The New York herald., 1862-07-20
INTERESTING DEVELoPEMEETS.
Testimony Before Congressional IN
yeStigaiiag Committees.
The Way Vessels Have Been Purchased
and Chartered.
HOW GOVERNMENT CONTRACTS AgE MADE,
Ac.s &e., aes


charter and purchase for The government
submitted an additional report, from which we take .hs
following Interesting points Ft e,
7us PURCHASE ASD CHARTER OF yrssvrs
In report herctocre submitted 70 she Honse, the
committee had oscasion TO cali attention TO condemn
the unwse and perncious arrangameut entered ny
the secretary of the Navy with George D. Mp.gln, by
which agent Of the government was permitted take
his conpens aion out u the money paid tho govern
ment for hs vessels the shape halt per
cent commission upon the purchase moIey the com
mittee recommended that occasion the adoption by
the House OF resolution condemnatory OF the employ
ment OF such persons, which was subsequently, nuani
mously adopted in token the OF the House
In the report OF the committee Clon that point.
The example here BY the Navy Depar men; in this
regard subsequently followed Ia other branches OF
the service; though after The condemnation with which
ITS adoption by the Navy Department. met by the
House and the public il secretly pursued and
diihcult OF detection, and at the same time
fragrant il possible and injurious u the public interests
The War DspaI tnent, uader the administrator oil It's
hate Secretary had occasion to purchase and Charter
large number Of vessels and TO expend upon such pur
shase charter and subsequent outfit great many mil
lions OF dollars. These expenditures are still going oa
s therefore, inpossi bic for the committee give
anything ike proxm.e estimate OF ths uhols amount
John rucKEg's APPOINTMENT
As the. War Department entered upon the bus
asss OF procuring vessels the chief agent selected
effect Mr.. John Tacker or Pennsylvania styled
"Generai Transport Agent Cf the %ar Department
who, according % his own statement had, Up t. that
time never mad The slightest experience the building,
purchase, sale, command or sailing OF vessel. What
Qualifications nttng HIM for responsible
y. .
revealed by subsequet experience, the committee have
been unable 10 ascertain.
Mr.. Tucker charged with this duty
than suoagents a. agents Of sub agents. or persons
protesting act such, appeared Philadelphia, New
York, Boston and ,her places where ships were Tor
sale or charter each holding oct that through him
cusysy in the !ocai iy where he appeared sales
charters 70 be effected. Strangers IN the community
In which they APP cared, Philadelphia man in Boston,
or Boston IN New York they were wont to gvo
that by sort special indulgence, men of that ocs
hty permitted elect sales charters provided
them
These men took the liberty to reimburse themselves
for their in this mission by charge OF
two and half 10 i've per upon purchase
money entire charter money to be thereafter earned
by the vessels thus secured. One Of these
peared in Boston on brief visit Of a week eut!rs
stranger to the men with whom he bad to deal the
market which should govern the price, and Of the
purchases charters thus secured by him. secured
also 10 himself Tor his weeks work. according the
estimate OF The men with whom he dealt, ths sum OF
$4,000.
OPERATIONS RUssxrL sIURGis.
Quartermaster, now Brgadier General, Saxton, hav-
ing been sent u Aew York TO purchase and Charter yes
seis, found the advice OF personally acquainted
with the quaity. capacity and worth q the vessels he
about engage tor the govs necessary
proper discharge OF his duty and accordingly engaged
upon the Recommendation OF Colonel Tompkins, OF New
York thai service Russell Sturgis, of that city
formerly Of the Pilot Commissioners. Mr.. Sturgis
undertook 10 advise and aid him the selection of
sells for the government and inncdiaey without the
knowledge Saxton let his services also those hav
ing vessels t. sell or charter 70 aid thom III inducing
Saxton TO purchase or hire their vessels.
in bayng ana Tor the owner IN selling, Mr. Sturgis met
with difficulty IL dining the vessels whose quality
capacity and price such TO warrant his adv
the 10 take thcm and he ~ bs
ldered by the owners remarkably successful IN
securing safes and desirable charters and by the
quarter equally successful IN 1ndAg such
ses as he could recommend TO the government. Mr.
Sturgis relied Tor ensa.ion entir,iy upon commits
sion upon sales and cha ters, varying rom two and hE
to five cent, depending amount the
with which his efforts attended in bringing TO the
notice OF the quarter the good qualities Of tn,
q Added 4
was wholly Incompatible with fidelity, and could not
prove otherwise than dscterious TO The public service
Charters enormous and the character aad capacity
OF the vessels il many instances Inferior. The price
usually obtained for charters Of vessels under these cir
cumstances, such, as general rule woad pay for
the vessel itself in seventy days, and he who failed TO
get charter advantageous .nis thought have
nads poor the facilities which the government
itself had Afforded Linn II due TO General Saxton to
that the fact that Sturgs acted In the interest Of
the ship owners at the same time that he was acting as
his confidential adviser was kept entirely from his know
TWO srEAxsHrp CONTACTS
One OF the first purchases of Mr. Tucker OF vessels for
the government, alter he became General Transport
Agent Of the War department. was the purchase OF
the two steamers, the Union and the Winfield scott,
Philadelphia Tor 100000 each These
were new, buit by NeaIiie Levy, OF Philadelphia or
ton wh ,nas ardad IL ss Ga between q Csssr
Keys and Now Dreams The Winfield Scott at
first called the Constitution The road became largely
In debt Marshall U. Roberts, OF New York for
money advanced and when the war broke out 1t tacd
aud he without security. except such as he could
boats then finished and Mr. Roberts aided ia
completing them, with the expectation OF ultimately
realizing something from them, alter paying tbs buders
upon his debt against the road The boas were Of pccu
liar and construction being OF light structure
and built part Of iron and another the upper part OF
wood All the work above the lower deck OF wood
connected with iron bottoms Engineers distrusted
them 1t thought they would break apart where the
wood and iron were joined They were pronounced by
experts totally unit for service The title stood
the name OF Nesiie Levy, ana no other person
Enown department. hsvng any interest them.
Mr. " Ia
vessels 70 the Navy Department. and advised their pur
chase Of Nsaiio Levy The Navy Department, upon
this advice mendstion caused them to bc
amined By experienced naval CONSTRUCTOR and subse
queny to be duly surveyed by board appointed for
that purpose lhs former reported them not fit 70
70 the Cuff the latter that they were "sntreiy unit
for naval purposes"
Of these reports was, according to Mr. Az
ststant secretary Fox communi Gated Mr. Roberts
And Mr. Tucker admits himself that he has known OF
this examination because OF these reports the Navy
Department refused to purchase boats Subsequent
iy, and before he was himself authorized TO purchase
nsadsa Mr. tucker mad advised tho purchase OF these
boats by General Megs for the War Department. But
he declined, because there was then NO necessity for
their purchase When authorized 10 purchase vessels
and as soon as necessity os them Mr. Tucker
with this ledge tbs character Of these vessels
nevertheless purchased them Of Mr. Roberts for 500 900
each. Mr. Roberts has given the actual cost Of these
vessels az follows
Lien on the builders s.....................s 500 600
Paid by Mr.. RODorts Tor portion Of the ma
chinery 10 Dickinson < Skies. 1900
Paid by him for plans and models 1900
PAID by him for experimenting the completion
on the ......................... 5000
Paid by him .or conting gencss s.............. 0O0
whole cost Of vessels. ..................sl SIN 900
II would thus appear that the paid for the
two vessels $50 600 more than their actual cost.
ther and far moro serious loss 70 the govern
msnt occaspnsd by this III judged purchase These
boats were immediately loaded with provisions and
stores for tho troops at Port Royal and ono Of them the
Union foundsred and sunk her first voyage the crew
alone barely saved the ship and all the stores were
atotal loss Ine other was 50 badly damaged on her
voyage be barely able 70 reach port, with much
loss of freight and there condemned by board OF
survey As useless THIS peril Of lite and OF property
the rst fruit Of the OF Mr. Tucker known 70
those who employed him for his important and re-
spensibs trust to be totally destitute Of all knowledge
90 say the least OF the business he called usoa
90 perform. or the same character with this transac
tion was the purchase for the War Department OF tho
steamer Governor after bad been cofdemed the
Navy Department as unsoaWorthy. She went down on
her first voyage 70 Port Royal and all board but the
lives OF her crew, lost mo crew reached the coast