The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-04-16


but finally witness concluded not accept the offer Had
witnesses first offer been accepted, he should have
pleed houses by st October, 1852 and in all probs
billy all would have been done By ls October, 1888
TESTIMONY OF FRANCIS A, GIBBONS.
Witness purchased the OF McGinns. and paid
MIR. DeaDo $4,000 for II. The agreement was made
with Deano for thai for the REIMBURSEMENT OF Me-
Gioniss contract aud new one TO and his part
ner MIR Kelly, with certain notifications The contract
with the notifications was accordingly executed.
Would not have taken the contract at much less than
McGnnis had done $50 600 10 $4,000 could have
been made by prudent management upon II, as II ogi
pally stood The notifications were thai portion OF
The materials should be conveyed at government expense
An additional OF $500 paid by witness 10 Deano
for procuring another change in respect 10 the Oregon
light amounting 10 about $500 in the size value of
the contract
TESTIMONY s. KELLY,
Agreed TO unite with Francis A. Gibbons az a partner
in The purchase. Came to Washington at Mcesinniss
instance Met with Delano at McGinnis's house. The
purchase then closed-Delano being then regarded
by witness as McGnnis's agent We Gibbons KEEL
levi agreed 10 pay McGnnis SIS, OOO a new contract
tobe executed by which has been done
and the amount paid to Delano
Mr. Gibbons and Mr.. Delano conducted the negotia.
lions mostly in the presence OF witness.
To the foregoing abstract OF the testimony in tas case
which may be verified by reference 10 the Appendix,
and which exhibits with sufficient cearness every point
necessary the formation opinion as to the char
OF The transactions il involves, the committee will
only add the following summary OF their conclusions:
LIST That The Secretary OF The Treasury Hon. Thomas
COTWln) gave TO clerk IN his department private con-
tract, with the expectation and consent that said clerk
should dispose OF the contract TO subconlractoIs and
thereby make a large pecunlary profit
3D. That the partner which this clerk associated with
himself in this contract, and before ii awarded 10
him. was personal friend OF the Secretary, then I'M
known to the clerk and taken partner at the
suggestion and request OF the Secretary; and that this
partner subsequently, bu, still, before the contract
awarded, procured the of another partner in
the proposed conractthe third partner being Robert
Corwin, of Ohio, relative OF the Secretary.
Sd That this contract agreed about the 10th
18th OF December 1851 and signed by the clerk
contractor, the 2Sh OF the same month but secu-
rlty not exacted OF him. and the contract in that
condition. left until some time in April, 1882 du
ring which the was, with the knowledge
and consent OF the Secretary, Offering this contract for
sale in the markets. and receiving offers OF purchase for
4th That in the month of April. 1852, this contract,
through the agency OF the partner who had been recon-
mended by the Secretary the clerk, actually sold
to subcontractos at profit OF $l5 OO0 and that these
sub.contractors accepted by the Secretary in place
OF the original contractor and their and security
as such substituted for the original contract which was
cancelled.
5th That the of Sl5 O00 the price OF this
tract paid 10 the original contractor by order
the United States treasury drawn by the sub contract
part of the 1925 000 which TO be the advance
their contract. which its entitled them the
original contractor (who had been clerk) receiving his
third. being $4,000 and the remaining two thirds being
$4,000, received by the person whom the Secre-
ary bad introduced into the partnership, by whom the
negotiations for the sale OF the contract had been
Quoted, and who was to pay TO Robert G. Corwin
his dsrbutve share, being $4,000, OF this price OF the
contract
eih That this clerk TO whom this private contract for
the construction OF lighthouses the Pacific coast
gven well informed and experienced in the opera
tons OF the Treasury Department having been many
years ofhce-at time filling that OF chief clerk
from which he was transferred, areducedsalay TO the
desk quasi bureau special charge OF these light
houses; and thus, from his official position having ad-
vantages and facilities of information the basis of ch
contract, especially when made privately, which
nnattainable by any other person.
7th. That after the sub-conacors had purchased this
of the original contractor by paying him SIS 900
Tor the privilege OF taking his place IN IT, they Obtained,
through the agency OF the friend OF the Secretary,
whom he had introduced INTO the partnership with the
clerk and by whom the purchase had been negotiated
odfcaton of the contract in their favor 10 the
OF $1,000 and for this agency they paid lee oil 5000
Sih. That although the Secretary OF the Treasury,
his annual report Congress, dated December &C. 1851
states that the erection OF these lighthouses had not been
contracted for, and probably could not be; yet this
tract the subject OF this report had, in It's terms been
agreed upon ten days beiore-say December 10th OF
ashland vas actually signed Two days afterwards,
December 2Slh.
9th Aud although the Secretary, in the same report.
says that the insufficient, appropriation bad delayed and
would probably prevent any contract for the work yet
TINS contract whlch ne hdf aTeddy made, Tor si3oooo
was for eight OF the Ten lighthouses 10 be erected eay-
ing OF appropriation that OF S22 lao, appl-
cable TO the other h0o-the whole OF the subsst-
ing appropriation beng Sl5S,l40.
10Th That although the Secretary, in his communica-
ton TO the Senate daed April "a 1852. 10 10 a
resolution OF the 5th OF that month, that the orgi
llRD-UOuser NaQ Deen
led, and that had been made, and probably
could not be withou, additional appropriations, which, 10
the amount Of S50OO0 he asked OF Congress yet,
that Tine he had reed that the sub-couacors should
take the place oil the original contractor in the OF
December 2sth and only days oftuwards-ihai IL,
April 3oth--actually consummaed the contract with
them He thus had contracted for eight OF the ten light
houses for Sl36 900, which left balance, before
shown, of 22,tI0 If the subsstng appropriation sppli
cable 10 the other Two structures O this however he
made communication TO Congress thus keeping up
his mmendation for the additional sum OF $3.50 O00
which, together with The balance OF So, 140 on hand
made for the oo structures then contracted
for being $4,000 those than for The sgh
others which had been actually contracted for. His
mate may be perfectly correct and owing The dis
from supplies, and peculiar difficulties, larger sum
might be required for The remaining Two than for the
speak mildly OF il, that when the Senate bad asked for
information, the Secretary, protesting 10 communicate il,
should not only have Withheld the fact that conr
had already bea agreed upon for eg out Of The fen OF
these houses but should have sought besides make
the impression upon Congess hath delay had resulted
from insufficient appropriations, and that the additional
sum asked for Indispensable TO enable him 10 have
any portion OF The work contracted for or performed.
There several other though minor, points in this
case, which are deserving OF notice but they deemed
by The committee be set forth with sufficient promi
and cearness by the foregoing abstract OF testimony
and especially by the testimony in detail in the appendix
without further comment
lTo BE Continued