The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1859-02-25

sire to change one OF the contracts which he ha
made.
The Committee report resolutions TO the follow
ing effect:
l. That the testimony taken in the Investigation
proves the existence OF garng abuses in the Brook
lyn Navy Yard, and require the interpostion of
legislative reform-that it is due to Justice to de-
clare that these abuses have been slowly and grad
ualiy growing up during long course of years,
and that no particular administration should have
the entire blame thereof
2. That the coal agency for some time past has
been in the hands of persons wholly inefficient
and grossly incompetent, and that reform is
needed in the regulations which exist on the
subject; and that there is no proof which traces
any knowledge of such nefiicency and incompe-
tency to the responsible authorities in Wash
ington.
3. While the Committee will never sanction or
approve, on the part of any officer of the Govern
ment, any favOrs to contractors yet if the Secre-
tary OF the Navy did contemplate any favor to
Swift he did not design to bestow it to the detri
ment OF the Government, but that all he did in this
matter he kept always in view the good of the pub
lie and the interest of the service
4. That in the letters of contracts for the con-
struction of steam machinery for the use of the
Navy, during the present Administration, nothing
has been shown which calls for the internoston Of
the Congress of the United States; but it is mani
fest the present head OF the Navy Department has
displayed very laudable zeal to secure the great
est amount of speed and efficiency attainabie by
said vessels.
MINORITY REPORT.
The statement signed by Mr.. Sherman, OF Ohio
and Mr.. Rtchie, of PENNSYLVANIA refers to the
general organization of the bureaus in the Navy
department and the expenditure in each bureau
since 1882 but states that the inquiry of the Com
mittee was mainly confined to four branches of ex-
penditure
l. The purchase of fuel in the NAVY.
2. The purchase of live-oak timber.
). The management of the navy yards; and
a. Contracts for steam machinery.
The coal agency was estabshedin 1850, and the
mo fAfn nAnlr = or
The compensation allowed was five per cent on
cost of coal and freight to inland ports In Nav,
1858, some of the applicants met at Washington
with their friends, and agreed that DR.. Hunter of
and that the profits should be divided between DR..
Hunter, Mr.. Getz, editor OF the Reading Gazette
and John +. Smith, of Philadelphia; that this
agreement was made known to the President, and
DR.. Hunter appointed. Dr. Hunter is a practising
physician, knew nothing about COAL and did not
buy any, but turned the whole business over to
Tyler, Stone & Co., firm in Philadelphia, of which
Mr.. U. Nicholas Beach, nephew of Mr.. Toucey
is member; that this firm bought all the coal for
| the Navy, charging about fifty cents a ton more
than it cost there, and more than the market price
that Hunter got 81 453 his profits as coal agent
| and did nothing.
| In 1854, Swift and Wheeler, of Massachusetts,,
| made contract with George Pitt, of Philadelphia
| an intimate friend of Mr.. Buchanan, that Pitt
should aid Swift in getting live oak contracts with
| the Government, and should have ten per cent on
| the gross amount OF the contracts. Pitt was to
| put Swift on familiar relations with the Depart
| ment. In the Campaign of 1858 Swift contributed
| to the election in Pennsylvania $4,000, paying it
70 70 fhtt as the Treasurer OF the Democratic State
Committee. Pitt did all he could to aid Swift in
frequent interviews with the President and Secre-
tary Toucey. In 1857 Swift got live oak contracts
to the amount of S25ooO0. In executing these con-
| tracts he delivered at the Navy Yards a LARGE
amount of timber which was reiected-some be-
cause it was not the size required by the contract
and some for defects In June, 1858, advertisement
were issued by the Secretary for 1901 900 feet ofve
| oak timber, mostly of the sizes and kinds then in
the Navy ards, belonging to Swift and Bigler.
That the time fixed for the delivery of half of it
| was September l, lS59-that the time always before
allowed was one or two years, and that it was i'm
possible for any to get live oak from the live
oak region within the time-that the advertisement
prevented all competition, if its terms were en-
forced and that such was the design of the Secre-
tary. The timber Of Swift and Bigler, then at the
Navy Yards, was all the live oak in the market as
it was not kept by dealers in large quantities but
| cut as needed.
Swift and Bigler entered into an agreement by
/ which Swift was to put in a bid at Sl.30 cubic
foot, and Bigler was to bid higher, and when the
| contract was awarded Swift was to take Bigler's
timber and allow him contract price. Regular
dealers in live oak put in bids upon the expectation
that time would be granted until the first of Feb
ruary, lS59-the usual time being one and two
years. Their bids were S28, 900 lower than Swift's
| Contracts were made with them August 1858, and
they promptly went to work to get the timber. In
| september lHelr contracts were cancelled by the
Secretary, and all of them given to Swift. This was
done In violation of law, and merely to favor Swift
that the navy yards have been turned into po-
| litical machine.
| In April, 1857, Mr. Toucev and the
Democratic members of Congress from New York
CITY entered into an agreement that the patronage
of the yard should be divided among the members
The master workmen and the w0rkmen were ap
portioned out, aud in some cases new offices made
The correspondence of members of Congress i.
given, and detailed statement of quarres thefts
and various abuses. The number of men in the
yard was increased over eleven hundred from Nav
to November last. week before the election
Commander Rootes, the active officer of the ward
was detached without notice and ordered to Wash
lngton Upon the navy yard at Brook yn the state
ments substantially agree.
The contracts for machinery for the vessels bull
under the act of June, 1850, were improperly let
While the proposals were pending, Col. Patterson
wrote letter to the President urging that one o.
the contracts should be given to Merrick & Sons
that they employ large number of men, and are
old Wings in favor Of the reelection of Col Flo
renee, and that the result would place his election
beyond doubt. BY an endorsement on the letter
IN the handwriting of the President, it was submit
ted to the Secretary of the Navy, and the aware
was made to Merrick & Sons. That the awards
generally were determined upon the vote of d. B
Martin, Chief Engineer, and he interested
largely in the awards. detailed statement o
each award and its endorsement is given.
They find that Hon. j. Clancy Jones, while
member OF Congress- agreed with the Reading Forgt
Company to get Government contracts and worl
for it, and did so, for which he to receive five
per cent; that in so doing he violated the law
They moved the passage of the bill, in order t.
guard against abuses, and the adoption of the fol
lowing resolutions:
RESOLVED, That the Secretary of the Navy, will
the sanction of the President abused his discretion
airy power in the selection of coal agent, and il
the purchase of fuel for the Government.
Resoloed, That the contract made by the Secre
tary of the Navy, under date of September 2S
1853 with w. N. Swift, for the delivery of live oal
timber, was made in violatioa of law, and in {
manner unusual, improper and injurious to thu
public service.
Resolred, That the distribution bv the Secretar,
of the Navy of the patronage in the Navy Yart
among members of Congress was destructive O
discipline, corruptng in its influence, and highl,
Injurious to the public service.
Resotued, That the President and Secretary o
the Navy, by receiving and considering the part,
relations of bidders for contracts with the United
States, and the effect of awarding contracts upol
pending elections, have set an example dangerou
to the public safety and deserving the reproof O
this House.
Resotued, That the appointment by the Secre
tary of the Navy of Daniel b. Martin, chief engi
neer, a member of the Board of Engineers t,
report upon proposals for constructing machiner,
for the United States, the said Martini at the time
being pecuniarily interested in some of said propo
sails, Is hereby censured by this House.