New-York tribune., 1871-07-11
y TELEGRAPH TO THE TRIBUNE

lBY TELEGRAPH TO THB TRIBUNE
wAsHEGTos, Monday. July 10, 1871.
Tie reporis of the past few days that Gen. Peasonon
has resigned, and that his resignation has been accepted,
are autboriativey denied. II IL at the same time
serted that Secretary Boutwell, before leaving for home
somo instructions 10 Deputy Commissioner Doug
lass, which indicated that he expected that gentleman
to be Acting Commissioner before his There 10
much speculation TO the OF Gen. Peasonton in
case he should not be sustained by the President and
the Attorney General, some asserting that he will i'm
mediaey resign, and Others that he will retain his posi-
tion and square his conduct the secretarys orders
The Internal Revenue investigation at Baltimore has
failed 1t would appear through an uuwingness the
part Of Supervisor Fulton cooperate with Supervisor
Presbrey 1t has long been suspected that immense
whisky frauds perpetrated In city 1867 and
1863 and Supervisor Fulton has often called attention 10
the fact but he was he unable 10 obtain any legal
evidence sufficient TO convict the guilty ones. Those
having this evidence at length TO Secretary Bout
WELL and offered 10 give it, provided he would send
other to make the investigation 1t supposed that
the refusal TO give the information 10 Mr. Fulton was Oh
political grounds Secretary Boutwell, therefore detailed
Dr. Presbrey although that gentleman preferred not TO
undertake the work. He went TO Baltimore and
proposed 10 Mr. Fulton that they cooperate in the nves
tigaton, and share the honors Of success II
attended il. Mr. Fulton, however apparently feeling
hurt that another should he sent into his district
declined 10 cooperate summon witnesses for Dr.
Presbrey. ar Fulton and Dr. Presbrey then both
10 Washington, the former 10 find out what charges If
any, had been made against him. and the latter to get
the necessary power to proceed friend OF Mr. Fulton
called upon Mr. Boutwell, in his behalf and in
reply TO his question, that officer said that he had never
heard a word against Mr Fulton. Mr, Boutwell, then
asked Commissioner PleasontOn to direct Mr.. Fulton 10
summon witnesses for Dr. Presbrey, and has already
been reported he knowing nothing Of the investigation
declined TO do this. The investigation then went on
hampered however, by these misunderstanding, and
the testimony was presented 10 the Grand Jury, but
that body failed to find indictment by vote OF II 10
G. The investigation has shown that gigantic frauds
peTpeTated in the manufacture and sale Of whisky
by which the Government lost hundreds Of thousands Of
dollars II is asserted in this city, to-day by those
who know something of the facts brought out that the
Government, by good mana cement, might at once re-
cover $3.50 600 without a suit.
The Civil Service Commission, having against
constitutional snag, hes concluded to adjourn until Oc
Ober next hoping meanwhile that the President or the
Attorney will extract il for them They have
for time been discussing resolution prepared by
Mr. Curtis, at the request of the Commissioners provd
ing for system of competitive examinations TO be
passed by all persons desiring to enter branch of
the civil service, and thus to abolish official patronage
1t proposed TO have examining boards sit in Washing
ton, New-York Boston, Cincinnati ST. Louis, &c, whose
duty il shall lie examine all applicants for Office,
| and give to each who shall pass sat
isfactorily certificate that he is qualified
certian position and that al vacancies shall then
be filed from the ranks of these in their order After
clerk officer enters his duties IL s proposed 10 let
his first six months OF service be probationary in the
English service and that he permanent appointment be
postponed until he has proved himself competent for his
| place But one member Of the Commission raised the
point that such arrangement would be unconsttu-
would deprive the heads OF Departments Of
the right given them by law TO appoint certain ocers
under them. Commission submitted this question
TO some of the most prominent lawyers or the
country, and the weight OF legal opinion IL that
the law Of last Winter did not contemplate interfer
ing In this manner with the powers OF heads
Of Departments. The question then whether,
under this law the President with the assistance Of
examiners has not under the new law, the power 10
designate class from which the appointments shall be
made, and 1t is the opinion of the majority Of
the Commission that he has Not desiring however TO
labor in vain, the Commission passed resolution, to-
day. that they would send letter to the President ask
ing him refer the questions when have arisen TO the
Attorney General that he may prepare Interpretation
the law, and have il ready for the Commission in
October, 10 which time the Commission will this week
adjourn.
The PostOficc Department has been subjected TO con
siderable trouble and embarrassment in consequence OF
the insecurity the bonds Of Southern mail contractors
Many of the contracts for Southern mail service if not
majority OF Them have proven TO be failures account
of the irresponsible character Of the bidders and the
wOrthessness Of the bonds In many cases where con
tracts were given the lowest bidders, 1t has been
found that the successful persons were unable to per-
form the service without loss and therefore abandoned
IT, making it necessary for the Department to supply the
deficiency by hiring persons at high rates, resulting in
extravagant outlay and frequently to the benefit OF the
original contractors who become Interested IN one way
or another in the service POetmasterGenera Cres
well Will probably call the attention OF congress 10 ths
matter in his next annual report and endeavor 10 have
the law amended 10 empower him TO reject Dds
which he has reason to believe are irresponsible
hao baau at 10 NJ,
that where it is found in the report of the Adutan-
General of Kentucky that soldiers of the roll mustered
into the service of the State died were discharged
prior 10 muster into the United States service such
showing should be received evidence OF service Inc
claims in cases of deceased should be settled when
satisfactory testimony furnished that the soldier ded
ot disease OF contracted in line Of duty ater
enlistment ,
telegram from the Secretary Of the Interior received
here ON Saturday announced his intention to start Tor
Washington to-day dispatch sent In reply that
the business Of the Interior Department was ID such
condition as not to require his personal attention just
now and as he not been heard from since 1t Is moi
known whether he will be here tomorrow or not
Gen Baker, Commissioner, after considering the ques:
ton of pensons 70 soldiers in the Of 1872, decides
that in view of express requirements Of the act OF
Feb a. 1871 granting pensions to the SURVIVORS OF ths
war proof Of loyalty WILL in all cases, be carefnly eA
amned and the law strictly construed When witnesses
testify to the loyalty of claimant, he says their o"
LOYALTY must shown by the certificate OF an oeer oi
the United States Court, United States Commissioner
or an officer the Internal Revenue by setting forth
that after careful investigation, he is convinced that
the witnesses al no time during the late rebellion against
the authority OF the United States adhered to the cause
az the enemies OF the Government giving them ald ana
comfort or exercised the functions OF any once
whatever, under any authority, or pretenued
authority in hostility the United States This applies
N Inann IN