The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-01-02
STATEMENT OF Ex.sEcRErARY FLOYD.
The following communication was received
in the u. s. House of Representatives Tues.

The following communication was received
in the u. S. House OF Representatives Tues.
| day:
WAR DEPARTMENT, Dec. %, 1860
SIR-So much has been said very receu d Y
| abcut the policy of this Department in grant.
ing acceptanCes to contractors for transport a.
| tion across the plains, that deem IL due alike
| to Congress, the public and myself, to make a
| short, plain statement of the iaets ted
| with the subject.
| at one time in the year 1s5S, it became abs }.
1utely necessary to start large trains of trans
| portation across the plains to Utah, when there
| was no available means to put hose trains in
| motion Acceptance. were given 10 coDtrac.
| tors then TO enable them u strrt, and they i'd
| SO. The practice thus begun was conciu I'd q
| good while from necessity and was afterwards
| followed 10 afford accommodation to contrac-
1 tors IN their very large and extensive work
| Their purport is TO give preference 10 The hold.
| er when flied in the Department, out of any
| moneys due 10 contractors. These accaptanceS
| have, until the past autumn, been to large
| amounts, nor has any complaint whatever
| until then, been heard thas means were not
1 provided TO meet and redeem them. There has
never been the least concealment or mystery
| about this business. 1t was perfectly known
| to all who had any interest in knowing any
| thing about il. They have been given only
| wnen there was subsistpg contract, out OF
which means TO meet them would cerIainl y
| arise, and for the execution of which there
| was an existing appropriation. They are pro-
hibIted by no law.
The issue OF these acceptances within III is
| month res ted upon the following CUnsidera-
| tons Those given for The last seasons work
| and which were held as collateral security III
| different places the contractors 95ere anxious
| to postpone until next season. iney repre-
| sented that this could be done with accept
ances, which on their face Tepreaen ted tEat tdey
| would be paid when the money they called
| for was earned By the contractors Tor next
| seasons work. the strongest assurances were
| given that this paper was oHly 10 20, and GER
| tainly to 9o, by agreement already made, into
| the hands alone OF those banks and firms W no
| then held unpaid acceptances, ana for which
| they were to be substituted, and held as coll
| lateral 10 their own obligations. The pay ac-
| cruing under this contI act for next season will
| bt more than enough to cover the amount OF
| acceptances predicatsd on 1t. To insure this
| stipulation consented TO issue paper only IN
| large amounts, and in the form which would
be acceptable, If at all, TO those who knew the
| perfect soivency of the contractors, and who
| mad already money engagements with them to
| a large amount, aud who had, as l Was in
| formed, and as / believed already consented
| TO and desired the arrangement
| If these promises and faithful engagement IS
| had bs en- performed, no difficulty could ever
| nave resulted from the TRANSACTION. 1t could
| not and would not have misled or deceived
| any one. No expectation based ON ii could by
| any possibility have been disappointed. BuJ
| the promises made HE were not Kept-were
| broken. This paper was, IL seems, placed III
| the hands of the clerk OF the Interior, VINO
| had abstracted a large amount OF securities
| belonging to the Indian trust fund. Finding
this TO be the case, have not hesstated 10 give
/ an order 10 caucel and annul all those accept
| arces. Their perversion has rendered them
| void and of no effect
am gratified TO assert confident belief tha
| no one connected in any way, directly, re-
| motely. in any shape or form, with the duties
| OF the War Department. had any the least
| connection with or knowledge OF this embez-
| element, III its inception or It's progress.
| The issue of this paper resolves Itself in 10 a
| question of administrative consideration
| alone, think AID SO regarding it, Will be
parGoned for al dFerting very briefly this
| ii pect of the subject These cont tractors have
| by 4 long series of years of faithful, homes
| and most efficient services, won the confidence
| ana good feeling of ali persons having any
| connection with the transportation tor the
| army lii the country lying beyond our West
| ern settlements. TEey had never failed in
| any of their engagements, and had executed
| many of them under circumstances OF pecu.
| l.ar embarrassment. They were men OF very
large wealth and most extensive means, and
| possessed fully the confidence of all who kne "
| them. 1t has become iatterly pretty evident
| chat but small profits, II any, were Likely u
be realized from their operations, aud this
| was put in to great danger from the recent re-
| verses in money affairs The revuisiuns which
| recently swept over the country have arisen
| from no cause which business men could be
| fairly called upon TO lake tue risk Of rney
| have been from political causes aud not from
| any viola ed law of commercial or monetary
| action. Under this evident fact, L WAS not
| UNIV ling to afford these EN- ployees OF govern
| ment any assistance likely 10 save them from
| serious injury growing out of political dis
| turoances, 1t Ihat c. uld be done without run
| ming any risk OF loss 10 government. L think
| such a course can derogate nothing from u
| sound administrative discretion. although the
| sequel has shown that such confidence has
| been misplaced.
But there is another and higher public con-
| sideration connected with the sub biect OF con-
l re for VA ms moi a and or binh
| not be overlooked with any Just appreciation
| OF good administration. Good anu thorough
| ly responsible contractors for transportation
| across our immense plains are extremely i'm
| portant persons to our little army. and diff.
| cult to obtain. There is no other service like
| II known in the world. Nowhere else on The
| globe would the idea De- entertained OF sub.
sisting an army by transporting its supplies
| overland distance of j thousand or twelve
| hundred miles, through unin habi ed vii
| derness; and yet a very large part of orr army
| Is furnished and subsisted by this means. Il
| the present contrac lors, who have so long and
| so faithfully performed their work, should
| fali or become so EN- otrasSed as to be unable
| to do their work and supply the army, ii
| would result in the loss to the United States o
avast sum OF money-probaoly million dol
| lars. But the pecuniary loss would be small
| in com arison with the risk and damage
| which such failure would subject our troops
| 10, who are stationed in the deserts of New
| Mexico and Arizona.
| Should any accident befall these men. OF
| any serious Inconvenience res u IL to them from
| the failure of n regular and certain trans
! mission OF supplies, 1t would ba difficult K
| estimate the just indignation which would bt
| heaped upon the head of the ignorant or de-
| linQu officer whose ineficieAcy had allow
| ed 1t. Trains necessary Tor the trans sportation
| 10 be performed by Russell, Maj jois, and Wad
| dell, could not cost much short of u million O.
| dollars, and would require months OF indus
| try al activity TO prepare II would be very
| clear TO any one that q wise forecast demand:
| of the Government TO sustain these eoltrac
tors by all fair and legitimate means.
have now nearly brought my administra
| ton OF the War DepaT tment TO a close, aud
| will be excused for adverting to it briefly
| There is not one branch OF the military ser
| vice which is not in perfect order, as lar a,
| any means are afforded of knowing, and the,
| are very complete. Some have been par tic u
| larly encouraged, and think improve dis
| cipline is excellent, and the accoun liability tS
| superior authority in every department coulC
| scarcely be excelled.
| Strict economy is enforced, and perfect re
| Gponsibility in all money expenditure is auC
has heen successfully carried into effect
| Within four years, since l have presided il
| TINS department, not u dollar. | believe, has
| been lost TO the Government by embe zz!emeu
or theft, and within that time sixty millions
| of dollars have been disbursed. No sS stem o.
admins tr2lon, no line of policy, l think
| could reach better results; no system OF ac.
| coun liability could be more perfect. Thes,
| facts confidently assert, aad the department
| is everywhere full Of the proofs OF them.
1 invite any investigation which the House MAY
| think proper 10 institute into auy or ali o.
my official acts. Very respectfully. your ODE
| dent servant, JOHN B. FLOYD.
| Secretary OF War.
| THE TELEGRAPH IN THE EAsT.-The Eng.
lish Government is about to complete the tele