The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-03-30

under the increasing influence OF William II. Seward the
sectionalism Of the wing party will become more rigid
and proscptve, until the be recognised as
the party OF the constitution and the Union and the
other as the party OF agitation and higher-lawsm.
Tho Committee on Frauds-The Light. house
Contract
When we stated that the Senates committee TO nves.
tga,e cases Of alleged frauds had made its report we
mentioned that contract for certain lighthouses on the
Pacific coast furnished one of the cases which had been
examined, and made at the time brief auson
to it's character We will now speak Of it more parc.
ulary.
John McGinns, clerk in the Treasury Department
during the last administration, waited on Mr.. Corwin,
then the head Of that department. and stated him that
be could by erecting certain lighthouses the Pacific
for the OF $4,000. realize considerable profit
At this interview nothing definite arranged. At a
subsequent interview, solicited by Mr. Corwin, that
gentleman suggested that McGnns should associate with
him one Delano, of New York; then in Washington AL.
though Delano was stranger TO McGnnis, this sug-
geslion acceded to- and then Deano proposed that
Robert G. Corwn, relative of Secretary Corwn,
should be admitted to interest in the speculation Nc
Gnns agreed 10 this proposition, and after considerable
delay the contract given to McGnnis he having
signed his office The first memorandum OF the contract
agreed early in December, 1851, and after being
altered several times it finally concluded and signed
on the 2sth Of that month. No security given for
its performance and McGinns proceeded with the knowl
edge and consent OF Mr. Secretary Cowin, find some
who would purchase the from him. and erect
the ligh-houses-there being expectation that he
do the work required by the engagement with the
government, which a speculation from the
beginning.
In the face OF these facts, Mr. Secretary Corwn in his
annual report to Congress, dated December %, 1851,
stated 10 that body that the insufficient appropriation had
delayed, and would probably prevent, any for
erecting the light. houses the Pacific.
McGnnis encountered difficulties in disposing of his
contract but he remained in the market seeking pur-
chaser until time in April. 1852, when Mr. Secreta-
~ Corwn in consequence OF the fears entertained by
the people Of California that the houses would not be
erected gave notice him that he abogaed the contract
But after, McGinnis succeeded in finding pur-
chaser TO whom he sold the contract for bonus OF 49,
900. These parties accepted by the Treasury
Department, and their names substituted for that of
McGnnis in contract. The bonus of $4,000 was
paid TO Deano the partner introduced into the specula
ton by Secretary Corwn, who paid over to McGinns
$1,000 as his share, reseryng $4,000 to divide with
Robert G. Corwin McGnnis il is proper to state does
not know whether Robert g. Corwin has ever received
from Delano any portion of the proceeds OF the specu
ton and Rober, G. Corwin filed an affidavit with the
comm ee denying that he had anything TO do with the
transaction After the sale OF the original contract the
new parties desired modification OF IT. and paid De-
ano 5000 TO obtain j, for them The modification was
made and its value to the was estimated at
$500
Ii s needless comment this transaction for even
the mos, careless reader cannot fail TO understand its true
character An officer of the government, by associang
with him friend Of the late Secretary OF the Treasury,
at the instance OF that officer, permitted TO obtain
government contract. by private arrangement, which he
was not expected execute, but to trade in the
Ike, for his profit, while important interests recog
Missed by Congress neglected and endangered This
tells the whole story and makes out as clear Of
corruption and wrong as can well be presented And
these fact. are fully sustained by McGnniss e.u
mony wbo having accomplished his purposes, laid bare
the whole fraudulent operation when he was brought be-
fore the committee OF investigation and forced 10 testify
We annex the following summary Of the conclusions OF
the committee. as we find them in the report
o tho foregoing abstract Of the testimony hi, CASE
which may be verified by reference the appendix and
which exhibits with sufficient clearness every point
sary TO the formation Of opinion to the character OF
the transactions involves, the committee will only add
the following summary OF their conclusions
Tha Secretary OF the Treasury (Hon Thomas Cor
win) gave clerk in his department private contract
with expectation and consent that said clerk should dis
pose OF the contract AUTHORIZATIONS, and thereby make
large peouniay profit.
I'D. That the partner which hs clerk associated with
himself in this corraot and before was awarded to him.
a personal friend Of the Secretary, then unknown to
the clerk, and taken partner at the sugeesuon
and request OF the Secretary and that this partner sub
,equeny, but still before the contract awarded, pro-
cured the association OF another In the proposed
conuac-the third partner being Robert g. Corwin, OF
Ohio, near relative Of the Secretary.
I'd That this contract agreed upon about the 10Th
18th Of December 1851 and signed by the clerk
contractor, on the 2sh OF the month but security
no, ersctcd OF him, and the contract that cond on
left until some time In April 1852; during which time
the contractor with the knowledge and consent
Secretary, offering this markets and
resolving offers OF purchase for IL.
+,b. That IN tho month Of April, 1852 hi. contract
through the OF the pariner bad been
ed by the Secretary the clerk actually sold