The national Republican., 1862-01-20
THE sEcRIrAAY OF THE NAVY.

THE sEcRITARY OF THE NAVY.
From the letter addressed BY Mr.. wslles Il
the Senate, on the 18th instant, We suhjoln al
extract explanatory Of transaction specially
complained Of.
Among the large number Of purchases thai
were made under the mercantile usage, which
the report alluded 10 odenomlpates remarka-
BILE arrangement that Of the Stars and Stripes
Is selected as furnishing the most pointed lee
timony that the policy Of the Department waa
wrong, and the agent an improper person to be
selected for that duty. As presented by the
Committee, and In point Of fact, Il Is probably
the strongest, and perhaps only case that can
be adduced In their behalf. The Com nittee
say they desire 10 present:
"A simple instance Of deception practiced
upon Mr.. Morgan, In the sale to him OF new
vessel, the Star. and Stripes, which had been
ahoat less than two months. This vessel cost
its owners but SIS, 600 10 build her had earned,
under q charter to tho United States, In two
months, $4,000 net, and was then sold 10 Mr..
Morgan for $55, 700, making clear profit 10
her owners Of $34, 400. This was done by
making Mr.. Morgan believe that II cost 100000
10 build her."
The Stars and Stripes was new and popu-
| lar vessel, commended 10 the Department by
naval officers Us one particularly we'll adapted
| to pei form effective service In the blockade.
Mr. Morgan was, therefore, directed 10 pur.
| chase her, If he could, on reasonable terms
To do this was attended with some difficulty,
| for the vessel was, at the time, under charter
| TO the War Department for $4,000 per month
Mr. Morgan succeeded, however, in purchas
ing her for SIS, 900. The committee state that
shs had actually cost the owners but s35, 800,
and there Is no doubt that, under an ,xtraordi-
nary combination Of circumstances, when bust
ness was stagnant, material and labor cheap,
with an engine constructed for another vessel
offered them at greatly reduced price, the
owners Of the vessel built her at remarkably
low rate. But this was 10 their advantage,
and know not that II should be made point
Of assault Oh the Navy Department that the
owners had, under favorable circumstances,
built the vessel economically and at reduced
price. The true question Is, what was she
worth when purchased! This can be best as.
certained, perhaps, by comparing her with the
vessel. purchased At about the same time by .
naval officer who Is endOrsed by the committee
and which were procured under the system
WI ich they commend AZ greatly preferable 10
that which the Department. adopted.
The Stars aud Stripes was q new screw pro.
peller Of 4O7 tons burden, bought under mer
camille usage, which the committee condemn In
general, and this transaction in particular, for
$55,OOO.
The Penguin, steam propeller, three years
old, with machinery considerably worn, bur
then 3s9 tons, WAS bought by Commodore
Breesc, naval officer Of " professional skli,"l
presumed 10 know what service il required |
Of such vessels the Office and the system both |
commended by the Investigating Committee
~ preferable 70 that which the Department |
had adopted. For the Penguin, which was Of |
less tonnage than the Stars and Stripes, and
two years older, Commodore Breess paid
$75,OOO.
The Albatross, another steam screw propel.
Ter OF 37S tons, three years old, Of the same
class ALTO a. the Stars and Stripes, except her
age, which is greater, and her tonnage, which
is less, was bought by the same naval officer,
under The same system, for $4,000.
These are tue facts IN relation " these pur-
chases, under the two rystelns, by a merchant
under mercantile usage, aud by u naval officer
under the system commended by the committee.
The Stars and Stripes they select as the most
objectionable purchase under the policy oi the
Department and the action Of lis agents; the
Penguin and AlbatrOss have introduced as in
sze aud character approaching nearest 10 that
vessel, and they were purchased by naval
officer under the opposite system.
la the statement ccnsuriDg the Department
for its purchase Of the Stars aud Stripes, objec
tion is made on the ground that the owner Of
that vessel realized large Prott-one item Of
which was SIS, 900 ne" uudsr charter. Al
though this is made cause oi censure against I
the Navy Department, 1t must have been known
that the charter was not with the navy, but with
The War Department; aud in all probability
That profitable charter compelled the Navy De- )
partment to pay higher price for the propel-
Ter. As compared with tho purchases made by I
he naval officer, The price paid Tor the Stars
md Stripes cannot be considered extravagaut.
doubt It she could be duplicated ut this Tine ,
or ihe money paid for her."