Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-07-28
AIKEN FROM TIE TREASURY

TAKEN FROM THE TREASURY
for the purpose of cOrlupting voters OF
| the country, and ii has bsen done will
| fully, in the face Of the law, and for the
purpose OF controlling elections. In this
connection your committee ask the at
tentiOn of the house to the following let.
ter, written by the chief OF the bureau Of
construction and repair:
| lPrlvate.I
BOsToN, MASS, October %, 1874.
MY DEAR CoMMoDoRE-I wish you would
! approve the requisttion for men 10 be en-
ployed as they may be needed until the first
/ Of November. Some fifty additional men
| have been allowed for the Chelsea district,
| and l suppose some more VIII be required
| desire the success OF Gooch and Frost. Yours
' Com. E. i. Nichols. Z. S. N, Comd'f.
| And here is q telegram from the same
! officers:
| WASHINGTON, D. c., February q, 1873.
! To Commodore ]. C. Howell, Commsndant
| Navy-Yard:
| employ forty men on her, in addition TO the
present force. Give a. IL. large share;
Chief OF Bureau OF Constr'n and Repairs.
Evidence of this class ia very volumi-
nous, and fully maintains all that the
mary. In speaking OF favoTitism in con-
tracts and to contractors, WhitthoTne
says: In the habitusl disregard Of the
various laws enacted by congress for the
security and protection OF the naval serv-
ice in relation to contracts, there has
grown up class of persons known as
FAVORED DEALERS
with the department. Not many per-
to-.
posed to be the peculiar wants of the
navy. 1t hes apparently baen managed.
s close corporation, and while 1t has
had large sums OF money to disburse,
but few persons seem TO have been re,
cipients Of its favor. For years past it
has been somewhat notorious that con.
tractors have corruptly fsttened upon
these favors. During the recent war
congress found it necessary to make its
contractors for their frauds subject to
trial by cOurt-m artial, yet so vigorous a
law seemed to be without effect. 1t fur
Their appears that toward the close of the
war, on an investigation into its affairs
by committee of the senate under Mr..
Hale, of New Hampshire, as its chair
man, corruption still existed, and by his
report it was made to seem that parties
in the navy department, or connected
with the naval service at the different
navy-yards, were implicated ..-r
IN FRAUDULENT PRACTICES.
Such are shown by proof bsfore your
committee to exist under the present ad.
ministratiOn of the depsrtm ant, name
ly: in the manipulation and alteration
Of bids, and in the interest of contract
ors by clerks in the department, Pages
of testimony are given in proof Of this.
Upon page 81 the committee summarizes
the following items of fraud and abuses
in the administration of the navy de-
partment: In disregard of the law in
failing to advertise for supplies, mate
rails, etc., required by the department;
in the failure to require proper bonds
and suretie5 from those who make con-
tracts and agreements with the depart
ment, none being required in majority
of cases; agreements to deliver mate
rials, supplies, etc, under what are
known as bureau orders; in the failure
to prosecute and enforce the law against
defraudipg contractors,
NO SUCH INSTANCE BEING KNOWN;
in making payments in advance OF
work and complete delivery, a bare
faced instance of which exists in the
case OF the contractor for the Hero and
PisiOtOque at Washington ravy-yard,
the contractor in this case dropping the
Job when it ceased to be profitable to
him, leaving the government without
any adequate protection against his de
fault cave pretendedressrvstio which
will not pay for the WORK remaining to
be lone; Id permitting contractors to be
relieved from the fulillmer+I Ieir
contract when it is appsrenL that their
fail ure 10 do SO originates from
A FRAUDULENT PURPOSE.
That is to say, under the prevailing sys-
tenn of inviting bids at regular annual
lettings different classes are made, some
Of which include in t., e schedule num-
Der and variety OF articles. A knowing
or favored contractor will take a certain
Of articles which he knows |
will be fully and possibly in excess de- |
manded, and upon these he Will fix
large profits. Ga the remaining srti-
cles he will fix prices far below cost,
knowing that they viii not be demand |
ed, or that he will be relieved fiom per-
forming hi6 contract. An honest bid |
der, not so well posted, averages his bid |
with reasonable profit on each article. |
At the department, both bids being |
opened, both are selected and averaged, |
and it is discovered that in the aggre-
gate, that Of
-. THE KNOWING" BIDDER
is the lowest, and when the day of per-
Torrance comes he proves to be a
fortunate bidder, in this, that the !
department excuses him in his
failure to deliver certain articles,
while he takes care that those de-
liverec shall be articles on which
1e MAKES q big profit. A very great |
abuse, almost, if not altogether, crimi-
nal in its character, exists in the fact
hat contractors rule and govern to a
very large extent the assignment of Of
i5ars to different posts of duty, and the
of clerks and employees to
places where they may be useful TO
hem. This is evident from the fact that
...-l THE CATTELLs
re found recommending Bradford, and
hat Cattell recommended the appoint.
nent Of Hall, principal clerk to the pay
master Of Philadelphia Matthews re-
commended Gutter fur paymaster at
Jew York, and also upon his Mat
heWs,s) recommendation, Blood, one Of
he principal clerks to that officer is in
orsed by the paymaster and appointed |
y the secretary of the navy. At the |
Instance Of Contractor Luckey Lenthsn,
hief OF the bureau of construction, is |
emoved. The inspector Of timber at
lew York is
'IsTAsTEFUL TO CONTRACTOR SWIFT,
nd is removed. The occupancy Of the
oEt OF purchasing quartermaster at San
francisco is made dependent on the re.
ention Of Pinney 81 clerk. Constructor
.asby, known for his Watchfulness and
ltegrity, is suspiciously ordered away
ON Norfolk, on tour of inspection, 6
hen Contractor Swift has timber to '
oliver there, and is again ordered away I
ON Boston when some contractor il {
bout to deliver timber at that point. +
lonsId M'Kay, contractor to build one
the eight slOops-Of. war, is, by the 4
rms Of his contract, to obtain timber /
I'D lumber from the Lanyard st Bos- q
N. Directly afteTward his brother is I
1pointed to position in the nsvy-yard, n
le OF his duties being to measure and r
9liver timber and lumber to his brother i,
'ntrsctor. Again, the designation of n
Briscoe for duty under the n
at Philadelphia is TO be noted 4
connection with the fact that he is q
ry kindly treated TO r.
PRESENTS OF LIQUOR 81
: Contractor Nat M'Ksy. On using Il
vernment material for private pur. n
ses, the report says: The chief offender
this regard ia the geoTetAFV nf fha 70