The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1862-02-08
Secretary WcIies, Defense.
Report Of III; Senate Nauai Commhte; on
Doc,n:ent-1hsy hoid that Hr. Gemgc
Morgan .N,,t Gire ~ his $4,000

I2su5rt Of lie Senate Navai Coumittee on III,
Docunent-1hsy hoid that Hr Gewge II.
Morgan .H,,st Gire up his &7oo 900
Senator Hale has read before the Senate
a report of the Naval Committee on the
letter of Secretary Welles, concerning the
| appointment of George d. Morgan, Of New
! ork, to purchase vessels for the navy,
/ The report says it is in, possible for the
! Committee to conceive how the most in
senious and subtle sophistry could make
/ 1t appear that the compensation cf Mr.
Morgan came from any other source than
/ the Treasury Of the United State. They
say that the making a Government agent
for the purchases dependent upon the
seller for his compensation, and making
that compensation depend upon the ex-
tent and costliness Of his purchases, is
immoral and corrupting, and tends to
extravaganza 20 colluson and to fraud
| And although Mr.. Morgan, with $4,000
in his pocket, thinks it is a wise system,
it unfortunately happens that the univer-
sal Judgment OF mankind is of a different
character. They ask, if the system of
paying two aud a halt per cent TO gov
ernment purchasing agent On the price
would not be proper in buying horses
/ They submit that the very announcement
that an agent was III the market to buy
vessels for the Government, and that he
was to be paid two and & half per cent on
the amount paid for the purchases he
might make, would suggest 10 every seller
that here was rare opportunity, where
the interest Of both buyer and seller united
IN fixing the largest price that could be
demanded and paid without shocking the
moral sense IF the community.
The Committee do not attach much
weight 10 the certificate Of Mr.. Samuel l.
Mitchell and several other gentlemen,
who have given to the Secretary of the
Navy certificate that these vessels have
been purchased at lower prices than
have usually been paid by The Govern
meut,' especially as it apl ears from the
report Of the Secretary Of the Nayy that
more than four hundred thousand dollars
($4UJOCU) OF the amount d>bursed hy Mr
Morgan was paid to the firm Of Samuel l.
Mitchell 4 Son.
They say that two and a half per CEN.
instead of being - stated by the Secretary.
the least pos> >i5!e expense or charge, Is tie
very highes; ever sanctioned or recon-
meuded by the Chamber Of Commerce
They have no doubt that there are and
have been numbers Of patriotic merchants
in New York, eninently qualified for tue
duty. who would have cheeriuliy perform
ed this work for the Government without
any charge whatever Bat the committee
repud ate the entirely the idea that com
missions on sales, or purchases. 5. or dis
bursements, constitute t PROPER mode OF
compcnsluH- an ciLcor or agent Of the
Goveramen: ioc L.S service.
When purchaser employs broker to
purchase a vessel for bIm, it is for the
Interest OF the principal to pro-uge the
vessel for the lowest price and il would
lie the height OF absugdity, in such case.
for him to make it for the interest OF has
own agent to te unfdi,htul to him. and 10
compensate him most E5erally fcr buying
at the highest rate.
The committee therefore conclude that
the seventy thousand dollars Of the puGlic
money now in the hands of George D.
Morgan. in equity and good conscience,
belongs to the Government and not 10
him, and should at once once Lo restored
to ,I.o s.-s:osas.! troa0t.rv, and such reason
able compensation for his services paid TO
him a. justice may require.