The New York herald., 1862-01-17

Navy Yard to which he was attached; aud the
sity Of q rapid augmentation OF the navy pressing
earnestly on the department, on tho 10th OF July
ordered Naval Constructor Pock to repair TO New
YORK: and give ri, exclusive attention 70 % tns s sa
was associated Commander He ordnance officer, and
Chief Engineer Kimba the three constituting board to
examine and decide the capabilities OF each and every
vessel offered, and its adaptation to naval service.
Mr. Morgan was employed to negotiate and make pur-
chases after tho board had decided on the Qualities the
vessel His purchases first restricted TO New York.
but subsequently included the ports Of Connecticut This
briefly statement OF the facts connected with the first
ment and adoption OF that system under which almost
all the purchases that In short period aided in creating
navy have since been made. 1t constituted part
OF his duty also to investigate ard certify the titles
and to guard the public interest in that particular
and TO take charge also Of all the furniture and
property transferred with tho vessels he purchased He
was also employed to dsembarrass and relieve the de-
partment from some unfortunate arrangements made by
the distinguished naval officer who was first authorized
10 procure vessels for the In single transaction
originally made with large shipowner by Commodore
Beese for Ave valuable steamers felt that the govern
employed to relieve the department. Under many and
great culties he succeeded In saving the govern
men by his action 10 that transaction alone hundred
and twenty -four thousand dollars II is not necessary
that should recaptulao in this reference each 0f the
many details or similar successful operations for the
government. But may add that not vessel bought by
him has turned out badly, has Of them, though
severely tested been lost Our naval officers speak Of
them in terms Of high commcndation:
OF course tho moro purchases that were made the
greater tho aggregate Of commissions whether the
missions received by ono or more agents Bat the
brokerage Is incident to the tansactons the trans
actions themselves Each case Of purchase indepen
dent Of the other and tho question has the
got fair equivalent for its money in every instance am
satisfied that such is the fact In every instance where Mr.
Morgan has been permitted to exercise his Judgment
that all Of his purchases have been udciousy and
mcalIy made: that his cOmponsaton in has ex-
ceded tho rate established by tho Chamber of Commerce
that II has always bcon paid by tho seller, constituting
part Of the bargain in amest every case that in many
C.e mi ha Ia
that full brokerage not paid and finally that not
single dollar has been paid from tho Treasury to Mr.
Morgan for his services he having always given to the
government the full value in ships OF the money paid
his purchases.
While preparing in the midst Of my currelt dsiio,,
ceved from Mr. Morgan in New York, copy OF letter
addressed by him to the Hon. C. sedgwick, Chairman
OF The Committee on Naval Affairs under date OF 4 inst
in reply to letter Of inquiry upon this subject ad
dressed to him by that distinguished gentleman. Upon
looking over this letter Of Mr. Morgan written without
any consultation with mo upon the subject adopt its
statements in regard to my own action IN the case as en-
tirey Inever entered into any arrangements
inform him Of my purpose to employ him or any other
person permanently in that capacity On the contrary
hold myself perfectly free 10 employ any other person
when in my judgment the public service might require
me to do imposed upon him, whenever employed,
the conditions which ho states paid him salary and
no commissions and limited him to the Of broker
age from sellers fixed by the Chamber Of Commerce.
1hus il required to report the amount Of compcnsa
tion paid to him" by me from tho Treasury, must
amount Of compensation he has received in the form OF
commissions from the sellers Of SHIPS urchasod by him,
answer that fully believe 1t to be stated by him in
the following letter which make rart OF this my
port the Senate, it being as personally know an
authentic and correct statement Of the facts in regard to
tho employment of George ID. Morgan Of New York to
purchase esseis and also to the best OF my knowledge
and belief to "tbe amount of compensation paid TO
him., and upon this latter point and upon any other
point in this letter requiring in tho judgment Of the
Senate further cucdation, concur masking the fullest
in tho most solemn and stringent FORM
oEoRGx D. MORGAN CHAIRMAN HOUSE COM
New YORK, Jan. g. 1862
HoS. CHARLES b. sTpcwIcK CHAIRMAN or TIE COMMITTEE
sin-n reply to your letter OF tie 18th ultimo requesting
IL yV % % s
count, and under astruetn CT, TIE Navy Department
DS % b"s but e ansi ask Jour ad in any
foim IN viii You may see fit TO give t. in procuring the
an Of ,es transactions, to .e end that the Committee on
have c'Inrletc kntwirdge Of the Whole subject.
wholly ,h S nsxs Prsv,ssSS
the duty OF purchasing " ssels for he government
leokne {, my employment as he permanent agent tho
Navy Tor the purchase Of vessels hs ever been
INTO ~ e and OF course no such or ar
IHriy in Nav last oeved directions from the Navy De.
rarncnt rccharer vessel which then Ia the
roymsn of the eovernmen rnecr charter OF $ioO per
ti nothing more Tor account OF the government during
was next directed the June purchase two old
whaling ships at price exceeding six TO seven thousand
then hnppt ned to be sent from tie city the two ships.
s o snSs5 Ssn the pa
selected by him. and without any participation ty me In the
On the 18th June requested by the Navy Depart
to on Ia; = n S@ua or pSsSs;s as
The and to r. r. the & same anne 70 o c0m
purpose OF making due inspection Of the ships before any
charter purchase should he completed
the coanccu and he Rhode isasd They We're iGen *:
snined b Commodore Paucing. who gave his written
So IN by Sasa snd Cb
er GIr M and aT 5er favorable rels and The
pr,sioasly ri made Known by me 10 the department
Up the reeha,ter made by me early in May. ss be.
ships last mentionet, charged received IRON
iha ha x usual bses ." W ,s and f
per cent being the only commiss'on pail upon that
In my iudemt the rccharter and two purchases
ali Of so
the gs June ssN .Ss NV me to
purehase "a coniersnce Sh Comlnoaeres Brssse aud
ussd 1" a. coal vesses, and aso for Sioeksans pur.
tho o In tho & ihs s d.ans in sSr s"
ton hrosss % ohGT as IN IN which , and Ss not pSa
paid TO ON Three OF these vessels purchased The
5 ps 'S aScn a won BE-
ean, for me acting ior the to bid at ,a, puSe
suitable person known large purchaser Of ships
inqu hing to him the whole amount Of The regular cons
upon that purchase. and making claim for sny part
OF II myself.
date the 18th June transacted other
bus for the curing period OF sn
this time fully supposed that gency
for the such ransacti0ns had rnaly
mated. But the 10Th of July received letter tiom the
stating that Naval Constructor Pook had been
o deed ~ New Yoik to eAsmine sail and yesses
with their purchase the purposes of TIL govern
nont aud requesting me to consult with him and give him
lion such suitable vessels might b. obtain
able and with his approval, and after thorough
ination aud approval by the Chief Engineer and by
O. pert need urdnsnee Officer. 10 purchase barks
from toms suitable carry guns; rropcers
light draft Eve ferry boats like the Brooklyn
ferry boats side wheel OF
OO0 LOO each. The barks bought within
after the date Of the order and In pursuance It's
terms IL exceedingly dcult TO ind the required
Der OF propeers suitable the service named and
iho7h my best efforts were given to this object, this
September. The purchase Of the FIVE ferry boats
was postponed by order OF the department. and two
Size. wheel steamships were purchased alter careful
Ing after Inspection By Assistant Secretary Fo, and
70 male further purchases Of similar vessels and this order
Of instructions Of The Navy Department. or in CONSULTATION
th Its chief officers who the for that purpose.
After the order Of ,he 18Th ofJul received special d.
telegraph make further purchases OF Of various
characters within prescribed limits number and grade
sometimes with direct specifications of the particular