The New York herald., 1862-01-17
THE CONDUCT OF TIE NAVY.
The Reply Of the Secretary Of the
Navy to tho Senate.
What Has Been Done by That
Department.,
NAVY DEPARTMENT. Jan. Is, 1862.

| TO THE PRESIDENT or THE SKNATx:-
SR have the honor acknowledge tte receipt Of the
| following resolution Of tho Senate
Resolved That the Secretary Of the Navy he directed
to report to the Senate the facts in regard to tho employ
ment Of George D. Morgan, Of New York, to purchase
vessels for the of the and to the
amount of compensation paid him.
Thanking the Senate for the opportunity thus afforded
lay before your honorable body and through you
before the country further and the fullest possible
formation touching matter which, from Its inception in
April last down to the present time has not ceased 10
engage careful attention and which has, perceive,
elected inconsderabe comment in both houses Of
Congress, hasten to make full response TO the
resolution which you have done the honor
to transmit l deem it proper and necessary to in
cude in my observations some reference to that portion
tho report recently submitted the House of Repre-
sentatves by a committee Of that honorable body and
by the ordor Of the House printed touching upon the
subject by only OF the consideration duo
to document emanatng from such source, but also
because learn from the debate resulting in tho adoption
the Senate Of tho resolution before that has at
tracted the attention Of several Senators.
may add that such reference by that report ap-
pears the proper by of the conviction
which entertain that Of the facts bearing upon tho
before mo, set forth alluded to
,ncntod upon in that document liable to material
misapprchonsion.
In the annual report of this department to the Presi
dent the 4h OF December last to be then laid before
Congress with the annual message, l made upon the
wio.e matter under consideration tho followi &
statement
The public vessels and the public yards In their capa
city Il construction and repair, were, however, oiy
Inadequate tho demands that pressing this
cf tho government and the department
psed to resort TO the commercial marine make go1d
the deficiency. Vessels OF ovcry class and description
promptly rendered by sellers and their agents, who
in many instances became dissatisfied when their oiors
not accepted.
lhs new necessity Of the government involving largo
expenditure and the purchase OF suitable vessels
orant responsibility and the task oi making suit
abic arrangements 10 insure the prompt and systematic
purchase the best and most reasonable terms for tho
government, OF i sc number OF vessels most suitable
its use, attended, by peculiar diIculties ami
ceivcd mature consideration. Tho purchase M ght be
dix oc,ly by tho department. by boards OF officers
uder its control the principal ports the " sscs
10 be bought, and espec tally AT tho great central
poiil of supply for such demaId-the port OF New
Yo.k.
trial disco cd serious objections. 1t manifest from
the first that the department. charged suddenly with the
Organization and supcrinendcnce OF new and auuuts
val operations or large scale III aa ton to ITS current
business, could not possibly itself devote the
details OF each OF purchase the time attcn
on neetul fully to project tho interests OF the govern
mcnt II equally Clear that boards of officers, acting
in mere mercantile capacity, new to them, ami for
which they had neither been practically trained pro-
fessoraliy commissioned. would DO subost TO great
embarrassment and disadvantage in thor dealings with
sellers OF shs and professional ship brokers
Suddenly pressed by .ayy AMI ps emptcry demand.
Yet the department could rely. and did rely, Vita the
fullest confidence upon tho professional and
ability Of its ordnance officers, al CONSTRUCTORS
and engineers, oil acting under the responsibility
OF their commissons, to investigate and doter.
nine the whole q eston Of the adaptation, In all
respects each ship offered and OF its capacity by
alteration fully adapted to perform tho partcr
required by the cove. nment. This work, with tho
responding authority OF selection and oection ali
vessels therefore exclusive committed to boards
consisting each OF experienced naval constructor and
engn and ordnance officer, convened and stationed
for the purpose at New York, and the other lrnc
pal ctas. The mercantile part Of the business
tho making cf the best bargains poss bic for the
government in each casc with tine aycrtng all in
tervestion o third parties which might emblrrass tho
attainment of that resultwas iered by the govern
he placed most properly in the hands OF
camille agency OF gh ana established character os in
,egri;y experience ard capacty Obvious reasons Ia
Guiding the nsieration that it is individual responsible
lily wich ays iet most kcenly, and that several
agents all acting separately for the government at tho
same places would necessarily compete with each other
its disadvantage in the market, indicated that this
agency should be rendered 10 a single, properly
qualified Individual upon the distinct understanding
that he should devote his whole time. atteaton and
ability the work; that lac should In any
chargc against the government for his service that he
should deal always directly and exclusively with the
OF the tssels purchased, thus permitting
brokerage fees, agents COMMISSIONS, between himself
and tho and that, finally, his own commission,
payable always by the seller, should IL no case exceed
tile regular cantie ceniage nxed by the Chambcr
OF Commerce OF New York, ami established by the
tom merchants in that city the rgnfu and leg al
Of remuneration for such services rendered BY ony
acting between tho sellers and purcbas OF YES
| sells
The agent thus selected merchant who had been
connected with OF tho sGccnssul ana
numerical firms this country-a gentleman of great
business capacity and of the most scrupulous
questioned integrity. Renquishing all private engage.
mens and withdrawing from all business connections Of
every description this gentleman has devoted his whole
time and energies with unirng fidelity to the service
| of tho department and the country.
By the system thus adopted the very best vessels in
the commercial marine have been secured Tor the naval
at moderate rates. and to the great advantage OF
the government 1he pursued In these purchases
has cxtempozed navy At loss cost to the government
is believed than that required for the construction of
the equally servccabe vessels; and question
which at tho was one Of embarrassment
difficulty, has boon disposed Of and IN particular
| has the country been better served.
Suboned IL statement from the purchasing agent at
New York, with schedule giving the name, tonnage,
price demanded, and cost actually paid OF every vessel
that has boen bought by him. and also Of oil added tho
navy since the change Of administration in March last
There abundant to congratulate ourselves that
such demand. In such crisis, we were enabled 70
make speedy and 80 large an acquisition 10 the avail
service, and on terms 50 economical to the government
In this portion Of my annual report, including the
port Of Mr. Geo. d. Morgan, under the dato Of 10Th
November with the schedule Of all vessels purchased by
him that date, under my direction, with the prices
demanded and the prices paid (copes which letter
and schedule enclose in this alton 10 the
snatc intended to lay before Congress exact nforma-
of the action Of the department the purchase OF
vessels required by the urgent necessities Of tho public
service the grounds upon which that action has been
taken and OF its results.
well that the presentation Of such state
Congress before had beon asked for was not In
conformity with tho established usage similar casos OF
the executive departments but according TO my ideas Of
public duty, and my inclination In its performance,
tho earliest proper moment too soon for a
full and spontaneous exposition Congress and the
country by tho Secretary Of tho Navy his views aud
proceedings in such matter and II my statement in
consequence of the promptness with which prof
fered shall be found to have received In any quarter
from Congress- under the pressure Of other business
careful consideration In all its details than might per
haps have been granted to IT, IL it had boon Withheld
until regularly caod for now reproduce IL with perfect
reliance that by the justice and wsdo Of the senate
such misfortune on my part will be fully retrieved.
THE Foley or rnE DEPARTMENT.
The Senate will perceive that the policy Of the depar
mont the purchase Of vessels above set forth en-
braced four cardinal points,
FirsTbe previous thorough examination and test NJ IN.
vessels by experts professionally educated
ed, and specially detailed for that duty
SeoondThe negotiation Of purchases Of the yesses