The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1859-02-25
CONGRESSIONAL INVESTIGATIONS-AB
SES IN THE DEPARTMENTS.
MAJORITY AND MINORITY REPORTS.

MAJORITY AND MINORITY REPORTS.
Report Of the Majority Of the Committee appointed to
inquire into alleged abuses in connection toih the
Nary Department and the Navy Yards.
Messrs. Bocock, Grosbeck, and Ready, join in a
report
First, on the management of the Brooklyn Navy
Yard. They take the position that appointments
have been made on political grounds; that on the
incoming OF the present administration, the patron
age thereof was concentrated on two three dis
tricts. All these districts at the time were repre-
sented by Democrats. The delegation from the
city of New York and that neighborhood, petit
toned to the Secretary of the Navy to divide the
patronage among them equally.
Ihereupon there was great deal of confusion
and controversy among the different members of
the delegation, and between the delegation itself
and the Secretary OF the Navy; that great abuses
had previously existed at the yard such as ideness
insubordination, levying of contributions by the
master-workmen on the men. and the appointment
and retention of incompetent workmen.
The Committee admit all these abuses but saw
they have not sprung from anything done, or any
steps taken by the present Secretary of the NAVY
unless this policy of attempting to distribute the
patronage equally be the cause of part of the
abuses. No complaints have been made to him on
the subject and request to redress them in most
OF the cases; but so far these abuses have been
made known to him, he has promptly taken means
| to correct them.
In addition to this, he instituted measures for a
| reform in this particular navy yard About a wear
and half ago he issued an order that b. fore man
was appointed to the place of master workman, he
| should be subjected to examination as to his
qualifications and character; that under his direc-
tion strenuous efforts made to prevent prac-
| tice which obtained in the yard of men answering
| to their names at roll-ca and afterwards absent
ing themselves that in addition this on the l4tb
! day OF December last, he issued an order giving
| power to the commander of the yard to discharge
worthless and incompetent men-measures of re-
| form, all OF which were very important.
| COMMITTEE reDeat. anda cd to
| dress particular cases of abuse which came to his
knowledge. The Committee. however, believe that
the yafd can never be managed in proper manner
| and profitable way to the Government until some
| regulation shall be adopted preventing Appoint
ments in the yard from being made on political
grounds.
The Committee instituted particular examina
| tion in the manner in which the navy agent and
naval storekeeper discharged their respective du-
ties. No charge of malfeasance against them was
proven; but it was proven that they had not devo
ted as much time and attention to their offices as
the important duties thereof required.
The second point of examination is the antbra-
cite coal agency. 1t was proven that DR.. Hunter,
the agent has given no sort of attention to the du-
ties OF the office, but has entirely neglected it. He
has partner in the profits and duties of the Office
located at Philadelphia. But the partner has be-
slowed very little more time upon it than has the
agent himself. He has left the management of the
coal business in the hands of large firm of coal
dealers in Philadelphia, under the title of TYLER.
Stone Co. 1t appears that whenever he gets a
requsition for coal he hands it over to them and
that they superintend the whole business of prov-
ding the coal, shipping it, etc.
The Committee condemn the course of Dr. Hun
ter, and his partner, Mr.. Smith, but say that he
has always been gentleman of high standing and
character; that be lived in the neighborhood of the
coal region and had been engaged in the iron bust
ness, which tended to make him acquainted with
the different kinds of coal; that he was recommen-
ded to this office by leading members of the Penn
sylvania Legislature, and other influential citizens
of Rpa0lnU Philadplphio. hat bo bo,
been in office there has been nothing to call the at
tention OF the department to his neglect of duty
No complaint has been made by anybody to the
Secretary of the Navy on the subject. The coal is
of the very best quality, and has been furnished
regularly for the of the Government bv the
firm of Tyler, Stone Co., and it appears at 40
cts. per ton less than the Government had obtained
it for up to the spring of lS4S.
In 1857 the Government bought coal at 81 %
per ton, and under this new agent purchased all the
time at S3.s5. 1t is true that a large number of
gentlemen had sworn they could have furnished
coal at lower price, but the Committee are Of
opinion that they could not have furnished an art
Gle suitable for the Government use.
As to the selection of DIR. Hunter, and his recon-
mendation to the office by some of the applicants
for the agency themselves the Committee say that
the Secretary of the Navy had never been inform
ed of the arrangement. The previous coal agent
Mr.: Tyson, resided at Reading, and had partner
residing at Philadelphia, as the present agent, also
residing at Reading, has at the same city,
Some mtimation was made to the President on this
subject but it was indefinite, and if the President
understood any thing about it, it was merely as te
a division of duties, as heretofore
In the firm of Tyler, Stone & Co. is Mr.. Beach
nephew of Mr.. Toucev; but, in making the arrange
meut with that firm, Dr. Hunter swears that he die
so without the least intimaton, or any request di
rect or indirect, from the Secretary of the Nav,
that he desired him to do so; and so far as b,
knows or believes, the Secretary neither hac
knowledge nor wish upon the subject.
The rate of compensation of the coal agent wa
fixed during Mr.. Filmore's Administration at tht
present price, and the present large amount q
compensation was in consequence of the extraordi
nary demand for coal in connection with the Para
quay expedition.
The Sd branch of the examination relates to the
live oak contracts. Two dealers had live oak or
, hand-Swft, the most. At the time the proposals
were issued the government had taken steps for tn,
construction of seven new sloops-of-war and thu
expedition to Paraguay had been authorized. Mucl
less time was allowed for the delivery of the tim
Der than heretofore because it wanted for use
very soon. Some of it, which was immediately
d,was bought up and used by the Governmen
before the time far awarding the contracts The
Secretary of the Navy, in his specifications in
serted an unusual clause, by which he reserved t.
himself the right to award the contract on the bids
of any party unless the price was a fair and rea
sonable one that if he wished to get the timb el
of these two men for the of the Government h,
would show to them and to the world that he die
not intend to give them for it anything more thai
} a fair price. When the bids came in under thes,
proposals, these two men who had the timber (Swif
and James Bigler) were not the lowest bidders
; Others bid below them, and the contracts were
awarded to them.
| Immediately after the contracts were awarded
the contractors came to Washington and told tn,
them to comply with the contracts. They knew
when they made the bids that they could not ge
the timber in time, but relied upon getting the tim
extended for the delivery. Failing to comply will
their contracts the latter were declared void -
Under the law the Secretary had the right to con
tract with Swift or any other person, even if h
had to give higher rate than these men proposed
to furnish the timber for and charge the dtferenc
to the defaultng contractors. But Swift came for
ward and furnished the timber at each and all th
yards at the lowest price bid by any other party
The committee believe that the price was fair anc
that there was nothing in the transaction that
of the Navy Department.
In 1854, while Mr.. Buchanan was in England
George Pitt, whose wife has some family connec
tion with Swift entered into contract or arrange
ment with Swift to the effect that he Pitt would
endeavor to get contracts for him to supply tim
Der on the condition of receiving ten per cent.
the gross amounts of all the contracts Pitt intro
duced Swift to the Secretary of the Navy and othe
influential persons, and put him ON good relation
with all his friends. Soon after the Cincinnati
Convention, Pitt introduced Swift to Mr.. Buchan
an, but merely said that he an Old Line Whig
and that he had given him (the President,) a cor
dial support Swift, it appears, contributed freely
to the Presidential election. In introducing Swif
E, to Mr.. Toucey, Pitt made a similar remark. Thi
WAS dll LndI was ever tOlQ 10 the secretary or Il
the President until some time after the contracts
for live oak, fin September last, were awarded t.
Swift.
Some time in October or November while Pitt
was at the White House, he showed the Presden
the agreement with Swift, saying that Swift haC
i refused to carry it out, and asked him if ther,
could be any objection III prosecuting Swift fol-
non-fulhlment of the agreement of 1854; and tn.
President replied he could see no objection to it
and that Pitt could do as he pleased.
1t appears that Swift claims that his contrac
with Pitt only extended to the end of the last Ad
minstration.
The next and last branch of inquiry was in rela
tion to the awarding of the contracts for the
e sloops-ofwar ordered at the last session of Con
{ gress. There were seven contracts in ALL and il
awarding five of them it appeared that no politca
or any other improper influence was resorted to b,
the different bidders; that the proposals were ad
vertised according to law; that the leading estab
Z lishments in New York, Philadelphia, Boston, Bal
tmore and Hartford presented bids for each and al
: of the engines; and that the contracts, were il
every instance, awarded to establishments of hig
reputation for undoubted mechanical efficiency
These bids were referred to board of engineers
consisting of the engineerin-chief and three chic
engineers, and the contracts given out accord
ing to the report of the board-in cases unan
imous, in others on the recommendation of the ma
Jority. Mr.. Martin a member of this board
and is the inventor of boiler which was included
in the plans of all the bidders except two, who's,
plans were decided on by the board of which h,
was member; and the plans which did not include
his boiler were rejected by every member of thu
board. All of the plans, for real competition, in
cluded Martins boilers. The committee find under
| 10 thn naQa hat NO how,