view, because my hope was that the Secretary of the Navy would take it all away, and relieve us of these place-hunters; but that was not consented to by all of us. I think that several of us called upon Mr. Toucey upon the subject. Mr. Searing also complained that he had not his share of the patronage. I called, I think with Mr. Searing, upon the Secretary of the Navy, and expressed the opinion that he was as much entitled to an appointment as I was. I thought so. His district is upon Long Island, and, I think, abuts upon the navy yard. After my vote upon the Lecompton question it was alleged that I was out of the party and out of favor. Some of my colleagues met to hold an inquest upon my political remains. This mastership of mine was to be parcelled out among the faithful. A meeting was called at the room of Mr. Ward, my colleague. Mr. Kelly was invited to attend, but did not go. Mr. Sickles and Mr. Maclay told me that they did not go. Mr. Cochrane did not go. I asked Mr. Toucey if he sanctioned this proceeding; this was after Mr. Ward's resignation. He said to me that he had been informed that my colleagues had met and agreed upon the disposition of the place to Mr. Cochrane. I inquired of my colleagues what the fact was. Mr. Cochrane said that he protested against my exclusion. Mr. Ward said that he did not advocate it. Mr. Kelly said that he protested against it. Mr. Sickles and Mr. Maclay repudiated it. Question. But before this vote upon the Kansas question, what was the arrangement between the members of Congress and the Secretary of the Navy? Was it that each member should have the appoinment of one master in the New York navy yard? Answer. I do not remember that I was ever present when any arrangement of that kind was made; but Mr. Toucey informed me, upon the occasion to which I refer, that an arrangement had been BROOKLYN NAVY YARD. 205 made by mly couInaguu by which the place which Mr. Ward held was appropriated to Mr. Cochrane. I think that some reformation in this matter is necessary for the relief of members of Congress. Question. And for the best interests of the government? Answer. Yes, sir; most certainly. I believe that if you degrade the representative you cannot expect that kind of legislation which the public interests require; and I think this whole matter of navy yard and official patronage is calculated to degrade the representative, and to destroy his character and efficiency. HORACE F. CLARK. No. 62. —-GEBORGEB TAYLOR, HOUSE OF REPRESENTATIVES. FEBRUARY 9, 1859. GEORGE TAYLOR called and examined. By Mr. Bocock: Question. Was there any difference between you and Commodore Kearny a short time before his removal from the Brooklyn navy yard? Answer. No, sir. Question. Was there any interview between you two marked with any peculiarity, in which there was any feeling manifested? If there was, give some account of it. Answer. I will answer that question by stating that there was an interview between us, but it was not marked by any peculiarity further than a disposition on his part to accommodate me at the particular time with an interview. The circumstances which brought this interview about will explain itself. The master brick mason notified me the day before this interview that he was going to take on some 28 or 30 laboring hands, and he would divide the hands between the different congressional districts. I asked of Mr. Sturgis, the master brick mason, how many he could give to my district, and he said that he could give seven or eight. I then inquired at what time he would want their names. He said he would want theum the next day. On the following day, as I was necessarily in the yard, I looked for Mr. Sturgis, and learned that he had left the yard and had gone to the marine barracks, or where they were laying or preparing for a foundation; in seeing different parties, I was detained necessarily somewhat later than usual. About half an hour before I left the yard, Mr. Sturgis returned and informed me that a list had been made out and sent in to the commandant's office for approval. I inquired of him if he had put on any laboring men from my district. He remarked that he did not know; that the engineer, Mr. Graham, had made up the list. I then told him that that was not keeping his promise or faith with me. He said he could not avoid that; the list had been made up and he had signed it, and it had been sent in to the commandant's office by Mr. Graham, and he supposed it was approved. I told him that if it had been approved I should address myself to the department by a complaint against him for not observing the orders, and if it had not been approved I would try to prevent its approval in 206 BROOKLYN NAVY YARD. the commandant's office. I immediately proceeded to Captain Rootes office, and found that he was not there, but had gone to the commodore's office I found him there, and asked him whether he had approved a list of laborers sent in by Mr. Graham. He told me that he had not, but he presumed that it had been sent to Commodore Kearny. I left him, and then went up to the Commodore's house, and found him at dinner. I told the messenger, or his servant, that I desired to see the Commodore for a moment, to ask him a uestion; I would thank him to let me see him for a moment, as I was compelled to leave the yard. The Commodore very kindly left the table and came out into the front room. I asked whether he had signed that list. He replied that he had. I remarked, "I am sorry for it, Commodore, for it is not right." I thanked him for his courtesy in leaving the table, and then I left. I believe that was the conversation that took place during the interview, Question. Did you say anything about appealing to the department upon the subject? Answer. I may have said to him, after I had ascertained that he had approved it I will not be certain about that-that I would be compelled to apply to the department for a correction, as the list was out of his hands. But the application to the department was not intended to apply to the Commodore in any way. Question. Did you make any complaint to the department upon the subject? Answer. No, sir. Question. Did you have any agency in the removal of Commodore Kearny or Captain Rootes from the Brooklyn navy yard? Answer. I had not, and I was not aware of their removal, and had no intimation that there was an intention to remove them, and I think it was the second day after they had been detached that I learned the fact. Question. Have you made no complaint to the department in relation to Commodore Kearny and Captain Rootes? Answer. None whatever, sir. After I left Commodore Kearny's house, I passed down through the lyceum, and at the outer door, or near the entrance, I met Mr. Graham, the constructing engineer, and complained to him of his action in the matter. He said that he would make it right, that he was going to take some more men on the same work the next day, and he would take the number on that Mr. Sturgis promised me. I said, that is all I have to ask, The next day he did take on more men-1 do not know how many, but I think eight from my district. That obviated the necessity of my making any complaint. Question. In stating that you would be obliged to appeal to the department, had you any allusion to removing Commodore Kearny or Captain Rootes? Answer. No, sir, not at all. On the contrary, I felt somewhat mortified that I had troubled Commodore Kearny while he was at the dinner table, and I appreciated his kindness in leaving it to give me the interview I desired. I have never addressed a line or a word to the Secretary of the Navy, or to any party connected with the department, suggesting or inviting the removal of either Commodore BROOKLYN NAVY YARD. 20' Kearny or Captain Rootes. On the contrary, I have repeatedly stated to Mr. Toucey that Captain Rootes was one of the most efficient, hard-working, industrious, and faithful men we have ever had in that navy yard, and so long as the department continued Captain Rootes in that yard, the Secretary could give Commodore Kearny some indulgences, which his age and infirmities seemed to require, because the interests of the yard would be secure in the hands of Captain Rootes. Question. Do you know upon what grounds Commodore Kearny and Captain Rootes were detached from that yard? Answer. I have heard some intimations in the department. Question. From the Secretary of the Navy himself? Answer. Yes, sir. Question. What reasons did the Secretary give? Answer. Secretary Toucey intimated to me-he did not distinctly state it-that he bad been compelled to detach Commodore Kearny on account of his age, his infirmities, and his inattention to duty, and his frequent absences from the yard. He gave no reason for detaching Captain Rootes further than it seemed proper to detach both when he was detaching one of them. Question, Did he say that the detachment of Captain Rootes at that time, together with Commodore Kearny, would make it less hurtful to the feelings of Commodore Kearny? Answer. I understood him to intimate that it was more for the purpose of smoothing over the matter and making it acceptable to Commodore Kearny than anything else; that he had no objection to the manner in which Captain Rootes had discharged his duty; on the contrary, he esteemed him as a most faithful and efficient officer. Question. Do you know anything about the business capacities of the successors of Commodore Kearny and Captain Rootes in the Brooklyn navy yard? Answer. I do not know. I am not personally acquainted with Captain Foote, nor have I ever seen him to recognize him. I have had one interview with Commodore Breese, and only one. I was much pleased with the apparent efficiency and intelligence of Commodore Breese; but I know nothing of the character of those officers, and very little of their personal history. I had no acquaintance with them, not even the slightest, before their appointment, nor did I know that they were appointed until some days after they were assigned to that yard. Question. Are you acquainted with Alexander Ward? Answer. I have a very slight acquaintance with Mr. Ward. Question. Do you know anything about the removal of Mr. Ward from the Brooklyn navy yard? Answer. Mr. Ward was not removed; he resigned. Question. From whose district was the successor of Mr. Ward selected? Answer. From Mr. Cochrane's district. Question. Did you have anything to do with the arrangement as to whose district his successor should come from? Answer. In filling up some appointments of his at that time, the Secretary suggested to two or thr-ee members, I think, in my presence, 208 BROOKLYN NAVY YARD. to myself I know, that he would like very much for us to agree among ourselves as to the parties to be appointed, selecting the best men, and he would try to carry out our agreement as far as he could do so consistently with his duty to the service. I wrote on a slip of paper during the sitting of Congress last winter the appointments which were then vacant and to be filled, and suggested names from my own district for certain of those appointments. I then carried it, I think, first to Mr. Cochrane, and requested him to carry it to Mr. Kelly. It was then carried from Mr. Kelly to Mr. Maclay and General Ward. We suggested different names, and then finally yielded various points until we came to an agreement, or very nearly to an agreement. The only thing in which there was not an apparent agreement was the contest for the master laborer, which seemed to be between General Ward and Mr. Cochrane. Before the appointments were made, however, Mr. Maclay, myself, and I think some other member whose name I do not now recollect, met at the office of the Secretary and had a conversation there, and certain names seemed to be agreed upon, or rather not the names so much as that certain appointments were to go to certain districts. In the contest between Mr. Cochraneand General Ward for the master laborer, I remarked it was sai that the party whom Mr. Cochrane recommended had been dismissed from the custom-house through some feeling against him, and that it was not possible for Mr. Cochrane to take care of him in any other way; and for this reason, in order to gratify and accommodate Mr. Cochrane, I united with others to give this appointment to his district Question. How many of the other members agreed that Mr. Cochrane's man should have the appointment? Answer. I do not know that there was any final agreement about it. I think the gentlemen present fell into that general arrangement. I think there were three of us present, and that appeared to be the arrangement, but there was no distinct agreement. I am not certain whether General Ward afterwards pressed the appointment of the party he first suggested. I never heard anything more about it. Question. The inference was naturally drawn by the Secretary that most of the New York members acquiesced in these appointments.? Answer. I presume that was the inference. Question. Was it a reasonable inference from the circumstances? Answer. Yes, sir; from what had been said, and the list of names that I wrote down. Question. Are you acquainted with Mr. Ross? Answer. I am. Question. What does he hold now in the navy yard? Answer. I believe he is master carpenter now. Question. Does he hold any office under the city authorities of Brooklyn? Answer. I think when he was appointed he was assessor of a ward. Question. Has he held that office since his appointment in the navy yard? Answer. He closed up the last year's business of that office since his appointment. He was appointed in the navy yard last summer,!nd I think it required some attention after his appointmmenit. My BROOKLYN NAVY YARD. 209 recollection is that he was occupied about a week afterwards in disposinog of his business. His term expired in the spring, or at least his duties did. I do not recollect whether his term expired. I think he was appointed in the navy yard the latter part of May or the first part of June. My impression is that his duties as assessor expired the first of July. The whole of his duty as assessor had been performed when he received his appointment, except simply attending the board of assessors to hear any applications that might be made for correction. The assessment is generally made before the period of his appointment, and that constitutes the great portion of the labors of the assessors. Question. Besides what you have mentioned has he discharged any of the duties of assessor since his appointment in the navy yard? Answer. I think not. But this I can only say from my general knowledge of what is required from his office of assessor. I recollect very distinctly, however, that Mr. Ross was called upon to attend the board of assessors before the close of his official duties, and after his appointment in the navy yard, and that he got permission from the officer of the yard to for leave two or three days for that purpose. I do not recollect the exact time. Question. Has he been called upon to discharge any of the duties of assessor since the expiration of his term? Answer. I think not; but I do not know. Do not understand me that this was the expiration of his term, but that it was the expiration of his duties for that year. His duties as assessor closed at this time, though he remained in the office until his successor was elected? Question. When was the successor elected? Answer. I do not know. Since my election to Congress, and while I have been engaged in the discharge of my duties here, the charter of the city of Brooklyn has been changed, and the election of city officers now comes off in the spring instead of in the fall as before. I am not certain whether the office of assessor is regarded as one of the city officers or not. My impression is that it is a county office. But of this I am entirely ignorant, and I do not know what change has been made. Question. Are you certain that his term as assessor has yet expired? Answer. I could not state positively that it has; he may have continued for another year, but of this I am ignorant. Question. When are the assessments made; at what period of the year? Answer. During the winter and spring, I think; and the assessment-roll has generally been closed in June or July; generally in July. Question. How often are the assessors elected? Answer. I do not know what provision has been made in the recent change in the city charter, whether to elect them annually or biennially; and I am not able to state distinctly whether they were elected annually or biennially before that change. I never gave any attention to this matter. 14 ) 210 BROOKLYN NAVY YARD, By Mr. Groesbeck; Question. Are you certain that they were not elected for more than two years? Answer. I am not certain whether they were previously elected for one or two years. It has always been considered a very small office. We have generally selected one substantial citizen; those who knew something about real estate, property, buildings, &c. They make an assessment; it takes each one of them a few weeks to go through his district, and make their reports to the full board. The rolls then are made public, and the citizens are notified, appear, and apply for a correction of the rolls when they think it necessary. In wards, such as the one Mr. Ross assessed, a large portion of the property would be taken from the books of the assessor of the previous year unless some new buildings have been put up, or something else had been done to change the value of the property. By Mr. Ritchie: Question. Was this assessor known as an active politician, or not? Answer. Mr. Ross never has been a very active politician. He has been a builder by trade, a carpenter and builder; and is known among our respectable citizens as one of our most worthy and respectable men. I do not think he has been an active politician; if so, I am ignorant of it. By Mr. Groesbeck: Question. After the assessors meet in a board of equalization, as it is called with us, to hear appeals and equalize your valuations, after that board rises, can that assessor, by any possibility, perform any other official duty during that year? Answer. That closes his labors for the year. I know of no other duties he can perform. By Mr. Bocock: Question. Upon whose recommendation was he appointed in the navy yard? Answer. Upon mine. Question. Was anything said to the Secretary about his being an assessor at the time? Answer. No, sir; when I recommended him I was not aware of that fact myself. I did not know it until some complaints were made by politicians in Brooklyn that he was appointed in the navy yard, while he happened to hold the office of assessor. That was the fi st knowledge I had of his being an assessor, as I very seldom pay amy attention to such matters. Question. Do you know anything about the manner in which he has discharged his duties in the navy yard? Answer. I do not. Question. Have you heard any complaints in regard to him? Answer. No, sir; only from politicians who wanted him to employ mechanics whom he considered unfit for employment; they have com-n plained that he would not accommodate them, and he has given this as the reason. Question. Now, about another matter. There was an item in the appropriation bill of last year, and also of this year, for " filling in BROOKLYN NAVY YARD. 211. new purchase" in t~he Brooklyn navy yard. Is that a matter of utility for the navy yard, or not? Answer. It appears to be necessary, inasmuch as it has been decided to build the marine barracks there, and it has been thought that this gmarsh would be injurious to the marines. The city has repeatedly complained of this marsh as a nuisance. By the Chairman: Question. Is there not a great surplusage of earth in that neighborhood, and would not the privilege of dumping that earth there pay for the filling in of the purchase? Answer. No, sir; II think there is not a great surplusage of earth in that vicinity. The earth all over our city is held at a high price by those who happen to own it. Question. Does not the city open streets in that neighborhood, thus involving the necessity of removing and damping the earth somewhere? Answer. I think there was a street opened near the city hospital, which created the necessity for removing quite a quantity of earth. I understood that dirt was offered at a low price to the contractors to fill in this new purchase, but it is my impression that it has been taken up to some extent by speculators to fill in low lots and for other purposes. Every year this filling in is postponed, it will cost the government more to do it on account of the scarcity of earth for that purpose. Question. Is this filling in necessary to prevent this ground from being miasmatic? Answer. The lot now occupied by the marine barracks has been flled in. It was formerly all below the level of the street. I think the highest part of it must have been from 6 to 8 and 10 feet below the level of the street When the street was made it required a very heavy filling in, and on the west of the street was the plat which the government has now filled in. The plat is now called the "new pu rchase." Question. Does the government own the whole of the low lands there? Answer. I believe all in the navy yard and about the marine hos. pital. Question. Are there any other low lands in the neighborhood belonging to private parties? Answer. I believe not; although there may be. By Mr. Ritchie: Question. You spoke awhile since of your "necessarily being in the navy yard." What was the necessity of your being in the navy yard? Answer. I went there to see my friends, secure my election, and give you the benefit of my labor here. Question. Were you frequently in the navy yard? Answer. At that particular time I was there 2 or 3 times a week. By Mr. Bocock: Question. Is it necessary to pay money to (ill in that location for the marine barracks, or could they not get persons who are excavat ing 212 BROOKLYN NAVY YARD; in the city, opening streets in the neighborhood, or something of the kind, to throw their dirt there without pay? Answer. I think not; I think it would be necessary to pay for the dirt. Question. Were you at one time of the opinion that there was fraud in that matter? Answer. Yes, sir; I thought that great frauds had been committed upon the government during the latter part of Mr. Pierce's administration, in the filling of the new purchase, and I am still of that opinion. Question. Were you not of the opinion at one time that this filling in might be discontinued consistently with the interests of the government? Answer. No, sir; I do not think that I ever was of that opinion. I was of the opinion that further checks were necessary in execution of that work, and that unless further checks could be applied, it was an absolute duty of the government to discontinue the appropriation. I believed that not more than one-quarter, certainly not more than half of the work that was paid for was ever done. Question. How has it been more recently in relation to that subject? Has there been any changes in the manner of executing the work? Answer. An entire change. During the latter part of the last administration, I believe they adopted what was called the ticket system in doing that work. They had tickets, one of which was given for each load of dirt deposited, and then their accounts were made up from those tickets; the fraud was practiced upon the government by parties who obtained access to the engineer's office, either legitimately or illegitimately, and stole these tickets. I have been informed by parties there that they had seen large quantities of these tickets go out when no service was performed for them; and in this way fraud appeared to be committed upon the government. Upon the appointment of Mr. Graham, the present engineer, my recollection is that he did away with this ticket system altogether, and placed parties on the ground to superintend the delivery of the dirt and to take a memorandum of the number of loads furnished or of square yards filled in, as the contract required, and to report to him. But of the alleged fraud I had only such knowledge and information as I had obtained from parties connected with it, or parties about the yard. The facts, and my decided conviction that frauds had been committed upon the government, induced me to speak, in a conversation which I had with Governor Letcher of the House of Representatives, upon that subject. I said that I understood that these frauds had been committed, and that something ought to be done to stop them; and.I think that I mentioned in that conversation the abstraction of these tickets; afterwards Governor J.etcher called me up to him, while Hon. H. Winter Davis, of Maryland, was present, and asked me about these things, and I reported the same thing to them. It appears that that statement induced those gentlemen to go into the Commiteee of Ways and Means and oppose the appropriation for that filling in. I saw them and corrected, as far as I could, any error into which the general conversation of BROOKLYN NAVY YARD. 213 that "kind. might have led. them, by stating that a portion of that filling in was necessary, as I believed, and that since the change of officers there I thought it would be cdone properly. I had faith in the character of the officers who had charge of the matter, nor can I say, nor do I wish to say anything that would reflect upon the officers who had charge of the matter before. I have no reason to doubt their good faith and integrity of character. It was rather the system that had been adopted that had been abused by the parties employed about the office, and not the fault of the officers themselves. Question. Is there any general or particular mismanagement in the Brooklyn navy yard, of which you can give us any account, within your own knowledge? Answer. I know nothing of my own knowledge, of any special mismnanagement. I have had reason to believe that some of the departments were not managed as closely as they should be; and I have sometimes feared that parties had been appointed to positions through political influence, who were more or less unfit for the positions to which they had been appointed. GEO. TAYLOR. The witness subsequently requested to add the following to his deposition: Question. Do you know anything about the retention of Patrick Fitzgerald, painter, as foreman under Mr. Turner? Answer. I do. Mr. Fitzgerald resides in my district, and I believed. him to be a faithful man and a good mechanic, and urged Mr. Turner to retain him when he first went into the yard. I understood that Mr. Turner intended to dismiss him, and I wrote two or three times to him protesting against it; but I afterwards lost all confidence in Fitzgerald, and advised Mr. Turner of the fact. I then told him tCI dismiss him, as I did not consider him worthy of confidence. I saw Mr. Turner here, and he told me that he had put my letters in evidence, but that lie had neglected to say that he had discharged Fitzgerald on, my suggestion. He afterwards informed me that he had informed General Bocock, of this committee, of the fact that Fitzgerald had been dismissed at my suggestion, and that he requested an opportunity to state that fact under oath. I have since been informed by two of this committee that such is the fact. GEORGE TAYLOR. 214 BROOKLYN NAVY YARD. No. 69.-R. S. SWACKHAMER, WHITHOUSE, N. J. FEBRUARY 10, 1859. R. S. SWACKHAMER called and examined. By Mr. Bocock: Question. Where do you reside? Answer. At Whitehouse, New Jersey. Question. Do you now hold, or have you recently held, an official position under the government? Answer. Not since the first of last July Question. What was your official position before that time? Answer. I was connected with the naval agency at New York as a clerk. Question. Did you go out when Mr. Saunders came in? Answer. No, sir; I remained until about the first of July, just after his confirmation. Question. How frequently were requisitions made upon the navy agent for the purchase of articles on open purchase? Answer. Almost every day there were some requisitions of that character. Question. Upon whom did you call to make the purchases? Answer. Different individuals. Mostoftherequisitionsweregiven to very few persons. Question. To whom were they usually given? Answer. The firm of Secor & Co. received a good portion of them. Question. In what business were Secor & Co. engaged? Answer. I believe they were reported to be ship chandlers. Question. Did you know them? Answer. Yes, sir; I knew them while my brother was navy agent. Question. Were they called upon to furnish anything out of the line of ship chandlery? Answer. Yes, sir; I think they were. Question. Why were they called upon to furnish things out of their line? Answer. I do not know, sir; I have no positive knowledge; I have nothing more than would be inferential. Question. What relation, either of business, personal, or other character, existed between Mr. Secor and the navy agent, Mr. Saunders? Answer. I do not know, sir, of anything, except that I believe he (Charles F. Secor) was one of his sureties. Question. What arrangement, understanding or agreement, if any, had been made between Mr. Secor and Mr. Saunders in regard to that matter? Answer. I do not know, sir. Question. Did you hear from either of them? Answer. No, sir; nothing relative to arrangements. I know the manner in which the requisitions were disposed of, because I gener BROOKLYN NAVY YARD. 215 ally sent them out myself according to the directions of Mr. Saunders, or some one acting in his stead during his absence. Question. In the absence of Mr. Saunders, what instructions did he leave with you upon that subject? Answer. During the time that Mr. Secor attended to the office he directed that they should be submitted to him. I refer now to Mr. Charles Secor, the father of this young man, of the firm of Secor & Co., which had the ship chandlery store. Sometimes they were submitted to others. Question. To whom were the requisitions sent in Saunders' absence? Answer. Generally to two or three individuals, as I before stated. Question. Why were they sent to those individuals? Answer. I do not know positively. Question. By whose instructions were they sent? Answer. By the instructions of the navy agent, as I understood it. At least, when I submitted them to Mr. Saunders they were sent to those persons by his instructions, and I attended to all the requisitions during the greater part of the time I remained with him. I know there was no regard paid to the circular of the Secretary of the Navy with regard to making these purchases. Question. Was the attention of Mr. Saunders called to that circular? Answer. I directed his attention to it myself. Question. What was the purport of the circular? Answer. It was that, when purchases were made in open market, the navy agent should call upon two or three contractors, and one or two other persons, and see who could furnish the articles at the lowest rate. But these instructions were not heeded at all, in most cases. Question. When you called the attention of Mr. Saunders to it what did he say? Answer. I only remember one time. He said he was coming on to Washington and he would see further about this matter. In the meantime I was to give the requisitions the same directions that they had had. Question. Did he come to Washington? Answer. I do not recollect; he was here very frequently. Q4estion. Did he ever give you any further instructions about it? Answer. No, sir. Question. Can you state how Mr. Saunders' accounts stood in June last? Answer. I do not know how they stood. I know how they were kept. Question. How were they kept? Answer. The statement made to the Secretary of the Navy during the last months I was there did not represent the finances of the office. There were generally several bills, amounting to several thousand dollars, entered as having been paid the last of one month, when they were really paid early in the following month. Question. By whom was this done? 216 BROOKLYN NAVY YARD. Answer. By the chief clerk generally. Question. What effect would that have upon the statement of this account; would it enable Mr. Saunders to draw more money? Answer. Yes, sir; I took that to be the design. It would present an incorrect view of the matter to the Secretary of the Navy. He would not suppose there was so much money in hand as there really was. Question. How long did you continue with Saunders? Answer. Until his office was confirmed; a little over a year after his appointment. Question. What amount of bills were returned as paid which were really unpaid? Answer. I think about $20,000 or $30,000. Question. What was the aggregate amount? Answer. It passed on from one month to anoth creasing. I remember one bill of $8,000 and odd which was reported as paid in April, which was not paid until some time in May. Question. Whom were these bills presented by? Answer. They were generally presented by the contractors. Sometimes they came from the banks. Question. How were the bills paid; in gold or by check? Answer. During the first year; or part of the first year, they were mostly paid by checks upon the bank. The money was kept in the bank and the bills were paid by checks upon the bank. Afterwards they were paid by checks upon the treasury, or in gold. Question. Where was Mr. Saunders during most of this time? Answer. He was in Kansas a good part of the time. At least it was so reported. Question. How frequently was he at his office in New York? Answer. I do not think more than one-third of the time while I was acquainted with that office. Question. Who did the business in his absence? Answer. It was mostly done by the clerks of the office, except signing the checks upon the treasury, &c., which was done part of the time by Mr. Secor. Mr. Blood, however, had large deposits in the bank in his own name, and he drew upon the bank if necessary. Question. Did Mr. Saunders leave blank checks. Answer. Yes, sir; I think he did in some cases. Question. State how the prices charged for articles bought on open purchase compared with the fair market value of the same articles? Answer. In many cases I think they were pretty nearly the same. They corresponded with the market value pretty nearly. But in some cases they were a good deal above. I think some large purchases were made where the amount was probably 100 per cent. more than the article could have been bought for. Question. Give us some examples of that kind of business? Answer. I cannot recollect any at present. I recollect a contractor coming in one day and saying that a requisition had been sent to other parties while he had a contract for the same article, and he BROOKLYN NAVY YARD. 217 thought he was entitled to supply these articles on open purchase. He said he could furnish them for 300 per cent. less than they were furnished; meaning, as I inferred, for one-third the amount. Question. What was the price of the article according to the contract? Answer. I do not know; I do not know what article it was now. I knew at the time, but I did not charge my mind with it. Question. Can you state about the amount of purchases in the course of the year on open purchase by the navy agent of New York? Answer. No, sir, I could not; even approximately. Question. Would it approach half a million? Answer. I do not know; frequently purchases are made amounting to some thousands of dollars in a day. Not often, however. Generally they are small articles; but sometimes they are large articles. Timber was one of the heaviest articles purchased. Question. Where did they purchase their timber? Answer. Mostly from Wesley Smith, of New York. Question. What was his business? Answer. He had a saw mill near Greenpoint, I think. Question. Were the purchases made through Secor of Smith? Answer. No, sir; these purchases were made directly from Smith. The dry goods were not purchased from Secor as a general thing; they were generally purchased of William Matthews. Paints and oils were latterly purchased principally of Mr. Kennedy. Question. State what information you have in regard to any arrangement, or whether there was any arrangement with any of the contractors, or any of these persons employed by Mr. Saunders, by which Mr. Saunders was to receive any portion of the amount of the sales. Answer. I could not say as to that. I do not know that it was on account of purchases made, but I know that he did receive money for paying the bills of contractors before money had been received, and receiving percentage upon the payment, while others whose money had been received at the office were refused payment under the pretext that their bills were not ready. I think he received a percentage of one per cent. in one instance. Question. Do you know of any case in which any money passed through Secor, or any of these contractors of Mr. Saunders, and a portion was retained by Mr. Saunders out of the money due to them on their bills? Answer. No, sir, except as above stated. I had nothing to do with that matter. Question. Who could inform us upon that subject? Answer. I suppose that Mr. Blood, the chief clerk of the navy agent, could. Question. Would he know of such things? Answer. He ought to know of them, sir. Question. Do you know whether the master workmen or other 218 BROOKLYN NAVY YARD. persons make terms with these persons in any case to receive commission out of the purchases. Answer. I have no doubt whatever that the commission is paid upon purchases. I have no positive evidence of it; but I am as confident of it as of many things where I have positive evidence. Question. Can you state any facts from which you would infer it? Answer. There was the greatest precaution taken that the requisitions should go in just such and such directions. Another inference was that those requisitions were sent without any effort to purchase at the lowest market price, as a general thing. Question. State any particular instances that have fallen within your knowledge of frauds committed upon the government directly or indirectly, by any officer under the navy agent or by the navy agent himself. Answer. I do not know anything further than I have stated the manner in which the accounts have been kept, and the manner in which the purchases have been made. FEBRUARY 11, 1859. R. S. SWACKHAMER recalled. By Mr. Bocock: Question. Are you familiar with the manner in which the navy agent settles his accounts at the department? Answer. Yes, sir; I believe I am. Question. How often is he required to make settlements with the department here in Washington? Answer. What are termed the quarterly accounts are made out at the end of every three months. There are partial renderings every month. Question. What is the difference in making these settlements, between the monthly statements and the quarterly statements? Answer. The monthly statement is merely a statement of the moneys received and of the payments made during the month. The quarterly statement embraces the three months, with the bills sent to the 4th Auditor. The bills are generally made out in triplicate. There are three bills; one of which is sent to Washington to be examined before the bill is paid; one is retained; and the third is sent to the 4th Auditor at the quarterly settlement. Question. As I understand this, one bill is sent here before the money can be drawn here to pay it? Answer. Yes, sir; unless it be paid out of other funds. Question. When the money is paid to the persons who furnish the articles, their receipts are taken, and at the end of the quarter that receipt is returned to Washington to show that the money has been expended? Answer. Yes, sir; one of the receipts. Question. Would it be possible, without forgery, for any cheating to be done or fraud committed in the quarterly settlements of the accounts of the navy agent? Answer, The accounts for the quarter are not usually sent to Wash BROOKLYN NAVY YARD. 219 ington until about three months after the expiration of the quarter: and it is sometimes the case that receipts which belong to one quarter are introduced into another. Receipts which belong to one month are introduced as being paid in the preceding month, and consequently they go sometimes into the preceding quarter. Question. Do not these receipts, by their dates, show when the money was paid? Answer. The receipts are generally left blank in these cases. The contractor when he receives his money signs his name, and afterwards the date is filled in to correspond with the entry upon the book. For instance, if a bill is entered as having been paid upon the 30th of September, when it was paid in October, when the parties have signed the receipt in blank, the date will be filled in to correspond with the entry. Sometimes when the contractor fills up the receipt himself when the money is paid, the date is scratched out and made to correspond with the date of the entry. Question. By whom is this done? Answer. By one of the clerks of the office. Question. By Saunders' direction? Answer. I do not know anything about that. Question. Do you know whether Mr. Saunders has had any personal agency in the anticipation of payments? Answer. I suppose he understood the manner in which it was done. I do not suppose it would be done without consulting him in reference to it. Question. Do you know? Answer. I do not. Question. Was that going on as a common practice when you left the office? Answer. I do not recollect whether I saw it during the last month. Question. What was the state of his accounts when you left the office? Were they pretty square? Answer. I think they were about the same as they had been. Question. How had they been? Answer. I judged that Mr. Saunders had overdrawn considerably from the fact that he kept his accounts as they were kept. Question. Did you ever give any intimation to the department in relation to that? Answer. Never anything. Question. Who was the navy agent before Mr. Saunders? Answer. Mr. Swackhamer, my brother. Question. Was that practice in existence during his administration in that office? Answer. I think it was, sir. Question. Dating accounts incorrectly? Answer. I think it was a part of the time. Question. Do you think your brother knew anything about it? Answer. I could not say positively whether he did or not. I think he did before the close of his term. 220 BROOKLYN NAVY YARD. Question. Did he have the same opportunity to know of such things that Mr. Saunders has had? Answer. Yes, sir. Question. To what extent did it prevail in his administration? Answer. I think it probable nearly the same. Question. Was it the practice, during your brother's administration of that office, to receive any compensation beyond his $3,000, by way of division of profits, or anything of that sort? Answer. I do not know whether he received anything, or whether he did not. All the clerks sometimes received presents. Question. You do not know of anything of the sort? Answer. I do not know that he ever received anything. I knew money to be handed him by some of the clerks in one or two instances, and he required that it should be refunded. Question. There is a general idea pervading the country that it is a common practice for navy agents to give their purchases to particular establishments, upon an understanding with those houses that the navy agent shall share the profits. Do you know anything of that in the administration of your brother or of Mr. Saunders? Answer. Nothing more than I have stated. My brother directed that all purchases should be made at the lowest market prices. Question. Do you know upon what pretext that money was rendered to your brother? Answer. I presume it was on account of purchases made. I think it was so stated. Question. Were you clerk with your brother? Answer. Yes, sir. Question. During his whole term? Answer. Yes, sir; during his whole term. RULIFF S. SWACKHAMEA. No. 71.-GEORGE N. SANDERS, NEW YORK. FEBRUARY 11, 1859. GEORGE N. SANDERS called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In New York city, 130 west 14th street. Question. What is your official position? Answer. Navy agent for the harbor of New York. Question. How long have you held that position? Answer. Since April, 1857. Question. Tell us, as briefly as possible, your duties as navy agent? Answer. My chief duty is to make requisitions for money for creditors of the government, and to pay it out to contractors, officers of' the navy for travelling expenses, and allotments of officers and sailors at sea. Question. Does not the purser pay the navy officers? Answer. Not always. It is usual, when officers of the navy are ordered to sea, for the Secretary of the Navy to order the navy agent to advance them two or three months' pay. BROOKLYN NAVY YARD. 221 Question. You say your duty is to make requisitions for money and to pay it out? Answer. Yes. Question. Have you no other duties, such as the purchase of articles, &c.? Answer. Yes; but that is a subordinate duty. The great duty is the examination of bills and allotments, and seeing that they are correct. There are now about three hundred allotments paid in my office; on the first of every month we have two hundred persons, mostly seamen, in and about the office at one time drawing their allotments. The paying of these allotments is a responsible duty. We must identify all these parties and see that the money is paid to the right persons. If we make a mistake it is our loss; but I am -happy to say that no mistake of the kind has occurred in the office since I have been there; nor has government lost a dollar in the dis-'bursement of money through my office. I say that the government has not lost anything because I take it that if, while using all proper care and vigilance, I should pay money to the wrong party the government would not hold an innocent officer responsible; otherwise, the responsibility of disbursing about $2,500,000 a year would not be assumed by any one. Question. What is the amount of the bond which you are required to give? Answer. Two sureties of $75,000 each. Question. Who are your sureties upon that bond? Answer. At present Zeno Secor and Robert J. Walker. Question. Who was your surety before Zeno Secor? Answer. Charles A. Secor. Question. Who before him? Answer. He was one of the first sureties. Upon my confirmation by the Senate I was freshly commissioned, settled up my accounts on the 23d of June, and renewed my bonds. Question. How often are you required to settle your accounts? Answer. I make a statement monthly to the Secretary, and quarterly I send in my vouchers to the Fourth Auditor. Question. You are required to furnish an abstract monthly? Answer. Yes. Question. And once a quarter to settle up with vouchers? Answer. Yes. Question. If you were to send improper vouchers what would be the check? Answer. The creditors themselves would not be quiet, and would call the attention of the department to the fact. I could not send in an improper voucher without it being a forgery, or paid to the wrong person. Question. Could you send on a statement of money paid at the end of one month, when it was not paid until the end of the next month? Answer. No; the papers will exhibit the fact of the time of payment. I make my return to the Secretary within three days after the close of the month, and the quarterly statement to the F ourth Auditor is but a recapitulation of the monthly to the Secretary; the only differ 222 BROOKLYN NAVY YARD. ence is in the vouchers. I could not make a statement that could not easily be corrected outside and independent of my office. Question. What is the nature of the vouchers which ou send to the Fourth Auditor? Answer. I have a pocket full, (drawing a bundle amounting to some eighty thousand dollars and laying them upon the table for inspection.) These bills were sent to me from the yard that I might make requisition upon the department for their payment, they are precisely as received, with the exception of the receipt at the bottom, which is my voucher for payment. Had I discovered or believed anything to be wrong in the bills, it would have been my duty not to make requisition for the money, but to refer the matter, with my objection to the respective bureau for their action. I have no knowledge of these bills except what any of you might gather from the face of them. The committee can see from examining them the character of the bills made out. These bills are made out in the navy yard. Here are some bills of Mr. Secor, and in every instance they are approved by the inspector and by the commandant of the yard I have never paid a dollar upon such bills as these, but upon the credit of the commandant's certificate. The bills are made out in the yard, and the articles inspected and received before I ever approve of them. By Mr. Groesbeck: Question. Do you buy articles for the navy yard? Answer. I make requisitions upon Mr. Secor, for instance, and generally he takes the articles over to the yard, and then they fix the price and the seller brings the bills to mo for approval. The purchases made by those in the yard, however, are much greater than those made by me. By Mr. Bocock: Question. Now, right here at this point, I want you to state what is the extent of your duty and power as purchasing agent. Answer. That is a debatable point. I will state how far I have exercised that power; I think I have not exercised any powers that are questioned. When I am called upon to purchase any article for the navy yard I send the order to a merchant who I am satisfied will not perpetrate a fraud upon the government. The goods are received by the naval storekeeper; the quality approved and price fixed by the various inspectors, under the general supervision of the lieutenant and commandant of the yard, each being responsible for the quality of the article and the price. The bills are made out at the yard, after these preliminary steps have been gone through with, and sent to me for my approval. Now frauds can only be committed by the merchant in sending a spurious and inferior article to the yard. An approximation to the price of a top article is easily ascertained, and any extravagant charge can always be detected at the bureau. I have taken care to give my orders to none but those I believed to be merchants of respectability, who would never think of perpetrating a fraud upon the government. I rarely see the articles myself. The bills are made, and the price fixed, and the bills approved before they come to me. If I saw upon its face, (for that is easily seen, except where the article delivered is a spurious or inferior article, or where it has not been BROOKLYN NAVY YARD. 223 delivered, at all,) if I see upon the face of the bill that it is all right, I approve it and send it to the bureau. They approve, and requisition is made upon the Secretary of the Navy, and the money is drawn from the treasury to pay it. tsellers have appealed to.me to protect them against what they called the tyranny of the inspectors and sometimes of the commandant; but I have not interposed in their behalf, although sometimes I have been satisfied that injustice has been done them. There was one case arose in which it was a question in my own mind what was my duty, and it is a question with me yet. I gave to Mr. Joseph G-rice, a contractor himself, and the agent of a contractor for lumber, an order for some black-walnut timber, which varies very much in price, according to the difference in the quality. He took the timber to the yard, and charged $80 a thousand feet for it. The inspector, it appears, knew a western man, not known to my agency or to the trade, brought to my knowledge only after Mr. Grice had delivered the lumber, who had a large lot of black-walnut lumber on hand that he was willing to sell at a lower price, and therefore the inspector rejects this timber of Mr. Grice on account of the price, and took the other man's timber. I had given the order to Mr. Grice because he was a man of respectability and standing as a contractor and the agent of a contractor. The following is a copy of the requisition sent to me from the yard No. 1014.] U. S. NAVY YARD, NEW YORK, March 13th, 1858. SIR: There is required under the appropriation for increase, repairs, &c. Bureau of construction, &c. FRIGATE WABASH, constructor's department. Furniture. 600 feet black walnut I inch. To be selected. Approved: THos. R. ROOTES, Commander pro tern. Respectfully your obedient servant, ANSON HERRIOK, To the NAVY AGENT. U. S. Naval Storekeeper. The above requisition was awarded to Joseph Green, contractor, March 15, 1858. It was, however, purchased of Richard Green by the yard, who was not a regular dealer, and not known to the office; he was entirely an outsider. He came from Illinois to the New York market in the fall of 1857 with a large quantity of black walnut, and he remained during the winter, and stored the stuff, selling it whenever opportunity occurred at any price. Green went to the yard and saw the master joiner, and told him he had this stuff. Mr. Grice's lumber was sent to the yard but not received. Upon the delivery of the lumbe by Mr. Grice, the commodore wrote me the following letter, and I addressed to him the following replies upon the subject: 224 BROOKLYN NAVY YARD. Copy of a correspondence between the commandant and navy agent, in relation to the purchase of black-walnut lumber. NAVY YARD, New York, April 2, 1858. SIR: A lot of black-walnut lumber delivered at this yard on requisition, and charged at $80 per 1,000 feet, has been rejected on account of price. It is reported to me that the price of such lumber is $50 per 1,000 feet. Respectfully, your obedient servant. L. KEARNY, Commander. GEO. N. SANDERS, ESQ., Navy Agent, New York. NAVY AGENT'S OFFICE, New York, April 8, 1858. SIR: Your letter of the 2d inst., in regard to a lot of black-walnut lumber recently delivered at the yard, has been received. I have made inquiry, and ascertained that $80 per 1,000 feet, is considered the fair market price for lumber of the description required. From application made to six parties, I received the following offers: A. Durgee, at $80 per 1,000 feet; Ogden & Co., at $80 per 1,000 feet; Wesley Smith, at $85 per 1,000 feet. Very respectfully, GEO. N. SANDERS, Navy Agent, per GEO. A. BLOOD. COMMODORE L. KEARNY, Commandant U. S. Navy Yard, New York. NAVY AGENT'S OFFICE, New York, May 6, 1858. SIR: Referring to your requisition of the 15th of March last, for 600 feet black walnut, and which I sent to Mr. Joseph Grice, a dealer, and also the agent for the contractor of the same article, I was constrained to approve of the price, viz: $80, as upon issuing circulars, I received the following propositions: Wesley Smith, at $85; A. Durgee, at $80; Ogden & Co., $80; J. Pickard & Co., at $85. On giving the order to Mr. Grice, I told him, as I do all others receiving requisitions, that the very best article must be furnished, for which, it is but fair that the market price should be paid, and which was no more than charged in this case, as the above offers will show. If the lumber is not of the very best quality, it ought not to have been received. I presume it was, as no objection has been made to it. Very respectfully, GEO. N. SANDERS, Navy Agent. COMMODORE L. KEARNY, Commandant U. S. Navy Yard, New York. That is the extent of my interference in this case, leaving the decision with the commandant. The only point in my mind was this, whether I should interfere or not. I had given the order to Mr. Grice and he had delivered the timber in good faith Now if I was satisfied BROOKLYN NAVY YARD. 225 that he had charged but the fair market price for it, was it not a binding contract upon me, no matter whether or not another man came forward and offered the timber at less than market price? They received the lumber proposed to them at the cheaper rate, and I paid the bill, of which the following is a copy: In triplicate. THE UNITED STATES NAVY DEPARTMENT To RICHARD GREEN, Dr. Bureau of Construction, &c. appropriation for increase, repairs, &c. April 17, 1858. General purposes. 862 S. feet black-walnut boards at $55 per M...................... $47 41 Cartage...................................................................... 2 25 $49 66 Having examined the articles above charged, we certify that they are of good quality, and charged at the market price. JOHN ORR, Inspector. B. F. DELANO, Naval Constructor. APRIL 17, 1858. Received the above article for increase, repairs, &c. ANSON HERRICK, Navy Store Keeper. NAVY YARD, NEW YORK, April 17, 1858. The public exigencies required the immediate delivery of the articles mentioned in this bill, and there not being time to advertise for proposals, the articles were properly obtained by open purchase, and the same is approved for the sum of forty-nine dollars and sixty-six cents. $49 66. L. KEARNY, Commandant. NAVY AGENT'S OFFICE, New York, May 5, 1858. Received of George N. Sanders, agent, forty-nine dollars and sixtysix cents, in full of the above bill, and have signed triplicate receipts. $49 66. RICHARD GREEN. I have never interfered or approved of any bills that the quality and price of the article had not been previously fixed at the yard. Question. Do you make a requisition and order the articles, and do they go to the yard before the price is fixed? Answer. Yes: I cannot fix a price that cannot be reversed by the inspector and commandant; I rarely fix one. Question. What are the instructions to you from the department? Answer. A circular was sent to me of which the following is a copy: BUREAU OF YARDS AND DOCKS, December 29, 1855. SIR: I am directed by the Secretary of the Navy to issue this circular, which supersedes that of the 8th of June last, and which by his order is to apply to all the bureaus of the Navy Department. 15 D 226 BROOKLYN NAVY YARD. When articles are required for one of the bureaus of the department which are not embraced in contracts with that bureau, or which are to be procured by open purchase, the navy agent will ascertain in writing from the contractors with all the bureaus dealing in the kind of articles required, or from their agents, if any, near the place of delivery, the prices at which they will respectively deliver the articles required. He will also ascertain from at least two other parties dealing in such articles, including the one, if any, named in the requisition, the prices at which they will deliver them as required. All the parties and their prices are to be noted on the back of the requisition, and the purchase made from the lowest bidder subject to the usual inspection. The commandant will take care not to approve requisitions for articles to be procured by open purchase, when similar articles under contract or in store can be made to answer the purpose of those reWhen open purchases are indispensable, let at least a month's supply be included in one requisition unless otherwise specially directed by either bureau. When the prices are the same, the contractors are always to have the preference. A bill of the articles purchased, with the cost price of each, must, in all cases, accompany the goods when delivered. Respectfully, your obedient servant. JOSEPH SMITH. To the COMMANDANT OF EACH NAVY YARD.. The following correspondence between me and the department grew out of this matter. Copy of a correspondence between the Bureau of Yards and Docks and navy agent, in regard to open purchases. BUREAU OF YARDS AND DocKs, May 22, 185w. SIR: Mr. S. P. Brown, a contractor, informs the- bureau that requisitions had been made, and orders given to others, to furnish white pine dimension lumber and spruce piles, outside of his contract for lumber, &c., deliverable at the New York navy yard, without his knowledge or that of his agent at New York; that they were wanted, and stating his desire to supply articles of lumber, &c., &c., which are purchased in open market, provided he can do so as low or lower than others. This Mr. Brown is entitled to do under the bureau's circular of December 29, 1855, to which you are referred for your, guidance when you have occasion to procure supplies by open purchase. In this case, however, Mr. Brown is a defaulter, and it is not probable he could supply forthwith what he has had months to supply under his con BROOKLYN NAVY YARD. 227 tract, and failed to do. The piles alluded to are, I presume, those ordered by the bureau to be purchased. Respectfully, your obedient servant, JOS. SMITH. GEORGE N. SANDERS, Esq., Navy Agent, New York. Extract of a correspondence between the Bureau of Yards and Docks and the navy agent, in regard to open purchases. NAVY AGENT'S OFFICE, New York, May 27, 1857. SIR: Your letter of the 22d instant, in reference to white pine dimension lumber being purchased by me, without calling on Mr. S. P. Brown for a proposition, has been received. The requisition to which I suppose the bureau refers, and which is the subject of Mr. Brown's complaint, came to me marked "to be selected," and "all to be furnished immediately." The presumption, and it is a reasonable one, that the department which required an article to " be selected," desired it procured in this market, would cut off Mr. Brown as a competitor, even if the immediate want of it did not, as Mr. Brown lives in Maine, and it would take a week, possibly longer, before a supply could be received from him. The agent of Mr. Brown in this city, Mr. G. W. Simpson, is a commission merchant, as near as I can ascertain, and not the proper person, if the bureau wishes to purchase from first hands, to fill such orders. Very respectfully, GEO. N. SANDERS, Navy Agent. Commodore JOSEPH SMITH, Uhif of Bureau Yards and Docks, Washington. BUREAU OF YARDS AND DOCKS, May 28, 1857. SIR: I have received your letter of the 27th instant, in reply to that of the bureau, dated the 22d instant. The circular in relation to purchases in open market, requires that all the contractors or their agents be called on for bids for articles in their line as well as others, it was therefore due to Mr. Brown that. having an agent in New York, (it matters nob of what occupation,) he should be asked for prices through that agent, for any articles of lumber that may be required during the period for which he may be a contractor for supplying that article; the purchases to be made from the lowest bidder. It is not contemplated that deliveries of articles purchased in open market should be made within a period not reasonable, the time named in the requisition, copy of which you forward, is too short, the bureau considers ten days but reasonable in this case. Nor did the bureau contemplate such purchases so made in open market on the eve of making new contracts for the year's supply, you will, however, obtain 228 BROOKLYN NAVY YARD. offers to supply this requisition, as directed by the circular; taling the lowest offer, and allowing ten days fordelivery. Respectfully, your obedient servant, JOS. SMITH. GEORGE N. SANDERS, Esq., Navy Agent, New York. NAVY AGENT'S OFFICE, New York, August 17, 1858. SIR: Your letter of the 14th instant, calling my attention to the circular of the department of 29th December, 1855, has been received. I think it proper at this time to present to the bureau a few obstacles in connexion with this matter, and which if the bureau will remove, I will be very happy to carry out the circular to the letter. So far as it has been in my power, I have endeavored to act according to the spirit of the instructions of the department, always keeping in view the fact, that the department required nothing but of the very best quality; and it is admitted at the yard that the articles are the very best in market, and give the highest satisfaction; for which a fair market price should be paid, and nothing more, and when I have thought parties wished to charge exorbitantly, I have refused them any of the trade of the office. And in a case recently, where purchases were made on account of Mr. Lesley, contractor, the articles were procured at a much lower rate than the contract, although they were afterwards turned over to the contractor, and the bills made in his name. Requisitions are often made for so small quantities, for instance, three spools of cotton, and so indefinite, if for tools or iron, &c., no size is given, that no merchant could form an estimate of the price until the parties at the yard are consulted; this occupies time, and two or three applications of this kind, if they should fail to receive an order, the bureau will readily perceive would not only discourage, but disgust them with the whole working of the department. It is often the case that articles are not required until the moment they are wanted for use, and then they are either purchased by the yard, or if time is taken to go through the form of the circular, hundreds of men are kept idle, waiting, and the government really loses more than twice the cost of the article, and this cannot be avoided if the circular is carried out to the letter. If there is a requisition from the yard of any large amount, it is invariably the case that it is stated on the face of it where it is to be bought. I have too amiably yielded to these suggestions, thereby establishing a bad precedent, as the inspector should not influence the purchase. I do not understand the circular to give contractors the monopoly of supply. Some of the contractors are evidently of this opinion, and recklessly make bids below the cash value of the best articles of the class, hoping to make up such losses by excessive charges on articles ordered by open purchase. If the inspectors do their duty there will be little profit on the open purchases, even were they all given to a single house, and it is certainly to the interest of the government that BROOKLYN NAVY YARD. 229 the best house'in the city should do all the miscellaneous business, as I have shown it is not of sufficient consequence to be much divided. Very respectfully, GEO. N. SANDERS, WNavy Agent. Coin. JOSEPH SMITH, Chief of Bureau of Yards and Dock/s, Washington. BUREAU OF YARDS AND DOCKS, August 19, 1858.: I have received your letter of the 17th instant, in reply to that -of the bureau res pectin~g purchases in open market, of the 14th instant. The circular of the 29th of December, 1855, embraced the orders of the Secretary of the Navy, and any deviation from, or violation of them on complaint of parties' supposing themselves aggrieved would subject the navy agent, against whom the complaint should be made, to a call for explanation from the department. Contractors have no advantage under the circular, other than when the prices for articles are the sale, they are to have the preference. The circular directs how the rices shall be ascertained. The persons named on the face of the requisitions from the yard, are to derive no "benefit from their being so named, unless their prices are the lowest. Respectf ully, your obedient servant, JOS. SMITH. GEO. N. SANDERS, Esq., Navy Agent, New York. There was a correspondence between me and Commander Rootes in relation to the purchase of some horses. I thought that the proper course was for him to have sent his requisition to me. But perhaps he thought I was not competent to select horses. In that, however, he was mistaken, as the early part of my life was passed on horseback. He sent me a bill for $792 for three horses purchased for the use of the yard. I thought the bill was exorbitant and forwarded it to the bureau for instruction. Correspondence upon that point: Correspondence between Commandant Bootes, the Bureau, and Navy agent, in relation to the purchase of three horses. NAVY AGENT'S OFFICE, New York, August 8, 1857. SIR: The enclosed bill seems to be for a purchase of horses for the yard; as I have no knowledge of the transaction, the bill is transmitted for the action of the bureau. Very respectfully, Navy Agent. Commodore JOSEPH SMITH, Chief of Bureau of Yards and Docks, Washington. 230 BROOKLYN NAVY YARD. BUREAU OF YARDS ANDDOCKS August 10, 85. SIR: Your letters of the 1st instant have been received. I return the bills for horses purchased for the yard; the price paid seems to be extravagant; it seems, however, to obtain the approval of the commandant. In making this purchase the usual and regular forms should have been followed, that of requisition on the navy agent, bearing on its face "to be selected " if so desired. These selections are sometimes made by experts engaged for that purpose, but in all cases requisitions should be sent to your agency. Respectfully your obedient servant, JOSEPH SMITM. GEO. N. SANDERS, Esq., Navy Agent, New York. NAVY YARD, NEW YORK, August 13, 1857. SIR: The three horses purchased on the 6th instant for the use of the Yard, were bought with the understanding that they were to be paid for immediately, and would not have been sold by the owner to the government without such understanding. I am now informe that he must wait thirty days for his money. If practicable, you will confer an obligation by waiving your right to this delay and paying the bills upon presentation. Very respectfully, your obedient servant, THOS. R. ROOTES, Commandant pro tern. GEO. N. SANDERS, Esq., Navy Agent, New York. NAVY AGENT'S OFFICE, New York, August, 13, 1857. SIR: Your letter of the 13th instant in relation to the bill for three horses recently purchased for the yard, has been received, and in reply I have to state that it would afford me pleasure to comply with your wishes, but I cannot pay the bill until the receipt of funds from the department for that purpose. I will make requisition for the amount and as soon as remitted will pay it over. Very respectfully, GEO. N. SANDERS, Navy Agent. Commandant pro tern. U. S. Navy Yard, New York. The following is a copy of the bill: [In triplicate.] The UNITED STATES NAVY DEPARTMENT to BERNARD McENTEE, Dr. Bureau of Yards and Docks.-appropriation for contingent. 1857.-August 6. To three horses for the yard department...... $792 BROOKLYN NAVY YARD. 231 Having examined the article above charged, I certify that it is correct. HUG-H McLAUGHLIN, M. L. ANSON HERRICK, Aucgus-t 7, 1857. Navy Storekeeper. NAVY YARD, New York, August 7, 1857. This bill is approved for the sum of seven hundred and ninety-two dollars. THOS. R. ROOTES, Commandant. NAVY AGENT'S OFFICE, New York, August 28, 1857. lReceived of George N. Sanders, agent, seven hundred and ninety-two dollars, in full of the above bill, and have signed triplicate receipts. $792. BERNARD McENTEE. The mo-ney was paid over the moment it was received. I understood. that Commander Rootes had some feeling upon the subject. These bills which I have laid before the committee, I have brought here for the purpose. of letting you see the certificate of the commandant and the inspector of the articles which I am called upon to pay. I will also state that were I to go myself and select the articles and fix the price, it is not presumed that I will go to the yard with them, and it would therefore be easy to shift and change the article which I selected for one less valuable, and I am satisfied that the only security to the government is in having honorable, upright men to deliver the articles-men who would not impose upon the government. It depends much upon the officers of the yard, the vigilance and carefulness of the inspectors, and upon the commandant and lieutenant of the yard. In my correspondence with the department I alluded to my "too amiably yielding" to the suggestions from the yard. I meant this: As I stated in my letter, invariably when an order came from the yard of any amount, it was suggested upon the face of it where it was to be bought. Now I saw no good reason why it should go *to the place indicated, though I have yielded too much in some cases. I have no doubt the goods were all right, but it would be establishing a bad precedent. You should never allow the inspectors, unless there is good reason for it, to indicate where to get articles, and then you would prevent collusion. I have been in the yard but twice. I have seen Commander Rootes but twice. I know but few of the inspectors. I know Mr. Delano, constructing engineer, who was an inspector. I also know Charles Graham, civil engineer of the yard. I knew him just as he retired from office, and I have got acquainted with Mr. King, his successor, recently. The master painter, Mr. Turner, introduced himself to me outside of this room, while I was waiting to be called in here. I state this to show that it is not possible for me to make anything without complicity with the inspectors, commandant, &C., and I am intimate with none, and know only those I have named, even by sight. 232 BROOKLYN NAVY YARD. Question. The last question I asked you, which was some time ago, had reference to a circular sent you from Commodore Smith. What was the occasion of that circular being sent to you? Answer. The complaints of the contractors, who supposed that they should be applied to for all articles to be obtained upon open purchase. This they claimed as a right. I have, in many cases, conformed to the circular, in important cases, sometimes in unimportant cases, and tried to work it. Question. I understand that the circular required that when you had an article to buy on open purchase you should send round a circular, in the form of proposals, to different contractors-at least three. Have you done so? Answer. I have done so in many instances, and have failed to do so in many instances. Question. How did you feel yourself at liberty to disregard instructions? Answer. Because of the impossibility of obeying them, as I have explained in the correspondence here. I have shown how difficult for this to be done, and Commodore Smith yielded the point. Question. Did he yield the point? Answer. Well, this was the last ofthecorrespondence. tfsend these proposals to contractors sometimes they will not answer them. That is not what the contractor wants, to be inquired of in regard to the price. They claim that the articles shall be ordered of them directly. They do not complain that I did not send the circulars to them but that I did not send the orders to them. Question. State briefly the reason that you did not comply with the circular? Answer. Because it is impossible to fix the price of the article. Question. But the circular requires you to send around to the contractors? Answer. But it cannot be done with my limited knowledge of the articles wanted. I prefer selecting honorable men to get the articles' oftentimes contractors. Question. You do not understand my question yet. It is this: If you have an article to purchase in open market, the circular requires you to send around something in the shape of proposals to find out what the contractors will sell it at, in order to find out the lowest price; is that so? Answer. They will not answer the circular. I have sent around these proposals and found that it is not practicable to get them to give me an answer. There is another side of the case. Even if I were to send around my proposals broadcast to persons and inquire their price, I have no confidence that they would not furnish an inferior article. I am responsible for furnishing a good article, but I cannot tell what it will be if an irresponsible party is called upon to furnish it. I must be sure that an honest man has got the order, at least to the best of my knowledge and belief. I distinctly told Commander Rootes, in the only conversation I ever had with him, that if he ever found any man imposing upon the government who had had orders from me, to inform me, and I would see that lie never got another order from me. BROOKLYN NAVY YARD. 233 By Mr. Ritchie: Question. I thought you stated a moment since that you were not responsible for the articles? Answer. I am responsible. Question. I understood you to say that the responsibility lay upon the inspector? Answer. I am responsible, but a responsibility rests also upon them, I have endeavored to show the inconsistency of the thing. I am not expected to take the article to the yard myself. Then how am I to swear that the same article goes there and is received, that I bought? Therefore the price is rarely fixed by me except in some important matters. It is impossible, in many cases,, to fix the price until it is done at the yard. By Mr. Bocock: Question. You have spoken either in your testimony, or in your correspondence, of Imiscellaneous articles;" what do you mean by that? Answer. I mean articles not included in any contract that it would be difficult to describe; these are generally selected by the master workmen, and it is almost impossible to fix a price until the article is selected, By Mr. Groesbeck: Question. How much did they amount to'lat year? Answer. TI think my pu-rchases from April 1, 1857, (th. day I took possession of' the ageny,) to January 1, 1 859, amounted to $88,399. This is what I purchased. The most of the purchasing is done at the yard. Here are bills for $80,000, of which I have no knowledge, except from being called upon to pay them. I have bought flour, pork, coal, sugar, and such like, which I do not call miscellaneous articles, as their prices are easy to fix. Buc by miscellaneous articles I meant those the value of which it is not easy to determine.' By Mr. Bocock: Question. Do you make all these miscellaneous purchases of the same house? Answer. No; I buy them at various houses, and that is the trouble with the thing; the purchasing is cut up too much. I think it would be an advantage to the government if these purchases were confined to one house; but I have complied with the circular as well as I could. Question. How many houses have you bought of? Answer. I began with A. T. Stewart & Co., because I knew he kept a tip-top article, and had but one fixed price for every thing, and would deal fairly with the government. But the contractors complained. Mr. Mathews, a general contractor for the army, Indian department, and navy, assured me that he would furnish the articles as well as Stewart, and as cheap, and I have since sent most of the dry goods articles to him. Question. To whom else have you sent? Answer. I send to some thirty different persons. Question. Whom do you send to principally? Answer. I send to Secor & Co., perhaps, for a majority of the miscellaneous undescribed articles. The father is now, I believe, the 234 BROOKLYN NAVY YARD. head of the house. This h ouse was a heavy contractor in the revenue service and with the Bureau of Yards and Docks, to supply the navy yard at San Francisco with almost every variety of miscellaneous matter, and at a rate considerably below that offered by any one else, and thereby constituting themselves contractors under the circular. Question. In what business are they engaged? Answer. Ship chandlery. Question. Do you send to them for articles that ship chandlers do not generally have for sale? Answer. That is very difficult to say. Their business is to supply everything connected with ships, and it is difficult to say what constitutes a ship chandler's business. I do not know as I am sufficiently posted to say what it precisely is. For hard lumber I sent; when I first began, to a merchant of the name of Torrence, (a brother-in-law of Mr. H. F. Clark,) who was engaged in a general commission business. I generally intend to send to some one who I think will not get me into difficulties about the articles I order of' him. I do not like to send to a stranger; I want to know the man. My fear is that the man may attempt to palm a false or inferior article upon the government. I do not think there is much danger in anything else. Question. You have stated that your securities were the Secors; formerly Charles A. Secor and now Zeno Secor? Answer. Yes. Everybody who knows anything about me knows that I was a man without means. The bonds I was required to give were very large. Charles A. Secor had known me ever since I had been in New York, and I suppose he had confidence in my integrity. At any rate, as I was walking down Broadway one morning, I told him what amount of security I would have to get. He very generously, without any consideration in the future, without mentioning his son, who was engaged in business, offered to go my security himself, and did so almost immediately. I was appointed in March, and had to go into office on the first of April, and had not much time to look up securities. I just took Mr. Secor and Mr. Walker. Mr. Secor imagined himself then as worth about $300,000, and never supposed it possible that he should ask any favor of me. But the hard times of last year came on and every thing I could throw in the way legitimately of his son, who was in business, he asked me to do. I had confidence in the integrity of the house. They had too much at stake to attempt to defraud me or the government. I think their transactions, at least so far as I know and believe, are honorable and correct. Question. Are either of these gentlemen, Charles A. Secor or Zeno Secor a member of the firm of Secor & Co.? Answer. They were not at the time C. A. Secor became my security. Question. Have they been since? Answer. I think that Zeno Secor at present has an interest in the house; I am not sure about that. But Charles A. Secor in the first instance had no interest in the house; at any rate so he informed me. My impression is that Zeno Secor has now an interest in the house, but I am not sure whether he has or not; it is very probable that he has. But I do not think that was a consideration with him in causing him to go my security; at any rate it was not made one. BROOKLYN NAVY YARD. 235 Question. You think, then, that Zeno Secor is a member of the house? Answer. He may be. Question. Was he so when he became your surety? Answer. He may have been. If he is now he was then. I have not thought about that matter. Question. Did he ever tell you that he was? Answer. No, he never did. Question. Did you ever see him in the store then? Answer. He is engaged in railroading, he and his brother, Charles A. Secor, in Illinois. Ship chandlery is their original business. Question. Where does he employ himself personally? To what business does he devote his individual attention? Answer. I do not know. My relations were with his brother, Charles A. I am not very intimate with Zeno. Charles A., from circumstances connected- with railroading in Illinois, was unable to renew the bond, and Zeno, at the solicitation of his brother, (not at my solicitation, for I knew but very little about him,) came forward and gave the bonds required. Question. Your former surety, then, became embarrassed in business? Answer. He got embarrassed, and I renewed my bond with one unembarrassed; and it was upon Charles A.'s assurance that there was no danger that Zeno became my surety. I do not know what he told him, but he came promptly forward and executed the bond. He had no inducement to do so except to stand by his brother's friend. Question. According to your best judgment what is the amount of purchases you have made of Secor & Co.? Answer. My best judgment is what they say about it themselves; that it is about $13,000 since the 1st of April last. Question. Will you please append to your deposition tables showing the whole amount of purchases during the last year and from whom? Answer. I will do so. [See appendix to this deposition.] Question. You have spoken of a large amount of purchases being made in the navy yard of which you know nothing. Please state how they are made and by what authority? Answer. I do not know by what authority they are made. When I ask they generally say they are made by order of the bureau. Question. Are not all the purchases required by law to go through the same form; that is, for the engineer or other party desiring the article to make a requisition which must be signed by the storekeeper and the commandant, and then sent to you? Answer. I do not like to give an opinion upon the law. I have con - tended that all the orders, unless otherwise directed by the bureau, should come to me. I believe that they should; at the same time, the bureaus direct purchases to be made of which the navy agent knows nothing. I think the large majority of the open purchases are made in the yard, of which I have no knowledge. Now, I have nothing at all to do with purchases for the medical department there, except to draw requisitions for the money to pay for them. 236 BROOKLYN NAVY YARD. Question. You say that these purchases made for the yard are not made by requisitions upon you? Answer. No; not the greater amount of them. Question. By whom are the purchases made? Answer. By the heads of the different departments. Question. Does the constructing engineer buy any? Answer. Yes. Question. And the naval constructor. Answer. Yes. Question. And who else? Answer. The engineer of the yard buys some. Question. Are the articles bought by these gentlemen submitted to examination and inspection, both as to quality and price, before they are received and used? Answer. I presume so; that is what is said. Question. Who is the inspector in such a case? Answer. The purchaser oftentimea, under the superviiion of the lieutenant of the yard and commandant. Question. Does the same man who purchases the article himself' in spect it? Answer. That is what is purported to be done; I can only judge from the bills sent to me. They read upon their face that it was done by the order of the bureau. The bureau writes, I suppose, that certain things can be had at certain prices, at such a place; they are got, and the bills are approved and sent to me for payment, which is the first thing I hear of them. I make requisition for the money to pay these bills, the bureau passes the requisitions, the money is forwarded to me, and I pay them. I do not consider myself responsible for anything connected with those purchases, further than if I know that anything is wrong I would report it to the bureau. By Mr. Groesbeck: Question. According to my understanding of the matter, purchases made in that way are against the established rule? Answer. I think in any material matter they report to the bureau, probably, and get permission to make the purchases. There are many cases in which Commander Rootes thought he could do things in that respect better than the navy agent could, as he did not seem to have a very high opinion of the abilities of the navy agent, and he did seem to have a very high opinion of his own abilities. By Mr. Bocock: Question. What is the amount of purchases, to the best of your knowledge and belief, made in this way in the yard, during the last year? Answer. About $100,000, I should guess. Question. What check in that case is there upon the man who makes the purchase? Answer. The only check is the bureau; I can put no check upon him. Question. How can the bureau be a check upon him? Does he not purchase the article, and proceed to use it? BROOKLYN NAVY YARD. 237 Answer. I do not know how it is, I have no knowledge myself, except such as I get from the bills. Question. Then all you know is that such bills are approved by the commandant of the yard? Answer. Yes sir; I think that most of the open purchases, more than half of them, perhaps two-thirds of them have been made without my knowledge. Question. By some officer in the yard? Answer. Yes sir; it is my impression that they amount to that much. Question. [After examining some bills of purchases made in the yard, and purchases made by the navy agent.] I do not see any difference between the form of the bills for purchases in the yard, and the form of the bills of your purchases, is there any difference? Answer. The blank form of the bill is the same, and they are filled up the same, with this difference, that upon those thatI purchase is written "approved, Geo. N. Sanders," while nothing of the kind is written upon the others. Question. The vouchers in both cases are the same? Answer. Yes, sir; only in the one case I send on the bill with my approval, and the other case I do not approve it, that is, I send them on to the bureau without comment upon my part. Question. What difference is there in the form of the receipt for purchases made by you, and purchases made by some officer of the yard? Answer. Only that in case the purchase is made by an officer of the yard, I do not approve it, if it is made by myself, I do approve it. By Mr. Ritchie: Question. Do you direct where these purchases shall be made, that are made by officers in the yard? Answer. I do not. Question. Do you direct where they shall be made when you order the purchases yourself, or when they are made by requisition upon you? Answer. I do when the requisition simply comes to me. But sometimes the yard undertakes to say in the requisition where the article can be bought, if they do not say anything about the price at which it can be bought I do not pay much attention to it. If they mention the price, and I cannot get it for less, I give it to the parties they indicate. Question. As a general rule do you direct where purchases of both classes shall be made? Answer. What I buy myself I do; but not those purchases made by the yard. By Mr. Bocock: Question. You say that when you make the purchase yourself, you designate the party from whom it is to be obtained? Answer. Yes. Question. But when it is made by an officer of the yard you have nothing to do with designating the party from whom it is to be obtained? Answer. No; the purchase is made before I know anything about it. Question. Do you know whether this practice of purchasing in the 238 BROOKLYN NAVY YARD. yard, independent of the navy agent, is known to and approved by the department? Answer. I only know this: the bills are sent on to the department without my approval. I say nothing about them, yet the department orders them to be paid. Question. Who sends the bills on? Answer. I send them on; as they are passed by the bureau, I presume they are satisfied with them. They sometimes make purchases in the yard under order or direction of the bureau; perhaps a majority of these purchases are by order of the different bureaus at Washington. Question. Do you know of such being the fact? Answer. In many cases it is, the bills themselves say so: " by order of the bureau of &c" My impression is that when they want to buy an article they consult the bureau, tell them the price of it and from where they can get it, and then the bureau gives them directions to buy it. I do not know precisely the manner in which it is done. All I know is, that I have no knowledge of the matter until the bill comes to me to be paid; and sometimes the bill says "by order of the bureau,' and sometimes it does not. I merely transmit these bills to the department without comment. But everything I buy myself I send on with my approval. But I do not pay any money out on any bill until it is approved by the inspector and the commandant. Question, What is your salary? Answer. Three thousand dollars a year; and there is a mooted point connected with that, as to when that salary shall be drawn. The law says,I am entitled to two per cent. for all moneys that I disburse, provided I am not to receive to exceed $3,000 per annum. Now, I claim that I am entitled to two per cent. on all moneys I disburse until I receive $3,000, and then I am to disburse the money of the government for nothing-that is, I claim that when I have disbursed $150,000, I am entitled to draw 11 my $3,000. But that question I believe is in litigation now. At all events I have retained that amount. Question. Your salary cannot exceed $3,000 a year? Answer. No. Question. Are there any perquisites besides your salary in any way attaching to the office? Answer. I have made a charge for but one thing; but that is a matter which has never been brought before the department, and there are no instructions upon the subject. I have charged $3 to contractors when I have been called upon by them to go around town and see whether men they offer as sureties are good or not. I consider that rather outside of my regular official duties. I have charged parties in that case because they can go to the judge, or district attorney, or any other officer named by the law to do that duty, and they would be charged $5. They are not obliged to come to me. If there was nobody else to do it but me it would be a different thing. But there are several others and they all charge $5 each; if i charged nothing I would have it all to do. But it is specified upon contracts that one of several officers shall do it. Question. In what cases have you to pass upon bonds? BROOKLYN NAVY YARD. 239 Answer. Only in cases of contracts. Where I do not know anything of the character and standing of the sureties offered, I must satisfy myself in regard to them. To my knowledge they have never complained except in one instance. I consider it a legitimate charge. I have had no instructions upon the subject. Question. Do you mean to say that where parties propose to supply articles it devolves upon you to ascertain and report whether the sureties they offer are sufficient? Answer. It does not devolve upon me unless the contractor calls upon me to do it. Any of the other officers may do it. Contractors have their own election to call upon me or upon one of the others. If they come to me I charge them $3, without any especial instructions upon the subject one way or the other. I was told by a predecesssor that such a charge was legitimate and proper. All the parties have cheerfully paid it, except in one instance, without any complaint whatever. Question. What is the amount of the income derived from this source? Answer. Very small; I do not know exactly how much; probably $100. Question. Are there any other sources of income? Answer. No, sir. Question. Then $3,000 a year and this other matter is all the pay you receive? Answer. Yes, sir; and it is very inadequate too; so much so that I have scattered a little of my time. It is not sufficient to support me. Question. Do you know whether any navy agent had agreements with persons from whom he ordered articles, that those persons should allow him a certain sum, a certain percentage, or a part of the profits in consideration of his purchasing from them? Answer. Only from hearsay. I have had no such arrangement myself. I have no knowledge concerning others, except from hearsay. I know that navy agents are subject to general attack, of which I have heard a great deal. Question. Have you ever got a percentage for paying bills before they became due? Answer. I never paid a bill before it became due. Question. Then you have never made arrangement to pay a bill before it became due? Answer. I have done this; I have borrowed largely for contractors. During the summer of' the last year, when they could not get along very well, even a week's advance upon their bills was of great consequence to them. I merely stated that their bills would be paid at such a time. I took no official responsibility, but merely stated as Geo. N. Sanders that they would be paid. I merely stated what the bills were drawn for; that they were all right, and would be paid when the money was received. By Mr. Groesbeck: Question. Then you made representations by which they got their bills discounted? 240 BROOKLYN NAVY YARD. Answer. Yes, sir. By Mr. Bocock: Question. Have they ever paid you anything for this? Answer. There was never any agreement that they should. They have made me small presents afterward, sometimes to a very trifling amount. Not in consideration of the money I helped them to get, but for my general kindness and attention to their interests. I have never charged a man a cent for what I have done, beyond this $3, which I said I charged for hunting up their sureties. Question. When you send a bill to the department to draw the money on it is this receipt attached to it? Answer. A blank form of receipt is attached to it; it is not signed, however, until the money is ready to be paid. Question. You send the bills to the department, they send you the the money, you pay the parties, and then they sign the receipts? Answer. That is so. They sign the receipt when the money is paid to them; and these receipts, thus signed, are my vouchers. Question. Then the bill when it is first sent on is the same as the one you send as a voucher, only the receipt is not signed? Answer. Yes, they send it back to me, and when I get the receipt signed, it goes to the accounting officer of the treasury as my voucher. Question. Is a record of these bills kept at the department? Answer. I presume so, at least; I do not know enough of the way they manage their business, however, to say positively. Question. Then at the end of the quarter you send to the Treasury Department all your receipts? Answer. Yes, and they then close up my accounts for the quarter; I have never had a mistake found in my accounts yet; some items may be sent back for explanation, but in every instance it has been satisfactorily explained. Question. Would it be practicable for you to draw money to pay a bill before it became due? Answer. No it would not be practicable for me to do so, and even if it were, the department would not pay it. Question. Have you never anticipated by a month or two months in your drafts upon the department accounts that were to become due? Answer. No, I cannot anticipate, I tried to keep a balance on hand of about $5,000, I found in one or two instances that my balance on hand was not enough for extraordinary occasions. Question. Has this ever been the case, that you have drawn money to pay a bill due, and when the money has been received you have used it to pay some bill that was not due, leaving unpaid the bill that was due, and upon which you drew the money? Answer. I will explain the precise facts about that matter. During the issue of treasury notes I was instructed to equalize their payment among the contractors as much as possible, paying each one part cash and part treasury notes, so as to show no partiality. In the treasury they did not like to separate a warrant. For instance, two warrants drawn upon the treasury, one of them they would pay in cash and the other they would pay in treasury notes; not paying each one part cash and part treasury notes, but leaving it to me to make that divi BROOKLYN NAVY YARD. 241 sion. The cash would invariably reach me several days in advance of the treasury notes. This cash I have divided among the creditors, and so with the treasury notes. The warrants were drawn about the same time. This arrangement always appeared to give entire satisfaction, for I never heard a creditor complain about it. The only cases where I have shown partiality have been for personal services, officers of the navy, for instance, I have always paid them in gold instead of treasury notes, for the reason that I supposed they could not get rid of the notes without submitting to a heavier loss than the merchant. That is the only class of cases in which I have exercised any discrimination. The creditors of the government were so much pressed during the panic, that I would pay part of the bills in cash immediately upon its receipt and the balance in treasury notes a few days after, instead of keeping the money on hand as I had a right to do, until I could pay the whole bill. This I have done at the instance of those holding the bills. Question. Has it ever been the case that you have used money, which you have received for a particular bill which you have sent to Washington, to pay another bill which you have not sent on to Washington, leaving the other bill unpaid? Answer. No; I have never let a bill lie over at all, except when I was directed to use this discretion, to work off the treasury paper to the least injury of all parties, giving a part of the cash, which reached me in advance, to one and a part to another. I have never heard a word of complaint from a contractor on this ground, and no man who received money through my office ever had cause to complain that I had kept him waiting for his money a minute after he applied for it, if I had received it. Now, to show that if I am deficient in anything it is in not keeping sufficient funds on hand, because it takes a week for me to make a requisition upon Washington and get the money. I will mention an instance: At the time the Niagara was ordered off, the purser of the Niagara received an order from the Secretary of the Navy upon me for $10,000, and I received a despatch to that effect also. Recent drafts from the Secretary and Fourth Auditor had exhausted all the pay and contingent fund on hand; but I promptly borrowed the money and paid it over to the purser. There has been no instance, after the receipt of funds, in which I have kept creditors waiting for their money from the smallness of the contingent fund. The department has overdrawn on me twice, yet I have always paid I recollect that there was an article in the Herald, about the time of my confirmation, saying that the Secretary had better examine my accounts; yet on that very day I was $2,000 in advance to the, government, and transmitted a telegraphic despatch to the Secretary of the Navy to that effect. Question. When did you last settle up your account? Answer. On the 30th of September last. Question. Did you exhibit your receipts and vouchers at thlat time?"' Answer. Yes; everything. Question. How did your accounts then stand? Answer. They were all square; it takes sometime for the accounts' to pass through the circumlocution of all the offices; they passed the accounting officer of the treasury, lbut they have not all passed through. 16 D 242 BROOKLYN NAVY YARD. the Comptroller's office, up to this time; I mean my accounts of' the 30th September. Question, Did you exhibit receipts for all the money that had been placed in your hands by the government? Answer. Yes, receipts for what had been expended. Question. How much money did you have on hand at the time? Answer. I do not recollect. Question. About what amount? Answer. I would rather let the record speak upon that point; there was not a great deal. Question. How much force does the government allow in your office? Answer. They allow me three clerks and a porter, which is hardly enough. Question. Is that the force generally allowed to your office? Answer. I do not know what my predecessors had; I have full employment for more than that; the business of the office is increasing. Question. How much personal attention do you give to your office? Answer. As much as my predecessor did. Question. How much is that? Answer. I am there when I am in New York, all that I think is necessary for the proper direction of the office; as to the hour, I come sometimes late and sometimes early; I am irregular; and I always find everything going on like clock-work. Question. Have you not been away from New York a great deal? Answer. Not a great deal; I have been to Kansas three times. Question. Who discharges the duties of your office while you are away? Answer. I leave it under the general supervision of Mr. George J. Forrest. He was formerly a New Orleans merchant, latterly a New York merchant; a man of fortune and of high standing. He has the general superintendence of the office, and acts as the navy agent in my absence; and then I have my clerks there, in whom I have great confidence. Question. Is this Mr. Forrest one of the three clerks you spoke of as those allowed you by the government? Answer. No, sir; he is unsalaried; he is a gentleman of leisure, having retired from business, and my office is a kind of resting place for him down town, where he can see his friends, and from which he can direct his correspondence. Question. How long has he been in the office? Answer. He only exercises superintendence there when I am away from New York; he did so while I was absent in Kansas, and he is doing so now. Question. When did he commence that? Answer. When I went to Kansas. Question. Did you not have a deputy before that? Answer. I had Mr. S. N. Johnson, the present editor of the Union and former consul to Matanzas; a very able man, and who was recommended by our party for Assistant Secretary of State. Question. There has been mentioned here one of the Secors in connexion with this matter? BROOKLYN NAVY YARD. 243 Answer. He was one of my sureties, and I merely left him a general power of attorney while I was absent, to interpose when anything wrong was going on; a thing he never had occasion to do. I have never had leave of absence from the department. I have intimated to them that I was going away. The reason for not giving leave is, I believe, that they think if they granted me leave of absence, they release my sureties. Whenever I go away, I take a great many precautions to have everything done right. I require several signatures to endorse my checks before they are to be paid. No check can be cashed in my absence without its having two signatures-that of Mr. Forrest and that of my chief clerk. Even if I were to send on from here a check with my own signature to it, it would be stopped f6r explanation, according to the general instructions I have left with the assistant treasurer. Question. Has a gentleman by the name of Swackhamer ever been employed in your office? Answer. Yes, sir. Question. In what capacity? Answer. As a subordinate clerk making requisitions He was a brother of my predecessor. I found him there, and he importuned me to keep him. I did not like to turn him out, as he professed to be a democrat, and I told him he might remain there until he could obtain some other position. There were a great many complaints from my friends because I kept him, and there were complaints from contractors against him. But I did not see that they were well founded, and I thought it might damage his prospects to turn him out then. But after we had divided there in New York politically, and he and his brother had espoused the cause of my opponents, I removed him and told him to get patronage and support from the party he had joined. Question. When did you remove him? Answer. As soon as the collector was confirmed. Question. Was this mnan your book-keeper? Answer. No. Question. Did he have access to your books? Answer. They were not particularly excluded from him. He had no charge of them and not much knowledge of them. I think he is a very ignorant man. I would not trust him, not on account of any want of honesty, but because of his ignorance. I kept him, I think, to my own detriment and to the detriment of the public interest. Question. Why did you keep him so long if he was not competent? Answer. I merely kept him because I did not want to be hard upon my predecessor and upon a professing democrat. He was constantly saying that he could not get employment, and I felt that it would be damaging to him to remove him. Schell, of whom he was a partisan, kept putting him off; but after Schell was confirmed as collector, I thought he could take care of him, and so I removed him. By the Chairman: Question. State the aggregate amount of annual payments made by you, as near as you can? Answer. I think about $3,000,000 the first year. 244 BROOKLYN NAVY YARD. Question. What proportion of these payments was for materials and on contracts? Answer. I would rather let the record speak. I am having a table prepared in my office, which will show this. Question. State as near as you can the amount you paid out upon open purchase? Answer. About $400,000, I should think. Question. Will your table show that accurately? Answer. Yes, sir, Question. For what bureaus did you make purchases? Answer. For all except the Bureau of Medicine. I do not think I have made any purchases for the medical department at all; they are all made by those in charge. Question. Please furnish a form of the requisition made upon you when an article is bought upon open purchase. Answer. I will do so. [See appendix to this deposition.] Question. Why did you select Secor & Co. to make your purchases? Answer. I had confidence in their integrity that they would not defraud the government nor myself. Question. Have you had, or do you now have, any understanding with them that you are to derive any benefit or advantage from. their being selected by you to make these purchases? Answer. No. They became my security, knowing that I was a poor man, bankrupt as I was. They had known me intimately for fourteen years, and so had Mr. Robert J. Walker. C. A. Secor became embarrassed, and I have been happy to have had it in my power to help his son. By Mr. Bocock: Question. You say you were a poor man when you took this office. What is your pecuniary condition at the present time? Answer. I have not a red cent beyond my salary, and that I have to draw a little in advance sometimes. But I manage to keep just about square. By the Chairman: Question. Was there any other motive which induced you to select Secor & Co. as your purchasers beyond those you have named? Answer. There was no consideration connected with their being my security, if that is what you mean. The only reason was that they were my intimate friends and had my confidence. Question. When you made purchases on open purchases what was the first intimation you received as to the price? Answer. From the navy yard. Question. After the article was delivered? Answer. Yes, except in some material cases, such as 100 or 200 barrels of flour, or 200 or 300 tons of coal, of which the price could be seen in every newspaper; but in reference to these miscellaneous small matters, amounting, perhaps, to $40,000 in the course of a year, I have no knowledge of the price until the bills come to me from the navy yard. Question. Had you any knowledge of the quality or the fairness of the price, other than the signature of the officer of the yard? BROOKLYN NAVY YARD. 245 Answer. No, sir. Question. Have there been cases that the articles described in the requisition have been bought and delivered in the yard before the requisitions were made out? Answer. It has sometimes been the case that when I. have called upon merchants to fill a requisition sent to me, when they have sent the articles over to the yard, they have found that they have been already supplied. Question. Who, in such cases, would make the purchases in the yard? Answer. The inspecting officers of the yard, I suppose; perha:s the commandant. Question. Do you include the master workmen or bosses, in the term " inspecting officers?" Answer. Yes, sir; they are the inspectors for their departments. Question. How many of the officers or master workmen, and persons in the yard make these purchases? Answer. That I cannot tell now; I would rather speak from the record, and therefore, with your permission, I will answer it hereafter. (See appendix.) Question. In such cases did you exercise any supervision over the articles purchased as to quality and price? Answer. On the bill being presented to me for payment, if I thought it was excessive in price, I would not approve it. Question. When was this habit commenced of putting upon the requisition a suggestion as to where the article should be purchased? Answer. It was in practice when I went into office. Question. Why did you observe it? Answer. I have done so when I knew the price was as low as the article could be obtained for. Question. Did you know that there was collusion between these persons in the yard, and those of whom they bought? Answer. I have heard. I knew nothing about it. Question, You conformed to the suggestion? Answer. Yes; and I think I have yielded too much in that way. To be sure I did so when I thought the price was a proper one; but I think it is a bad precedent to be established, to allow the inspectors Lo purchase the articles, or to have much to do beyond the inspection. Tow, if I found a person, against whom all the officers and ins)ectors in the yard had personal objection, it would not prevent my g'.ing him orders; he might still be a very good person to supply the government. Question. Was there not a constant dispute between you and the bosses of the yard, the inspectors, as to whom you should buy your articles from on open purchase for the government? Answer. They very often made these intimations to me, and I have some times yielded to them; some times I have not. But I never yielded to them when I supposed there was anything wrong about it. Question. That is not an answer to my question. Was there not constant controversy between you and the bosses of the yard on this point? 246 BROOKLYN NAVY YARD. Answer. I cannot say that there was. Question. How frequently would there be a controversy? Answer. It could hardly be termed a controversy. When I have received a requisition and called upon a merchant to supply the article thus called for, and when he has taken the article over to the yard, and found that it had been supplied by some one else upon a call from the officer of the yard, then there has been some little dispute about it; for it is a matter not yet settled whether I am responsible or not when I call upon a merchant to supply an article for the yard, and he has taken it over there, and it is acknowledged to be a good article and at a fair price. Question. Then I understand that a requisition would be made upon you, and you would make the ordinary call, say upon Secor & Co., to send the article required, and when they have taken it over to the yard they have found that it had been already supplied by some one else? Answer. Yes, sir; that is so. Question. Then the controversy would occur between Secor & Co., and the person who supplied the article as to who should be paid? Answer. Not necessarily; the controversy would be between me and the inspector and whoever I sent the requisition to; for instance, here was this lumber transaction, I gave the order to Mr. Grice to furnish the lumber; I was satisfied that he would furnish a good article and at a fair market price for the quality he would supply; it was doubtful to me what I should do, whether to refer the matter to the foreman or simply to refer it to Commodore Kearny, and let it go at that. Question. In the present mode in which business is done, what check is there upon collusion between purchasers and those of whom the articles are purchased? Answer. If the inspectors purchase the article, the commandant of the yard, the navy agent, and the bureau. Question. You say you have exercised no check? Answer. I have seen nothing of collusion. Question. In your absence would your subordinates do it? Answer. I suppose they would. Question. Does not the department take these certificates as conclusive upon them? Answer. No; they generally examine as to the price themselves and sometimes there is quite a contest as to the price; all the bils that are paid are examined and passed by them. Question. What facilities have the department to ascertain ile price of articles? Answer. They have the schedule of prices in the various contracts for similar articles in the various yards, and also the prices paid in the various yards for similar articles obtained on open purchase. Question. Who pays the superintendent you speak of, the gentleman who acts for you in your absence? Answer. He does not get any pay; he is a retired merchant, and does this merely because he is a personal friend, it is an advantage to BROOKLYN NAVY YARD. 247 him to have an office to sit in and receive his friends. It is merely a favor that he does for ume as his personal friend. Question. What was your previous business before you became navy agent? Answer. I was a grazier. I went into the State of Ohio, when I was eighteen years old, to buy and to sell cattle, and a dealer in live stock of every description. Question. Have you ever been engaged in the business of merchandizing? Answer. No, sir. Question. Have you ever before been engaged as disbursing and receiving officer? Answer. No, unless consulship to London was such. Question. Were you not known at the time of your appointment as an active politician rather than as a business man? Answer. I do not know that I had any reputation as a business man, still my own opinion and that of my intimate friends as to my business capacity might differ from that of the public. Question. If a person engaged in business in the city of New York had desired a disbursing officer to take charge of books, and keep intricate accounts and requisitions and dealings of this sort, do you think it probable that you would have been selected for that purpose? Answer. Only by those who knew me intimately. Question. Is it not a fact that the offices in New York, the customhouse and the yard especially are filled upon political grounds, and not upon business considerations? Answer. They are doubtless all filled upon political grounds mainly, but they are taken in connexion with the business adaptations of the recipients. I will say this, that I did not seek the office to which I was appointed; I desired another. By Mr. Groesbeck: Question. Were your bills ever rejected at the department here on account of price? Answer. I believe not; none that I recollect of. They may have been held over for explanation. Question. When they have been objected to? Answer. Yes.. Question. Has there ever been any instance, according to your recollection, of an abatement in the price in consequence of objection from the department? Answer. I do not recollect of any such case; there may have been; I cannot say positively. I cannot bring to my mind any case, and I would not like to say positively now. Question. Are you willing to state, in the absence of your accounts, the proportion of purchases made in the yard by order of the bureau or otherwise? Answer. I should guess that about two-thirds-perhaps not so much, but I think about that - were made by employes of the yard without any reference of the requisitions to me. They made about twice as many purchases as I did. The heavy items I generally 248 BROOKLYN NAVY YARD. have nothing to do with. There may be some exceptions, but I would prefer to answer more explicitly by exact figures from the office. (See appendix.) Question. Now in regard to purchases made by yourself, I understand you to say that you made the purchase, but did not inquire tile price; is that so? Answer. That is not exactly so. I would send the requisition to a merchant in whom I had confidence, and upon whom I would place dependence that he would charge but the market price, and that he would send a top article. I do not examine the article myself. It goes to the yard and is there inspected, and the bill for it is signed and certified to there. After going through that ordeal it comes back to me, and if I am convinced that it is all fair and right I approve it. Question. In any case do you inquire the price? Answer. When I get a requisition for some staple article, such as flour, pork, coal, &c., I ascertain the price. Question. Do you inquire the price of any of the miscellaneous articles you speak of? Aneswer. Unless of' some value, I rely upon the inspectors. Question. State the class of cases in which you inquire the price, and those in which you do not. Answer. I always inquire the prices of coal, pork, flour; such and all staple articles. Question. What cases are those in which you do not inquire the prices? Answer. I do not inquire the price of the smaller articles. Question. You do inquire the price of the larger articles? Answer. Yes, sir; if the articles amount to any considerable sum I generally inquire the prices. Question. What do you mean by a " considerable sum "? Answer. A couple of hundred dollars, for instance. Question. Then when you make a purchase, the cost of which amounts to $150 or $200 or upwards, you do inquire the price? Answer. I do, unless it is something that I know nothing about; some pump of a new patent, articles of' that kind, which are to be selected; it is then for the inspector to fix the price. Question. Then where it is not an ordinary article in the market you do not fix the price? Answer. Rarely; it is fixed at the yard. It takes some time to hunt up an article of that kind, and the price is generally fixed upon by the inspectors at the time of selection. Question. Do you buy a great many articles where the amount they come to is very small? Answer. Some of them as low as twenty-five cents. By Mr. Ready: Question. What checks are there upon the navy agent in disbursing money where he makes open purchases, if he should be disposed to collude with the vendor? Answer. The agent and the vendor may have an understanding, it is true; but then if the others do their duty, it is not possible for any excessive profits to be made. BROOKLYN NAVY YARD. 249 Question. Could not five or ten per cent, very well be made? Answmer. That would not be considered an excessive profit. By thle Chairman: Question. Could that amount be added to a fair profit without exciting notice? Answer. It might; but I have no knowledge of anything of the kind. There would have to be general corruption, from the bureau down through the commandant, inspectors, and navy agent. It is possible that the navy storekeeper and the inspector could give a receipt for an article that was not received; that is possible, but the commandant and lieutenant of the yard have a general supervision of that matter. But it is scarcely possible that an excessive profit can be made upon a top article, because it could be so easily corrected at the bureau. Question. Would the commandant of a yard be supposed to be intimately acquainted with prices? Answer. He has the prices all before him. There are so many competing to send in articles for the yard that they will be sure to send him their prices of everything. If a man has a thing to sell to the navy yard he is very apt to send the price to the commandant and to the navy agent. Question. Then you think that five per cent. profit would be added very easily. Answer. Yes; I think that amount of profit could be made. I think that much profit should be conceded to a fair honest man. Some of the inspectors are not inclined to allow a man any profit. But the amount of profit to be allowed is not yet fixed; and it is not even yet decided whether those who deliver articles in the Brooklyn navy yard are to be allowed any per centage for ferriage. A merchant does not like to take an order to fill without he can make some profit. He must deliver the article at the yard at some expense for drayage, &c., and then there are the chances of the article being rejected, although he may in good faith take a tip-top article there at a fair price; and yet, the inspector and master workman can put him to a very serious loss and inconvenience by rejecting his article, from some cause or other. Therefore, a man will not take the business of the yard without some prospective profit. Question. Have you discovered anything like a general disposition upon the part of contractors to take advantage of and impose upon the government? Answer. I have not; they are too anxious to obtain the business of the government, for it gives them a credit with the mercantile marine; it is a sort of endorsement of them to have a contract with the government, and they therefore work for small profits, and I have told Commander Rootes that if there was any attempted imposition upon the government to let me know it, but he has never reported an instance to me. Question. Then you do not think that it is a common feeling in the community of New York, that it is legitimate to plunder the government? Answer. I do not think that it is so: I do not think that such a 250 BROOKLYN NAVY YARD. thing is attempted in that yard, for they know the ordeal throngh which they would have to go. Question. You spoke of having scattered your time somewhat, and of having been absent in Kansas, what proportion of your time have you been absent? Answer. My first trip to Kansas I was gone six weeks; my second trip I was gone a couple of months; and my third trip one month. I have not been to a watering place, or a place of pleasure; but the rest of my time I have devoted to my office. Question. Were you engaged in speculations in Kansas? Answer. I was. Question. Have you a large amount invested there? Answer. Not of my own money, but money advanced by other parties. Question. What per cent. do they give yo? Answer. They give my wife one-half of the profits. Question. What amount of profits have been realized in behalf of your wife? Answer. NTone, at all; they depend entirely upon the future. Question. Then the investments have been made, and the profits are yet to be realized? Answer. Yes; but not a dollar of my own money has been invested there. Question. Are any other persons to be benefited by these investments? Answer. None but them; they supposed that I had some ability in that line; there I have the endorsement of capitalists to a large extent, of my ability in that respect; when they might not think me a good book keeper they would trust their money to me to make those large operations. Question. What proportion of your time have you devoted to the duties of your office, while in New York? Answer. I am there every day, late or early; generally late, sometimes early. Question. Who does the business of the office? Answer. I direct it all myself. Question. The duties are actually performed by the clerk, I suppose? Answer. Yes, sir; I direct the correspondence, give directions as to where the requisitions shall be sent, except the small things; when there is a case of any moment it is always referred to me. I have a clerk who has been raised to business in that office, and I believe he has made no mistakes; I think all the accounting officers here will give him a certificate as being admirable in his department. Question. Who are your clerks? Answer. Mr. Blood, Mr. Hardy, Jackson Orr and Mr. Vincent. Question. What are their salaries respectively? Answer. The Secretary allows forty-six hundred dollars clerk hire, which sum is distributed among the persons named; the chief clerk, Mr. Blood, receives nineteen hundred, also five hundred dollars for a messenger. GEO. N. SANDERS. BROOKLYN NAVY YARD. 251 Documents explanatory of foregoing deposition. [In triplicate.] PROVISIONS AND CLOTHING.-OPEN PURCHASE BY THE NAVY YARD. THE UNITED STATES N'AVY DEPARTMENT, (appropriation for provisions.) To AUGUSTE CASSIN & Co., Dr. 1857, August 3. 1,000 boxes mixed vegetables, containing 500,000 rations, at $1 28................... $6,400 The articles charged in the above account are furnished at fair market price. ~ ~, Navy Agent. UNITED STATES NAVY YARD, New York, August 3, 1857. I have inspected and received the articles above charged, they being of good quality and of fair price. JNO. D. GIBSON, Inspector in charge of provisions, clothing, &c. NAVY YARD, New York. The public exigencies required the immediate delivery of the articles mentioned in this bill, and there not being time to advertise for proposals, the articles were properly obtained by open purchase, and the same is approved for the sum of six thousand four hundred dollars, cents. THOMAS R. ROOTES, Cormandant pro tern. NAVY AGENT'S OFFICE, New York, August 15, 1857. Received of George N. Sanders, navy agent, sixty-four hundred dollars and- - cents, in full of the within bill, and have signed triplicate receipts. $6,400. AUGUSTE CASSIN & CO. NAVY DEPARTMENT, Bureau of Provisions and Clothing, August 14, 1857. Approved for sixty-four hundred dollars. Will be paid by the navy agent at New York. $6,400. H. BRIDGE, Chief of Bureau. 252 BROOKLYN NAVY YARDo [In triplicate. BUREAU OF YARDS AND DOCKS.-OPEN PURCHASE BY THE NAVY AGENT. THE UNITED STATES NAVY DEPARTMENT, (appropriation for contingent. To SECOR & Co, Dr. 1857, June 11. Master laborer's department, one pair of garden shears................................... $2 00 Approved: GEORGE N. SANDERS, Navy Agent. Having examined the articles above charged, I certify that they are of good quality, and charged at the market price. HENRY S. NEWCOMB, Lieutenant. AUGUST 5, 1857. Received the above articles for contingent. ANSON HERRICK, Navy Storekeeper. NAVY YARD, New York, August 6, 1857. The public exigencies required the immediate delivery of the articles mentioned in this bill, and there not being time to advertise for proposals, the articles were properly obtained by open purchase, and the same is approved for the sum of two dollars. $2 00. THOMAS R. ROOTES, Commandant pro tern. NAVY AGENT'S OFFICE, New York, August 26, 1857. Received of George N. Sanders, navy agent, two dollars and -~ cents, in full of the above bill, and have signed triplicate receipts. $2 oo. SECOR & CO. BROOKLYN NAVY YARD. 253 OFFICE OF TIIE ASSISTANT TREASURER UNITED STATES, New York, February 16, 1859. The balance to the credit of George N. Sanders, navy agent, New York, subject to draft at the close of business on the 31st of January, 1859, was ($56,985 88) fifty-six thousand nine hundred and eightyfive dollars, eighty-eight cents. The balance to his credit at the close of business on the 15th of February, 1859, was ($33,914 91) thirty-three thousand nine hundred and fourteen dollars, ninety-one cents The last deposit made by him was treasury draft No. 8916, for ($23,082) twenty-three thousand and eighty-two dollars, on the 7th of February, 1859. I certify the above to be a correct statement from the books of this office. JOHN J. CISCO, Assistant Treasurer United States. Abstract of receipts and expenditures on navy account, for the month of January, 1859, by George N. Sanders, navy agent, at New York: DEBIT. Balance fiom 1858............./................................. 21,015 68 Amount received on requisitions........................... 109,906 65 130,922 33 CREDIT. Disbursements in January.................... $79,451 42 Deposit in treasury.............................. 2,250 00 81,701 42 Balance on hand January 31......................... 49,220 91 NAVY AGENT'S OFFICE, NEW YORK, February 16, 1859. Statement showing the balance of funds on hand, according to the books and accounts of this agency, at the different dates herein named. On January 31, 1859....................................... $49,220 91 On February 1, 1859.......................................... 79,353 70 On February 6, 1859........................................ 45,765 18 On February 7, 1859....,..,................................. 67,141 23 On February 10, 1859.......................................... 49312 41 On February 15, 1859......................................... 33,914 96 254 BROOKLYN NAVY YARD, CITY AND COUNTY OF NEW YORK: George A. Blood, chief clerk to navy agent, of the county of Westchester, being duly sworn, says that the above is a correct statement of funds on hand according to the books and accounts of the agency at the different dates above named. GEO. A. BLOOD, Chief Clerk to Navy Agent. Sworn to before me the 16th day of February, 1859. SUMNER STOW ELY, Commissioner of Deeds. Amount of open purchases made at the New York station, arranged according to the quarters, from April 1, 1857, to December 31, 1858, inclusive. Quarter. Purchases 1,y Purchases by agent. - yard. Second quarter, ending June 30, 1857 ------ $32,287 97 $52,739 56 Third quarter, September 30, 1857 ------— 14, 832 72 61, 928 40 Fourth quarter, December 31, 1857-.4 -- --- 4,830 30 39,912 24 First quarter, March 31, 1857 —--------- - 5,787 57 57,086 13 Second quarter, June 30, 1858 -------------- - 13,192 88 27 172 12 Third quarter, September 30, 1858 --------- 6,425 ]5 29,860 07 Fourth quarter, December 31, 1858 —---—.. ——. —- 11, 036 23 34,189 80 88,392 82 312,888 32 TREASURY DEPARTMENT, Fourth Auditor's Ofice, February 14, 1859. SIR: Your disbursements as navy agent at New York, fiom the commencement of your official service, April 1, 1857, to September 30, 1858, the latest date of your returns to this office, amount to $2,532,438 42. Thus: 2d quarter, 1857.......................... $4........... 482,632 65 3d quarter, 185................................................. 433,691 96 4th quarter, 1857........................................... 290,196 42 Ist quarter, 1858.......................................... 515,021 48 BROOKLYN NAVY YARD 255 2d quarter, 1858........................................... 402,618 19 3d quarter, 1858................................................... 408,277 72 2,532,438 42 I am, sir, very respectfully, your obedient servant, A. J. O'BANNON. GEORGE N. SANDERS, Esq., Navy Agent, Present. TREASURY DEPARTMENT, Fourth Auditor's Office, February 16, 1859. SI: In reply to your verbal request of the 15th instant, in relation to your accounts as navy agent, I have to say that, in the settlement of your account, under your old bond, to the 23d of June last, there was a balance found against you of $7,318 54, and that subsequently you have deposited into the treasury, on account of this balance, $6,410 88, leaving a balance still due of $907 66. This sum, however, consists of suspended items referred to the Secretary of the Navy for his approval, and which have not yet been acted upon. Up to this time your account presents a fair and satisfactory adjustment. I am, sir, very respectfully, your obedient servant, A. J. O'BANNON. GEO. N. SANDERS, Esq., Navy Agent, New York. No. 74.-TESTIMONY OF WILLIAM TRBNER, BROOKLYN NAVY YARD. FEBRUARY 12, 1859. WILLIAM TURNER called and examined. By Mr. Groesbeck: Question. What is your employment, Mr. Turner? Answer. I am master painter in the Brooklyn navy yard. Question. How long have you been in that position? Answer. I entered into the discharge of my duties on the 23d day of March, or thereabouts, almost a year ago. I was appointed about the 15th. Question. Do you know anything about a subscription that was gotten up among the men under your employment to pay your expenses to Washington? Answer. I did not know anything about it. I heard that there was one some time afterwards. One of my men gave me some money to come on here to see the department and try to have their wages raised. In the yard at Brooklyn it has always been the custom in the spring of the year to get an estimate of the salaries of men out 256 BROOKLYN NAVY YARD. of doors in all the departments; and I found, on going out of doors and getting a report of the wages there, that they were higher than what the men in the yard were getting. The men knew that fact, and wanted to know if I would not come to the department and try to get their wages advanced. I told them I would; and when I was coming away they gave me some money to pay my expenses. I do not know anything about any subscription, whether they got one up or not. I do not know that they did. Question. What is the practice about wages outside and inside the yard? Answer. It has always been customary to rate the wages inside the same as those out of doors. Question. For the painters? Answer. Yes, sir; the same that painters receive out of doors. Question. I will ask you about a practice in the yard which has been adverted to, of making presents of watches, and canes, and such things, to the master workmen in charge of the different departments. Do you know anything about that? Answer. I do, sir. I must state frankly that it has always been the practice for the mechanics in the different departments to present some token of respect to the masters when they come into the yard. Question. How long has it been the practice to do this? Answer. I presume, from my knowledge, for eight or ten years. Question. Do you know that this is so? Answer. I do. Question. Did you have anything to do with getting up anything of that kind? Answer. I did not, sir. Question. Did you yourself receive such a present? Answer. I did, sir. Question. I will ask you whether, during last summer or last fall, you did not, upon one or more occasions, leave the yard and take some of the men with you to go into Queens county? Answer. Never, sir, without checking the men; that is, reporting to the officers that their pay was then cut off during the day. Question. Is it allowable, upon making that application and checking the men, so as to deduct the time for their absence; has it been the practice in the navy yard to allow men to go off temporarily? Answer. A man can go off at any time he sees fit if he checks; I have no control over that. The clerk of the yard keeps the books, and calls the roll at seven o'clock in the morning, and at roll time, whatever time it may be. A man cannot go out of the yard between the rolls without reporting himself to the clerk's office. I have discharged several for going out without checking themselves. Question. Suppose you have need of the services of the men in the yard, are they allowed to go in this way? Answer. They can leave at quarter time without my knowledge, only they report to the clerk of the yard. For instance, they go into the yard in the morning and work a quarter of a day, and leave before the second bell at one o' clock, and then they only receive pay BROOKLYN NAVY YARD. 257 for a quarter of a day. I suppose the men can go out by deducting'their time. Question. Why are they kept in, then, if they can go out in this manner? Answer. We have no control over the men only during the time they are at work there. Question. Suppose there is work for them to do upon any given day, can they get permission to leave by having their time deducted? Answer. Yes, sir. Question. And let the work go undone? Answer. They are not compelled to be there at all; but if they ever leave the yard and are absent three full days their call runs out, and they are struck from the books. They can go away and stay two days and a half, but on the last call on the third day they have got to be present or their name is struck from the book: they are no more on the list, and the clerk does not call them. During the three days they can do as they please. A man may be sick, for instance, or he may be employed in some other place; he may have to go and see a friend, and he can remain away during two days. Question. The question is, supposing, in your opinion, the presence of the men is necessary in the yard for labor-there is work on hand to be done, can they get leave of absence whenever they please? Answer. I cannot see that we have got control over the men; they can go at any time, so long as they come up to the rules of the yard. They are in my control only when they are actually at work. Question. Did you ever ask any of these men under your employment to do work for you? Answer. Never, sir, when they were paid by the government. Question. Did you never have any painting done; did you never send any men out to do any painting for you? Answer. Never, outside of the yard gate; not when they were paid by the government. Question. I mean when they were paid by the government? Answer. Never, sir. Question. Did you never send a man to Calvary cemetery to paint for you? Answer. Never, when he was employed in the yard. Question. Did you send a man there at any time? Answer. Yes, sir; but I paid him for going there; he was not paid by the government. Question. Did he return to the yard? Answer. Not that day; he was checked, and the books show that he was not paid by the government. For instance, up to my house, or any other place, if I had a small job of painting to be done, perhaps it would be too much trouble to get a painter out of doors, and I would say to one of the men, you need not come into the yard tomorrow, for I have a little job for you myself. It is customary for the officers, if they have anything of this kind to be done out of doors, to hire a man in that department and send him to do the job, at the same time having him checked by the clerk of the yard, so that he 17 D 258 BROOKLYN NAVY YARD. does not receive pay from the government for the time he is thus employed. I did send a man to paint the iron rail around the graves of my family. Question. At Calvary cemetery? Answer. I did, sir; but the government did not pay him. Question. Did you ever send men under your employment to do work for members of Congress? Answer. Never in my life. Question. Do you mean to say that no men under your employment ever did any work for members of Congress? Answer. They never did to my knowledge. I have understood since that a man by the name of White and a man who is now my foreman, by the name of Craig, on the 1st day of July, went over to see Hon. John Searing, and were there on a visit cherrying; and during the time they were there I believe they did some work for Mr. Searing. This was not done to my knowledge. I have only heard it from hearsay. They were Mr. Searing's constituents and friends, and I believe they were there on a visit. Question. Were they checked upon that occasion? Answer. They were not paid. I have got my books in Washington, and you can see from the books that they were not paid from the 2d of July to the 6th. The 4th was celebrated on Monday. They were absent from the 2d to the 6th; but the 4th being taken out, still made their call good on the morning of the 6th, for when there is a holiday in the yard we never count that on the man's time. Otherwise, their time would have run out; but the 4th of July coming in, they were absent only two days when the roll was called in the yard. The book shows this. I will bring the book if the committee wish to see it; it is up to Mr. Willard's. Question. How do you guard your paint? Answer. I have got nothing to do with it. Question. Who has charge of it in your department? Answer. In my department I require it from the storekeeper, and Mr. Jones has charge of it-the man who keeps my books. Question. Is he under your control? Answer. Yes, sir; he is. Question. Then is not the paint under your control? Answer. It is in a measure. Question. Have you ever, upon any occasion, done any painting for yourself with the paint of the government? Answer. Never. I never took a pound of paint out of the yard to my knowledge; that I solemnly swear. Question. I wish you would explain to the committee about the hundred weight of zinc, or thereabouts, that was taken to Williamsburg upon one occasion? Answer. I never knew anything about that until the first day of last month, when this committee was organized. It was written to me that such a thing had been stated before this committee. I called upon all my men and asked them if they knew anything about the fact. Two of my men said they did. A man by the name of White BROOKLYN NAVY YARD. 259 said that during my absence in Washington-for I was here and staid here some ten days —r. Fitzgerald ordered these men to carry a keg of paint over to the Block. I was then painting the shell house on the Block, and the paint could not go out on any other occasion. They had to take it in a small boat and carry it to the Block. There is a little stream that runs between the Block dock and Williamsburgh, and White and Leighton informed me that, by the order of Mr. Fitzgerald, they took the hundred pounds of zinc and landed it at the Williamsburgh dock. Question. What became of it? Answer. I do not know what became of it. Question. Do you say that you were not there at the time? Answer. I was in Washington at the time. Question. Have you said anything to Mr. Fitzgerald about taking paint out? Answer. Never in my life; he is a man that I would not have anything to say to. Question. Do you know anything about glass having been taken from your department? Answer. No, sir. Question. Have you any recollection of two boxes of glass having been taken at any time? Answer. Never, sir, to my knowledge. Question. Have you not, upon one or more occasions, gone with men under your employ to political meetings? Answer. On one occasion I went myself to a political meeting in the day time, and some of my men went, but they checked themselves and were not paid for the time they were absent from the yard. Question. How do you know that? Answer. I know it because the books show it. I can swear positively to it, for every man who went checked himself at my request. Question. When was it? Answer. It was in September, I do not know the day; I went to a political meeting in East New York. Several of the men went and none of them got paid; among them was my foreman. Question. Do you know whether aly of this hundred weight of zinc that has been referred to by the witnesses was used upon your house? Answer. I do not know anything about it. I paid for the paint that was used upon my house. Question. Were you painting your house at that time? Answer. No, sir; my house was painted in April, about a month after I came into the department. A man by the name of Bagley painted my house for me. I gave him sixteen dollars for the outside and ten dollars for the inside, making twenty-six dollars for the whole. I bought the paint of William D. Kennedy and paid cash for it. I have the receipt, dated the 16th of April. Question. Have you done any painting on your house since that time, while you were in the yard? Answer. I have, sir. Question. When was that? 260 BROOKLYN NAVY YARD. Answer. I believe the roof of my house has been painted since, perhaps it would be in June. Question. Might not some of this paint have been used upon that? Answer. Never, sir. Question. Where did you get the paint with which you painted it in June? Answer. It was some which I had left when I painted my house in April; I bought it of Mr. Kennedy. Question. When did you go into the yard? Answer. I went on the 23d of Mlarch. At that time my house had been primed, and after I went into the yard it was finished. I got the paint from a man by the name of Saunders, in Flushing. Question. You think this hundred weight of zinc that has been referred to went out of the yard in July, do you? Answer. I know it could not possibly go out of the yard, except while we were painting the shell house; Mr. White said it went in a small boat; it could not possibly go at any other time. It was some lime before the end of the session that I was on here; I think it was in June. It was a matter of impossibility for anything to go out of that yard unless it went in that way, as was stated, in a boat; and then it could not go, only they had the privilege of going over there to do the work. Question. Do you remember any occasion when Mr. Cohane was handling two boxes of glass? Answer. I do not, sir. Question. Was Mr. Fitzgerald under your employment? Answer. He was, sir; I found him there when I went there. Question. Did you discharge him? Answer. I did the very day after I went into the yard. Question. The first day you went into the yard? Answer. The very next day, the 24th of March, I discharged MWr. Fitzgerald; I took possession on the 23d, and the next day I disrated him; but the commodore and Captain Rootes would not sign the papers. Question. How long did he continue there? Answer. I was compelled to keep him, until about the fall election, as my foreman. Question. Who discharged him then? Answer. I did, sir. Question. If you discharged Mr. Fitzgerald then, why could you not have discharged him before? Answer. I can give you my reasons if it is required. Question. Why did you not discharge him before? Answer. Because I was compelled to keep him, sir. If you want me to tell who compelled me to keep him, I can tell; but I would rather not. Question. [After consultation with the committee.] Who compelled you to keep him? Answer. Hon. George Taylor compelled me to keep him. I haive BROOKLYN NAVY YARD. 261 received several letters from him, which I have here with me. They are as followis: "WASHINGTON CITY, iMarGch 23, 1858.:' CAPTAIN TURNER: You will much oblige me by retaining Mr. Fitzgerald as foreman. This is the understanding between Mlr. Searing and myself, and I may add, the Secretary of the Navy. You will also oblige me by appointing Mr. Tenney, of the 12th ward, when in your power to do so. As a general thing, Hugh McLaughlin, master laborer, knows who my friends are, and he will confer with you at all times.' Yours, respectfully, "GEO. TAYLOR." "HOUSE OF REPRESENTATIVES, "April 7, 1858. "DEAR SIR: I understood that, as a part of the arrangement before your appointment, you were to retain Mir. Fitzgerald as your foreman. You promised to do so; and that is Mr. Searing's understanding. I am now informed that you intend to dismiss him and appoint some one in his place from New York. This is not right, and you ought not to to think of it, if you do. I trust that the original understanding will be carried out. I have just conversed with Mr. Searing, and this is his view of the matter, and it was the Secretary's view when you were appointed. In your turn you will, of course, do the best to equalize matters among the various members. "Yours, respectfully, "GEO. TAYLOR.' I have just shown this letter to Mr. Searing. "WILLIAM TURNER, Esq., MIaster Painter." "WASHINGTON CITY, April 13, 1858. "SIR: Your favor has been received. I will be much obliged for a list of the men under you, when I will write to indicate those I am especially interested in. I want only a fair proportion of the men.''In reference to Mr. Fitzgerald it was expressly understood between Mr. Searing and myself that Fitzgerald should remain, and you promised this yourself. I do not know what Mr. Kelly has to do with this matter, but I shall be pleased to see him gratified as far as it is proper; but I cannot and will not submit to Mr. Fitzgerald's dismissal; and I now give you notice that if you do remove him I will do what I can to correct it, and if you suffer you must not blame me. I desire to sustain you and to make your position pleasant; this I desire on your account as well as in respect to Mr. Searing, but, sir, I will not 262 BROOKLYN NAVY YARD. stand by and see my friends struck down by you or any other master. "Yours, respectfully, "GEO. TAYLOR. "WILLIAM TURNER, Esq." Question. Upon whose recommendation were you put into that yard? Answer. The recommendation of every democratic member of Congress from the State of New-York, with the exception of George Taylor, I believe, and a great many gentlemen from the county I belong to, Hon. John W. Lawrence, John H. Brown, and a great many merchants in New York. Question. I understand you to say that the day you went in you undertook to remove Mr. Fitzgerald? Answer. I went into the yard on the 23d, and took possession of my shop on the 24th. It was either that day or the next-within forty-eight hours after I went into the yard. There had been several gentlemen come to me and told me that this Mr. Fitzgerald was a bad man. I made up my mind and had partially agreed to let him stay before I got my appointment; but when I found out from my friends the character of the man, I at once removed him and disrated him from being my foreman, and appointed a man by the name of James Daly in his place, from New York. The papers went to the commandant's office, but Mr. Delano had a conversation with Captain Rootes, and they had agreed that they would not allow Mr. Fitzgerald to go out. The reason that they gave was that I was a green man and did not understand anything about the routine of the yard, and the man that I had appointed in Mr. Fitzgerald's place being green too, everything would be turned upside down, and they would not know where to find it. I thought that was a very good reason, and I let the matter go over. In addition to that I received these communications from Mr. Taylor, which tied my hands, and so I thought I would let Mr. Fitzgerald remain. Question. Was Mr. Fitzgerald aware of your disposition towards him? Answer. Yes, sir; I told him what I intended to do. Question. On what terms have you and Mr. Fitzgerald been since then? Answer. I have never let him know anything more of my business than I could help. Question. Have you been friendly or unfriendly towards each other? Answer. I treated him the same that I would any other man; I paid no particular attention to him, but went along and attended to my own business. I have heard that he has made threats that he would have me out of the place if it cost him his life. Question. Did you ever have any controversy with Captain Rootes in that yard? Answer. We had some high words at one time, I believe. BROOKLYN NAVY YARD. 263 Question. Did you ever have any controversy about discharging men that were idle in the yard? Answer. One day, when I was attending to my business, Captain Rootes came up to me and said to me that there were three men that he had found idling, and he wanted me to discharge them. I told him that I would if he would go and point out the men to me. I went with him and he pointed out the men, and then I hesitated for a moment. I asked the men if they were idle, and hesitated about discharging them;' and I do think that I might have said to Captain Rootes that I would not do it. But I went directly and dismissed the men; and Captain Rootes, after he had cooled down, came to me and said that if these men would make an explanation to him, he would not have them suspended from the yard. I believe they did make explanations. I dismissed them, but he put them on. That is all the conversation that we had upon that occasion. He told me that there were three men idling around the ship, and I dismissed them at once; and afterwards he wanted me to put them on again, and I would not do it. He would get excited sometimes, and afterwards had a feeling of sympathy for the men. Question. Were you ever suspended from the yard? Answer. I was, sir. Question. Why? Answer. My men were painting this very building upon which Captain Rootes said they were idle-they were painting the marine barracks. I was a stranger in the yard and did not know the officers. One of my men was standing on a ladder reaching over to paint a window, and I saw a man come up to him, who I was afterwards informed was Colonel Harris, and he raised his umbrella and was about to hit the man. The painter jumped and came very near falling down. I went up to this man and said, "Sir, I do not allow any man to interfere with my men." Said he, "Who are you, God damn you?" Said I, "Damn you, I am master painter." I only gave him back what he gave me; and the next day, without any trial or anything of the kind, I was suspended. A few days after I was reinstated by the department. Affidavits came on here to show that I was in the right. He had no cause to interfere, and had nothing to do with my department. He was colonel of the marines; but I did not know that it was Colonel Harris, or I should not have spoken as I did to him. I afterwards learned that it was he. I was suspended for a few days or perhaps a week. By Mr. Bocock: Question. Did you ever get any brandy or whisky from Mr. Teller? Answer. Mr. Teller purchased some and sent it to the boat for me at my request. I asked him to do it, because he knew where to get good brandy better than I did.'I believe it was the second time I ever spoke to him. Question. What sort of spirits was it? Answer. Brandy, sir. Question. Did you ever get any whiskey from him? Answer. No, sir. 264 BROOKLYN NAVY YARD Question. Neither as a present or on purchase? Answer. No, sir. The only article which I ever got from him was five gallons of brandy, and that was a very good article I thought. Question. Did you ever appoint a man under you in the navy yard upon the recommendation of Mr. Teller? Answer. Not that I know of, sir. Question. Do you not remember that MIr. Teller recommended somebody to you? Answer. I do not think he ever did. Mr. Samuel Willis, the appraiser, recommended a man to me, whom I appointed. I do not think Mr. Teller ever did; but I may be mistaken, as I get so many letters. I get twenty or thirty some days, perhaps. Question. Did Mr. Donnelly ever recommend a man for appointment under you? Answer. Yes, sir. Question. Did you appoint the man whom he recommended? Answer. A friend of Mr. Donnelly' s brought me a letter requesting me to appoint him in the place of a man who was taken sick. I did not appoint the man; his name was O'Brien. I believe, upon further recollection, that Mr. Teller did send to me to appoint him. Question. Did you ever give him any work in the yard for a longer or shorter time? Answer. No, sir; he never worked for me. Question. What particular obligations were you under to Mr. Teller to appoint the men that he should recommend to you? Answer. None at all, sir. Question. Where does Patrick Fitzgerald live? Answer. I do not know, sir. Question. How far is your house from Williamsburg? Answer. Sixteen miles, I think. I do not go by Williamsburg to my house. I take the boat at Fulton market, on the New York side. Question. What sort of communication is there between Williamsburg and your house where you reside? Answer. There are roads running out for wagons and carriages, but there is no public communication. There are stages that go out to Newtown; but I live at a place called Little Neck Bay, or Bayside. I go on the Flushing railroad, which connects at Hunter's Point with the steamboat which leaves Fulton market. Question. Do you know whether Mr. Fitzgerald lives at Williamsburg? Answer. He lives at Brooklyn; I do not know what part of it. There is a car runs direct across from Brooklyn, and there are cars branch off in different directions. I know he lives in Brooklyn, but in what part of it I do not know; it is some distance from the yard, I should think; I have heard him say that it took him pretty near an hour to get there. By Mr. Groesbeck: Question. Are you on the direct route of his house, going to Williamsburg? Answer. Yes, sir, the direct route of this railroad. There is a BROOKLYN NAVY YARD. 265 railroad runs through Brooklyn, which branches off indifferent places, and it runs up as far as'Green Point, and it runs within a mile of the Flushing railroad, and there it ends; then you cross over a river to get to the Flushing railroad. You might go this way, I suppose, to the Flushing railroad by walking a mile. Question. Did you levy a collection on the men at any time to send Mr. Searing to Washington? Answer. Never, sir. Question. Do you know whether the men did at any time make a contribution to send Mr. Searing to Washington to have their salary raised? Answer. No, sir. Question. Did you ever make a promise or arrangement to appoint the men Mr. Teller recommended to you? Answer. No, sir; I do not think he ever asked me, with the exception of recommending a man to fill a vacancy caused by the sickness of one of my men, the man whom Mr. Willis sent me. I think he sent a letter recommending a man by the name of O'Brien. He asked me if I would not put this man on, but I refused to do it. FEBRUARY 14, 1859. WILLIAM TURNER recalled. By Mr. Ready: Question. Do you know anything about any money being raised from the men in your employ to aid in defraying the expenses of Mr. Searing' s canvass last fall? Answer. I do, sir; the circumstances are these: I was a member of the executive committee of Queens county, and that committee had not funds enough to pay their printing bills. I told my men that as Mr. Searing was running for Congress, and the most of my men were from his district, I wished that they would (as the other men in the yard did not contribute anything to the election) give something to defray the expenses of printing. Some of them gave something and some of them did not. Those who gave put down just what they pleased, and I took it and devoted it to the expenses of printing. Question. Was it a voluntary contribution? Answer. Entirely so. uestion. Was it never made a cause of removal with any man, that he declined to give any money in this case? Answer. Never. uestion. Do you know anything about some men going off after roll-call to attend political meetings; I mean men employed in the yard? Answer. I do not. I have stated to the committee already that I attended one of these public meetings in the day time, and I asked some of the men to go with me; but when they went out of the yard they checked themselves, and were not paid by the government. By Mr. Bocock: Question. Has anybody approached you in relation to your testimony here? 266 BROOKLYN NAVY YARD. Answer. No, sir. Question. Has nobody asked you about what sort of testimony you would give in relation to Mr. Saunders, the navy agent? Answer. Yes, sir; but not since I have given my testimony, but previous to it. Question. Who approached you upon the subject? Answer. Lieut. Barnet asked me to state to the committee that such and such things occurred; I told him that I would answer any question that the committee would ask me. This Lieut. Barnet was at one time the inspecting officer of the Brooklyn navy yard. He spoke to me in reference to some articles which he said had been sent to my department, and something about Mr. Saunders not giving me the requisitions on parties from whom I could purchase articles at a lower rate than they were purchased at. I told him that if the question was asked me I would state all that I knew about it. That is all that was said to me. In conversation with Lieut. Barnet, since I have been in town here, he has asked me to say to the committee that Mr. Saunders compelled me to go to a certain place to purchase goods when I could purchase them at a lower price somewhere else. Question. Is there anything true in such a statement? Answer. Mr. Saunders always gave me a requisition upon any place that I asked. In making a requisition for articles in my department to be obtained upon open purchase, tools, for instance, or any articles that I want to have selected, I state on the requisition "to be selected," and it goes to the navy agent in that way. He may, perhaps, send me to Mr. Secor, or to Mr. Kennedy, or to any other place that he may choose to recommend. But if I should conclude that I could get a better article at Mr. Kennedy's than at Mr. Secor's, and should ask the navy agent to let me go there, he would always do it; he has never compelled me to go to any place. By Mr. Ritchie: Question. Did Mr. Barnet desire you to state anything more than was within your own knowledge? Answer. No, sir. He called to my mind an item in regard to some packages of gold leaf which I had required in a great hurry, to be used upon the Wabash. He wanted me to state that I could have got this gold leaf at a lower price. I did not know anything about the price, and hence I could not make any such statement. By Mr. Bocock: Question. When you told him that you did not know anything about it, was not that sufficient for Lieutenant Barnet? Answer. He wanted to know if a party in Brooklyn did not offer it to me at a lower price. I told him that, after I had received this article from the navy agent, a man by the name of Wallace sent me a circular offering to sell gold leaf at about $7 50 a package, while this I had received had come from Mr. Kennedy, and had cost $8 50 a package. Question. Would you understand from what Mr. Barnet said to you that he wanted you to state certain things to the committee upon the supposition that you knew about them? BROOKLYN NAVY YARD. 267 Answer. Certainly; he would never think of asking me to state anything I did not know. Question. Now, in reference to this matter of the paint being taken from the navy yard; have you ascertained when you was here in Washington, last spring or summer? Answer. I have not examined the books myself, but Mr. Artemas Jones, a witness who is present, has examined the books at Willards', where I stopped, and can tell at what time my name was registered there. Question. Is Mr. Graham your superior? Answer. Yes. sir. Question. Do you know anything about the manner in which his duties have been discharged? Answer. I know nothing against him. I know that he has put off work which I thought ought to have been done, and he has given as a reason that he wanted to keep down the expenses of his department. Now there were the ship houses and other buildings, the roofs of which were suffering for want of paint; they were not painted because Mr. Graham said he did not want to raise the expenses of the department. Question. How do the present expenses of the department compare with former years? Answer. I could not tell that. WILLIAM TURNER. No. 77.-JOHN KELLY, NEW YORK. FEBRUARY 12, 1859. JOHN KELLY called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In the city of New York. Question. What is your business? Answer. I am sheriff of the county of New York. Question. Have you been recently a member of Congress? Answer. I have. Question. How long were you a member of Congress? Answer. From the 4th of March, 1855, to the 25th of December, 1858. Question. Were you in the habit while you were a member of Congress of recommending persons for appointment in the Brooklyn navy yard? Answer. Yes,, sir. Question. When you made a recommendation for a man to be appointed there, did you require the master workman to appoint him without reference to his qualifications? Answer. No, sir, I cannot say that I ever did; I do not recollect of any such instance. Question. Did you take any steps to inform yourself of the man's 268 BROOKLYN NAVY YARDo qualifications as a workman or a mechanic when you recommended him as a mechanic? Answer. Yes, sir; but generally the men whom I recommended were mere laborers; the most of them, at all events. Question. Do you recollect any case of your recommending a man for appointment, and after he was appointed of his being turned out again? Answer. Yes, sir. Question. In consequence of unfitness for his place? Answer. I remember no particular case of that kind. Question. Do you remember of any case of a man being appointed upon your recommendation, and then being turned out because of his dissipation, and you being informed that he was incompetent, still insisted upon his being kept in his place, although he was incompetent? Answer. I do not recollect anything of the kind. By Mr. Ritchie: Question. Did you ever have any controversy with any of the masters in the yard in regard to the discharge of men whom you recommended for appointment? Answer. I think I did have. Question. What was that controversy, and with whom? Answer. It was no personal difficulty. I complained of the man-er in which some of the men were treated whom I recommended. I think one Berry, who was formerly the master painter, refused to employ a man whom I recommended, and I aided and assisted in having Berry turned out, because I thought the manner in which he treated not only me, but others, was rather disrespectful. Question. What reason did he give for that? Answer. The case was this: I recommended to him a man by the name of Grace, whom I sent to him with a recommendatory letter. I do not think there was anything threatening in it. My impression is that it merely requested him to employ Grace. He did not do so, but told Grace-at least so Grace afterwards told me-that he might go back and tell John Kelly to go to hell, as he would not employ him at all. Question. Grace told you that, did he? Answer. Yes, sir. I asked Grace if he was sure that Berry said so, and he said he was sure of it, and that Berry desired him to carry the message to me. I thought that was rather harsh language, as I had given him no cause of offence. I complained of it, therefore, to the Secretary. Question. Did you ask Berry whether he had used that language or not, before you complained to the Secretary? Answer. No, sir. I recollect that he afterwards came to me for an explanation. He said that he understood I had complained to the Secretary. I said that I had. lie asked my reason for doing so. I said that he had treated Grace badly, and had treated my message with contempt. BROOKLYN NAVY YARD. 269 By Mr. Groesbeck: Question. What did he say to that? Answer. He denied ever having said what Grace told me had said. He said that Grace was in the habit of getting intoxicated, and it was for that reason that he had discharged him, having found him drunk in the workshop. He told me that Grace came to him and told himt that if he did not employ him he would use all my influence to get him turned out. Now I had given no authority for saying that. By Mr. Ritchie: Question. Was Berry turned out in consequence of your application to the Secretary? Answer. I think not; he was not turned out until nearly three months afterwards. He was then turned out and a man named Turner was put in his place, upon the recommendation of Mr. Searing. By M3r. Bocock: Question. Did you know, before you made complaint to the Secretary, that Berry had discharged Grace because he was -in the habit of getting drunk? Answer. No, sir; Berry told me, I think, afterwards that that was the reason he had done it. Question. Did he not tell you before? Answer. I believe not; I am not sure. Question. Did you apply for the removal of any other master mechanics? Answer. Yes, sir; I applied for, think it was subsequently, the removal of a man by the name of McManus, who was master blockmaker. Question.'Upon what grounds? Answer. Because he had treated me with contumely; I had heard that he had told the persons whom I recommended to him that they might go to the devil, or words to that effect. Question. Then it was for the use of this harsh and insulting language that you complained? Answer. I do not think I made it a particular issue with Mr. McManus. Buthe was afterwards removed, I think at the solicitation of Mr. Sickles, and a man appointed in his place by the name of Fox. It may be well for me to say, just here, that before I complained to the Secretary about McManus I heard that he was in the habit of getting drunk and locking himself up in the office. I heard it fioro pretty good sources, and I gave it as I got it. Question. Did you ever, on any occasion, insist on having a man put in, or reappointed after he was turned out, knowing at the time that he was an incompetent man? Answer. No, sir; not to my knowledge. Question. Do you remember writing threatening letters to Lawrence Cohane in relation to appointments? Answer. I do not recollect of any thing of the kind. 270 BROOKLYN NAVY YARD. Question. Did you ever have have any difficulty with Merrifield about appointing men? Answer. Not to my knowledge or recollection. Question. I will read to you a portion of the testimony of Lewis W. Berry. He had said that members of Congress had threatened him in regard to incompetent men; that if he did not employ them he should be removed. The testimony goes on: "Question. By whom were these threats made? "Answer. John Kelly, of New York, made that threat. "Question. State the circumstances under which it was made, and what gave rise to it? "Answer. It arose in this way: Therd was a man working in my department who was a drunkard. Now, I thought a great deal of Mr. Kelly. He appeared to he very much of a gentleman, akd I felt disposed to do what I could to oblige him; I therefore warned this man that he must behave himself, or I would not employ him. At last I was forced to discharge him. He would continue to get drunk, and would lay for hours in my office in a rum fit, and I therefore discharged him. Mr. Kelly told me that he wanted me to take him on again. I told Mr. Kelly I could not employ any such man as he was, as he had disgraced himself, and was a disgrace to any department. Mr. Kelly said he could not help that, but that the man must go to work there again. I told him I could not employ him again. Said he,'you may set it down as a fact that I will have you removed if I can, if you don't put that man on again.' I told him that I did not care two snaps of my finger about remaining; that I really thought it would be a relief to me to get out of the place. "Question. How long was this before your removal? "Answer. Two or three months, perhaps." Question. Do you recollect anything about that? Answer. I did not know about his being drunk. He may have been; but I had known him for ten or twelve years, and had not known of his getting drunk, nor never saw him so. By Mr. Ritchie: Question. Did you ever have any such conversation with Berry? Answer. I do not recollect of any such thing. In every interview that I ever had with Mr. Berry he always treated me very roughly. Hence the reason of my finding fault with him, either in person or by letter. I had no man but this man Grace working in his department who had been appointed on my recommendation. And I thought it pretty hard that he did not permit one man to work there for me. I think he also assigned as a reason that the patronage of the yard belonged to Brooklyn; that he himself was appointed upon the recommendation of a member from Brooklyn, and he was not under obligation to any body; this was in substance his conversation outside of Brooklyn. By Mr. Bocock: Question. When did you make complaint against him? Answer. I do not know exactly. Question. How long was it before his removal? BROOXLYN NAVY YARD. 271 Answer. I think about three or four months. I think he was not removed upon my complaint, solely. Question. How many men from your district are employed as mechanics in the navy yard? Answer. I do not know. Question. A large number or small number, as compared with other districts? Answer. So far as the patronage of the yard is concerned, at least since I have had anything to do with it, at least one half of it was given to the Brooklyn district. I think there were about twenty mechanics from my district over there, or perhaps more. Question. Do you know anything about the character of those twenty mechanics as workmen? Answer. I think they were good workmen; I do not know of my own knowledge that they were, but I think so. Question. The larger portion of your patronage, then, was among the laborers? Answer. Yes, sir. Question. Why was that? Answer. Because Mr. Murphy, the master dock builder, was appointed at my solicitation, and the greater portion of his work was done by laborers. Question. Are you aware that a number of mechanics and laborers from your district were retained in the yard, though they were inefficient? Answer. No, sir. Question. Has such a thing as that never been brought to your attention? Answer. No, sir. Question. Does your district abound in skillful mechanics or not? Answer. I think it is a mechanical district. Two-thirds of the population of the district, I think, are mechanics and laborers. Question. Do you remember to have recommended a man by the name of Kelly for appointment under Mr. Berry? Answer. Yes, sir. Question. What sort of a man was he? What was he recommended for? Answer. I think he was a chair painter and gilder, and I think I recommended him as such. I think he was a resident of the Brooklyn district when I recommended him. He was a brother of Alderman Kelly, now dead. This circumstance induced me to ask Berry to put him at work. He put him at work for two or three weeks and then discharged him. Question. What:occured between you and Berry about that? Answer. Nothing. Question. Did you complain to the department about his removing Kelly? Answer. I think not; I do not now recollect of doing so. The only difficulty I had with Berry was that about Grace. My complaint to the department was principally on account of the man's treatment of me rather than anything else. I did not complain that he did not 272 BROOKLYN NAVY YARD. appoint any body at my solicitation, but of his manner and roughness, -and his insulting tone towards me. Question. Did you ever tell Merrifield that if he did not give you your share of the patronage of the yard you would have him turned out? Answer. No, sir; I do not think I ever said so. The patronage of that yard was not worth the snap of my finger to me politically; but occupying the position of a member of Congress, as I did, men would apply to me to get them a place in the yard. Some of these men, I understood afterwards, raised some money to aid me in my election. When those who had charge of the matter came to me with it I asked them where they got it; they told me they got it of the men in the navy yard; I told them to take it back and give it to the men who had raised it. I believe there is but one man in that yard, and that is Nicholas Murphy, the master dock builder, who paid any thing at the last election; he came to me with it, and I told him I should have nothing to do with it. There was a committee appointed for the purpose of getting contributions for the election, and I think Murphy contributed something to that committee, what ii was I do not know; and I think the civil engineer before Mr. Gr,. ham, who also was named Murlphy, gave something to the election committee, but he gave nothing to me, nor did any one else in the yard. Question. How long have you been acquainted with the management of the navy yard? Answer. About eight years perhaps. Question. During that time have appointments always been made on political grounds? I mean has it been so during all that time? Answer. Mostly so, I think. If I recommended a man there it was principally on that ground, together with the sympathy I had for the condition of the men. Question. Have you known what has been the management of the yard under all parties? Answer. Yes, sir; when the whigs formerly had the yard they would, of course, turn out the democrats, every man of them; they would not permit them to work there; and as soon as the democrats got into power again they would turn out the whigs, and so it has been in all the offices in New York, post office, custom-house, &c.; and so it is to-day in the appointment of the police. The republicans appoint all republicans; it is very seldom that a democrat can get a place, if he does, it is through some extraordinary influence. Question. In the management of politics in New York are offices made a matter of party patronage by all parties? Answer. Yes, sir; Mr. Hays, who has been recently elected comptroller, has turned out all the democrats in his office and put republicans in their places; or he will do so, he cannot turn them all out at once. He will turn out a few at a time, but they all expect to go, and so it is with the distribution of the patronage of the State government; the republicans turn out the democrats, and when the democrats get the power they turn out all the republicans., Question. Are the parties in New York in the habit of using money in their canvasses to promote the success of the party? Answer. Yes, sir, they are; all parties use it. JOHN KELLYo BROOKLYN NAVY YARD. 273 No. 79.-CHARLES R. GRAHAM, NEW YORK. FEBRUARY 14, 1859. CHARLES R. GRAHAM called and examined. By Mr. Bocock: Question. What is your official position? Answer. Constructing engineer in the navy yard at New York. Question. What are the duties of that position? Answer. To superintend the construction of all the buildings and wharves, the filling up of the grounds, and keeping the various buildings in repair. Question. How long have you held this office? Answer. Since May, 1857. Question. I)o you know upon whose recommendation you were appointed? Answer. Yes, sir; upon the recommendation of the New York delegation. Question. Have you given your attention to the duties of the office since that time? Answer. Yes, sir; constantly. Question. In what business were you engaged before that time? Answer. I was a clerk in the assay office, and acting surveyor in New York. Question. Had you a partner in your business as a surveyor of the city? Answer. Yes, sir. Question. Has that partnership continued since you have been in the navy yard? Answer. Nominally; but I have never attended to the business. I may add that I was one of the assistants also upon the Central Park up to November, 1857, subsequent to my appointment. Question. How much of your personal attention did you give to that business after you were appointed? Answer. Latterly I was not obliged to give any, because the surveys had been completed, and I was permitted to employ assistance to do the work, paying the money out of my own pocket. There was no appropriation made for this work, and we did it with the expectation of getting one; I made the advances out of my own pocket. I had three or four gentlemen employed to do the work. I had laid out the survey. The only thing that I was required to do was to overlook the maps as they were handed in, and see that they were correct. Question. Are you a regularly educated scientific engineer and surveyor? Answer. I have never served any time at a military academy. I have been a student of engineering for six years. I was formerly in the naval service, where I received my mathematical education. Question. Are you able to draw plans? Answer. Yes, sir. Question. What is the business of Mr. Hastings? Answer. Mr. Hastings is nominally my assistant. 18 D 274 BROOKLYN NAYY YARD. Question. What does he do? Answer. Really I do not know what he does. I scarcely ever see him; sometimes not for a month at a time. He has been retained there in opposition to my wishes. I have demanded his removal, but I have never been able to accomplish it. Question. What is his salary? Answer. $1,500 a year. Question. You say he does very little service? Answer. Very little; he is in the yard every day. He inspects the various articles that are brought in. I have never attended to that business. Question. Who draws the plans for continuing the work? Answer. Mr. Lee is the draughtsman. Mr. Lee has attended to all the duties of an assistant ever since I have been there, Question. Is it the practice of the yard for those at the head of the different branches or business to purchase the articles you want? Answer. Occasionally open purchases are made when the articles are not upon the contracts. If any merchandise or any timber is required, a requisition is made out, and the navy agent purchases it. Question. Does the navy agent or the master workman make the purchases? Answer. The navy agent in my case. I have never made a purchase since I have been in the New York yard. Question. Do you know the practice of other heads of departments, the naval constructor and the master workmen? Answer. I think the master workmen, the naval constructor, and the chief engineer of the yard, sometimes make purchases. Question. When articles are purchased for your department who makes the purchase? Answer. The navy agent. Question. You say that Mr. Hastings is an inspecting officer; is it his duty to look into the quality of articles purchased? Answer. Yes, sir; but if they are required by the master mason for his department he also inspects; the master carpenter also inspects the timber for his department, &c. Question. How often are you there in the yard? Answer. Every day of my life when I am in health, or when absent as I am now. I do not think I am out of the yard ten days in the year? Question. How many hours of the day do you usually spend there? Answer. From four and a half to five hours, sometimes more. I usually reach the office by ten o'clock or a little after, and remain until three or half-past three. All my duties are not performed at the yard. Occasionally I do work out of my office. My office at the navy yard is a kind of a rendezvous; I have no library there, and consequently I should not be able to prosecute my studies. Question. You devote so many hours in the yard, and also perform some of the duties of your official position at your own house? Answer Yes, sir; for instance, I usually devote an hour or two to study every day at home, and have done this ever since I have been in that position. BROOKLYN NAVY YARD. 275 Question. Does your position make it incumbent upon you to see that the work in your branch of business is faithfully executed? Answer. Yes, sir. Question. Do you superintend the master workmen under you? Answer. Yes, sir. Question. Who are the master workmen under you? Answer. The master mason, the master house carpenter, the master dock builder, and the master laborer. I had a master stone cutter, but I dismissed him some time ago and broke up that department. I have had a great deal of difficulty with my master workmen. I was opposed to the system of appointments when I first went there, and I have made something like forty reports to the bureau in opposition to the system. I recommended that the head of the department should have some control over the work; that he should have the selection of his own officers, in order to get persons competent to do the duties. Question. Have complaints been made to you of incompetent men being employed under master workmen? Answer. Yes, sir. Question. What has been done in such cases? Answer. Some of the men have been dismissed. Question. By whose direction? Answer. By my own and by that of the commandant of the yard. Question. Have you ever permitted incompetent men to remain under your master workmen, when the fact has been brought to your knowledge that they were incompetent men, in consequence of political or any other influence? Answer. I do not think that I have, sir. Question. Has Mr. Sickles or any other member of Congress insisted upon your retaining incompetent men? Answer. Never, sir; I have reported incompetent men, and endeavored to have them removed, but have been unable; I have had an excellent foreman, the foreman of the stone cutters, turned out without my signature, and against my protest, and another man put in his place. Question. How was that done, and when? Answer. When Commodore Kearny was in the yard, representations were made to him that the master was entitled to the office of foreman; I resisted it for a long while; but finally a requisition was taken to the commodore, and he signed it without my signature; I never recognized the man at all; I considered it an insult to myself. Question. Did you know anything about an agreement among members of Congress to divide the master workmen among each other? Answer. I know that was the understanding, that appointments should be distributed between the different members of Congress, but there was no proportion arranged. Question. Have you ever received any order from the Naval Department, from the bureau, or from the Secretary, to divide them equally? Answer. No, sir; the Secretary of the Navy has never issued such an order. 276 BROOKLYN NAYY YARD. Question. Do you know anything about levying contributions upon the men for political purposes? Answer. Not in my department; I understand that they were about doing it previous to the November election. A number of men came to me and told me it was proposed to raise something to aid in the election of Mr. Sickles and other members. I told them that so far as Mr. Sickles was concerned I knew he was opposed to it; I saw Mr. Sickles that evening and stated to him what I had said; he told me I had acted properly; no money was raised to my knowledge. Question. Have you not yourself been instrumental in getting up contributions among the men under you? Answer. No, sir, never, for any purpose; I never have raised a dollar since I have been in the yard. Question. Do you know anything about subscriptions being raised to send men to Washington? Answer. Never, in my department. Question. Did you know of it in any other department? Answer. No, sir, only from hearsay. By the Chairman: Question. You say you have turned your attention somewhat to mathematics for the last six years; are you a civil engineer? Answer. Yes, sir. Question. What works have you constructed or supervised the construction of? Answer. I superintended the laying out and division of the Central Park, at New York; I was employed there for eighteen months; I have also acted as city surveyor, and have opened quite a number of streets in New York, and have widened Duane and other streets. Question. Do you draw any distinction between the duties of a civil engineer and those of a surveyor? Answer. Civil engineering is the higher branch; surveying is elementary, as it were. Question. Do you call the laying out of grounds within the duties of a civil engineer? Answer. Such work as that upon the Central Park, I do; draining it, building bridges and observatories. Question. Have you had any part in the building of bridges and the construction of observatories? Answer. Only laying out and making plans for them. Question. Have you ever aided or supervised the construction of works of internal improvement? Answer. None, sir. Question. Or improvements in navy yards or dock yards? Answer. Not before I went into the yard. Question. What works were constructed under your supervision in the navy yard? Answer. I have built three buildings since I have been there; about 200 feet of launching-ways, and 200 feet of the quay wall. Question. Have you built any coffer dams? Answer. No sir; I have not built one entire; I have one in the course of construction now. BROOKLYN NAVY YARD, 277 Question. Had you ever performed similar duties before you went into the navy yard? Answer. No, sir, I had not. Question. Were you not appointed upon the recommendation of Mr. Sickles, and for him? Answer. No, sir; not only upon his recommendation, but upon that of a number of others. Question. Were you not regarded in the yard as his friend, and as owing your position mainly to him? Answer. I was regarded as such; but many others concurred in the nomination-as Mr. Cochrane, Mr. Taylor, and others. Question. Was it not understood that the heads of departments recommended persons to office for political reasons? Answer. Yes, sir; but political influence was not the only aid which I had, for I had testimonials from some of the first engineers in the State of New York. Question. Had you any controversy with your superior officer with regard to the launch-ways? Answer. Yes, sir. Question. Where did you commence their construction? Answer. I commenced them in the ship-house. Question. Were any of your orders countermanded by Commodore Smith? Answer. No, sir. Question. Was there a correspondence upon the subject? Answer. Yes, sir. Question. What was the purport of it? Answer. The final order was, that I should commence where I pleased; but, in his opinion, the outer terminus was the, proper place to commence. Question. Were you not told that you would be held responsible for it? Answer. Yes, sir; and that responsibility I am ready to take. I think it can be proved by ninety-nine engineers out of one hundred that I was correct. Question. Had you any correspondence with Commodore Rootes with regard to allowing men to be excused from the roll-call? Answer. Yes, sir. Question. State how common that practice was of allowing men to be excused from the roll-call? Answer. Captain Rootes forgot that when he signed all those papers it was stated in them that the men should be excused from muster. I requested that Mr. So-and-so should be appointed dock builder, and that he should be excused from muster. He assented to this as soon as the matter was brought to his attention, having forgotten that he had authorized it. Question. Why were the men excused from muster? Answer. Because they were engaged at a considerable distance from the yard, and it would be inconvenient for them to meet at the muster office. 278 BROOKLYN NAVY YARD. Question. How many men were excused from muster in your department in February, 1858? Answer. I think about twelve or fifteen. Question. Was there any check to show that these men were engaged in the public business? Answer. Yes, sir; the duties of these men were these: They were rated as dock builders and masons, because that had been the custom of the yard. They were in reality inspectors. We were receiving large quantities of earth-ten or twelve thousand cubic yards per week. These men remained on duty, spelling each other, from five o'clock in the morning until seven in the evening, receiving the earth, and an assistant engineer reported their time to me. There were two inspectors at each dock at the time. Question. Did you know any frauds to be committed in filling in that earth? Answer. Enormous frauds were perpetrated before I took charge of it; but a short time afterwards I broke up the system and adopted the system of inspectors, which I believe put an end to the frauds. Question. To what extent did the frauds go? Answer. It is hard to tell. The system then was this: A number of tickets were issued for loads of gravel and loads of stone, worth from nine to thirty-four cents each. They were lying in the office in large quantities, and only required for use the signature of an irresponsible clerk. These tickets were given to the inspectors to deliver to those bringing the earth. They passed current in the groggeries in the neighborhood, just as money would. The inspectors could give two tickets for one to the contractors if they felt disposed. Question. To what extent, as near as you could ascertain, was this fraud carried? Answer. I have no idea. It was broken up very shortly after I went there. Afterwards a demand was made upon the government of about $2,500, which I succeeded in defeating. It was referred to a board at my suggestion, and the board reported unfavorably. Question. Were you not in the habit, with the men in your department, of attending political meetings during the last election during working hours? Answer. No, sir; I have been with them at other times. Question. When? Answer. After hours at night. The men were not obliged to go; I requested them to go occasionally to our meetings. Question. How many master workmen were under your supervision at that time? Answer. Five-master mason, master house carpenter, master dock builder, master stone cutter, and master laborer. Question. About how many men were employed by those masters? Answer. I presume about six hundred men. Question. Were any of those men selected by you? Answer. Yes, sir. Question. What proportion of them? Answer. I do not know exactly what proportion. I never selected any men for myself. Members of Congress made application to me to BROOKLYN NAVY YARD. 279 put men on; Mr. Sickles, for instance, Mr. Cochrane, and others would ask me, and I have endeavored to do so. Question. What proportion of the men were appointed by you, and what proportion by the master workmen? Answer. That I could not tell. I presume that I selected one-sixth of the men. They were put on at my solicitation; but none for any service to me. Question. You applied to the master workmen, and they appointed the men? Answer. Yes, sir. When I first went to the yard the constructing engineer had the power of appointment entirely, and that is still believed to be the case very generally in New York. Persons would apply to me just as they were in the habit of applying to my predecessor; and when an application was made which I thought particularly deserving, I would send to the master workmen and request them to put the man on. I never put them on when the department had not decided that their services were necessary. Question. You presume that you selected about one hundred of these men? Answer. Yes, sir; there may have been one hundred. Question. Had you any conversation with Commodore Rootes at any time? Answer. I had, sir. Question. Did you know what led to his removal? Answer. No, sir. Question. Did you not know that complaints were made that he interfered with the number of men in the yard, or with the increase of the number of men in the yard? Answer. I do not know that I heard that he was removed because he complained of the number of men who were taken on; but I heard he was removed on account of his interference with the men in other departments besides his own. Question. Do you not know the cause of his removal? Answer. That was understood to be the cause of his removal. He was exceedingly unpopular, and a number of applications were undoubtedly made to the Secretary to have him removed. Question. Do you not know that he was removed on account of his endeavor to prevent the yard from being unnecessarily packed with men? Answer. No, sir; I do not. I never had any conversation with Captain Rootes upon the subject, and I never heard it from anybody else. I had a correspondence with Captain Rootes, and was always on the most friendly terms with him. Question. What was the course adopted when you bought articles on open purchase? Answer. A requisition was made out, signed by me, signed by the commodore, and sent to the navy agent. In only one or two instances have I requested that the articles should be purchased of a particular person-in purchasing some timber, and in purchaing some pipes for draining. If I wished to purchase anything of any magnitude I always wrote to the commodore requesting the permission of the 280 BROOKLYN NAVY YARD. bureau to make the purchase. I did this because I knew that I was no favorite, and was determined to take care of myself? Question. What do you mean by taking care of yourself? Answer. I mean that I knew from Commodore Smith's manner to me that he was not my friend, but was anxious to have me removed. I knew that Mr. Hastings was anxious to be my successor; that he was very anxious to have me removed in order to receive my place, and I was always very cautious. I have never meddled with any money matters since I have been in the yard. Question. Do you not know that the master workmen are in the habit of making purchases upon their own requisitions? Answer. No, sir; the masters in my department make requisitions, which, after approval by me, are sent to the commodore for his sanction. Question. Do you not know that the master workmen have then gone and made the purchases? Answer. Yes, sir; in some instances. Question. In that case is there any check to prevent collusion between the master workman and the person of whom he obtains the goods? Answer. I presume the navy agent is a check. If a bill was presented to him which appeared excessive he would not sign it. I have withheld my signature often from bills for that reason. Question. How frequently? Answer. I have done it several times, insisting upon a reduction in the price. Question. When articles were purchased by the master workmen themselves, was the price generally higher or lower than the regular price? Answer. The only masters who have ever made any purchases in my department were Messrs. Cohane and Sturgiss. I believe them both to be highly honorable men; I never questioned anything they did. Question. What bills were they that you rejected then? Answer. A bill for timber in one instance; and recently, within two or three months, I have rejected several bills which I regarded as excessive. Question. From whom were the purchases made? Answer. The first was from Wesley Smith, of New York, who furnished some lumber at a price I considered excessive and which he reduced in consequence of my objections; the other was from Mr. Brown, who furnished some timber on open purchase; I thought the price he asked for 11-inch yellow pine stuff excessive, and I withheld my signature. Question. Was it your duty to look to the price? Answer. I regard it so when it is excessive. Question. When the requisition is made upon the navy agent, and the article comes in in that way? Answer. Yes, sir; Mr. Brown has a contract for the present year with the New York yard; we wanted a heavy floor for the store; the first floor was 11 inches and too thin, and we thought that 1- or 2 BROOKLYN NAVY YARD. 281 inches would be better; so we entered into an agreement with M3r. Simpson, the agent of Mr. Brown, that if we took this two-inch stuff, he should not send on the 1I-inch stuff contracted for; he charged in New York the market price and nothing more than that for that floor, and the floor was sent in; the 14-inch stuff in the contract will not be sent in. Question. You state that you know that Commodore Smith was not friendly to you; do you know the reason of that? Answer, I believe, sir, that it was because he failed in having his own engineer appointed; he desired Mr. Brown, of Norfolk, to be appointed there. Question. Did not Commodore Smith, to your knowledge, state that his objection to you was, that you had had no experience as a constructing engineer? Answer. Yes, sir. Question. And that you were appointed simply for political reasons?. Answer. No, sir; Commodore Smith never attempted to ascertain whether I was competent or not; he was actuated entirely by prejudice; when I first went there and offered him my hand, as a gentleman would to another, he turned his back upon me. Question. When was that? Answer. Since I have been appointed; within a year or eighteen months. Question. What led to these unfriendly relations? Answer. I am not aware excepting that I succeeded in getting this place and demanded the removal of my assistant; when I went there I considered him a competent, worthy, and honest man; but I found reason to alter my opinion and demanded his removal. Question. Upon what ground? Answer. Upon the ground of inefficiency, and I had reason to believe that he was not honest; I wrote a letter to the department demanding his removal, and when that was refused I tendered my resignation to the Secretary of the Navy, which he could have accepted; I have resigned twice since I have been there. Question. Is there any other fact within your knowledge throwing light upon abuses in the navy yard? Answer. No, sir; the only thing I have ever objected to is the system of appointment; I do not believe in allowing irresponsible persons to select their own men; I think they should be appointed by the officers who are responsible for the expenditures. Question. What per centage of cost should you think could be saved by placing the selection of workmen and master workmen in the hands of a disinterested person, who should have power to select competent men without regard to political or other influences? What per centage of the aggregate expenditure could be saved? Answer. I think at least 25 per cent. By Mr. Bocock: Question. Did you have any correspondence with Commodore Kearny with relation to the appointment of men? Answer. Yes, sir. Question. What was the nature of that correspondence? 282 BROOKLYN NAVY YARD. Answer. I was always endeavoring to have the power taken from the masters; I have given my reasons. By the Chairman: Question. Did you write the letter now shown you? [See Appendix to this deposition.] Answer. Yes, sir. By Mr. Ready: Question. How often have you been absent from your duties? Answer. I have been to Washington twice since my appointment; I have never attended to any other business since I have been in the yard; I have been in my own office, where my name is still up, but twice during the last year; every particle of my business was transferred to the gentleman who was my assistant formerly, and who is now nominally my partner. Question. What was your business previous to your going to the navy yard? Answer. Clerk of the assay office and city surveyor at the same time; the latter was not an office but a profession, and I attended to my business as surveyor after office hours; I had ample time after 3 o'clock; I may add that I live four miles from the navy yard, and it takes an hour or an hour and a half to go there and to return; I never leave the yard except on duty; and I never go out between 12 and 1 o'clock. By Mr. Bocock: Question. Did you and Mr. Cohane have any controversy about the appointment of men in his department? Answer. Yes, sir. Question. What was that? when was it? Answer. It was before the last circular giving the masters the selection of their men; I resisted that practice; the correspondence was upon that subject; I contended that the Secretary did not desire that practice to extend to my department; and when I found that he did I withdrew my opposition, and Mr. Cohane always selected his men; I have a letter here from him to that effect. [See Appendix to this deposition.] Question. In your opposition to the plan of masters having the appointment of the men under them, did you ever bring the subject to the attention of the Secretary of the Navy himself? Answer. No, sir; my correspondence was with the commandant, as my superior officer, and was intended to be forwarded to the chief of the bureau; I wrote so many letters upon this subject that finally the commandant of the yard received a request from Commodore Smith that no more complaints of mine should be forwarded. By the Chairman: Question. Who employed the pattern makers? Answer. Mr. Gay did; he was the chief engineer in the service, and was putting up truss beams, which I contended, and which Mr. Cohane contended, belonged to my department. It was a matter which Captain Rootes might have settled at once; but he referred everything to the bureau; he was unwilling to take any responsibility. BROOKLYN NAVY YARD. 283 FEBRUARY 15, 1859. CHARLES K. GRAHAM recalled. By Mr. Bocock: Question. Did you last fall, or at any other time, have more men employed under you than you could profitably employ? Answer. No, sir, I never have; I never increased the force beyond the limit I assigned, excepting upon one occasion, the case of the carpenters; I supposed we had work for about fifty carpenters; after many importunities I increased the number to ten more; but in order to keep down the number I directed that only fifty should be mustered each day; of course the other ten would receive no pay. I had the most pressing importunities to put on still others, but I would not put on any more; in the winter we very frequently have fifty laborers on the roll, and the master is directed to muster only one-half or onethird of them, if there is only work for so many, and the others remain out and receive no compensation. Question. Is it ever the case that they are released from duty and yet receive pay? Answer. Never, sir; whenever a man goes out of the yard he is obliged to check himself for the time he is absent. Question. What other explanation or statement have you to make in relation to the matters upon which you have been examined? Answer. The taking up of the old launching-ways, composed of timber, was not commenced till the fall, and when the task was completed it was too late to use the diving-bell, as its use, advantageously, is confined to the summer months, say from April to September. The inclemency of the weather during the winter months precluded the possibility of the continuance of the work in the open air, but inside the ship-house the force employed could work steadily and with efficiency. For this reason I commenced the work upon the shore end of the ways, the final completion of the ways not being dependent upon the place where the work was commenced. I was also, in this course, influenced by the fact that, if any emergency should require the building of a ship, the ways in the house must be previously constructed, whilst, to launch her, temporary ways could be laid outside. This was impressed upon my attention from the fact that it was generally believed that two of the ships ordered by Congress would be built at the Brooklyn yard, and the faithful discharge of my duty required that everything should be in readiness to complete the order. On the opening of spring the construction of the ways at the outer terminus commenced, using the diving-bell, but the obstructions unexpectedly met with, (see my letter of November 6, 1857,) were so great, and the expense of the bell so heavy, that I deemed it advisable to dispense with the use of so cumbersome an instrument, except in the only case when really useful, that is merely as an auxiliary. Gunpowder was successfully used at such times as the officers of the yard would permit. Fearing that, from the slow progress made with the bell, the season would pass without the completion of the work, I took the responsibility to construct a coffer dam, as the result of a deliberately formed opinion, and in the discretion allowed to me by the bureau to 284 BROOKLYN NAVY YARD. the commandant and the " skill of the civil engineer." In this connexion it may not be inappropriate to say that I have ever considered that it would be unsafe, in a high degree, to trust the shifting pressure of a vessel to masonry constructed by a bell. I took no part in the removal of Captain Rootes; I entertained for him, personally, feelings of kindness, though I did at times object to his administration of his executive duties. After repeated communications to the commandant of the yard in relation to the extravagance and inefficiency of the stone cutters department, I felt it to be my duty to abolish it, which I did. My official correspondence will more fully explain this matter. Is he competent, has been the motto I have used; and I have at all times instructed the masters to report to me, at once, any case of neglect of duty or incompetency of the men; for while, as a matter of course, I would appoint men of similar political faith with myself, that faith alone has in no single instance been a shield for ignorance and idleness; my duties to the government were higher than my obligations to party. The following gentlemen endorsed my application, viz: Hon. John Cochrane, H. Fi. Clark, John B. Haskin, George Taylor, D. E. Sickles, Elijah Ward, and John A. Searing. Messrs. Searing, Sickles, Haskin, and Clark, accompanied me to the Secretary of the NavyCHARLES K. GRAHAM. CONSTRUCTING ENGINEER'S OFFICE, Navy Yard, New York, December 4, 1858. DEAR SIR: I received a note from you a few days ago (which has been mislaid) stating that you had been informed that I had given directions to the masters attached to this department not to appoint any men from your district on your recommendation, and desiring to know whether such a statement was correct. In reply, you are informed that no such instructions have ever been given by me; and as you are aware that the masters have the selection of their own men, if I had interfered in the matter I would probably not only have been insulted for my officiousness, but also reported to the department for usurpation. Your obedient servant, CHARLES K. GRAHAM. Hon. HORACE F. CLARK. CONSTRUCTING ENGINEER'S OFFICE, Navy Yard, New York, October 9, 1857. SIR: In answer to your inquiry as to the selection of workmen under me, I am pleased to state that since I received the circular bearing on that point issued from the chief of Bureau of Yards and Docks, and dated July 8, 1857, my recommendations for the employment and dismissal of men have been invariably approved by you. Yours, respectfully, L. COHANE, Master Carpenter. CGAS. K. GRAHAM, Esq., Constructing Engineer. BROOKLYN NAVY YARD. 285 NOVEMBER 6, 1857. SIR: In the report of Messrs. Sanger, Brown, and Murphy, of date June 21, 1856, in alluding to the proper method of laying the launching-ways in ship-house No. 2, the use of a diving-bell was recommended, and the work of tearing up the old timbers has commenced, with the understanding that such was to be the course of procedure in the reconstruction. I am inclined to believe, however, that this conclusion was arrived at without considering the impediments existing in the old works, which, as far as the ways themselves are concerned, would render the working of a bell almost impossible, or at any rate, by its tediousness, very expensive. Two-thirds of the work, both of the ways and the ship walls, will be in water too shallow for a bell, and the old piles which are mostly sound, (and when cut to the necessary depth may remain to form the new foundation,) are so thick that the necessary excavation for lowering the ways cannot be proceeded with conveniently without the construction of a dam and the pumping out of the water. The construction of a projecting pier at the northeast corner of the ship could alone be satisfactorily accomplished by the diving-bell. I believe, however, in view of the amount of work to be done under water, and the peculiar nature of it, that much the most economical way would be to build a dam, which, if done immediately, would afford facility for pushing the work ahead during the winter. The depth of water will require square piles, and of these there are about dnough on the schedule, while for puddling the stiff, tenacious mud eredged from the channel, which is in fact clay, may be used to advantage. I respectfully offer this suggestion to the consideration of the bureau, and enclose a tracing of the proposed work, which will, together with what I have said, explain the advantage of the dam and the advisability of adopting it. The cost of such a dram would be from $8,000 to $10,000; but as the piles could be used again for the ship-house, the actual cost would be only the half of this estimate. Respectfully, your obedient servant, CHARLES K. GRAHAM. Commodore L. KEARNY, Commandant. NEw YORK, November 20, 1858. DEAR SIR: It is represented to me that you have directed the masters in the yard not to employ any persons upon my recommendation. Will ou be kind enoughinfor by let m'meyuter whether the statement ths made to me is reliable? Yours, very truly, H. F. CLARK. CHARLES K. GRAHAM, Esq. 286 BROOKLYN NAVY YARD. No. 81. —BENJAMIN F. DELANO, BROOKLYN NAVY YARD. FEBRUARY 14, 1859. BENJAMIN F. DELANO called and examined. By Mr. Bocock: Question. What is your official position under the government? Answer. Naval constructor in the Brooklyn navy yard. Question. How long have you been acquainted with that yard? Answer. I was appointed there this time in 1850; I have been more or less acquainted with the yard since 1826, for I served my apprenticeship there. Question. What changes for better or for the worse have taken place in the management of the affairs of the Brooklyn navy yard since you have been acquainted with it? Answer. I have been employed in the navy yards for 25 years, and I think the plan of selecting the master workmen which prevails in the yards now is not so good as it was in former times. Then, when a master workman was required, the naval constructor would select the proper individual, with the commandant of the station, who was always, and who always should be, consulted in these matters, and they would appoint him with the sanction, of course, of the powers at Washington. This master, thus appointed, was retained during good behavior; he was, in other words, subject to the naval constructor, who was the head of the mechanical part of the navy yard. And I wish to observe here that, in my opinion, a change in the present discipline of the mechanical department of the navy yard could be advantageously made. The system of having so many departments independent of each other and not subject to one head is a bad one. Let there be one mechanical head, and let everything connected with his department emanate from him, through the commodore. I think such a plan as that would make a very material difference in the way in which business is conducted and the cost of your ships, your houses, and your docks. Question. Who would superintend the working of the subordinate mechanics, if there were no masters? Answer. I do not say that there should be no masters, but that they should be under the control of the mechanical head, whoever he is, and subservient to him. I say that the commodore of the station, with his proper officer, should have the power to change these masters when they do not conduct themselves as they should, subject to the approval of the department. Question. Suppose a master workman should not conduct himself as he should now, what do you do under the custom that now prevails? Answer. All the master workmen that have been appointed of late have been appointed without the knowledge of the naval constructor or the commandant of the station, except during the last year and a BROOKLYN NAVY YARD. 287 half, when there has been an examination. I mean that these masters should be selected by the mechanical head and the commandant of the station, and examined by any board that he may chose to select for that purpose, and let them know at the same time that they are to be under the control of the officers of the yard. Question. Under the system that prevails now, suppose a master workman does not do his duty; what is your duty in the premises? Answer. To report him, I suppose. Question. To whom? Answer. To the commandant of the yard. Question. The opinion you have expressed is in regard to the proper way of appointing those men; have you been heretofore consulted in reference to the appointment of master workmen under you in the yard? Answer. No, sir; nor in the appointment of the workmen, except the number to be employed. Question. When a master workman makes a requisition for the appointment of new men, and makes out the list he wishes selected, is not that list submitted to you? Answer. Always. Question. Suppose you do not approve the selection which the master has made; does the submission of the list to you give you the right to approve or disapprove the number of the men and their qualifications? Answer. It gives me the right to disapprove of it. In carrying on the work of the yard, when I think there is any necessity for it, I direct the master to take on a certain number of men. I do not name these men myself. I invariably tell them to take on the best workmen-those who know how to work. They have, by authority, the selection of the men, subject to the approval of their chiefs. Question. What change could properly be made in turning out these master workmen and the men under them? Would you have them put solely under the control of the mechanical head you speak of, without the approval of the commandant or the bureau? Answer. No, sir; I think all business of that sort should be done through the commandant. I have always found those gentlemen ready and willing to act with the constructors; they have left many things of that sort to their judgment and opinion. Question. Do you know anything about incompetent men having been employed and kept in the yard by any of the master workmen? Answer. I do not. Question. Is Mr. Merrifield a master workman under you? Answer. Yes, sir. Question. Has he complained to you that he had incompetent men under him? Answer. No, sir; he has made no complaints. There have been several instances where he has discharged men for incompetency. He brought them before me, and they were dismissed forthwith. 288 BROOKLYN-NAYY YARD. Question. By whom were they dismissed? Answer. Through me; the commodore approves of all requisitions for the taking on or the discharging of men. Question. Now, do you not practically discharge the men in the yard just when you choose? And if you find out that a workman is incompetent, do you not practically discharge him? Answer. Yes, sir; I have always directed the master to discharge them when they have been complained of. I have stated to some of the master workmen, when I have been watching how their men were working, tha tsuch a person was not worth the wages he was receiving, and that he must be reduced. The master workmen have invariably done so when I have directed it to be done. Question. Have the master workmen under you recently proved themselves efficient? Answer. They have not all been so efficient as I could wish. Question. Can you mention particular persons? Answer. I do not know that I can particularly. There are several who have not done as I would wish them to do; who have not been so attentive to their business as I would have made them to be if they had been subject more particularly to my control. Question. Could you not report them? Answer. I have repeatedly mentioned cases of neglect to the officers of the yard, and they have stated to me that I must report them; that is, in relation to the men leaving the yard; they must be reprimanded and not allowed to leave the yard. I have told the commandant that that was a police regulation with which I had nothing to do. My business was an active one in all portions of the yard, and I have nothing to do with who goes out or who comes into the yard. Question. Is it not your business to superintend these master workmen and see that they work properly? Answer. Yes, sir; all their work should come under me. Question. Have any of them been in the habit of going off and neglecting their business? Answer. There have been instances of it. Question. Can you speak of it as a general custom? Answer. No, sir; two-thirds of the master workmen there have been very attentive to their business, and have been constantly there. I know it, because I have been there myself, and though I perhaps should not so say, still I have given my whole time to the business of the navy yard. I know that two-thirds of the master workmen are always at their posts, and are very good men. There are exceptions, who, had they been placed more particularly under the control of the commandant and the naval constructor, would probably have been more attentive to their business. Question. If you have, through the commandant, practically exercised the power of dismissal, what more could you have done? Answer. Their appointments come from sources which I could not interfere with. BROOKLYN NAVY YARD. 289 Question. By what influences have their appointments been dictated? Answer. I do not know.Question. Political or not? Answer. I really do not know; I am not a politician myself, and I do not know anything about it. Question. How far have political influences determined the appointment of master workmen in the navy yard? Answer. I could not say, for I do not know. I know that previous to a year and a half ago, when we were directed to examine them, they were sent there and appointed as master workmen at once. Question. How long had that previous custom of appointing master workmen prevailed in the yard? Answer. I do not know positively; some fifteen or twenty years. Question. Does this custom of examination generally prevail now? Answer. It has been so in New York about a year and a half; but all the master workmen there have not been subjected to an examination. There is a master workman there, a very worthy man, who has been there thirty years; an exceedingly fine man. Question. Who is he? Answer. Our master cooper; he is an excellent man and master of his business. Question. Has he taken any part in politics? Answer. Not to my knowledge. Question. When was this custom of subjecting master workmen to an examination instituted in this yard? Answer. About a year and a half ago. Question. Who are the examiners? Answer. The executive officers of the yard; that is, the commander, the naval constructor, and the civil engineer. There are two master workmen in my particular department who have been examined, and eight of them have not been. Question. Why were not those eight examined? Answer. They were there before this order was given. All who have been appointed since that time have had to undergo this examination. There have been other master workmen examined in the constructing engineer's department. Question. Has every master workman appointed there since this order was given been subjected to this examination? Answer. Yes, sir. Question. Do you make a pretty rigid examination? Answer. Yes, sir; I think so. Question. Then no master workman who is incompetent to discharge the duties of his office can be appointed while this regulation is in existence? Answer. If the board do their duty he cannot. However, there is one other thing that has a bearing upon this subject. These persons who are examined by us are sent to us for examination. Now, it 19 D 290 BROOKLYN NAVY YARD. would be very much better for us if we could select a man whom we know to be a good workman, and who has worked for years in a naval establishment, without being forced to confine our choice to those who are sent to us by others. Let us make master workmen of those we know, rather than have a perfect stranger come to us who may, perhaps, be mechanically qualified and not morally so; which, in my judgment, should be taken into consideration with his other qualities. Question. When you make an examination of a man, do you merely inquire in regard to his mechanical skill, or do you inquire into his personal character for integrity and honesty —-his standing as a man? Answer. I drew up a certain set of questions, some twenty or thirty of them-as many as I saw proper to ask-which, when answered, embrace a kind of history of the man. Then I examine him mechanically by asking him questions, and requiring him to make illustrations upon the black-board, in order to see if he understands his business. But we have never sent for persons or papers to know how he stood in the community. Question. By whom are these men sent to you to be examined? Answer. By the commandant of the station. I cannot answer that further, though I suppose they were from Washington. Question. Do you mean to say that the men are sent from Washington, or that the orders for their examination are sent from Washington? Answer. No, sir; the order emanates from Washington to examine such an individual in reference to his being made master of such a department. We have not passed all we have examined; we have condemned some. Question. Have any men that you have condemned been forced upon you by political or other influence? Have you been forced to appoint a man as a master after you have condemned him upon an examination? Answer. No, sir. Question. Do you know of any cases in which political influences have required the continuance in place of incompetent men under the masters? Answer. I do not. By Mr. Ritchie: Question. Has any person a right to be examined-to present himself before this board for examination-except persons whose names are sent on from Washington, with directions to be examined? Answer. No, sir; no person has been examined except under orders to examine him. By Mr. Bocock: Question. Have you been directing the building of some launchingways during the last year or so? Answer. There have been launching-ways building at the yard under the supervision of the constructing engineer. Question. Mr. Graham? BROOKLYN NAVY YARD. 291 Answer. Yes, sir. Question. Are you able to speak of that work; to state whether is good or not? Answer. I made the original design myself, and it is being built after that, so far as inclination and size are concerned. It was commenced last year, and is not completed yet, as it is a work of considerable magnitude. Question. What do you say of the character of the work, and the skill with which it is being done? Answer. It is good, solid, strong. I should not be afraid to put the biggest ship upon it that ever was built, so far as it has gone. Question. Has Mr. Graham fully discharged all his duties satisfactorily in regard to that work? Answer. I have taken no note or survey of his work. I merely see it as I pass by it. The work has certainly been constructed very permanently and solidly as far as it has progressed. Question. Do you know how far Mr. Graham has control of that work? Answer. I know that he is the head of that department, and that it is being built under his supervision. It is an affair that I am particularly interested in. It is to build ships upon, which is my business; and having made the design, I have taken pains to talk with Mr. Graham upon the subject, so as to get it done in the most permanent manner. I do not see, myself, wherein he has not carried the work on properly. There is a difficulty at the lower end about making the work permanent. He has talked with me upon the subject, and my advice was that there should be a coffer-dam built there to enclose the whole of it, so that he might build the work properly. I advised this because the ground is soft there, and it is important to have a solid and permanent foundation. I see that Mr. Graham is following my advice. The work commenced at the upper end of the ways, or rather is being carried on there, for it could not be carried on economically at the lower end at this season of the year. And I advised him to commence the lower part in the spring or summer. The other part he could build economically in the winter season. Question. Are you able to speak, of your own knowledge, of Mr. Graham' s efficiency in his department? Answer. I am not. Question. Is the master painter in your department? Answer. He is. Question. How does he discharge his duties? Answer. He has not been there a great while-nearly a year, perhaps. There is not so much energy about him as I should like to see. But his work is done and the duty is discharged very well, so far as painting ships is concerned. Question. Do you know anything about the loss of paint from the navy yard? Answer. Only from hearsay, and that within a day or two. The master painter requires all his material through me; that is, he makes a requisition for it through me. 292 BROOKLYN NAVY YARD. Question. When it passes from your keeping into his hands do you keep a supervision over it? Answer. As much as I can. I know about what it would cost to paint a ship; for I can refer to the accounts of other ships which have been painted, and if I should find any discrepancy I should want to know where the paint had gone to. When the painting is similar there would be no great variation. Question. Then a master painter who was a rough, careless man, might destroy a small portion of the paint; but if it was a large portion you would be likely to discover it? Answer. Yes, sir. The painter estimates that he will want so much paint for the ship. He makes to me a monthly return of what he has expended, and when the whole is done I can tell whether the amount is much out of the way or not. Question. Did you ever hear of the loss of a keg of zinc, 100 pounds, from the yard? Answer. I never have until within a day or two; I heard here that there had been a loss of some paint. They are very particular at the yard, under regulations of the commandant of the station, about allowing articles to be passed out of the yard. I do not know how they could get it out very well, without it was passed out by the proper officer. Nothing goes out without a pass, and workmen are sometimes examined, where there is any suspicion, in order to see if they have any articles secreted about them. By Mr. Ready: Question. Could not articles like this keg of paint be put on board some water craft, and carried off in that way? Answer. I do not see how it could be done very well. There are watchmen all around the wharves at the navy yard, about every fifteen hundred feet, and all within sight of one another; still it might be done. By Mr. Bocock: Question. Has there been a surplus number of men in your department during the last year? Answer. No, sir. Question. Have you had work for all the men in your department? Answer. I have. Question. Were they well employed? Answer. I think so, and I think we have the work to show for it. We have repaired-some vessels slightly and others thoroughly, some repairs being very heavy-about 12 or 15 different vessels during this last year in the yard; we are building one new one, and we almost rebuilt the St. Louis last summer. There were very extensive repairs upon the San Jacinto, which are now pretty well completed. Last summer we had a great many men at work, more than I have had since; in winter I reduce the number of men, and intend that the number shall agree with the amount of work which is in progress. Question. Was there any considerable number of men added to the yard just before the election? Answer. In my department I had more men in September than BROOKLYN NAVY YARD. 293 about election times. I heard before I came on here that there had been some such intimation as that, and I took the following list from the rolls in my department before I started to come on here: Memorandum showing the number of men employed under the naval constructor on August 1 and November 1, 1858, and February 1, 1859. Departments. August 1, November 1, February 1, 1858. 1858. 1859. Ship carpenters, &c —........ —- -_-234- 234 261 292 Smiths- ----- ----- ---- 129 135 115 Joiners ------- ------------— 162 139 106 Calkers -------- ---------- 141 87 144 Mast makers ------- -------— 27 27 27 Painters —-. —.. ---------- 80 74 39 Boat builders ---- ---------- 33 35 32 Coopers —. — -—. —-----—.. —-------.. 20 20 20 Block makers —----- ----- ---- 30 32 31 Gun-carriage makers —-- ------- - 23 15 11 Saw mill —---- ---- -.- 43 59 58 Timber inspector's laborers. —-. —-----—.. — 111 116 86 1,033 1,000 961 So far as I am concerned, I have always made it a point to take on men when they were required for the work ordered; who the men were I have had nothing to do with. All there was about it was, that they were subject to my approval. The selecting and appointing of the men were with the masters, which is all very proper, only I think the regulation ought not to say that they shall have that power. Sometimes I could recommend good workmen myself-I could do so nowbut the masters might not take them; they would probably prefer to make their own selections. If I object to the selections they make, I can check them off; but, as a general thing, I do not do it, because I do not wish to make trouble. If the master blacksmith wants half a dozen hands, I tell him to go and get them, because he is the best judge about them, and ought to be allowed to choose. But still I think there should be a check where there is now none. Question. Do you keep all the men in your department in good employ? Answer. Yes, sir. I will say this about the number of men in my department: there may have been some departments which were increased when we got to work upon the new vessel; but in the aggregate there were more workmen in August last than now under my charge, or since that month. By Mr. Ritchie: Question. What proportion do the men in your department bear to the whole number in the yard? Answer. I think nearly one-half. There were 2,500 men at work in the navy yard last fall, and I had 1,003, not quite one-half, at that time; but generally I think it is about that. 294 BROOKLYN NAVY YARD. By Mr. Bocock: Question. Were all the others under Mr. Graham? Answer. Not all of them. The common laborers of the yard are not under him; they are under a master laborer and the officers of the yard more particularly. I have nothing to do with them, only that the object upon which they are to work is assigned from my office. The work of the others are under Mr. Graham. There are some under the ordnance officer, and some in the department of provisions and clothing. Hence I say that there are so many departments in the navy yard that it makes confusion; to do away with which there should be but one mechanical head. Question. Do you mean that Mr. Graham's business and yours should all be under one head? Answer. I think it should. I do not wish the place, I am sure, though formerly I had it all under my charge until 1852. I know that other naval constructors, Mr. Hart and Mr. Grice, did all this work for twenty years. I look at the navy yard as a gentleman who was doing a large business in a private establishment would look at that. He would hardly have a certain number of heads all equal, as it is in the navy yard. I refer particularly to these heads of departments, not master workmen; for instance, the blacksmith under me does work for all the other departments, and all the other departments do work for me, but I have no control over their men; that, I think, is all wrong. The finishing of my iron work, and all that sort of thing, is done under another person. Question. Could we not arrange to get a great deal more work done for a great deal less money in our navy yards? Answer. I think we could. Question. How can we accomplish that? Answer. I do not think that the naval constructors-myself, for instance-are in the position we ought to occupy. I think constructors ought to be more permanent than they are now. You are aware that there is no law for our provision when we get old-no place for us. I hate known an old constructor to be turned adrift without any resources from the government when he got to be seventy or eighty years old. I think, myself, that there should be some sort of halfpay provision made for us; something that we can look to for our old age and sickness; something to make us feel, if possible, more like doing our duty while in active life. What you give us now is liberal - $2,600 a year-and while we are in active life it supports us handsomely, but nothing more. I think there should be a half-pay provided for us when we get old and incapacitated from doing our duty, whether from sickness, or otherwise, to make us feel as though we were properly cared for. Question. How would we be able in that way to have more work done? Answer. In this way: I was just putting in a word for the constructors, for I wanted to say that much because I think it right, and proper, and necessary. Personally, I care but little about the matter, but I think it should be as I have said. I think these master work BROOKLYN NAVY YARD. 295 men should be subject entirely to the constructors; that the whole preparing and constructing of ships should be under their control entirely, with that of the commandant of the station, of course; and then I think the constructors should be held responsible for all that is done under them, for the cost of the ships built, in labor and material both. He should have the appointing power of the master workmen, so as to have the best of men at work under him. By Mr. Ritchie: Question. Do you think there is ever any hope of doing anything either properly or economically in the yard as long as the men are taken in and put out according to their politics, being judged by a different rule or standard of politics, even then, every four years? Answer. I do not think that politics should ever have anything to do with the management of a navy yard. Our work in the navy yard is done more thoroughly than in outside yards; but if you want to make your ships come cheaper, let the power be given to the constructor, and hold him personally responsible for the cost of the ships. Give him the power to select the men, that he may have proper workmen upon his ships, both masters and workmen. If he has a master workman whom he has confidence in, of course he will let him select the workmen. By Mr. Ready: Question. And I suppose you think the constructors should not be removed at the will of the Secretary, but only upon good cause shown? Answer. I do think so. Question. And if there are good grounds and charges against them let them be preferred, and if proven, let them be dismissed? Answer. Yes, sir; the same as any other officer. Question. In other words, you would put them upon the same footing as an officer of the navy? Answer. Yes, sir; I want to raise one corps and make them responsible. When you give us power to select the proper men and masters to do the work your ships will then be built and fitted twenty-five per cent. cheaper than now. By the Chairman: Question. H-as your attention been particularly called to the cofferdam being built under the supervision of the constructing engineer, for the launching ways? Answer. Yes. sir. Question. Will that answer the purpose for which it is being built? Answer. I have not examined it thoroughly. I notice the cofferdam, for I pass by it ten or fifteen times a day. It looks to me as though it was going on in a proper manner. Question. In your judgment, will it answer the purpose for which it was intended? Answer. If it is completed as it has gone on thus far, I think it will. Question. In your judgment, should the launching ways have been commenced upon the outer or the upper part? 296 BROOKLYN NAVY YARD. Answer. I think the construction of the outer or lower end of the launching way was properly commenced in the spring of the year, so that the work upon it could be done in summer, and more economically than in winter. Question. How was it commenced? Answer. I think that both ends were commenced about the same time. Question. When were they commenced; in the winter? Answer. I think they were commenced summer before last. I know they were at work upon them last winter during cold weather. By Mr. Bocock: Question. Is there any other point you desire to explain or to state to the committee? Answer. I do not think of any. Question. From your knowledge of the amount of work annually done for the United States navy in the way of construction and repairs, would it be practicable to have that work done at three or four yards at much less cost than it is now done at all the yards, and thus to dispense with several yards? Answer. I think it could, but do not think it would be politic to dispense with any of the yards, for this reason: contingencies might arise when it would be necessary to employ the principal number of our ship artisans who are located throughout our whole extent of seaboard. Certainly we require no more navy yards. B. F. DELANO, N. C. No. 83.-ARTEMAS B. JONES, BROOKLYN NAVY YARD. ARTEMAS B. JONES called and examined. FEBRUARY 14, 1859. By Mr. Bocock: Question. What is your official position in the Brooklyn navy yard? Answer. I have no official position; I am a workman under Mr. Tunrer. Question. Did you perform the duty of clerk for Mr. Turner? Answer. I kept his books for him, attended to the getting of the material, &c. Question. Do you know at what time it was that John White and another man there carried off some zinc paint from the yard? Answer. There was some material carried over to the shell house; I will not be positive whether it was zinc or lead. Question. Why was it carried there? Answer. For the purpose of painting that building. Question. Is that shell house over at Williamsburgh? Answer. It is on the Williamsburgh side, but disconnected with the shore. Question. Do you know anything about some zinc being taken from the shell house to the Willianmsburgh shore? Answer, Only from what I have heard? BROOKLYN NAVY YARD 297 Question. Do you know anything of Mr. White and 3Mr. Craig working for Mr. Searing? Answer. Only that they told me they were going there for that purpose. Question. Do you know whether they received pay for working in the yard for government while they were working for Mr. Searing? Answer. Their time was docked off while they were there. Question. Is the time while they were there blank upon the pay book? Answer. Yes, sir. Question. Have you that book here? Answer. Yes, sir. Question. Produce it, and show to this committee the pay accounts of Craig and White? [Witness produced the book and showed the committee that the working days of the 2d, 3d, and 5th of July were blank, together with one-fourth of the 1st.] Question. Do you know that this was the time they were at work for Mr. Searing? Answer. Yes, sir; Mr. Turner spoke to me first of going off to do it, but then he had occasion for my services in the yard, and he sent Mr. White in my place. Question. Have you taken any steps to ascertain when Mr. Turner was in Washington? Answer. I knew he was here some time in June last. I looked at the register at Willards', and find his name there on the 9th of June. I remember distinctly of his going on; I think he started on the 8th, and returned somewhere about the 13th or 15th. By the Chairman: Question. Did Mr. Turner receive pay for the time he was in Washington? Answer. Yes, sir; it is usual to give masters their time while absent, if they have leave of absence. Question. Then, whether present or absent, if absent with the permission of the commodore, they still draw their pay? Answer. Yes, sir. Question. Is that the case with workmen? Answer. No, sir; they must answer their call, or their pay is stopped. Question. Do you know any cases where men have answered at rollcall in the morning and then absented themselves from work until the next roll-call, without complaints being made in regard to it? Answer. That may have been, but not to my knowledge. Question. At what time is roll-call in the morning? Answer. An hour after sunrise. Question. When is the next roll-call? Answer. At noon; five minutes after the bell starts to ring. Question. Is there any roll-call at night? Answer. No, sir. 298 BROOKLYN NAVY YARD. Question. Then if a man answers to his roll-call you do not look for him any more? Answer. No, sir, I do not; I have no business with him any more after that. As soon as he comes into the yard and answers his rollcall he is then under the orders of his foreman. Question. If a man went away after roll-call would you necessarily have any knowledge of it? Answer. No, sir; but if it was found out that a man had left in that manner the constructor, commodore, or clerk of the yard would discharge him. By Mr. Groesbeck: Question. Is it difficult to leave the yard without being noticed? Answer. Yes, sir; there is but one entrance through which persons can come in or go out in the day time, and that leads right past the muster office. [Recalled after Mr. Crawford testified.] By Mr. Bocock: Question. Do you know anything about Mr. Fitzgerald painting his house last year? Answer. He told me he was about painting it, or a portion of it. Question. Can you fix the time? Answer. No, sir; not exactly. Question. Was it last spring, or summer, or fall? Answer. It was some time during last summer; I will not be positive about the time. Question. Did Mr. Turner paint his house last year that you know of? Answer. Not that I know of. His house is some ten or fifteen miles from the navy yard, and I would not be likely to know anything about that matter. Question. Where does this Mr. Fitzgerald live? Answer. In South Brooklyn, down at what they term Red Wood Point. Question. Did Mr. Crawford come on here with you from New York? Answer. Yes, sir. Question. Do you know how he came to be summoned? Answer. No, sir. Question. How did Turner find out that Crawford knew any thing about this private matter? Answer. Crawford was working there at the time, I suppose. Question. How did Turner find out that Mr. Crawford knew anything about it? Answer. It was a common report around that the thing had been done, and I suppose that Crawford stated what he knew about it? Question. To whom did he state it? Answer. I suppose to Mr. Turner. Question. Do you know that he stated it to Mr. Turner? Answer. No, sir. BROOKLYN NAVY YARD. 299 Question. Were you aware that Crawford knew anything about it? Answer. He told me. Question. When? Answer. Last week. Question. Not before? Answer. No, sir. Question. At what time did this rumor get out that this paint had been carried off? Answer. About the time that Mr. Fitzgerald was subpoenaed to come on here. Question. Did you never hear of it before? Answer. I saw Mr. Fitzgerald about three or four days before he came on here; and the next thing I heard he had a subpoena and was coming on to Washington. By Mr. Ready: Question. Did Crawford tell you he had ever said anything to Turner about this matter? Answer. No, sir; he told me he knew something about it, but he did not tell me what it was. Question. Did he say whether he had communicated it to Turner or not? Answer. I do not think he did. By Mr. Bocock: Question. Did he tell you when you were coming on here what he had been summoned to prove? Answer. No, sir. By Mr. Ready: Question. You knew he was coming on here as a witness? Answer. Yes, sir. Question. Did you talk with him about his coming on here as a witness? Answer. Yes, sir. Question. Did he say anything to you about this subject? Answer. No, sir; I was in company with Mr. Vandervort, and he was with Mr. Hamilton, deputy sergeant-at-arms. ARTEMAS B. JONES. No. 84.-TESTIMONY OF JOHN S. CRAWFORD, BROOKLYN NAVY YARD. FEBRUARY 14, 1859. JOHN S. CRAWFORD called and examined. By Mr. Bocock: Question. Where are you employed in business? Answer. In the painters' department in the New York navy yard. Question. How long have you been there? Answer. Since along in the fore part of May, 1858. Question. Do you know anything about the carrying away of some zinc from the navy yard? Answer. I do not know anything about the carrying away of any 300 BROOKLYN NAVY YARD. zinc from the navy yard, but I was sent around to Williamsburgh to get a keg of paint to take to South Brooklyn. Question. By whom were you sent? Answer. By Mr. Fitzgerald, our foreman. Question. Can you fix the time when that was? Answer. I could not fix the time exactly, for I never took any note of it. I should think I had been there about a month or a little over a month when it transpired. Question. Was Mr. Turner in the yard at that time? Answer. No, sir; not for one or two days previous to that. I know that on that day he was not there. Question. You say you were directed by Mr. Fitzgerald to get this keg of paint from Williamsburgh and carry it to South Brooklyn? Answer. Yes, sir. Question. Did Mr. Fitzgerald say what it was to be carried there for? Answer. He approached me between the hours of 12 and 1 o'clock, and called me one side. I was out of the gate then. Says he, "Here, Jack, you are a pretty good sort of a fellow, I want you to do a job for me." Says I, "I will do it after muster." Says he, "I want you to do it right away." And then he went on to tell me that he wanted me to jump in the cars and go around to Williamsburg by the Washington hotel, and I would find some paint on the dock. This he wanted me to take down in the cars to Fulton street, then get out and take the Greenwood cars, go up to Hamilton avenue, and then take the Hamilton avenue cars and go down to the corner of Hamilton avenue and Van Brunt street, where there would be a man waiting to meet me. I told Mr. Fitzgerald that I had no money to ride on the cars. He put his hand in his pocket and took out a 25-cent piece and gave it to me. Says I, "You will make my muster right?" Says he, "I will after you go out. " I was glad enough to get out; so after I had answered to my name I walked around and out of the gate, and went up and staid around the corner some time talking to some of my friends. I then jumped into the cars and went around by the Washington hotel, but I did not see anything there. I then went up as far as Peck Slip ferry, and staid up around there until nearly three o'clock. I then went down again and went down on the docks. There was a place of amusement there-a kind of public garden-and there was a boat-house there. I saw a bag there, and I took it up, opened the mouth of it, and saw what it was; there was a keg of paint in it; I thought it was white lead. I took it up around through the garden; there is a gate made there in the fence, and I came out of that into a vacant lot, and on out into the street. I then jumped upon the cars and went up to the corner of Van Brunt street according to directions. I waited there some ten minutes, I guess, when I found that I had a pretty heavy load for a warm day. I did not know exactly where to take it. I knew that Fitzgerald lived about there somewhere, but where I could not tell. However, I put the bag on my shoulder and walked away nearly a block, when a man came up to me. Says he, "Have you anything there for Mr. Fitzgerald?" Says I, "I believe BROOKLYN NAVY YARD. 301 so." Says he, "He sent me for it." Says I, "What is it?" Says he, "It is some paint." Says I, "I guess you are the man who is to have it." I said that, when he described the thing without knowing what I had in the bag, and I was glad to get rid of it. So I made by the operation half a day's work and five cents, which I saved out of the quarter that Mr. Fitzgerald gave me, for I did not go near the navy yard that night. I asked him the next day if he had got it, and he said "Yes; don't say anything about it." Question. Did you ever inform Mr. Turner about it? Answer. No, sir. I knew there was a bitter hard feeling between Mr. Fitzgerald and Mr. Turner, and if I gave information of this I would slip out of work, and I did not know where to go for other work at that time as work was dull. Question. Where does Mr. Fitzgerald live? Answer. He lives in South Brooklyn. Question. Close by where you delivered that paint? Answer. I did not know at the time where he lived; but I made inquiries afterwards, and they said that he lived some eight or ten blocks from Hamilton avenue. Question. Did you know that that was government paint when you were carrying it off? Answer. I did not. I had my own suspicions about it afterwards. I have thought a great deal about it since; more within the last two or three weeks than before. I never gave a thought to the matter until after this committee was raised, and I heard that there had been some charges made about it. Question. How did Mr. Turner find out that you knew anything about it? Answer. I told Mr. White that I could be of benefit to Turner in that way. Question. Was that the White that testified here? Answer. Yes, sir. Question. Did you never speak to Mr. Turner upon the subject at all? Answer. No, sir. I thought that if I said anything to him, if he did not discharge me it would create ill feeling between Mr. Fitzgerald and myself, and be the means of my being discharged through him. I had to look out for my situation; I have a large family to support. Question. You described the manner in which you went up through that garden round through the vacant lot into the street; did you do that to avoid being seen? Answer. I did. Mr. Fitzgerald told me to let no one see me. I supposed it was because he did not want me to be seen out of the yard; I know that was my object in trying not to be seen; I rode out on the front of the car, and if I saw any one that I thought would recognize mae I would slip into the car until we got by, so that I might not be discharged for being seen out of the yard, I getting pay at the same time. 302 BROOKLYN NAVY YARD. Question. Did you not have some suspicions that it was government property that you were taking away? Answer. Well, I did not think it was altogether right. Mr. Fitzgerald was in the yard then, the head of the shop, and I thought he knew his own business. I did not ask him any questions. By Mr. Ready? Question. When did you first tell Mr. White about this thing? Answer. Since he returned to New York from here. Question. Did you ever tell Mr. Turner anything about it? Answer. No. sir; only since I have been on here this time. Question. Who requested you to come on here? Answer. I was subpoenaed; I do not know by whom. Question. Were you subpoenaed at New York? Answer. Yes, sir. By Mr. Bocock? Question. Did you see Mr. White after he was subpoenaed and before he came on here? Answer. No, sir; I was working on the same vessel with him. I think it was about half-past four in the evening, I was working up aloft, and I saw him go ashore and speak to some gentleman who was standing there with Mr. Turner, and that was the last I saw of him after that until a week ago yesterday. Question. Do you know whether Mr. White has written to Mr. Turner since he got back to New York? Answer. Not that I know of. Question. How could what you told Mr. White after he got back have got here to Mr. Turner? Answer. That is more than I can tell. Question. In your conversation with Mr. Turner, since you came on here, did he tell you that he had had you summoned on here? Answer. He did not say who had me summoned. Question. Did he tell you for what you had been summoned here? Answer. Nothing more than that they wanted me to tell what I knew. By Mr. Ready: Question. Did you know when you came into this room what questions would be asked you? Answer. No, sir; that is what bothered me. I did not know who I was coming here for or against. Question. When did you arrive in this city? Answer. Yesterday morning. Question. When did you first see Mr. Turner after you got on here? Answer. I saw him here yesterday, and I have seen him this morning, outside here. Question. Have you had any conversation with him about your testimony? Answer. No, sir; he never asked me what I knew nor what I was going to say. Question. How did you come to tell Mr. White what you knew about that paint matter? BROOKLYN NAVY VARD. 303 Answer. I asked him after he got back, what he had been on here for; and he said he had been on here about some lead that was carried over to the dock of Williamsburgh. I said to him that I guessed I knew a little about that lead myself. He asked what I knew. I said I knew where it went. He asked where it went to; and I said I guessed that that was the lead I had taken to South Brooklyn. He said that I ought to have told Mr. Turner about it; and I said that I had never been asked anything about it. Question. How came it that you did not tell Mr. Turner anything about it; were you afraid you would lose your place? Answer. That was my object in not saying anything to him about it. Question. Were you afraid you would lose your place because you gave information to protect the government against loss of this kind? Answer. I did not look at it in that light; I considered that if I had told him it would have caused ill feeling between Fitzgerald and me, which probably would have been the means of having me discharged. Question. Did you not suppose it would lead to Mr. Fitzgerald's discharge at once? Answer. I was not so afraid of him as of his friends. Question. Has he influential friends? Answer. I believe he is a man that runs around a great deal to political meetings and the like of that, and he professes to be quite a politician. By Mr. Groesbeck: Question. Did you get your full pay for that day? Answer. Yes, sir. Question. Did Mr. Fitzgerald make you the payment? Answer. No, sir; I got my time credits upon the books, and I received my pay at the pay office. Question. You took your pay for that day? Answer. Yes, sir. JOHN S. CRAWFORD. No. 85.-JOHN VANDERVOORT, BROOKLYN NAVY YARD. FEBRUARY 15, 1859. JOHN VANDERVOORT called and examined. By the Chairman: Question. What position do you hold in the navy yard at Brooklyn? Answer. I am master laborer. Question. How many men had you under your employ in November last? Answer. There were a hundred, or nearly that number. Question. Upon whose recommendation were you appointed? Answer. I think it was on the recommendation of Mr. Cochrane. Question. Under whose immediate orders are you? Answer. I am under Mr. Graham. Question. I wish to call your attention to an occasion when you 304 BROOKLYN NAVY YARD. and some of your men attended a primary election in New York. How many men went with you at that time? Answer. There were probably twenty or thirty. Question. What time did you leave the yard? Answer. I took the men after muster, several times. Question. Have you ever taken them before muster on an occasion of this kind? Answer. Once I did. Question. What occasion was that? Answer. It was on the occasion of an election of a delegate to Syracuse, to the State convention. Question. What time did they leave the yard then? Answer. About five o'clock, I suppose. Question. Were they rated as being paid for the whole day? Answer. Yes, sir. Question. At whose request was this done? Answer. At the request of a gentleman by the name of Fields. Question. State whether or not Mr. Graham went? Answer. He did not, sir. Question. Did he know that you were going or had gone? Answer. I think not; he usually leaves the yard before that time. Question. When was he first informed of it? Answer. I never informed him; I do not know that he has been informed of it at all. Question. Do you not know that he knew it? Answer. No, sir; I do not. I could not swear that he knew it. Question. What meetings have you attended? Answer. They were usually democratic meetings. Question. In what congressional district? Answer. Sometimes in Mr. Sickles' district; likewise in other districts where the men lived. Question. Was there only one occasion when they left the yard before the time? Answer. Only one, sir. Question. About how many men went at that time? Answer. I should judge that there were twenty or thirty. Question. Have you at any time detailed Patrick Larkins to leave the yard after roll call to attend to your business? Answer. Never, sir. I let him go once on account of the sickness of his family, and that was explained in the yard. At another time he left on his own account, and was suspended for so doing. Question. Did you not detail him to attend to any matter for yourself? Answer. Never, sir. Question. I will ask you whether you have attended constantly in the yard since you were appointed? Answer. I cannot say that I have. Question. What portion of the time have you been in the yard? Answer. I generally go there every day, but I do not always remain there all day. BROOKLYN NAVY YARD. 305 Question. How long do you usually remain? Answer. Sometimes all day and sometimes half a day, sometimes not an hour. Question. What other business have you been engaged in since you have been employed in the yard? Answer. When I was appointed I was in the copper and tin business; I had a contract with the city of New York. Question. Do you still continue in that? Answer. No sir; I have finished that contract. Question. When were you appointed in the yard? Answer. I think it was in June last, or July, I am not confident which. Question. Have you been engaged in any other business since you have been in the yard? Answer. Yes, sir; I have finished up the contract that I spoke of. Question. When did you finish it? Answer. It ended in the fall, when the stoves were put up, in cool weather. Question. Have you been engaged in any other business besides that? Answer. No, sir; no other business. Question. Where was your store? Answer. No. 111 First street, New York. Question. How far is that from the navy Tard? Answer. I should judge that it was two miles; it is in the seventeenth ward. I will state that I was in partnership with a gentleman by the name of Kelley at the time. Question. Were you required by your duty to sign papers certifying to the reports of time? Answer. In my department we have quartermen over every twenty men; they had a dollar Eand twenty cents a day, and the laborers had nine shillings. These quartermen were put in charge of the men, and at half-past three they would come in and make a report of the men and say they have been to work upon the dry dock, for instance, or any other place. I was informed that it was the custom for the master laborer to sign his name to the blank reports, and the clerk would put the time on and send them in with the time attached. Question. You were in the habit of signing these blank forms, and then they were filled up by others? Answer. Yes, sir; they were filled up by the clerk. Question. Do you know whether these blanks have been abused? Answer. I never heard a word of it until the other day. I understood that there had been a wrong report made by a quarterman, but on investigation in the yard I found that it was not so. The books in the yard show that. Question. How many hours in a day, upon an average since June last, do you think you have attended upon duty in the yard? Answer. It is almost impossible for me to state-two or three hours, or about that average. 20 D 306 BROOKLYN NAVY YARD. Question. Upon whose recommendation is the number of men increased or diminished? Answer. Mr. Graham has the charge of that. He gives me the order to increase or decrease the number. Question. Do you first report to him the necessity for an increase or diminution. Answer. It is according to the work. He would send to me that he needed ten or twenty more men, or to decrease that number, as the case might be. Question. Who selected these men when you made an increase? Answer. I did usually. Question. If you were there so little, how could you tell whether more men were needed or not? Answer. By the representations of the foreman and quartermen. Question. I will ask you whether you removed quarterman Gallon from the marine barrack grounds, where he was in charge of a gang of men, and put in his place David Gow? Answer. Yes, sir. Question. I will ask whether you and Gallon did not make a false report of time? Answer. No, sir; I deny it. That is what I alluded to before. Question. In whose congressional district do you reside? Answer. In Mr. Cochrane's, the sixth. Question. What do you know about Mr. Graham's qualifications as a civil engineer? Answer. Personally I know nothing; I am not much acquainted with him. Question. I will ask whether at any time he proposed to allow you to increase your force if you would give one-half of the increase to Mr. Sickles, or something to that effect? Answer. I do not know as he has ever made a direct proposition, but yet it was done. Question. What was the proposition? Answer. He said that he would like some of the men. Question. Did he propose to allow you to increase the force in case you would allow him some of the men? Answer. I went to him to increase the force, and he said I could put on so many and he would put on so many. Question. Did you agree to that? Answer. Yes, sir. Question. Did he name some of the men? Answer. Yes, sir. Question. How many men in your department has he named altogether? Answer. I could not tell. Question. How many men did he name on this occasion that you spoke of? Answer. We put on ten apiece. Question. When was that? Answer. It was soon after I went there and took possession. BROOKLYN NAVY YARD. 307 Question. Were those men needed at that time? Answer. I suppose so; we had work for them. Question. Did he allow men to be absent from the yard to attend political meetings at any other time than the one you have named? Answer. Never, to my knowledge. Question. State whether any incompetent men were employed by Mr. Graham or by you? Answer. I do not think I could employ any for the work I have to perform; all laborers are competent for digging. Question. Do you know of incompetent men being employed by Mr. Graham? Answer. I do not know of my own knowledge, sir. Question. Do you know whether men were allowed by him on the rolls who received pay without peforming labor? Answer. I do not, sir. Question. Do you know whether men employed at the navy yard voted in any other district than their own? Answer. No, sir; I do not. By Mr. Bocock: Question. You say that you have only spent at the yard some two or three hours a day? Answer. That is about the average until lately, when the new orders were issued. I am at the yard all the time now. Question. Have you had more men under you than you could conveniently work? Answer. No, sir; I have never had as many. Question. When did you have the most men? Answer. It was sometime previous to the election. Question. How long before the election? Answer. A month or so, perhaps. Question. Had any 9f them been discharged before the election? Answer. Of that number, no, sir. Question. When were they discharged? Answer. They have been discharged since the election. Question. Did you recommend their being kept there in reference to the election? Answer. No, sir, I had no occasion; the men were there at election time, and there was no necessity for me to recommend their being kept there. Question. Did you put on any men in order to have them there at election time? Answer. I was anxious, certainly, to have as many men as I could. Question. When you and these thirty men went off to attend a political meeting, did they all belong to that ward where the meeting was held? Answer. This was a primary meeting. Question. In primary meetings, do they not confine themselves to their own wards? Answer. They are not particular about it. Question. Did you vote in that primary meeting? 308 BROOKLYN NAVY YARD. Answer. I belonged there. Question. Well, did these other men vote? Answer. I suppose they did; they never refuse anybody's vote. Question. Whether they belong to the ward or not? Answer. They never make it a question. Question. Did you ever have more men under you at any time in the yard than you had work for, or could conveniently and profitably work? Answer. No, sir; I never had as many as I could employ in the yard. By Mr. Ready: Question. If it had not been that the election to which you refer was coming on, would you have taken on the additional number of men that you did? Answer. I should, sir, with the recommendation of Mr. Graham. I had not been in the yard, and, in fact, ever in a navy yard, previous to my appointment, and then only for a couple of months previous to the election. Question. You say you should have taken them on upon the recommendation of Mr. Graham? Answer. I should, sir. He is the one who lays out the work for my department to perform. Question. Did you propose it, or did he? Answer. I have at times proposed to him, and he has at other times sent to me and told me that it was necessary to put men on. Question. How was it with regard to these men who were put on previous to the election? Who proposed that first? Answer. I suppose Mr. Graham himself did, but I cannot exactly tell now. I have recommended men to be employed. Question. And Mr. Graham approved of it? Answer. Yes, sir, and likewise the commandant. Question. You recommend the men, and Mr. Graham approves, and then the commandant approves-is that the way they are appointed? Answer. Yes, sir, and then the requisition comes back and gives me notice what time to call these men. I notify the men, and they come there and answer to their names on the roll, and go to work. JOHN VANDERVORT. No. 12. JOSEPH SMITH, NAVY DEPARTMENT. FEBRUARY 15, 1859. JOSEPH SMITH recalled. By Mr. Bocock: Question. Are purchases made in the navy yards, and particularly in the New York navy yard, by the masters and other persons in the employment of the government, without the intervention of the navy agent? and if so, what proportion of the purchases are so made? Answer. The amount I could tell you, but not the proportion. The bills do not show it. I know that a large amount of purchases are BROOKLYN NAVY YARD. 309 made without his action upon them. For instance, there is a great deal of machinery there which he did not purchase. Question. What other article is there which is purchased without the intervention of the navy agent? Answer. He has nothing to do with the labor; there is a good deal of cart-work done, and also repairs at the hospitals. He pays the bills. Question. To what extent are the purchases made by others and not by him? Answer. The commandant has a requisition made upon him, and if he thinks the purchase should be made by the master workman, he marks upon the requisition "to be selected," and a person is sent over to select the article purchased. Question. Is that by direction of your bureau or of the commandant? Answer. By direction of the, commandant, under the general order. The bureau seldom gives directions to purchase anything of any importance, excepting large pieces of machinery. Sometimes I have made bargains for heavy pieces of machinery myself. Question. Why do you not send to the navy agent to make these purchases? Answer. We can get them better; we could not rely upon a navy agent to judge of the value of machinery. Question. What check is there to fraud and collusion when the master workmen make the purchases and inspect the articles themselves? Answer. If the man is dishonest; if he agrees to pay too high a price, or makes an improper selection; if the inspectors and commandant do not check it, and if the bureau does not check it, it is a sort of fraud. If we should find out that a man was dishonest in that way we should try to displace him. Question. Is there any other inspecting officer than the master workman, when the master workman himself purchases the article? Answer. There is a lieutenant there in the yard usually that inspects generally; but as to machines his opinion would not be valuable upon an important machine. Question. Do you say that it is chiefly machinery and other mechanical works, which the navy agent is not a judge of, which are purchased without his intervention? Answer. Yes,sir; machinery and such articles as tools, &c., "to be selected." Question. May not a great many other purchases have beenmade by those master workmen without you knowing anything about it? Answer. I dare say there are many small articles bought on open purchase, such as tools which a man wants to use himself and selects for himself. He may be sent over by the proper officer to select them. If the master workman is not an honest man, and chooses to collude with the seller, he can do so to some extent, but not to a very large extent. The formal bills have to be rendered and certified, and that is a check upon him. Question. During the last two or three years, how long has it 310 BROOKL N NAVY YARD. usually been after the expiration of the quarter before the navy agent settles his quarterly account? Answer. I have nothing to do with the settlement of his accounts. The Treasury Department do that. I understand that the Treasury Department allow him one quarter to make up his returns for the previous quarter. Question. Under that system, would it not be practicable to bring into the settlement of a former quarter what had happened during the current quarter, by making a false return? Answer. I do not see how it could be done, unless he committed a fraud, altering figures and dates. Question. If that were done would it be likely that complaints would be made? Answer. The person who is to receive the money upon the bill which has been approved would certainly make a complaint if he did not receive his money, unless he had made a bargain with the navy.agent to allow him to retain the money upon paying for the use of it. If he did that the navy agent might charge upon a previous quarter the payment of a bill which he had not paid, excepting by a promise. In case the navy agent should fail in the mean time, this debt would be still good against the government, I suppose, unless a fraud by collusion could be established. I recollect a case where the navy agent gave to the contractor a check, and the check was never paid; but the contractor receipted the bill. The contractor made an informal application for the payment of this bill, and was told that the government would never pay it, and it never did pay it to my knowledge. Question. What check have you to false returns from the navy agent? Answer. All the check we have is that he sends his monthly exhibit and we compare it with our book. We know what money he has drawn and we know what his returns show as expended, and the exhibit shows the balance in his hands; if it does not agree with our books we let hil know it. We see that his exhibit to the bureau is made correctly, but the accounts are adjusted by the Treasury Department. Question. Does he send requisitions before the money is drawn? Answer. The navy agent receives a certain number of bills, and then makes a requisition upon the bureau for the amount. Each bill specifies under what head it is to be charged. With that requisition he is required to send the approved certified bills for the amount, which must agree with the amount of the requisition before the money is drawn by the bureau or remitted to him by the Treasury Department. Question. Are the bills made out in duplicate? Answer. They are made out in triplicate, and that triplicate bill must be sent to the bureau before the money can be drawn out of the treasury; further than that the bureau has nothing to do with settling his accounts. BROOKLYN NAVY YARD 311 Question. Do you not furnish to the proper accounting officer of the treasury a statement of the amount you send to the navy agent? Answer. No, sir; the requisition of the bureau goes to the Secretary of the Navy, and the amount is charged to the navy agent at the Treasury Department on the warrant of the Secretary. The moment a requisition from that agent comes in, if found correct, he is charged with the amount on the bureau books; then he must account to the Treasury Department for that amount. This triplicate bill is not receipted that comes to the bureau, but is approved and authenticated. When the return is made the navy agent pays the bill, and the other two copies are receipted; one he sends to the Treasury Department as a voucher, and the other he keeps as his own voucher. The bill sent to the bureau is only an evidence that he is called upon to pay certain bona fide claims against the government. Question. Is Mr. Chandler, of the Portsmouth navy yard, a relative of yours? Answer. Not at all, either by consanguinity or marriage. Question. Have complaints been made of Mr. Chandler for the last two or three years? if so, what has been done with those complaints? Answer. There have been complaints made to the Secretary of the Navy of Mr. Chandler, anonymously and otherwise, which were re ferred to me. I sent them to the Portsmouth navy yard for explanation, and, so far as I remember, they were satisfactorily explained. By the Chairman: Question. At the end of schedule B, attached to your deposition, of the amount of purchases under contract, and by open purchase, you add that this includes the cost of coal; please to state whether it includes any purchases of coal at New York? Answer. No, sir; that coal was not purchased by the navy agent; it was purchased by the coal agent at open purchase. It appears in the navy agent's accounts, although not purchased by him. Bills are frequently paid by navy agents for articles purchased and delivered at other yards. Question. Does it appear in the accounts of the navy agent at New York? Answer. Yes, sir; I think it does. By Mr. Bocock: Question. Had Mr. Tyson, the former navy agent, a partner in the business? Answer. I do not know. By the Chairman: Question. At the time the oakum spinners were put on in the navy yard last fall, did you receive any orders from the Secretary in regard to it? Answer. Yes, sir. Question. What were those orders? Answer. To employ them. 312 BROOKLYN NAVY YARD. By Mr. Bocock: Question. Were those orders verbal or written? Answer. Written. Question. Are' they on file in your office? Answer. Yes, sir. By the Chairman: Question. Please state the circumstances connected with the order. Answer.. Mr. Florence said the master workman wanted more men, that there was a great call for men there, and asked me if I would order them on. I told him it was not the province of the department to put men on to the work or to give directions with regard to it. The authorities at the yard employed the men. He said they wanted more men; I said that if an order was wanted, he must go to to the Secretary. He addressed a letter to the Secretary, which the Secretary sent over to me, with an endorsement upon it requiring that the men should be employed. I do not remember the wording of it exactly. By Mr. Bocock: Question. Please furnish a copy of that letter, with the endorsements upon it. Answer. [See Appendix attached to this deposition.] JOS. SMITH. "WASHINGTON, August 4, 1858.' MY DEAR SIR: The severity of the times prompts me to solicit that eighty persons may be employed in spinning oakum in the navy yard at Philadelphia. No detriment to the public interests will result from this, the only effect being to provide enough oakum in a shorter space of time than if a less number were now given employment. The relief given by this employment for several weeks will be hailed with joy by those who are the recipients of its advantages. "Very respectfully, "THOMAS B. FLORENCE. " Hon. ISAAC TOUCEY, "Secretary of the Navy." Endorsed on back of this letter: "Referred to Bureau of Yards and Docks, by direction of the Secretary of the Navy, to dispose of accordingly. "C. W. W." "NAVY DEPARTMENT, August 5, 1858." Endorsed: " Order accordingly. "J. S." Endorsed on a slip of paper, in pencil: "The master workman having made a requisition for eight) additional pickers, you will see that it is complied with." BROOKLYN NAVY YARD. 313 No. 90.-WILLIAM B. MACLAY, HOUSE OF REPRESENTATIVES. FEBRUARY 16, 1859. WILLIAM B. MACLAY called and examined. By Mr. Bocock: Question. What is your residence and official position? Answer. My residence is in the city of New York; I am a representative in Congress from the 5th congressional district in that State. Question. Is there any explanation you desire to make with regard to any matters connected with this investigation? Answer. There has been a good deal said in the papers in which my name has been mixed up, much, if not all of which, has been very erroneous and unfounded. If there has been anything in the course of the testimony requiring explanation, I am desirous to testify upon it. One thing I wish to state; Mr. James Murphy, who is the contractor for the house to which was awarded the building of the boiler and engines of the Brooklyn, is one of my constituents; he is a neighbor of mine, and a personal and political friend; in justice to him, as well as to myself, I wish to say, that for none of his contracts, and he has had several, I think, have I ever applied to any one in his behalf, or interfered in any way. He said to me one day, upon my meeting him, I have made an application so and so, or intend to make an application, do me what good you can if you should be in Washington. It so happens that I have never made any application for him. I suppose there is testimony here with regard to the charge that the number of men in the Brooklyn navy yard was increased previous to the elections; I wish to state that I have never sought any increase of the men in our navy yard in any way, nor have I ever interfered with the discipline of the yard; when a person comes to me for employment, I write a note suggesting his name to the master workmen; but I have been very careful on such occcasions, when I was ignorant of the state of the work, to inquire whether they were taking on hands in that department in which employment was sought; if they said that they were, I would give them a note; but if they said they were not, I would refuse, invariably. I have been elected many times from that part of the city; and it has often been asserted that I was very much indebted to that influence for my several elections. So far from that being the case, it is an injury always to any candidate. Question. Have you ever had any controversy with the other members from New York about the division of patronage there? Answer. No, sir. Question. Have you taken pains to learn the qualifications of men before recommending them? Answer. I am acquainted with most of the men; I was born in that part of the city, and have represented it for a long time; I have been five times elected their representative in Congress, and six times a candidate; and was previously four times a candidate for the State legislature, and three times elected; in most cases, I knew the men. I have never recommended a man whom I knew to be incompetent or not qualified. 314 BROOKLYN NAVY YARD. Question. When a. man has been recommended by you, and has afterward been found incompetent, have you ever insisted upon keeping in the man? Answer. No, sir; on the contrary, when the master was making a discharge, and wished me sometimes to designate the men whom I wished retained, I have always said, "retain those who are best for the service, and who are men of families," and would sometimes, but very rarely, indicate those personally known to me as coming under this description. Question How long have you been acquainted with the mangement of the yard? Answer. Since 1842. Question. What change, if any, has taken place in the meantime in the management, mode of making appointments, &c.? Answer. I do not think there has been any change. Question. How long have appointments been made there upon political recommendations? Answer. I cannot speak of it previous to the date I mentioned; at that time, 1842, or 1843, Mr. Henshaw was Secretary of the Navy, I was representative in Congress; upon one occasion there were a great many applications for the place of masters; the Secretary finally concluded that he would make the appointments upon the recommendation of the then members of Congress from Brooklyn, who were Henry C. Murphy, and myself; he said if we would look carefully over the matter, and write a joint letter making recommendations, he would make the appointments. Mr. Murphy and I, thereupon very carefully selected some ten or twelve masters, who remained in office during the remainder of the administration of Mr. Tyler, and the whole of Mr. Polk's. They were removed after the incoming of the succeeding administration, that of Mr. Fillmore. Question. Do you know whether appointments were made upon political grounds during the administration of Mr. Fillmore? Answer. Yes, sir; they were made on that ground. Question. How does the efficiency of the yard, at the present time, compare with what it was when you first knew it? Answer. I have seen no change in that respect. There is a greater pressure for employment; but whether it is owing to the depression in the different trades or not, I cannot tell; or whether it is owing to a more extended practice of calling upon members of Congress for employment. Question. Do you think that the men work as much now as they formerly did? Answer. Yes, sir; I think they do. Question. Do you think as much work is done in proportion to the number of men in the yard? Answer. Yes, sir; I think so. By Mr. Ritchie: Question. Are you frequently in the navy yard? Answer. I go there occasionally, not frequently. I live right opposite, and I go over there in any case of peculiar hardship. There were many such cases among the ship-carpenters for instance, from BROOKLYN NAVY YARD. 315 their want of employment, and when they were men of families, I would sometimes go over and make application for them. By Mr. Bocock: Question. Have you given this subject sufficient attention to be able to suggest any change which might properly be made? Answer. I have not given much reflection to the subject, but it has occurred to me that the number of masters might be reduced with advantage to the government. I think all those that are in what is called the department of construction, the ship-carpenter, joiner, blacksmith, &c., might well be retained, and the others might be dispensed with. The duty of employing those who work at the yard might be also devolved on one person-the commodore or naval constructor. In this way, two important objects would be secured-system and responsibility. By Mr. Groesbeck: Question A great deal has been said with reference to giving the patronage to democrats, I wish you to state what has been the practice ever since you have been acquainted with it in that particular? Do you know of any difference in the practice upon either side? Answer. No, sir; the democratic party has the advantage in this respect. Society in New York is divided politically by geographical lines, and by divisions of employment. Upon the one side the commercial and trading classes are enlisted, uniformly almost in opposition to the democratic party. On the other hand the mechanical and laboring classes are as uniformly democratic. My district is opposite the navy yard. If you draw a line running along by the river, and around the point of the block between the line and the river, the mechanical and laboring classes reside, and the democratic party is found in great strength. In Mr. Kelly's former district, and in my own, living near the navy yard these men would naturally seek for employment there when not employed elsewhere. In a political point of view, I regard it as of no service to any party. There is an incidental advantage to the democratic party when trade is depressed, because furnishing these men with employment in the navy yard prevents them from seeking it abroad, and they do not lose their votes. But that advantage is more than counterbalanced by the ill-blood and disappointment among the masses in want and unemployed. A discrimination must be made, and where employment is found for twenty men, for example, 80 or twice that number are necessarily disappointed. By Mr. Ritchie: Question. Would it not be better for the yard to have done with that business of politics upon both sides in the employment of men? Answer. Yes, sir, I think it would; it certainly would be much more pleasant for the representatives, to whatever party they may belong. W. B. MACLAY. 316 BROOKLYN NAVY YARD. No. 92.-ROBERT LEIGH, BROOKLYN NAVY YARD. FEBRUARY 17, 1859. ROBERT LEIGH called and examined. By the Chairman: I have been requested to ask you some questions in this list: we have about closed up our testimony, but you can take these questions and write out the answers yourself. Question. What is your business? Answer. I am a civil engineer, but am acting as draughtsman in the office of Mr. Graham, constructing engineer, navy yard, New York. Question. How long have you been attached to that navy yard? Answer. About four years; a portion of the time as draughtsman and a part of the time as assistant engineer. Question. How does Mr. Graham's management of his department compare with that of his predecessors? Answer. It is, I think, fully equal if not superior to theirs. Question. Is he careful in the selection of the men he employs? Answer. He is as far as the choice rests with him; and I know that his great anxiety and difficulty has been to get good workmen. Question. Have you ever known him to retain a man on political grounds alone? Answer. No. On the, contrary, I have often known him to discharge men, when circumstances required it, in spite both of the strongest friendly and political feelings. Question. In his difficulties with the master workmen has he been influenced by political ambition or a sense of duty? Answer. I think entirely from a sense of duty. Question. Is Mr. Graham regular in his attendance at the yard? Answer. He is very regular; never, in fact, absent a day unless detained away by sickness, or, as in the present instance, absent on leave. Question. Does he attend to any private business away from the yard? Answer. I am satisfied he does not. Question. Does he appear to understand his duties as constructing engineer? Answer. I think he does sufficiently well, and is undoubtedly well qualified for the position he occupies. Question. Are you familiar with the method he has adopted in constructing the " launching-ways?" Answer. With respect to the launching-ways, I have to say that the construction is perfectly correct and the work has been well conducted. I have, moreover, heard many express their appreciation; and the naval constructor, who may be presumed to be an authority in such a case, has often expressed his approbation. Question. Was it judicious to commence the work in the ship-house first? Answer. I have heard it charged that Mr. Graham commenced the BROOKLYN NAVY YARD. 317 work at the wrong end; but as that could not have been made by an engineer, it is not worth noticing, other than to say that the chief reason why the work inside the house was first commenced was that it was considered politic to advance in such a way that a vessel could be built at short notice, and may, in fact, be constructed now; whereas, had the outer end been first commenced, it might have taken three or four years to complete it sufficiently. Question. What do-you think of the relative merits of the coffer dam and diving-bell? Answer. I have no hesitation in saying, and I have consulted eminent engineers on the subject, that the use of a dam in building the launching-ways, is perfectly proper, and to be preferred to a diving-bell. A diving-bell is advantageous where a dam cannot be used, or is too expensive, and it should have the essentials of clear water, sufficient depth, and freedom from obstructions below. In the present case the old piles which are sound enough to remain are in the way, and the foundation having to be lowered, at least five or six feet of gravel will have to be dredged up from between them, while, on the other hand, to pull all of them first would be attended with great cost. The most vital objection, however, to the diving-bell is to be found in its use in laying the masonry. Launching-ways require unusual and unquestionable stability, and I would be unwilling to trust any man to lay stone for such a purpose out of the reach of my own eye, as the depth of water to be worked in will vary from nothing to fourteen or fifteenfeet in a distance of about 200 feet, it is evident that a dam must be used for a portion at least; and Mr. Graham, in a just discretion, has availed himself of this plan as far as was judicious. Question. Is the coffer dam now being built constructed on correct principles, and calculated to answer the purpose for which it is intended? Answer. Yes; it is properly formed and can be made to sustain any amount of pressure. To insure the proper construction of this, I am aware that Mr. Graham insisted upon the appointment of an old and experienced dock builder as foreman over it. Question. What are the apparent relations of Mr. Graham and Mr. Hastings? Answer. They are simply those of ordinary civility, and there is little official intercourse between them. Question. What duties does Mr. Hastings perform? Answer. He inspects all articles sent into the yard for the department and supervises the machinery, &c. Question. Are those all the duties of an assistant? Answer. They are not. Question. What are they? Answer. To prepare plans, estimates, and reports, and superintend the various works in progress, under the direction of the engineer. Question. Who performs those duties now? Answer. I do. Question. What experience have you had in engineering? Answer. I have been an engineer for some twenty years, and have been engaged in the usual variety of works belonging to that position for such period. ROBERT LEIGH. 318 BROOKLYN NAVY YARD. No. 93.-SIMEON COAPMAN, BROOKLYN NAVY YARD. FEBRUARY 18, 1859. SIMEON COAPMAN called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In Brooklyn.. Question. In what business are you engaged? Answer. Dock builder. Question. Who is the head of your department? Answer. Mr. Murphy is master dock builder; Mr. Graham is the Chief engineer. Question. Have you been engaged in the construction of some launching ways? Answer. Yes, sir. Question. Are you a judge of such work? Answer. Yes, sir. Question. How long have you been engaged on that sort of work? Answer. I commenced at it more than a year ago, and better. Question. How long have you been employed on similar work? Answer. For the last year back; I do not recollect exactly at what time I commenced at it. Question I do not think that you understand me exactly. How much of your life have you been employed at that business? Answer. About thirty-five years; I was master-workman for thirtythree years, and I was master dock builder in the navy yard from 1844 until now, with the exception of some two years. Mr. Murphy, after he had been in about a year and a half; sent for me to be foreman under him. Question. What do you think of the launching ways in plan and in execution? Answer. The plan is proper enough; it is not compl ted yet, but I see no difficulty in the work so far as it has gone. It is a very difficult undertaking. A wharf has been there for some thirty or forty years, and it must all be taken away; some portions from thirty feet under water and mud, and that makes it a very tedious piece of work. Question. Now in regard to the place where you commenced the work; was it commenced at the right or at the wrong place? Answer. The principle is the right one. I have done such things before. I have built coffer dams before, and have always constructed them in that same manner. Question. What I mean is, did they commence building the ways at the right place? Answer. Yes, sir. Question. Would you not have saved expense and material by commencing at the other end? Answer. As to that I could not say exactly. It would be as well constructed in one way as the other. The idea of the plan, when it first commenced, was to have put it down with a diving bell, but they BROOKLYN NAVY YARD. 319 found that they could not do that. Then they had to put down this coffer dam around the work, because the old dock cou'd not be removed -with the bell. Question. Did you fail with the diving bell because it was unsuited to the work, or because your master-diver was an unskilful man? Answer. He was a skilful man enough, but the end of the ways had to be built right where the old dock stood, and where there was a large amount of mud, which could not be removed under the bell. All this had to be removed, in order to prepare a place to put down the stone. Question. And under the circumstances, you say it was necessary to build a coffer dam? Answer. I think it was. I was down in the bell frequently, and I concluded that that would have been a very poor mode to carry on that work. It might have been because I was not so accustomed to the diving bell as other men were, but I had laid down such ways" as this one was. Removing the old dock with the bell was the difficulty. There was some thirty or forty feet of earth, mud, and stone to be removed, and the bell could not do it. Question. How far has that work progressed now? Answer. The coffer dam is rather more than half built. But we did away with the bell. We took a new dredge we have there, and that works a great deal faster than we could have done the other way. Question. Has there been much loss of material and labor in the construction of that coffer dam? Answer. I do not think there has been anything wasted there. I do not think there will be any loss. The material there used will certainly be fit to be used again when it comes to be removed. Question. Has this work of the coffer dam and the launching ways advanced so far as to enable you to say that it will be a successful job? Answer. Yes, sir; I think so. I have constructed enough of such work to be able to judge, I think. Mr. Murphy is the master dock builder, however; I am merely foreman. Question. Do you know who planned this work-Mr. Murphy or Mr. Graham? Answer. It was planned before Mr. Murphy was appointed master dock builder. Question. Who planned it? Answer. I think it was planned through the means of the draughtsman of the yard, and the naval constructor, Mr. Delano. That is what I have understood, but I cannot say of my own knowledge. Question. Have you enough knowledge about the matter to be able to say what, in a general way, is the character of the work done under Mr. Graham since he has been there? Answer. So far as the launching ways have been completed, everybody remarks that it is a splendid piece of work. Question. Do you know whether Mr. Graham has ever planned or conducted any work wholly by himself? Answer. I cannot say. I have not been in the office much since I was master dock builder. I am now only foreman, and have no particular business about the office. 320 BROOKLYN NAYY YARD. Question. How often do you see Mr. Graham there superintending that work? Answer, Generally about, say four days in the week, but he passes frequently. Question. Where is he on the other days of the week? Answer. He is in his office. I mean that he comes down to examine the work four days in the week. As I am never in the office, I cannot say what he is doing there. Since I have not been master dock builder I do not frequent the office as I did before. Question. Do you know what Mr. Graham's general reputation is? Answer. No, sir; I never heard of the man until he was spoken of in connexion with the office of engineer in that yard. SIMEON COAPMAN. No. 94.-GEORGE A. BLOOD, FAIRMOUNT, NEW YORK. FEBRUARY 18, 1859. GEORGE A. BLOOD called and examined. By Mr. Bocock: Question. Where do you reside? Answer. In Fairmount, Westchester county, New York. Question. What official position do you hold? Answer. I am chief clerk in the navy agent's office, New York city. Question. How long have you held that position? Answer. For five years. Question. The same position-that of chief clerk? Answer. Yes, sir. Question. As chief clerk at that office, do you have the superintendence of the keeping of the books, and the making out of the accounts? Answer. Yes, sir. Question. Are you entirely familiar with the manner in which the accounts of that office have been kept? Answer. Entirely so. Question. What have you to say about the general manner in which the business of that office has been conducted, and the accounts have been kept? Answer. It has always been conducted in the most proper manner, Question. Have all the accounts been kept strictly, accurately, and correctly? Answer. Yes, sir. Question. Is it not the fact that your quarterly returns are delayed very much, some times after they should have been sent in; for instance, the accounts for the quarter ending in December, are they not sometimes delayed until the 15th of the month, or until January and even February? Answer. Yes, sir; we have three months allowed us in which to get up our accounts. There is an immense deal of work to be done about them, and we cannot get them off sometimes for two or three months. There are two or three of us at work, and it takes us all two or three months to get the accounts made up and sent off. BROOKLYN NAVY YARD. 321 Question. How often has it been the case that in stating your quarterly returns, and in sending in your vouchers, consisting of receipts for moneys paid to the department, you have entered in one quarter as credits to the navy agent accounts paid subsequently to that quarter? Answer. That has never been the case. Question, Do you say it has never been the case within your knowledge? Answer. Yes, sir, I do. Question. When was Mr. Swackharmer in your office as subordinate to the chief clerk? Answer. His brother brought him into the office when he was appointed navy agent. He had been previously brought up on a farm until his brother took the office, and he knew nothing at all of accounts when he came into the office. I had the sole control and keeping of the accounts of the office, and always have had since I have occupied the position of chief clerk. Question. Do you say he knew nothing of accounts? Answer. Yes, sir; I may say so. He knows very little indeed of accounts. He is a person who has not been brought up to any such business. Question. What particular branch of the duties of the office did he have in charge? Answer. He was employed principally to make out requisitions. Requisitions are made in the yard upon us, and we make requisitions upon contractors or other parties for the furnishing of articles. Question. Have you never ante-dated receipts for money paid; or post-dated them? Answer. We have sometimes dated them in this way, and that is probably what led Mr. Swackhamner to make the statement hedid, according to what I saw in the New York Herald-that the navy agent had mis-stated his accounts. In the hurry of business, we frequently pay bills without entering them at the time they are paid. For instance, a person comes in with some bills for payment, I draw the check for the money, and he receipts the bills and goes off, while tha bills themselves may not be charged in the books for two or three days. Still that is no reason, so far as I can see, why Mr. Swackhamer should have made the statement he did. Question. You say that those bills are sometimes entered in the book several days after they are paid, and in that way the receipts appear to have been ante-dated? Answer. Yes, sir. Question. Is that only because they are not entered in the book at the time they are paid? Answer. Yes, sir; they are not entered on account of the hurry of business. Sometimes one party may have twenty or thirty bills. The entering of these bills requires a great deal of labor, as a great portion of each bill must be included in the entry made. Each entry must state the articles furnished, the contract under which it is furnished, the station where delivered, the appropriation from which it is to be paid, the bureau under which it has been ordered, the gross amount 21 D 322 BROOKLYN NAVY YARD. of the bill, the amount reserved, if any, and the amount paid. Each entry must state all that. It is necessary that it should be entered in that way; and sometimes, in the hurry of business, bills are paid without being entered upon the books for several days. Question. How often has it been the case that, when you have sent on requisitions here and obtained the money to pay particular bills, you have used that money, not to pay the bills sent to the department, but to pay other accounts which have not been stnt on to the department? Answer. We have not done that. Question. In no case? Answer. No, sir; I think not. The only time that there has been any disarrangement about the payment of bills was the time the treasury not(s were issued. Then the Secretary sometimes embodied two or three different requisitions into one; I would run on the specie for one requisition, and the treasury notes for another. Mr. Sanders was requested to have the specie divided among the different creditors, and, therefore, upon our receiving the specie, we have paid each one their proportion of it, and then they had to wait a few days until the treasury notes were received, when they would be paid the balance. Question. In what way has the navy agent, so far as you know, ever used the money of the government for his own benefit or advantage, beyond the strict requirements of his duty? Answer. In no way that I am aware of. I think I should certainly have known it if he had done so. Question. In what way has he used the money of the government for his own advantage? Answer. He has never used it to his own advantage that I know of. Question. Has he not paid accounts before they were due, and got a percentage upon them? Answer. No, sir; not that I am aware of. Question in how many cases has the navy agent received a part of the profits upon articles purchased in open market? Answer. He has never received any profit at all that I am aware of. Question. Not from Secor & Co? Answer. No, sir. Question. Is there any understanding that any of the parties of whom purchases are made shall divide a portion of the profits with the navy agent or anybody under him? Answer. No, sir; there is not; I never heard of any understanding of the kind; I never heard it mentioned or breathed by any one. Question. Has he received money, so far as you know, from persons of whom these purchases are made? Answer. No, sir; not for that purpose. The only way that he has received money has been from contractors for having their contracts signed. As regards their sureties, it is requested that the navy agent should certify, to the best of his knowledge and belie', that he has made due inquiry in regard to them, and believes them to be responsible. In the advertisements for these contracts it is stated that sonic one of the officers of the government therein named shall state something of this kind; otherwise, their offers will not be entertained. BROOKLYN NAVY YARD. 323 In some cases Mr. Sanders has charged three dollars for doing this. Sometimes one man will call upon him to certify as to his sureties in four or five offers, and then he charges three dollars for the first one and a dollar each for the others. It is the usual custom, so far as I understand it, for those officers of the government who are authorized to make this certificate to make a charge for doing so. One man told me that he had paid the district attorney seventy-five dollars for certifying to his sureties in fifteen offers. Question. What personal supervision does the navy agent give to the duties of his office? Answer. He gives a general superintendence to the duties of his office. We have, ordinarily, every day a letter or several letters from the auditor authorizing the stoppage of allotments. We term that the ordinary duties of the office, to which Mr. Sanders gives no attention, but lets the clerks attend to it. But if any matter arises with the bureau to demand his attention, he always directs the writing of the letters, &c. He keeps a general supervision of the business of the office. Question. Does he spervise the keeping of books and accounts? Answer. Yes, sir. Question. How often is he in his office? Answer. He is there every day when he is in town; I do not know that I ever knew him to miss a day when he was in town since he has been navy agent, except on one or two occasions when he was sick. Question. What portion of the time has he been absent irom the city since he has been navy agent? Answer. It would be difficult for me to say, as I never took any note of it. I cannot tell you exactly what part of the time he has been away, because I have never given the matter any thought. Question. In his absence who performs those duties which he performs when there? Answer. Mr. Forrest supervises the business' of the office when Mr. Sanders is away. Question. Who determines, in Mr. Sanders' absence, the persons for whom purchases in open market are to be made? Answer. Mr. Forrest; he says to whom the requisitions are to be sent. Question. Are they all sent to Secor & Co? Answer. No, sir. Question. Are not a greater portion of them sent there? Answer. No, sir. Question. Are not more sent to Secor & Co. than to any other house? Answer. No, sir; there is not. Question. What house gets the most of them? Answer. Mr. Kennedy, a contractor, receives the greater portion of them. He is a very heavy contractor; I suppose his contracts are larger than those of any other contractor who has dealings at our office. Question. Do you say that the greater portion of the articles bought from your office are bought from Mr. Kennedy? 324 BROOKLYN NAYY YARD. Answer. Yes, sir; because most of the articles bought are embraced in the line of his contracts. All articles of hardware and such like go to him. Question. Do you know what proportion of the articles purchased in open market are purchased by those connected with the yard without the intervention of the navy agent? Answer. Yes,, sir; I made up a statement the other day, and it quite exceeded my expectations, for I found that three-fourths of the articles bought in open market were purchased by the yard, either with or without the immediate order of the bureau, and cases have frequently occurred where they have made requisitions upon our office for articles and we have directed certain parties to furnish them, and upon their going to the yard they find that the articles have been furnished by some one else under order from the yard. Sometimes the requisitions sent to us indicate that such and such a person is a contractor for the articles required, and afterwards we find out there is no such article in his contract. There is a great deal of irregularity in that way. Question. Do you know of any irregularities and abuses in the navy agent's office? Answer. No, sir, I do not. The reason why I referred particularly to this matter of requisitions is, because it has caused us a great deal of trouble. Persons to whom we have sent these requisitions, upon hearing at the yard that the articles have already been delivered there by other parties, have blamed us, in many cases, for trifling with them. Question. You have no means of knowing then, when these requisitions are sent to you, that the articles called for have been previously furnished? Answer. Nq, sir. Question. What steps are taken when articles are purchased in open market, to see that they are put at fair prices? Answer. I do not know about those purchased in the yard; that is beyond our office. The first knowledge, generally, we have of things purchased at the yard is the presentation of the bill to us, approved by the proper officers of the yard. In one instance Mr. Sanders did take exceptions to a bill for some beef and pork, for some $17,000, and referred it to the department, but it afterwards appeared that the purchase was ordered by the bureau, and the department sent on the money to us to pay the bill. Question. What do you say of Mr. Swackhamer's knowledge of books and accounts, and his liability to be mistaken in regard to them? Answer. I have been in the office with him for five years, and I must say that I never saw a person more entirely unacquainted with accounts than he was when he came there. It seemed as if his mind was not at all adapted to accounts. Question. Then why was he kept there so long? Answer. I can hardly give any reason, except that it was a desire on Mr. Sanders' part not to offend Mr. Swackhamer's brother, or to cause him any hard feelings. Mr. Sanders has always appeared to BROOKLYN NAVY YARD. 325 me to be a man of very kind feelings, and in no way inclined to cause a person any trouble or pain. I will say this, that Mr. Sanders intimated to me, I think the first week he came into office, that it was not his intention to keep Mr. Swackhamer. By Mr. Groesbeck: Question. Are the duties of the navy agent such as to require his daily attendance through the year at his office? Answer. I should think not. Question. Are there seasons of the year when his presence is required in his office more than it is required at other seasons of the year? Answer. Yes, sir. By Mr. Ready: Question. Is there more or less business done in the office of the navy agent every day? Answer. There is a great deal of business done there every day. Question. Does Mr. Sanders reside in the city? Answer. Yes, sir; his residence is in West Fourteenth street. Question. What proportion of his time is he absent from the city? Answer. I am unable to say, and would not like to state, because I cannot state exactly what proportion of his time he is absent. Question. Do you know of his having made several trips to Kansas? Answer. lie has been there three times, I believe. Question. How long was he absent? Answer. The last time about a month, I think. Question. How long was he absent upon the three occasions, a longer or a shorter time? Answer. I think the first time he was away only three weeks; the second time he was away about five or six weeks. Question. I do not know as I fully understood your explanation about the entries being made after the payments were made. Repeat that part of your testimony again, so that I may get a proper understanding of it; I mean that part about entries being made several da s after payment. Answer. Upon our receiving money from the treasury there have been at times several applicants for money; some of the contractors have perhaps twenty or thirty bills to be paid, and it is an hour's work sometimes to enter one payment. In cases where I have been in a great hurry I have spread all the bills out before me, taken the total of all the amounts, and drawn a check for the total; and then the bills may not be entered for perhaps two or three days, when we have more leisure. Question. What is done in the meantime with these bills? Answer. We put them in the safe where we keep all the other bills. Question. Are they put in with the other bills promiscuously? Answer. No, sir; they are tied up in a bundle separately until we have more leisure to enter them. Question. Then when you have leisure these bills serve you as memoranda by which to make your entries? Answer. Yes, sir. 326 BROOKLYN NAVY YARD. By Mr. Groesbeck: Question. State to the committee whether it is usual or not that the navy agent draws for funds as he needs money to make these payments, or whether he keeps an amount of money on hand sufficient to meet the requirements of the office? How is that? What is about the average amount of funds which the navy agent has on hand in his official character? Answer. We usually make up our requisitions for money once a week The bills come over from the yard, and we usually have about bills enough to make up every week from twenty to eighty thousand dollars. We draw for money usually on Saturdays. All these bills are made in triplicate, and we can draw no money until one of these triplicate bills is sent on to the bureau, and the money is only sent to pay the bills which we forward to the department, except the money that is reserved for allotments, which amounts to about $10,000 a month. Question. Am I to understand you, then, that you do not keep any money on hand to pay for purchases? Answer. Yes, sir; we do not. Question. Your allotments amount to about $10,000 a month? Answer. Yes, sir. Question. How often do you draw money to pay allotments? Answer. Every month. Question. What is about the average amount of money which the navy agent keeps on hand for the purpose of meeting the requirements of the service, as far as those requirements are connected with his office? Answer. That is a very difficult question for me to answer. Sometimes we have considerable money on hand, and sometimes our funds are very low, indeed. At the present time we have a large balance of money on hand, for the reason that many persons for whom we have money have not been there to draw it. Mr. Cromwell of the Cromwell line of steamers receives every month for the vessels which he furnished the government for the Paraguay expedition, $3,000 each per month. The money is on hand to pay for this purpose, but the bills have not been presented, because, I suppose they have not been returned from the department as approved. As soon as they are presented they will be paid. It is very seldom that we have a large balance on hand; in fact we try to keep our balance reduced by the payment of bills as much as possible, that being in accordance with the wishes of the Secretary. GEORGE A. BLOOD. Appendix to Anson ferrick's testimony. NEW YORK NAVY YARD, Office of the Storekeeper, February 14, 1859. DEAR SIR: Your committee required me to forward copies of the blank forms used in the transaction of the official business of this office, which I herewith enclose. I have noted upon the back of each BROOKLYN NAVY YARD. 327 the purposes for which they are used; and from them, the committee will be able to understand the whole process of obtaining supplies for the navy, from the first requisition of the master mechanic to the final payment of the bill by the navy agent. You will see that the storekeeper only receipts, for the delivery, after the bills have been certified by the inspecting officer. In the Bureau of Yards and Docks; the constructing engineer generally certifies. In the Bureau of Construction, the second lieutenant of the yard and the chief engineer are usually the inspecting officers. Very respectfully, ANSON HERRICK. Hon. JoaN SERMAAN, Chairman, &c. No. 1., This is the form of requisition made upon the storekeeper by the master mechanics and others, which is countersigned by the head of the department requiring the goods, constructing engineer, naval constructor, chief engineer, &c.; upon which, after approval by the commandant, the storekeeper acts. If the goods are in store they are delivered; if not, requisitions are made on the yard departments or the navy agent; or if it be for cordage, we make requisitions upon the Boston navy yard; if for copper, upon the Washington yard, &c. U. S. NA-v YARD, NEW YORK. No. 185 There is required under the appropriation for for department. Bureau of Price Dollars. Cents. Approved, Commandant. Received from Anson Herrick, naval storekeeper, the abovenamed articles. No. 2. This is the form of the storekeeper's requisition upon the timber inspector for timber or lumber: U. S. NAVY YARD, NEW YORK,, 185-. SIR: Be pleased to deliver for the U. S. Department, appropriation for Requisition No. Bureau of the following articles: Respectfully, &c., U. S. Naval Storekeeper. To Inspector of Timber, &c. 328 BROOKLYN NAVY YARD. No. 3. This is the form of the storekeeper's requisition upon the yard departments for articles manufactured in the yard: U. S. NAVY YARD, NEW YORK,-, 185-. SIR: There is required to be prepared for U. S. Department, Requisition No. appropriation for Bureau of the following articles: Respectfully, &c., U. S. Naval Storekeeper. To Naval Constructor, Sailmaker, Chief Engineer, Master of the yard, &c., as the case may be. No. 4. This is the blank form of the storekeeper's requisition upon the navy agent. If the goods are contracted for, the storekeeper notes the fact, and names the contractor. If they are not contracted for, the navy agent purchases at his discretion, the storekeeper making them " open purchase:" U. S. NAVY YARD, NEW YORK,, 18-. No. SIR There is required under the appropriation for Bureau of Respectfully, your obedient servant, U. S. Naval Storekeeper. Approved: Commandant. To the Navy Agent. No. 18 Appropriation for Bureau of BROOKLYN NA1VY YARD. 329 No. 5. This is the blank form of bills rendered by contractors to the Bureau of Construction: [In triplicate.] U. S. NAVY DEPARTMENT, Bureau of To Dr. Appropriation, 185. Class No. Contract of Dollars. Cents. Requisition No. Having examined the articles charged above, I certify that they are of the best quality, and agreeable to the contract. Inspecting ofcer. U. S. NAVY YARD, 185.-Received the above articles, amounting to dollars cents, on account of improvements, &c., (name appropriation.) Naval Storekeeper. Approved, 185 Commandant. NAVY AGENT'S OFFICE, 185 Received of, Navy Agent, dollars cents, in full for the above bill, and have signed receipts. No. 6. Blank bill of reservations on contracts; Bureau of Construction. Twenty per cent. is reserved on all contracts till the same are completed. [In triplicate.] U. S. NAVY DEPARTMENT, Bureau of Construction, 4rc. To Dr. Appropriation, To amount of per cent. reservations on delivery of at the Navy Yard under contract, dated 18 Class No. On bill of this date Having carefully examined the above per cent. reservations charged in this account, I certify that they are correct, and that the contract of for class No. has been completed. Naval Storekeeper. U. S. NAVY YARD, 18 This bill is approved for dollars. Comumandant. 330 BROOKLYN NAVY YARD. NAVY AGENT'S OFFICE 18 Received of Navy Agent, dollars, in full for the a'bove bill. No. 7. Blank bill of contractors in the Bureau of Yards and Docks: [In triplicate.] THE U. S NAVY DEPARTMENT, to Dr. Bureau of Appropriation for 185 Having examined the articles above charged, certify that they are of good quality, and conformable to con- [Signed here by inspecting officer.] tract, dated 185. Received the above article for (name the appropriation. ) Navy Storekeeper. NAVY YARD, NEW YORK, 185. This bill is approved for the sum of dollars. $ Commandant. NAVY AGENT'S OFFICE, rew York, 185. Received of George N. Sanders, Navy Agent, dollars and cents, in full of the above bill. $ No. 8. This is the blank for open purchase bills: [In triplicate.] THE UNITED STATES NAVY DEPARTMENT, to Dr. Bureau of Appropriation for 185 $ I Having examined the article above charged, we certify ned by inspecting officer. that it is of good quality, and charged at the market price. officer 185. Received the above article for (name the appropriation.) Navy Storekeeper. NAVY YARD, NEW YORK, 185. The public exigencies required the immediate delivery of the articles mentioned in this bill, and there not being time to advertise for proposals, the articles were properly obtained by open purchase, and the same is approved for the sum of dollars and cents. $'Comonandant. BROOKLYN NAVY YARD. 331 NT[VY AGENT'S OFFICE, NxwV York, 185. Received of George N Sanders, Navy Agent, dollars and cents, in full of the above bill, and have signed triplicate receipts. No. 9. This is a certificate bill where there is no question about market price, where the article is not contracted for: IIn triplicate.] THEE U. S. NAVY DEPARTMENT, To Dr. Bureau of Appropriation for 185 Having fully examined the above charge, certify that it is correct. 185. Navy Storekeeper. NAVY YARD, NEW YORK, 185. This bill is approved for the sum of dollars. Commandant. NAVY AGENT'S OFFICE, New2 York, 185. Received of George N. Sanders, Navy Agent dollars and cents, in full of the above bill. Appendix to Win. Merrifeld. NEW YORK, March 6, 1858. DEAR SIR: On my return here I learn that my friend from my district have no consideration with you, that I have but one from my district, and that other Congressmen have their due proportion. I now inform you that I have the evidence of these facts, and that unless you immediately write me, at Washington, that you will grant me what I am entitled to, and forthwith employ my proportion of men, I will at once demand your discharge. I have been forbearing sufficiently long, and now I will act, unless you deal fairly with me. Respectfully, yours, JOIHN COCHRANE. WM. MERRIFIELD, Esq. NOTE.-At the time this letter was sent to me I had eleven men residents of Cochrane's district employed in the smith's department. I sent a list of the names at the time. WMi. MERRIFIELD, Master Smith. 332 BROOKLYN NAVY YARD. SEPTEMBER 16, 1858. DEAR SIR: I want you to put on Edward Tracy, of the 11th ward, whom you know. I must have him put on, and will not be denied, if you have to turn out a man for him. I want, also, one man for John Hart, of the 11th ward. They both (Hart and Tracy) will be over to see you, when I want you not to fail to give each a place. I must have these places. Yours, &c., JOHN COCHRANE. Mr. MERRIFIELD, BROOKLYN, February 15, 1859. Enclosed you will find the letters sent to me by the Hon. John Cochrane. Respectfully, yours, &c., HWM. MERRIFIELD. Hon. JOHN SHERMAN. PHILADELPHIA NAVY YARD. 333 PHILADELPHIA NAVY YARD. NO. 21.-TESTIMONY OF JOHN J. McELHONE, PHILADELPHIA. JANUARY 31, 1859. JOHN J. ICELHONE, called and examined. By the Chairman: Question. Were you residing in Philadelphia preceding and at the time of the last October elections? Answer. Yes sir. Question. Do you know whether shortly before that election any member of Congress applied for a larger number of men to be put in to the navy yard than there was needed? Answer. Not of my own knowledge. Question. Did you ever hear anything of a correspondence between the commandant of the yard and the Department about receiving more men? Answer. I have heard of it. Question. Do you know anything of your own personal knowledge? Answer. I do not. Question. Was any of this correspondence published in the newspapers? Answer. Not that I recollect, I do not think there was. Question. Do you know whether the commandant of the yard was removed? Answer. I think Commodore Stewart was the commandant of the yard at that time; he is not there now. Question. When was he removed? Answer. I think he resigned or obtained leave of absence.. Question. Were you often in the navy yard yourself? Answer. No sir, I live some three miles from the navy yard, and when I went to that part of the city it was to attend public meetings at night, when the navy yard was closed. Question. Who was the officer in charge of the yard last fall? Answer. I think that Commodore Stewart had charge of the yard. Bv iMr. Boocok: Question. Do you know when Commodore Stewart left there? Answer. I do not recollect precisely; and I know nothing more about it than what was stated in the newpapers, that is that he had resigned or gone abroad on leave of absence. Question. Was that before the election or since? Answer. Since the election; that is my impression of it, but I cannot be certain about these things. J J..McELHONE. 334 PHILADELPHIA NAVY YARD. No. 31.-TESTIMONY OF HENRY S. CRABBE, PHILADELPHIA. FEBRUARY 3, 1859. H. S. CRABBE was sworn and examined. By the Chairman: Question. What is your official position? Answer. My official position is commodore's secretary or conmmodore's clerk. Question. How long have you been there? Answer. I have been thirty-five years in the service of the government at the navy yard at Philadelphia, and twenty-six years in my present position. Question. Has any effort been made during the last summer or fall to crowd the yard with laborers? Answer. I can only say in answer to that, Mr. Chairman, that we had a very large number of people employed, but I do not know that any effort was made to crowd it more than the service demanded. Question. Do you know anything about some fifty or sixty men put on there at one time by order of the Navy Department? Answer. I know there were a number, the precise number I cannot tell, probably fifty or sixty, more or less, I am not positive about the number, employed as oakumn spinners, I think. Question. State the correspondence that occurred between the yard and the department in regard to those oakum spinners; the substance of it, as near as you can recollect it? Answer. Without reference to the record I should not be willing to state under oath vwhat the correspondence wats; I do not know tlhe nature of it; I do not know indeed that there was any correspondence, although there may have been. Without reference to the correspondence I could not say. Question. Do you not know that an application was made to the commandant or to some officer of the yard, to put those men at worlk in that place? Answer. I think so; but am not willing to state positively that such was the fact. Question. What makes you think so? Answer. There is something dwelling upon my mind that something of the kind occurred; but I have no reference to records, and am not willing to swear positively to the case. Something dw-ells upon my mind with regard to the occurrence you mention. Question. Don' t you know that the commandant of the yard declined to receive them, and wrote to the Secretary of the Navy for instructions upon the subject? Answer. I have the same answer to give. I do think somethilng of the kind occurred. My duty is to know these things, because I \write the letters. I write all the correspondence between the conmmandant and the departmlent, excepting, -Iere professioral matter's are concerned. Question. Who was your commaniia.ut,? PHILADELPHIA NAVY YARD. 3 3.5 Answer. Comrmodore Stewart, Question. Who is your commander? Answer. Commander Carr. Question. Can you remember the substance of a letter sent by the commandant to the Secretary of the Navy upon the subject of the employment of those oakum spinners? Answer. I do not remember the substance of it; if I could I would acknowledge it at once. Question. Do you say that you cannot recollect the substance of that correspondence? Answer. Indeed I cannot; I have a very large correspondence to conduct, and it is impossible for me to have any distinct remembrance of any particular matter. Question. Was a letter written upon that subject? Answer. About the oakum spinners? I think so. Question. Do you remember the reply of the Secretary of the Navy? Answer. I think I do remember the substance of it, but it was from Commodore Smith, I am not positive about it. It is a very serious question to me, having no reference to the records; but I think I do remember that the substance of what he said was that the men must be taken in as the exigencies of the service required it, or somnething of that kind. Question. What reply was made to that letter? Answer. I cannot tell, sir. Question. Were the men taken in?. Answer. Yes, sir. Question. Were they needed in the yard? Answer. Of that, sir, I am not competent to judge. My. duties do not qualify me to judge. That is the naval constructor's business. Question. Do you know that the naval constructor remonstrated against their employment? Answer. I do not, sir. Question. What did he say about it? Answer. I don't know what he said. Question. How do you know that he remonstrated? Answer. Because I heard him say that their services were not needed. Question. Did not he ask you about it? Answer. Not the naval constructor, sir. Question. The men were put to work under the naval constructor? Answer. Yes, sir, under his authority. Question. Upon whose recommendation was this done? Answer. That I cannot tell. I will only say that the system upon which men are taken into the Philadelphia navy yard, is that by a printed regulation of the Bureau of Construction; the plan has been to make a requisition by the master workman who has the men under his control. That is sent to the naval constructor for approval, and then to the commandant for approval. Question, I will ask you whether, when the master workman made 336 PHILADELPHIA NAVY YARD. the requisition and sent it to the commandant, he did not decide that these men were not needed? Answer. I do not think by written letter, or anything of this kind; but I have a distinct recollection of hearing him say they were not needed. Question. Did not Mr. Florence appear in the yard and insist upon their admission? Answer. Not to my knowledge. Question. Did not you know that there was a dispute about it between Mr. Florence and the commander of the yard? Answer. No, sir; I should not have known it in that case, but if it had been with Commodore Stewart I should. Question. How long were the men employed in the yard? Answer. Perhaps a month, or less; I have no idea. Question. How long was it before the election? Answer. It was before the election, but I cannot say how long. Question. A few days? Answer. I think not, many days, Question. How many days, one or two hundred? Answer. Oh no, sir; something more reasonable than that. Thirty days, or twenty perhaps, I am not able to state. Question. I will ask you whether in September last all the departinents of the navy yard were not fully stocked with men? Answer. As I said before, we had a very large number of men employed in the navy yard until a very recent period, and perhaps we have had within the last six months more than we ever had before. Question. How many had you in September last, as near as you can judge? Answer. I think something like fifteen hundred, sir. Question. What is your ordinary number? Answer. For the last two years we have had from one thousand to twelve hundred, probably. Question. H'ow many have you now? Answer. From nine hundred to nine hundred and fiftyo Question. When was the number largest? Answer. In November last, to the best of my recollection. Question. How was it between the 1st of September and the 1st of November? Answer. It is almost impossible for me to give any answer to a question of that kind. I know that the number was gradually increasing," but I cannot tell to what extent. Question. Has Commodore Stewart active charge of the yard? Answer. No, sir; he has had leave of absence for six months. Question. When did he leave? Answer. Upon the 3d of December. Question. Has any officer of the navy in Philadelphia been superseded during the last few months-superseded or removed? Answer. Captain Lee was superseded last July. Question. Do you know why? PHILADELPHIA NAVY YARD. 337 Answer. His term of service had expired, according to the rule of the department. Question. Do you know any other reason? Answer. Not any, sir, is known to me. Question. Where is your office as clerk of the commandant? Answer. In the adjoining room to the commandant's office, with a communicating door. Question. You conduct all the correspondence? Answer. All the correspondence, excepting in the case where nautical knowledge is required, and then I take the commandant's rough draught, or instructions. Question. If I understood you, you said that the substance of the Secretary's —I mean Commodore Smith's reply was that the men must be taken, or the exigencies of the service provided for. Answer. I think so; I do not answer that positively. That is my impression of the purport of the letter. Question. Do you know whether any officer of the navy yard there had certified that the service demanded these eighty additional workmen? Answer. No, sir. Question. Do you know that they did not? Answer. No, sir, I do not. Question. Was the number sixty or eighty? Answer. Sixty, I think-perhaps eighty. Question. Was there any controversy in regard to any other requisition for new laborers? Answer. There is a controversy about almost every requisition that comes up for the commandant's approval. He exercises his judgment about it, and sends for the naval constructor if he thinks the number proposed exceeds the government wants. Question. Did the naval constructor object to any others after those? Answer. Not that I am aware of, sir. Question. Did you hear him say anything about this transaction? Answer. Nothing, excepting about the oakum spinners I have mentioned. Question. After that was any reference made to it? Answer. No, sir; not to my knowledge. Question. Did you have any conversation with him about it? Answer. No, sir. Question. Did he express any feeling about it? Answer. No, sir; no further than he said he did not think they were needed. Question. Did he say for what purpose they were introduced into the yard? Answer. No, sir; not to me. By Mr. Bocock: Question. What particular work was going on last fall that made a large force necessary then? Was there any unusual amount? Answer. Yes, sir; for the last two years there has been a very large 22 D 338 PHILADELPHIA NAVY YARD, amount of work at the navy yard. At the time you speak of, we were repairing the "Congress;" building the "Lancaster," which was launched about the 20th of October; we were building what the government chose to call propeller sloop No. 1, giving her no proper name; and also the propeller sloop No. 2; we were fitting out a steamer for the Paraguay expedition; we were repairing a vessel which was run into by a United States ship, near Norfolk, a "Richmond" packet. I believe these were all the vessels on hand: and then we had the incidental work of the yard, as it occurs daily, the clearing up of the yard, &c. Question. How does it happen that you are able to get along now with a so much smaller number of men? Have you a sufficient number of men now? Answer. Yes, sir; the answer is simple. Two of the vessels I spoke -of have been launched, and the workmen are no longer required, as when they were on the stocks. The "Congress" is nearly completed. The steamer for the Paraguay expedition has sailed. The packet ship "Richmond," which we were repairing at that time, has been repaired and left. Question. When was the State election of Pennsylvania? Answer. On the second Tuesday, of October, I think. Question. When did you commence the diminution of the number of men? Answer. Not until after November, sir. It may have been in the month of November. I will not say positively it was after that month. Question. Did you commence the diminution of the number of men before your work was diminished; or how was that? Answer. No, sir; after the ships were launched-the last one was launched, I think, about the 19th or 20th of December-then we made a pretty large discharge. At all events, after that last ship was launched the number was smaller, and we have continued to decrease the number since. Question. Do you know whether Mr. Florence had anything or not to do with those 50 or 60 oakum spinners, either way? Answer. I believe they were put there at Mr. Florence's request. I had no positive knowledge of it. He never said anything to me about it. Question. Why do you think so? Answer Because Colonel Florence was repeatedly at the yard at that time, and he may have spoken to others about it if not to me. Question. The fact that he was there makes you think so? Answer. Such an impression dwells on my mind. Question. What has been the management of the yard, as to the quantity of work done in proportion to the amount of labor employed, the efficiency and excellence of the work, &c. Answer. The working department of the yard, by the direction of the government, is entirely under the control of the constructor, who directs things as his mechanical judgment indicates to him is proper. The commandant exercises no control over that department, except PHILADELPHIA NAVY YARD. 339 ing so far as the approving or disapproving of the requisitions for workmen is concerned. Question. What is the efficiency of the working department? Answer. I know that the working department is very efficient. Question. Do you know how the men work, as compared with workmen outside the yard? Answer. No, sir; I do not. I have no opportunity of judging how they work outside the yard. My experience is altogether within the walls. Question. What is the quality of the work? Answer. The quality of the work performed at the Philadelphia yard will bear comparison with any in the world. Question. You have been there a long time, and I should like to have your opinion as to any regulation by way of reform which could be adopted by the government. What could we do to increase the quantity of work and make the yard more efficient, or to save expense? Answer. I understand the idea, but coming to me just at once, I don't know that I am prepared to answer it immediately. It seems to me that if the commandant were made responsible for the number of workmen employed, it would be a check upon an undue number being taken in. At present the commandant has not that authority; at least he is not the responsible authority. The commandant is not likely to be influenced by any political causes, as others might be. By Mr. Groesbeck: Question. Had you more men before the second Tuesday of October, or after? Answer. We had more men in the month of November than in October, so far as my memory serves me. I shortly since made a report to Commodore Smith giving a detailed account of the number of men employed for every half month during the year. That report I supervised. Question. Who determines when you have to increase the number of workmen, what shall be the number of the increase? Answer. It ought to be determined by the naval constructor. Question. Who does determine it? Answer. You are probably aware that in a navy yard there are various heads of departments, master carpenter, master blacksmith, master joiner, master laborer, &c. These gentlemen first make a requisition upon the constructor that so many men are needed. The constructor exercises his authority whether to allow or to disallow it,. If he approves it, that requisition, in the same shape, is sent to. the commandant. If he disapproves it, it is referred back, and the number reduced. If he does not disapprove it, the requisition passes and the men are employed. Question. It is the master of the several departments, then, in the. first instance, that determines the number of the increase to be made? Answer. Yes, sir. Question. These 60 men were all going into into one departments of the yard? M40 PHILADELPHIA NAVY YARD. Answer. Yes, sir; under the immediate control of the master caulker. Question. Were they all to work in that particular line? Answer. Yes, sir, and all as oakum spinners. The master caulker has four descriptions of men; first the caulkers, then the seamers, to open the seam in which the oakum is to be placed; then the pickers and last the spinners to spin out the long lines to be driven into the seam. These four descriptions come under his control as master caulker. Question. Did you ever have so large a number of oakum spinners as that before? Answer. I am not sure of that; but I think we had, in 1837, when the " Pennsylvania," ship-of-the-line, was being prepared to launch. Question. Do you know whether they had reasonable employment, or not-? Answer. I do not. Question. How long were they continued there after the day of the election? Answer. That I cannot answer; but I do not think a great while. I cannot give a positive answer. I do not know how long. By Mr. Bocock: Question. What need had they of oakum in the yard at that time? Answer. We were building ships for the service, and they had to be caulked. The "Congress" was being repaired, the "Lancaster was being built, &c. By the Chairman: Question. Was no mechanical skill required in this work? Answer. Yes, sir; a little, or a little experience. He must have a little experience in the matter. It is spun out into long yarns and then carried out and put into the seams and driven in with the reaming iron. Question. What is the best season of the year to repair a vessel? Answer. Well, sir, I should say the fall, and I will tell you why. In the summer season the heat of the sun opens the seam after it is caulked, and it very often happens that it soon has to be re-caulkedsometimes the deck and sometimes the side. Question. Is it not understood that the best month in the year for caulking a vessel is November or December? Answer. I never have heard that expressed; but my own experience would suggest that the fall would be the best time. Question. Has it not been very common and customary to send vessels to the navy yard of Philadelphia for repair within a month or so before election? Answer. Not to my knowledge. They come at all seasons of the year; at mid-winter or late in the fall. Question. Was it not done last fall? Answer. Well, sir, the "Congress" came in there, so far as my knowledge goes, in June or July; and that is the only vessel sent there at that time, excepting the small steamer for the Paraguay expedition, a little steamer built in Rhode Island. PHILADELPHIA NAVY YARD. 341 Question. Who were the owners of that little vessel? Answer. I think, sir, a person by the name of Chapin; I do not know the initials. Question. Did not that vessel belong to Tyler, Stone & Co.? Answer. Not to my knowledge. Question. Had she been used as a coal tug before, between Hartford and Philadelphia? Answer. She was used in that vicinity; but for what purpose I cannot tell. Question. Do you not know? Answer. No, sir; the only knowledge I have is, that it was a little steam propeller used in those waters. Question. What was paid for her? Answer. I do not know. There was a contract between the Bureau of Construction and the owners of that vessel, which I never saw. I do not know anything about the price. Question. Do you fill more than one office at the Philadelphia navy yard? Answer. No, sir. Question. Have you within the last year performed the duties of others? Answer. I have assisted at others, but I have not performed the duties of others. My son holds the office of clerk of the yard, and we are very often up until 12 o'clock at night, and frequently until 3 or 4 o'clock. No one man could do all the work. At this time, during my absence, my son is doing all my duties. Question. Does your nephew hold an office? Answer. My nephew holds the office of second clerk to the commandant. Question. Have they not been absent while you have performed their duties? Answer. Not altogether; I have had to perform the duties of three officers occasionally when they have been absent; they have been occasionally excused by the commandant and I have performed their duties; but they are'there upon all occasions when their services are required. Question. How much of the time are they there? Answer. They may probably devote one-fourth or one-half of the time to the performance of these duties, I cannot say exactly, sir. Question. Do they draw pay? Answer. They draw their own pay and receipt for it. Question. Is there any deduction in consequence of their absence, or are they salaried officers? Answer. They are salaried officers, sir. By Mr. Bocock. Question. What office does your son hold? Answer. He is clerk of the yard. Question. What office does your nephew hold? Answer. He is second clerk to the commandant. 342 PHILADELPHIA NAVY YARD. Question. What is your salary? Answer. It is $900 as the Fourth Auditor has decided; but under a late act of Congress I received a larger salary $1200. Question. What is your son's salary? Answer. $900. Question. What is your nephew's salary? Answer. $750. HENRY S. CRABBE. No. 32.-TESTIMONY OF OVERTON CARR, PHILADELPHIA. FEBRUARY 3, 1859. OVERTON CARR was sworn and examined. By the Chairman: Question. What is your official position? Answer. I am commander in the navy, sir; I am the executive officer of the Philadelphia navy yard. Question. Where are you stationed? Answer. I am now attached to the Philadelphia navy yard. Question. When did you go there? Answer. The first of July last; I will state that the Philadelphia navy yard was a little different then from what it now is, from the fact that the real commandant being old and living out of town most of the duties as commanding officer were thrown upon myself. Question. State, if you please, what you know about the controversy in regard to some oakum spinners put into the yard some time during the last fall or summer? Answer. I am a little at a loss as to the date; there was a requisition made for eighty oakum spinners; where that requisition came from I do not know; but the constructor refused to sign the requisition for these men to come in; I ought to explain that this is a matter which belongs to the bosses of the yard, as they are called, the master mechanics. the master caulker, &c., and the constructor of the yard; we, the navy people proper, have merely a sanction; that was so then, it is not so now. They made this requisition, and it was Brought to me. First, I believe it went to the constructor, Mr. Grice, who refused to sign it; the master caulker brought it to me; I was then young in the yard; had been there perhaps a couple of months, and I said no; unless Mr. Grice requires these people, I will not sign such a requisition. The sanction of the commandant of the yard is for the purser to pay; there the thing stopped; I cannot tell you how or why it was done; for we had I think, 10 or 15 oakum spinners in the yard; the matter came down here to the department and we had an order, (I am trusting to memory, gentlemen,) I think, from Commodore Smith, the chief of the Bureau of Yards and Docks, which is regarded by us as authority as much as the Navy Department itself, to take in eighty oakum spinners; I then went to Mr. Grice and said to him that those eighty men would do up the work in ashort time; I should have said that these oakum spinners w homn we had were old salts, who had lost their legs perhaps, because h is work is nothing but rubbing the oakum upon the knee, and we PHILADELPHIA NAVY YARD. 343 can employ these men at that. Said I, if you do that, you will turn out these people; you will do up the work in a short time, and they will have to go. The order was issued; these men came in, and did the work; and when the work was done they were all discharged. That is all I know about the eighty oakum spinners, excepting that I may add that in the morning I had the curiosity, having heard so much about politics, to go down and take a look at these people when they came in; and they were the lame, the halt, the blind; but they did the work; I made a place for them until they worked the oakum up. Question. By whom were these men selected? Answer. Under the master caulker.. Question. What part had Mr. Florence in this transaction? Answer. None, that I know of. Question. Was he in the yard at the time? Answer. No, sir; I think he was at Washington; I am not sure of that. Question. Was his name mentioned in connexion with that? Answer. Never; he never applied to me, and I never put one in; but the list came up to me signed by the master caulker, and endorsed by the constructor, and I think I signed it; for you will find from the regulations that it is a matter left entirely with them. Question. How long before the election were these persons let in? Answer. We have so many elections there that really I cannot say. Question. I mean the October congressional election? Answer. My memory is at fault, but I think it was six or eight weeks after I went there; about the first of September, I suppose, but I cannot say positively. Question. Do you know how long they were kept? Answer. No, sir; but trusting to memory again, possibly three weeks; the books will show. Question. Were they kept diligently at work? Answer. Yes, sir. Question. Was it before or after the election that they were discharged? Answer. They were discharged before the election. There may have been some kept until afterwards. But the work was very soon done up, and in the sloop caulking now we are using the very oakum spun at that time. Question. Could those 15 men you had at the time have done the work necessary for the yard? Answer. No, sir; because we were ordered to prepare the Lancaster immediately for launching, and to build the sloop as soon as possible, and get everything ready for her. Question. What accumulation of men was there about the time of the election? Answer. I think roughly, trusting to memory entirely, 1.600 and something. One fact is that we had more men after the election than at that time or before. Question. Were more men employed than were really necessary to do the work then going on? 344 PHILADELPHIA NAVY YARD. Answer. No, sir, I think not; that is my province; there might have been a great many men who skulked, for, as you may suppose, one eye cannot superintend 1,700 men, nor can 40 men do it. They were immediately under the direction of the master mechanics. Question, Had you any power in the selection of these men as to their qualifications? Answer. None, sir, excepting the sailor gang of 40 to 60 men, whom I employ about the ships, and anchors, &c., and whom I have entire charge of. As to the men employed under the master mechanics, the carpenters, &c., none, sir; it is left entirely to the master mechanics. Question. Were there any complaints made to you as commander that some of these men answered to the roll call and shirked their work? Answer. No, sir, none; because he would have been discharged immediately. Question. What was the object in getting these oakum spinners in there? Answer. I cannot tell you that, sir; we obey orders-at least I do. Question. I ask whether, in your judgment, it had anything to do with the pending election? Answer. I give you, sir, the truth in candor; I had been so short a time there, and was so little of a politician that I knew nothing about the elections; I do not know; I only know that we have not had any oakum spinners in since, and I did not order them in. Question. Do you know Mr. Florence, the member from that district? Answer. Yes, sir, I know him. Question. How frequently was he in the yard? Answer. I have only known him since I have been in the yard there. It is hard to say how often he was there. I cannot say that he is more in the yard than Mr. Phillips or Mr. Landy. Question Upon whose recommendation are the master workmen appointed? Answer. I do not know, sir; but I presume it is like every other appointment under this government of ours. I know they are appointed by the bureaus. It comes as an executive appointment. Question. You do not know upon whose recommendation? Answer. No, sir, I do not; I have no means of knowing. By Mr. Bocock: Question. From your knowledge of the condition of the public work there, and of the time at which these men were appointed and discharged, was the impression made upon your mind at the time or not, that their being brought into the yard had reference to the election? Answer. No, sir; in one respect, yes; not as to the men, but as to the work; because the work was ordered there, and there was the work to be done. We were ordered to build two sloops. The work was there and we had to draw in these people, for instance as to the piling away of the live oak. If you will allow me I will explain that. 3Mr. Swift had some there, and it cumbered the yard so that I saw that the men could not come in or the live oak must go out, and I PHILADELPHIA NAVY YARD. 345 wrote that to the bureau. Then Mr. Swift wrote. Pile it, if you can find a place, at my expense. I acceded to that, the department approved it, and it was piled away. The work was there to be done. My associations are entirely different from those people and I knew nothing about it excepting officially. Question. You say these men were the lame, the halt, and the blind. Did that have the effect of preventing their discharge of the duties of an oakum spinner? Answer. No, sir. [The witness proceeded to explain by illustration the process of oakum spinning.] Question. Did they work faithfully there? Answer. Yes, sir, I believe. I made it my practice at half-past eight, when I was through my breakfast, to go straight through, and to go through four times a day to see the men at their work. Question. Was it necessary to have oakum? Answer. Oh, yes, sir; you do not launch a vessel until she has been caulked, sides, decks, &c. We caulk them upon the stocks. Question. Did the employment of these oakum spinners operate prejudicially to the interests of the government, or not? Would it have been better for the interest of the government not to employ these men than to employ them? Answer. No, sir; not as to the government. But it was a little detrimental to those in there who might have been employed all winter. For instance, we have a master caulker with but two men in the yard. The caulking oakum spinners are all gone. If you, gentlemen, will give us an appropriation for two or three more vessels, we have the most of the oakum there, spun already. By Mr. Groesbeck: Question. You have an extra supply there? Answer. No, sir; we have a supply. We anticipate a little for we do not know when an order may come. Question. What is the general arrangement of the yard in reference to the workingmen, their fidelity, &c? What has it been since you have been there? Answer. That is difficult to answer, because four or five weeks ago we had an order which makes the management entirely different from what it was before that. Before that time, not only in my time, but under Captain Lee, my predecessor, there was a difficulty. There had been a fight for a long time, for five or six years, between the military authority and the political authority. In other words, Mr. Grice, and those bosses or master mechanics, before that time, under an order dated 1855 or 1856, had the management. It was mainly under the bosses and under the constructor. Question. Under whom is it now? Answer. Now it is under Captain Engle and myself. The witness was shown the following: 346 PHILADELPHIA NAVY YARD. CIRCULAR. NAVY DEPARTMENT, December 14, 1858. The commandant of a navy yard, at any time when in his judgment the public interests require it, is authorized to direct the discharge of any of the men employed in the yard under his command. He will report to the department when the services of any of the master workmen can be advantageously dispensed with; also any just ground of complaint which may come to his knowledge against any of them. ISAAC TOUCEY, Secretary of the Navy. To the COMMANDANTS of Navy Yards. Question. Is that the order to which you refer? Answer. Yes, sir, that is the order. By Mr. Ritchie: Question. What was the quality of the work done in that yard? Answer. I can only tell you as regards my own experience in the vessels in which I have served, and from what I have seen, so far as my judgment goes, there is none better. I served in the " Germantown," which was built there, and we were proud of her. That was years ago, and I do not know that the skill has deteriorated at all. I do not know that the work is not as good now as then. Question. Does the work at present seem to be well done? Answer. Yes, sir, I think it is good; I see none better. One thing is to be borne in mind, I am speaking of the hull, masts, sails, and rigging. Steam machinery we have nothing to do with. That is built outside. By the Chairman: Question. What, so far as you know, determines the appointment of the master workmen: is it political considerations or the fitness of the man for the place? Answer. They were all there when I went there, and have all been there since. Question. How has it been in the navy yards generally for the last few years? Answer. Of my own knowledge I know nothing, but I can give you the general impression among the naval people that it is a question of politics. I know nothing about it, but that is the opinion among us. Question. Have you any control over their discharge? Answer. No, sir. Question. Is not that power given under this late order? Answer. No, sir; that only instructs us to report them. Question. How are they appointed? Answer. They are appointed down here, I believe, by the Bureau of Yards and Docks. The circular gives us power to discharge the men, but they are under the charge of these master workmen. But I am especially responsible for the care of the ships, and I will have PHILADELPHIA NAVY YARD, 347 sixty sailors to take care of those ships. I am responsible for that, and these men are left entirely to me. Question. To what do you attribute the decrease in the number of men in your yard? to the effect of that order? Answer. No, sir; we are worked up. We have launched the Lancaster and the No. 1 sloop; the "Congress " is ready; we have stored all the timber, and we intend to make further discharges as soon as we have cleared the yard up. By Mr. Ready: Question. Has it been customary, in the navy yard at Philadelphia, to introduce an extraordinary number of laborers in any one department and work up a large amount of material, and to keep it on hand ready for use when called for? Answer. We never did it before, and we have never done it since, during the time I have been in the yard. I do not know the custom, because I never was at a navy yard before, excepting as a midshipman when a youngster aboard ship. Question. Do I understand you to say that since the election there has been a larger number than before? Answer. Yes, sir; I think so. Question. State whether this employment in the caulking department, to which reference has been made, produced any waste. Answer. Oh, no. Question. Was it produced at an extra cost? I wish to know whether there was any waste of money in that employment; whether it was anything more -than crowding into that month labor which otherwise would have been suspended for two, three, or more months? Answer, No, sir; there was no loss of money or material, because the material was there and has been used since. The difference was that instead of employing fifteen men for three months, we employed eighty men for perhaps three or four weeks. I speak generally; I do not mention that for number and dates. By Mr. Bocock: Question. Do you say, without reference to this order, that you had before no power over the selection of the men employed? Answer. None, sir, over the mechanics. [The witness was shown the following, from the regulations of 1857: "They (the master workmen) will be allowed the selection of the operatives to be employed in their respective branches of labor, subject to the approval of the chiefs of departments and the sanction of the commandant, and will be held accountable for the proper execution of the work under their charge, and that none but efficient and competent men be employed."] Question. Is that in accordance with what you state. Answer. Yes, sir; that produces the idea clearly. The circular is not in that language. This says, under our "sanction." That sanction, as Conmmodore Stewart construes it, was an order to go upon the purser's books, and for the purser to pay them. 348 PHILADELPHIA NAVY YARD. Question. Had not the requisition to be approved by the commandant of the yard? Answer. Certainly; but allow me to illustrate. I am, in the yard, a naval officer. You, as master blacksmith, say that certain men are needed, and efficient. I will not undertake to say that a machinist or a blacksmith is not a good workman. The master workman is to be the judge of that; he is supervising the workmen. But if I find him skulking; if he is drunk or disrespectful, I can turn him out, and there is the authority for it. As to the good workmen, that rests entirely with the master workmen, the bosses of the departments under the constructor. The order of December 14 rather contravenes that article. OVERTON CARR, Commander, United States Navy. No. 82.-THOMAS B. FLORENCE, HOUSE OF REPRESENTATIVES. FEBRUARY 14, 1859. THOMAS B. FLORENCE called and examined. By Mr. Bocock: Question. Did you call upon Commodore Smith, or upon the Secretary of the Navy during the last summer in regard to the employment of certain oakum spinners in the Philadelphia navy yard? Answer. I did. Question. Please state all that occurred with regard to that matter; your interview with the department, and the result of it. Answer. I think it was in the month of August. (I am not very sure of the date, because, I may here just premise, parenthetically, that it is no unusual thing for me to make an effort to obtain employment for the workmen of my district in Philadelphia for any department of the government. I have been at it ever since I have been in Congress and before. Consequently I cannot exactly fix the time.) I think it was in the month of August, however. I understood that the necessities of the service at Philadelphia would require an addition to the force of that yard of some 30 or 40 spinners of oakum. I said to the master workman, why not make it 80? there are men starving. My house is run down daily by applications from people absolutely starving for want of employment. Why can't you make it 80? He said, Mr. Grice objects to it. Said I, I don't understand why, in the present dearth of employment, 80 people cannot be employed for three weeks and have the service performed at once, as well as to have 30 or 40 persons employed for six or eight weeks. I think half a loaf is better than no bread. I will see if I can't get it done, because I believe they ought to be employed; and if it is no disadvantage to the service I will see that they are, if I ean accomplish it. I came to Washington, (not for that purpose, however,) a few days afterwards; and I went to the Secretary and complained to him that the dearth of employment in Philadelphia was so great that it was an act of charity to give employment to as many men as could possibly be employed. If the necessities of the service require 30 oakum spinners, I desired PHILADELPHIA NAVY YARD. 349 that it might be increased to 80; for I had learned that that number could be accommodated in the oakum loft; that they could be employed without disadvantage to the government, and it was right to give them the employment. The Secretary said he knew nothing about the working of that department, and referred me to Commodore Smith, and said that if Commodore Smith, chief of the Bureau of Docks and Yards, could consent to it, consistently with the duty he owed to the service, it might possibly be done. I went to Commodore Smith and told him what I have told you. Said he, will you put that on paper? I said, yes, gladly enough; hand me a sheet of paper and I will write a letter to you, and let us give some of these people bread. I related the circumstances. There was a lithographer, a young man with a family, who could earn $28 a week by lithographic printing when he could have the work, but who had been unemployed 13 months, and was absolutely starving. Give such a man three or four weeks' bread, and in that time some turn of affairs might occur by which he could get employed at his business. While these people were really starving, it was better to employ 80 men than 30, and spin enough oakum to meet the wants of the service and end it. That was the case, and twothirds of them, I think, were dismissed in three weeks. Question. Was that before the election or after it? Answer. It had nothing whatever to do with the election. Question. Were they discharged before the election? Answer. They were; nearly or quite all of them. Question. How long before the election? Answer. About six weeks, I think; as many as four weeks, certainly. By the Chairman: Question. You handed the letter to Commodore Smith; what then? Answer. He told me he would make the order; the order was made, the men were employed, and thanked God a thousand times for it. Question. Did you have further conversation with the Secretary about it? Answer. No, sir; I do not think I saw him after that. I had accomplished my mission, and I thanked God for it, and I whipped it off to Philadelphia to give bread to those people; and I will do it again if the same necessity suggests itself. By Mr. Bocock: Question. Were you in the yard while these men were there? Answer. I am frequently in the yard. I was born not very far from it and have lived near there all my life. If I did not go into the yard, the people there would hardly knew why, and their curiosity would be excited to know what had become of me. I began very early with that, and am going on with it, and intend to continue until the day of my death, if I can. I am a sympathizer with these working people, and I try to be their champion and defender. It has been in pursuance only of the generous sympathy of the human heart which has prompted me to do what I have in relation to procuring employment for the working people of Philadelphia and elsewhere, upon my conscience and honor. 350 PHILADELPHIA NAYY YARD. By Mr. Ritchie: Question. Have you never made any distinction between men of different parties? Answer. I have generally recommended democrats. Question. Then your sympathies were upon that side then? Answer. I have generally recommended democrats; they are generally suffering the most, and have less chance than the others up our way. I do not know whether in this instance I discriminated at all, for others may not have applied to me, but I trust that is not a crime. By Mr. Bocock: Question. Were any men appointed under this order that were not able to discharge the duties of the place? Answer. I apprehend not. The oakum left is always, or is regarded as a refuge for the halt, the lame, and the blind. The labor is merely the manipulation of broken up rope. It is a sort of refuge for caulkers, sailors, ship carpenters, &c., who are aged and'unable physically, to do hard work. I do not know that they are all democrats, numbers have got work there who are not democrats. A good many had work through my efforts, and by the aid I presume of my democraticcolleagues, who worked during the period before and at this election against us, certainly against myself. I may as well say this to go with the other. My own judgment is that a majority of the ship carpenters of Philadelphia are not with us. I think, for I have been told so, they are mostly Americans; I mean to convey the idea that they in their political opinions are of the American party, so called; but I believe, for I have been so informed, a good many of them living in my district voted for me at the last election; indeed I have heard that all did, with scarcely an exception. There was a peculiar association of influences that brought it round. These political revolutions are ever going on; sometimes these influences throw up a different vote. Since I have been a candidate for Congress, there have been two or three revolutions in the sentiment of the district I represent. I have been generally thrown up on the top wave, whatever brought it about, and sometimes I have been aided by gentlemen not of my political household. I think it was so in the last instance, that I was materially aided by men not of my party, political faith or opinions. Question. Do you know how often Mr. Phillips was in the yard? Answer. Very seldom, sir. I do not think he has been there four times in his life. I have known Mr. Phillips from his earliest boyhood, and I have had with him that sort of intimacy that one friend has with another. I think he went twice to the navy yard during the last summer, and I do not think he was there at any other time. I am very sure he was not in the habit of going there. Mr. Phillips and I differed somewhat in our opinions as to the conducting of the navy yard. Question. Was there any addition made to the number of men employed in the Philadelphia navy yard, at the request either of yourself or of any one else within your knowledge, just before the election? Answer. By the department, no. I am all the time trying to get people in. I wrote yesterday perhaps a dozen letters, and expect to do the same to-morrow. I refer the matter to the master workmen. PHILADELPHIA NAVY YARD. 351 I am recommending men every day of my life. I have sometimes 50 letters a day, most of them asking for employment in the navy yard, the dearth of employment is so great. Gentlemen can hardly appreciate the position in which I am placed, unless they occupy a similar position. In the cities we have all sorts of mechanics asking for work. In the navy yard at Philadelphia, there was an unusual press of business last summer. There were three vessels-of-war being constructed at the same time, which was a very rare circumstance, and it rendered necessary the employment of a larger force than usual. It directed attention to me and to every member of Congress from that vicinity, and everybody else who was supposed to have any influence or intimacy with the master workmen. It brought down hundreds of people who were desiring to get employment. I never turned a man away from my door, and they came very, very often. I expect to go on with it just so far as the government necessities require it. How far they are required it is not for me to say, the people at the yard are responsiable for that. There was a large force required last summer, and sometimes I thought they did not take in enough. When I asked for people to be taken on, I thought they did not evince interest enough to give these poor people employment, and I protested earnestly to them many times they did not feel the deep interest they ought to for those who were suffering. By Mr. Ready: Question. It seems to me that the last question has not been fully answered. I should like to have a categorical answer to the question whether the number of men in the navy yard was increased just before the last election. Answer. There were additions all along, up to the election, and after the election. It depended upon the peculiar employment there. After the oakum spinners were dismissed the caulkers would be employed. As soon as the necessity for them was removed they would be dismissed. They were going on employing and dismissing just as the public emergencies required it. I know that there were discharges made just before the election of workmen whom the department no longer required. I cannot answer this question squarely, because there are spar makers, sail makers, caulkers, riggers, ship smiths, ship carpenters, joiners, laborers, oakum spinners, and men of other occupations. When the caulkers were wanted they were taken in, and as soon as they were done with they were dismissed, because they could not be employed. That I know was done. So with the oakum spinners; they were taken in, the work was done, and they were dismissed. I do not know of any one being taken into the navy yard, especially at that time, excepting laboring men. They were needed for the purpose of discharging at that time a large quantity of lumber. I was informed by a naval officer, Captain Carr, that two weeks before the election there were fourteen vessels in the river opposite the navy yard discharging timber, and a large number of men were required to pile it away. As I had no control over the matter I cannot say exactly what time they were discharged. Whenever it was, I exceedingly regretted it. Question. Do you know of any person being employed there shortly 352 PHILADELPHIA NAVY YARD. before the last election in the expectation that it would influence their votes? Answer. No, sir. Question. What part did you take in the controversy between Norris, and Reaney, Neafie & Co? Which side did you take? Answer. None whatever. Question. WVere you here at Washington with regard to that matter? Answer. I was here in November, when General Norris came to me and told me that he was in some trepidation with regard to the situation of his contract or proposal to construct machinery for sloop No. 2, now being constructed at Philadelphia. Question. Did you go to the department with him? Answer. I did, and asked that he might have a fair consideration; that he was entitled to it. The Secretary told me that he should have it. Question. Were any political considerations suggested to the Secretary? Answer. I said he was a democrat, I believe. I said he was entited to consideration upon that score, but I urged that he was a man of science, that he had an excellent reputation as a scientific man, and I thought he ought to have fair play. I spoke to the Secretary very candidly about it. Question. Did other members of Congress take the opposite side? Answer. I do not know. I merely happened to be here, and General Norris came to me, and said he was fearful he should not have fair play. I told him I would see Secretary Toucey about it. I thought his fears were unfounded. I told him that I thought Mr. Toucey would resist determinedly all interference with a fair consideration of the bids, and I had confidence he would do so. General Norris expressed his fear of improper influences controlling an engineer officer attached to the department. I assured him, that in my judgment, Governor Toucey would not countenance such a wicked, dishonest, and mischievous interference. The Secretary of the Navy assured me he would permit no injustice to be done to General Norris, but would instantly dismiss any officer who was guilty of it. I was satisfied it would be so, and gave General Norris the assurance of my conviction that Governor Toucey would insist upon full justice being awarded to him by officers under his control. My agency and interference ended here. THOMAS B. FLORENCE. APPENDIX. 353 AP P E ND IX. DOCUMENTS RECEIVED FROM: THE NAVY DEPARTMENT. BUREAU OF YARDS AND DOCKs, January 31, 1859. Srt: I have the honor to reply to the 10th, 11th, and 12th interrogatories of the committee of investigation, of which Hon. John Sherman is chairman. The enclosed paper, marked A, exhibits "the number and pay of master workmen prior to and since the 4th March, 1857, at the New York navy yard,"' and is a reply to this part of interrogatory No. 10. In regard to the " mode of appointment, " I state that master workmen are appointed by the Bureau of Yards and Docks, by order of the Secretary of the Navy. The "reasons for changes' were presumed to be because the appointing power thought such changes necessary to promote the general interests of the public service. In reference to interrogatory No. 11, I state that the records of this bureau do not show "' any correspondence has taken place with members of Congress since March 4, 1857, relating to the change or appointment of master workmen.J' The paper herewith transmitted, marked B, exhibits the "newoffices or employments, with the pay of each, since March 4, 185T7,' and is the answer to the 12th interrogatory'. I have the honor to be, sir, yours, respectfully, &c., JOS. SMITEH. ion1. ISAAC TOUCEY, Secretcary of the Navy. BUREAU OF YARDS AND DOCIKs, Febrtlary 1, 1859. SIR: The bureau herewith replies to the 8th interrogatory of the investigating committee, of which Hon. John Sherman is chairman. "The number of men employed in the Brooklyn navy yard on the 1st and 15th days of the months of October, November, December,. 1858, and January, 1859," is as follows: Me,. From the 1st to 15th October, 1858.................. 2,365 From the 16th to 31st October, 1858......... 2,414 From the 1st to 15th November, 1858.................... 2,488 Fromn the 16th to 30th November, 1858............. 21819 From the 1st to 31st December, 1858........ 2,188 From the 1st to 7th January, 1859, as per last returns from the yard................. t........ 1 930 23 D 354 APPENDIX. The semi-monthly rolls have not yet been received for the month of December, 1858, and hence the number of men for the whole month is furnished. The causes of the'increase and diminution" were stated in my letter of the 27th ultimo. I have the honor to be, very respectfully, JOS. SMITH. lion. ISAAC TOUCEY, Secretary of thle Ncvy. PAPER A.R-EPLY TO TENTH INTERROGATORY. List of master workmen at the New York navy yard. Prior to March 4, 1857. Since March 4, 1857. Occupation. 5 Names. $ Me J ames R. McGee When$00 appointed, &c.y 10 in.. Merifield 3 50 Win. Merificld 3 50 Appointed April 29 Mlaster sbparmaker-. Francis Phillips cGee 3 50 -Francis Phillips $43 50 Appointed April 2, 1853. Master cooper! —------ Theop. Hardenbrook- 3 50 -------------- Theop. Hardenbiook- 3 50 Appointed _, 819. Master ship joiner —- Hiram Funk —----- 3 50 May 18,1857 Hiram Funk —------ 3 50 Discharged May 19, 1857. Do. —--------------------------------------— do —-— R Romeo Friganzer —.. 3 50 Appointed May 21, 1857. Master block maker —- Peter McManus —---- 3 50 Feb. 22, 1858 Peter McManus ----- 3 50 Discharged March 3, 1858. Do -------—. —---------------- --------------— do —---- John Fox —--------- 3 50 Appointed March 4, 1858. Master calker —------ Henry S. Strickland — 3 50 July 2,1857 Henry S. Strickland — 3 50 Discharged July 3, 1857. Do —-------------------------- -do —-—. David Hogg —----- - 3 50 Appdinted July 3, 1857. Master painter —----- Lewis W. Berry ---- 3 50 Mar. 18, 1858 Lewis W. Berry —- 3 50 Discharged March 22, 1858. Do —----------------------—. — -------------— do —---- William Turner —-- 3 50 Appointed March 22, 1858. Master boat builder --- John Doherty —--- 3 50 May 30, 1857 John Doherty —----- 3 50 Discharged June 1, 1857. Do —------------------------------------------— do —--— James Kerrigan- 3 50 Appointed June 2, 1857; superseded December 11, 1857 Do. —------- -I —----------—.- --------- Oct. 26 and Alfred P. Clark —---- 3 50 Appointed December 12, 1857; superDec. 10, 1857 seded December 21, 1857. Do - - - - - ------- Dec. 19,1857 James Kerrigan. 3 50 Appointed December 21, 1857. Master plumber —---- Stephen R. Danegar — 3 50 May 30, 1857 Stephen R. Danegar — 3 50 Dicharged June 1, 1857. Do ------------------------------------—. ---— do —-—. A. J McCarty ------ 3 50 Appointed June 2, 1857. Master laborer- W-.-~. V.. H Sharp ----- 3 00- do --- mH r300 Discharged June 1, 1857. Do ----------------- ----------- --------------— do -. gHugh McLaughlin — 3 00 Appointed June 2,1557. PAPER A-Continued. X Prior to Ma~rch 4, 1857. Since March 4, 1857. Occupation. C Nmes.. Names W en appointed, &c. Master dock builder - -- Wilim oran.-. $3 0 ct 2,107WWilliam Morgan. $3 00 Oct. 26, 1857 William Morgan $3 00 Discharged November 4, 1857. Do ------------------—. —--------- ---------- ---— do -—. — Nicholas Murphy - -. 3 00 Appointed November 5, 1857. Timber inspector — -Joseph Simmons ----- 01, 050 00 June 25,185'7 Joseph Simmons. - - - 1, 050 00 1ischarged June 29, 1857. Do -----------------—. —----— ~ —---------—. —---— do ------ John Orr ---------- 1,050 00 Appointed June 29, 1857. M Master machinist ----------------------------------- July 2, 1858 Thomas K Faron —- 3 50 Appointed July 8, 1858. Z Do --------- ------------------------------ Sept. 30, 1858 ThomasK.Faron.,500 00 Pay rais-ed October 1,1858. Master house carpenter —---------------------------- May 21, 1857 Lawrence Cohane —- 3 50 Appointed May 26, 1857. Do —------------------------------ --- May 21, 1858 John Ross —------- 3 50 Appointed June 10, 1858. Master mason —---------------------------------- Oct. 26, 1857 Elias J. Sturgis —---- 3 50 Appointed November 5, 1857. Master stone cutter ------------ ---------- ---------- June 25 and Daniel Kennedy --- 3 50 Appointed June 29, 1857; discharged 30, 1857. November 24, 1857. Do —- -- -- -- -- -- -- -- Jan. 14,1858 Daniel Kennedy- 3 50 Appointed January 18, 1858; discharged December 16, 1858. Master laborer in con- ----------------------------- Aug. 11,1857 Alexander Ward 3 00 Appointed August 21, 1857; resigned structing engineer's June, 1858. department. Master laborer in con- ------------------------------ May 31, 1858 John Vandervort ---- 3 00 Appointed June 10, 1858. structing engineer's department. Master boilermaker —- ------------------ --------------— do —---- John Maxon- 3 50 Appointed June 10, 1858. Master moulder —-------------------------------- Oct. 19, 1,58 David Heustis —----- 3 50 Appointed October 26, 1858. Per annum. PAPER B.-REPLY TO TWELFTH INTERROGATORY. Report showing the number and names of new oices or employments made in the navy yard, New York, since March 4, 1857. Name of office. Daily pay. When made. By what authority. Master house carpenter —. —---- $3 50 May 26, 1857. —-- Letter of Bureau May 21, 1857. This office was in existence until the 31st December, 1855, when the occupant of it was discharged; the duty in the mean time having been performed by a foreman, at $3 per day. Mlaster stone cutter ------------- 3 50 June 29, 1857..... Letter of Bureau June 25, 1857. A new office. The stone-cutting work was, until the 31st December, 1855, done under the supervision of the master mason, and from that time to the 29th June, 1857, under the foreman of masons. Master laborer in the civil engi- 3 00 Aug. 12, 1857..... Letter of Bureau August 11, 1857. This office is a new one, the duty having neer' s department. previously been performed by a foreman, selected by the constructing engineer. Master mason ------------------ 3 50 Nov. 5, 1857. —-- Letter of Bureau October 26, 1857. This office was in existence until 31st December, 1855. From that date till the 5th November, 1857, the duty was Z performed by a foreman, at $3 per day. Foreman of saw-pits —---------- 2 50 June 10, 1858. —- Letter of Bureau May 31, 1858. This office was recreated, it having previously Z been abolished, and the occupant discharged by order of the Bureau of October 2,1856. Master boiler maker —--------- 3 50 June 10, 1858 ---- Letter of Bureau May 31, 1858. A new office; the duty having been performed by a workman previous to that date, at $2 50 per day. -Master machinist —------------- 3 50 July 8, 1858. —-- Letter of Bureau July 2, 1858. Previous to July, 1858, the duty was performed by a foreman, at $3 50 per day. Master moulder —-------------- 3 50 Oct. 26, 1858. —-. Letter of Bureau October 19, 1858. Previous to October, 1858, the duty was performed by the present incumbent under the title of foreman of foundry, at $3 50 per day. Superintendent of foundation for W. C. Jones, October, 1858 ---- Letter of Bureau October 18, 1858. A new office. marine barracks. 2 50 Foreman of oakum factory --—.. 2 50 April 2, 1857 —--- Letter of Bureau March 14, 1857. George Stratford was appointed foreman, to superintend the making of oakum, on recommendation of Chief Engineer Gay. 0 Until October 1, 1858, and then $1,500 per annum. 358 APPENDIX. BUREAU OF YARDS AND DOCKS, February 3, 1859. Sip: I have the honor to reply to the second interrogatory of the second series of the investigating committee, of which lon. John Sherman is chairman, so far as it applies to this bureau. In my opinion, portions of the work at navy yards might be advantageously done by contract; such as piling, grading, cutting stone, gravel filling, excavation, and such like work. There should be no law, however. making it obligatory to contract for these objects, but it should be left to the discretion of the Navy Department. The erection of large and substantial buildings, such as are required for stores and workshops, and the work done on docks, quay walls, -and basins, although it may be at a less cost by contract, yet it would not be of that substantial and reliable character as if performed by days' work, under the immediate supervision and direction of the officers of the yard. If it shall become the policy of the government that the ontract system shall operate largely in the navy yards, there wil, of necessity, arise clashings of jurisdiction as well as discipline, when the workmen of the contractors and the employes of the yard shall be brought together on the various works of the yard. One set of men would be under orders from contractors, and the other under the control of the authorities of the yard, and difficulties would necessarily arise which might tend to impair discipline, and, perhaps, otherwise embarrass the general operations of the yard. I have the honor to be, very respectfully, your obedient servant, JOSEPH SMITH. Hon. ISAAC TOUCEY, Secretary of the Navy. Answer to the seventh clause of the resolution of the special committee, &c., of the House of Representatives, Hon. John Sherman, chairman. NAVY DEPARTMENT, October 25, 1858. SIR: Upon the reporting of your successor, Commodore S. L. Breese, you will regard yourself as detached from your present command, and you will report, by letter, to the Secretary of the Treasury for temporary duty during the absence of Commodore Shubrick, as a member of the Light-house Board. I am, respectfully, your obedient servant, ISAAC TOUCEY. Commodore L. KEARNY, United States Navy, New York. APPENDIX. 359 NAVY YARD, New York, October 30, 1858. SIR: Commodore Breese reported at this yard yesterday, the 29th instant, and will assume his duties on Monday, the 1st November proximo. I have this day reported, by letter, for duty under the Treasury Department. I am, sir, very respectfully, your obedient servant, L. KEARNY, Commandant. Hon. ISAAc ToUCEY, Secretary of the Navy, Washington. NAVY DEPARTMENT, November 22, 1858. SIR: I have received your letter of the 15th instant, in which you say that it is represented to you that the masters in the Brooklyn navy yard, in refusing employment to poor democrats residing in your district, act under the express or implied sanction of this department. This representation is altogether mistaken, and without the slightest foundation. I know of no reason why the democrats of your district should be proscribed at the Brooklyn navy yard, and I have received no information that the masters, who, by the regulations of the department, have the selection of the workmen, have taken any such course. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. HoRACE F. CLARK, New York. 360 APPENDIX. Ansiwer to the 9th clause of the resolution of special committee, Hon. Mr. Sherman, chairman. BUREAU OF YARDS AND DOCKS, January 26, 1859. SIR: I have the honor to acknowledge the reference of the letter of Hon. John Sherman, chairman of the naval investigating cominittee, dated the 25th instant, and, in reply to the 9th clause of the committee's resolutions, herewith append a synopsis of the class and pay of the officers, foremen, master workmen, and laborers of the navy yard, Brooklyn," as taken from the pay-roll for December last, viz: Carpenters, ship —..1 —- - I master ------.- --- - $4 00 I draughtsman —------------ 3 00 I assistant inspector ---------- _ 2 50 4 quartermen - - 3 12 161 journeymen ------------------ 2 50 16 journeymen ------- — 2 25 2 journeyman —-------------- 2 00 4 apprentices ---------------- 1 12 Gun-carriage maker ---- -1 —--- I foreman -------------------- 3 12 1 gun-carriage maker —---------- 2 75 8 gun-carriage makers ------------ 2 50 1 gun-carriage maker —-------- 2 25 4 gun-carriage makers —---------- 1 75 2 laborers. —---------- - 1 12 Borers —------— 1 —------ I borer —----------------------- 2 50 50 borers ——,. —------------ - 2 00 3 borers —----------------- 1 75 2 borers —-------------------- 1 50 2 laborers. —-- --- -------- 1 38 35 laborers --------------------- 1 25 6 laborers —------------------- 1 12 1 laborer ----------— 1 00 Joiner ----- ----- - -— 1 —---- - I superintendent —. —- ---------- 3 00 7 joiners —----- -- ---- - 2 25 2 joiners ----------------- ---- 2 00 Sawyer.. —-.- -1 —----—. —--- I foreman --------------------- 2 50 1 sawyer ----------------------- 2 25 27 sawyers —--------- --.....- 2 00 2 sawyers- -1 50 18 laborers -------------------- 1 25 1 laborer —---—.. ---- -—.- 1 37 1 laborer —----------—.. —--- 1 12 APPENDIX. 361 Answer to the 9th clause of the resolution-Continued. Blacksmith ------------------ I1 master ----------- -— $3 50 1 foreman -- 3 12 20 smiths ----------------------- 2 50 16 smiths —- 2 25 17 smiths —---------- 2 00 5 smiths ----------------------- 1 75 43 helpers -— 1 38 8 helpers ---------------------- 1 25 1 apprentice -------------------- 1 38 1 apprentice --- -62 5 laborers ------------------ -. 1 12 Joiner —-- ---------------- I master -----------------— 3 50 2 foremen -------------------—. 2 81 86 joiners.... —----- ------- 2 25 9 joiners —---------- --- 2 00 1 joiner —---------------------- 1 75 1 apprentice ---- ---- ------ 1 24 1 appientice --- -78 4 laborers -----------------— 1 12 1 laborer -— 1 00 1 minor - --------------- - 78 Calker.. Imaster -— 3 50 1 foreman —- 3 12 59 calkers —--------------------- 2 50 2 calkers. —-—.2 50 1 calker —---------------------- 2 25 2calkers —--------------------- 2 00 1 calker —- 1 50 1 apprentice -------------------- 1 12 Calkers, &c ---------------------- 1 scraper- ----------------— 2 00 1 spinner —- 1 50 10 spinners --------------- 1 25 5 spinners -— 1 12 2 oakum ----------- 1 00 1 boy —----------------------- 25 1 master's attendant -- 2 00 1 laborer -— 1 50 1 laborer -— 1 12 5 master's laborers --------—. —-. 1 50 2 gunner's laborers. ------- -— 1 00 Storekeepers -1 foreman --------------------- 3 00 4 laborers -— 1 50 2 laborers ------------------ 1 25 12 laborers ----------------------- 1 12 Yard labor ---------------------- 1 master ------------------- - 3 00 2 foremen —- 1 56 1 foreman --------------------- 1 56 1 foreman ---------------------- 1 25 10 laborers. --------------- -- 1 25 70 laborers -- 1 12 1 laborer -----—.... ------- 1 00 Master's labor- 1 foreman --- 1 56 18 laborers- -------- ---- 1 25 1 foreman ---------- 1 40 20 laborers - --------------------- 1 12 1 laborer -------------- 1 00 Yard labor —----------- --- 5 foremen -— 1 40 180 laborers —-------------------- 1 12 3 laborers --- 1 25 1 laborer -. —------- ---- - 1 12 1 laborer —--- ------------ 1 25 5 laborers- ------------------ 1 12 3 32 APPENDIX. Answer to the 9th clause of the resolution-Continued. Yard labor-Continued —------ I laborer —------- ---- $1 25 2 laborers --------—. ----------- 1 25 8 laborers —-----—.... —-. 1 12 6 laborers. —-- - -............ 1 25 27 laborers - ---- 1 12 Sail maker. ----- 2 foremen --—...... — - 2 81 64 sail makers- -- 2 25 2 sail makers -- -2 00 1 sail maker ----- 75 1 apprentice - ----- -- - 1 24 1 apprentice.. —-—. —-. ——. — 56 1 laborer....... — - 1 12 Mast maker- 1 —--— I master -.- ------- --—....... 3 50 1 foreman ---- 3 12 21 mast makers ----— 2 50 1 apprentice -- 1 12 2 laborers -- -- 1 12 I laborer -— 1 00 Riggers - -------- ------ I1 foreman —- 2 50 29 riggers ---------------- -2 00 2 riggers.. —--—.. ——.. — 1 50 2 laborers -— 1 12 Painters -------—. —--------- 1 master ------ ------- 3 50 2 foremen... —------ ------- 2 50 41 painters --------------- -2 00 6 painters ---- --------— 1 75 1 apprentice --— 90 1 laborer —-- -------- 1 12 Boat builders --------- 1 master - --------- 3 50 1 foreman -— 2 50 21 boat builders -....... -. —- 2 00 1 apprentice ---—.. —- -- 50 2 laborers ------------ ---- 1 12 Coopers — 1 master --------------... — -. 3 50 1 foreman —------------------- 2 50 16 coopers ------------------- 2 00 2 laborers -- ------- - 1 12 Plumber ------ ---- --- 1 master ----------------- - 3 f."0 1 foreman -- -2 81 11 plumbers ---- ----- -2 —- 25 1 plumber --- 1 50 17 coppersmiths ------------------ 2 25 2 tinners —--------------- - 2 25 6 tinners —--- ------------ - 2 00 I tinner —- 1 75 1 apprentice ------------------— 1 46 2 laborers —----------- - 1 12 Block maker -------------------- 1 master ------------------- - 3 50 1 foreman ---------------- - 2 81 25 makers ----------------------- 2 25 I apprentice --- 79 1 laborer ----------------------- 1 25 2 laborers. —-------------- - 1 12 Clothing ---------— 1 —---------- superintendent —- 3 00 3 assistants —-------------- 2 00 3 assistants 1 50 10 laborers ----------------— 1 25 1 boy ---------- ------------- 1 25 1 boy —-- ---------------------- 75 Machinist- ---------------------- I1 machinist —------------------- 3 00 1 rigger — 2 00 1 armorer -------------------- 2 50 1 helper -------------- 1 75 2 helpers ------ --- 1 50 APPENDIX. 363 Answer to the 9th clause of the resolution-Continued. Gunner's crew —- ------- I leather sewer --------- $2 50 4 leather sewers ----- — 2 00 2 riggers -------------------—. 1 50 1 laborer ------ —.- - 1 40 1 laborer ---------------------- 1 25 20 laborers —----------- -------- 112 1 hose maker ---------- 2 00 Engineer, steam- _ —------ --- 1 engineer —-------------------- 3 50 1 draughtsman ----------------- 2 50 1 eigineer. —. ----—. -- 2 75 2 engineers ----- —. —--- - 2 00 2 engineers —--- -- -—.- 1 75 1 fireman ------ ---- - 1 38 5 firemen ----------- - 1 25 Machinist- -— 1 master, (per annum) -- --— 1,500 00 2 foremen ------------—.. --- 3 00 6 machinists ---- ---- - 2 50 6 -— do —---------- 2 25 31 -— do ------—. —----------- 2 00 42 -— do —----------------—..-. 1 75 9 —-- do —-----—... —----------- 1 50 21 -..-do ----------- ------------ 1 25 2 apprentices ----------- 1 12 1..do.. —----- - -- -- --- 88 Boiler maker 1 master —-------------------- 3 50 1 maker of boilers —------ 2 50 l -— do --------------- ------ 2 25 11 -— do ---------------------- 2 00 3 — do. —.-. —------- -------- 1 75 4 —— do ---------------------- 1 50 Pattern maker -------- - I foreman --------------------- 3 00 1 pattern maker —------ - 2 50 4 —— do —-------------------- 2 25 4.-.do —----- ------ 2 00 1 --— do ---------- ---------— 1 25 Oakum maker-, --- I foreman ------ - —. -3 00 1 maker --------------- - 1 25 l —— do -- ---- ----- -- --- 1 12 3 boys.. —-. - - --- 75 Founder- ----- --- --- I master -------—. —.. —-----. 3 50 1 teamster -- - ---- - 2 50 l- — do. —.. —-----------.. —-- 2 25 1 —.do —---- ----------- 2 12 5 —— do.. —-----.. - -- 2 00 3 —- do --------------------- 1 75 1 -— do -------—. —- --------- 1 62 3 helpers ----- ------ - 1 25 9 —— do --------- -- - 1 12 Engineers' laborers - ------ - 6 laborers ------- --- - 1 25 1 --— do ---------- - ----- ----- 1 12 4 boys —--------------------—. 75 5 laborers ------------------- 1 25 Civil engineer. - --.1 assistant engineer, (per annum).. 1,500 00 1 superintendent of piling: —----- 5 0 1 superintendent of foundation --- 2 50 1 engineer ----- ----— 2 50 1 -— do —--------------------- 2 00 2 firemen. —---- ---- - 1 50 4 blacksmiths ----- ----- 2 25 1 rigger ----- -------- - 2 00 1 chief diver ----- --- - 2 50 I diver. —. - 2 25 36 APPENDIX. Answer to the 9th clause of the resolution-Continued. Civil engineer-Continued --- -- _ I diver -- -------- -^ - $2 00 1 diver —----- ------ 1 75 1 diver. —--------------... —-- 1 50 6 laborers --- -------- 1 50 Masons —-- ---- ------- 1 master ------—.. —-—.....-. 3 50 3 foremen --------------------- 2 50 46 masons —-------------- 2 00 2 -— do —--------------------- 1 75 1 apprentice ----------------—. 50 5 drillers ------------- -1 50 2 pavers-.. - ----------------- 2 00 1 paver ---------------------—. 1 75 15 slaters - ----------------— 2 00 Stone cutters —---------------- master ------------—. —--—. 3 50 1 foreman. —---------------—. 2 81 27 cutters ----- ----- - 2 25 1 cutter ------------- ----—.- 1 75 1 laborer —---------- 1 25 1 -— do -—. —----- ---—. —--- 1 12 Dock master ---------- 1 dock master ----------------- 2 75 1 laborer —---- ----- - 1 50 House carpenter-.-1 —------. —-- I master ------------—, -------- 3 50 2 foremen ----------- 2 50 44 carpenters —---------------—. 2 00 Superintendent of filling grounds- I superintendent ---- ---- 2 50 6 assistants -----------------—, 2 00 Dock builder. ---- ---- -- 1 master ---------—. —--- 3 00 1 foreman -—.- -------------—. 2 50 1 builder —---------- 2 50 23 — do —---------------------- 2 00 4...do —----- - ---- 1 75 Laborers of the civil engineer....- 1 master -----—. --- -. 3 50 2 foremen ------ ---- - 1 56 110 laborers ----—..-... —---—.- 1 25 5 -— do —------------------- - 1 12 Laborers --------- --- 2 foremen —-----------------—. 1 56 42 laborers- 1 25 1 - -.do -—.-. —--—. —------. 1 00 Laborers 1 foreman ---------------------- 2 00 1 -— do -.. —---------------—. 1 40 47 laborers —----- ----- - 1 12 Laborers —---—. 2 foremen ---—. ---- - 1 40 41 laborers - ---- ---- - 1 12 Miscellaneous ---- 9 horses and carts —- ---- 2 50 8 writers. —------- —. —---—.. 2 50 5 — do ------------ - 2 00 1 —— do —------------------—. 1 50 1- - do —----------- 1 25 Teamsters —--- -- ------ foreman --------- 2 50 5 teamsters ---------- 1 50 15 -— do -------—. —., —-—..- - 1 26 Watch ----- ----- -- 3 captains, - ----------. 1 50 18 men —------ -- -- 1 25 APPENDIX. 365 The officers, and pay of each, are under two heads, naval and civil, and are as follows, viz: Pay. NAVAL. I captain - --- - -- $3,500 00 I commander ---- ------------------ ------ 2,100 00 2 lieutenants, each —---------------------- ---- --------------- 1,500 00 1 purser - ------------------ ------- -- 2,500 00 1 surgeon —---------------------------------. —------------ 1,800 00 I master -------- ----------------- - 1,000 00 1 chaplain -----------------------------------.. —------. 1,500 00 I boatswain. —---------------- ------ 800 00 2 gunners, each —----------------------- -------------------- 800 00 I carpenter ------- ------ ---------- 800 00 I sail maker-.. —------ ------------...- ---------. —-------- 800 00 I assistant to purser ------------------------—. —---- -----—. 500 00 1 steward, assistant to purser —------------------- -- -- 480 00 I steward, assistant to surgeon ---------------- -480 00 CIVIL. 1 naval constructor. -- -----------------—.. —- --------------- 2,600 00 I naval storekeeper ------------ ------- --- 1,700 00 I civil engineer ---- -- 2,500 00 1 inspector and measurer of timber -------------- - 1,050 00 I clerk of yard.. —-—. -----—. —------------- ----— r —-. 1,200 00 1st clerk to commandant ------------------— 1,200 00 2d clerk to commandant ------------------------------------------- 960 00 ist clerk to storekeeper ------ -—. ------ -- ------ 1, 200 00 2d clerk to storekeeper. — ----------------.. 90(i 00 I clerk to constructor — -- - - ---------------- - -- 800 00 1 draughtsman -------------------------------- 900 00 1 clerk to inspector of provisions and clothing - ----------- 750 00 I porter ----------- ------- -- 456 00 In reference to the "appointment, powers, and duties" of those connected with the navy yard, they are defined under two heads, thus: NAVAL. The commission and warrant officers are appointed by the President, and. the clerks and stewards under this head by the purser and surgeon. The commandant commands the yard, and all vessels returning from or equipping for sea. HIe colmmands the officers, civil and military, attached to the yard. All orders go through him to others attached to the station, and all official communications from officers and others on duty pass through his hands for inspection and signature, to be forwarded to the department. The commander of the yard is the executive officer, and attends to fitting of ships, the police of the yard, and executes the orders of the commandant b All others perform duty under the orders of their sup eriors. 366 APPENDIX. CIVIL. The naval constructor is appointed by the Secretary of' the Navy. He has charge, and directs all persons employed on ships, spars, and boats, except the engines, which are superintended by engineers of the navy. The civil engineer and his assistant are appointed by the Secretary of the Navy. He has the superintendence of all buildings, wharves, and docks. The draughtsman is appointed by the civil engineer, and acts under his orders. The inspector and measurer of timber is appointed by the Secretary of the Navy, and inspects all timber received at the yard. The clerk of the yard is appointed by the Secretary of the Navy. He musters all employes on per diem pay; makes out the rolls on which payment of wages is disbursed; and turns them over to the purser, who makes the payment. The other several clerks are appointed by the heads of their respective departments. The naval storekeeper receives and issues all stores, except those under the head of ordnance, and provisions and clothing, which are separate departments, under navy officers. Master workmen are appointed by the Secretary of the Navy. They have the power to appoint or select the men who work under them; but in all cases such selection must be approved by the head of the department over them, and also by the commandant. The duties of the master workmen are to execute the work assigned to them by their superiors. The term "quarterman"' applies to those who work on vessels, and "foreman" on yard improvements. They are appointed by the respective master workmen, and their duties are to superintend and lay out work for gangs of men under them. Apprentices are taken, under rules prescribed by the Navy Department, in the different branches of work. The bureau will reply to the 10th resolution as soon as practicable, I have the honor to be, very respectfully, your obedient servant, JOS. SMITH. HIon. ISAAC TOUCEY, Secr-etary of the cavy. APPENDIX. 367 WASHINGTON, D. C., l4March 16, 1857. SIR: The undersigned democratic members of Con gress from New York recommend the appointment of Alexander Ward as master laborer or inspector of timber at the Brooklyn navy yard. Mr. Ward is a gentleman of unexceptionable character, and has rendered most efficient services to the democratic party. He is well qualified for the situation, and his appointment will be gratefully appreciated by the democracy of New York. HORACE F. CLARK. JOHN A. SEARING. ELIJAH WARD. JOHN KELLY. JOHN B. HASKINS. D. E. SICKLES. I sign for Mr. Ward, and for him only, for this place. But this is not to conflict with my application for any man in my own district. Mr. Ward is in Mr. Clark's district. JOHN COCHRANE, Sixth Congressional District. Hon. ISAAc TouCEY, Secretary of the Navy. NEW YORK, April 6, 1857. DEAR SIR: May I take this method of recalling your attention to the matter of the appointments to be made by you connected with our navy yard. I expressed to you in Washington the opinion that, if deemed proper by yourself, the places of masters in the several departments should be distributed with something like equality among the six city congressional districts and the two adjacent districts upon the Long Island shore. I made application for the appointment of Mr. Alexander Ward, of the eighth congressional district, (represented by myself,) to the place of master laborer or inspector of timber. I united with some of my colleagues in their recommendations of applicants from among their several constituencies to other masterships, but the appointment of Mr. Ward is the only one which I solicit on behalf of my constituency. May I again call your attention to this subject, and request that you will give my application your favorable consideration in case you can adopt the principle to which I have referred, and which appears to me to be equitable. The difficulty of obtaining a personal interview with you in Washington subsequently to the occasion when I called upon you at your 368 APPENDIX. residence in company with Hon. John Kelly, has induced me to address you by letter. I am, with much respect, your obedient servant, HORACE F. CLARK. Hon. ISAAC TOUcEY, Secretary of the Navy. BROOKLYN, March 24, 185T. SIR: Enclosed I forward three affidavits-two against Win. H. Sharp, master laborerin the yard, and one against Hiram Funk, master ship-joiner in the yard. I could send you fifty of a similar character, but it cannot be necessary to fill your office with such articles. The same charges exist against John Doherty, boat-builder, and Mir. Donigan, master plumber. When in Washington I left the name of Richard Coggins, for plumber, in place of Donigan. He wishes to decline in favor of Thomas Giddings, whose application I forward by this mail. I trust he may be appointed. Let me call your attention fo my remarks about Mr. Hardenbrock, master cooper. He is an old soldier, and an honest, faithful man; but I am informed that Mr. Kelly is pressing a Mr. Warren for this place. Warren is well off, independent of the place, but in addition, he is an unreliable man as a politician. He encouraged the opposition to my election. But this all Mr. Kelly's friends and favorites did. They desired to defeat the democratic candidate in this district in order to perpetuate Mr. Kelly's influence in the yard, and Mr. Kelly now tries to sustain them, knowing these facts. In short, there was a regular conspiracy to defeat me for that object, and every possible falsehood was resorted to at the time, and will be used now to sustain. these "' gentlemen" in their places, and to get more of a similar character in the yard. Yours, respectfully, GEO. TAYLOR. HON. ISAAC TOUCEY, Secretary of the Navy, Washington city. May I press these changes upon you, now that the New York appointments APPENDIX, 369 I respectfully ask permission to offer the following names for appointment to the positions herein designated. I believe that the public interests would be advanced by their appointment. With great respect, your obedient servant, GEO. TAYLOR. Hon. TSAAC TOUCEY, Secretary of the Navy, Washington city. For master laborer in the Brooklyn navy yard, Hugh McLaughlin, in place of Mr. H. Sharp. For master boat builder, James Kennigan, in place of John Doherty. For master ship carpenter, Romeo Frigtnza, in place of H. Funk. The public interests imperatively demand this change. Master house carpenter, Patrick O'Neil. This position Mr. O'Neil has occupied for sometime; but as it was made subject to the civil engineer, O'Neil was not ordered to work. The civil engineer has kept the department under the control of a foreman, to the great injury of Mr. O'Neil. This position should be made independent of the engineer. For master mason, Luke Rogers. For master plumber, Richard Coggins, in place of-. These persons are all practical mechanics, well informed, industrious, and sober; reliable democrats, and good citizens. GEO. TAYLOR. BROOKLYN, iMarch 27, 1857. SIR: Enclosed you will find further affidavits against Funk, Murphy & Doherty, in the yard. I trust that more will not be required; but any number can be forwarded. When the masters have done their duty, I believe it important to the public service to retain them. No good purpose can be effected by the removal of such men. This I believe to be the case with all the masters in the yard except Funk, Sharp, Doherty, Strickland and Donnigan. These I think should beremoved for causes partly shown. The other masters, James McGee, Joseph Simmons, Merrifield, Philip, Colonel Hardenbrock, Mr. Turner, Mr. Moore, Mr. McMannis, should be retained. The public interests, require it and there is no earthly objection against them. But some of the others should be removed at once. In Funk's department the government loss is very considerable every day. Some time since he had 120 men employed in his department at $2 to $2 25, per day. Mr. Friganza, who is perfectly competent to judge, and the foreman of the men, told me that he could select the proper men and do more work and do it better with 80 men, thus saving about $90- per day to the government. This is important in addition to getting clear of a worthless man who is wholly unfit for the place. Inquire, if you please of Commodore Smith; he will give particulars. I have omitted to press the appointment of John Coope for storekeeper in the yard, because I have been informed by Mr. Bayard who called with Senator Bayard on you, that you had decided. that matter 24 D 370'APPENDIX. in favor of Mr. Coope, and of course I did not desire to trouble you under such circumstances. MIr. Coope is sustained by three members of Congress and the entire official corps of the city of Brooklyn; and I sincerely trust that he will not be disappointed. Brooklyn, the third city in the Union, and which gave Buchanan over six thousand majority, has not yet received an appointment. All the important offices in the custom house were disposed of without reference to Brooklyn. I now ask in the name of the firmest and best democrats in the Union this petty appointment for a man pre-eminently qualified. And I protest in their name against the appointment of Mr. Herrick. He was opposed to Mar. Buchanan's administration and did nothing for his election, while Mr. Coope went to Cincinnati wholly to serve Mr. Buchanan. Mr. Herrick was indicted a few months since for taking a bribe while alderman. Such a man certainly cannot get a preference over a good man to take charge of everything in the largest navy yard in the Union. But independent of this; he was not the friend of Mr. Buchanan, while Mr. Coope was; and New York has received every thing worth a cent, and this petty office Brooklyn asks from yourself and the President. And I appeal to the President and yourself to do something to sustain us, who have had so much to. contend against, and who so gloriously triumphed over it all. In this, as in relation to Mr. Murphy in the yard, together with the masters, I have said sufficient if not too much, and I now throw myself and district upon the well known disposition of the President and yourself to do justice in all things. But let me add, that these appointments in the navy yard should be settled at an early day. Everything is now in confusion, and the public interests will necessarily suffer until order is restored. With the respect due, I am your obedient servant, GEORGE TAYLOR. Hon. ISAAC TOUCEY, Secretary of the Navy. NEW YORK, April 6, 1857. SIR: I had intended to see you personally before this time, but a return of my " National Hotel" trouble has confined me to the house for the last week. I am exceedingly anxions to have some action in reference to the engineer in the navy yard. After his return home from Washington, he dismissed the few Brooklyn men under his employ, and hundreds of these men are now begging for work in our streets while their familes are starving; but nothing can be done so long as that man is permitted to remain. Funk and Doherty pursue the same course. If I had not sent you sufficient evidence of their bad conduct already, I would trouble you with more; but I cannot think it necessary and do not wish to trouble you. Permit me one word in respect to the master laborer. I understand that Mir. Maclay is urging a man by the name of Hoggett, for that place, a man of notorious bad character. I say unhesitatingly that APPENDIX. 371 he would be a disgrace to the yard. See Mr. Hamilton's letter on file and the enclosed. Hoggett is one of the parties whom Mr. Murphy pays $1 75 per day without labor. See Mr. Cauk's affidavit on tile. May I urge you to make the appointment of Mr. Murphy's successor. The appointment of Mr Coope, storekeeper; Hugh McLaughlin, master laborer; James Kerrigan, master boat builder; and Romeo Friganza, master ship joiner, in place of Funk, at as early a day as possible. I assure you that party interests as well as the government interests demand this. If my health permits I will be in Washington the middle of this week, unless I am differently advised by you. I do most sincerely trust that Anson Herrick will not be appointed storekeeper. It is due to Brooklyn, and we trust that Mr. Buchanan will not overlook the third city in the Union, and one that gave him so large a majority, and especially to appoint a man of questionable character, like Mr. Herrick; nay, of well known bad character. I do not fear to say that he would be a disgrace to the administration. Seventeen thousand democrats in a vote of thirty thousand ask this office for Brooklyn, and they unite in asking it for Mr. Coope, than whom no man did more for Mr. Buchanan's nomination and election. Let me beg you to press this upon his Excellency's attention. Very sincerely, your obedient servant, GEO. TAYLOR. Hon. ISAAC TOUCEY, Secretary of the Navy, Washington. NEW YORK, April 17, 1857. SIR: I am informed that Hon. George A. Taylor, one of my colleagues, is now in Washington with a view of obtaining changes among the master workmen, &c., at the navy yard at Brooklyn, New York. I represent a congressional district composed of four wards in Brooklyn and two in this city, and the democrats in it have an equal interest in the proper administration of the employments in the navy yard as those represented by Mr. Taylor. As a matter of justice to all concerned, I respectfully request that you will not make any of the changes requested until I can have an opportunity of making a representation to you personally. This I hope to do early next week. I have ventured to make this request of you for the reason that Mr. Taylor claims that all the appointments in the navy yard should be made at his own recommendation. A different usage has prevailed for fourteen years. I represented the district for which I am now elected during the administrations of President Tyler and President Polk. Mr. Henshaw, when Secretary of the Navy, examined this whole matter, and decided that one-half of the appointments of the masters at the Brooklyn navy yard should be taken from my congressional district. Mr. Bancroft did the same thing. Nearly all of the men who have for many years been in the habit of seeking employment at the navy yard, among the different trades, reside in my dis 372 APPENDIX. trict; which lies opposite to Brooklyn, and is what is termed a river district. Experience has shown that they should be represented among the masters in order to be treated with fairness in respect to employment, &c. I make this statement not with a view to obtain appointments. I could wish indeed that no removals were made, but if the department decide otherwise, I then desire to be heard. Very respectfully, your obedient servant, W. B. MACLAY. Hon. ISAAC TOUCEY, Secretary of the Navy. BROOKLYN, April 28, 1857. SIR: The appointments most important to my district, and which you thought of making this week, are, first: Mr. Brown, of Norfolk, place of Murphy, engineer. Hugh McLaughlin, master laborer, place of William H. Sharp. Romeo Friganza, master ship-joiner, place of Hiram Funk. James Kerrigan, master boat builder, place of John Doherty. The removal of Murphy, Sharp, Funk, and Doherty, is requested by almost the unanimous voice of the district. It is a party necessity, besides, the interests of the government will be greatly benefited by it. The persons recommending the appointment of Mr. McLaughlin agree with me in the other matters. I take the liberty of sending this note to place the matter in a condensed form; and pardon me for begging you to give this your earliest attention. They will not delay the work in the yard, but will facilitate it. Friganza is at present the foreman. Yours, respectfully, GEO. TAYLOR. Hon. ISAAC TOUCEY, Secretary of the Navy. MAY 16, 1857. MY DEAR SIR: May I ask that you will retain in the navy yard Daniel Kennedy, foreman of the stone cutters. He is a very useful man in his ward, and desires to keep his place. We, who are interested in the matter, are very anxious he should be retained by you. Respectfully, W. FOWLER. MAY 16, 1857. Permit me to unite in the within. HORACE F. CLARK. NEW YORK, May 20, 1857. MY DEAR SIR: Mr. Daniel Kennedy, of the 20th ward, now holds the place of foreman of the stone cutters at the navy yard, and is APPENDIX. 373 desirous of being promoted to the post of master stone cutter. I have suggested to Mr. Kennedy that the appointments of the latter class belong to the Secretary of the Navy; but he is of opinion that, in this particular case, the patronage is in your power. Should such be the case, allow me to commend him to your favorable consideration, and to hope that you will aid his advancement. Mr. Kennedy is an active democrat, a most worthy man, well qualified for the position, and would give general satisfaction. Very truly, yours, ELIJAH WARD. C. K. GRAHAM, Esq. NEW YORK, May 27, 1857. DEAR SIR: Having heard that you contemplate making a change in the stone cutter department in the bureau over which you preside, at the navy yard, Brooklyn, and if such be the case, as under no other circumstances would I interfere, I take great pleasure in recommending Daniel Kennedy, who is now acting in the capacity of quarterman, for the position as master stone cutter. Mr. Kennedy is an excellent mechanic, and I venture to say equal to any in this city or State, at the business you employ men at. Having some knowledge of his qualifications, I speak and write as I know him to be. Respectfully yours, JOHN KELLY. CHARLES K. GRAIAM, United States Engineer, Navy Yard, Brooklyn. NEW YORK, June 4, 1857. SIR: I send herewith the application of Mr. Daniel Kennedy of my district, for the post of master stone cutter, and commend him to your favorable consideration. He is fully competent for the place, and his appointment would be highly acceptable. I hope this may be more successful than my late application for the appointment of George M. Munson as boatswain. Very respectfully, ELIJAH WARD. Hon ISAAC TOUCEY, Secretary of the Navy. NEW YORK, September 29, 1857. SIR: My absence from the city has prevented earlier attention being given to the charge made against Mr. Daniel Kennedy for refusing to dismiss a workman who was intoxicated while on duty. I have now the honor to enclose an affidavit of Mr. Kennedy, and a certificate of the clerk of the navy yard, which, I think, fully disprove the charge, 374 APPENDIX. and show that Mr. Kennedy did all that was in his power. The affidavit also discloses the fact that Mr. Graham still refuses to permit Mr. Kennedy to either appoint or dismiss men under his department, and treats as a nullity the order of the 8th of July last. Very respectfully, your obedient servant, ELIJAH WARD. Hon. ISAAC ToucEY, Secretary of the Navy. NEW YORK, September 29, 1857. SIR: I enclose to you a letter addressed to me by Mr. Daniel Kennedy2 master stone [cutter] of the Brooklyn navy yard, by which it appears that Mr. Graham, the engineer, still refuses a recognition of the order of the 8th July last. I also send a copy of the requisitions made by Mr. Kennedy, and refused by Mr. Graham. It would seem by these that the former is greatly embarrassed in the proper discharge of his duties. Mr. Kennedy, under my advice, has gone on quietly, in the hope that the engineer would at length yield obedience to your orders, but as several months have elapsed without a concurrence, I am compelled to appeal to you for relief. Mr. Alexander Ward, the master laborer, also informs me this morning, that Mr. Graham, in like manner interferes with hi: department. His case will be called to your attention by my colleague, Mr. Clark, in person. Allow me to hope that both will be disposed of together, and that instructions will be forwarded to Mr. Graham compelling a compliance with the order heretofore issued, a proper recognition of the rights of the master-men in his department. I have the honor to be, your obedient servant, ELIJAH WARD, Hon. ISAAC TOUCEY, Secretary of the Navy. [Private.] NEW YORK, January 17, 1859. DEAR SIR: YOU must excuse the many appeals I have made in behalf of Mr. Daniel Kennedy, master stone cutter in the navy yard, Brooklyn; but feeling that an injustice has been done him on the part of Mr. Graham makes me more than anxious for his restoration. You are aware that Mr. Kennedy was not the choice of Graham when he was appointed, he having recommended another person for that place. This circumstance of itself has made Graham feel towards him anything but pleasant. And he has taken all the advantages he could, from the mere fact of his position to domineer over him and to give him all the annoyances that he could. Kennedy is an excellent stone cutter, and strictly honest in all his dealings; and I do hope you will do him the justice to restore him. APPENDIX. 375 Graham is prejudiced against him without cause or justification, and I know that your high sense of honor will not permit a man to persecute a subordinate under him in any of your departments. I have no feeling of enmity against Mr. Graham, nor never had, but I have always felt that his appointment to the place was unwise, as he has [an] irrascible temper, and [is] incompetent for his position. Yours, truly, JOHN KELLY. Hon. ISAAC TOUCEY, Secretary of the Navy. P. S. Please answer. NEW YORK, June 29, 1857. DEAR SIR: At the request of Michael Reynolds, I enclose to you his application for the place of master machinist in the navy yard in the place of Mr. Kent, a republican. His recommendations are very good and in my judgment disclose a satisfactory competency on the part of the applicant. He is from my district, and therefore he applies to me to forward his papers. I do so with pleasure, and hope for his success. But I disclaim any force to this application injurious to the applications already made by me. There are several from my district already, viz: Mr. Hogg, for master caulker, Mr. Clark for the same place; Mr. Coleman, for surveyor, Mr. Donnelly, for ship carpenter, Mr. Christian, for the same place, Mr. Savan, for master boiler maker. There may be others I have not mentioned. But I have especially asked for Mr. Hogg, as caulker, in the place of Mr. Strickland, and upon this many of my colleagues have relied. I have ceased to feel any faith in this application, or any other that I have made, but cannot avoid doing my duty as a representative, leaving the ultimate responsibility to locate itself. I am, very respectfully, yours, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. WASHINGTON, May 10, 1858. DEAR SIR: I enclose to you a petition in behalf of Michael Reynolds, of my congressional district for the place of master machinist in the Brooklyn navy yard. It seems to be a supererogation to say that my district is but poorly recognised in the general distribution of patronage, and that I feel that I have a right to demand more favorable consideration. Very respectfully, yours, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. 376 APPENDIX. [Circular.] BUREAU OF YARDS AND DOCKS, July 8, 1857. COMMODORE: In the employment of the operatives at all the navy yards, the master workmen will be held to a strict accountability that none but competent and efficient men be employed, and that none be rated above their capability in their respective branches of labor, they will accordingly have the nominating of the men, subject to the approval of the chiefs of their respective departments and the sanction of the commandant of the yard. The chiefs of departments will direct, from time to time, the number of men to be taken on to the works, and will submit all cases of delinquency on the part of master workmen to the commandant to be reported to the department. You will see that this order be carried out at the yard under your command. Respectfully, your obedient servant, JOS. SMITH. Commodore J. T. Newton, Portsmouth, N. H.; Stringham, Boston; Kearney, New York; Stewart, Philadelphia; Lavallette, Washington; Captain Dornin, Norfolk; Stribling, Pensacola; Farragut, San Francisco.'Circular.] NAVY DEPARTMENT, December 14, 1858. The commandant of a navy yard, at any time when in his judgment the public interests require it, is authorized to direct the discharge of any of the men employed in the yard under his command. He shall report to the department when the services of any of the master workmen can be advantageously dispensed with; also, any just ground of complaint which may come to his knowledge against any of them. ISAAC TOUCEY, Secretary of the Navy. To the COMMANDANTS OF NAVY YARDS. BUREAU OF YARDS AND DOCKS, February 17, 1858. SIR: In reply to the call made by the bureau for information as regarded the employment of workmen at the New York navy yard, amongst the many papers forwarded in answer to that call is the enclosed from Engineer Graham to the commandant, dated the 8th APPENDIX. 377 instant, and forwarded by the latter to the bureau. I respectfully submit the same for such action, if any, in the premises as you may be pleased to direct. I have the honor to be, with great respect, your obedient servant, JOS. SMITH. Hon. ISAAc ToucEY, Secretary of the Navy. CONSTRUCTING ENGINEER'S OFFICE, February 8, 1858. SIR: The communication of the master dock builder in reply to yours of the 30th January, requires the following explanation: The subjoined persons, alluded to in it, acted as inspectors or clerks on the new purchase when it was being filled in. They were appointed by me, shortly after I assumed charge of the Constructing Department, in place of others who were appointed by my predecessor for the performance of the same duties, and who were discharged by me, either on account of their irregularity of habits or suspicion of their trustworthiness. As no appointments designated by the name of inspectors or clerks are allowed, the engineer is obliged when similar works are under progress to rate persons performing this duty as mechanics, and detail them for that purpose. It is a custom sanctioned by usage of the department, and not one of my own creation. As their duties are entirely of a trustworthy character, and the engineer is personally responsible to the bureau for their fidelity, it is but just that he should have the selection of these men, and that they should be under his exclusive control. The persons I appointed were mostly gentlemen with whom I had been acquainted for years, or their appointments were based upon such certificates of men of character as justified me in placing implicit confidence in them. I would recommend in future, when works requiring the supervision of inspectors are in operation, that the engineer should be permitted to appoint them under that title, instead of being obliged to perpetrate a. fraud' by rating them as mechanics when they perform no mechanical duty, and are not even paid out of the fund from which the masters who desire to claim them as their appointments derive their sustenance. Secondly. Mr. Murphy states in his answer to the communication that there are no persons employed " under his own immediate supervision who are not entirely competent." This, I am satisfied, is wholly untrue, as William Meehan, who is rated as a first class dock builder, and was appointed immediately after Mr. Murphy assumed charge at his solicitation, and under an assurance from him that all the persons recommended at that time (for there were four others with him) were able bodied and competent mechanics, has never performed one stroke of work, but has merely acted as Mr. Murphy's clerk and Mr. Kennedy's (master stonecutter) amanuensis. I also desire to call your attention to the utter inefficiency of the dock builders' force, which has arisen in this way: on the 1st of 378 APPENDIX. December last, when it was necessary to reduce it, I desired Mr. Murphy to divide his gang into two parts, one to work from the 1st to the 15th, the other from the 15th to the 1st; he did so, and selected all his own friends to work from the 1st to the 15th. This plan did not meet your approval, and was abandoned; consequently, those who were to have been relieved, if it had gone into effect, were continued on. About the 23d of December an order was issued by you, directing the dock builders' force to be decreased, and Mr. Hastings, who was acting during my absence in Washington, was authorized to carry the order into effect. He accordingly consulted with the master, and the result was the recommendation for the dismissal of six men. On the following day Mr. Murphy recommended the reappointment of James Faye, one of the dismissed, on the ground that he had been dismissed through inadvertence. The recommendation was subscribed by Mr. Hastings and approved by you. On the 26th I returned to my duties, and was informed by one of my writers that six dock builders had been discharged during my absence, and that subsequently one of them had been restored. I sent for the list, and, much to my surprise, found that the five men dismissed were among the most efficient in the department, and that the sixth man, James Faye, who had been reinstated, was the most worthless man in the force and, I have since ascertained, so notorious throughout the yard for laziness as to have acquired the soubriquet of the "lime-kiln man." I therefore directed that he should be suspended. I distinctly charge that the act which caused the dismissal of these five men was one of undisguised political hostility; three of them were from Mr. Sickles' district, and all were suspected of having voted for Mr. Tieman as mayor. These facts, I have no doubt, were entirely unknown to Mr. Hastings. At the present time, besides the foreman, I do not believe that one-half of the force are either able bodied men or efficient mechanics; the others are attaches of the master in his former position as foreman of carpenters, and were employed only because they were friends of the member of Congress, who obtained this present appointment for him. In conclusion, I think that Mr. Murphy's lack of energy, garrulous, inquisitive and proscriptive nature entirely unfit him for his present position, and I therefore request that an early investigation be made into the affairs of his department. Very respectfully, your obedient servant, CHARLES K. GRAHAM, Constructing Engineer. Captain THOMAS R. ROOTES, Commandant pro tern. NEW YORK, October 9, 1858. DEAR SIR: Upon inquiring I find that a number more men can be usefully employed in the master stonecutter's department at the Brooklyn navy yard. Eighteen cargoes of stone have recently been APPENDIX. 379 received, amounting to about two thousand tons, which, with the amount before at the yard, makes the quantity on hand so large, that I am informed it would require the services of one hundred men for twelve months to work it fit for use. The present force of stonecutters is only thirty men, including the master foreman. The appropriation unexpended is adequate to justify an increase of the force, and I respectfully ask it. Should the employment of an additional number of men in the stonecutter's department be authorized, it would prove of most essential service to the democratic party in my district at the approaching election. I solely make the application for an increase of force to you, as my relations with the civil engineer of the yard are not of such a character as to induce me to ask him to unite in the request. Very respectfully, your obedient servant, ELIJAH WARD. Hon. ISAAc TOUCEY, Secretary of the Navy. NAVY DEPARTMENT, October 15, 1858. SIR: I have the honor to acknowledge the receipt of your letter of 9th instant, and to inform you in reply, that the matter to which it relates has been referred to the commandant of the New York navy yard, to take such action in the case as it may require. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. ELIJAH WARD, New York. NAVY YARD, NEW YORK, October 19, 1858. SIR: The department's letter of the 15th instant enclosing a copy of one from the Hon. Elijah Ward was received yesterday, the 18th instant, and the subject referred to the constructing engineer. I now have the honor to enclose Mr. Graham's reply. I am, sir, very respectfully, your obedient servant, L. KEARNY, Commandant. Hon. ISAAC TOUCEY, Secretary of the Navy, Washington. CONSTRUCTING ENGINEER'S OFFICE, Navy Yard, New York, October 19, 1858. SIR: In reply to your communication of October 18, enclosing a letter from General Ward, addressed to the Secretary of the Navy relative t tthe large quantities of granite which are being received at 380 APPENDIX. this yard, and the consequent necessity which exists for a large increase of the force of stonecutters, I submit the following report: The appropriation for quay wall available on the 1st of July last, was.................................... $82,000 00 Since that time there has been expended for labor................................................... $2,000 00 And for material ordered under last schedule and paid for out of this appropriation......... 2,000 00 The masons are now engaged in putting in a foundation for a large crane, which, owing to the difficulties encountered, will cost about 3,000 00 Steam pump authorized by bureau................ 1,000 00 Stone to be delivered, being the whole amount of contract............................................. 27,386 00 Piles on present schedule, all of which will be delivered........................................... 2,640 00 As a large quantity of excavation is necessary before piling, and as all the mud has to be taken over on the new purchase to be discharged, there will be required for dredging 10,000 00 Piling for foundation, masons, laborers, and diving bell laborers' wages engaged in laying quay wall....................................... 15,000 00 Wages to stone cutters to 1st July next; thirty stone cutters and laborers required to attend upon them at $2,100 00 per month........... 18,000 00 ---------- 81,026 00 Probable balance 1st July, 1859, excluding unexpected contingencies........................... 974 00 As at least two-thirds of the granite to be delivered under contract will require no other dressing than in the beds and joints, the present force will be equal to all which can be required of them. In fact I am of the opinion that the work will be insufficient for their constant employment, if they do their duty, (which is not the case now,) until the period I have mentioned. As the appropriation for the " launching ways" is rapidly diminishing, no stone cutting will be charged to that work after the 1st proximo. Although my personal relations with General Ward are not agreeable, the following report received from the master stonecutter will show that I have not attempted to throw any obstacle in the way of his districts' receiving a proper proportion of appointments: Hon. E. Ward......... 10 stone cutters, including master. Hon. John Kelly...... 4 stone cutters. Hon. John Cochrane.. 4 stone cutters. Hon. D. E. Sickles... 3 stone cutters. Hon. George Taylor.. 3 stone cutters. Hon. W. B. Maclay... 3 stone cutters. APPENDIX. 381 Hon. J. F. Searing 2 stone cutters. Hon. J. B. Russell... 1 stone cutter. Total.................. 30 On the contrary, being myselfa resident of it, and largely acquainted with the mechanics resident there, I have always taken a deep interest in seeing it properly provided for.,Furthermore, I will most assuredly vote for General Ward, and use my utmost endeavors to have him returned, as a proper reward for the support he has always given to the present administration. In conclusion, although no man is more anxious for the success of the democratic party than I am, a proper regard for my own reputation and the trust expected from me by the Hon. Secretary of the -Navy, will not allow me to squander the funds which have been entrusted to my control for the execution of specific works, for the triumph of that party alone. Respectfully, your obedient servant, CHARLES K. GRAHAM, Constructing Engineer. Commodore L. KEARNY, Commandant. WASHINGTON, June 14, 1858. SIR: We, the undersigned, respectfully request that Mr. Daniel Kennedy, the master stone cutter, be allowed to select his own foreman. We believe that harmonious action between the master and foreman will best be promoted by such a course. Very respectfully, your obedient servants, JOHN COCHRANE, ELIJAH WARD, JOHN KELLY, JOHN A. SEARING, W.. B. MACLAY. Hon. ISAAC TOUcEY, Secretary of the Navy. NAVY DEPARTMENT, June 16, 1858. GENTLEMEN: In reply to your letter of the 14th instant, requesting that Mr. Daniel Kennedy, the.master stone cutter at the New York navy yard, be allowed to select his own foreman, I have the haoor to state that Mr. Kennedy has undoubtedly this right under the rules of the department. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. Messrs. John Cochrane, Elijah Ward, John Kelly, John A Searing, and W. B. Maclay. 382 APPENDIX. NEw YORK, July 10, 1858. DEAR SIR: You recollect that before our departure from Washington you gave me a letter to General Ward, in which you stated that the masters have power to appoint their foremen in each of the departments. This letter is not official, and but little notice will be taken of it unless you duplicate it officially to the commandant in the yard. I regret exceedingly to give you so much trouble, yet in this case I think it necessary to retain proper discipline in the yard. It is not confined to any particular branch, as there are many departments claiming the same right that General Ward's friend does. Will you do me the special favor to write to the department immediately, which will settle the matter. Please accept my kind thanks for the prompt manner in which you made Faron's appointment. He will do honor to the place, as he is an experienced mechanic of great attainments. I will have it in my power to serve you, I hope, and be assured, my dear sir, that it will not be forgotten. Your friend, JOHN KE LLY. Hon. ISAAC TOUCEY, Secretary of the Navy. P. S. My nomination is certain. J. K. NAVY DEPARTMENT, July 30, 1858. SIR: The commandant of the navy yard at Brooklyn has been directed to promulgate and enforce the circular of the Bureau of Yards and Docks, issued on the 8th of July, 1857, which requires that the selection of the men to be employed under the master workmen shall be left to the latter, and that this includes foremen, unless different directions be given by the department in special cases. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. J. KELLY, M. C., New York. NAVY DEPARTMENT, July 30, 1858. SIR: The circular of the Bureau of Yards and Docks, issued on the 8th of July, 1857, by direction of the department, requires that the master workmen shall have the selection of the men to be employed under them. This, of course, includes foremen, unless different directions be given by the department in special cases. You will cause the circular above referred to to be promulgated and enforced. I am, respectfully, your obedient servant, ISAAC TOUCEY. Commodore L. KEARNY, Commandant of the Navy Yard, New York. APPENDIX. 383 NEW YORK, July 15, 1858. DEAR SIR: I have been handed the enclosed affidavits against Mr. O'Conner, foreman of the sawyers in the navy yard, additional to the charges already against him in the department. I hope that they will be considered in connexion with the others. Very respectfully, yours, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. DEAR SIR: The undersigned would most respectfully call your atten tion to the following charges against one Thomas O'Conner, at present foreman sawyer of the Brooklyn navy yard. During the time he was master sawyer of the said yard, under the administration of President Pierce, thatonthe 8th,9th, 10th, and one half of the 14th daysof May, 1856, he allowed one Roger McCormick, then working at sawing in the said yard, to go out after answering to his name, and fraudulently receive pay for the said time, with the sanction of the said O'Conner. I would most respectfully refer your honor to the purser's pay rolls in Washington. THOMAS CARRIGAN, 256 John street, Brooklyn. Hon. ISAAc TOUCEY, Secretary of the Navy. CITY AND COUNTY OF NEW YORK, ss. On this 8th day of July, 1858, before me, personally came Thomas Carrigan, to me known, who being by me duly sworn, did depose and say that the contents of the foregoing affidavit is true to the best of his knowledge and belief. THOMAS KERRIGAN. Sworn to this 8th day of July, 1858, before me, JAMES L. STEWART, Commissioner (f Deeds. DEAR SIR: I feel called upon to inform you of some of the misdemeanors perpetrated by one Thomas O'Conner, recently appointed by your honor as master sawyer of the Brookly~n navy yard, during the time he filled the position of master sawyer, under the administration of Mr. Pierce. Now, sir, I have been a democrat all of' my life time and worked at sawing for a number of years in the Brooklyn navy yard previous to his appointment, but, strange to say, I could not get a day's work from the said Thomas O'Conner until I had to find 384 APPENDIX, the sum of twenty dollars ($20) for to hand over to the said Thomas O'Conner, in consideration of getting employment at sawing, and- he then and there set me to work after receiving $20. PATRICK OWENS, Corner of Navy and Prospect streets, Brooklyn^. Hon. ISAAC TOUcEY, Secretary of the Navy. Sworn before me this 9th day of July, 1858. ALEX. W. BENNEM, Commissioner of Deeds in andfor the city of Brooklyn and State of New York, NEW YORK, July 10, 1858. DEAR SIR In the shop of the master joiner, of which Romeo Fraganza is master workman, there are between 120 and 130 men employed-not one from my district. I have asked to have one employed, by letter to the master and by personal interview, but unsuccessfully. The answer of the master is that when he has more work he will consider my application. If I have not misunderstood your wishes this injustice to my district cannot meet your approval. The remedy is with you and I trust you will apply it. There are several good democrats in my district who are excellent workmen as ship joiners, and they do not ask anything unreasonable in seeking employment in this shop when there is not a man from my district in it. Truly yours, D. E. SICKLES. Hon. ISAAC TOUCEY, Secretary of th Navy. NEW YORK, July 27, 1858. MY DEAR SIR n I have applied to Mr. Fraganza, master joiner of the navy yard, to give employment to a few men, good workmen and worthy persons, in my district. Although he has 130 men or thereabouts in his shop, he has not done so. I have only sent one letter of recommendation to him, but no attention has been paid to it, beyond the answer that when he put an additional number of men to work he would then see what he could do. I appeal to you to vindicate my district from this unjust and partial discrimination. Mr. Fraganza admits he has not one man in his shop from my district. If I have not misunderstood your views, it is your wish that the masters should select from the different districts adjacent to the yard, APPENDIX. 385 in equal proportions upon the recommendation of members, the workmen employed in the shops, &c. Truly yours, D. E. SICKLES. Hon. ISAAC TOUCEY, Secretary of the Navy, Washington. NAVY DEPARTMENT, August 2, 1858. SIR: The department has addressed the commandant of the navy yard at New York on the subject of your letter of the 27th ultimo. Very respectfully, your obedient servant, ISAAC TOUCEY. - Hon. DANIEL E. SICKLES, New York. NAVY DEPARTMENT, July 30, 1858. SIR: The Hon. M[r. Sickles has complained to the department that an unequal and unjust course is pursued towards his district by Mr. Fraganza, the master joiner, who, though he has about 130 men under him, has not employed a single person from his district, although Mr. Sickles has made only one recommendation. The department desires that a fair and liberal course be pursued towards Mr. Sickles' district, and wishes you to inquire into and report upon this matter. I am, respectfully, your obedient servant, ISAAC TOUCEY. Commodore L. KEARNY, Commndadnt Navy Yard, New York. NAVY YARD, New York, August 5, 1858. SIR: On receipt of the department's letter of the 30th ultimo, Mr. Friganza, the master joiner of this yard, was called on for an explanation in regard to the complaint made by the Hon. Mr. Sickles. Mr. Friganza's letter, in answer to the subject, is herewith respectfully submitted. The department letter of the same date, with referrence to the selection of their foremen by the master workmen, was also received, and on the recommendation of Mr. Kennedy, the master stone cutter, I sanctioned the rating of a foreman, named by him, and the discharge of the person who had previously held that position. Beliving that I have carried out the intentions of the department's order, I would like to be informed if the course pursued in this instance meets its approval. I have the honor to be, sir, very respectfully, your obedient servant, L. KEARNY, Commandant. Hon. ISAAC TOUCEY, Secretary of the Navy. 25 D 386 APPENDIX NAVY YARD, NEW YORK, Joiners' Department, August 5, 1858. SiR: In answer to your communication I beg leave to state that the district represented by the Hon. John Cochrane is represented in this department by fifteen joiners, the majority of whom were recommended by him. There are now employed in the yard about one hundred and fifty men in the different departments who reside in Mr. Cochrane's district. While upon this subject I would remark that it is utterly impossible for the master workman to faithfully perform his duty to his government and to his conscience, and satisfy the various political interests. In eight congressional districts who claim the patronage of the yard, in nine cases out of ten the men who are most strenuously recommended are very indifferent hands, many of whom cannot obtain employment from private employers. It has always been my desire to accommodate the various districts as far as possible when selecting men for employment, but the duty which I owe the government makes it imperative upon my part that I should select the best and most experienced hands to perform the necessary work in this department. Some of the members from New York have no joiners in their constituency. The Hon. Daniel E. Sickles never recommended but one man, and I employed him within three days after such recommendation. I am not aware that Mr. Sickles has another joiner in his district. I remain, sir, yours, very respectfully, ROMEO FRIGANZA. Commodore LAWRENCE KEARNY, Commanding Navy Yard, New York. BROOKLYN, September 23, 1858. DEAR SIR: I have been informed that Mr. Ward had consented to the removal of Mr. Kennedy, master stone-cutter in the navy yard. If this is true let me beg you to appoint Mr. Jones. He is one of the best mechanics in the State, and a perfect gentleman, and his appointment would increase my vote at least two hundred votes. I will require all the aid in the power of the administration, and this I ought to have. My opponents have got up a spurious committee and have nominated a second democratic candidate, and there is little doubt of my defeat and the loss of the district unless supported in every possible way by the administration. Mr. Schell has almost ruined the administration members of Congress. A more unreliable and false man cannot be found. He is base and false. If Mr. Kennedy is removed let me beg Mr. Jones's appointment. Also, I understand that Mr. Maclay intends to ask the appointment of Mr. Houstus in place of Lipper, master moulder. You will recollect that I withdrew McNearny's name with the understanding that he should be foreman, to which Mr. Maclay consented. I now join APPENDIX. 387 him in behalf of Houstus, hut request you to appoint or direct the appointment of McNearny as foreman, at the same time-otherwise the understanding will not be carried out. I hope to see you last of next week. Very respectfully yours, GEO. TAYLOR. Hon. ISAAC TOUCEY, Secretary of the Navy. NEW YORK, September 29, 1858. DEAR SIR: A person by the name of Petitt, from Virginia, is writing here to persons in my district to hold themselves in readiness to go with him as calkers to Pensacola, Florida, saying that he was to have the place of master calker there. Mr. Petitt was a resident of my district for nearly about six years since, when he was a whig. The men to whom he has written on to here are republicans. I still urge upon you for appointment John Mosier, of whom I wrote to you. It will be of great use to me. Indeed, my district has but a poor consideration in the navy yard, and I now despair of anything better. I am, respectiully, your obedient servant, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. NEW YORK, October 2. 1858. SIR: The continued and wanton disobedience in the Brooklyn navy yard of your instructions, together with its uninterrupted continuance, has satisfied me that it is now in vain to expect relief from a timely correction of the evil. That while suffering I may now, however, seem submissively to bear my burden, I here make personal charges against the master laborer, McLaughlin; the master timber inspector, Orr, and the master house carpenter, Ross. McLaughlin has, I believe, in the vicinity of two hundred men. I have no men under him. He declines giving me any, or neglects to. Orr has somewhere near one hundred and twenty men. I have one man under him, and he declines giving me more. Ross has somewhere about fifty-six men. I have two men under him. He declines giving me more. There are other masters who are but a short distance behind these in their gross partiality. It is quite useless, however, to mention them. If you shall think these charges worthy of notice, I will hold myself in readiness to substantiate them whenever required to do so. Respectfully yours, JOHN COCHRANE, Member of Congress from sixth congressional district, New York. Hon. ISAAC TOUCEY, Secretary of the Navy. 388 APPENDIX. NEW YORK, November 4, 1858. DEAR SIR: You declined to entertain my charges against the master house carpenter, the master laborer, McLaughlin, and the master timber inspector in the Brooklyn navyyard, when made, because it was then just previous to the election. Notwithstanding the fearful influence of the navy yard against me, I have succeeded in a personal canvass; and notwithstanding the same influence in behalf of the Brooklyn district, it has been lost. I now repeat the charges I made against the masters hereinbefore enumerated, and await your reply. I am ready with my proofs, and trust the time in your judgment has arrived when they shall be heard and recognized. You will permit me to say plainly that the continuance of the shameful concentration of patronage in the Brooklyn navy yard to the comparative exclusion of New York, although Brooklyn is enjoying more than her share of the patronage of the New York custom-house, is intolerable, and should not be longer attempted. I must, therefore, respectfully but firmly request that the democrats of my district be recognized. They will no longer be delayed, nor should they be. If nothing is to be done, I would be obliged to you for an answer even to that effect; for it is of the last importance that now I should be able to inform my constituents if they are to be considered by the administration, which, though supporting, they bitterly complain as regardless of them. I am, very respectfully, your obedient servant, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. NEW YORK, November 8, 1858. DEAR SIR: Your favor of the 6th is received, and I regret to say that it is entirely unsatisfactory, and without power of remedy for the wrongs I consider that I have endured. I have, thus far, contended in my district against the influence of the administration, and it is unreasonable to subject me longer to this adverse pressure. I wrote you before, if elected, I should be elected in spite of the hostility of the navy yard, and I have been. The only obstacle that I have had to contend against has been extensive hostile organizations in my own party, growing out of the numerous disappointments in procuring work in the navy yard. This. obstacle was so serious that unless the merchant republicans and others had assisted me I should have been beaten. It is not my purpose, while sustaining the administration with the best of my ability, to submit longer to its shameful treatment of me. I am now beseiged, day and night, with applications; and I must have some power of compliance, or I must openly charge the fault where it belongs. The masters of whom I wrote you have outraged me, and disobeyed your orders. You pledged yourself for their removal in case they disobeyed; I proffer to you the proof of their disobedience, and upon it I demand their removal. Mr. Graham APPENDIX. 389 is the friend of Mr. Sickles; and, of course, as he holds a check on Commodore Breese, not a man will be displaced, and everything, will remain as it has been. Through various adverse influences, I have been juggled and fooled in the yard. But I submit with all respect, and I can endure it no longer, and I must receive proper consideration. I have consumed now six months in journeying to and fro, between this and Washington and the navy yard, upon errands of piddling patronage of a dollar a day's amount. It is reasonable to determine that this be ended now. You impose upon me the removal of these laborers, and probably with the same result. You will pardon me if I decline the labor, I do not think it improper that I should now insist that I at once know what I am to expect, and by what information I shall regulate my future course. You will, if you please, -reply to me whether I can have any consideration in the navy yard; and if so, how it is to be procured. I am, very respectfully, yours, JOHN COCHRANE. Hon. ISAAC TOUCEY, Secretary of the Navy. NEW YORK, November 18, 1858. SIR: It is represented to me that the masters in the Brooklyn navy yard, in refusing employment to poor democrats residing in my district, act under the express or implied sanction ot your department. May I request, sir, that you will inform me by note whether such conduct on the part of the masters there employed meets with your approbation or otherwise. It is not improper that I should again remind you that the democracy of my district consists for the most part of humble laboring men, to whom an occasional day's labor is a matter of prime necessity. It gives me pain, sir, to feel that any of my public acts, which no man among them could control, and for which no living man but myself is responsible, should have caused their exclusion from the privilege of laboring upon the public works of the government. At this season of approaching winter) and in view of the general paralysis of all industrial employments, it is especially afflicting that men who are themselves innocent should suffer this seeming proscription. Repeated applications to me as the representative in Congress of the eighth congressional district, for letters recommending the bearers to the notice of those masters, compel me, in self-defence, to make the inquiry herein contained, and to give such publication to your reply as I shall deem necessary to exonerate myself from the charge of indifference to the wants of the humble and the poor. May I request an early reply. Your very obedient servant, H. F. CLARK. Hon. ISAAC TOUCEY, Secretary of the Navy. 390 APPENDIX. NAVY DEPARTMENT, November 22, 1858. SIR: I have received your letter of the 15th instant, in which you say that it is represented-to you that the masters in the Brooklyn navy yard, in refusing employment to poor democrats residing in your district, act under the express or implied sanction of this department. This representation is altogether mistaken and without the slightest foundation. I know of no reason why the democrats of your district should be proscribed at the Brooklyn navy yard, and I have received Do information that the masters, who, by the regulations of the department, have the selection of the workmen, have taken any such course. I am, respectfully, your obedient servant, ISAAC TOUCEY. Hon. H. F. CLARK, New Yor7k INDEX TO PART II BROOKLYN NAVY YARD. Page, Thomas R. Rootes, U. S. N --- - -- -- -- —.-.. -...-. - 3 William N. Brady —. -. —- - - - -- - -. — -------- 37 Jacob R. Wortendyke, M. C.. —.-. —-..-.... —-------—. — - -- --—.. —... 43 -Bernard DUlnnelly, —- ---- ---------------— 47 Patrick Fitzgerald -- - ------ 52 Alexander Ward -................ — - —. —. —--- —. —-. —----- ------ 63 Lewis W. Berry —------- - 73 Michael Reilly -.-...-..- - -- -—....... —...-..-................ 82 Joseph Smith, U. S. N --- -------------- --- --- ------ - 88 Lawrence Cohane —--- ------. —--- -—. —----- - --- 117 William Merrifield —, —- - - ------ -- ---- ------- - --------- 127 John A. Searing, M. C —-------- --- -- - -...-.. —. —---—.. —- --. 137 John L. White- ---- - ---- 140 Richard HT. Teller- - - - - - ----- - - - - - 142 Lawrence Kearny, U. S. N —--- --- 145 John Cochrane, M. C - -------- - ---- -—. —----------- ----------- 148 John B. Haskin, M. C -----—,- ---- - ------- --------------- 153 Anson Herrick - ---..... —--- ------- -. --- —. -—.- ----- -------- 158 Edward A. Barnet, U. S. N ----- - ------------------ --- 179 Charles Hastings ----------------------— 184 William D. Kennedy -,. —---,- -...-. —-- ------ ------------ --—. 189 H. F. Clark, M C ------- ------ --..-..-.......... —--—.. -- 194 George Taylor, M. C ------ ---------- 205 R. S. Swackhamer. — --- 214 George N. Sanders - - -------------- 220 William Turner --- --------— _ -------- ----------- ------ 255 John Kelly ------ -—...-... — ---—. —-------- - ----- 267 Charles K. Graham, —----- - ----- ----------- ------------------ 273 Benjamin F. Delano --------- --- ------ ------ --- --- ---- --- 286 Artemas B. Jones —----------------- - --- ---- ----- 296 John S. Crawford n.. - -—.. ——. ------—. -.- —. —. ----—.. -.. - - 299 John Vandervoort ---------—, —---. -- —.-.- - 303 Joseph Smith -------------------------------- -------- 303 William B. Maclay, M. C ---. —------- ------ --- — _ 313 Robert Leigh --- -- 316 Simeon Coapman —..-.-.- ----- - --------------- ------—. -----—. —-, 318 George A. Blood —.- --- ------, -, —------- ---------- 320 Anson Herrick-Appendix to Testimony-...-......- - -..... —----------—. 326 William Merrifield —Appendix to Testimony —_.__-, --- ---------- - ------- 331 392 INDEX. PHILADELPHIA NAVY YARD. Page. John J. McElhone -—. -......-.......................... -- ---- -.... 333 Henry S. Crabbe. —. —---- -. 334 Overton Carr -,-. —------ - --------- -----— s- 342 Thomas B. Florence, M. C —--- —............- 348 APPENDIX. Documents from the Navy Department. ---- - - - - - 353-390