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

chase Of the stesmship Alabama, where the pric
asked was ono hundred and twenty thousan,
dollars ($l20,000), while the price paid va
only twenty-three thousand dollars ($23, 600
thus showing saving to the Government, in th
purchase of this single vessel Of small value, o
nilety.seven thousand dollars, CO.., ,000)l
From these statements taken from this tabl,
your committee with confidence appeal to tn,
Senate and the country to Judge whether it va,
made in honesty aid good faith, with view o
stating fairly what were the actual pricss de
manded for these vessels, or with the false snt
fraudulent Purpose of holding out to the Gov
ernment and the country the idea that such vas
amounts had been actually saved to the Gov
ernment BY the agency Of Mr.. Morgan.
NIB. AIrcHILL.
Nor do the committee attach much weight K
the certificate of Mr.. Samuel L. MitchiiI ane
several other gentlemen, who have given to th,
Secretary Of the Navy certificate that thes.
vessels have been purchased at lower plices, no
than the vessels were worth, not than the usua
market prices at the time, but "at lower prices
than have usually been paid by the Govern
ment"
Neither do your committee place especial con
ndence in the judgment and opinion Of Mr.,
Samuel l.. Nitchill in this matter, when it op
pears from the report Of the Secretary of the NayJ
t$4OO, ,OOO) Of the amount disbursed by Mr.. Nor.
gan was ptid to tho firm Of 8. L. M,tchill &
Son, of which Mr.. Samuel L. Mitchil is sup.
posed to be the senior partner.
TESTIMONY OF NEW YORK MERCHANTS.
Nor is 1t the fact, 80 far as your committee
upon diligent inquiry have been able to learn,
that such an arrangement as that made BY the
Secretary Of the Navy with Mr.. Morgan has the
sanction of the Chamber of Commerce, or of
any other mercantile community on the face of
the earth. And it would be strange indeed if it
were so No usage can prevail or be establish
ed among any intelligent anc upright community
that does not rest upon the solid basis of com.
mon sense, common honesty and sagacity. Your
committee, believing that no merchant in pos.
session OF his ordinary mental faculties could be
guilty Of the absurdity of employing an agent
to buy for him vessel, and making his compen.
sation entirely dependent upon the price he
should pay, and 10 increase in proportion to the
extravagance ofthe sum paid, applied to several
gentlemen whom they supposed to have know.
iedge on the subject, and inquired of them If
they ever knew of such an arrangement, and
they have, without exception, answered in the
negative. To other gentlemen they have applied
IN writing, and, amongst others, to the president
OF the Chamber of Commerce Of the city of New
York, asking the same question, and in no in.
stance have they received All. affirmative apswert
One of the Vice Presidents of the Chamber
Commerce, in answer to letter addressed TO
the President, (the President being absent from
the CITY, encloses the rates Of commissions re.
commended by the Chamber in cases where no
express agreement is made, and in that list Of
commissions two.and one.half per cent, is set
down as the commission for purchasing or SELL
ing vessels, but he adds: "In the sale of YES.
IA in ki,x,v ,rrhA nLora
employed, and in such cases brokerage is gen.
orally agreed upon by the parties selling" Two.
and.a-half per cent, instead of being, as stated
by the Secretary, the least possible expense or
charge, is the very highest ever sanctioned or
recommended by the Chamber of Commerce.
The ordinary compensation in New York for a
broker, or commission merchant, for making a
large purchase, is generally, if not always regu.
lated by contract, and does not exceed half the
sum paid by the Secretary of the Navy to Mr..
Morgan, and in such large purchases as those
made by him for the government should not ex.
ceed one-fourth of one per cent.
Your committee can well imagine that per.
son desirous OF selling vessel, and whose ne.
cessities are urgent, might deem it expedient to
contract with broker to make a sale of her,
and, to givo stimulus to his efforts 10 that dire
tion, might we'll pay him commission to be reg.
ulated by the amount for which he should sell
the vessel. In that case it would be for the in.
terest OF both principal and agent to procure the
highest possible price; but when purchaser
employs broker to buy vessel for him, it ID
for the interest Of the principal to procure the
vessel for the lowest price, and it would be the
height Of absurdlty, in such case, for him to
maze 1t for the intereat OF his own agent to be
unfaithful to him, and to compensate him most
iiberally for buying at the highest rate.
About the time this Immense sum was paid to
Mr. Morgan for these triAing services, or imme.
diateiy preceding it, several of the NEST promi.
nent, patriotic and public spirited citizens of
New York, of great experience and high reputa.
tion, had organised themselves into Union De.
fence Committee, ana for days and weeks, If not
for months, they devoted their time and talents
to supplying the wants and Necessities Of the
government without ever having received OF
asked, as your committee have been informed
and believe, single dollar for their services
and there can be no doubt that there are and
have been numbers Of patriotic merchants in
New York, eminently qualified for the duty, who
would have cheerfully performed this work for
the government without any charge whatever
EHGLIsH DECISIONS.
But your committee repudiate entirely the
idea thst commissions on sales, or purchases, or
disbursements, constitute proper mode of com.
pensating an officer or agent of the government
for services. The subject of compensation for
ministerial services, and the rules and princi-
Piles justly applicable thereto, came under the
consideration Of Sir William Sco:t, Afterwards
Lord Stowell, In the case of the Rendsberg, re.
ported in the sixth of Bobinson's Admiralty Re.
ports, page, page l43.
I The Marshal of his court had presenteda claim
for fees for services in the removal and sale Of
prize ship, On the value OF which he claimed com.
missions. In the course of the elaborate opin.
ion delivered by that great Judge, the following
principles were declared:
some conpetsnt authority assigning fair qssss.
tsn nssvst for the particular service, or must be
supported % claim for work and labor.
I'd. percentage, charge or commission on
value cannot be maintained, either for work and
labor, or on the ground Of responsibility; and
nothing can be more clear than that, of all possi,
Ms modes Of remuneration, percentage ;s.Le ksas
eonso~sns 70 general principles Of ecaafv.
ID. Il do most entirely repudiate all analoey
between mercantile profits aud Official ekaroes.
'pThe merchant charges his commission because
he is merchant &c.
After going on to state with CHARACTERISED
clearpess the very different grounds on which
commissions and official fees rest, he adds: y
do therefore, e. amino, expunge from the vocab
ulary offbc Court the very term commission, q,
far - itrelates to services performed by th,
marShal; or any o&cer Of this Court" Th,
whole reasoning Of the Court in this judemen
goes With great force against compenssting of3
ctal services with commissions, after the custom
Of merchants, in which tho committee entirel,
concur.
cEssuss Or sIcaIrAaY wxlLSs AND N.
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