New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-07-14
THE SALE OF IRON.CLADS.


The iron-clads Oneoto and Catawba have
been in troubled waters ever since they were
completed The public may remember that at
the close of the war we had several unfinished
gun-b0ats and other vessels on hand, and that
two Of thom, the Dunderberg and Onondaga,
were given up to their respective builders, on
the repaymcnt into the treasury OF all the
money that had been advanced on their con-
struction. Among the other vessels which the
Navy Department was impOrtuncd to dispose
of in a similar manner were tho OneotO and
Catawba, built by Alexander Swift a. Co. OF
Cincinnati Having received an assurance from
the Secretary of the Navy that they would be
permitted to take them, this firm made con
tract to sell the vessels to the Peruvian Gov
eminent for $2,O00,0Oo. The sum which they
would have been obliged to pay to the United
States was about 81 10000. Before the ar
rangement was completed, however, Mr. Welles
arrived at tho very sensible conclusion that an
act OF Congress had better be obtained author
ling him TO SELL and joint resolution was
accordingly introduced at his suggestion, pro
vdng that all iron-clads not required by the
| intorooto of tho service, except those of
certain specified classes, might be
sold at price to be appraised by a
board of officers. The resolution passed, with
the important amendment that proposals should
| be publicly invited for the purchase OF such
vessels and that the highest bid, not being
| less than the appraised value, should be ac-
| ceptcd. 1t may seem strange that Mr.. Welles
should have asked for an authorization of this
kind, instead of n simple act of Congress rati-
| flying q sale to Swift g. Co on the terms Of
fered-such an act as had been passed in the
| cases of the Dundcrberg and Onondaga; for
| the OneotO and Catawba, having undergone
| great many alterations while building, had cost
| great deal more than they were worth. and
| it was not at all likely that anybody else
| would bid as much for them as the con
| tractors proposed to give. The agent OF Swift
| g. Co., however, in this business Mr.. NJ. +.
Merritt, was an intimate personal friend Of
Mr.. Wellos and the Secretary seems to have
been anxious TINT he should get the vessels as
cheap as possible. The appraisers, in fact
fixed their value as low as S755,0O0 for the
two, whereas Swift g. Co. were ready to pay
S1,270,000 Six bids were put in (the
bidders, of course being kept in ignOr-
ance of the amount of the appralse
menG, ranging from SS0l0jO, offered by
Swift g. Co. through Mr.. Merritt, TO $1,59O,OOO
which was undoubtedly fictitious bid
made by parties who expected to be bought
off. Notification was made to these parties that
their proposals had beon accepted, and as no
reply was returned. and no deposit made
within the required time, the vessels
were then offered to the next high
est bidder, Mr.. VIM. ID. Russell of New
ark, n. j. This gentleman telegraphed
on the Goth of March, 1868, that he was pre-
pared to stand by his bid, and would make the
required deposit within the three days stipu-
lated in the conditions Of sale. In the meantime
Mr.. Merritt, on behalf of his principals, offered
to complete the purchase if his bid was
accepted by the eth, and with that view he
deposited with Mr.. Wees the sum of $4,000.
The Secretary declined this offer, as there were
higher bids which appeared to be genuine, and
on the 2Sth returned his checks. The same
day, ruling that Russell's time had expired. he
addressed n circular to all the remaining bid
ders Including Merritt), inviting them to come
forward and take the vessels at the prices they
had offered. None Of them replied Hereupon,
all the bids having fallen through, Swift g.
Co. proposed to buy che vessels at their APP
praised value, and their offer was Immediately
accepted. There was no inquiry whether
Russell was willing to carry out his agreement;
no effort TO induce Merritt to repeat his bid of
the day before. In fact, Assistant Secre-
tary Faxon testified that Merritt apparently
had somehow" got an inkling of what the
appraisement was and no and his principals
had resolved to limit themselves to that. Now
the proper course for Mr.. Wclles would have
been, in these circumstances, to declare all the
bids void and ask authority of Congress to
accept the original offer of Swift g. Co. to
take the vessels on repayment of what they
had received from the Government on account
of them. The joint resolution did not direct,
but only permitted him to sell, and clearly
gave no authority for any sale except at
public competition. Mr.. Welles, however, chose
to assume authority for making private
contract and the result of the whole business
was that Swift a. Co. having made three dis
tinct offers, the lowest of the three was ac-
copted' We dare say the Secretary has been