Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1859-04-12
Frauds upon the Government-No. 4.


Though We have entitled these articles Frauds
upon the Government" and though they are de-
voted to an exposition Of frauds that open and
glaring, it must not be understood that they are
designed TO bring to light all the dishonest deeds
that are performed By the different officials Of the
country It viii be observed that our exposures
are confined exclusively to the Navy Department
Dor do they embrace one tith%f the frauds that
are practiced even in that We're we To nvesti-
gate other contracts and practices in the Depart
ment Of the Navy. they would be found equally as
fagitous ~ those we have enumerated. Were
we to 20 beyond the Navy, into the Var Depart
ment, the Indian Oficc. the Lend Office, and the
Post Office we should be able, if we had the ma
terial to present an array Of crime and fraud that
would astonish the most impassire Of our readers.
Having exhibited unmistakeahle evidences Of
rascality and peculation in the respective matters
of the Coal Agency in Philadelphia, the lisc-oak
contract with SwiA. and tho employment Of men
in the New York Navy Yard we come next to the
practices Of the officer known as the Navy Agent
at the city Of New York This Navy Agent,
whose name is George N. Sanders. is well known
by equation to most readers Of newspapers lie
was the osteasible editor Of the Democratic Rc.
view in 1881 and 1882 and distinguished his
Magazine by its furious assaults upon G"n caSs,
Mr. Buchanan, and other veteran politicians.
whom it designated by the eontemptnoos ''''" Of
cold togies" As Mr.. Pierce was indebted for his
nomination to the fact that all these "old iogics'
were set aside by the Baltimore Convention
whether owing to the articles in the Review, or
not, We are unable to say he quickly provided
for Sanders by making him Consul N Lanlon.--
When Mr.. Buchanan came into the Presidency
though one Of the identical "old iotics' whom
Sanders bad so mercessly lsmrooned-hc gave
him the lucrative office of NM Agent at New
York. There seems to he no such thing resent
ment for an injury. in the heart Of chronic De
mocratic politician.
Now, let us see what are the practices of the
New York Navy Agent in the discharge Of tie
duties Of his Office. We learn from the report of
the Committee that bis disbursements amount an
nually to the enormous sum Of four millions Of
dollars. He has to pay out this sum for supplies
for the Navy, for wages and for other expenses
connected with the New York Navy Yard
By the express provisions of the law. all arti-
WM permit under a contract with the lowest bid
der. In cases Of sudden emergency as the
immediate fitting out of a vessel for some special
service-the law gives the Navy Agent the right
to dippensc with the contract. and to buy the ari
cles upon open purchase in the market But
such sudden emergency does not occur perhaps,
once q year. The law contempates tina, NIL pur-
chases shall be made, by contract and of the low.
est bidder.
Now, it is stated in the Report of the Commit
tee that such articles rs needed for the Navy
were not purchased at all "by contract
were they purchased "from the lowest bidder -
Most Of the articles were purchased from one SIM
gle house in New York-the house of Secor Co.
without either contract" or IBID" And one
of the partners in this house is not only the init
mato and confidential friend of Sanders, bu, is the
security upon his official bond!
Still, this argues nothing wrong per Sc The
disregard Of the law in buying without contract
may have been all right-and tho buying from
that particular house may have been all right
provided the prices paid for the articles were rea-
sonable and just. But was this the case? The
Committee say "The evidence clearly shoes that
the articles thus purchased were bought at much
higher rate than the contract price" An instance
is given where iron was bought by Sanders at five
and quarter cents per pound, when the contract
price per pound was only three aud a half cents.
This was several years ago, when iron was cheaper
than at present.
The plan pursued in the Navy Yard was this {:
When articles were needed memorandum was
made out by the Master workman, and handed to
the Navy Agent. Instead Of buying the articles
~by contract" and from the ''lowest bidder" he
did not even enter the market to see where they
could be bought cheapest. He merely handed the
memorandum to Secor Co.-they furnished the
articles let their own price, Sanders paid
them the Government money! ltappcars that il
made no difference whether the articles wanted
were in the regular line of business of this firm,
or not. If they did not::have them. they procured
them elsewhere. What commissions and profits
they charged, nobody knows. Uncle Sam footed
the bills, and leave the reader to draw his own
conclusions.
Commodore Rootes, however, testified before the
Committee. that they had great deal of trouble
with Mr.. Secor, and that everythipg furnished to
the Navy Yard by Secor Co, while he wa.
there. bad been far abope market prices and so be
scvvts 10 Ghe Dcpavt1ss& Lieutenant Barnet. for
Soma tins ths inspecting officer, makes the san a
statnasnkt Several Instances are shqwn in the
tss61pny nj in Commander Rootes' eorre.pou
dencs with H. Department where the price va.
ezos6ix666, s5uazS Ct $50 s. afsi 30 s.,
So 1t appears that Commander Rootes not only
know that the articles were charged "abose mar