Semi-weekly North-Carolina standard. [volume] (Raleigh, N.C.) 1852-1853, 1853-04-13
FRAUDuLENT CoNTRAcTs


The Washington Union has been exposing The
various frauds praetised on the treasury during
Fillmore administration, and we give the following
| from that paper as a specimen
g The CoMMrTrEE ON FRAUDS. w hen we stated
that the Senaies Commttee investigate The cases
OF alleged frauds had made its report, we mentioned
that contract for certain light houses on the Pacific
coast furnished one of the which had been ex.
amined, and we made at the same time brief aIlu.
sion to its character. We will speak of il more
particularly.
John McGinnis, Clerk in the Treasury Depart
meDt during the last administrations, waited on Mr..
Corwin, then the head of the department. and stated
to him that he could by erecting certain light houses
on the Pacific for the of $l36, 900, realize a
considerable profit At this interview nothing def
mite was arranged. At subsequent interview, solic-
tied by Mr.. Corwin, that gentleman suggested that
McGinnIs should associate with him one Delano, of
New York, then in Washington. Although Delano
was stranger to McGnnis, this suggestion was ac-
ceded to; and then Delano proposed that Robert G..
Corwln, a near relative of Secretary Corwin, should
be admitted to an interest in the speculation. Nc
lnnls agreed to this proposition, and after consider
able delay the contract was given TO McGinnis, he
of the contract agreed early in December
1851, and after being altered several times, it was
finally concluded and signed the 29th of that
month. No security was given for its performance,
and McGunis proceeded with the knowledge and
consent OF Mr.. Sec. CorwiD, to find some one who
would purchase the contract from him and erect the
light houses-he:e being expectation that he was
TO do the work required by the engagement with the
government, which was mere speculation from the
beginning liz the face of these facts, Mr.. Secretary
CorwIn, in his annual report to Congress, dated De-
cember 26, 1851, stated to that body that the INSULT
Gent appropriation had delayed, and would probably
prevent any contract for erecting the lighthouses
the Pacific.
AIcGinns encountered difficulties in disposing of
his contracts but he remained in the market seeking
purchaser until some time in April 1852, when
Secretary COrWin. n of he
Iained by the people of California, that the light
houses would not be erected gave notice to MIN that
he abrogated the contract But soon after, McGin-
MS succeeded In finding purchaser, whom he sold
the contract for bonus of SIS, 900. These new
parties were accepted by the Treasury Department,
and their names were substituted for that of McGn
mis- in new contract. The bonus of $4,000 was
paid to Delano the partner introduced into the spec
ulation by Secretary Corwin, who paid over.to Nc
Ginnis SIS 900 his share, reservng 900 di-
vide with Robert G. Corwin. McGinns, it is prop
er to state. does not know whether Robt. G. Corwn
has ever received from Deano any portion of the
proceeds of the speculation; and Robert G. Cor~in
filed affidavit with the committee denying that he
had anything 10 do with the transaction. After the
sale of the original contract, the new parties desired
some modification OF 1t, and paid Delano $500 to OBJ
tain II for them. The modification made, and
its value to the contractors estimated at 81 500
Ii is needless to comment this transaction, for
even the most careless reader cannot fail to under
stand its true character An officer OF the Govern
ment, by associating with him friend Of the late
Secretary of the Treasury, as the instance of that
officer, was permitted to obtain government con-
tract, by private arrangement, which he not ex
pected TO execute, but to trade the market for mis-
own profit, while important interests recognized by
Congress were neglected and endans cred. This tells
the whole story, and makes out as clear case of
corruption and wrong we'll be presented. And
these facts are fully sustained by McGnnis's own
who, having accomplished his purposes,
laid bare the whole fraudulent operation when he was
brought before the Committee of Investigation and
forced to testify
Mr.. Corwin, it is evident, is of the most un-
men in the country. He one of
the ruling spirits of the Fillmore administration.
He signalzed himself, it will be remembered, by
his reasonable opposition to the Mexican war.
The country has been most fortunately delivered,
and control of such men.