The Placer herald., 1862-03-08

in connection with the Roman This was done,
and the name of Mr.. Thomas thus appeared as
that of purchaser and his checks were given for
the pay. The ship William Badger was purchas-
ed Tor $4,000, in Il similar manner, by Starbuck.
in the presence of Thomas, who accompanied
him in this instance; but the bill of sale was
made out to Thomas at the request OF Starbuck,
and Thomas gave his checks for the amount
From the testimony Of the cashier of the bank on
which these checks were drawn. it appears that
Starbuck placed to the credit of Thomas, in the
same bank, sums corresponding to the checks thus
drawn by Thomas in payment for the vessel on
the same day the checks drawn; indeed.
Thomas himself reluctantly confessed before the
Committee that Starbuck paid all the money for
these ships to Barker. and that he had himself no
interest in them. lie Immediately transferred
the ships in blank; yet both Thomas and Starbuck
made affidavit ut the Navy Department, that
Thomas sold to Starbuck the ship Roman. tor
81 400, and the ship Nm. Badger for S7.l5O,
and that Thomas was the bona lide owner OF SAID
ships"
The af1davits of both are published, and are
given as a fair example of ''strong swearlng."-
From the affidavits it appears in the language OF
the Committee, "that the Government paid Star
buck $4,000 for these two ships. for which. while
acting us the Government agent, he paid only
S650O.' Starbuck 'on the make" lie
swnded the Government with u boldncss truly
refreshing probably thinking his devotion to the
Chicago Platform would screen him from eX-
pOsurc.
Next in order comes Morgan's swndc. The
committee treat him cndery on account OF his
connections and their igh standing in the Re-
publican party-his brother and partner being
Governor of New York. and his brOther-in- law
Secretary Of the Navy He purchased the Stars
and stripes. which had been atloat less than two
months. This vessel cost its owners but $50 900
to build her, had earned. under charter to the
United States. in that two months, $4,000 net.
IL Ear ffIIh hI,1
Thousand doVarS. The committee thus white
wash Morgan:
Mr. Morgan was made to believe that it cost
100000 to build her. 1t is difficult to see how
such a deception could have been practlscd upon
IA man of the acknowledged business capacity and
shrcwdness of Mr.. Morgan. except that he had
been called to il service in which he had no cX-
periencc and was ignorant. from any personal
knowledge. Of the cost Of the article he was sent
to purchase
This is lame excuse. Why then. when his in
experience and ignorance were discovered, was
he not discharged? 1t to his advantage to
pay an eXorditant price for the Stars and stripes.
and his subsequent acts prove that he was more
solctous to serve himself than Government. He
received Il commission OF two and half per cent
from the Government for making the purchase.
and like commission from the parties from
whom he purchased! This species OF avorltciSm
and rascality struck the committee rs very rep
rehcnsbe. ana they protested against it. as the
following shows:
'Whcn this testimony was taken. information
Of its cXtraol dinrry character. and import was
communicated to the department. in the hope
that an abuse giAring. when pointed out.
might be corrected. Yet. Notwithstanding the
department became thus possess II OF the lnior-
nation that its own aGclt was. by this system OF
c, mmis>ion, amaSsng private fortune. the com
mittec have been surprised to learn from a recent
,I. 1
uishinc them with the number and prices Of YES
s,lS purchased by Mr. Morgan for the Govern
ment. that the cost OF those purchased by him.
since their protest. amounts, in the aggregate, to
the sum OF Sl13G.992.
He IS still retained Notwithstanding his mex
pcricncr and ignorance Of the business lie still
draws his two and ahalf per cent. commission
and purchases worthless vessels at double the
price they are worth. althou Oh abundant evidence
was presented before the committee to show that
there "would be no difficulty in obtaining man
with all the qualifications Of Mr.. Morgan, and
superaddcd thereto all the experience necessary
to qualify him for those particular duties Tor
S5 900 year" 1t matters not how enormously
Government may be swinded so long as Morgan
makes money by it. Morgan makes both parties
pay him, and the committee justly say-"That
system of payment to our agent, which makes
his interest identical with that of the seller and
antagonistic with that OF the Government itsell
whose agent he is, aud which says in effect to him.
Pay $4,000 more than a ship is worth, and
$3.50 shall be the reward of your nldelity, has
no foundation in either common sense or COM
mon prudence"
We have room but for Olc more extract from
the report of the committee The whole report
eleven hundred pages-is filled with fraudulent
transactions Of Government agents and conlrac-
tors Here is a pretty heity one:
"ln the month of June last, Arthur M East
H. ,>rI,, IL
of the Ordnance Bureau five thousand four hun
dred Halls carbncs. at SO so EACH and after a
| slight alteration of the arms. at cost OF from
| rs cents to 81 25 each arm, sold five thous
and of them to Simon Stevens for S12 so each,
who Immediately sold them to General Fremont
for S22 each.'
The arms were sold privately and without in
viting any competition, and sold. too, for an al
most mnal price. at time when arms were
in such extraordinary demand that our Govern
ment was purchasing at high prices, arms re-
3ectcd from tie service OF different European ma
tions sold to Republican to reward him for
party services! The sale was made by the order
of the Secretary of War They were sold by
the Government. for three dollars and d-hdD in
June and bought back by the Government, in
July, at hUcnty-t,co doIiars, after having been
repaired at an expense OF one dollar and a quar-
ter! A profitable operation for the patriotic
Eastman and Stevens The committee inquired
"I1as the War Department been aware OF tnls
state of things?'
"Answer-Yes | have repeated it to them.
have represented the state of things more than
once to the Department, and have asked them
to constitute board of purchase"
No notice was taken by the War Department of
the representations and suggestions of Major
Hagner nor was there any effort made to put
stop to the frauds. The Philadelphia inquirer
in commenting upon the report of the commit
tee says: st should be read by everybody. and
be circulated and republished everywhere. In
reading it, words of burning indi gnation spring
instinctivey to the lips. Upon all matters con
nected with the purchase of supplies for the
army and navy treated of in this report. there is
visible and reeking through every line the shock