, 1861-12-21

"The exigencies Of the public service have
required the expenditure OF large sum Of
money in the purchase and fitting out Of ves-
sells for the expeditions against the Southern
coast, and for the other new duties imposed
By the rebellion More than seventy vessels
oi different capacity and value, at q first cost
Of nearly s. 000, 600, before fitting and furnish
ing them, respectively, for the peculiar ser
vice for which each was designed, were pur-
chased By the Government IN the single port
of New York, in the short space OF six or seven
weeks.
"The dictates Of prudence and sagacity
such as characterize the most ordinary busi-
ness{transactions would have required the en-
ployment in this most responsible duty Of the
best talent and experience Of the navy-of men
who, by their professional experience, are pre-
Eumed to know what service is required Of
such vessel, and what particular ones in
crowded market would meet the exigency.
The committee regret to find that these plain
rules, governing all successful business trans
actions, hare been disregarded, and that the
public service has suffered greatly thereby"
The first purchase Of vessels alluded to was
in May last, by ". H. starbuck, New York
broker, who proceeded to New Bedford,
where be bought the ship Roman for 1000,
and the vessel William Badger for s2,50o.
6tarbuck then took in partner in the trans
action, who made an affidavit that he sold the
vessels to starbuck, and for the following
Sums: the Roman for 81, 400, and the William
Badger for $7,150. The Government actually
paid $14, 500 for the vessels, besides commits
sion fees; but starbuck, upon being threat
ened by the United States District Attorney
in New York, refunded S6, 16G.
t'But it is to the arrangement between the
Secretary Of the Nary and his brother-in-law,
Mr. Morgan, and to the compensation Of this
agent for the services thus rendered, that the
Committee desire especially to call atteption
in this connection, as Of character, whether
it be in the stipulated amount received, or in
the mode Of payment, alike indefensible and
repTehensible. That arrangement is system
Of commissions, usually tWo and a half per
cent. Of the purchase money paid for each
Yessc1-and one under which Mr. Morgan re-
ceived, as compcnsation6, during the seven
weeks previous to the 9th day Of September,
when this testimony was taken, the enormous
sum of $5l,5S rs admitted By him before the
Committee When this testimony was taken,
information Of its extraordinary character was
communicated to the Department, III the hope
that an abuse SO glarinls, when pointed out,
might be corrected.
"Yct, notwithstanding the department be-
came thus possessed Of the information that
| lis OVID agent was, by this system Of commits
sions, ama$sang q 77rteah fortune, the commit
| tee have been Surprised to learn, from IA recent
| communication from the Navy Department,
| furnishing them with the number and prices
| Of vessels purchased by Mr. Morgan for thc
| Government since the 9TH day Of September,
to the sum of 81, ,73G, ,092. # he has received
the same rate Of compensation since as before thai
date, there must be added to the sum Of S51, :
5S4, paid him before that date, the further
compensation Of S4S, ,424, for services rendered
| since, making in all the sum Of s95, COS paid tt
| - fo+ ~
the government since the 18th day Of July, d
period Of four and one half months.
s'Mr. Morgan insisted, in his testimony and
seemed to believe that this large compensa
ton was received by him, not from the Gov
crnmcnt, but from those who sold their ship:
to the Government, and was, therefore, jnsti
fable. But the committee can admit neithe
the premises: of Mr. Morgan nor the conclusion
be draws from them. In point Of fact thi
large compensation was paid, in the end, on
Of the Treasury Of the United States; but If i
had been paid by those who dealt with TIL
Government, it would have been equally in
defeusih1e. No department Of this Govern
nent has right to place its agents i'll . posi-
ton, or clothe them with power, under prC
tence Of compensation for services rendore
the Government itself, to take from the pock
cts Of patriotic citizens coming forward wit
their means to the sopport Of the Goyernmcu
in the day Of its trial, such L sum Of none
rs is here found to have been diverted int
: the pocket of MIR. Morgan.
"No citizen can Justify any such attemI
to convert the public necessities into an oce:
! sion for making private fortunes. If 1t be tru
t that this agent Of the Government is paid b
| those who deal with it, the committee are at
} | loss to undcrEtand upon what principle pr,
Tailing in business or morals the agent Of or
: party is thus put in pay Of the other party.
E alizing and infamous to the public SERVICE
! st But the pretence that this large amour
of fmoney in the form Of compensation for sc
$ vices rendered the Government, twice as gre
: for two months as the Presidents salary for
, year, and as much for five months as the G.
+ out Of those who dealt with the Governmen
c and not out Of the party for whom the scrvic
WeTe rendered, SO persistently urged in justi
}, cation, has no foundation in fact.
}, at is but 90 much added to tho cost Of Il
q slips purchased, and has been paid out Of Il
distributed in the form Of q small comnissio
!, over millions OF dollars, and in some instanc
q was scarcely perceptible; but it's presence #
+ no less real and its aggregation no less enc
+ nous. In form Of words, as stated by n
{, Morgan in his testimony, the arrangcmc
r Of the Navy to perform this service, with Il
n express stipulation that he was to receive
+ fxtd salary to be paid him By the Cover
y ment for the services he was to render it, b
he was to charge commission Of two and
Y half per cent. on all his puTchases-the usu
New York brokerage.
Il s'Hc was beforehand to inform, and did
form every one with whom be dealt, Of tt
| Arrangement, and that his commission hi,
q be deducted from the amount paid for the shj
y OF, as Mr. Morgan preferred TO state it, n,u
= be paid by them, after the Government b
, paid for the ship. In this way every one n
e notified, before he fixed his price, TINT out
u that price was to be deducted d given sum
u pay the agent Of the buyer, that is-to the 81
a he was actually to receive for his ship he MI
g add The sum he must pay to the agent Of t
y sity, that in bringing his mind to the lowt
q sum he is willing to accept as an equiyale
% for his ship, be must add that which he is
70 pay back to the agent ofthe buyer, else he dc
e not get that equivalent. No amount ofsub
e reasoning, by which it is attempted to suste
u this anomalous arrangement, can do away vi
y this practical result. If testimony were need
d on this point, it may be found in that given
y fore the committee BY many of those VI
y whom Mr. Morgan dealt, though with some
u then, in their anxiety to make sale of their r
r. =. sells, small commission seemed oflittle or
g account.
1e "The compensation paid to Mr. Morgan
I. the purchase OF single Tesscl, negotiati
u Of few hours OF days ut most, sometir
e, e, amounted to more than s., GOO. There WAS
III seller, when asked the question, who failed
= say that he would as soon hare sold his 81
be to the Government for $500 less, withe
10 commission, aa to have sold it for the pr
OF agreed upon, and then paid the sum to !
Mt INF: woolsey, who sold him ships, te'
as fes as follows (page 2a2): =:
I'D the mode which Mf Morgan has adopte
No Does not the seller, in selling, take into c.
ss sa sideration the amount he has to expcnd in I
lie "A: Yrs. sir Teunpose he does IN 4 II,