The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1862-02-08

'of the 9th instant, relative 70 the emplovmer
Of George D. Morgan, Of New York, to on
chase vessels for the Government, ask leave /
report: ~ ~
That they .have given to the subject that car.
ful consideration which its important chhracte
seemed TO demand, and they submit the resul
OF their examination to the Senate By th
letter OF the Secretary the Committee and ID
Senate are relieved from all embarrassment 4
to tho evidence Of the transactions under con
stderation, - the facts are plainly stated by th
Secrstary. who, without endeavofing 70 conces
or cover up any Of the prominent features o
the case, claims 10 his letter that Il is ! matte
Of prdtse rather than censure, that HE conduc
was ds failtful Jislf1n,est of his pa,Slic d.sv
and Mr. George D. Morgan, the agent employed
! and who admits In his letter to the Chairman o
the Committee on Naval Affairs in the Houee a
1 representatives, which the Secretary Of tn,
Navy adopts and makes part Of his report 4
the Senate, that he has already received sevent,
thousand dollars (e70, ,0OO) for the brief perioS
Of few months in which he was employed. and
soiemniy declares, upon his character and respon
| sibiltty as a merchant and man of business
that he regards the system adopted by the Sec
retary - wise, and, II faithfully and we'll car
r'ed out at this time, highly conducive to the
public interests. II this be true, and the tran
saction deserves praise, and Is tue faithful ful
nlment Of public duty. and. il faithfully and
well carried out, highly conducive to the pub
lic interests, then Il ought to be incorporated
into our ordinary and reglur mode Of furnish.
Ing supplies for our army and navy, and exen.
ded to as many branches Of the public service
- possible. iaa9al sF 80 8
TEE QUESTION or coxrrssAr1os:
In order TO form proper estimate of this
system 30 much lauded by tho Secretary and
his agent, let US see. in the asst place. precise.
~ what It 10. The Government proposes to buy
large number OF vessels, and employs an
agent TO purchase them, allowing him to re-
ceive from the seller two and half per cent.
on the price paid for each vessel-in other
words, one-f -fortieth Of all the money paid by
the Governments for each and eyery vessel
bought ia paid to the agent thus employed.-
Thatis the contract. fairly stated, in brief and
simple language. If the Secretary had not
raised the question 1t could hardly have admit
ted OF doubt that this compensation is wholly
and exclusively paid by the Government from
the public treasury. But the Secretary labors
under the halluciuation that this money does
not come froYfhe Government, and admits that
It 1t did, or il his agent had been paid BY
liked salary or percentage, however moderate,
payable BY the Government, it would uuoues.
tionably have been q violation of law. His Ian.
guage is-"Law has not been violated by the
establishment and operation of the system. as
it unquestionably would have been If I
had appointed mercantile agent to do this
work at fixed salary, or at q percentage. how.
ever moderate" 4
/ As the Secretary of the Navy here admits
that If this percentage had been paid by the
Government, the transaction would unquestion.
ably have been q violation Of law, your Com
mttee ask the attention Of the Senate to 4 brief
examination of that question, if question il
may be called.
To the minds Of your Committee nothing can
De palmer than that every seller fxes the price
OF the article be proposes to sell by reference
70 the cost OF the same up to the time of the
SALE II the vessel, for example, has to be
brought from one place to another before the
sale is completed, if tax is levied by the Gov
ernment on the sale. or If percentage is paya.
bic to the State or National Governments. or to
any one else, on the amount received for the
vessel, can it be necessary to argue the propo.
sltion that the cost Of such transportation, or
the tax, or the percentage, is considered BY tie
seller in fixing bis price, and 10 pail BY the pur-
chaser! Mr. Morgan, it must be remembered.
10 every instance in which he made purchase.
informed the person of whom he proposed to
buy, that two and half per cent. on the sum
paid must 60 to him; and it appears to your
Committee to be an impeachment of common
sense to pretend that the seller did not include
that commission in the price for which be con.
sented to sell. The gross amount for which the
vessel is to be purchased, including that which
goes to the seller and that which Mr.. Morgan
retains in his own hands, all comes directly
from the Treasury of the United States, and no
part of it from any other source !; and IL IL inn
possible for your Committee to conceive how
the most ingenious and subtle sophistry can i'm.
pose upon the simplest understanding tho i'm.
preston or belief that the United States does
not directly pay this money.
MERCANTILE CUSTOM.
1t is claimed that this arrangement ;s in ac.
cordance with the usual mercantile custom
However that may be, and the committee will
say something of that hereafter, your commit.
tee are OF the opinion, In the language of an
eminent and highly respectable gentleman of
New York with whom they have had occasion 70
correspond, that the making government agent
for purchases dependent upon the seller for his
compensation, and making that compensation
dependent upon the extent and costliness of his
purchases, isimmoral and corrupting, and tends
to extravagance, to collusion and to fraud"
Human virtue is frail enough when surrounded
by all tho Inducements to h0nssty which can be
thrown around it as safeguards, and accordingly
Il has been found to be the wisest policy In he
conduct Of the ordinary affairs of life, as far a.
practicable to make duty and interest to coin.
eide; but BY this system of the Secretary di.
rect pecuniary premium Ia offered to dishonesty
and treachery. Instead Of It's being Tor the in
terest Of the agent carefully to guard md pro
tect the rights and interests of the governme mt
for which he acts, and to purchase the vessel
for the lowest price at which she can be bought,
he has direct pecuniary interest in paying the
largest possible price which the seller can, with
any show of decency, demand, and thus bis in.
terests are brought In direct conflict with his
duty. ss'
Now, although Nr. Morgan, with the seventy
thousand dollars In his pocket, AYERS upon his
character and responsibility a. merchant and
q man of business" that this il "a wise system,
and if well and faithfully carried ont at this
time, highly contiucive to the public interest,
yet it unfortunately happens that th he universal
judgment of mankind Is Of . very different
character. Thus no Judge or juror 10 allowed to
sit in case where ha has the slightest pecuni.
ary interest, and lift were known that referee.
arbitrator or umpire between two parties was to
have his compensation dependent upon the
amount which he should adjudge the one party
TO pay to the other, all men everywhere would
join in denouncing his decision a, II not dishon
est and corrupt as least unworthy of any conR
dence. The proposition that one man sheuld
act a agent for another and have direct pscu.
mary interest adverse to his employer. and
prompting him 70 make large purchases at high
prices, with his compensation constantly incress-
ing in direct proportion to the number of his
purchases and the extravagsnce OF the prices
which he compels his employer To pay, seems to
your committee to be propagation 20 monstrous
as TO require no argument to demonstrate it, In.
expediency and its immortality.
Al the time this arrangement was made there
were many other things Of which the govern.
ment was in pressing want, Is well a. vessels,
such As horses. beef cattle, &C., and If the sys,
TEN adopted BY the Secretary Of the Navy ior
the purchase of vessels were wise and a faithful
discharge of public duty, why would it not
also be proper mode Of purchasing horses
Yet what would have been said il an agent had
been employed to purchase horses, and to 70.
ceive 20 compensation for lis services . com.
mission Of Two and shalt per cent on the amount
be should pay for themf Does net sysry one
perceive that such an arrangement would have
been an invitation 70 fraud and premium upon
dishonestye And your committed are by no
means satlahed thai Just such consequence Il